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The Monthly Business Review Covering financial, industrial, and agricultural conditions in the Fourth Federal Reserve District TOL* 5 CLEVELAND, OHIO, OCTOBER 1, 1923 Records Which Have Been Established In Industry During The Last Few Months: 1. Largest pig iron p rod u ction . 2. Largest c o tto n co n su m p tio n . 3. Largest ste el in g o t p rod u ction . 4. Largest crude oil p rod u ction . 5. Largest a u to m o b ile and tru ck p rod u ction . 6. L argest resid en tial co n stru ctio n . 7. L argest p rod u ction of locom otives. 8. Largest volu m e of m a il order sales. 9. L argest vo lu m e of retail sales. 10. Largest volu m e of railroad car load in gs. FEDERAL RESERVE BANK of CLEVELAND D. C. Wills, Chairman of the Board (C O M P IL E D S E P T E M B E R 22, 1923) NO. 10 THE 2 MONTHLY BUSINESS REVI EW SB An Editorial UST what effect the recent Japanese disaster will have on American business is a question which has been uppermost in the minds of many of us during the past few weeks. Japan has started to re build. The ashes of the great fires which followed the quakes had scarcely cooled before plans were under way to bring a new and more up-to-date Japan out of the ruins; a Japan more in keeping with the progressive spirit of her people. Such a comeback requires pluck and courage and the Japanese are showing that they have these qualities. J While the loss of life and property was staggering, suffering was undoubtedly minimized by the prompt action of relief agencies. The outside world necessarily has been viewing the situation through smoked glasses but these are beginning to clear. Wild rumors are being replaced by conservative estimates. The Government, according to recent advices from Tokio, is tak ing steps to provide the funds necessary for a great reconstruction campaign through local and foreign loans. While insurance com panies and their underwriters have, of course, suffered losses, Japan’s financial system as a whole remains firm and it is quite generally con ceded that her credit is unimpaired. Reconstruction is necessary as a result of this disaster. The United States has many of the things Japan needs. Just how much of the calamity-made demand will come this way is still a problem. There will, of course, be a limited immediate demand for materials like steel, nails, wire, pipe, and roofing to house the multitudes that have suddenly been left without protection from the elements at a season of the year when colder weather is on the way. The permanent replacement of properties destroyed, how ever, will be done largely upon credit and the buyers of materials will naturally look for the market that can give them what they want. Business over here continues on a sound basis. As the basis for sound business is the purchasing power of the people and as the purchasing power is produced by a condition THE MONTHLY BUSINESS REVIEW of general employment, the following records which have been established in industry during the last few months, as cited by Julius H. Barnes, President of the Chamber of Commerce of the United States, furnish several good reasons for this practically undisturbed business routine: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Largest Largest Largest Largest Largest Largest Largest Largest Largest Largest pig iron production. cotton consumption. steel ingot production. crude oil production. automobile and truck production. residential construction. production of locomotives. volume of mail order sales. volume of retail sales. volume of railroad car loadings. To this we might add that according to the September crop forecasts of the Department of Agriculture, the com crop this year will be 185,074,000 bushels above the 1922 estimate; the oats crop will be 110,251,000 bushels higher; and there will be 1,026,000 more bales of cotton. The estimate of the wheat crop shows a decline being placed at about 72,800,000 bushels less than last year. Back of all this is the sound financial condition of the country. After all, the successful development of modem industry and commerce is possible only when all the fundamental factors in the situation perform their respective parts in the work of the whole. It is obvious that no matter what the consumer’s demand for goods may be, if through lack of transportation facilities the goods can not be delivered to him, or if the manufacturers are unable to re ceive sufficient raw materials, the natural working out of the law of supply and demand is impeded. Fortunately there has been a surplus of equipment for several months which enables the roads to perform their part of the program well. It is equally clear that were it not for the smooth working of our financial machinery, as for instance the par clearance and quick collection of checks which are made possible through the Federal Reserve Banks, the vast volume of business which we have at present could not be handled so expeditiously. 3 4 THE MO N T H L Y B U S I N E S S REVI EW Loans To Banks in A gricultural Sections Sh ow U pward Trend; High P o s ta l Savings A ttr ib u te d to H ealth y E m p lo y m e n t Conditions The banking situation in most respects remains practically the same as it was a month ago. Loans to banks in industrial sections continue to show the usual seasonal fluctuations with no special tendencies. There has been some shifting of public funds. Bankers in this District express the nearly unani mous opinion that finances are in a healthy condition and that fears arising as a result of the recent Japan ese disaster have been largely dispelled. One change since last month, however, is the up ward trend of accommodations extended to country banks. The need of funds for crop moving purposes is becoming more apparent and more livestock is being purchased. On August 20 the reserve ratio of this bank was 78.6 per cent as compared with 80.0 per cent on September 20. The reserve ratio of the System on August 20 was 78.2 per cent as against 77.4 per cent on September 20 . Savings deposits continue to gain in this District. Reports from member banks for August, 1923, show a gain of 13.7 per cent as compared with the same month last year while the gain over the previous month was .8 per cent. The largest increase since December, 1920, was re corded in postal savings accounts during the month of A ugust over that of July, according to figures re ceived by the Postm aster General from postal savings depositories all over the country. T he increase is at tributed to more healthy employment conditions, espe cially among the foreign classes. The num ber of commercial failures in the F ourth Federal Reserve District was larger in A ugust than in July but the total liabilities were less, according to figures compiled by R. G. Dun & Co. D uring the month of A ugust there were 116 failures as compared with 91 in July. Liabilities for A ugust totaled $1,870,656 while in July the total reached the high point of $5,763,981. A decline of $3,893,325 o r 67.5 per cent is here shown. The average per firm fo r A ugust was $16,126 as against $63,340 for July, a decrease of $47,214 or 74.5 per cent. Comparing A ugust with the same month a year ago, a drop of 25.6 per cent in the num ber of failures is shown. In the same comparison to tal liabilities are 47.7 per cent less and the average per firm 29.6 per cent less. W ith reference to the acceptance situation there appears to be no bill m arket here. The few purchases of bills which are made are acquired in outside m ar kets, chiefly in the east. S e n tim e n t in Iron a n d S te el In d u stry Develops Less Confident Tone; Deliveries M ore Dependable; Cancellations U nusually Few; Japanese Disaster Causes E m ergency B u ying Sentiment in the iron and steel market has de veloped a less confident tone during the past week or two as the expected expansion of fall business has come along slowly. Some overdrawn reports on the conditions in the industry and exaggerated significance given to the falling off of new orders have been quickly reflected in the attitude of buyers, many of whom have been extremely sensitive toward any indi cations of future prospects. It is questionable whether this turn of sentiment correctly reflects the outlook for the industry over the balance of the year since funda mental conditions have undergone no appreciable change. Until this check on buying appeared, the moderate gains of July and A ugust had been contin ued up to mid-September, and the recent rate of book ings of such large interests as the Steel Corporation had been double that of 30 days ago. Large unfilled orders have remained upon the books and production, while on a moderately reduced scale as compared with two or three months ago, has been at 80 to 85 per cent of capacity for the whole in dustry. The consequent large shipments with the re stricted volume of new buying has cut rather deeply into mill bookings, and deliveries have shortened con siderably in numerous lines. The industry has been working itself into a position where deliveries of ma terial have become more definite and dependable as contrasted with the drawn-out situation that prevailed well through the summer. .-Vs a result, buyers have been more certain of their supplies and have seen less need for discounting the future. The wholesome side of the picture has been the high degree in which steel has been taken out and absorbed in accordance with original orders, fo r sus pensions and cancellations have been unusually few and consumers have continued to follow closely the execution of their commitments by the mills. D uring the past week some hold-ups of m aterial have been received by the mills. The most notable case of this has been the Pennsylvania railroad which because of recent heavy steel receipts a t its Altoona, Pennsylvania, shops, has ordered shipments held back until the congestion can be cleared. Some other buyers have made similar requests but such cases are excep tional and steel producers are continuing on heavy shipping schedules. W hether the present halt of new buying is only a tem porary one and has been induced by policies of extrem e conservatism, is not possible to be determined at the moment. The prospects, are, however, that the expansion of fall buying is likely to be deferred. Some high authorities in the industry are inclined to believe that substantial improvement cannot be expected before O cto b er.. The steel market has been largely free of THE MONTHLY BUSINESS REVIEW 5 9 price weakness and origination of new requirements n going ahead fairly well in certain fields. Structural buying has continued active. The pipe mills remain heavily sold while wire and tin plate demand has been m good volume. W ith minor exceptions, no mills bare shown an urgent need of tonnage that would im pel them to make price concessions to obtain it. The Japanese disaster has presented the probability of large tonnages of steel being required ultimately for reconstruction purposes. This demand, however, is not Hkeiy to be early and urgent but will be spread over a considerable period of time, as definite plans for per manent rebuilding are not yet worked out. A con siderable amount of emergency buying' of steel prodttcts for temporary needs, particularly in wire nails, g a lv a n ized sheets, pipe, etc., has been done in the past several weeks. "Baying of pig iron has been increased but buyers are not covering needs freely to the end of the year. Stocks in furnace yards have continued to increase and prices have remained irregular although they are steadier than thirty days ago. The stability of iron and steel prices is reflected plainly by Iron Trade R eview composite of fourteen leading iron and steel products. As of September 19, this was $44.70 compared with $44.84 on the corres ponding time one month previous. Production of pig iron fell off 7 per cent in A ugust and that of steel ingots 3.3 per cent. Pig iron output as compiled by Iron Trade R eview in A ugust was 3,442,614 tons or a daily average of 111,052 tons, compared w ith 3,684,677 tons total and 118,860 tons daily average in July. The high record rate was in May w ith a total of 3,868,486 tons and a daily average of 124,790 tons. Furnaces in blast on the last day of A ugust num bered 273, a loss of 26 from the corre sponding day in July. Steel ingot production in A ugust was 136,276 tons daily compared with 140,750 tons in July. Total pro duction in A ugust was 2,797,962 tons compared with 2,658,449 tons in July, the larger gross being due to the fact that A ugust had two more operating days than July. The annual rate of ingot production in A ugust was 42,245,560 tons compared with an annual rate of 43,576,700 tons in July. Gasoline S tocks Reduced; M ark etin g End o f I n d u s tr y S till U nsettled; Overproduction o f Crude Shows Signs o f Regaining Balance “ D istress” gasoline continue'; to flow into various sections o f'th e country and up to this time this phase of the oil situation has not been straightened out. The figures of the Bureau of Mines at the end of July (th e latest figures available) showed that gasoline stocks were reduced by more than 98 million gallons during that month and that domestic consumption increased by forty million gallons. The information obtained by National Petroleum N e w s indicates that consumption of gasoline in August was probably heavier than in lulv while refinery out put quite likely showed a drop'. The marketing end of the industry is still unsettled as a result of the cut of 10.6 cents a gallon in the re tail price of gasoline in South Dakota and propor tionate cuts in ten other states. There was a steady reduction in drilling operations and daily production of crude fell off, due to the smaller number of new wells brought in. The domi nant crude purchasing companies in the Mid-Continent field continue to maintain their posted prices for crude, although practically all other crude buying com panies reduced their quotations and even several small refining companies announced prices from 50 to 80 cents below the recognized posted prices as a maximum they would pay for their raw material. A t th e same time the big purchasing companies m aintained their posted prices, they were taking only a small percentage of the oil produced on the leases to which their lines were connected. Many producers, unable to store their oil for lack of tankage and in ability to carry the financial burden involved, have been willingly selling their oil to refiners who would take it at considerably below posted prices. About 60 per cent of the gasoline turned out by the Mid-Continent refiners is being taken by jobbers on marginal contracts which for the most part are based on a margin below7 the tank wagon market. It is the excess over this amount which refiners have been unable to store which has been thrown on the market and has kept the gasoline m arket weak. A sign that the overproduction of crude is tending to right itself, at least a psychological factor, was discovered in A ugust when a gauge of the Salt Creek field in W yoming showed that instead of making from 200 to 225 thousand barrels a day, it was making only about 171 thousand. W hile this had no immediate effect on the rest of the country, it has a more or less reassuring tendency. Early in September it appeared that the California flush fields had reached their peak of production and while California oil will probably continue for a long time to cut an im portant figure in the m arket, the volume of oil available for eastern refineries is looked upon by oil authorities as being less dependable than during the past months. Passenger Car P roduction Gains in A u gust; N ew Models A t tr a c t A tte n tio n ; R u ral Exhibits Bring Prospects The July production of passenger cars which showed a drop of approximately 39,800 as compared with June, has been passed by the August output. Truck production for A ugust continues near the level at which it stood in July. New models are attracting attention both from the THE s MONTHLY BUSINESS m anufacturing and selling standpoints. W ithin the last sixty days many of the m anufacturers have an nounced and are now m arketing their new lines and as a result dealers are enjoying improved business. Price reductions on various models have been an nounced by several m anufacturers during the past few weeks. U p to this time reports as to the result of this move are somewhat indefinite. Interest in the exhibits of cars and trucks shown at state and country fairs is reported to have been keen. These rural shows are productive of sales and bring out good prospects. W hile there is not the freedom of buying that has REVIEW been known in the past, it appears to be the general opinion of the trade that business for this time o f the year is quite satisfactory. A tem porary seasonal let-down in both the auto body and electric industrial truck lines is reported, but interest is again becoming active. A representative establishment inform s us that ju st recently they have booked orders for automobile bodies sufficiently large to carry them through with a steady production until after the first of next year. They also state th at at no time have they experienced greater interest in labor saving machinery or had more live, interesting proposi tions to work on. Autom obile Production The Departm ent o f Commerce announces August production of automobiles, based on figures received from 181 m anufacturers, 94 making passenger cars and 115 making trucks (28 making both passenger cars and trucks). Data for earlier months include 10 additional m anufacturers now out o f business. Figures on truck production also include fire apparatus and street sweepers. N U M B E R OF M A C H IN E S Passenger Cars 1921 1923 1922 J a n u a r y .............. F e b ru a ry .............. M a rc h ................... A p ril...................... M a y ....................... J u n e ....................... Ju ly........................ A u g u st.................. S ep tem b er............ O c to b e r................. N o v e m b e r............ D ecem b er............. * Revised. 43,086 68,088 130,263 176,439 177,438 150,263 *165,615 *167,755 *144,670 *134,773 *106,081 * 70,725 81,693 109,171 152,959 *197,222 *232,433 263,027 *225,079 *249,460 187,661 *217,493 *215,284 *207,932 *223,708 *254,651 *319,637 *344,475 *350,181 *337,144 *297,257 304,010 1921 Trucks 1922 4,831 7,830 13,328 18,070 18,070 14,328 *11,132 *13,391 *13,975 *13,144 *10,480 * 8,589 9,517 *13,290 *19,919 *22,486 *23,948 *26,171 *21,956 *24,601 *19,333 *21,698 *21,803 *20,160 1923 *19,533 *21,961 *34,905 *37,718 *43,228 *40,819 *30,359 30,251 Fall Season Brings Pick-U p in Various Fourth D istrict In dustries; M an y Concerns O perating a t Capacity; Labor S u pply Grows Small 'Tools— Small tools are in fair demand and are being absorbed readily. However, considering the large volume of m anufacturing and rehabilitation now in progress all over the country, orders coming from dealers are below normal and of a distinctly hand-tomouth character. Stocks in dealers’ hands have been worked down to a low point. Glass— So far as plate glass is concerned little change has taken place since last month. Factories are operating at practically full capacity and the output is being sold. There has been a decided improvement in the window glass business during the past month. Hardware— H ardw are m anufacturers are fairly busy and orders are reported to be holding up well. The labor phase of the situation is very much improved and it is now possible to get all the help that is needed. Paint and Varnish— Business in the paint and var nish industry is good. Practically all plants are oper ating full time while a few are reported to be working overtime. The slowing up of construction durin® the summer months affected the paint industry to *some extent, though this has been largely counteracted by the marked activity in other directions. Plans are now under way for carrying on an intensive campaign fo r the purpose of eliminating dull periods by extending the painting season over a greater portion o f the year. Since the first of September a m arked improvement has been noted in the white lead division and allied lines. Although business for the last two m onths is reported to have been not much over 80 per cent of the corresponding period for last year, this is looked upon as being natural for spring business was excep tionally heavy with some speculative buying and stocks were carried longer than usual. T he raw material market has been active during the past 60 days, pig lead having advanced $15.00 per ton. Bags—There has been a marked improvement in the bag business during the past few weeks, sales being made not only in considerably greater num bers but THE M O N T H L Y B U S I N E S S REVIEW also in larger units and with more anticipation. W hile tins change is doubtless to a considerable extent seasonable, it has unquestionably been stimulated by the i u r p advance which has occurred in cotton values and I f the more moderate advance in burlaps. W hile the ndj— ir o f shipments in the month of A ugust was up to a year ago, September shipments are i s t e d to be equal, while a satisfactory volume lwtfinrfH is looked for throughout the balance of not ex of the year. Cork—The cork industry is reported to be in about the same position it occupied a month ago. Business is August was good. Tm Cans and Pails—A good volume of orders is to be coming in, and indications are for in fall business. Stocks are evidently low and M & tn are for immediate needs. In some instances rep o rted cr ea sin g 7 where customers are out of the cans they need they are asking for advanced delivery. Boots and Shoes— Final figures on boot and shoe production in the F ourth D istrict for the m onth of July show a decrease of 21.9 per cent as compared with the previous month. July production in the United States totaled 25,120,728 pairs, as compared with 28,187,973 pairs for June, a decline for the month of 3,067,245 pairs or 10.9 per cent. Prelim inary reports received by the U nited States Bureau of the Census show that the output of 34 identical boot and shoe establishments located in the F ourth District was 45.3 per cent greater during A u gust than during July. Eight hundred and forty-nine establishments in the United States reported an increase of 21.5 per cent in production during August, as compared with the preceding month. Railroad Traffic M o v em e n t C lim bs to N ew H eights; Car Surplus R educed The railroads continue to show record-breaking and so far they have not felt the full effects of the crop movement. Merchandise and miscellaneous fr e ig h t loadings combined during the week ending August 25 were the greatest ever recorded. It is the belief of authorities, however, that since there was a n o tic ea b le lu ll in business activity during July and August, at least a part of the heavy loadings is the r e su lt of orders placed earlier in the year. There is still a surplus of cars, although it has been reduced by some 15 per cent since our last report. On A u g u st 31 the surplus was 66,559 cars as against 76,453 cars on July 31. The shortage rejxirted tip to thU time is insignificant. IX trin g the week ending September 1 there were 1,092,567 cars o f revenue freight forwarded as com pared with the previous high m ark of 1,069,932 cars for the week ending A ugust 25. In the first eight and one-half months of this year 103,374 cars were placed in service and there are still over 80,000 on order. D uring the year up to August 15, 2,364 new locomotives have been added. T h ere has also been a slight improvement in the num ber o f cars temporarily unfit for service, so that on A ugust 15 there were 8.2 per cent of the total in bad order. The operating income and also operating expenses of Class 1 railroads were lower in July than in June, the form er dropping from $541,266,041 to $535,577,300 and the latter from $417,010,881 to $414,333,300. In comparison with July of last year, income increased 20.7 per cent and expenses 21.5 per cent. R ecession in L um ber Prices a n d Growing Labor S u p p ly A id C o n stru c tio n ;*■Efforts to P rom ote Continuous B uilding Program P rom ise G reater W in ter A c tiv ity There are two developments in the building situation intiiin th e last few weeks which arc favorable to the o jn ie r. One of these is a recession in lumber prices a m o u n tin g to approximately 10 per cent, and the other is a grow ing supply of both skilled and unskilled labor- T he latter does not come from any outside so u rc e but is rather due to a slackening in the demand. The paym ent of premiums in certain trades which fjecasne necessary a few months ago in order to secure workm en for pressing needs is now practically aw ay with. F r o m present indications a larger amount of work fhjwi is usually conducted during the winter season will be in progress during the coming months. This is due to an effort on the part of various organizations to promote an all-year-round building program as a means of relieving serious conditions in the spring and early summer when the usual rush is in progress. Statistics prepared by the Builders Exchange of Cleveland indicate a marked falling off in home con struction in Cleveland Heights, the largest surburban community, which for many months has been under going a marked building boom. T he total value of permits issued in A ugust was only $487,000 as com pared with $1,067,000 for A ugust, 1922, and $1,114,000 for the preceding m onth o f July this year. T he com munities of Shaker Heights, Lakewood, and E ast Cleveland made a better showing, the value o f permits equaling or slightly exceeding the records of the cor responding month last year. While there is an easing off of conditions both from the seasonal standpoint and also from the point of the investor, there is still enough building in progress and in prospect to keep the industry in a healthy con dition for some tim e to come. 8 THE MONTHLY BUSINESS REVIEW A u gu st a Record M on th in the C em en t In d u stry ; Indications P o in t to S u b sta n tia l Fall D e m a n d All records for the production and shipment of Portland cement were broken in August, according to figures just issued by the United States Geological Survey. Several times this year, according to the Portland Cement Association, people who have been in doubt as to the productive capacity of the cement industry have had their guesses shattered by the way the industry has kept pace with demand. Production during A ugust was 12,967,000 barrels, an increase of 350,000 barrels over July, the best previous record, and 1,300,000 barrels over A ugust last year. P roduc tion for eight months ending August 31 was nearly 88,000,000 barrels or more than was produced in any one of the entire years 1915, 1918, or 1919. Shipments from the mills during August were only slightly under 15,000,000 barrels, or more than 600,000 barrels greater than in any previous month. Ship ments fo r the first eight months of the year were nearly 91,000,000 barrels, or more than 19 per cent greater than ever before. Although shipments exceeded production during A u gust by about 2,000,000 barrels, the stocks of cement in m anufacturers’ hands at the end of the m onth were somewhat greater than last year and amounted to slightly over 6,000,000 barrels. T here is a heavy volume of building now u n d e r construction and prospects for winter construction are considered good. Many highway officials have e x pressed a determination to complete this year’s road building programs so the amount of cement consumed in concrete pavements will undoubtedly be g re a te r than in any past year. Am erican Brick Makers Face Foreign C o m p etitio n ; New Business Sh ow s Upward Trend; A u gu st Paving Brick S h ip m e n ts H ighest For A ny Previous M on th in 1923 F o r the first time in the history of the brick in dustry the American m anufacturer of brick is having to m eet foreign brick competition, according to the Common Brick M anufacturers’ Association. Im ported brick so far have appeared only in the port of New York where a number of cargoes have been received from Holland, Germany, and Belgium. The first cargoes were of the European size, which is much larger than American brick, and they were not received with favor here either by contractors or bricklayers. The American importers, however, have taken American molds abroad, so that the brick now coming in are of the standard American size. It is reported that the brick cost only $4.00 per thousand at Holland, w ith a transportation charge to N ew Y ork of $4.00 a thousand. This places the brick on board boats in New York harbor at $8.00. M anufacturers along the H udson River who supply the greater p art of New Y ork’s brick cannot produce brick fo r $8.00 per thousand; in addition to this the towing charge from the plants to New York averages nearly $4.00 a thousand. In other words the towing companies get as much for towing barges already loaded as the steamship companies get for bringing brick from Holland to New York. The labor in the American plants ranges from $6.00 to $12.00 a day per man, which is probably the equivalent of a week or more of earnings for the Dutch brick maker. T he product coming from Belgium and Germany has largely been an imitation of brick made from sand and lime, but the Holland importations have been real brick. Brick men believe that if the surplus brick of the European countries could be diverted to Japan where it is badly needed, it would relieve a situation which threatens the prosperity of the clay industry in America. General conditions in the brick industry are not unfavorable. There has been a partial recovery from the slump of midsummer, and while activities in the construction field are less marked there is an upw ard trend to the new business at the present time. Paving brick shipments for the month of A ugust were higher than for any previous month in 1923, according to statistics just issued by the National Paving Brick M anufacturers Association. Reports from 67 per cent of the industry’s tonnage showed that shipments were more than nine million greater for A ugust than for July, 36,446,000 brick being shipped in A ugust and 27,092,000 in July. 8 Paving brick production for A ugust was 33,457 000 as against 30,529,000 for July. Stock on hand ’the last day of A ugust was 74,399,000 as against 78,835 000 the last day o f July. This reduction of 4,000,000 in stock on hand was due principally to the heavy A u gust shipments. There was a falling off in unfilled orders am ount ing to 12,000,000 brick, a natural trend tow ard the end of the summer paving season. Ohio led all other states in consumption, 5,781 000 brick going for city streets and 5,784,000 fo r country highways. Illinois was second with Pennsylvania, Nebraska, and Texas following closely. THE MONTHLY BUSINESS REVIEW 9 D em an d For L um ber S o m e w h a t Heavier; R etailers B uy M o stly For Current R equirem ents; Factory Trade Uses More H ardw ood L u m b er The anticipated fall demand for lum ber has set in and so far it has been running true to calculations. About August 20 buying began to show some activity and tins has continued with a slight increase in volume, so that now the lumber industry' is experiencing a com paratively good demand. W ithin the last ten days reports from southern mills reflect this condition. For about two weeks of the past month orders placed with the mills exceeded shipments, but since that time they have again dropped back to near their form er position. From the sales standpoint it is generally conceded that the buyers have no intention of stocking up but that they are buying largely for current requirements. The' present low position of stocks is leading m anufac turers to anticipate a fairly strong demand for several weeks during the fall building season. M anufacturers believe^ the demand will be just about sufficient to maintain the present price level with possible slight changes here and there. The main cause for the attitude of reserve on the part of the retail lumber dealers is the building situa tion as viewed from the angle of present costs. ket for the volume of lumber expected according to a recent report. Consumers of boxing and crating lum ber are placing orders in fair volume and hardwood flooring sales show some improvement. M anufac turers of oak flooring are continuing their purchases of grades of lumber suitable for their purpose. Hardwood Lum ber D ry stocks of hardwood lum ber in the hands of producers are reported to be depleted. The furniture industry has not yet entered the m ar The automotive industry still leads in the demand for hardwoods. D ry stocks of maple are scarce but birch is more plentiful. A t this season of the year production of hardwoods in the Appalachian sections naturally declines owing to uncertain weather conditions. M any of the smaller mills close down entirely during the fall and w inter months. Logging operations are virtualy at a standstill in southern areas. In this connection we are inform ed that even with favorable weather conditions it will be several months before a satisfactory supply of logs is in evidence. Production in the south has been retarded during the past four months and is continuing considerably below normal. L a rg e st Ohio Corn Crop on Record; Som e D am age From R ecen t Frost Is R epo rted; Weather Very U n se ttled During B urley Tobacco H arvest Farmers in this District have been handicapped in their fall work by unsettled weather. Frosts have been reported in some sections, although for the most part the crops were sufficiently matured to avoid any great damage. The Ohio oats crop is estimated at 55,500,000 b u sh e ls which is an indicated yield of about 35 bushels to the acre. The total crop last year was slightly less than 40,000,000 bushels according to the statistician of the Ohio Department of Agriculture. The com crop is showing what Ohio farms will prodnce under favorable weather conditions. The crop is now forecast at a little less than 178,000,000 bushels as compared with 174,000,000 bushels, the previous record crop which was produced in 1912. It is evident, therefore, that if present forecasts are fulfilled, this year’s crop will be about 4,000,000 bushels larger than the previous record. The 1920 crop was only about 2,000,000 under the high mark of 1912. The rains have been well distributed throughout the g ro w in g season. The temperature was also quite sat isfactory. While there is still some danger from early frost, especially in the northern part of the state, most of the crop is sufficiently matured to prevent serious damage. This year’s crop is uniform ly good over practically all sections of the state. Potatoes show a slight decline in condition over last month. The United States crop is forecast at 390,000,000 bushels which is a fairly short crop. The average state yield for timothy hay is estimated at 1.1 tons per acre as compared with 1.4 tons last year. Apparently there was about 75 per cent of a normal crop of clover hay. P asture is in fairly good condition for this time of year. T ruck crops show no material change from last month with indications for a fairly good crop. The apple, peach, and pear crops, according to pres ent indications will be from 65 to 70 per cent of nor mal, taking the state as a whole. The Burley tobacco growers have been busy w ith the harvesting of their crop. The w eather has been de cidedly unsettled during the harvesting season and this has caused the tobacco grow ers considerable un easiness. Damage from houseburn for the tobacco in the barns and the possible fu rth e r spread of disease in the case of the tobacco not yet harvested has been feared. The Septem ber Kentucky Crop Report indicates a total production of all types of tobacco in Kentucky of 565.186,000 pounds as com pared to a crop of 446,250,000 pounds in 1922. The fact that this year’s crop is larger than last has caused considerable discussion with regard to what prices are likely to be, but as the m arketing season will not open until about December, it is too early to know what 10 THE MONTHLY BUSINESS price will be paid. A t grow ers’ meetings in some sec tions of the Burley district some sentiment in favor of a cut-out of next year’s crop has been expressed, but no action looking to such a program has been taken. The Burley Tobacco G row ers’ Cooperative Association REVIEW has sold a large share of the 1922 crop delivered to it by its members. It has signed up a considerable num ber of additional growers so that it now includes in its membership almost 90 thousand tobacco growers. Textile a n d G arm en t Industries R e p o rted Generally Active B u t R etailers a n d M anufacturers Move W ith Caution; Preparations Being M ade For Spring Openings; Cold W eather Aids Retailers The men’s wear industry and allied textile trades continue to show a large volume of business although a slight feeling of uncertainty is apparent. While retail business is quite generally reported to be good with retail stocks low, both retailers and m anufacturers are moving with caution. Since our last report lines of woolens for the spring of 1924 have been opened and clothing manu facturers have placed their orders. Prices show ad vances of approximately 10 per cent over the fall 1923 opening. However, as the buying activities during A ugust progressed and woolen mills became aw are of the hesitation of m anufacturers to cover any substantial part of requirements, the goods market showed a perceptible weakness. It was expected that this would influence the wool market toward a further decline from the peak of early summer, but this did not occur as wool had apparently reached a point where holders preferred taking a chance on the fu ture rather than accept any lower prices. The market was marking time to see what would take place at the London sale which occurred about two weeks ago. Instead of the expected decline the sale showed surprising strength, better grades show ing an advance of 5 per cent over the previous sale, the balance of offerings selling at the same levels. This has, no doubt, improved the tone of the American situation. M anufacturers are now busy preparing for their own spring openings which should occur within the next three or four weeks. In the meantime all are eagerly watching the developments of fall retail busi ness which will, no doubt, furnish the key to the wind-up of the year and also establish the level of business for the spring of 1924. R eports from the country at large are generally favorable. The far west and south report good busi ness as do the industrial centers. Some of the cen tral states have no doubt been influenced by the overemphasis placed on wheat prices, but the general abundance of crops leads local merchants to expect a reasonable fall business. The retail trade is beginning to react to the seasonal demand caused by the arrival of cooler weather, and activity in retail stocks is becoming evident. It is not expected that the cool tem perature has come to stay so early in the fall, but it has nevertheless given a stimulus to retail trade. Regarding the knit goods line, orders for immediate delivery are reported to be coming in rapidly. Buyers Delay in Placing Their Orders for Paper; S to c k s Believed R educed to M in im u m Paper m anufacturers noticed a drop in the demand for their products during M arch and in the early sum mer months the lull became more evident. Many of the paper mills of the country have been running short since that time while the consumption of paper has been going on at a normal or very close to normal rate. It is quite generally believed, therefore, that the paper industry is in a fairly strong position due to the fact that stocks, both in the hands of the wholesalers and printers (and possibly the consumers) have been reduced to a minimum. This naturally results in in creased demand. The anticipated improvement in orders appeared as per schedule, but a sudden cut in the price of bleached sulphite on the part of the larger m anufacturers is reported to have caused some uncertainty, with the result that buyers have delayed in placing their orders. It is believed, however, that this is only a tem porary situation. M anufacturers do not expect that the re duction referred to above will have any great effect upon m anufacturing costs, because of the fact that the cut was made by a few of the larger producers who were forced into taking this action owing to the competition of other m anufacturers, and particularly to competition of imported material which had for some time been at lower levels. So far this has not extended to the standard lines but has been holding strictly to the cheaper grades which are very competitive and are sold on a rnrir* t • i basis only. Most of the raw materials and m anufactured article^ used by the paper m anufacturer are holding steady in price, while a few of them are beginning to advance. Wholesale Grocery Business Shows Signs of Im p ro v e m e n t; In tere st Already Sh ow n in Holiday Ite m s ; Cucum ber Crop E stim a te d a t 5,603,000 Bushels During the month of A ugust there were few new developments in the grocery business, but there are signs of improvement. The vacation season is over and the return of people to their homes always affects the grocery business to some extent. There have been some changes in prices, particularly THE MONTHLY BUSINESS OB canned goods such as peas and tomatoes. The Market on both of these items during the past thirty dajrs has been upward. Sugar has shown another advance according to recent reports, but the demand does not seem to be very heavy. Prices on dairy products such as cheese and milk have held quite firm and grocers expect a continuation of this throughout the fall months. Wholesale grocers are now approaching the holiday season when the merchants will be in the market for Ac new crop of dried fruits and other items in popular SK during that period. Merchants are now placing A e r orders for California walnuts for delivery on the arrival of the new stock. The walnut crop this year shows signs of being much bigger than the crop a year ago. Dried fruits such as apricots, raisins, and prunes are lower in price than last year and this fact is ex pected by the trade to create a good demand. Stocks in retailers’ hands continue low and as a grnrxal rule retailers are buying quite close to their REVIEW 11 A crop of 5,603,000 bushels of cucumbers for pickles this year, or more than twice the size of the 1922 crop, is forecast by the U nited States Departm ent of Agriculture. T he increase is attributed to larger acreage and a greatly increased yield per acre. M ichi gan is the leading producing state with a forecast of 2,579,000 bushels. The tomato crop is always somewhat of an u n certain quality and while the acreage planted was large, the crop has been affected by unfavorable weather, starting first with a late season which re tarded the setting out of the plants, and later by the excessive rainfall which came along about the time the crop began to produce. Almost every disease affecting the tomato plant thrives in wet weather and consequently a considerable part of the acreage has felt the result. According to a recent report the production of canned corn will not be as large as was at first antic ipated. The m arket has held up strong and canners have made very large sales against the present crop. S € ttle m e n t of A n th ra cite C ontroversy R estores Confidence in Coal In d u stry; S tocks Grow; Coke Production Fairly S te a d y With the strike settlement in the anthracite field the coal industry is again moving at a normal pace. Coal is now available in quantities sufficient to take care of the nation’s requirements and there is a quite general disposition to regard the coal problem as settled for the time being. The United States Geological Survey in its weekly rep o rt on conditions in the coal and coke industry states that production during the week ending Sep tember 8 was maintained a t a high rate in spite of the interruption caused by the observance of Labor Day* The total for the week was estimated at 10,433,000 net tons, a decrease of 1.304,000 tons from the revised figure for the preceding week. Revised estimates of the Survey place the total out put o f soft coal in August at 48,864,000 net tons, in cluding lignite, coal coked, mine fuel, and local sales. This was an increase of 3,738,000 tons over the July production, due partly to a slight increase in the aver age daily rate, but chiefly to the occurrence of more working days in August. The total production of soft coal in the first dgfct months of 1923 was 367,260,000 net tons, irlucti was 18 per cent ahead of the average produc tion during corresponding periods of the nine years 1914- 1922. T h e anthracite mines were completely shut down d a rin g the strike. Operations were limited to river dredging and culm washing with the result that the output for the week ending September 8 was prob ably not more than 5,000 net tons. Shipments, how ever, were considerably larger and included approxi mately 1,000 cars of steam sizes draw n from storage piles. Stocks of soft coal continue to grow and on A ugust 1 it was estimated that commercial consumers had on hand approxim ately 51,000,000 net tons, an increase of about 5,000,000 tons over revised figures for the previous month. Stocks on A ugust 1, 1923, were esti mated to be 10,000,000 tons larger than on August 1, 1921. A month ago we reported that retailers were well supplied with coal and were urging consumers to buy their winter supplies before the fall rush started. This urge is still being sent out. The production of beehive coke in the week ending September 8 showed a small increase over the re vised estimate of the preceding week. Prelim inary estimates based on the num ber of cars loaded on the principal coke carrying railroads place the total for the week at 347,000 net tons, against 333,000 in the preceding week. The production of by-product coke declined slightly during August. The total output is estim ated at 3,239,000 net tons, a decrease of 28,000 tons from the revised figure for July. S ta te m e n t o f B itu m in o u s Coal loaded in to Vessels (as D u m p e d by Docks) In N et Tons For the M on th o f A u gu st, 1923, as c o m p ared w ith the sam e period for the Seasons o f 1922-1921 Ports Toledo C onneaut Erie Cargo 1922 F uel T o ta l Cargo 1921 F uel T o ta l 677,705 21,173 698,878 254,345 11,515 265,860 615,058 17,402 632,460 6,211 16,752 16,358 8,194 30,082 36,883 3,412 11,232 37,297 15,871 40,814 13,762 197,590 583,256 521,150 219,073 573,443 285,192 70,246 174,259 439,825 329,162 427,731 98,086 772 37,430 125,927 5,020 254,390 23,674 2,231 5,791 15,032 8,078 52,486 22,473 38,202 130,947 278,064 8,022 23,110 74,959 164,647 4,219 318,433 10,002 222,047 6,920 245,377 7,530 385,341 16,794 265,454 12,871 34,697 1,954 168,866 328,435 228,967 252,907 402,135 278,325 36,651 13,308 4,695 24,809 23,627 41,707 6,633 11,386 18,003 48,436 48,340 11,386 84,716 10,038 203,437 7,580 244,575 3,953 148,319 9,088 94,754 211,017 248,528 157,407 4,359,850 258,041 4,617,891 825,225 120,104 945,329 2,932,101 108,351 3,040,452 191,379 566,504 504,792 210,879 543,361 248,309 66,834 163,027 402,528 313,291 386,917 84,324 For Season to End of A u gust REVIEW Hocking V alley .......... 2,992,191 90,429 3,082,620 1,746,575 47,846 1,794,421 2,964,611 78,923 3,043,534 N. Y. C.— Ohio Cen 811,064 22,425 833,489 772 38,202 1,008,393 31,639 1,040,032 37,430 tral L in es................ Baltim ore & Ohio.. . . 1,799,619 53,101 1,852,720 1,775,250 45,936 1,821,186 1,684,130 48,591 1,732,721 Sandusky P en n sy lv an ia.............. 1,903,616 58,689 1,962,305 1,230,372 51,553 1,281,925 1,022,312 28,999 1,051,311 15,968 1,265,489 33,712 1,299,201 929,100 34,780 13,403 2,565 H uron Wheeling & Lake Erie 963,880 2,055,327 116,176 2,171,503 32,852 24,147 56,999 1,980,137 75,192 2,055,329 Lorain Baltim ore & Ohio.. 142,307 1,577,958 57,749 1,635,707 97,291 45,016 Cleveland P en nsylv ania.............. 1,155,136 120,378 1,275,514 310,858 10,402 542,678 24,061 E rie ............................... 566,739 321,260 489,935 43,940 Baltim ore & O h io ... . F airport 533,875 64,477 901,756 43,633 A shtabula New York C entral. . . 2,256,891 158,990 2,415,881 44,391 20,086 945,389 95,536 1,732,874 55,739 1,788,613 P ennsy lvania.............. 1,333,344 58,592 1,391,936 55,201 40,335 99,846 7,840 107,686 836,695 11,396 C onneaut Bessemer & Lake Erie 1,781,915 139,319 1,921,234 848,091 395,920 53,604 449,524 71,141 P en nsylvania.............. 28,607 42,534 859,879 44,747 Erie 904,626 T o ta l.......................................... 18,644,065 983,698 19,627,763 5,161,218 328,630 5,489,848 15,947,763 511,508 16,459,271 N ote: Tonnages cover coal line hauled into ports by railroads as shown. Toledo BUSINESS T otal T o ta l MONTHLY F airport A shtabula H ocking V alley .......... N. Y. C.— Ohio Cen tral L in e s................ Baltim ore & O h io . . . . P en n sy lv an ia.............. Wheeling & Lake Erie Baltim ore & O h io .. .. P ennsylvania.............. E rie ............................... Baltim ore & O h io .. . . New Y ork C entral. . . P en n sy lv an ia.............. Bessemer & Lake Erie P en n sy lv an ia.............. 1923 Fuel C argo THE Sandusky H uron Lorain Cleveland R ailroad s THE MONTHLY BUSINESS REVIEW 13 D ebits to In dividu al A ccounts Week Ending Sept. 12, 1923 (324 Banks) Akron................. . $ 16,758,000 Butler, P a.......... 2,884,000 Canton............... 11,078,000 Cincinnati.......... 69,254,000 Cleveland........... 143,569,000 Columbus........... 38,101,000 Connellsvilk 1,548,000 D ayton............... 19,067,000 Erie..................... 7,810,000 Greensburg......... 5,192,000 Homestead......... 900,000 Lexington, Ky 4,228,(XX) lim a ................... 4,284,000 Lorain................. 1,644,000 Middletown*.. 2,347,000 New Brighton. 2,805,000 Oil C ity ............ 2,738,000 Pittsburgh........ 163,252,000 Springfield 5,681,000 Toledo............... 40,902,000 Warren, 0 4,460,0(10 Wheeling 10,047,000 Youngstovv n 16,003,000 Zanesville......... 3,181,000 Week E nding Increase or Decrease A m ount Per C ent Aug. 15, 1923 (322 Banks) $ 2,202,000 15. 1 $ 14,556,000 401,000 16. 1 2,483,000 2,270,000 25. 8 8,808,000 8,746,000 14. 5 60,508,000 2,589,000 1. 8 140,980,000 3,254,000 9. 3 34,847,000 210,000 15. 7 1,338,000 5,977,000 45. 7 13,090,000 405,000 7,405,000 5. 5 1,307,000 3,885,000 33. 6 4,000 - - 0. 4 904,000 -307,000 7. 8 3,921,000 786,000 3,498,000 22.,5 229,000 16. 9 1,415,000 296,000 14 .4 2,051,000 188,000 7 .2 2,617,000 272,000 11 .0 2,466,000 170,396,000 -— 7,144,000 - - 4,.2 1,520,000 36 .5 4,161,000 2,932,000 37,970,000 7 .7 943,000 26 .8 3,517,000 1,132,000 12 .7 8,915,000 2,081,000 14 .9 13,922,000 474,000 17..5 2,707,000 Total........... . $577,733,000 $31,373,000 $546,360,000 *Debits for corresponding period 1922 not available. 5. 7 W eek Ending Increase or Decrease Sept. 13, 1922 A m ount P er C ent (323 Banks) $ 14,549,000 $ 2,209,000 15. 2 2,493,000 391,000 15. 7 8,921,000 2,157,000 24. o 64,756,000 4,498,000 6. 9 132,666,000 10,903,000 8. 2 32,443,000 5,658,000 17. 4 1,576,000 ■ — 28,000 - - 1. 8 12,053,000 7,014,000 58. 2 5,916,000 1,894,000 32. 0 4,830,000 362,000 7. S 133,000 767,000 17. 3 5,000 0. 1 4,223,000 996,000 30. 3,288,000 495,000 43.,1 1,149,000 2,402,000 2,887,000 — 155,861,000 6,237,000 — 35,473,000 3,635,000 8,016,000 14,153,000 2,859,000 $521,153,000 403,000 16 .8 149,000 - - 5 o 4 .7 7,391,000 556,000 - - 8 .9 5,429,000 15 .3 22 .7 825,000 n 2,031,000 25 . O 1,850,000 13 .1 322,000 11 .3 $54,233,000 10. 4 M ovem ent of Livestock a t P rincipal C enters in F ou rth Federal Reserve D istric t for M o n th o f A u gu st, 1923-1922 Sheep 1922 1923 1922 1923 1922 C in cin n a ti. 82,760 78,723 108,451 23,674 26,195 Cleveland 77,687 22,463 29,854 10,792 12,345 Columbus 78 171 3,737 90 45 D ayton.......... 976 969 10,352 2,091 1,969 Fostoria* 6,116 1,837 747 Marion.......... 486 158 5,881 374 4,725 124 Pittsburgh 214,156 187,151 131,369 147,134 4 4,19 6 60,571 Springfield 1,850 4,649 846 810 2,885 245 Toledo........... 7,670 1,537 834 1,128 7,449 791 Wheeling. 902 1,030 1,191 1,144 511 481 Purchases for Local Slaughter Cincinnati 12,570 9,872 48,516 61,986 15,052 13,567 Cleveland. 17,662 17,189 52,885 54,872 9,210 11,047 Columbus. 706 78 21 242 87 Fostoria* 10 295 26 Marion.......... 7 2,726 154 2,677 59 Pittsburgh 12,075 12,215 44,036 32,699 6,835 6,775 Springfield 69 420 278 314 318 111 Toledo. • 9 917 1,666 *No report received for August, 1923. Cattle Hogs 1923 98,207 68,366 4,987 11,991 Calves 1923 1922 14,977 12,171 14,140 11,387 76 108 991 767 532 190 160 38,702 37,216 245 203 714 357 2,687 1,273 6,151 13,595 60 169 9,239 44 568 Cars Unloaded 1923 1922 2,267 2,306 1,438 1,633 14 4,857 5,4-10 17 8 5,438 10,702 61 33 162 8,622 30 Wholesale Trade Percentage Increase (or Decrease) in N et Sales During A u g u st, 1923, as C om pared w ith J u ly , 1923, a n d A u gu st, 1922 D ry Goods H ardw are D rugs N e t S ales (selling price) during August, 1923, com pared with July, 1923.............. ..................................................................... Digitized FRASER N e t Sfor ales (selling price) during August, 1923, com pared with http://fraser.stlouisfed.org/ A ugo»t, 1922................................. : ........................................... Federal Reserve Bank of St. Louis Groceries 46.1 —3.1 7.1 3 .6 25.0 7.7 14.3 5 .2 THE M O N T H L Y B U S I N E S S REVIEW 14 C om parative S ta te m e n t o f Selected M em ber B anks in Fourth D istrict Sept. 12, 1923 (81 Banks) Aug. 15, 1923 Increase (82 Banks) Loans and D iscounts sccured by U. S. G overn 30,342,000 $ 29,422,000 $ 920,000 $ m ent o b ligations.................................................. $ Loans and D iscounts secured by other stocks and b o n d s....................................................................... 399,182,000 399,865,000 ............ Loans and D iscounts, all o th e r................................ 696,592,000 700,521,000 U. S. P re-W ar B o n d s.................................................. 47,829,000 47,822,000 7,000 U. S. L iberty B onds.................................................... 116,604,000 116,767,000 U. S. T reasury B onds................................................. 4,913,000 5,455,000 U. S. T reasury N o tes.................................................. 56,825,000 58,137,000 U. S. Certificates of In d eb ted n ess.......................... 6,871,000 7,358,000 O ther Bonds, Stocks, and S ecu rities...................... 298,257,000 298,107,000 150.000 T o tal Loans, D iscounts, and Investm ent s ........... 1,657,415,000 1,663,454,000 R eserve w ith Federal R eserve B a n k ...................... 111,273,000 105,459,000 5,814,000 C ash in V a u lt................................................................ 33,267,000 32,522,000 745.000 N et D em and D ep o sits................................................ 919,827,000 922,367,000 T im e D ep osits............................................................... 595,334,000 580,496,000 14,838,000 G overnm ent D ep o sits................................................. 5,588,000 7,522,000 .............. T o tal Resources on d ate of this re p o rt.................. 2,104,176,000 2,094,918,000 9,258,000 Decrease 683.000 3.929.000 ' 163,666 542.000 1.312.000 487.000 6, 039,666 2.540.000 1.934.000 B uilding O perations for M o n th o f A u gu st, 1923-1922 P erm its Issued New C onstruction A lterations 1923 1922 1923 1922 255 155 74 64 A k ro n ........... C a n to n ......... 199 168 73 55 C in cin n ati... 365 404 244 298 C lev elan d * .. 784 690 1,265 893 C o lu m b u s... 536 463 146 119 D a y to n ......... 215 218 118 111 E rie ............... 94 97 44 29 L e x in g to n ... 48 52 39 50 P itts b u rg h .. 434 496 123 94 S p rin g field .. 85 76 21 15 T o led o.......... 404 267 227 208 W h e e lin g .... 63 88 42 41 Y oungstown. 179 134 31 31 N ew C onstruction 1923 1922 $ 435,245 $ 602,945 325,785 433,512 1,129,550 2,165,950 5,532,740 6,712,358 1,891,880 2,558,695 717,103 2,248,352 179,239 291,135 54,970 82,905 2,723,723 2,812,888 95,390 94,345 1,005,647 1,123,154 152,803 245,108 373,220 374,875 V aluation A lterations Increase or D ecrease 1923 1922 A m ount P er C ent $ 31,335 $ 22,525 - $ 158,890 — 25 4 186,969 48,260 30,982 6 4 339,245 434,700 - 1,131,855 — 43 5 1,429,925 1,048,396 798,089 — 10 3 412,420 335,405 589,800 — 20 4 120,902 123,317 - 1,533,664 — 64*7 126,607 124,251 109,540 — 26 A 28,555 66,584 — 65,964 — 44 1 148,914 258,591 198,842 — 6*5 16,910 10,275 7,680 7*3 338,811 163,918 57,386 4'5 51,493 20,240 61,052 — 23 0 23,930 115,970 93,695 — 19.* 1 T o t a l ... 3,661 3,308 2,447 2,008 $14,617,295 $19,746,222 $3,256,016 $2,772,432 $-4,645,343 — 2 0 .6 *Includes figures for E ast Cleveland, Lakewood, Cleveland H eights, and Shaker H eights. D e p a rtm e n t Store Sales (1) (2) Percentage o f Increase or Decrease Comparison of net sales with Stocks a t end of month comthose of corresponding period pared with last year a b a No. of A ugust Ju ly 1 R eports to Aug. 31 A k ro n ........................ 3 8 .4 7 .2 12.7 17.0 C a n to n ...................... 3 C in cin n ati................ 8 15.6 12.3 5 18.1 16.8 C lev elan d................. C olum bus................. 4 22.5 2 2 .7 D a y to n ...................... 4 10.0 9 .8 P itts b u rg h ................ 7 24.5 19.4 T o led o ....................... 4 3 4 .9 3 9 .6 Y oungstow n............. 3 4 3 .8 3 2 .7 D istrict. . . . 43* 21.7 19.0 U .S . A verage.......... 13.1 12.0 ‘ Includes tw o reports from other cities. A ugust 1922 11.5 4 .5 4 .3 16.1 30.3 16.4 15.9 3 2 .4 2 0 .6 16.2 11.0 B July 1923 2 .5 — 0. 8 4 .9 4 .6 14.0 11.1 6 .5 26.3 5 .2 7.5 7 .2 o (3> (4> Percentage of » Percentage of average stocks o u t s t a n d i n g at end of each orders a t end of month from August, 1923, to July 1 to total purchases August 31 to during calendar a v e r a g e year 1922 monthly sales over same period 519.2 693.8 532.7 362.2 346.9 461.6 422.1 436.4 278.4 422.4 469.0 9.7 ii!o 11.6 6.0 11.8 10.5 7.9 12.9 10.7 10.1 THE MONTHLY BUSINESS REVIEW 15 S u m m a ry of Business a n d C redit Conditions in the U n ited S ta te s By th e Federal Reserve Board W ****' i 1 i ! s \ y C J i K ' i P f J | i i 7 ~ ' [ ; 1 — S 8T-J The volume of merchandise distributed during August, as indicated by railway traffic and wholesale and retail trade, was large. Production of certain basic commodities and industrial employment showed further slight decreases. ! H D V 3T l h € 3 ' j | | J — J- - - - - - - - - , L ... J , PR O D U C TIO N The Federal Reserve Board’s index of production in basic industries de clined 2 per cent during August, and was at the lowest point for this year. The August output, however, was 27 per cent larger than a year ago and pro duction in every month this year has been at a higher level than in any month of the previous five years. Lower production index in August reflected reduced output, after a correction for the usual seasonal trend, of pig iron, woolen goods, flour and cement. Cotton consumption, sugar meltings, lumber cut, and bitumi nous coal production increased. The number and value of new building projects as measured by permits granted in 168 leading cities, increased during August, but actual contract awards were smaller than in July. Employment at industrial establishments throughout the United States was slightly smaller in August, while average weekly earnings advanced about 1 per cent. Increases in wages amounting to 10 per cent were granted to anthracite coal miners, readjustment of wages and hours in the steel industry continued, but wage advances during August were fewer than in any month since last winter. The principal changes in crop estimates shown by the September 1 fore cast of the Department of Agriculture were a large reduction in the expected cotton crop, slight decreases in the probable yield of wheat, barley, and oats, and increases of yields of corn, tobacco, and potatoes. TR A D E Railroad freight shipments were larger in August than in any previous month on record. This was due to seasonal increase in shipments of coal, mis cellaneous merchandise, and agricultural products. Wholesale trade, according to the index of the Federal Reserve Board, increased 12 per cent in August which is more than the usual seasonal increase, and sales were the largest of any month in three years. Sales of clothing, dry goods, and shoes showed substantial gains as compared with July and were larger than a year ago. Re tail trade also increased in August and sales in all reporting lines were larger* than in August, 1922. Department store sales in all sections of the country averaged 12 per cent above last year’s level. PR IC ES The general level of wholesale prices, according to the index of the Bureau of Labor Statistics, remained relatively constant in August, the change for the month being a reduction of less than one fifth of one per cent, compared with declines of about 2 per cent in each of the three preceding months. Prices of building materials, house furnishings, and fuel were materially reduced, while prices of farm products and foods increased. Prices of certain raw materials, particularly cotton and silk, advanced substantially during September while prices of petroleum and copper declined. BANK C R E D IT After a decline during July and the first part of August the volume of bank credit in use showed a seasonal increase during the last week of August and the first two weeks of September. Total loans and demand deposits of member banks in principal cities increased during recent weeks, reversing the trend of the preceding two months. Loans chiefly for commercial and agricultural purposes increased by $122,000,000 and reached a higher point for the year. Investment holdings of these banks, on the contrary, continued to decline and on September 12 were lower than at any time since the middle of October of last year. Between August 22 and September 19 the amount of accommodation ex tended to member banks by Federal Reserve banks in industrial districts de clined, while in agricultural districts the seasonal demand for credit and cur rency resulted in a considerable growth of reserve bank credit in use. The demand for currency arising out of crop moving and fall trade has been reflected in an increase of $82,000,000 in money in circulation between August 1 and September 1. Of this amount about $44,000,000 represents an increase in Federal Reserve note circulation. Money rates were firmer diving the first two weeks of September, but eased somewhat after the fifteenth, partly because government disbursements were temporarily in excess of tax collections. The Treasury issued on September fifteenth $200,000,000 of six months’ certi ficates bearing 4*4 per cent interest, compared with 4 per cent borne by six months’ certificates issued in June. FOURTH FEDERAL RESERVE D IS T R IC T r h s y l v a n i a % \ *• r\ I CENTu «£-----r ------ 80UNDA&Y O f D ISTR IC T mmmm BOUNDARIES OF BRANCH TERRITORIES — . . — BOUNDARIES OF S T A T E S ® F E D C U L RESERVE BANK. O FEDERAL RESERVE BRANCH C IT Y C IT IE S
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