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The Monthly BUSINESS REVIEW Covering business and industrial conditions in the Fourth Federal Reserve District FEDERAL RESERVE BANK of CLEVELAND (COMPILED SEPTEMBER 20, 1920) VOL. 2 P CLEVELAND. OHIO, OCTOBER I, 1920 OW ERFUL natural forces are constantly at work to maintain the equilibrium of all things. Irrespective o f man-made laws, these forces are forever at their task of preserving the natural balance. The laws of man have been swept into the discard, but the laws of compensation are inflexible and cannot be transgressed without payment o f the penalty that is exacted for every violation. In keeping with these laws, it may be expected that an advance will be followed by a decline, and a period of activity will precede a period of dullness. Businesss activity is entirely at the mercy o f demand, and demand is created by the people. Hence, the degree of business activity is dependent upon the demands of the people. Should production exceed the demand, the ultimate result must be a decrease in output. The greater the over-production has been, the greater will be the period of inactivity until the demand shall absorb the over-supply. This same law applies with equal force to prices. It would therefore seem that those industries which have profited the most in the recent advance should naturally suffer most in the inevitable decline. W hat better example could be offered than that o f our sugar speculators, who have suffered and are suffer ing severe losses after a period o f profit-taking that overshadows any Shylockian proclivity? It is perhaps a fortunate thing for business that bankers, as a class, are conservative men. They act as a stabilizing force— as governors on the engine of business, checking over-enthusiastic tendencies. Whenever the wheels o f business undertake to revolve at too fast a pace, then the governor is brought into play and the speed reduced to a safe point. B y such means are catastrophes averted, and many o f those who criticised the banks for their attitude during the present credit stringency now recognize the necessity for it and heartily approve the act. The course of events would seem to furnish striking proof of the truth of the adage that “ A stitch in time saves nine,” in the action o f the bankers during the business readjustment through which we are new passing with so little shock. The basic soundness of our position is emphasized by the fact that notwith standing our susceptibility to shock by reason o f our highly inflated condition we have been able to pro gress so far with so little damage to the business structure. That the shoe has pinched in places no one ques tions. The process o f deflation is always painful. No. 9 The journey up is always more pleasant than the trip down. However, the warning has been ample, and not much sympathy will be wasted upon those who find themselves in difficult position as a result o f their own folly or their own inordinate greed. They have violated the natural la w ; they must now pay the penalty. Commercial failures are increasing but not alarm ingly. There are many phases to consider in this connection. First, is the fact that there are probably more people in business in this country today than ever before. Consequently, a larger number of fail ures does not necessarily imply a greater percentage of the number engaged in trade. The volume of lia bilities, when compared with previous years, should be considered in the light of a great difference in prices. Furthermore, this is the first time in a number o f years that business is operating on a basis of falling prices. In recent years a buyer could purchase almost blindly, with the almost certain assurance that he would later be able to sell at a higher price. Now that the shoe is on the other foot, and merchandising skill is called for, it resolves itself into a contest of the ‘ ‘ survival o f the fittest. ’ ’ The elimination of these weak spots is a good thing for business. Failures shake confidence, and there has perhaps never been a time when confidence was more necessary for the good of the general situation. The sooner the unfit are weeded out, the better for business. There is less apprehension than there was thirty days ago. The voice of the calamity howler is heard neither so loudly nor so often. Crops show further improvement, with a consequent potential increase in the purchasing power of the people. The tide of immigration is again rising, with its promise of a plentiful labor supply for the future. The business profiteer is being forced out by an outraged public opinion, and the labor profiteer is finding it increas ingly difficult to maintain his position of “ more pay and less w ork .” Except in a few isolated cases there is no longer an acute scarcity of goods or labor. Both are rapidly reentering the competitive stage. Buyer and seller are meeting on a common level. The natural law is again asserting itself, and the fact is slowly being driven home to those who have been unable to see the signs or follow the trend of events. Once we recognize that we have been doing busi ness on an artificial plane, one of our greatest prob THE 2 MONTHLY BUSINESS lems will be solved. By no stretch o f the imagination can the volume of business we have done in recent years be regarded as normal. It is not necessary, in order for us to be prosperous, that such a volume be maintained. There is a splendid field for good busi ness in supplying the needs of our own people, and an opportunity never before offered by foreign mar kets to absorb a large surplus o f American products if we will take prompt advantage o f the opportunity. W e are regaining our mental poise and are facini: • REVIEW the facts squarely and courageously. We are begin ning to realize that there has been no development during the deflationary period but that will be good for business in the long run. W e have been frightened by our own shadows. Let us build for the future on the solid rock of normal business rather than on the treacherous sands of war-time prosperity— make our plans on the common-sense basis of normal activity, and share in the prosperity that seems certain to come. Credit Conditions Show Slight Improvement; Liquidation of Frozen Credits Under Way; Crop Movement Facilitated by Use of Acceptances There has been some improvement in banking con ditions in the Fourth District during the past thirty days. The demand for funds has slackened some what, more particularly in the smaller centers. There are indications that business men are gradu ally working into position to finance themselves by the reduction of inventories and a tightening up of credit lines. A somewhat tardy recognition that there must be some readjustment sooner or later has brought about some liquidation of frozen credits. Deposits show no decided trend, except that savings deposits are being somewhat freely drawn for the purpose of buying real estate. There is nothing to indicate a speculative tendency in this regard. Commercial failures for the Fourth District during the month of August number 70, as against 48 in the same month last year. Liabilities amount to $1,347,045 compared with $321,764 in August, 1919. For the first time since the organization of the open discount market, the demand for acceptances in this district greatly exceeded the available eligible bills created by our banks. Additional bills to meet the requirements were purchased in the New York market, where the demand was light compared to the previous month, and which left the New York brokers well supplied with prime paper to meet our shortage. The large demand came from the banks through out the industrial sections of the district. The de mand of the agricultural localities in general remain ed normal. There was also an increased call for paper from corporations that are at present feeling the return of industry to normal conditions, and leaving them with idle funds with which to purchase short time investments. It was believed during the past month that abnormal demands for credit to finance the crops would be prevalent. The banks prepared for this by arranging large acceptance credits; however, when the movement began it was found that there were sufficient funds available without the accept ance credits, and that their own supply o f funds met the demands. This was quite unexpected and unusual, and is explained by the fact that banks throughout the district quickly responded to the call to curtail all except essential loans, and decrease as much as possible their outstanding credit. The splendid cooperation and spirit of the banks has helped the credit situation of the district, without working hardship on essential industry. The popularity of the acceptance has now grow n to such an extent that few, if any, country banks are not familiar with this form of investment. It is a most encouraging situation. It has shown conclu sively that the long needed confidence in the accept ance has arrived. There was form erly much hesi tancy on the part of country banks in purchasing bankers acceptances with their temporarily idle funds, because of their unfamiliarity and skepticism in regard to the security and liquidity. This has now vanished and nearly all banks are now turning to acceptances as an investment for their secondary reserve. Improved Shipping Conditions Reflected by Increased Output of Iron and Steel; Unfilled Orders Show Decline; Yard Stocks Somewhat Reduced Marked improvement in transportation and ship ping conditions has been the outstanding feature of the iron and steel situation. In keeping with this and because o f this development, production has been rising steadily during the past month. The mills and furnaces, speaking generally, not only have been able to move their increased output to the con sumers, but they have made material inroads into the large accumulations of product which had been piled during the period of stringent car supply. While the situation is by no means normal and there are some unfavorable spots where operations are handicapped, the general conditions are o f the best that have been enjoyed for several months. Indica tive of this is the fact that production of iron and steel in August proved to be the largest of any month in the present year with the exception o f March. In pig iron, 3,146,232 tons were produced m August, according to the compilation of The Iron ■Trade Review This compares with 3,043,918 tons “ ? tons in Jm ie; 2,991,825 tons in M ay; 2,752,6/0 tons m April, and 3,375,768 tons, the high point, m March. Furnaces in blast on the last day oi August number 306, compared with 291 in the corresponding date in July. Steel ingot produc tion m August was at the rate of 41,800,000 tons annually for the whole country, representing an increase of about 7 per cent over July. This estimate THE MONTHLY BUSINESS is based upon the returns to the American Iron and Steel Institute from companies representing 85 per cent of the countries total capacity. The output for August of these companies totaled 3,000,432 com pared with 2,802,818 tons in July and 2,980,690 tons in June. The general reduction o f accumlated stocks o f iron and steel is expressed through the position o f the Carnegie Steel Co., which at the present time has brought down its yard piles o f raw and semi finished material to about 200,000 tons and o f finished material to about 150,000 tons. This represents a reduction o f approximately 30 per cent from the high point. Present steel stocks in the Mahoning valley are estimated at 100,000 tons. Pig iron stocks in the south have been cut from about 130,000 to 104,000 tons. Co-incident with the increase in shipments a material falling off o f new business has been noted in all quarters o f the iron and steel market. Consumers are finding themselves in an easier position on their early supplies o f material, and they are exhibiting signs of greater caution in obligating themselves for distant periods. This is plainly shown by the rela tively small amount o f future buying that now is going forward. It is apparent that this spirit o f greater prudence has been influenced in large part b y the psychological effect incident to the signs of readjustment in other lines o f business. W ith the exception of the automobile industry, from which REVIEW 3 cancellations and suspensions o f iron and steel have been received quite freely, the absorptive power of consumption appears to have been little altered. Furthermore, the consumption of iron and steel by the automobile industry constitutes a relatively small percentage. Inasmuch as the mills and furnaces have large order-books on hand, these producers have viewed the decline o f new buying without especial concern, and they are welcoming the opportunity to convert their unfilled obligations. Railroad buying o f magnitude, the prospect for which has been before the iron and steel industry fo r some weeks, still is developing slowly. Indications are, however, that purchases of rails for 1921 delivery will be the heavi est in several years. The roads have brought before the mills a large tonnage o f prospective business of this character and the placing of this apparently awaits upon the naming o f prices b y the latter for next year. A considerable tonnage in fact already has been entered subject to prices to be fixed by January 1. Iron and steel prices are showing no general weak ness. Some lines are softer and top premiums are coming off, but in the main the average quotations o f most products are being maintained. The pig iron market has held staple in price, though buying for next year, which first began several weeks ago, has tapered off. Ore Movement Improving; Lake Shipments of Coal for August Reach Peak for the Season to Date; Shippers Accepting Grain Contracts on 6c. Basis Ore has been going forw ard to the interior fu r naces at a much faster clip during the past few weeks, as there has been quite an improvement in the car supply at the Lake Erie receiving ports. Boats are still taking some delay, as the lake front furnace docks are not taking as much ore as they did early in the season, but the indication is that the ore carriers will get better treatment at this end o f the route the rest o f the season. Stocks are heavy at the lake-front furnace docks, and at the rate that the ore is being sent forw ard there is less danger o f a shortage at the interior plants than there was a month ago when the railroads were pretty lame. Ore shipments for August were 9,270,763 tons, which was a gain over August, 1919, but a loss com pared with August, 1918, when shipments were 9,725,331 tons. Shipments up to September were 35,349,874 tons which was an increase o f 5,751,826 tons over the same time last season when the fleet loaded 29,598,048 tons. The movement up to Sep tember 1, 1918, was 39,334,264 tons. The total for the latter season will not be reached in 1920 as was figured on at the start, but the requirements have been cut since then, as many of the plants have been idle part o f the time, due to the shortage of coal and coke. A record for the season was made in coal ship ments in August when the fleet loaded 4,408,788 tons o f cargo. That was a good gain over August last season, but a loss compared with August, 1918. There has been a let up in the movement since Labor Day and coal is not coming forw ard at the rate of 4,000 cars a day, which it is figured is necessary to meet the requirements o f the Northwest. Shipments up to September 1 were 10,662,526 tons compared with 15,320,556 tons for the same time last season and 16,111,705 tons in 1918. Coal is moving better than it was a year ago and the loss on October 1 will be smaller compared with 1919. The Lake Superior grain shippers are taking some tonnage at 6 cents to Buffalo for October loading and that trade will take care o f a fair amount o f capacity the rest o f the season. Outlook More Hopeful in Manufacturing Field; Trend of Prices is Downward; Inventories Heavy In spite o f a feeling o f pessimism, which prevails to a great extent among business men, nearly all reports this month convey a more hopeful tone. Manufacturers are believing more and more that with the exercise o f sound and sober judgm ent the readjustment period may be successfully passed through without a serious breakdown. There is no longer any question that at least in most lines the situation has changed from a sellers’ to a buyers’ market. W hile the price o f all manu THE 4 MONTHLY BUSINESS REVIEW factured goods has by no means been lowered— in fact increases are noted in some items— the trend is downward and there is a noticeable tendency on the part of buyers to restrict purchases to meet only current needs until further price concessions are made. Tool manufacturers report a decided slump in busi ness. New orders, when compared with the heavy business of last spring, show a falling off. Makers are running at capacity for the purpose of replenish ing the stocks of finished goods which were largely reduced by heavy business of the past year. Inventories are, for the most part, very large. This may be traced directly or indirectly to the bad rail road situation during the past two years, compelling manufacturers to carry heavy stocks to insure full operation. The pottery business is in a very flourishing con dition with orders on hand to run at capacity for from eight months to a year. Prices have advanced. There has been an increase in both freight rates and raw materials, together with a wage increase of five to ten per cent recently granted to pottery workers. There has been no appreciable increase in the demand for passenger automobiles. There have been reductions of forces at some of the factories, but on the other hand other manufacturers are following their original programs and storing such cars as can not be shipped. Motor truck makers are slightly more optimistic concerning the future. Orders are coming in better than during the month of August. Stocks are being reduced by the dealers who cannot finance them, and the manufacturer has likewise reduced his stock and cancelled his orders with manufacturers o f parts. Manufacturers of automobile bodies report that business has slowed up in harmony with the demand for passenger machines. W hile the restriction of credit has caused some concerns to wabble somewhat, the larger companies have found some means to meet the changed conditions and are resuming approxi mately normal business. The industrial tractor and truck line has slowed up materially. There is a spirit o f optimism in the trade and good business is in sight, but the actual closing o f business on trucks and tractors is slow. The situation appears to be worse than it was thirty days ago. The demand for farm implements and machinery is good, except on such items as are sold on a net cash basis. Dealers report that they are unable to secure accommodations from banks in the necessary amounts, while the farmers are slow in meeting their obligations. Collections continue slow and more caution is being used in granting credit than for several years. The demand for rubber tires has practically ceas ed. Tire manufacturing in the Fourth District is practically at a stand-still. Other lines of rubber goods are in good demand. Tin can manufacturers report less difficulty in securing raw material, which reflects a better trans portation condition. Stocks of tin cans are fairly good and the volume of business holds up well. Manufacturers of hardware are highly optimistic and the idea prevails in the trade that an advance rather than a decline in prices will take place. Orders have been and are being held up, and very few can cellations have been received. Indications point to general satisfaction so far as prices are concerned, but the users apparently do not wish to take any material at this time. Manufacturers of cranes and loading machinery report sales improving and collections good. There has been a noticeable easing up in the paper industry during the past month. W hile for the pas1 year most plants have been working on back orders they are now booking business, even to the point oi offering inducements here and there for prompl shipment. Prices are not being quoted for deferred shipments, as manufacturers are afraid of a coal shortage and do not wish to be booked up witt orders without a more definite knowledge of prob able production costs. Prospects are for good Fall business in the shoe trade possibly not quite up to that of last year, but fully up to normal. Labor in this line appears more plentiful than for many years. Retail stocks are large, but the buying for Fall has been conservative and it is believed stocks will be cleaned up by Spring. The hide market has suffered a decided slump and this should be reflected in the price quotations of shoes next Spring. The demand for lumber has failed to show any symptoms of an increase in trade. The volume of business has been rather light. W ith hardwoods, which enter largely into the manufacturing line, the situation continues featureless with the market rather dull and apathetic. Manufacturers of electric motors report conditions unchanged. Sales are slumping below those of pre vious months. Certain classes of steel and copper products, such as pipe and drawn copper wire, are difficult to obtain, the reason for which does not appear clear. A lessening in the volume of business during the past few months is reported in the moulding machine manufacturing line. It is very largely due to the slowing up of the automobile industry, which has also brought about some cancellations. Collections have not been quite as good as during the earlier part of the year and are yet by no means bad. Paint manufacturers are still behind in delivery and probably will be until the season for painting is over. Some complaint is made of difficulty in obtaining containers, especially those made of steel for the finished product. There has been a greal scarcity of pig lead and the price has advanced fron 20 to 25 per cent in the past 30 days. This has in duced importation from England, Australia, Sp&ii and Mexico. There are no stocks o f finished material production being taken as fast as it is made. THE MONTHLY BUSINESS BEVIEW 5 Hesitation Marks Textile Industry; Women*s Garment Manufacturers Report Satisfactory Trade Conditions in the woolen textile line may be described as hesitating. There are no inquiries for goods. Purchasers are evidently holding for even lower prices than those which the mills are offering. On the other hand, manufacturers indicate a disposi tion to close down rather than to reduce wages— the only method, it is said, by which further reductions may be made. "Woolen textiles are all special designs and are only made on order; therefore, the industry has remained idle since early in July as a result of cancellations of old and lack of new orders. The few that have been in operation have done so only to maintain their organizations. Collections in this line are dragging. Conditions in the wom en’s garment trade reflect nothing unusual. Raw material stocks are large, but stocks of finished goods are not. Deliveries have been fairly satisfactory, and no complaints are made as to the labor situation. Slow-paying accounts are slower than ever, but there have been few failures. However, a number of stores have reorganized or made changes in ownership. Crop Prospects Better; Some Damage in Kentucky Tobacco Fields; Fruit Yield Best in Years The crop report for September 1 shows still fur ther improvement during the past thirty days in all principal crops. During the early part o f the month o f September favorable weather conditions prevailed in all sections of the District with the exception of the Kentucky Burley tobacco field, where excessive rainfalls have done more or less damage to the crop. Cutting has been somewhat delayed, and some dam age has been done by rust and what is commonly supposed to be a new disease known as “ wild-fire” — taking its name from the rapidity with which it spreads. The older tobacco growers are inclined to the view that this so-called new disease is nothing more or less than rust in perhaps a more virulent form than is ordinarily seen. Freedom from frost during the latter part of September has meant millions o f dollars to farmers in this District. Corn was somewhat late, but favor able weather during the month of September has permitted the great bulk of the crop to ripen, so that the percentage of unmarketable corn will be very small. Cutting has begun in the southern part of the District. The sugar-beet crop is very large, as is also the fruit crop. It is estimated that the total agricultural crop of peaches will be about five times that of last year and the apple crop approximately four times as large. The crop of grapes will be above the average. It is estimated that the buckwheat crop will be slightly above that of last year. An increase is also shown in the amount of sorghum. Elsewhere in the Review will be found our usual tabulation of crop conditions in the State of Ohio as o f September 1. Building Outlook Shows Improvement; Labor More Plentiful and Efficient; Material Moves More Freely Several favorable factors have developed in the outlook for building operations during the fall and early winter. Among these are a more plentiful supply of labor, due to a slackening of work in other Districts, increasing immigration, bringing back skilled craftsmen who went to Europe early in the year, a better standard of efficiency and production on the part of skilled labor, the ability of material dealers to fill orders for material more promptly, and opportunity for a closer supervision by architects and building contractors. The housing situation except in spots remain criti cal and must have immediate attention if the many citizens who removed to the suburbs and country for the summer months are to be supplied with places to live for the winter. Little can be said of decreased costs, owing to high labor rates and the need of maintaining prices for materials to meet the cost of manufacture and trans portation. However, the impression appears to be growing that the present is a much better time to build than six months ago or even three months ago. Transportation Shows Further Improvement; Congestion Being Relieved; Labor Situation Much Better Reports from nearly all centers agree that the transportation situation has shown further improve ment during the past month. There is still some com plaint heard with reference to shipments to and from New York City, but elsewhere congestion has been relieved and conditions are rapidly approaching normal. The return to work of such of the outlaw switchmen as are able to get back their old jobs will doubtless play an important part in relieving what congestion is still to be found. The railroads are not, at this time, in the market for any large quantity o f railroad equipment, evi dently due to a determination on the part of officials to work present equipment to the limit. A noticeable gain has been made in the per-ton mileage, but rail road managers insist that further improvement can be shown in this respect. THE 6 MONTHLY BUSINESS BEVIEW Department Store Sales Percentage increase (or decrease) of net sales during August, 1920, over net sales during same month last y e a r ................................................................................................. Percentage increase (or decrease) o f net sales from July 1, 1920, to August 31, 1920, over net sales during the same period last year....................................................... Percentage increase (or decrease) of stocks at close of August, 1920, over stocks at close o f same month last year..................................................................................... Percentage increase (or decrease) of stocks at close o f August, 1920, over stocks at close of July, 1920...................... Percentage of average stocks at close of each month this season (com m encing with July 1, 1920) to average monthly net sales during the same period...................... Percentage of outstanding orders (cost) at close of August, 1920, to total purchases (cost) during the calendar y e a r ......................................................................................... Oleve. Pgh. Other Cities District 22.9 26.0 29.7 25.7 34.2 22.7 29.4 27.3 42.7 36.3 49.4 40.4 7.4 8.3 16.6 9.4 407.2 412.2 397.1 412.7 20.2 11.1 23.9 17.0 Wholesale Trade Inc. (or Dec.) in Inc. (or Dec.) in Sales during May, Sales during June, 1920, over same 1920, over same month last year month last year. Inc. (or Dec.) in Sales during Aug. 1920, over same month last year. Percent Percent Percent Percent 11.5 47.8 37.2 53.4 — 24.0 32.2 31.2 30.2 Dry Goods Groceries . Hardware Drugs Inc. (or Dec.) in Sales during July, 1920, over same month last year. 16.0 20.6 24.7 29.6 10.0 1.0 21.5 11.1 Movement of Livestock at Principal Centers in Fourth District For Month of August, 1920 Hogs 1919 1920 Cattle 1919 1920 Cincinnati . . . . Pittsburgh . . . . C levelan d........ T o l e d o ............ F o s to r ia .......... D a y t o n ............ W h e e lin g ........ 27,462 47,357 10,886 964 470 2,175 487 28,883 42,506 12,376 14 1,609 879 94,454 158,920 57,159 4,868 3,993 10,254 954 77,102 81,231 35,069 2,593 6,525 768 Calves 1920 86,239 117,394 19,710 761 1,317 1,808 852 Cars Unloaded 1920 1919 1919 1920 1919 108,546 111,566 19,483 14,334 31,395 11,715 726 375 845 1,365 14,405 23,867 12,010 2,519 4,681 1,380 2,495 3,914 1,093 260 616 1,427 27 18 12 13 7,865 8,205 10,649 654 185 827 7,886 7,261 11,489 661 2,324 1,198 Purchases for Local Slaughter Cincinnati Pittsburgh . .. Cleveland . . . . T o l e d o .......... F o s to r ia ........ D a y t o n .......... W h e e lin g ----- 17,465 6,734 9,462 645 10 1,904 16,882 6,684 11,165 14 50,385 27,509 37,098 3,652 325 5,043 50,077 19,179 27,338 688 16,474 13,271 16,623 106 10 633 18,679 11,246 15,362 10 191 Condition of Principal Crops in the State of Ohio on September 1, 1920, as Compared with August 1, 1920, and September 1, 1919 Corn Condition September 1, 1920 Condition August 1, 1920 . . . Condition September 1, 1919 Yield 1919, bu............. (a) in thousands of bushels. Oats Potatoes 97% 96% 96% 90%, 76% 53%, 64,022 13,008 (b ) 63,274 15,296 (b ) 51,858 9,300 (b ) (b) thousands of pounds. (c) thousands of tons. 90% 88% 90% 140,790 155,918 162,800 Tobacco Hay 88%, 80% 75% 84,315 78,100 77,400 (c) 3,966 (C) 3,073 THE MONTHLY BUSINESS 7 REVIEW Lake Coal Statement o f Bituminous Coal Loaded into Vessels (A s Dumped by D ock s) in Net Tons for the Month of August, 1920, as Compared W ith the Same Period for the Season o f 1919. 1920 Cargo Railroads Ports Fuel 1919 Total Cargo Fuel Total 591,631 159,907 283,283 210,763 125,192 265,201 351,389 39,157 .............. 222,432 227,205 226,010 103,689 14,421 829,118 379,625 346,120 323,772 316,981 598,516 275,019 120,706 17,141 10,019 8,774 4,510 11,034 32,368 23,554 8,662 846,259 389,644 354,894 328,282 328,015 630,884 298,573 129,368 578,958 154,955 275,844 204,992 121,580 250,082 321,690 37,982 306,288 414,845 373,479 69,897 54,422 40,507 14,751 6,315 5,429 9,882 346,795 429,596 379,794 75,326 64,304 207,631 216,303 223,763 97,123 12,368 12,673 4,952 7,439 5,771 3,612 15,119 29,699 1,175 .......... 14,801 10,902 2,247 6,566 2,053 T o t a l ........ ....................................................... 4,408,788 192,946 4,601,734 2,703,271 117,009 2,820,280 2,984,508 . 84,205 885,291 26,713 1,623,051 37,891 26,513 936,149 1,063,902 34,409 1,961,786 103,710 1,598,451 163,919 135,170 4,289 16,692 12,954 1,246,265 93,481 1,260,910 57,258 935,857 5,739 527,052 27,338 145,472 9,328 3,068,713 912,004 1,660,942 962,662 1,098,311 2,065,496 1,762,370 139,459 29,646 1,339,746 1,318,168 941,596 554,390 154,800 Toledo Sandusky Huron Lorain Cleveland Fairport Ashtabula Conneaut Erie H ocking V a l le y ................ .. . Toledo & Ohio C en tra l... . . . Baltimore & O h io ............ . . . P en n sylvan ia.................... . . . W heeling & Lake E rie . . . . . . Baltimore & O h i o ............ . . . P en n sylva n ia .................... . . . Erie ..................................... Baltimore & O h io ............ New Y ork C en tra l............ .. . P en n sylva n ia.................... . . . Bessemer & Lake Erie . . . . . . Pennsylvania— W est Pennsylvania— E a s t ........ For the Season to End of August Toledo Sandusky Huron Lorain Cleveland Fairport Ashtabula Conneaut Erie H ocking V a lle y ................ . . . Toledo & Ohio C en tra l.. . . .. Baltimore & O h i o ............ . .. P en n sy lvan ia.................... . . . . W heeling & Lake Erie . .. .. Baltimore & O h i o .......... .. . . . P en n sy lvan ia.................. . . . . Erie .................................... . .. . Baltimore & O h i o ............ New Y ork C e n tr a l........ .. . . P en n sylva n ia.................. .. . . Bessemer & Lake Erie . . . . . . .... Pennsylvania— W est Pennsylvania— East . . . . Total . . . . 1,811,256 854,755 644,643 723,938 1,123,653 1,723,662 445,663 140,609 34,760 35,862 20,507 9,312 61,928 131,549 80,582 10,617 1,846,016 890,617 665,150 733,250 1,185,581 1,855,211 526,245 151,226 698,814 820,404 1,478,112 110,116 86,901 148,576 55,126 24,251 8,008 47,039 847,390 875,530 1,502,363 118,124 133,940 .. . .10,662,526 668,117 11,330,643 15,320,556 687,747 16,008,303 Total Debits by Banka to Individual Accounts Akron Cincinnati Cleveland Columbus Dayton Erie Greensburg Lexington Oil City Pittsburgh Springfield Toledo Wheeling Youngstown Total Week Ending Sept. 15, 1920 Week Ending Sept. 17, 1919 Increase or Decrease 23,667,000 73,032,000 188,435,000 31,320,000 11,958,000 7,676,000 4,672,000 5,609,000 2,565,000 198,264,000 4,097,000 36,850,000 8,602,000 17,289,000 1,318,000— 1,727,000 1,078,000 1,351,000 507,000— 1,153,000 2,584,000 886,000— 1,738,000 13,823,000 343,000— 2,945,000— 1,386,000 925,000 614,036,000 19,766,000 - - - 74.759.000 289.513.000 32.671.000 11.451.000 8.829.000 7.256.000 4.723.000 4.303.000 212.087.000 3.754.000 33.905.000 9.988.000 18,214,000 - - - 633,802,000 Percent of Inc. or Dec. 5.5— 2.3 .5 4.3 4.2— 15.0 55.3 15.7— 67.7 6.9 8.3— 7.9— 16.1 5.3 3.2 8 THE MONTHLY BUSINESS REVIEW Clearings Aug. 16 to Sept. 15 1920 Akron Cincinnati Cleveland Columbus Dayton Erie Greensburg Lexington Pittsburgh Springfield T oledo W heeling Youngstown - Total - - - 44,646,000 294,947,771 547,736,793 63,619,200 20,425,145 11,726,077 5,811,549 5,927,124 732,829,674 7,615,206 65,348,934 21,312,939 20,039,605 38,381,000 259,474,036 453,641,784 57,731,700 19,179,745 8,777,228 4,375,668 6,648,596 573,319,661 7,370,735 58,772,000 20,419,139 22,298,428 1,841,986,017 1,530,390,320 Percent of Inc. or Dec, Increase or Decrease 1919 6,265,000 35,473,135 94,095,009 5,887,500 1,245,400 2,948,849 1,435,881 721,472— 159,510,013 244,471 6,576,934 893,800 2,258,823— 16.3 13.6 20.7 10.1 6.4 33.5 32.8 1 0 .8 27.8 3.3 11.1 4.3 10.120.3 311,595,697 Comparative Statement of 92 Selected Member Banks in Fourth District In Thousands of Dollars 9/10/20 U. S. Bonds to secure circulation.................................. 42,235 Other U. S. Bonds including Liberty B on ds.............. 60,448 U. S. V ictory N o t e s ......................................................... 18,709 U. S. Certificates of Indebtedness.................................. 25,237 Total U. S. securities ow n ed ........................................... 146,629 Loans secured by U. S. Government war obligations 63,759 Loans secured by stocks and bonds, other than U. S. securities ....................................................................... 320,403 All other loans and in vestm en ts.................................. 921,827 Reserve balance with Federal Reserve bank.............. 104,220 Cash in v a u lt ..................................................................... 31,896 Net demand deposits on which reserve is computed. . 938,051 Time deposits on which reserve is co m p u te d ............ 375,510 Government d e p o s its ....................................................... 2,804 Member banks collateral notes secured by U. S. war o b lig a tio n s ..................................................................... 32,496 All o t h e r ........................ ................................................ 36 Bills discounted for member banks secured by U. S. war ob lig a tio n s............................................................. 11,204 All o t h e r ......................................................................... 39,494 Total resources at date of this report...................... 1,927,626 8/13/20 42,134 59,174 19,526 20,931 141,765 63,675 324,302 906,073 101,396 30,924 914,849 367,892 3,624 Inc. Dec. 101 1,274 817 4,306 4,864 84 3,899 15,754 2,824 972 24,202 7,618 820 35,210 36 2,714 12,306 45,476 1,907,877 1,102 5,982 19,749 Building Operations for Month of August Permits Issued New Construction Alterations 1919 1920 1919 1920 Akron Cincinnati Cleveland Columbus Dayton Erie Lexington Pittsburgh Springfield Toledo W heeling Youngstow n Total Valuations Inc. or Dec. of New Construction Alterations Total Valuation 1919 1920 1920 1919 1920 over 1919 234 165 207 143 101 51 15 263 14 261 29 82 488 271 371 223 193 84 36 488 129 250 27 244 66 562 880 106 67 33 58 103 12 110 11 29 129 571 872 101 71 51 25 112 26 140 20 40 1,654,503 211,970 1,571,600 1,538,250 310,388 320,145 500,000 1,827,027 102,675 474,605 78,660 141,910 1,565 2,804 2,037 2,158 8,731,733 1,842,063 92,780 684,255 437,025 6,723,200 1,286,800 648,115 108,650 1,087,422 84,061 204,665 77,319 646,503 34,070 2,227,086 191,347 341,580 14,250 902,767 109,725 52,957 43,340 1,603,496 39,075 216,170 310,950— 524,230 559,490— 772,775 4,637,575— 115,715 883,070 45,570 738,543— 64,153 128,646 50,000 162,433— 175,162 383,874— 43,450 268,105— 138,731 457,168— 7,815 61,228 75,975 1,498,486— 16,964,109 2,518,442 2,229,746 7,943,680— Percent of Inc. or Dec. 15. — 46.2— 61.8— 115.7 65.2— 47.7 23.2— 15.9— 69.6— 43.9— 101.6 89.2— 41.3— THE MONTHLY BUSINESS 9 BEVIEW STATEMENT OF CONDITION FEDERAL RESERVE BANK OF CLEVELAND SEPTEMBER 24, 1920 R E SO U R C E S Gold Gold Gold Gold Gold and gold certificates......................................................... settlement fund with F. R. B oard................................. with foreign agencies..................................................... with Federal Reserve A g e n t......................................... redemption f u n d ............................................................... $10,413,000 57,035,000 9,139,000 141,583,000 11,852,000 Total gold reserve............................................................. $230,022,000 Legal tender notes, silver, etc................................................ 2,275,000 T O T A L CASH R E S E R V E ........................................... Bills discounted— Secured by Government war obligations Bills discounted— All oth er..................................................... Bills bought in open m arket............................................... Total bills on hand........................................................... U. S. Government U. S. Government U. S. Government All other earning bon ds........................................................... V ictory n otes............................................. certificates of indebtedness.................... assets........................................................... $232,297,000 72,579,000 149,088,000 50,298,000 $271,965,000 833,000 10,000 23,338,000 T O T A L E A R N IN G A S S E T S ...................................... ............... $296,146,000 Bank p r e m is e s ........................................................................... Uncollected items and other deductions from gross deposits 5% Redemption fund against F. R. bank n o t e s .................. All other resources..................................................................... 1,172,000 86,405,000 1,139,000 297,000 T O T A L R E SO U R C E S ................................................. $617,456,000 L IA B IL IT IE S Capital paid in ........................................................................... Surplus F u n d ............................................................................. Government d e p o s it s ............................................................... Due to member banks— Reserve accounts.......................... Deferred availability item s....................................................... Other deposits including foreign government credits . . . . $10,253,000 13,712,000 1,615,000 146,098,000 66,540,000 2,224,000 T O T A L G RO SS D E P O S I T S ....................................... $216,477,000 Federal Reserve notes in actual circulation.......................... F. R. bank notes in circulation— net liability......................... All other liabilities..................................................................... 350,647,000 21,659,000 4,708,000 T O T A L L IA B IL IT IE S $617,456,000 10 THE MONTHLY BUSINESS BEVIEW PICKUPS ON BUSINESS TOPICS are good prospects for the sale o f Am erican trac THERE tors to the plantation owners o f Java, the opening o f which market would be hastened b y the cooperation o f American manufacturers. It has been suggested that Am eri can manufacturers send experienced men to Java to demon strate their machines to the people and let them know what cooperation they may expect from the manufacturers. A t present there are plows, rollers, cultivators and other imple ments to work with in Java, but the people are not educated up to their use. There is also a market fo r ditchers, which should be a plow type o f implement that w ill cut the soil so it can easily be squared up, and it is thought that it should be attachable to the tractor to get the advantage o f the trac to r ’ s weight. Certain countries in West Indies and Latin America have the decimal units o f currency and use the dollar mark in quotation o f prices the same as the merchants o f the United States. It is very important in quoting prices to foreign countries at this time, that after the amount quoted the words “ U. S. A. dollars’ ’ should appear, owing to the fact that the currency in a number o f these countries has depre ciated, and serious misunderstanding might occur i f they attempted to pay with their own dollars. In some cases the dollars o f these countries have decreased in value, owing to difference in exchange, at least forty per cent. “ Commercial Travelers Guide to Latin A m erica,” pub lished by the U. S. Bureau o f Foreign and Domestic Com merce, Washington, consists o f text with portfolio o f maps, covering all sorts o f inform ation o f value to the commercial salesman in M exico, South America, and the West Indies. The All-American Cables, form erly the Central and SouthAmerican Telegraph Company, has finally gained entrance to Brazil, thus providing direct American-owned cable service between this country and Brazil at reduced rates. A gas which is obtained by the destructive distillation o f wheat, oat and rye straws is now being produced on a small scale at an experimental farm in Virginia. The United States used 18 pounds o f sugar for each inhabi tant in 1865; last year it consumed 90 pounds per capita. The Government is planning to establish a labor bureau at Ellis Island. 'T 'H E American Chamber o f Commerce in London reports a new cold vulcanization process o f rubber, which has been perfected at the Manchester College o f Technology. This process consists o f bringing rubber into contact with, sulphurated hydrogen and sulphur dioxide. The free sulphur produced vulcanizes the rubber at such a temperature that various wear-increasing materials, such as leather scraps, can be vulcanized into the body o f the fabric. The discovery, it is claimed, w ill vitally affect the manufacture o f linoleum, artificial leather, and kindred products. Bethlehem Steel Corporation and the Bethlehem Shipbuild ing Corporation, Ltd., have perfected a new tw o-cycle fuel saving marine Diesel engine especially designed for American operating conditions and adapted to land use as w ell as cargo vessels o f any size. This machine, Mr. Schwab says, can be operated with one-third the amount o f oil generally used by ships with oil-burning steam machinery. Dr. J. T. Holdsworth, V ice President of the Bank of Pitts burgh, has compiled a pamphlet, entitled “ Trade with the O rient.” The publication is intended primarily to acquaint manufacturers, importers and exporters w ith the possibilities o f foreign trade. A tabulation shows that it costs a department store any where from 5.5c to 30c to deliver a package for a customer, and that the average cost o f delivery is slightly over 12c for each package. Flour, textiles, petrol, soap, candles, matches and preserved meats are some o f the principal articles which w ould find a ready sale in Melilla, M orocco. Extensive preparations are being made at Canadian ports to handle the gram crops. Montreal is able to deal w ith 900,000 bushels daily. The United Glass W orks, Ltd., at Geelong, Australia, is now almost completed, and is expected to produce annually 20,000 gross o f bottles. M otorcycles are in demand in the province o f Pernambuco, in Brazil.
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