Evening star., 1932-09-03
D. c. RETAIL TRADE
!. HOLDING UP WELL.
Capital Shows Strongest Po-
I Sition in Fifth Federal
Reserve District.

ranking next to Baltimore in volume
IUr this district, some improvement is
noted in general conditions through
the area since the middle of July, ac-
cording to the monthly review of
credit, business and agricultural condi-
tions by william w. Hoxton, chairman
and Federal Reserve agent of the red
eral Reserve Bank of Richmond.
Two influences, the review said,
bringing about the change were the
activity and improvement in the Sc
curity market and the recent rise in
prices for cotton and some other agri
cultural products.
Most of the basic business statistics,
which are now available" said the re-
view, "cover the month of July and
show little change from other recent
months, but nevertheless there is much
more optimism than was the case pre-
viously. The Department of Labors
figures for July show price advances
in both wholesale and retail indexes,
the first checks reported in many
months to steadily falling commodity
prices. In the fifth district labor con-
ditions have changed for the better in
some industries and localities, num-
ber of industrial plants having taken
on additional workers, and opening OF
tobacco markets requiring the help OF
several hundred men.
Note Circulation Gains.
GAS is customary at this season OF
the year, the circulation of Federal Re-
serve notes rose during the past month,
but member banks in rural districts
did not increase their rediscounts at
the reserve bank as they usually do
when crops begin to move to market.
Member banks in the larger centers
slightly decreased their loans, but in
creased their investments in securities
between the middle of July and the
middle of August, and increased moder-
ately their borrowing at the Federal
Reserve Bank. Bank deposits changed
little during the month. Debts to in
oividual accounts figures in the four
weeks ended August 10 showed sea
sonal reduction in comparison with
the preceding four weeks, which in
cluded the July l payments.
Rediscounts for member banks, con-
trary to seasonal trend, declined by
1,731 900 during July, but at the mid
die of August showed an increase of
S9,218,000 over rediscounts held on the
corresponding date last year. Holdings
of open market paper on the latest
date were smaller than holdings on
either July Is this year or August is
last year. Total earning assets of the
Federal Reserve Bank of Richmond de-
creased by $2,623,0 900 between July Is
and August Is, but on the latter date
exceeded earning assets as of August
is last year by $23,490,000.
Commercial insolvencies in the Fifth
Federal Reserve district in July, 1882,
totaled 173, with aggregate liabilities
amounting to S4,545, ,6O2, an increase in
number of 944 per cent and rise in
liabilities of 244.2 per cent in COM
parison with SO failures and estimated
liabilities totaling $1,320,725 in July,
1881. Both the number of failures and
the aggregate liabilities involved in fifth
district failures last month were larger
than for any other July since the Fed
eral Reserve Bank of Richmond began
its insolvency record in 1919, but both
figures last month were below those Of
June, this year.
Retail Trade Figures.
Retail trade in this city led the dis
trict, with falling off of only 27.1
per cent in July as compared with July
of 1881. The percentage of drop in
retail trade for this same period
throughout the whole district was 27.8;
for Richmond, 29.0 per cent; and for
Baltimore, 278 per cent, while other
cities in the area showed drop of 1913
per cent.
Building permits in Washington fell
of from $50 in July, 1881, to 410 in
July of this year, the survey showed,
as compared to a drop from 1,179 to 929
for Baltimore during the same period,
and from 140 to 104 for Richmond
The total valuation for building per-
mits here dropped from s2,305.115 to
s648,570 in the same period The dis
trict as whole showed falling off of
26.l per cent in number of permits and
S5.7 per cent in valuation.
Prospects for the tobacco crop in the
fifth district ON August l indicate a
yield of approximately 5,77l, 900
pounds, in comparison with 684, ,996, 900
pounds produced in the district in 1881,
a reduction of 437 per cent in compari-
son with national decrease of 1868 per
cent.
Holds Quick Asset Position.
McKesson g. Robbins, Inc, in the
first half of 1882 more than covered the
interest on its debentures. although the
report, to be issued shortly, is not likely
to show much earned on the preferred
stock. Amortization OF the debenture
issue, which originally amounted to
S22, 100000, is reducing the total in the
hands of the public. and the June 80,
1882. statement is likely to show this
Indebtedness reduced 20 less than
s21, 100000. On June 80, 1881, it stood
at So, 1855 600, and at the end Of 1881
it was $21 038000.
With debentures reduced to less than
$21 ,000,0 ,000 six months interest charges
at 5l2 per cent would be somewhat
under S575,000. Earnings for the first
half year will probably show this in
terest covered by margin of about 60
per cent.
McKesson & Robbins showed in the
first half year smaller drup in sales
than the drug business as a whole.
Duns estimates that in the first six
months of 1882 drug business was
about 20 per cent less than in the like
period of 1881. During this period
McKeSson g. Robbins sales declined less
than is per cent. running somewhere
996,637 in the first half of 1881 and
$67,419,293 in the first half of 1880.
With its earnings only slightly eX-
ceeding disbursements for interest and
minority stockholdings, McKesson has
been able to sustain its quick asset posi-
ton, which shows current assets about
five times current liabilities, but has
been unable to effect much improvement
in this position. The June 80 report
however, is likely to show a fairly SUBJ
stantial reduction in notes and accept
ances payable.
The present is period of transition
between declining and rising volumes
according to the United Business Sery-
ice The united business thermometer
computed by the service shows that
trade and industry have fluctuated be-
tween As per cent and 80 per cent be-
low normal since May. Several impor-
tant indicators, notably those of elec-
trio power production and car loadings
have shown encouraging stability dur.
ing the Summer months. Upward
trends in security and commodity
prices have been maintained.