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 A p ril 17, 1928) VOL. 13, No. 4. ATLANTA, GA., APRIL 30, 1928 t S J S S ^ S 1 ^ BUSINESS CONDITIONS IN THE UNITED STATES Sales of department stores, on the other hand, after allow ance is made for customary changes and the early date of Industrial production during March was in about the Easter, were about the same in March as in the preceding same volume as in February and there was a seasonal month and in March 1927. Stocks of merchandise carried increase in the distribution of commodities. Wholesale in March by wholesale firm s were larger while those of prices remained practically unchanged. During the past department stores were smaller, than at this time last month there have been increases in bank credit in use and year. The volume of freight car loadings showed more in member bank borrowing at the Federal Reserve Banks, than the usual seasonal increase, in M arch, but declined in and open market rates have shown further advances. the first two weeks of April. Loadings continued smaller Production Production of manufacturers was than a year ago for all classes of commodities except maintained during March at the high grains and live stocks. level reached in February, and the output of m inerals also Prices The general level of wholesale com showed little change. Production of passenger automobiles modity prices showed little change and trucks during March totaled 413,000 the largest out in March, the index of the Bureau of Labor Statistics put recorded for any month since August 1926, and pro declining slightly from 96.4 to 96 per cent of the 1926 duction schedules in automobile plants continued large average. There were decreases in the prices of live stock, during April. Activity in the iron and steel industry was dairy products, meats, coal and rubber. Prices^ of grains, also maintained at a high level during March and April, cattle, feed, cotton and steel, on the other hand, advanced. and lumber production was in larger volume than a year During the first three weeks in April, there were further ago. Cotton and wool consumption declined in March, but substantial increases in the prices of grains and more silk deliveries were the largest on record. There was some moderate advances in flour, hogs, cotton, and lumber decline in meat packing and in the production of sole while prices of cattle and rubber declined. leather, and the output of boots and shoes in March showed less than the usual seasonal increase. Mining of Bank Credit Between March 21 and April 18 total bituminous coal decreased during March by less than the loans and investments of member usual seasonal amount, but as the result of a strike in banks in leading cities increased by about $410,000,000 certain middle western mines, production in the early reaching the highest level on record. The advance was weeks of April was considerably curtailed. Building con largely in loans on securities which showed an increase tracts awarded were smaller in March than a year ago, of nearly $380,000,000 and in April were close to the high while those for the first three weeks in April were in point of the first of the year. Loans for commercial pur about the same volume as in the corresponding period of poses continued the increase which began in February and last year. As a result of large contracts during the first not withstanding a small decline during the last week of two months of this year, total awards for the year to the period were nearly $350,000,000 larger on April 18 April 20 exceeded those for the same period of 1927. than at the end of January. Contracts for residential buildings and for public works The volume of reserve bank credit in use increased have been especially large. by $180,000,000 during the five weeks ending April 25, re Trade Sales of wholesale firms increased flecting increased reserve requirements of member banks less than usual in March and were and a further net outflow of gold amounting to more than somewhat smaller than in the same month of last year. (Continued on page 8) POR CENT PERCENT PERCENT PER CENT 1 5 0 1150- J 2 5 f WHOLESALE PI7ICES 1 MannFactures 100 3V-. ■ d c 100 Minerals 1 100 iod»1 5 0 5 0 PRODUCTION OF MANUFACTURES ANDMINERALS 1 1 7 5 7 5 1 9 2 4 1925 1926 1927 1 9 2 8 1924 1925 1926 1927 1 9 2 8 Index numbers of production of manufactures and minerals, ad Index of United States Bureau of Labor Statistics, (1926— 100, base justed for seasonal variations (1923-25 average— 100.). Latest figures, adopted by bureau). Latest figure March 96 0, DigitizedM arch for FRASERmanufacturers 111; m inerals 104. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 2 MONTHLY REVIEW BILLIONS OF DOLLARS BILLIONS OF DOLLARS , - j 10 2 2 10 i 1 A ll O th er Loa n s ( Largely Cowmen:ia l) RESER V E B A N K C:r e d i t T o ta l R e s e r v M a n k C r e d it a \ i In v estm eri t s e 'a - L o a n s o n S e c u r itie s D isca u n ts fo r, M e m b er B a n k s U S S e c ;u r itie s - - V / O s v ^ ~ / ~ — xh l — \A j MEME I E R B A N K (CREDIT Acceptances i ____ _ 1 ..... ... a v , 1924 1925 1926 1927 1928 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 April. Latest figures are averages for first three weekly report dates in April. SIXTH DISTRICT SUMMARY active was greater than in March a year ago. Production of cotton cloth in March was 7.7 per cent greater than in Seasonal increases in trade, both at retail and whole February, and about the same as in March last year. Pro sale, and in prospective building as reflected in statis duction of yarn increased 9.5 per cent over February, but tics of building permits, and a larger demand for credit, was 9.2 per cent smaller than a year ago. Production of are indicated in statistics compiled for March and early pig iron in Alabama increased over February but was April. The volume of sales in March by report smaller than in March last year, and weekly figures of ing department stores throughout the district bituminous coal mined in Alabama and Tennessee show reached a level higher than for the same month decreases compared with corresponding weeks last year. of any of the past seven years, and exceeded Production of turpentine and rosin in the Naval Stores March last year by 12.3. A part of this increase may be year which ended with March was the largest in fourteen attributed to the fact that Easter this year, which fell years and within thirteen per cent of the greatest crop on April 8, was nine days earlier than last year, and a in history, due to the unusually favorable weather last larger share of Easter buying was done in March this year. Farm work and planting for this season’s crops year than last. Stocks of merchandise held by depart were retarded by the late spring and rains. ment stores at the end of March were slightly larger than a month earlier, but smaller than a year ago. Whole RETAIL TRADE sale trade in nearly all lines was larger in March than The distribution of merchandise at retail in the sixth in February, but in smaller volume than in March last district during March, reflected in sales figures reported year. Building permits issued at twenty reporting cities confidentially by 46 department stores located through in March increased about 25 per cent over February, but out the district, showed a substantial seasonal increase, were 7.9 per cent less than in March 1927. Debits to in as compared with earlier months of the present year, and dividuals accounts at 26 reporting cities in March in was in larger volume than during the same month of any creased 12.8 per cent over the short month of February, of the past seven years. March sales this year by these and were 1.6 per cent less than in March last year. Sav 46 reporting firms were 12.3 per cent greater than in ings deposits held by 86 reporting banks at the end of March 1927. Increases are shown for each city from which March were 5.6 per cent greater than a year ago. A three or more reports were received, ranging from 1.3 larger demand for credit is indicated by an increase in per cent at Chattanooga to 33.7 per cent at Atlanta. loans and discounts of weekly reporting member banks Total sales during the first quarter of 1928 were greater at principal cities of the district, and in an increase of than for the same period last year at Atlanta, Birming discounts for member banks throughout the dictrict by ham and Nashville, and averaged 5.6 per cent greater for the Federal Reserve Bank.