The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MONTHLY BUSINESS REVIEW
Covering financial, industrial, and agricultural conditions
in the
Fourth Federal Reserve District
Federal Reserve Bank of Cleveland
Vol. 8
Cleveland, Ohio, October 1, 1926
With the opening of the fall season, financial, manu
facturing1, and agricultural conditions in the Fourth Dis
trict have all been favorable, this situation being un
usually widespread. Credit conditions are thoroughly
sound, the banks having ample resources to handle the
usual seasonal requirements. In agriculture, improve
ment has taken place in corn, the chief crop of the Dis
trict, and the September crop report indicates that Ohio
leads all other states in the yield per acre for the second
successive year. The wheat, tobacco, and fruit crops
are also good. In manufacturing industries, iron and
steel operations continue at a high level; betterm ent has
occurred in coal, rubber and tires, clothing, and shoes; and
in paint and various miscellaneous lines, business is most
ly normal or above. In distribution, retail trade as
measured by department store sales made a 5 per cent
gain in August over last year. Building still lags be
hind 1925, but August permits declined only 8 per cent,
as compared with 15 per cent for the first seven months.
In most sections of the District, the
supply of credit continues to be suf
ficient for fall demands at moderate
rates and with but little recourse to rediscounting at
this bank. On September 15, discounts for member
banks totaled only 44 millions, as compared with 69
millions a year ago. This is in sharp contrast to the
country at large; the 12 Federal reserve banks com
bined held 566 millions of discounted bills on September
15, as compared with 488 a year ago, or an increase
of 16 per cent, as compared with a decrease of 36 per
cent in the case of the Cleveland bank. In some of
the agricultural sections of the District borrowing is
reported to be heavy, but this is to be expected at this
time of year. Interest rates in general have changed
very little recently.
Total loans, discounts and investments of 75 large
city member banks in the Fourth District were $2,040,142>OM on September 15, an increase of 1.3 per
cent for the month and of 5.9 per cent for the year.
Most of the increase is due to the growth of loans se
cured by stocks and bonds. Demand deposits on the
same date were $1,084,000,000, and time deposits $821,000,000. Both of these items rose about 8 per cent from
a year ago, but for the month demand deposits increased
2 per cent while time deposits remained practically un
changed.
Debits to individual accounts in 23 cities in the Dis
trict for the four weeks ending September 15 increased
0.2 per cent over last year. Several cities gained sub
stantially, among them Connellsville, Erie, Homestead, and
Springfield. The largest declines were in Akron, Greensburg, Steubenville, Lima, and Lorain.
Savings deposits of 70 large banks amounted to
$908,991,749 on August 31, a gain of 1.2 per cent over
July 31 and of 5.3 over last year.
Commercial failures in the Fourth D istrict in Au
gust numbered 138, as against 153 a year ago and 137
in July. Liabilities were $2,651,989 in August, 1926,
and $4,871,170 in 1925. In the United States, there
were 1,593 failures in August, 1,605 in July, and 1,513
a year ago.
Financial
Conditions
No. 10
Gold reserves ..................
Discounts ........................
Acceptances .......................
U. S. Securities ............
Total bills and securities
Federal Reserve notes in
circulation ....................
Total deposits ....................
Loans secured by stocks
and bondB ....................
All other .............................
Total loans .........................
Investments ....................
Demand deposits ..............
Time deposits ....................
Iron
and Steel
Federal Reserve Bank
Federal
of Cleveland
Reserve System
(In Millions)
{In Millions)
Sept. Sept. Aug. Sept. Sept. Aug,
15,
16,
18,
15,
16,
18,
1926 1925 1926 1926 1925 1926
293
290
297 2,833 2,773 2,834
44
69
40
566
488
535
25
18
25
262
212
254
43
31
38
488
409
360
112
119
103 1,820 1,119 1,152
207
225
19S 1,724 1,677 1,686
193
180
196 2,417 2,230 2,272
Reporting Member Banks
Fourth District
United States
(In Millions)
(In Millions)
Sept. Sept. Aujr. Sept. Sept. Aug.
15,
16,
18, 15,
16,
18,
1926 1925 1926 1926 1925 1926
572
492
558 5,582 5,124 5,459
815
792
815 8,735 8,474 8,606
1,387 1,284 1,873 14,816 18,598 14,066
654
642
642 5,655 6,464 5,620
1,084 1,009 1,064 13,274 12,965 12,845
821
752
822 5,684 5,185 5,788
The two most notable developments
in the iron and steel industry during
the past month have been the marked
increase in the production of ingots and the growing
firmness in the undertone of prices. Production has
expanded as a result of maintained demand for steel
from a multitude of miscellaneous consumers in ad
dition to which has come quickened demand from a
2
THE MONTHLY BUSINESS REVIEW
number of important consumers. The approach of fall
has stimulated buying from a variety of sources in
cluding the automobile and farm implement industries.
As a result of the upward turn in output of steel
ingots in August, the summer of 1926 has now defi
nitely scored as the most active summer in the his
tory of the steel industry. During the three months of
June, July and August, output aggregated 11,406,291
gross tons, a total eclipsing those for the corresponding
months of all other years. The form er record for
these three months was in the war spurred year of
1918 when approximately 11,030,000 gross tons of steel
were made. During the first eight months of 1926, ingot
production amounted to 31,916,175 gross tons compared
with 28,888,541 gross tons in the corresponding period
of 1925. The gain this year was 10.5 per cent. Op
erations of steel mills during this year have averaged
85.87 per cent of theoretical capacity. This compared
with 80 per cent of capacity operations in the corre
sponding period of 1925. In August, the rate of ingot
production per day reached 154,022 gross tons, being
the highest for any August in the history of the
country. Operations averaged 85.78 per cent of ca
pacity. For 1926 to equal the total ingot production
of 1925, average operations during the next four months
would not have to exceed 65.5 per cent.
The precedence of good buying during recent weeks
indicates that the industry actually has not made any
wide departure from the extended practice of hand-tomouth buying and the preponderance of evidence is
that steel production is still going promptly into consump
tion with no endangering accumulation of surplus stocks.
The lack of heavy future buying is seen in the drop of
unfilled orders of the United States Steel Corporation in
August by 60,000 tons. This was significant only in
showing that shipments during the month exceeded new
bookings. The decline in orders in August was the
smallest recession reported for any month this year.
One of the most interesting phases of the steel situa
tion at the moment is that of prices. During Septem
ber it seemed evident that producers would be able to
hold prices for contracts placed for fourth quarter.
Advances were made in automobile sheets of about $2
per ton and new differentials are in effect on black
and galvanized sheets, making advances of from $1
to $3 per ton on light gages and a reduction of $1 to
$7 per ton on heavy gages. Because of the acceptance
by buyers of firmer quotations in the recent past and
the continued inflow of large scale business, producers
are more confident than in many months of being able
to maintain quotations at a more profitable level. IRON
TRADE REVIEW composite of fourteen leading iron
and steel products reflects the firmness which has crept
into the long, ragged price situation. As of September 15,
the index stood at $37.78, compared with $37.61 one
month ago and with $37.35 one year ago.
During August, production of pig iron as compiled
by IRON TRADE REVIEW was at the daily average
rate of 103,249 tons compared with 104,021 tons in
July and 87,328 tons in August 1925. Furnaces in blast
at the end of August showed a loss of two, the total
number on the active list being 215 against 217 one
month previously and compared with a total number
of serviceable furnaces in the country of 372. This
represents 57.8 per cent of the total number of service
able furnaces against 58.4 per cent one month ago
and compared with a theoretical normal of 60 per cent.
Coal
Increasing exports of coal to England
have been accompanied by advancing
prices, the Coal Age composite price
of bituminous standing at $2.07 on September 10, as
compared with $2.04 the preceding week and $1.96 on
August 13. Prices of soft coal are still somewhat be
hind a year ago, but on some grades are higher than
at any time since last February. For the four weeks
ending September 4, soft coal production in the coun
try showed only the usual seasonal rise, in spite of
the improved tone of the market. As a result, indica
tions are that industrial stocks are comparatively low.
The latest report of the National Association of P u r
chasing Agents (August 1) shows industrial stocks
at a lower level than at any time during 1924 and 1925.
In the Fourth District, warm w eather during th e
first p art of September kept down w inter orders by
householders, but, allowing for seasonal factors, dealers
report satisfactory business and a somewhat better
outlook.
Rubber
and Tires
Tire manufacturers experienced a
heavy volume of business in August.
Production schedules were increased
until Akron factories were operating at capacity, in
response to a strong demand. Prelim inary figures indi
cate a marked increase in the production of inner tubes
during August as compared with July, accompanied
by an even greater gain in shipments. This m eans
a further reduction of stocks in m anufacturers' hands
during August, probably greater than seasonal, and m arks
the third successive monthly decline from the abnor
mally high stocks at the end of May.
A fter allowing for seasonal slackening, business has
held up well during the first part of September. The
comparative stability of crude rubber prices is a favor
able factor in the present situation; a year ago erratic
price fluctuations were frequent, while the existing
price of about 40 cents a pound has continued for the
last three months with but little variation. It should
be added, however, that there is a possible element of
future instability in that the present British law pro
vides for a 20 per cent reduction of crude rubber ex
ports if the average price is below 21 pence a pound
in the quarter ending October 31.
The Department of Commerce has recently prepared
1925 statistics on the rubber industry, and puts the
total output of rubber tires and inner tubes in the
United States at $925,000,000, as compared with $644
000,000 in 1923. Ohio was far in the lead, both in the
number of wage earners and the value of products* in
fact, 60 per cent of the entire country’s wage earners
THE MONTHLY BUSINESS REVIEW
in
tire industry were in Ohio. Detailed statistics
3
Further weakening in woolen goods prices took place
during the month, but raw wool changed very little.
1925
Ohio
Pennsylvania Total U. S. Cotton and cotton goods strengthened slightly after
Number o f establishments ............
44
11
126
50.350
3,065
81,670
Wage earners ....................................
their previous decline, but remained m aterially below
Wages ................................................. $76,491,597
$3,838,509
$120,614,081
last year. Silk rose from $5.92^ a pound on August
Cost o f materials ........................ $330,554,798
$16,157,323
$559,939,811
Value of products ........................ $556,262,424 $25,784,062 $925,032,833 13 to $6.15 on September 10.
Horsepower .........................................
219,341
18,090
403,227
Sales of 17 reporting wholesale dry goods firms in
the
Fourth District in August ran behind last year, as
Automobiles
August production of passenger cars
usual.
The loss for the month was 3.8 per cent, and
and trucks in the Unit d States showed
for the first eight months was 5.6 per cent. Stocks
a large increase over last year. The
on August 31 were down 9.8 per cent from last year,
figures for August a year ago, however, were unusually
and open book accounts up 1.4 per cent.
low, owing to curtailment of factory operations in con
Sales in ready-made clothing departments of depart
nection with new models. Cars produced during the
ment
stores in August were nearly all larger than a
past month numbered 379,111, as against 216,087 a
year ago. Men’s clothing gained 10.2 per cent, boys’
year ago, and trucks, 45,283 as compared with 36,364.
wear 3.5, women’s dresses 8.9, furs 21.2, juniors’ and
The total output was 424,394, the fourth month in
1926 to exceed the 400,000 mark, and the third highest girls’ ready-to-wear 6.7, misses’ ready-to-wear 2.2, hos
iery 6.0, knit underwear 23.4, muslin and silk under
month of the year to date, only March and April be
wear 19.1, infants’ wear 4.8, petticoats 37.6, and aprons
ing higher.
Production of cars in the United States for the first and house dresses 26.2. Sweaters and waists and blouses
eight months of 1926 amounted to 2,765,369, and that showed decreases of 15.1 and 17.4 per cent respectively.
of trucks to 339,383. Last year’s figures were 2,431,202
and 305,503, respectively.
Shoes
Improvement continues in the shoe
industry in this District. Both whole
sale and retail sales in August were
Paint
R eports from a number of large paint
manufacturers in the Fourth District ahead of last year by considerable margins. Factories
indicates that business is normal or have been engaged in turning out new fall styles. Or
ders have been maintained at a high level, although most
better. In one case, activity has increased materially
ly for immediate delivery, and one large firm reports
during the summer months, with an absence of the usual
the largest August shipments in years. Activity fell
midsummer lull. In another, business is now better
off slightly during the first week in September.
than at any time of the year. All lines of paints and
varnishes are sharing in this activity. The automobile
Sales of reporting wholesale shoe firms in August
lacquer trade continues excellent. Prices appear to
were 12.3 per cent ahead of a year ago, and the first
be fairly well stabilized, at least for the present.
eight months of 1926 showed a gain of 8.5 per cent.
Shoe sales in about 50 departm ent stores in the Dis
The outlook for Fall is partly dependent upon the
trict in August gained 5.8 per cent over 1925. The in
amount of building to be done, and this in turn de
crease in women’s and children’s shoes was 4.6 per
pends somewhat upon weather conditions. W ith re
cent, and in men’s and boys’, 7.3 per cent.
spect to the latter, the outlook is better than last year,
for the reason that in this District unusually heavy
Prelim inary production figures for August indicate
rains took place in September and early October a
a gain of about 10 per cent over July in the Fourth
year ago, followed by an early winter. These condi District. Final July figures wTere 7 per cent under
tions interfered with outside painting. This year the
last year.
weather has been favorable for outside work during
the first part of September.
General
Fall business is about normal in most
M anufacturing lines of m anufacture in this District;
Clothing
Fall buying in various lines of cloth
in others, it is better than normal.
ing has been good, in many cases ex Only one or two trades report unsatisfactory conditions.
ceeding that of last year. Customers
Business of glass m anufacturers is stated to be some
are still purchasing only for immediate needs, which
what above normal owing to a strong demand. A gri
has given rise to heavy orders for rush delivery in
cultural implements are being sold at about the usual
some lines. Manufacturers of men’s underwear report
rate—in some cases a little better. Orders have been
that advance orders for spring have been disappoint
somewhat greater than last year in the paper trade.
ing, but that fall business has been very good. Busi
Business in machine tools is good, and is moderately
ness in men's clothing, particularly the well-estab
ahead of 1925, which wTas also a good year. Stove
manufacturers in Cleveland are operating on a normal
lished lines, compares favorably with last year. Orders
for knit goods have been coming in above normal, all
scale, with general conditions satisfactory. Inquiries for
for immediate shipment. In women’s dresses, book
electrical supplies are becoming more numerous, collec
ings exceed those of a year ago, and the outlook is
tions are good, and business running ahead of last
satisfactory. Business in the worsted lines is reported
year. Low prices and overproduction have hampered
to be fair.
the boxboard trade, conditions during the last few
the
are as follows:
4
THE MONTHLY BUSINESS REVIEW
months have been unsatisfactory, although a recent in
crease in the price of raw materials was a favorable de
velopment.
Agriculture
Potatoes show an increase of 27.2 per cent over last
year's crop, but the acreage was 8 Yz per cent greater
than a year ago. The condition of the crop is consider
ably lower than the 10-year average.
Ohio
—According to the September
forecasts of the State Department of
Agriculture, Ohio will again lead the
country in the yield of corn, the prospects having in
creased by ten million bushels in the past month. Pres
ent indications are for a total crop of some 138,000,000
bushels. The continued growing weather has permitted
the late planting to m ature and in the southern portion
of the state considerable cutting has already been done,
and in other sections all danger from early frosts is past.
Probabilities are, however, that there will be more than
the usual amount of soft corn, owing to the late plant
ing in many parts of the state.
Oats —Threshing has been greatly retarded in central
and southwestern Ohio by excessive rainfall, p art of the
crop being lost. The estimates of the Department of
Agriculture show a decrease of about 25 per cent from
last year.
Potatoes —Potato prospects have improved considerably
in the past month, the present estimate for the state
standing at 10,822,000 bushels. The estimate for the
country at large shows an increase of 25,000,000 bushels,
but is still 45,000,000 below an average crop.
Pennsylvania
Corn —The rains of the latter p art of August greatly
improved the condition of the crop, but the official es
tim ate of 61,600,000 bushels is still 6 per cent below the
average for the past five years. In the northern part of
the state the crop will not be properly dried before the
end of September, and the sappy condition is proving
quite a problem.
Oats—Prospects for a bumper crop of oats were com
pletely upset by the wet weather which seriously inter
fered with harvesting and threshing. Total production is
about 3 per cent below the 5-year average.
Potatoes —Total estimated yield in the state is given
as 23,801,000 bushels, or 5.5 per cent below the 5-year av
erage. Blight and rot played havoc with many fields, the
early planting showing the greatest loss.
Kentucky
Condition of all crops throughout the state is very sat
isfactory. Estim ates of the Department of Agriculture
show an increase of 19.2 per cent in the corn crop, 52.6
per cent in oats, and 30 per cent in Irish potatoes, over
last year’s yield. The estimates on these three crops
for the entire United States are as follows: corn 7.1 per
cent decrease, oats, 16.4 per cent decrease, and Irish
potatoes 7.9 per cent increase.
W est Virginia
Com prospects have improved somewhat in the past
month, but the total estimated yield in the state is still
some 20 per cent below last year.
Oats shows a decrease of slightly more than 3 per cent
in total yield, notwithstanding an increase of 12.8 per
cent in acreage. Here as elsewhere in the District the
loss was caused by continuous rains during the harvest
and threshing season.
Corn
Tobacco
The Kentucky burley crop was dam
aged by rust to some extent in A u
gust and early September, and exces
sive rains were also experienced during this period.
The crop as a whole, however, is still in good con
dition; the quality and yield at present appear to be
above the average, and the latest Government crop re
port (September 1) indicates a probable output of 318 000,000 pounds, as compared with 274,530,000 a year
ago. This report puts burley acreage at practically the
same figure as last year, so that the 1926 yield per
acre has shown m aterial improvement. Estim ated prob
able production of all types of tobacco in Kentucky in
1926 is 381,866,000 pounds, compared with the fiveyear average of 411,890,000 in 1921-1925.
Building
For the fifth successive month, the
value of building perm its in the U nited
States during August was less than for
the corresponding month in the preceding year. P e r
mits in 181 cities reporting to B radstreet’s totaled $314.
138,749 in August, as compared with $341,704,658 a year
ago and $300,000,000 in July. The decrease from last
year was 8 per cent, and for the first eight m onths
1926 ran 5 per cent behind 1925.
In the Fourth District, August perm its in 27 cities
aggregated $25,622,070, a loss of 7.8 per cent from
August, 1925. Large gains occurred in Canton, Cleve
land, Covington, Lexington, Newark, and Pittsburgh,
while m aterial declines were shown by Akron Cin
cinnati, Columbus, Dayton, Erie, Lima, Springfield, W heel
ing, and Youngstown. For the first eight months, the
District decreased 14.2 per cent. The only cities show
ing gains were Akron, Ashtabula, and Youngstown.
Building Operations
August, 1926
(Valuation of Permit#)
August % change
Jan.-Aug.
1926 from 1925
1926
A kron........................... $1,083,684 — 32.5 $11,159 936
A shtabula...................
49,395 + 5.5
846 497
B arberton...................
84,937 — 14.0
581 381
445,298 + 17 .3
3,904 707
C anton.........................
C incinnati...................
2,080,045 — 21.1 19,568*330
Cleveland proper. . .
5,633,875 + 1 4 .0 47,353,725
“
suburbs:
Cleveland Heights
546,830 — 23.8
4,854 317
East Cleveland.. .
78,858 — 63.7
835*961
Euclid......................
178,367 + 5 1 ,4
1,207*158
Garfield H eights..
210,300 — 19.3
1,657 050
Lakewood................
259,035 — 47.0
3 027 239
Parm a......................
190,360 — 7.4
1 207 718
Rocky R iver.........
40,615 + 3.4
*563 535
Shaker H eights. . .
1,326,800 + 4 3 .8
5 224*205
Columbus....................
3,645,100 — 31.6 18,’356*200
Covington, K y.........
632,300 + 534.2
1,700*900
D ayton........................
1,746,033 — 24.6
6,392’,860
Erie, P a.......................
604,275 - 4 1 . 6
3,787,975
Lexington, Ky..........
105,655 + 3 8 .0
1 397 213
Lima ..........................
36,605 — 73.7
1,027* 111
M an sfie ld .................
222,925 + 10 5 .6
2 I P 011
N ew ark.......................
34,045 + 2 3 .8
’312 500
P ittsburgh, P a .........
4,506,070 + 3 5 .0 28,106 466
Springfield..................
78,555 — 33.6
998 784
T o le d o ......................
1,162,518 — 12.1
9,630 190
Wheeling, W. V a.. .
54,450 — 50.7
1,110^65
Young«town..............
585,140 — 46.9
7!l07,692
T otal......................... 25,622,070
7.8— 184,062,526
.% change
* 10,972559,84f8Om+ 1915
3 .7
670,397
679,502
6,297,460
22,332,825
47,902,750
7,194,500
3,001,153
1,287,365
2,490,650
4,986,140
1,251,750
629,162
7,148,255
21,097,400
1,921,150
10,079,868
6,116,102
1,556,789
1,067,271
2.617,895
430,935
29,854,482
1,136,923
12,777,398
2,717,440
6,437,595
214,448,005
+ 2 6 .3
— 14.4
— 38.0
— 12.4
—
1.1
— 32.5
— 72.1
6.2
— 33.5
— 39.3
— 3.5
— 10.4
— 26.9
— 13.0
— 11.5
— 36.6
— 38.1
— 10.3
— 3.8
— 18.2
—27.5
5.9
“—-12.2
— 24.6
—’5 9,1
—
+10.4
— U.2
5
THE MONTHLY BUSINESS REVIEW
The lumber trade in the Fourth District is about normal or a little below.
Business is less than last year, but this
is natural in view of the tremendous amount of build
ing done during the last half of 1925. Some over
production in hardwoods during 1926 has been an ad
verse factor, but recent improvement in the hardwood
trade is reported. Retail yards in the Pittsburgh sec
tion have been buying lightly and carrying small stocks.
Cement production in August for Ohio, W estern Penn
sylvania and West Virginia totaled 1,757,000 barrels, as
compared with 1,810,000 a year ago.
The Aberthaw index of industrial building costs de
clined one point during August, standing at 197 on
September 1. This was the second successive monthly
decrease of one point and was caused by lower prices
of cement and some falling-off in lumber.
Building
Materials
ing losses of more than 15 per cent were woolen dress
goods, 27.7 per cent; women's suits, 68.3; skirts, 19.7;
waists and blouses, 17.4; sweaters, 15.1; musical instru
ments, 34.7.
August in this District is the biggest month in the
year for fur sales, accounting for almost 20 per cent of
the year's business. The gain over last year in this
departm ent of 21.2 per cent is therefore particularly
noteworthy. A ugust is also the second largest month for
furniture sales, which gained 5.2 per cent over last
year.
Sales of wholesale hardware, drugs, and
shoes in August increased over Au
gust, 1925, but those of groceries and
dry goods declined. There was a particularly large gain
in the case of shoes—12.3 per cent. For the first eight
months, drugs and shoes increased and the others de
Retail
Sales of 68 departm ent stores in Au- creased.
Trade
gust gained 4.9 per cent over August,
This bank's index number of sales of 101 wholesale
1925. For the first eight months, the firms
in the Fourth District combined (1919-1923-100)
increase was 0.4 per cent. All reporting cities except
stood
at 87 in August, as compared with 86 a year
Akron, New Castle and Wheeling shared in the former
gain, particularly large increases occurring in Cin ago, 87 in 1924, 103 in 1923, and 93 in 1922.
cinnati and Dayton. For the eight months, Dayton showed
the largest gain, followed by Cincinnati, Columbus and Mineral Resources According to the Bureau of Mines, the
Youngstown. Both Cleveland and Pittsburgh gained for
states in the Fourth District rank high
the month, but were slightly behind 1925 for the eight of the Fourth
D istrict
in mineral production. Pennsylvania
months' period.
An unusually large number of separate departments in 1924 produced 21.64 per cent of the principal mineral
had greater August sales than a year ago, only 20 out products of the United States, and ranked first. W est
of 52 showing declines. Nearly all of the ready-to-wear Virginia ranked fourth, with 6.57 per cent; Ohio sixth,
clothing lines were higher, in many cases having very with 5.33 per cent; and Kentucky eighth, with 2.58 per
substantial increases. Miscellaneous lines, such as do cent.
mestics, jewelry, unbrellas and parasols, and books and
The following table shows the value in 1924 of the
stationery, also experienced sizeable increases. D epart
principal
mineral products for the United States and the
ments with gains of more than 15 per cent were as
four
states
which fall entirely or partly in the Fourth
follows: umbrellas, 23.6; furs, 21.2; knit underwear,
23.4; muslin underwear, 18.2; silk underwear, 19.2; petti District: (Products not shown separately are included
coats, 37.6; aprons and house dresses, 26.2. Those show in “Total.”)
Kentucky
2,386,557
$* 2,386,557
...............
7,519,239
...............
84,733,000
84,733,000
Wholesale
Trade
Ohio
V ennsylvania West Virginia
Asphalt..........................................................
9,064 $ ................
$$ 9,064
C e m e n t.......................................................
7,836,325 69,693,517
...........
7,836,325
Clay Products............................................
97,831,641 52,167,366
15,625 0”
97,831,641
Coal— A nthracite.......................................
............... ........ 477,230,852
’
62,011,000
Coal—Bituminous...................................
62,011,000 295*164*000 185 y'OOO
Ferroalloys................................................
..............
1,769,077 24,618,060
1,769,077
Gypsum......................................................
"—
5,620,099
Lime.............................................................
9,511,270
58,228
1,884,682
Natural G as................................................
__ }
__ ^___
45,634,806
^68,000,000
wu
3,432,000
24,203,000
45.546.000
769,000
1,148,000
Natural-gas
Gasoline......................'i^
4
8
’o00
*2)266,000
^
1
5
4
000
2,266,000
7,154,000
Petroleum.....................
'14,592,000
‘
............
17,165,000
27.025.000
20,840,000
Sait.................................... ; ; ; ; ; ; ; ; ; ; ;
3,641,585
................
258,089
Sand and Gravel..................................
7,441,659
1,629,973
10,927,752
2,888,833
Stone..............................................
2,786,249
11,280,865
17,966,836
3,040,154
Total, eliminating duplications and
$120,510,775 $249,049,648 $1,011,630,879
United States % Cols. 1-4
to Col. 5
$18,263,346
266,053,267
415,779,378
4 i "6
477,230,852
100.0
1,062,626,000
59.0
43,249,948
42,724,507
39,596,423
'43*2
253,856,000
55.6
82,233,000
13.8
1,022,683,000
7.8
25,747,048
97,013,115
23.6
161,870,113
21.7
$5,305,800,000
6
THE MONTHLY BUSINESS REVIEW
Retail and Wholesale Trade
Percentage Increase or Decrease
SALES
SALES
Aug. 1926 Jan.-Aug. 1926
No. of compared with compared with
Aug. 1925 Jan.-Aug. 1925
Reports
D E PA R T M E N T STORES
— 4 .4
1.3
A kron...................................................... ........ 5
+ 9 .7
3.1
C anton............................................................ 3
+ 13.1
C incinnati.............. ....................................... 7
+ 5.9
+ 2.0
Cleveland....................................................... 6
1.1
+ 7.6
+ 1.4
Columbus....................................................... 7
+ 18.0
+ 1 2 .7
D ayton................................................... ........3
— 5.0
New C astle................................................... 3
— 10.9
+ 5.6
P ittsb u rg h ............................................. ........ 7
—
1.0
+ 0.5
T oledo............................................................. 5
— 1.4
— 7.8
— 4.2
W heeling........................................................ 5
+ 8.8
Y oungstow n.................................................. 3
+ 1.1
+ 8.7
Other C ities......................................... ........ 14
+ 4.9
D istrict........................................................... 68
+ 4.9
+ 0 .4
W EA RIN G A PPA REL
+ 9.7
C incinnati...................................................... 6
+ 4.7
+ 23 .5
Cleveland....................................................... 4
+ 7,6
Other C ities......................................... ........ 9
+ 9.1
+ 1.6
D istrict........................................................... 19
+ 15.2
+ 4.8
F U R N IT U R E
— 16.0
C anton............................................................ 3
— 2.9
C incinnati...................................................... 11
— 10.7
C leveland.............................................. ........ 9
—
1.8
C olum bus.............................................. ........ 16
D ay to n ........................................................... 5
+ 7.8
T oledo............................................................. 6
— 13.3
Other C ities......................................... ........ 9
— 7.6
D istrict........................................................... 59
— 5.9
CH A IN STORES*
Drugs— D is tric t......................................... 3
+ 0.2
+ 4.1
Groceries— D istrict.................................... 5
+ 6.8
+ 0.2
W HOLESALE G RO CERIES
— 9.8
— 5.2
A kron...............................................................3
C leveland.............................................. ........ 4
— 1.7
— 5.0
— 7.3
— 1.5
E rie.................................................................. 4
P ittsb u rg h ......................................................10
— 9.8
— 6.9
T oledo.................................................... .........3
—
— 0.3
8.1
Youngstow n......................................... ........ 3
—
6.8
— 12.1
O ther C ities................................................. 27
+ 3.1
+ 1.2
D istrict................................................... ........ 54
— 2.5
—
2. 6
W HOLESALE DRY G O O D S ...
17
— 3.8
— 5.6
W HOLESALE D R U G S .............................16
+ 6.7
+ 1.3
W HOLESALE H A R D W A R E................. 16
—
1.8
+ 5.9
+ 12.3
W HOLESALE SH O ES............................... 6
+ 8.5
*Sales per individual unit operated.
Index Numbers of Trade in the Fourth Federal
Reserve District
(Average Monthly Salee for the Five-Year Period 1919-1923
inclusive—100)
*
Augu8t August August Aueust
1922
1923
1924
1925
1926
Department Stores (52)*
80
97
86
89
93
Wholesale Drugs (15)* ................ 96
109
102
109
111
Wholesale Dry Goods (16)*....... 100
123
86
84
80
Wholesale Groceries (49)* .......... 89
95
85
84
82
.W holesale Hardware (15)* ....... 96
108
96
93
99
Wholesale Shoes (6)* ................ 73
76
52
62
77
Wholesale— All (101)* ................ 93
103
87
86
87
Chain Drugs (3)*t ........................ 95
107
103
106
106
^Number of firms.
|P er individual unit operated.
Debits to Individual Accounts
(In thousand* of dollars)
4 weeks
1926 to
1925 to
date
date
Sept. 15
(Dec. 31- (Dec.
%
311926 change
Sept. 15)
Sept. 16)
76,234 — 15.1
796,844
738,852
9,392 + 2.9
94,509
92,767
40,811 — 2.1
414,877
409,812
286,344 — 0 .4
3,139,270
2,940,091
609,600 + O.S
6,293,928
5,839,878
133,744 + 2.1
1,360,465
1,220,308
Connellsville, P a ....
5,265 + 29 .1
45,959
39,359
*
77,389
749,953
666,759
34,485 + 13.0
301.916
288,835
Greensburg, Pa........
18,098 — 10.3
176,368
171,749
Hom estead, Pa.........
4,291 + 11.1
39,655
39,203
Lexington, K y..........
16,608 + 1.6
204,036
202,377
14,259 — 9.6
139,944
158,460
6,060 — 9.1
52,693
58,509
Oil City, Pa..............
12,745 — 4.9
121,377
128,572
Pittsburgh, Pa..........
754,548 — 0 .9
7,980,388
7,803,469
Springfield..................
23,185 + 16.2
208,414
185,312
Steubenville...............
9,820 — 21.6
94,512
101,801
T oledo..........................
191,988 + 9.7
1,885,580
1,745,540
W arren.........................
12,994 — 3.8
113,974
115,547
Wheeling, W. V a.. .
38,023 + 2.6
398.917
377,593
Y oungstow n..............
63,324 + 3.0
591,998
575,780
Zanesville....................
10,680 — 0.1
108,365
104,628
T otal...............
2,449,887
+
0.2
25,313,942
24,005,201
*No change.
Fourth District Business Statistics
(All figures are for Fourth D istrict unle#8 otherwise specified.)
August
August
■%
change
1926
1925
Bank Debits (23 cities)
2,808
2,684
+ 4.6
Millions of dollars
Savings Deposits (end of month)
626,827
Ohio (43 banks)
+ 6.7
668,992
Thous. of dollars
“ “
“
236,616
W estern Pennsylvania (27 banks)
239,999
+ 1.4
“ “
“
863,443
+ 5.3
T otal (70 banks)
908,991
153
— 9.8
138
Commercial Failures— Num ber
A ctual Num ber
4,871
—45.6
2,652
Thous. of dollars
“
“ — Liabilities
“ “
“
2,488
+ 8.2
Postal Receipts—9 cities
2,691
“
“
“
86,018
+ 2.1
87,808
Sales— Life Insurance— Ohio and Pa.
“ “
“
19,457
20,295
+ 4.3
“ — Dept. Stores— (54 firms)
“ “
“
— 2.7
7,044
7,241
“ — Wholesale Grocery
(49 firms)
11 “
“
3,493
— 3.8
3,359
“ —
“
Dry Goods — (17 “ )
“ “
“
2,032
1,919
+ 5.9
“ —
“
H ardware — (16 " )
“(< t“< <<
1,771
1,749
+ 1.3
“ —
“
Drugs
— (16 “ )
27,802
25,622
—
7.8
Building Perm its, V aluation— 27 cities
3,196
2,704
+ 18 .2
Thous. of Tons
Production — Pig Iron, U. S.
“
“
“
4,005
3,424
+
17.0
“
— Steel Ingots, U. S.
“
— Automobiles, U. S.
394,111
221,739
+ 7 7 .7
Actual
Passenger Cars
<1 Num««ber
47,683
36,696
+ 2 9 .9
Trucks
19,118
17,530
+ 9.1
Thous. of Tons
“
— Bituminous Coal, 4th Diat.
1,757
1,810
— 2.9
“ “ barrels
“
— Cement: Ohio, W. Va.( Wn. Pa.
1,971*
1,914s
+
3.0*
“
— Petroleum, Ohio, Pa., Ky.
*
*
— 6 .8 a
“ “ pairs
“
-— Shoes, 4th Dist.
3,746’
4,266a
“ “ casings
— 12.2*
— Tires, U. S.
4,093
4,203
— 2.6
“ “ tons
Bituminous Coal Shipm ents (from Lake Erie ports)
7,655
6,228
+ 2 2 .9
Iron Ore Receipts (at Lake Erie ports)
m onths’ average
1 July
Jan.-July
t - ' Confidential
4l iFigures
Jan.-Aug.
1926
23,772
655,014*
237,287*
892,3011
1,420
29,998
23,436
764,021
175,901
54,065
23,671
16,467
14,721
184,063
26,266
31,916
2,893,058
359,554
149,552
9,997
12,961
*
4
27,080*
18,710
24,640
Jinm T
22,577
610,463*
230,3131
840,776*
1,303
31,595
21,631
746,311
176,178
55,665
25,073
16,773
13,800
214,448
24,350
28,898
2,514,863
307,975
134,561
10,047
12,889*
4
28,0133
16,371
24,660
. %
change
+ 7.8
+ 1.9
1.2
+++ 6.8
7.8
+ 11.5
+ 16.8
+ 12.5
+ 4.5
+ 2.7
+ 1.2
+ 0.8
— 11.7
— 9 .9
— 5.6
+ 2.3
+ 12.5
— 7.2
+ 8.0
— 1.4
4- 5.6
+ 2.8
+ 3.6
TT7
%
change
+ S3
+ 7.3*
+
+
+
—
3 . Ox
6 . 1*
9 .0
5.1
+ 8.3
+ 2.4
—
0.2
— 2.9
— 5.6
—
1. 8
+ 6.7
— 14.2
+ 7.9
+10.4
+ 15.0
+16.7
+11.1
— 0.5
+ 0 .6*
—■ 1.5*
— 3 .3 ’
+ 1 4 .3
—
0. 8
THE MONTHLY BUSINESS REVIEW
7
Summary of National Business Conditions
Index of 22 basic commodities, adjusted for
seasonal variation (1919—100). Latest figure,
August—116.
PtftCtNT
PERCENT
(By the Federal Reserve Board)
Industrial activity and distribution of commodities continued in large
volume in August at a level higher than a year ago. The general level
of wholesale prices receded further in August, reflecting price declines for
agricultural commodities.
Production
The index of production in basic industries, which is adjusted for the
usual seasonal variations, declined slightly in August but this decline was
accounted for by the fact that there were five Sundays in August as against
four in July. Textile mill activity and production of steel ingots, zinc, and
petroleum increased, while the output of pig iron, lumber, coal, copper,
cement, and sugar was smaller than the month before. Automobile pro
duction increased considerably in August and was larger than in any month
since April. Factory employment and pay rolls, after declining in July,
increased in August, as is usual at this season of the year. Building activity,
as measured by contract awards in 37 states east of the Rocky Mountains,
was in larger volume in August than in July or in any other previous month
with the exception of August, 1925. In eastern and southeastern states the
volume of building was smaller in August than a year ago, while in the
middle west contracts awarded were larger. Contracts for residential struc
tures were smaller than last year, while those for industrial buildings and
for public works and public utilities were substantially larger.
Trade
Index of U. S. Bureau of Labor Statistics
(1913— 100, base adopted by Bureau). Latest
figure, August—149.2.
Or------ —
Payroll
p\
"N .
V
jlw'ploym
tjTi’
0
FACT<DRY ElSdPLOYMENT
PAYROLL
Af40
1
ol---- -----1___ i _ ....
1922
1925
i
1926
Federal Reserve Board’s indexes of factory
employment and payrolls (1919— 100). Latest
figures* August—employment 94.4, pay
rolls 107.7.
Monthly averages of daily figures for the 12
Federal Reserve Banks.
Latest figures are
averages of first 23 days in September.
Volume of wholesale trade and of sales at departm ent stores increased
in August and retail sales were larger than a year ago. Stocks of dry
goods and shoes carried by wholesale firms were smaller at the end of
August than last year, while those of groceries and hardware were larger.
Inventories of departm ent stores increased in preparation for autumn trade,
but this increase was less than is usual at this season and at the end of
the month stocks were smaller than a year ago. Freight car loadings in
August continued higher than in the corresponding months of previous
years and for the weeks of August 28 and September 4 exceeded all previous
weekly records. Loadings of grain continued large and shipments of mer
chandise in less-than-car-load lots, miscellaneous commodities, ore, and coke
were considerably larger than in the corresponding period of previous years.
Prices
Wholesale commodity prices, according to the index of the Bureau of
Labor Statistics, declined by over 1 per cent in August, reflecting largely
price decreases for grains, livestock, and meat products. Prices of clothing
materials, fuels, and metals increased between July and August, while prices
of cotton, wool, sugar, building m aterials, and rubber showed little change.
In the first half of September prices of grains, cattle, sugar, bituminous coal,
and coke advanced while prices of raw cotton, silver, and bricks declined.
Bank Credit
Increased demand for bank credit in connection with the harvesting and
m arketing of crops and autumn trade, together with an increase in loans on
securities, was reflected in a considerable growth between the middle of
August and the middle of September in loans of member banks in leading
cities. The banks’ holdings of investments also increased, though there was
a decrease in investments at banks in New York City, and total loans and
investments on September 15 were larger than at any previous time.
The volume of reserve bank credit increased by about $90,000,000 be
tween August 18 and September 22, partly in response to seasonal demands
for currency. Discounts for member banks rose in September to the high
est figure for the year, and acceptance holdings also increased, while United
States securities declined by about $55,000,000.
Money rates continued to rise in September. Rates on commercial paper
advanced by one-fourth per cent to 4%-4% per cent, and rates on security
loans also averaged higher than in August.
Index of National Business Conditions
The base (100) for all the charts except the first is the monthly average for the 5 years 1919-1923 inclusive.
For the first chart, the base is the monthly average for the three years 1921-1923.
VOLUME OF CHECK PAYMENTS
percent.
200
200
ISO
150
yv
100
v v w
'
too
SO
50
O 1921
1922
1924
192S 1926 0
COMMERCIAL FAILURES
.... PERCENT
PtRCENT.
200
J
150
too
1VV ft
200
fl
V 'V. 100
|
jt
kw/
50
50
O
1921
1922
1923
1924 1925 1926
o
EXPORTS
PERcent
>921
COAL
1922
OF
—
9 i3
M E R C H A N D ISE
-ESasem
1954
> 925
PRODUCTION
J tv\ ^V/-\Vf V
I/w
1921
1922
1923 (92*
1925
1926
LATEST FIGURES
1. Member Bank Credit: Loans, August—122. Investments, August 138.
2. Member Bank Deposits: Demand, August—119. Time, August—192.
3. Check Payments, except New York, July—133.
4. Commercial Failures, August—124.
5. Retail Trade, July—88.
6. Wholesale Trade, July—92.
7.
8.
9.
10.
11.
12.
Building Permits, August— 189.
Car Loadings, August—131.
Exports of Merchandise, August__81
Bituminous Coal Production, A ugust^-ll*
Pig Iron Production, August—128
Automobile Production, August—204.
1926
@FedFRASER