Evening star., 1933-02-04
YEAR IS REVIEWED
...4BY !. AGENT HOXTON
Fifth District Business Condi-
tioins Are Compared With
1881 and 1929.
BY EDWARD C. STONE.

and important summary, received here
today, William w. Hoxton, agent of
the. Federal Reserve Bank of Rich
mond, presents a clear picture OF
credit, business and agricultural con-
ditions in the fifth district in 1882, as
compared with 1881. also with 1929,
to- afford an opportunity for compar1-
son with year before the depression
was felt seriously. Agent Hoxton states
that all the figures in 1882 compare
ulfavorably with those for both 1881
and 1929.
-. Debts to individual accounts figures,
which reflect the volume of business
passing through banks totaled 219 per
cent less than debts in 1881 and 373
per cent less than those of 1929. Com
mereial failures last year were % per
cent more numerous than in the pre-
ceding year and 1868 per cent above
those of 1929, and aggregate liabilities
involved in 1882 failures were 55.5 per
cent and 1875 per cent above those
OF 1881 and 1929, respectively.
uCotton consumption in fifth district
mills in 1882 was Al per cent below
consumption in 1881 and 209 per cent
below 1929, although in this activity
there was marked improvement in the
last third of 1882 and more cotton was
used. than in the last four months OF
the year before. Building permits is
sued in leading fifth district cities last
year declined greatly in both number
and estimated valuation, and in value
amounted to only q per cent OF the
1929 total. Contracts actually awarded
last year for construction work, in
cluding rural as well as city projects,
totaIed less than two-thirds as much
as 1881 contracts and only Al per cent
Of those awarded in 1929.
...,. Trade Greatly Handicapped.
Retail and wholesale trade in 1882
was in materially reduced volume in
comparison with both 1881 and 1929,
but on the whole held up in the larger
cities better than might have been ex-
pected in the face Of widespread unem-
ployfnent and reduced incomes.
Unemployment spread further In
1882 and so did wage and salary cuts
by firms which were losing money. both
Of these developments reducing con-
sumner purchasing power and eftectng
shrinkageS in numerous types OF buSl-
ness,
Agriculture was highly improbable
last year, yields being low on account
CT unfavorable weather and financial
returns small because of continued low
lOI ldlLl plOOdSIo. AAA eAlC law
Of surplus crops carried over from 1881,
the reduction in yields last year were
insufficient to raise prices materially
in any important line.
Fortunately the farmers In the fifth
district made last years crops very
cheaply, which held down their losses,
but at the end of the year many OF
them were not even able to pay taxes
on their land or interest on their mort
cages, Mr.. HoxtCn says.
Banking Changes Seasonal
In December, business on the whole
continued at about the same levels as
in the Fall months of 1882, but was
in less than seasonal volume in retail
trade because of very bad weather dur
ing, the entire month. Department
store sales last month were 21.8 per
cent less than sales in December, 1881,
end wholesale trade was also in smaller
volume in the 1882 month. No espe-
cially important developments occurred
in banking activities between the mid
die of December and the middle OF
Janury, changes in condition statements
Of both the Federal Reserve Bank OF
Richmond and regularly reporting
member banks being seasonal for the
most part.
Debts to individual accounts figures
during four weeks ended January IL,
1893, showed a seasonal increase over
debts in the four weeks ended Decem-
her IA 1892, but fell 19 per cent below
totals for the corresponding four weeks
ended January 13, 1882. Employment
showed no improvement in December.
and severe weather increased the hard
ships of persons out of work. Coal
production in December exceeded pro
duction in December, 1881.
Fifth district textile mills consumed
less cotton in December than in No
vember, a seasonal decline due to
Christmas holidays, but used more cot
ton than in December of the preced-
ing year. Cotton and tobacco prices
rose somewhat in December, and to-
- bacco prices were materially higher
than prices a year earlier, but so much
less tobacco was sold last month that
total money returns were less than
those of December 81, Agent HoX-
tons monthly review states.
d. C. Bank Clearings Lower.
Bank clearings in Washington for
the week ending February were slight
ly lower than in the previous week,
although the country as whole re-
ported a gain of 61a per cent, Wash.
mgton clearings totaled $15,183 900,
against S16,272,000 in the previons
week, % per cent lower than the cor
responding week year ago.
Baltimore business picked up, clear
ings amounting to $46,865 900, against
SIS, ,031 900 in the week ended January
Is. off 81 per cent from a year ago.
Richmond had a sharp advance, clear
ings reaching $26,236,0OO for the week
ending February l, as compared with
SO, 500 900, and only 85 per cent under
the record year ago.
: Norfolk also saw much better busi-
ness. judging by the clearings report.
.Tha. total for the week was $2,345 900,
against S1,758,000 for the previous
week and 1863 per cent below the COM
parable week year ago. Although out
side of the fifth district, it is interest
ing to note that Atlanta also reported
much better figures, clearings being
-S25 100000, in comparison with S22,-
100000 for the previous week, down
per cent from year ago.
!. According to Bradstreet, New York
made better proportionate gain than
did most of the cities elsewhere in the
country.
Business Stable for 20 Weeks.
Ever since business rose from the ex-
treme depression low point" registered
last Summer, the trend has been steady,
the United Business Service of Boston
points out. For 20 weeks the gains and
declines in the various components of
trade and industry have about balanced
out. and volumes have f1uctuated in the
narrow range between As and At per
cent below normal. It is the opinion
of the service that business will not de-
: cline below the 1882 low point. No
: rapid increases are expected, but the
prospects seem favorable that business
will start working out of the "depres-