Economic Review
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M ONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Sixth Federal Reserve District FEDERAL RESERVE BANK OF ATLANTA O s c a r N e w t o n , Chairm an of the Board and Federal Reserve Agent W a r d A l b e r t s o n , Assistant Federal Reserve Agent (Compiled October 17, 1927) This Review released for publication in the VOL. 12, No. 10. ATLANTA, GA., OCTOBER 31,1927. Sunday papers of October 30. BUSINESS CONDITIONS IN THE UNITED STATES is expected to be 34,000,000 bushels larger than last year, Prepared by the Federal Reserve Board while the estimated cotton crop of 12,678,000 bales is more Industrial and trade activity increased less in Septem than 5,000,000 bales below last year’s yield. ber than is usual at this season of the year and contined Distribution Trade of wholesale and retail firms to be in smaller volume than a year ago. The general increased in September by somewhat level of wholesale commodity prices showed a further rise, less than the usual seasonal amount. Compared with a year reflecting chiefly price advances for agricultural com ago, sales of wholesale firms in nearly all lines, except m o d itie s. shoes and drugs, were smaller. Sales of department stores were in about the same volume, and those of mail order Production The Federal Reserve Board’s indexes houses and chain stores were somewhat larger. Invento of both manufacturing and mineral ries of merchandise carried by reporting wholesale firms production, in which allowance is made for usual seasonal in leading lines were reduced in September and continued variations, decreased between August and September. Pro smaller than last year. Stocks of department stores, on duction of iron and steel was in smaller volume in Sep the other hand, increased slightly more than is usual in tember than in any month since 1925. There were also September and at the end of the month were somewhat decreases from August to September in the output of non- larger than a year ago. Freight car-loadings were in ferrous metals, automobiles, and rubber tires, while the smaller volume during September and the first week of textile and shoe and leather industries continued active. October than in the corresponding period of last year for The production of bituminous coal showed about the usual all groups of comodities, except grain and grain products, seasonal incrcease in September and October, but con of which loadings were larger than in the same period of tinued in smaller volume than during the same period of any previous year since 1924. other recent years. The output of anthracite was con siderably reduced during September and the first half of Prices Wholesale commodity prices advanced October, following an increase in August, and the weekly in September for the fourth consecu output of crude petroleum has decreased slighly since the tive month, and the Bureau of Labor Statistics all-com early part of August. The value of building contracts a- modities index rose to the highest level since last Jan warded continued somewhat smaller during September uary. There were large increases between August and and the first three weeks of October than during the cor September in the prices of livestock, meats and cotton, responding period of 1925 or 1926; declines occurred in and small advances in the prices of leather, coal, and contracts for residential, commercial industrial and edu chemicals, while prices of grains, building materials and cational building, while contracts for public work and pub rubber declined. During the first three weeks of October, lic utlities were larger in September than in the corres the prices of spring wheat, corn, cotton, coal and iron and ponding month of any previous year. steel declined, while prices of livestock, raw wool, and Crop conditions improved in September and the De rubber advanced. partment of Agriculture estimates for October 1, indicate Bank Credit Total loans and investments of mem larger yields of most grain crops than were expected ber banks in leading cities showed a a month earlier. The estimate for the corn crop was in further increase for the four weeks ending October 19 and creased by 146,000,000 bushels and was only 43,000,000 on that date were about $660,000,000 larger than in mid- bushels smaller than the yield in 1926. Wheat production (Continued on page 7) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 2 MONTHLY REVIEW Monthly averages of daily figures for 12 Federal Reserve Banks. Monthly averages of weekly figures for banks in 101 leading cities. Latest figures are averages of first 23 days in October. Latest figures are averages for first three weekly report dates in Oct. SIXTH DISTRICT SUMMARY sm aller than in August, and 16.9 per cent sm aller than in September 1926. Consumption of cotton in the cotton- September showed improvement in the estimated pro growing states continues greater than a year ago, and in duction this season of corn, oats, tobacco and cotton, but creased production of cotton cloth and yarn over Septem a slight reduction in the potato crop. Compared with yields ber last year is indicated in confidential reports from in 1926, prospects continue for smaller crops of corn, m ills in this district. wheat, oats, tobacco and cotton, but a larger crop of potatoes. The estimate of cotton production in the sixth district increased m aterially during September because of RETAIL TRADE weather conditions favorable to the development of the c ro p . The volume of sales during September reported by forty- The distribution of merchandise through retail and seven department stores in the sixth district was season wholesale channels was in greater volume in September ally greater than during the previous month, and was also than during August. Sales during September by reporting greater than in the corresponding month last year, and department stores located throughout the district aver stocks of merchandise also showed increases over both of aged 9.6 per cent greater than in the corresponding month those periods. September sales were larger than in the last year. Stocks increased over August, and over Sept same month a year ago at all reporting cities except Sav ember a year ago, and the rate of turnover in September annah, the average for the district being an increase of was slightly better than in the same month last year. Sales 9.6 per cent. Total sales by these firm s during the first nine by wholesale firm s during September were greater in all months of 1927 were less than one-tenth of one per cent reporting lines than for August, and four lines reported smaller than during the same period of last year. Stocks increases over September last year, the other four report of merchandise increased over those at the end of August ing decreases. Savings deposits at the end of September at all reporting cities, and were larger than a year ago ex were 1.4 per cent greater than a month earlier, and 7.7 per cept at Birmingham and Other Cities. Turnover for the cent greater than a year ago. Debits to individual ac month averaged better than in September last year for the counts were 6.7 per cent greater than in September last district but was slower at New Orleans, Savannah and year. An increased demand for credit is reflected in the Other Cities. The index number of retail sales, computed growth of loans and discounts at reporting member banks from figures reported by 39 of these reporting stores, rose between September 14 and October 12, but discounts and from 94.2 in August to 106.5 in September, and is higher investments of the Federal Reserve Bank declined during than for September of any other year in the series which this period. Com m ercial failures in this district were sm all began in 1920. Outstanding orders at the end of September er than in August, but were greater than in September declined 2.1 per cent compared with those outstanding a l a s t y e a r . month earlier, but were 0.7 per cent greater than a year # Building permits issued during September at reporting ago. Accounts Receivable at the end of September were cities of the district were 11.3 per cent smaller than in 5.4 per cent greater than at the end of August, and 6.4 per September last year. Contract awards were 9.7 per cent cent greater than at the same time last year. September CONDITION OF RETAIL TRADE DURING SEPTEMBER, 1927. IN THE SIXTH FEDERAL RESERVE DISTRICT BASED UPON REPORTS FROM 47 STORES Percentage of sales to Percentage of outstand Net sales—percentage Stocks at end of month, Percentage of sales to average stocks from ing orders at end of increase or decrease percentage increase or average stock in Sept January 1st to Sept. 30. month to purchases compared with: decrease compared with: (Stock turnover for (Stock turnover for during calendar year the month): year to date) 1926. (A) (B) Sept. Ja n . 1 to (A) (A) (B) (A) (B) (A) i B) (?) 3926 Sept. 30, Sept. Aug. 1926 1927 1926 1927 Aug. Sept. 1926 1926 1927 I Atlanta (5 ) _____________ +29.1 + 12.3 +15.0 +24.9 33.0 Birmingham ( ) ____ 28.6 i 259.9 274.8 7.1 5.6 6 + 15.5 — 0.2 — 19.1 + 7.8 25.7 Chattanooga ( ) ______ 18.7 I 190.2 199.4 9.0 9.0 6 + 9.1 + 2.0 + 3.6 + 6.7 172.1 169.4 Nashville ( ) __________ 16.8 I 18.3 7.9 7.8 5 + 7.9 + 0.7 + 6.1 +11.8 24.9 221.3 236.4 New Orleans (5)_____ 23.6 I 12.5 7.6 + 1.7 — 2.0 + 9.4 + 9.1 19.3 | 18.1 183.5 168.1 7.7 9.1 Savannah (8) ________ — 1.7 + 1.2 + 3.2 +23.9 194.0 Other Cities ____ 18.5 I 17.9 192.0 14.9 X (IS) + 1.1 — 9.8 — 5 .8 + I S 19.9 212.9 193.7 D sitrict ) ___________ .8 20.0 7.3 6.4 47 + 9.6 — 0.0 + 2.6 +12.6 20.8 | 22.4 202.9 199.7 8.1 7.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St.