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X-3008 FEDERAL RESERVE BOARD STATEMENT FOR THE PRESS ' F,«> For r e l e a s e i n Monday morning p a p e r s , January 3, 1$21. The f o l l o w i n g i s a review of g e n e r a l b u s i n e s s and f i n a n c i a l c o n d i t i o n s throughout t h e s e v e r a l F e d e r a l Reserve D i s t r i c t s d u r i n g t h e month of December, a s contained i n t h e forthcoming i s s u e of t h e F e d e r a l Reserve B u l l e t i n . F u r t h e r p r o g r e s s i n b u s i n e s s r e a d j u s t m e n t has been t h e c h a r a c t e r i s t i c f e a t u r e of commercial and i n d u s t r i a l development d u r i n g the month of December, Such r e a d j u s t m e n t has been accompanied by a f u r t h e r d e c l i n e of p r i c e s , which has brought t h e l e v e l shown by t h e B o a r d ' s index number t o 190 p e r cent of t n s l e v e l of 1913 ( a d e c l i n e f o r the month of about 8-g p e r c e n t ) . An i n c r e a s e of unemployment growing out of r e d u c t i o n s of b u s i n e s s a c t i v i t y , which have cut o p e r a t i o n s t o f i g u r e s v a r y i n g from 40 p e r cent t o 75 p e r cent of normal, has a f f e c t e d l a b o r unfavorably. Wage c u t s r u n n i n g a s high a s 20 p e r cent t o 25 p e r cent i n some' l i n e s have accompanied the shrinkage of demand, and t h e r e has been a f a l l i n g off of export t r a d e . On t h e o t h e r hand, banking power has been w e l l m a i n t a i n e d , normal c r e d i t accommodation h a s been extended t o l e g i t i m a t e b u s i n e s s , t h e r e s e r v e r a t i o has grown s t r o n g e r , and i n t e r r e s e r v e bank borrowing h a s been i n p a r t l i q u i d a t e d . At t h e member banks l i q u i d a t i o n - o f " l o a n s i s beginning and b e t t e r c o n d i t i o n s a r e f o r e shadowed. ' : From D i s t r i c t No. 1 (Boston) i t i s r e p o r t e d t h a t t h e l i q u i d a t i o n i n commodities, w h i l e d r a s t i c , has been on, the whole o r d e r l y , r e g u l a r demands f o r c r e d i t have been g r a n t e d , and t h e banking s i t u a t i o n i s stronger. From D i s t r i c t No. 2 (New York) i t i s r e p o r t e d t h a t money r a t e s have grown e a s i e r , w h o l e s a l e p r i c e d e c l i n e s have been t h e s h a r p e s t of t h e p r e s e n t movement, m a n u f a c t u r i n g i s i n reduced volume, and e x p o r t t r a d e -2is declining. 54 X-300S R e t a i l t r a d e has bean w e l l m a i n t a i n e d . There has been an adequate supply of banking accommodation. Prom D i s t r i c t No. 3 ( P h i l a d e l p h i a ) i t i s r e p o r t e d t h a t t h e r e has been but . l i t t l e change of c o n d i t i o n s from t h e p r e c e d i n g mouth, manufact u r i n g and w h o l e s a l i n g being q u i e t , w h i l e r e t a i l t r a d e . i s l a r g e r than l a s t year. From D i s t r i c t No. 4 (Cleveland) i t i s r e p o r t e d t h a t money c o n d i t i o n s a r e encouraging, p r i c e s a r e s t i l l r e c e d i n g , m a n u f a c t u r i n g c o n t i n u e s t o be r e s t r i c t e d i n volume, r a i l r o a d e f f i c i e n c y i s l a r g e , w h i l e c u r t a i l m e n t of output and lowering of wages a r e i n evidence throughout t h e i r o n and steel trade. From D i s t r i c t No, 5 (Richmond) i t i s r e p o r t e d t h a t b u s i n e s s i n w h o l e s a l e and m a n u f a c t u r i n g l i n e s i s i n a c t i v e , b u i l d i n g o p e r a t i o n s a t a minimum, and unemployment p r e v a l e n t , but s i g n s of improvement a r e n o t e d . From D i s t r i c t No. 6 ( A t l a n t a ) i t i s r e p o r t e d t h a t most of t h e c o t t o n crop h a s been h a r v e s t e d but i s being l a r g e l y h e l d , w h i l e f a r m e r s g e n e r a l l y f e e l t h e e f f e c t of low p r i c e s . d u c t i o n has i n c r e a s e d - Other markets a r e q u i e t . Coal p r o - Lower p r i c e s of p i g i r o n have not produced any g r e a t amount of b u s i n e s s . From D i s t r i c t No. 7 (Chicago) i t i s r e p o r t e d t h a t l i q u i d a t i o n of bank l o a n s i s p r o g r e s s i n g f a v o r a b l y . Banners a r e s u f f e r i n g from low p r i c e s , but e f f o r t i s being made t o supply t h e c r e d i t t h e y r e q u i r e . R e t a i l t r a d e has h e l d up well, a l l t h i n g s c o n s i d e r e d . From D i s t r i c t No. 6 ( S t . L o u i s ) apathy i n buying i s r e p o r t e d . c u t s have gone f u r t h e r and t h e r e i s i n c r e a s e of unemployment. Price Transpor- t a t i o n h a s l a r g e l y improved and banking c o n d i t i o n s a r e even b e t t e r t h a n heretofore. -3- X-3008 From D i s t r i c t No. 9 (Minneapolis) i t i s r e p o r t e d t h a t g r a i n r e c e i p t s M' ve somawhat f a l l e n o f f , while s t o c k s of g r a i n nave i n c r e a s e d . p r o d u c t i o n has improved. P r i c e s i n g e n e r a l have d e c l i n e d . c o n d i t i o n s a.re s t r o n g e r . R e t a i l t r a d e has neld i t s own. Flour Bank From D i s t r i c t No. 10 (Kansas C i t y ) i t i s r e p o r t e d t h a t t h e r e i s slowing down of b u s i n e s s i n n e a r l y a l l l i n e s , but t h e r e i s a g e n e r a l b e l i e f t h a t c o n d i t i o n s w i l l soon be r i g h t e d and a f o u n d a t i o n i s b e i n g .. : c - . " d l y laid for i " better business. Only s l i g h t e v i d e n c e s of l i q u i d a t i o n a r e t o be n o t e d . From D i s t r i c t No. 11 ( D a l l a s ) i t i s r e p o r t e d t h a t t h e r e w i l l be a " l a r g e c a r r y over" both of d e b t s and commodities i n t o 19?1- Movement of goods shows d e c r e a s e p r e t t y g e n e r a l l y , but r e t a i l - t r a d e h a s held up well. From D i s t r i c t No. 12 (San F r a n c i s c o ) i t i s r e p o r t e d t h a t r e t a i l t r a d e i s good, w h o l e s a l i n g l e s s a c t i v e , crops moving s t e a d i l y to market, l i v e s t o c k and a l l i e d i n t e r e s t s i n f a v o r a b l e p o s i t i o n , and f i n a n c i a l prospects favorable. A g r i c u l t u r e . - The weathsr c o n d i t i o n s which have p r e v a i l e d g e n e r a l l y throughout the a g r i c u l t u r a l s e c t i o n s have been f a v o r a b l e f o r farm operations. The h u s k i n g of corn has been c a r r i e d forward r a p i d l y and i s p r a c t i c a l l y f i n i s h e d i n most d i s t r i c t s . In D i s t r i c t No. 4 ( C l e v e l a n d ) , however, h u s k i n g has been slow and t h e warm, moist Whether has i n j u r e d t h e q u a l i t y of corn t o some e x t e n t . The w e a t h e r c o n d i t i o n s have a l s o a i d e d m a t e r i a l l y i n f a l l plowing and t h e p r e p a r a t i o n of t h e ground f o r n e t t s e a s o n ' s crop. Winter wheat h a s made a good s t a r t and i s i n a good c o n d i t i o n t o go through the w i n t e r . In some s e c t i o n s t h e r e h a s been some damage from t h e Hessian f l y , but t h e c o l d e r weather w i l l t e n d t o e l i m i n a t e this evil. -4- X-3008 An i n d i c a t i o n of t h e e x t e n t t o which c o t t o n p i c k i n g h a s p r o g r e s s e d i s a f f o r d e d by t h e number of b a l e s ginnad p r i o r t o December 1, which was 10,144, 921 i n 1920, a s a g a i n s t 8,844,3t>S i n ISIS* In some s e c t i o n s r a i n s have delayed p i c k i n g t o some e x t e n t , while i n o t h e r s e c t i o n s farmers a r e r e p o r t e d t o be abandoning t h e c o t t o n because of the d e c l i n e i n p r i c e and t h e r e l a t i v e s c a r c i t y of p i c k e r s , t o g e t h e r w i t h t h e high wages demanded. In southern Oklahoma c o t t o n p i c k i n g c o n t i n u e s , a l t h o u g h r e p o r t s a r e t o t h e e f f e c t t h a t a c o n s i d e r a b l e p o r t i o n of t h e . c r o p w i l l be p a s t u r e d a f t e r the f i r s t p i c k i n g . There has been c o n s i d e r a b l e d e t e r i o r a t i o n i n t h e q u a l i t y of the l i n t , due t o the wet w e a t h e r , and t h e bulk of t h e g i n n i n g i s r e p o r t e d to be grading below m i d d l i n g . Movement of c o t t o n t o market has been r e l a t i v e l y slow^ r e c e i p t s showing a sharp and unseasonable f a l l i n g o f f . r e p o r t e d t h a t s e l l e r s have complained t h a t they In some s e c t i o n s i t i s were unable tu s e l l t h e i r c o t t o n a t any p r i c e u n l e s s i t was of s u p e r i o r g r a d e . However, c o t t o n f a r m e r s i n many s e c t i o n s show a tendency t o hold a s much a s p o s s i b l e of t h e i r crop off the market, i n t h e hope of an advance i n p r i c e . new c o t t o n s t o r a g e warehouses have been c o n s t r u c t e d . Many The low p r i c e s r e a l i z e d f o r c o t t o n have r e s u l t e d i n c o n s i d e r a b l e a t t e n t i o n b e i n g given t o the r e d u c t i o n of next y e a r ' s a c r e a g e , some p l a n t e r s p r o p o s i n g a d e c r e a s e of o n e - t h i r d , and v'6? crop r o t a t i o n has been urged. Live Stock - Live s t o c k on farms and r a n g e s i n D i s t r i c t No. 10 (Kansas C i t y ) i s " g e n e r a l l y h e a l t h y and i n good c o n d i t i o n " . The tendency i s f a s t d i s a p p e a r i n g t o abandon t h e b u s i n e s s and s a c r i f i c e the s t o c k . As feed i s cheap and p l e n t i f u l , t h e r e i s more of an i n c e n t i v e t o p u t f l e s h on the a n i m a l s i n s p i t e of t h e low p r i c e s p r e v a i l i n g . Southwestern r a n g e s X-3C08 and l i v e s t o c k , w i t h few e x c e p t i o n s , " a r e e n t e r i n g t h e w i n t e r i n t h e b e s t c o n d i t i o n they have e n j o y e d f o r many y e a r s " . R e c e i p t s of c a t t l e a t 15 w e s t e r n m a r k e t s i n c r e a s e d from 1 , 6 2 8 , 5 6 4 head d u r i n g October t o 1 , 7 5 1 , 2 6 1 head d u r i n g November, t h e r e s p e c t i v e i n d e x numbers b e i n g 162 and 177, a s compared w i t h 2 , 0 3 8 , 7 8 6 head, c o r r e s p o n d i n g t o a n index number of 202 d u r i n g November, 1919. R e c e i p t s of hogs i n c r e a s e d g r e a t l y between October and November, b e i n g 2 , 6 2 4 , 1 8 5 head d u r i n g November, a s compared w i t h 1 , 8 3 6 , 7 4 8 head d u r i n g October and 2 , 6 5 9 , 2 5 1 head d u r i n g October, 1919; t h e r e s p e c t i v e index numbers b e i n g 119,84 and 121, On t h e o t h e r hand, r e c e i p t s of sheep were l e s s , b e i n g 1 , 5 4 2 , 4 7 ? head d u r i n g November, c o r r e s ponding t o index 113, as compared w i t h 1,805,330 head d u r i n g O c t o b e r , c o r r e s ponding t o a n i n d e x number of 1 ] § , and 1 , 7 4 2 , 6 6 8 head d v r i n g November, 1919> c o r r e s p o n d i n g t o an index number of 128. November c a t t l e r e c e i p t s a t F o r t h Worth, however, were t h e s m a l l e s t on r e c o r d f o r t h a t month s i n c e 1912, and "were g e n e r a l l y of an u n d e s i r a b l e q u a l i t y " . With d e c l i n e s i n t h e p r i c e s of hogs i n December r e c e i p t s f o r t h e f i r s t h a l f of t h e month i n t h e p r i n c i p a l m a r k e t s i n D i s t r i c t No. 1 0 (Kansas C i t y ) a g a i n f e l l below t h o s e of a year a g o . The S t . Paul c a t t l e market was d e p r e s s e d t o t h e l o w e s t l e v e l s of t h i s y e a r , i n p a r t a s a r e s u l t of l a r g e r e c e i p t s ( e s p e c i a l l y of common and poor grade, which a r e always h a r d t o market a t t h i s t i m e of t h s y e a r ) , slackened demand f o r s t o c k e r s and f e e d e r s , i n a d e q u a t e s t o c k c a r s f o r s h i p p i n g , and low p r i c e s a t e a s t e r n m a r k e t s . Heavy m a r k e t i n g s and d e c l i n e s i n g r a i n s and p r o v i s i o n s c o n t r i b u t e d t o a d e c l i n e i n hog p r i c e s , c l o s i n g p r i c e s f o r t h e h i g h e s t g r a d e s on November 30, b e i n g $9 t o $9.65, a s compared w i t h $12 t o $12.25 on October 3 0 . [Other Crops - The t o b a c c o s i t u a t i o n h a s shown b u t v e r y l i t t l e change d u r i n g t h e p a s t month. The opening of t h e w e s t e r n dark m a r k e t s i n Kentucky was d i s a p p o i n t i n g t o t h e f a r m e r s b e c a u s e of t h e p r e v a i l i n g low 58 •6"" X-30Q8 p r i c e s , t o g e t h e r w i t h t h e d e c r e a s e d demand. I n D i s t r i c t No* 5 (Richomnd) " t h s f a r a e r s have shewn a tendency t o s e l l t h e i r o f f - c o l o r andi p o o r e r g r a d e s , a p p a r e n t l y h o l d i n g t h e i r b e s t tobacco u n t i l a f t e r t h e h o l i d a y s i n t h e hope of b e t t e r p r i c e s " . Export demand f o r l e a f tobacco i s very small, w h i l e m a n u f a c t u r e r s 1 s t o c k s a r e r e p o r t e d l a r g e ax>4 t h e i r p u r c h a s e s have been kept a t a minimum. The s l a c k e n i n g of demand f o r manufactured goods c o n t i n u e s , w i t h t h e r e s u l t t h a t some f a c t o r i e s a r e c l o s e d w h i l e o t h e r s a r e running only on p a r t t i m e . The d e c r e a s e d demand i s most n o t i c e a b l e i n t h e c a s e of c i g a r s , and t h e r e t a i l e r s * o r d e r s a r e f a l l i n g off i n consequence. Fruits - Shipments of C a l i f o r n i a f r u i t have been very s a t i s f a c t o r y , and t r a n s p o r t a t i o n f a c i l i t i e s have been e x c e l l e n t t h r o u g h o u t t h e s h i p p i n g season. While t h e boxed a p p l e crop i s p l a c e d a t 2 7 , 6 3 3 , 0 0 0 boxes, a s compared w i t h 35,^-5*000 boxes i n l $ i y , approximately t w o - t h i r d s of t h e crop i s out of t h e p r o d u c i n g d i s t r i c t s and s t o r a g e h o l d i n g ovar much smaller t h a n i n 1919* Shipments of oranges a r e s l i g h t l y below shipment3 during t h e same p e r i o d l a s t year, but shipments of lemons have been t h e l a r g e s t ever r e c o r d e d i n C a l i f o r n i a . Brain and Flour - The movement of g r a i n t o market h a s v a r i e d somewhat a t different centers. In D i s t r i c t No. 10 (Kansas C i t y ) , November wheat r e c e i p t s a t the p r i n c i p a l markets were a b o u t 13 p e r cent l a r g e r t h a n t h s r e c e i p t s f o r t h e month of October, but were 11,6 p e r cent below t h e r e c e i p t s of November, 1919- On the o t h e r hand, i n D i s t r i c t No. 9 (Minneapolis) r e c e i p t s a t Minneapolis and Duluth were 1 5 . 5 p e r c e n t below October r e c e i p t s , but were 4 7 . 1 p a r c e n t above r e c e i p t s f o r November, -71919- X-3008 I t i s r e p o r t e d t h a t about >0 p a r cent of t h i s y e a r ' s crop i s s t i l l on t h e farm a s a g a i n s t a b o u t 35 p e r cent a t the same time l a s t year. In D i s t r i c t No, 10 " n o t w i t h s t a n d i n g . t h e f a c t t h a t a bumper crop of corn was r a i s e d in t h e b i g corn-producing S t a t e s a s compared w i t h t h e s n a i l crop of l a s t y e a r , the primary r e c e i p t s of corn a t t h e markets of t h i s D i s t r i c t were about 42 par cent b s l o s the r e c e i p t s i n t h e sane p e r i o d of 1919". In Minneapolis and Duluth corn r e c e i p t s were s l i g n t l y above November, 1519# and more t h a n double r e c e i p t s f o r October, 1J20. R e c e i p t s of o a t s , b a r l e y , rye, and f l a x decreased a s compared w i t h October, but i n - e a c h case were above r e c e i p t s f o r November, 1919- The p r i c e s of g r a i n s throughout t h e v a r i o u s markets have shown a d e c l i n e w i t h only a few minor e x c e p t i o n s . The c l o s i n g p r i c e of cash wheat No. 1 dark n o r t h e r n a t Minneapolis on November 30 was $ 1 , $ 0 - 7 / 8 t o $1.5^—7/8, w h i l e t h e c l o s i n g p r i c e on October 30 was $2.13? t o $2.17i* In D i s t r i c t No. 10 (Kansas C i t y ) i t i s r e p o r t e d t h a t "wheat p r i c e s r a l l i e d t h e f i r s t week i n December a f t e r a continued d e c l i n e i n November, but a t t h e end of t h e second week a weakness was developed which brought wheat down almost t o t h e low l e v s l of t h e l a s t week i n November". The f l o u r market c o n t i n u e s d u l l . " M i l l e r s r e p o r t c o n d i t i o n s int.heir b u s i n e s s t h e most u n s a t i s f a c t o r y e x p e r i e n c e d i n r e c e n t y e a r s " , s t a t e s t h e r e p o r t from D i s t r i c t No. 8 ( S t . L o u i s ) . Hard-wheat p a t e n t s were quoted i n Kansas City on December 14 a t $8-50 t o $9, a s compared w i t h $9*35 t o $ 9 - 5 ° on November l 6 . Aside from t h e absence of demand, p a r t i c u l a r complaint i s made of t h e i n s t a b i l i t y of wheat of the f l o u r market. f u t u r e s and t h e r e s u l t i n g d i s o r g a n i z a t i o n There h a s been a f u r t h e r slowing down of m i l l i n g oper tions in t h i s D i s t r i c t . The t o t a l output of a s e l e c t e d group of m i l l s i n November was 1 , 2 8 5 , 1 5 5 b a r r e l s , a s compared w i t h 1 , 9 7 0 , 9 7 7 i n November, I919, and o p e r a t i o n s d u r i n g t h e s i x weeks * r °- X-3008 ending December 11 have been at 53-3 per cent of capacity, as compared wi„h 87-8 per cent f o r the same period l a s t year. Production in L i s t r i c t No. 9 (Minneapolis) during the four weeks ending November 27 was 2,469,1*95 b a r r e l s , an increase c f . 8 r e t cent over the f i g u r e of 2,279,990 b a r r e l s for the four week s ending October 30, but was only 80 per cent of output a year ago, which was 3,012,465 b a r r e l s . Present operations are at 52 per cent of capacity, as compared with 69 per cent a year ago. i n D i s t r i c t No. 2 (St. Louis) are only 45-50 per cent Mill operations 0f capacity. St. Louis m i l l s have a f f e c t e d a cut i n wages of a l l operatives of 50 cents a day. C ott _ 9» t e x t i l e s . - Although a s l i g h t increase in the buying of cotton by New England m i l l s has occurred during the past month, according to the r s n o r t from D i s t r i c t No. 1 (Boston), purchases have been much below normal, while m i l l s in the Carolinas are said "to have been out of the market for some time" ( D i s t r i c t No. 5, Richmond). In view of the l i m i t e d demand and the size of the crop, which, according to f i n a l estimates of the Department of Agriculture w i l l amount to 12,987,000 bales, i t i s not s u r p r i s i n g t h a t p r i c e declines have been continuously recorded. From November 20 to December 20 there was a decline of s l i g h t l y more than 10 per cent in the price of snot cotton i n New York; while the f a l l from the maximum -price recorded i n J u l y amounted to 63-75 P-r cent. For 22 towns in the Carolines the Bureau of Markets quoted or ices averaging only l 4 . 4 l on December 11, and D i s t r i c t No. 5 (Richmond) r e p o r t s that the market was limited even a t t h i s low l e v e l . The New England m i l l s are estimated to have been operating at even lower capacity during the middle of December than they were during the previous month, when 30 per cent to 40 p r cent of operating capacity r s ^ r e s e n t e d the average f o r D i s t r i c t No. 1 ( B o s t o n ) . I n D i s t r i c t So. 5 -9- X-3008 (Richmond) i t is s t a t e d t h a t in Gaston County, N. C. , vrhoro t h e f i n e - y a r n i n d u s t r y of t h e D i s t r i c t id l a r g e l y aoncontratcti,. the n i l Is have cl.oaod doxm e n t i r e l y . The r e p o r t on c o t t o n consumption issued by t h e Census Bureau in IIovcnbvr r e f l e c t s t h e c e s s a t i o n of m nu fa c t ur in ft a c t i v i t y , t h e amount consumed, 332,057 b i l e s , f a l l i n g below t h a t r e p o r t e d f o r Au.rust, 1914, by 51,943 bales* The c o t t o n consumption of t h e N cv,-- England n i l I s f o r t h e month ending November 30 was only 100,402 b a l e s , as compared with 168,16? ba) os .reported f o r August* On t h e other hand, t h e reduction in c o t t o n s t o c k s of t h e s e m i l l s from 610,311 b a l e s in oboist t o 463,369 b a l e s in October r e s u l t e d in the i n c r e a s e d buying p r e v i o u s l y r e f e r r e d t o and caused a s l i g h t i n c r e a s e in stocks held t o be r e g i s t e r e d in November, whan 485.651 b a l e s on hand were reported. D i s t r i c t Mo. 1 (Boston) says t h a t t h e r e i s "a more d i s t i n c t note of optomisn in the Boston wool t r a d e t h a n f o r some t i m e , i t b o i n e s t i m a t e d t h a t s a l e s f o r t h e second week in December amounted t o 6,000,000 pounds, about e q u a l l y divided between domestic and f o r e i g n , " B r i t i s h Government h o l d i n g s , however, o f f e r e d a t a u c t i o n the second week i n December r e s u i t e a in s a l e s f only 1,500 b a l e s out of a t o t a l o f f e r i n g of 7,400 b a l e s . While t h e r e i s as y e t no evidence of r e a c t i o n from t h e depression p r e v a i l i n g in t h e market f o r woolen and worsted t e x t i l e s , D i s t r i c t No, 3 ( P h i l a d e l p h i a ) s t a t e s t h a t two or t h r e e largo m i l l s r e p o r t i n c r e a s e d idmand f or d r e s s jxoods, more p a r t i c u l a r l y women's wear. On the other hand, some m i l l s in t h e D i s t r i c t are f u r t h e r reducing t h e s c a l e of o p e r a t i o n s or c o n s i d e r i n g a comp l e t e suspension of o p e r a t i o n s - Yarn m i l l s in D i s t r i c t No, 3 ( P h i l a d e l p h i a ) r e p o r t l e s s b u s i n e s s than during t h e preceding month, even w i t h y a m p r i c e s 50 per cent t o 60 per cent below t h e peak p o i n t s , "Manufacturers of h o s i e r y , underwent-, s w e a t e r s , e t c . / ' i t i s s a i d , "have s u f f i c i e n t y a r n s t o enable those who a r e o p e r a t i n g a t a l l t o m a i n t a i n t h e i r c u r t a i l e d schedules*" The American V/oolen Co. 1 s a u c t i o n s a l e of 9,000 p i e c e s of o v e r c o a t i n g (Dec, 14-16) brought p r i c e s of about 25 per cent t o 40 per cent of t h o s e p r e - v a i l i n g a t t h e open inn: l e v e l f o r 1920* Hosiery, - P r a c t i c a l l y no b u s i n e s s i s being t r a n s a c t e d i n h o s i e r y l i n e s in D i s t r i c t No* 3 ( P h i l a d e l p h i a ) , as a r e s u l t of the u n c e r t a i n t i e s of p r i c o f l u c t u a t i o n s which have been aggravated by f o r c e d s a l e s of s t o c k s . As a r e s u l t , i t i s e s t i m a t e d t h a t the operating c a p a c i t y of t h e m i l l s i s l e s s t h a n 20 per cent of normal. Returns r e c e i v e d f o r November from 34 r e p o r t i n g f i r m s in t h e h o s i e r y i n d u s t r y , which s e l l t o t h e wholesale t r a d e , show a r e d u c t i o n in t h e value of t h e producttmanufactured during t h e month ( s e l l i n g p r i c e ) of 74 per cent as compared w i t h t h e same month i n 1919 and 18.8 per cent as compared w i t h t h e previous month. The v a l u e of f i n i s h e d p r o d u c t s on hand a t t h e endofcf t h e month ( s e l l i n g p r i c e ) was 95.2 per cent i n excess of s t o c k s h e l d a y e a r azo. There was, however, a r e d u c t i o n of 5 , 9 per cent as compared w i t h t h e previous month. U n f i l l e d o r d e r s on hand a t t h e end of t h e month ( s e l l i n g p r i c e ) had dropped 87,5 per cent os compared w i t h November, 1919, and 2 1 . 1 per cent as compared w i t h t h e preceding month. Six r e p o r t i n r f i r m s which s e l l t o t h e r e t a i l t r a d e show a d e c r e a s e i n t h e value of t h e product manufactured of 64.3 per cent as compared w i t h November, 1919, and 24.8 per c e n t as compared w i t h t h e p r e v i o u s month? U n f i l l e d orders on hand a t t h e end of t h e month ( s e l l i n g p r i c e ) were 6,2 per cent l e s s than during t h e previous month, which hnd r e g i s t e r e d a g r e a t d e c r e a s e of 71,8 per cent as compared w i t h September. S i m i l a r c o n d i t i o n s p r e v a i l i n t h e underwear i n d u s t r y in D i s t r i c t Mo. 3 ( P h i l a d e l p h i a ) , many m i l l s being c l o s e d , w h i l e o t h e r s a r e o p e r a t i n g a t from 20 per c e n t t o 40 per c e n t of c a p a c i t y . The mild weather has a l s o i n t e r f e r e d w i t h t h e p l a c i n g of a d d i t i o n a l o r d e r s f o r heavy-weight goods and s t o c k s a i r e dy m anuf actured have been s o l d a t s a c r i f i c e , Twenty-one concerns manu- f a c t u r i n g underwear, l o c a t e d i n D i s t r i c t No. 3 (P h i l a d e l p h i a ) , r e c o r d a d e c r e a s e i n t h e v a l u e of t h e product manufactured of 63.9 per c e n t d u r i n g 33 November, 1920, as conpared w i t h November, 1919, and " w i t h t h e preceding month. per c e n t ae compared Finished products on hand a t t h e end of t h e month were 322.1 per c e n t i n excess of amounts h e l d a t t h e end of November, 1919, and showed only a n e e l i g i b l e d e c r e a s e of 1,6 per cent as compared w i t h t h e previous month of October. Orders booked during t h e month were 25.7 per c e n t l e s s t h a n d u r i n g t h e corresponding month l a s t y e a r and 16.5 per c e n t l e s s t h a n i n October, U n f i l l e d orders a t t h e end of t h e month were 95.8 per centbelcw t h e amounts o u t s t a n d i n g a t t h e end of November, 1919. T h i r t y - f i v e f i r m s b e l o n g i n g t o t h e N a t i o n a l A s s o c i a t i o n of F i n i s h e r s of Cut F a b r i c s , which r e p r e s e n t 72 per cent of t h e w h i t e goods, 62 per c e n t of t h e dyed goods, and 32 per c e n t of t h e p r i n t e d goods,, r e p o r t t h e t o t a l mumber of y a r d s f i n i s h e d during t h e month of November, 1920, as 40,591,156 as compared w i t h 52,833,213 yards f i n i s h e d during t h e p r e c e d i n g month of October. The p e r c e n t a g e of c a p a c i t y operated d u r i n g t h o month averaged for 25 per c e n t ' a l l r e p o r t i n g f i r m s as a g a i n s t 35 per cent d u r i n g t h e preceding month. Tho f i r m s l o c a t e d i n D i s t r i c t s 1 (Boston) and 2 (New York) had an o p e r a t i n g p e r c c n t a g e e s l i g h t l y below t h e a v e r a g e , t h e f i g u r e s being 21 per ccnt i n each c a s e , whereas D i s t r i c t No. 3 ( P h i l a d e l p h i a ) r e p o r t e d o p e r a t i n g c a p a c i t y of 38 per cent. The average number of d a y s ' work ahead a t t h e end of November was 4 . 3 as conpared w i t h 4 . 4 f o r t h e p r e c e d i n g month. Thero has b o . n v e r y l i t t l e change i n t h e p a s t month, as t h e r e has t o c r e a t e a buying demand. raw s i l k market during t h e been no gonera1 i n c r e a s e of m a n u f a c t u r i n g a c t i v i t y In P a t e r s o n loons a r e working a t 6 . 7 per c e n t of t h e i r maximum c a p a c i t y i n terms of loom h o u r s as compared w i t h 8 . 6 per c e n t l a s t month. Elsewhere i n New J e r s e y t h e d e p r e s s i o n i s n o t so e x t r e m e , however. I n d e e d , D i s t r i c t No. 3 ( P h i l a d e l p h i a ) r e p o r t s a renewal of i n t e r e s t - o n t h e - 12 - X-5008 " p ^ r t of b u y e r s f o r d r e s s and w a i s t h o u s e s , w i t h t h e r e s u l t t h a t some m i l l s which were s h u t down have resumed o p e r a t i o n s , two of t h e l a r g e s t m i l l s a t f u l l time. Improvement, however, i s by no means g e n e r a l , many f i r m s i n t h e D i s t r i c t showing; no s iecns of i n c r e a s e d a c t i v i t y . Shoes and l e a t h e r , - Leather p r i c e s have s u f f e r e d f u r t h e r d e c l i n e s , heavy n a t i v e s t e e r (packer h i d e s ) s e l l i n g f o r 16 c e n t s and 19 c e n t s per pound on December 15, as compared with 53 c e n t s in August, 1919* Calfskins s e l l i n g as h i :h as $1 in August, 1919, were quoted a t 15 c e n t s t h e middle of t h e p r e s e n t month. As a m a t t e r of f a c t , q u o t a t i o n s a r e l a r g e l y nominal i n t h e absence of any g e n e r a l buying demand. Reports r e c e i v e d from 24 r e p r e s e n t a t i v e boot and shoe m a n u f a c t u r e r s of New England about t h e middle of November i n d i c a t e d t h a t c o n d i t i o n s were a t l e a s t no worse i n t h a t i n d u s t r y t h a n d u r i n g t h e p r e c e d i n g month, s i x con* oerns r e p o r t i n g a d e c r e a s e d p r o d u c t i o n , being o f f s e t - b y s i x which had i n c r e a s e d t h e i r o u t p u t , w h i l e t h e o t h e r 12 r e p o r t e d c o n d i t i o n s t o be unchanged. The m a j o r i t y of t h e s e concerns r e p o r t e d shipments t o be e i t h e r equal t o or i n excess of t h o s e of t h e p r e c e d i n g month* I r o n and s t e e l . - F u r t h e r d e c r e a s e s i n t h e p r i c e s of i r o n and s t e e l p r o d u c t s have occurred , and i n p r a c t i c a l l y a l l items t h e wide " s p r e a d " which s e p a r a t e d independent p r i c e l e v e l s from t h o s e of t h e l e a d i n g i n t e r e s t has I t i s r e p o r t e d from D i s t r i c t No* 3 ( P h i l a d e l p h i a ) that, udemand prominent, i n most l i n e s , more however, i n s t o o l p l a t e s and o t h e r f i n i s h e d aisappeared. p r o d u c t s , i s almost e n t i r e l y a b s e n t / 1 and " c a n c e l l a t i o n s have become more prevalent. 1 The v p f i l l o d o r d e r s of t h e United S t a t e s S t e e l C o r p o r a t i o n d e - c r e a s e d from 9,636,852 t o n s r.t t h e c l o s e of October t o 9 , 0 2 1 , 4 8 1 t o n s at t h e c l o s e of November, t h e r e s p e c t i v e index numbers b e i n g 187 and 171* The market s i t u a t i o n i s r e f l e c t e d i n t h e continued d e c r e a s e i n p r o d u c t i v e a c t i v i t y P i g - i r o n p r o d u c t i o n d u r i n g November was 2 , 9 3 4 , 9 0 8 t o n s , c o r r e s p o n d i n g t o an - 13 - x-3 008 0 5 .index number of 127, a s compared w i t h 3#292, 597 t o n s d u r i n g October, c o r r e s ponding t o an index number of 142. S t e e l - i n g o t p r o d u c t i o n l i k e w i s e decreased, from 3 , 0 1 5 , 9 6 2 t o n s d u r i n g October t o 2 , 6 3 8 , 6 7 0 t o n s d u r i n g November, the r e s p e c t i v e index numbers b e i n g 125 and IC9. S t r u c t u r a l s t e e l bookings d u r i n g November were U9>200 t o n s , or 27 p e r cent of c a p a c i t y , a s a g a i n s t 45,600 t o n s , or 25% p e r cent of c a p a c i t y d u r i n g October. C u r t a i l m e n t of o p e r a t i o n s i n D i s t r i c t No. 3 ( P h i l a d e l p h i a ) has p r o g r e s s e d more r a p i d l y d u r i n g t h e c u r r e n t month t h a n any time p r e v i o u s , and almost w i t h o u t e x c e p t i o n r e p o r t s i n d i c a t e t h a t p r e s e n t o p e r a t i o n s a r e only a t 40 p e r c a n t of c a p a c i t y , while f u r t h e r decrease i s planned. A number of independent s t e e l works i n D i s t r i c t No. 4 a r e shut down completely, a s a r e many merchant b l a s t f u r n a c e s which have been a c c u m u l a t i n g s t o c k s of p i g i r o n , while many independent s t e e l p l a n t s a r e o p e r a t i n g a t n o t over 50 p e r cent t o 60 p e r c e n t . A decided c o n t r a s t , however, e x i s t s between t h e s i t u a t i o n of t h e independents and t h e l e a d i n g i n t e r e s t . The l a t t e r e n t e r e d lar&a o r d e r s i n p a s t months a t t h e minimum p r i c e s and h a s bean enabled t o keep up o p e r a t i o n s on t h e s e o r d e r s , v a r i o u s s u b s i d i a r i e s now o p e r a t ing a t about 90 p e r c e n t of c a p a c i t y . Accompanying r e a d j u s t m e n t p r o c e s s i n t h e i n d u s t r y have been wage r e d u c t i o n s announced by v a r i o u s independent p r o d u c e r s , C o a l . - P r o d u c t i o n of bituminous coal h a s continued upon a high l e v e l . The November f i g u r e was 51, 012, 000 t o n s , c o r r e s p o n d i n g t o a n index number of 138, a s compared w i t h 50,744,000 t o n s d u r i n g October, and 18,688, OCOtons d u r ing November, 1919, t h e r e s p e c t i v e index numbers b e i n g 137 and 50. The output f o r t h e week ending December 4 s e t a new h i g h r e c o r d f o r t h e y e a r , b u t was b e t t e r e d d u r i n g t h e f o l l o w i n g week. This was i n s p i t e of t h e f a c t t h a t on November 2 9 t h e p r i o r i t y i n t h e use of open-top c a r s was withdrawn c o m p l e t e l y . Demand i s n o t a s i n s i s t e n t , w i t h t h e l e s s e n e d a c t i v i t y i n v a r i o u s i n d u s t r i e s , and t h e r e h a s been a marked f a l l i n g off i n t h e e x p o r t t r a d e , i n p a r t i c u l a r l u r i n g t h e p a s t two months. The f u e l s i t u a t i o n t h u s i s e a s i e r i n c e r t a i n s e c t i o n s , s o t h a t , f o r example, i n D i s t r i c t No. 8 ( S t . L o u i s ) , " d a i l y improvement i s r e p o r t e d " . - 14 - . X-3008 6 6 Coke has oxpcrioncod a f u r t h e r d c c l i n e i n p r i c e . P r o d u c t i o n of a n t h r a c i t e c o a l during Novonbor was 7,519,000 t o n s , as conparod w i t h 8 , 1 8 8 , 0 0 0 t o n s in October and 7,070,000 tons i n Novonbor, 1919, and t h e r e s p e c t i v e index numbers being 102, 111, and 106* There has boon v i r t u a l l y no l o s s of t i n e from t r a n s p o r t a t i o n d i f f i c u l t i e s . E f f o r t s of t h e f a i r p r i c e c o n n i t t o c are r e p o r t e d frori D i s t r i c t No, 3 ( P h i l a d e l p h i a ) t o be h o l d i n g down nine p r i c e s t o o f a i r margin of p r o f i t above c o s t of p r o d u c - t i o n and t o have been l i m i t i n g t h e r o h a n d l i n g of c o a l by w h o l e s a l e r s * The market i s boconing nore s t e a d y and complaints of s h o r t a g e s f r o n e a s t e r n c i t i e s a r c becoming l o s s numerous. P e t r o l o u n . - Novonbor crude petroleum p r o d u c t i o n i n D i s t r i c t No, 11 ( D a l l a s ) was 13,347,352 b a r r e l s , a new r e c o r d , as compared w i t h 12,277,197 b a r r e l s during October. P r o d u c t i o n i n D i s t r i c t No, 10 (Kansas C i t y ) , however, i e commencing t o show a s l i g h t d e c l i n e from t h e peak i n October, I t is r e - ported t h a t p r o d u c t i o n i s in excess of t h e amount which can bo handlod r e a d i l y by the pipe l i n e s and r e f i n e r s a r c t e m p o r a r i l y s t o r i n g some o i l - Drilling a c t i v i t i e s i n Texas have been s t e a d i l y d e c l i n i n g s i n c e J u l y , and t h i s i s p a r t l y a t t r i b u t a b l e t o t h e overtaxed c o n d i t i o n of pipo l i n e s and s t o r a g e i n many of t h e most a c t i v e f i e l d s * Operators in some of t h e f i e l d s i n D i s t r i c t No. 10 (Kansas C i t y ) a r c c u r t a i l i n g developments t o some e x t e n t , b u t e x t e n s i v e enlargements of r e f i n e r i e s are in progress* The petroleum market i n t h a t D i s t r i c t i s e x p e r i e n c i n g t h e u s u a l seasonal d u l l n e s s , 11 b u t t h e r e has been no g e n e r a l or sweeping d e c l i n e i n e i t h e r crude petroleum or i n i t s r e f i n e d products*" A r e d u c t i o n i n t h e p r i c e of crude o i l of 50 c e n t s per b a r r e l was announced i n November i n t h e Texas c o a s t a l f i e l d s , due t o t h e h e a v i l y increased production. Subsequently r e d u c t i o n s of 15 t o 25 c e n t s per b a r r e l were r e p o r t e d i n t h e f u e l o i l markets of n o r t h Texas* 07 - 15 — yv.- j (/0 i Nonferrous m e t a l s . - F u r t h e r i s ^ f w a s e of a c t i v i t y was noticed. In/ the z i n c i n d u s t r y i n D i s t r i c t No, 10 (Kansas C i t y ) d u r i n g November. SMx/iuents of z i n c ore from the Missouri-Kansas-Oklahoma s o u t h w e s t e r n d i s t r i c t d u r i n g November were 37,470 t o n s , as compared w i t h 40,479 tons d u r i n g the sacremonth l a s t y e a r - Shipments of l e a d o r e , however, were somewhat g r e a t e r than i n November 1919» b e i n g 6,368 t o n s , as a g a i n s t 6,210 t o n s . The average p r i c e of z i n c ore was t h e lowest average p r i c e f o r any month of the y e a r , the p r i c e b e i n g *40 p e r ton a t the opening of the month and 2 ) 2 , 9 5 ..at t h e close. Lead p r i c e s dropped $10 p e r t o n . A d d i t i o n a l p r o p e r t i e s s h u t down in the D i s t r i c t , many f o r t h r e e to f o u r months, and mines c o n t i n u i n g to o p e r a t e were f o r c e d t o c u t wages, "beginning December 1 , from 10 to 25 p e r ' c e n t , r e d u c t i o n s t o remain i n e f f e c t as long as p r e s e n t z i n c p r i c e s p r e v a i l P r o d u c t i o n of r e f i n e d copper i n D i s t r i c t No. 9 ( M i n n e a p o l i s ) , as r e p o r t e d by companies producing 75 p e r c e n t of the t o t a l o u t p u t of t h e D i s t r i c t , was 19,926,725 tons d u r i n g November, as compared w i t h 20, 194,498 tons d u r i n g October and 2 5 , 1 5 6 , 5 6 3 tons d u r i n g November, 1919* The d e c r e a s e i s a s c r i b e d to the l a c k of e x p o r t demand and p r e v a i l i n g low p r i c e s , The number of miners employed d e c r e a s e d 12 p e r c e n t from October t o November, o r from 27,035 to 2 3 , 8 0 5 , as compared w i t h 29,374 f o r November, 1919• Wages were reduced i n Michigan e i t h e r i n November or on December 1, a l t h o u g h n o t i n Montana* Trade s o u r c e s i n d i c a t e some r e c o v e r y b o t h i n p r i c e and i n demand i n t h e n o n f e r r o u s m e t a l markets as a whole a t t h e opening of December, b u t t h i s was soon f o l l o w e d by a r e a c t i o n , and lower p r i c e l e v e l s were r e a c h e d . The p r i c e of l e a d was reduced b y t h e l e a d i n g i n t e r e s t on December 3 t o f i v e c e n t s , which was t h e o u t s i d e market l e v e l and on December 21 t o 4 . 7 5 c e n t s , b u t demand has c o n t i n u e d l i g h t i n t h i s r r e t a l , a s w e l l as i n c o p p e r , z i n c , and t i n . ' ™ U ' ~ 68 X-3008 Eiaplpyrcent and, wages. - An i n c r e a s i n g p e r c e n t a g e of unemployment i s n o t e d throughout the c o u n t r y , t u t the s i t u a t i o n i s most s e r i o u s i n the eastern d i s t r i c t s , e s p e c i a l l y i n the m a n u f a c t u r i n g c e n t e r s , where m i l l s and f a c t o r i e s are e i t h e r c l o s e d or o p e r a t i n g on p a r t - t i m e s c h e d u l e s , Wage r e d u c t i o n s have a l s o "become more g e n e r a l d u r i n g the p a s t month, e s p e c i a l l y i n the t e x t i l e i n d u s t r i e s , a l a r g e p e r c e n t a g e of the New England m i l l s having announced wage c u t s of about 22$ p e r c e n t , e f f e c t i v e December 2 0 . D i s t r i c t No. 1 (Boston) s a y s : "The c l o s i n g of the worsted m i l l s i n Lawrence the l a s t week i n November a f f e c t e d approximately 1,500 employees, while some l6,OCO have b e e n a f f e c t e d by wage r e d u c t i o n s i n the c o t t o n m i l l s ; wage r e d u c t i o n s i n Lowell, Mass., i n the c o t t o n m i l l s involve 25,000 employees and i n New Bedford, Mass., about 40, COO; i n Manchester, N. H., upward of l 6 , 0 0 0 a r e a f f e c t e d b y reduced wage schedules announced t o take e f f e c t on J a n u a r y 3» 1921," The Massachusetts Department of Labor and I n d u s t r i e s e s t i m a t e s t h a t 25 p e r c e n t of the membership of r e p o r t i n g unions were unemployed t h e middle of December, while i n many i n s t a n c e s working h o u r s have been c u r t a i l e d I n D i s t r i c t No. 2 (New York) i t i s s t a t e d t h a t the number of workers i s about 20 p e r c e n t below the maximum reached i n the s p r i n g . The p r i n c i p a l d e c l i n e d u r i n g December occurred i n t h e m e t a l and k i n d r e d i n d u s t r i e s i n , u p p e r New York S t a t e , b u t i n t h i s D i s t r i c t a l s o the most s e r i o u s c o n d i t i o n s p r e v a i l i n the t e x t i l e and c l o t h i n g t r a d e s , i t b e i n g e s t i m a t e d t h a t only 5»000 the 65,000 n o r m a l l y employed i n men's c l o t h i n g f a c t o r i e s i n New York C i t y a r e now a t work* I n f a c t o r i e s engaged i n t h e manufacture of women's c l o t h i n g , about 40 p e r c e n t of the 75,000 workers o r d i n a r i l y employed are s t i l l r e t a i n e d . In P a t e r s on employment i n the s i l k m i l l s i s about 10 p e r c e n t of normal* The X-3006 New York r e p o r t f u r t h e r s a y s : "Those i d l e i n Rochester i n c l u d e 9>200 c l o t h i n g f a c t o r y workers and. 5.000 s h o e - f a c t o r y w o r k e r s , and t h e remainder are made up from t h o s e f o r m e r l y employed i n the b u i l d i n g and m e t a l t r a d e s and m i s c e l l a n e o u s f a c t o r y e n t e r p r i s e s . In Syracuse 100 f a c t o r i e s f o r m e r l y employing 40,000 p e r s o n s have l a i d off 18,72$. fiuburn, F u l t o n , and Oneida, p r o v i d i n g employment f o r 15,000 i n the e a r l y s p r i n g , now employ 1 0 , 0 0 0 . The d e p r e s s i o n i n the lmxt-gcods t r a d e has been r e f l e c t e d i n U t i c a and Cohoes, where only about 13 p e r c e n t of t h e maximum number of s u c h workers are now employed. In Troy e i g h t of the n i n e l a r g e c o l l a r and s h i r t f a c t o r i e s were c l o s e d d u r i n g December, making i d l e 10,000 w o r k e r s , mostly women and girls. In Rome, I l i o r i , L i t t l e F a l l s , and Herkimer, where about 23,500 persons were employed l a s t s p r i n g , 8,500 are now i d l e . These f i g u r e s and the more g e n e r a l d a t a f o r t h e S t a t e as a whole r e f e r i n the main t o persons working i n i n d u s t r i a l e s t a b l i s h m e n t s who c o n s t i t u t e i n t h i s S t a t e about o n e - t h i r d of the wage-earning p o p u l a t i o n . Other types of workers have been much l e s s a f f e c t e d b y the s l a c k e n i n g i n b u s i n e s s a c t i v i t y . " In the s o u t h e a s t e r n d i s t r i c t s a l s o c o n s i d e r a b l e unemployment e x i s t s , , although c o n d i t i o n s a r e not so a c u t e . The t e x t i l e m i l l s i n t h e s e s e c t i o n s have l i k e w i s e reduced wages anywhere from 20 p e r c e n t t o 25 p e r c e n t . D i s t r i c t No. 8 ( S t . Louis) says t h a t a l t h o u g h unemployment i s much l e s s marked than elsewhere i n the c o u n t r y " i t has n o t i c e a b l y i n c r e a s e d d u r i n g the p a s t 30 d a y s , " the lumber, f u r n i t u r e , c l o t h i n g , and m e t a l i n d u s t r i e s b e i n g most a f f e c t e d . So f a r wage r e d u c t i o n s i n t h i s D i s t r i c t have been insignificant. In D i s t r i c t No. 10 (Kansas C i t y ) r e p o r t s i n d i c a t e " v e r y g e n e r a l unemployment, due i n p a r t t c the u s u a l w i n t e r slowing down b u t a l s o r e s u l t i n g from l a c k of demand f o r l o c a l p r o d u c t s . The c u r t a i l m e n t of o p e r a t i o n has b e e n f a i r l y g e n e r a l ; o c c u r r i n g i n the mining and p e t r o l e u m i n d u s t r i e s , i n r a i l r o a d i n g , and to some e x t e n t i n m e r c a n t i l e e s t a b l i s h m e n t s . " i*n e x c e p t i o n t o t h i s s i t u a t i o n i s n o t e d , however, i n t h e c o a l mines of M i s s o u r i , Kansas, Oklahoma, and Arkansas, where the p e r c e n t a g e of unemployment i s l e s s than d u r i n g p r e c e d i n g months. Reports from 144 of the l a r g e r i n d u s t r i a l e s t a b l i s h m e n t s i n f i v e l e a d i n g towns i n Oklahoma; which employ a t o t a l of 17,000 p e r s o n s , show a r e d u c t i o n of f o r c e s amounting on the average to about 7 p e r c e n t . Oil r e f i n e r i e s i n some i n s t a n c e s have reduced the number of employees as much as 40 p e r c e n t . There have been some r e d u c t i o n s i n t h e f o r c e s of p a c k i n g h o u s e s , and f l o u r m i l l s i n c e r t a i n s e c t i o n s of the S t a t e have reduced t h e i r working f o r c e s n e a r l y 50 p e r c e n t . I t i s s a i d t h a t t h e r e i s more unemployment i n Colorado than a t any time f o r the p a s t t h r e e y e a r s , t h i s b e i n g e s p e c i a l l y t r u e f o r the t h r e e l a r g e s t cities. The b u i l d i n g t r a d e s , however, are s a i d t o be working s t e a d i l y and the s i t u a t i o n i n t h e c o a l and m e t a l l i f e r o u s mines i s good. I n Kansas, a l - though t h e r e i s some i n c r e a s e i n unemployment among u n s k i l l e d w o r k e r s , the s i t u a t i o n on the whole i s f a i r l y good. In Wyoming, a l s o , t h e r e h a s b e e n some unemployment, b u t i t has n o t been e x c e p t i o n a l l y pronounced. In D i s t r i c t No. 12 (San F r a n c i s c o ) unemployment i s i n c r e a s i n g , the unemployed i n the S t a t e of Washington b e i n g e s t i m a t e d a t 20,000, while i n P o r t l a n d 10,000 l a b o r e r s a r e s t a t e d t o be without work. Wholesale t r a d e . - During October t h e d e c l i n e i n t h e volume of n e t s a l e s of r e p o r t i n g w h o l e s a l e f i r m s had become q u i t e g e n e r a l not only as compared w i t h the p r e c e d i n g month, b u t w i t h the same month a y e a r a g o . The downward t e n d e n c y , c o n t i n u e d d u r i n g November,has become more pronounced i n l i n e s n o t p r e v i o u s l y so s e r i o u s l y a f f e c t e d . In D i s t r i c t No. 3 ( P h i l a d e l p h i a ) 26 r e p o r t i n g hardware f i r m s shew d e c r e a s e s of 1 0 . 1 p e r c e n t i n November as compared w i t h the p r e c e d i n g month, a l t h o u g h s a l e s a r e s t i l l 10.2 p e r c e n t i n e x c e s s of t h o s e f o r November, i g i g . The s a l e s of 51 w h o l e s a l e grocery -1 9~ X-300S houses i n the D i s t r i c t f e l l 15-8 p e r c e n t as compared, with a y e a r ago, although showing a n e g l i g i b l e i n c r e a s e over the p r e c e d i n g month. It is s t a t e d t h a t buying i n t h i s f i e l d i s l a r g e l y f o r immediate consumption. As a m a t t e r of f a c t , i n volume and number of s a l e s , the wholesale g r o c e r y b u s i n e s s i s probably about as a c t i v e as a year ago, b u t p r i c e r e d u c t i o n s have brought about d e c r e a s e s i n the money volume of s a l e s . In D i s t r i c t No. 4 (Cleveland) s l i g h t r e d u c t i o n s are shown i n volume of s a l e s of d r y goods and grocery f i r m s amounting t o 4.2 p e r c e n t and 3 . 8 p e r c e n t , r e s p e c t i v e l y , with 3 dry-goods houses and 13 grocery f i r m s r e p o r t i n g . On the o t h e r hand, hardware s a l e s (4 f i r m s r e p o r t i n g ) are s t i l l 16.7 p e r c e n t above those f o r November, 1919, while 3 wholesale drug concerns have i n c r e a s e d s a l e s 4 5 . 8 p e r c e n t as compared with November, 1919- In D i s t r i c t No. 5 (Richmond) wholesale hardware, houses r e g i s t e r e d d e c l i n e s of 7 . 8 p e r c e n t i n volume of s a l e s as compared w i t h a year ago and l4-$f p e r cent as compared with the month of October. In t h i s D i s t r i c t d e c l i n e s i n a l l l i n e s , namely, g r o c e r i e s , dry goods, boots and shoes, hardware, and f u r n i t u r e were r e p o r t e d , the percentage d e c r e a s e s as compared w i t h November, 1919, b e i n g 5*7 p e r c e n t f o r g r o c e r i e s (9 f i r m s r e p o r t i n g ) 2 p e r c e n t f o r d r y goods ( 8 f i r m s ) , 35*7 p e r c e n t f o r boots and shoes (9 f i r m s ) , and 84 p e r c e n t f o r f u r n i t u r e (4 f i r m s ) . Last year i t was s a i d t h a t : "At the c l o s e of November the r e - p o r t i n g fi'Cms had l a r g e amounts i n o r d e r s o u t s t a n d i n g , b u t t h i s y e a r the orders r e p o r t e d amount t o p r a c t i c a l l y n o t h i n g . Back o r d e r s with which the fell off, f i r m s began the y e a r have been f i l l e d as new b u s i n e s s o r e l s e have been c a n c e l e d b e f o r e shipment could be made. A d r y goods w h o l e s a l e r r e - p o r t e d #125,000 i n o u t s t a n d i n g orders on November 30, 1919» t u t only $3,000 on November 30, 1920- Another f i r m s e l l i n g the same l i n e e s t i m a t e s t h a t they had u n f i l l e d o r d e r s around a h a l f m i l l i o n d o l l a r s a t the end of November 72 " -20- 7-3008 l a s t y e a r , t u t had n o t enough t o mention t h i s y e a r on the same d a t e . A boot and shoe d e a l e r r e p o r t s #15,000 i n u n f i l l e d o r d e r s on November 30, 1920, compared w i t h $200*000 on the same d a t e a y e a r ago. Four f u r n i t u r e makers r e p o r t e d o u t s t a n d i n g o r d e r s as of November 30, 1920, as b u t $37i932» compared w i t h *909*^30 on the same d a t e l a s t y e a r . In D i s t r i c t No. 6 ( A t l a n t a ) average d e c r e a s e s are shown f o r a l l r e p o r t i n g l i n e s b o t h as compared w i t h November, 1919« and w i t h the p r e c e d i n g month, the d e c l i n e s b e i n g e s p e c i a l l y heavy i n the c a s e of d r y goods and shoes from the r e t u r n s of a year ago. The 11 r e p o r t i n g d r y goods f i r m s show average s a l e s d e c r e a s e s of 9*^ p e r c e n t as compared w i t h November, 12.2 1919» and p e r c e n t as compared w i t h t h e p r e c e d i n g month. S i m i l a r l y 9 wholesale shoe houses r e g i s t e r d e c l i n e s of 40*2 p e r c e n t and 31*5 p e r c e n t , respectively. Twelve grocery fifcms give average s a l e s 18.2 p e r c e n t "below the t o t a l s f o r the same month l a s t y e a r and 11,7 p e r c e n t lower t h a n those of the p r e c e d i n g month, while the corresponding f i g u r e s f o r 9 hardware f i r m s are 49-4 p e r c e n t and 9*5 P e r c@6t, r e s p e c t i v e l y . Decreases i n s a l e s as compared w i t h November, 1919, &re heavy f o r a l l r e p o r t i n g l i n e s i n D i s t r i c t No- 7 (Chicago), amounting to l 6 . 2 p e r c e n t f o r 23 g r o c e r y h o u s e s , 2 0 . 1 p e r c e n t f o r 8 shoe f i r m s , and 2 9 . 1 p e r c e n t f o r 8 d r y goods firms. A l l concerns r e p o r t c a u t i o u s buying and downward p r i c e t r e n d s . In D i s t r i c t No. 10 (Kansas City) the only e x c e p t i o n t o the downward movement i s found i n the c a s e of d r u g s , d e c l i n e s b e i n g e s p e c i a l l y heavy i n g r o c e r i e s and f u r n i t u r e as compared with a y e a r ago, w h i l e f u r n i t u r e , g r o c e r y , and hardware s a l e s are much below October a v e r a g e s . X-3008 In D i s t r i c t No. 11 ( D a l l a s ) , a l s o , the s o l i t a r y e x c e p t i o n to the g e n e r a l d e c l i n e s r e p o r t e d occurs i n wholesale d r u g s , s a l e s "being 8 p e r c e n t i n excess of those f o r November, 1919* although 21 p e r c e n t below the average f o r the p r e c e d i n g month, w i t h 5 f i n n s r e p o r t i n g . Four g r o c e r y 1920 f i r m s r e p o r t d e c l i n e s of 10 per c e n t from November( and 34 p e r - c e n t a s compared with November, 1919/ f o r 2 hardware c o n c e r n s , the d e c l i n e s are 3 P e r c e n t and 27 p e r c e n t , r e s p e c t i v e l y ; f o r 3 d r y goods f i r m s , 13 p e r c a n t and 29 p e r c e n t ; and f o r 2 d e a l e r e i n farm implements, 37 p e r cent and 47 p e r c e n t . In D i s t r i c t No. 12 (San F r a n c i s c o ) 137 wholesale f i r m s r e p o r t i n g f o r 8 l i n e s , namely, g r o c e r i e s , dry goods, hardware, d r u g s , shoes, s t a t i o n e r y , f u r n i t u r e , and auto t i r e s , show average d e c l i n e s as compared with t h e p r e c e d i n g month and w i t h November, 1919» drugs a g a i n b e i n g alone i n m a i n t a i n i n g an i n c r e a s e , having advanced 15«7 p e r c e n t as compared w i t h November, 1919* The d e c l i n e s as compared w i t h a y e a r ago amount to 32 p e r c e n t f o r auto t i r e s , 23-8 p e r c e n t f o r f u r n i t u r e , 33-3 P e r c e n t f o r shoes, 2 1 . 6 p e r c e n t f o r dry goods, 11.9 p e r o e n t f o r g r o c e r i e s , and 8 . 8 p e r c e n t f o r hardware. Declines from the averages of the p r e c e d i n g month were U7.7 p e r c e n t f o r auto t i r e s , 19-5 p e r c e n t f o r f u r n i t u r e , 28.2 p e r c e n t f o r s h o e s , 24.5 p e r c e n t f o r d r y goods, 14.7 p e r c e n t f o r g r o c e r i e s , 1 8 . 1 p e r cent f o r hardware, and 11-5 P e r c e n t f o r drugs• Demand i s r e p o r t e d t o be r e s t r i c t e d , buyers f i l l i n g only immediate needs, while c u r r e n t o r d e r s are small and, i n some c a s e s , p r a c t i c a l l y n e g l i g i b l e « - 22 - X-300K 7 4 R e t a i l t r a d e - The r e t a i l t r a d e s i t u a t i o n i s c h a r a c t e r i z e d by & continued l o w e r i n g of p r i c e s and an i n c r e a s e d volume of b u s i n e s s , Jua both t o t h e s e p r i c e r e d u c t i o n s and t o Christmas shopping. The -percentage i n c r e a s e of n e t s a l e s over t h o s e of November, 1919> i n - o s t o n wars 11.. i n P h i l a d e l p h i a 8 , 5 , i n Richmond 1 3 . 1 , and i n San F r a n c i s c o 11.3- ?ho cause of the comparatively l a r g e volume of b u s i n e s s d u r i n g November s w e l l e x p r e s s e d i n t h e r e p o r t from D i s t r i c t No. 10 (Kansas C i t y ) whicr, s a y s : "While t h i s may reasonably be a s c r i b e d i n p a r t a t l e a n t t o tx>e seasonal i n f l u e n c e s impart3d by t h e Christmas s p i r i t , i t i s q u i t e e v i d e n t t h a t t h e a t t r a c t i v e p r i c e s a t which goods a r e o f f e r e d a r e having a good d e a l t o do w i t h thb i n c r e a s e d volume of s a l e s " . It i s reported i n soa.e d i s t r i c t s t h a t p r i c e s a r e now a p p r o a c h i n g t h e replacement v a l u e s , w h i l e i t i s r e p o r t e d i n D i s t r i c t No, 8 ( S t . Louis) t h a t " t h e p a s t 30 days have been marked by numerous and d r a s t i c c u t s i n r e t a i l p r i c e s , but t h e r e d u c t i o n s a r e in a l a r g e measure i s o l a t e d and s p e c i a l i z e d . " The department s t o r e s a r e g r a d u a l l y l i q u i d a t i n g the l a r g e sums whicn were t i e d up i n s t o c k s when t h e p r e s e n t d e c l i n e s s t a r t e d , but t h e o u t s t a n d i n g o r d e r s a r e very low and l i t t l e a t t e n t i o n has been paid to t h e replacement of d e p l e t e d s t o c k s because they a r e h o l d i n g out w i t h t h e view t o r e s t o c k ing a t lower f i g u r e s during t h o e a r l y months of 1 ^21. This i s sh'-wn by t h e p e r c e n t a g e of o u t s t a n d i n g o r d e r s a t t h e end of November t o the t o t a l p u r c h a s e s during t h e c a l e n d a r year 1^19, which i s 7• I'1" - c a t o n , •+/• i n P h i l a d e l p h i a , and Jlo i n Richmond. B u i l d i n g - Causes o p e r a t i v e i n p r e c e d i n g months t o hamper t h e resumption of b u i l d i n g continued t o p r e v e n t a r e v i v a l of a c t i v i t y . The d e t e r r e n t e f f e c t s of h W ) wage l e v e l s and high p r i c e s vf b u i l d i n g m a t e r i a l s , t o g e t h e r w i t h r e s t r i c t e d f u n d s f o r investment have been a c c e n t u a t e d by -23 X-3003 tha u s u a l d e c l i n e t o be expected t n i a season? In New York S t a t e and n o r t h e r n New J e r s e y b u i l d i n g c o n t r a c t s f o r November were $20,000,000 below t h e October t o t a l , but c o n t r a c t s w i t h i n t h e d i s t r i c t f o r t h e 11 months p e r i o d were $579,>000,000, l b per cent i n excess of t o t a l s f o r t h e same p e r i o d i n 1919* In D i s t r i c t No. 4 ( C l e v e l a n d ) the decrease' i n t o t a l v a l u a t i o n of p e r m i t s f o r 12 c i t i e s f o r t h e same month l a s t year was 51 P e r cent and a s l i g h t l y g r e a t e r d e c l i n e occurred i n D i s t r i c t No. 5 (Richmond), where t o t a l s were 5^*& p e r cent below t h o s e f o r November, 1919-* In D i s t r i c t No* 6 ( A t l a n t a ) a few c i t i e s show i n c r e a s e s , but the g e n e r a l t r e n d i s downward* In D i s t r i c t No. 8 ( S t . Louis) L o u i s v i l l e , Memphis, and L i t t l e Rock a l l r e p o r t d e c l i n e s in t h e v a l u e of p e r m i t s , a s compared w i t h November, 1919* More i n q u i r i e s a r e s a i d t o have been r e c e i v e d by a r c h i t e c t s , b u i l d e r s , and c o n t r a c t o r s , but a c t u a l u n d e r t a k i n g s a r e few. In D i s t r i c t No.* 9 (Minneapolis) t h e number of p e r m i t s amount t o 81 p e r cent of t h e t o t a l f o r November, 1919> and the v a l u a t i o n i s only 33 p e r cent of t h a t of a y e a r ago. There was a d e c l i n e i n t h e number of p e r m i t s i n every c i t y except Fargo and Missoula, and d e c l i n e s i n v a l u a t i o n occurred i n a l l c i t i e s except S t . P a u l , Missoula, and Great F a l l s . I n D i s t r i c t No. 10 (Kansas C i t y ) t h e d e c r e a s e i n t h e v a l u e of p e r m i t s a s compared w i t h t h e same month l a s t year was 50.6 p e r cent, a l t h o u g h e s t i m a t e d c o s t s of b u i l d i n g up t o December 1 were 1 1 . 5 per cent l a r g e r t h a n d u r i n g t h e c o r r e s p o n d i n g p e r i o d l a s t year- I n D i s t r i c t No. 11 ( D a l l a s ) t h e v a l u e of p e r m i t s i s s u e d i n 9 l e a d i n g c i t i e s was 42,9 p e r cent below v a l u a t i o n s i n November, 1919* a l t h o u g h t h e t o t a l number of p e r m i t s i n c r e a s e d from 1,387 t o 2,001 # As a m a t t e r of f a c t , heavy d e c r e a s e s i n Fort Worth, S h r e v e p o r t , D a l l a s , and El Paso account f o r t h e drop, a s elsewhere i n c r e a s e s had o c c u r r e d . In D i s t r i c t No. 12 (San F r a n c i s c o ) t h e d e c l i n e i n b u i l d i n g a c t i v i t y h a s not a t ? Y6 -24- . X-3008 any time been so pronounced a s i n t h e o t h e r d i s t r i c t s , and a l t h o u g h t h e v a l u e of p e r m i t s d e c l i n e d 8 . 7 p e r cent from October f i g u r e s , t h e t o t a l s a r e s t i l l 1 . 6 p e r cent g r e a t e r t h a n t h o s e r e p o r t e d i n November, 1919. I t i s d i f f i c u l t t o e s t i m a t e t h e i n f l u e n c e of t h e s e a s o n a l change i n b r i n g i n g about t h e d e c r e a s e s i n c e October, a s l a s t y e a r t h e November f i g u r e s r e g i s t e r e d a n advance. P r o d u c t i o n of lumber has d e c l i n e d g e n e r a l l y . In D i s t r i c t No. 5 (Richmond) many m i l l s have c l o s e d e n t i r e l y , and a diminished p r o d u c t i o n f o r November i s r e p o r t e d by f o u r lumber a s s o c i a t i o n s of t h e San F r a n c i s c o District. The l a r g e s t of t h e s e , t h e West Coast Lumberman's A s s o c i a t i o n , w i t h 121 m i l l s , r e p o r t s f o r t h e f o u r weeks ending November 27, o r d e r s of 182,417,000 f e e t a g a i n s t a cut of 264,305, 000 f e e t . The d e c l i n e h a s been due p a r t l y t o s e a s o n a l c u r t a i l m e n t of o p e r a t i o n s , a s some of t h e l a r g e r m i l l s a r e c l o s i n g f o r t h e y e a r l y o v e r h a u l i n g of machinery, and i n o t h e r s e c t i o n s snow h a s reduced o p e r a t i o n s . In D i s t r i c t No. 3 ( P h i l a d e l p h i a ) t h e r e has been l i t t l e buying of lumber because b u i l d e r s a r e unable t o secure f u n d s and because t h e p u b l i c i n g e n e r a l a n t i c i p a t e f u r t h e r r e d u c t i o n s . In D i s t r i c t No. 6 ( A t l a n t a ) I-be lumber s i t u a t i o n shows some improvement. While a number of m i l l s i n New Oij. .S a r e expected t o remain c l o s e d u n t i l a f t e r t h e h o l i d a y s , i n Alabama many a r e resuming o p e r a t i o n s . I n c r e a s e d demand has taken p l a c e f o r s o u t h e r n p i n e , and i n consequence p r i c e s have s t r e n g t h e n s # . Work h a s begun on t h e f i r s t u n i t oi a lumber t e r m i n a l l o c a t e d on t h e Hackensack R i v e r , n e a r J e r s e y City, N. J . This f i r s t u n i t w i l l cover an a r e a of 50 a c r e s , w i t h s t o r a g e sheds f o r 100,000,000 f e e t of lumber and a box f a c t o r y , p l a n ing m i l l , and sash and door p l a n t . The t e r m i n a l i s b e i n g e r e c t e d t o s t o r e , handle and s e l l P a c i f i s c o a s t * 2 5~ X-3008 lumber brought by sea from p o r t s i n Washington, Oregon, and C a l i f o r n i a , P r i c e s - The B o a r d ' s index number of wholesale p r i c e s showed a f u r t h e r marked d e c l i n e d u r i n g November. In October t h e number stood a t 108 per cent above I 9 I 3 p r i c e s , i n November a t $0 p a r c e n t . This means t h e r e has been a d e c l i n e of 28 p e r cent from t h e peak of l a s t May and of 8 . 5 p e r cent d u r i n g November. Imports and e x p o r t s a r e much n e a r e r t h e prewar l e v e l than a r e commodities f o r domestic consumption. F u r t h e r d e c r e a s e s i n p r i c e s of commodities which were a l r e a d y a f f e c t e d by t h e d e c l i n e r a t h e r t h a n an e x t e n s i o n of p r i c e c u t t i n g t o o t h e r i n d u s t r i e s f e a t u r e d t h e month. In o t h e r words# a g r i c u l t u r a l p p r o d u c t s , t e x t i l e s , h i d e s , and l e a t h e r , and i r o n and s t e e l p r o d u c t s d e c l i n e d very s t r i k i n g l y , while c o a l , petroleum, g a s o l i n e , p a p e r , b r i c k , and cement r e g a i n e d l a r g e l y u n a f f e c t e d . I n t h e l a t t e r groups of commodities r e d u c t i o n s a r e r e p o r t e d nere and t h e r e i n the open market, but quoted c o n t r a c t p r i c e s appear t o be a t approximately t h e same l ^ v e l a s i n e a r l i e r months. In t h e case of petroleum, r e d u c t i o n s occurred i n t h e Texas c o a s t a l f i e l d , but i n o t h e r d i s t r i c t s no important changes have been made. i n December. I n t h e coal i n d u s t r y p r i c e s a r e r e p o r t e d a s e a s i e r Contract q u o t a t i o n s on l e a d i n g g r a d e s of a n t h r a c i t e and bituminous f o r November, however, were a t t h e same high l e v e l a s i n October. In t h r e e important i n d u s t r i e s - c o t t o n , wool, and b o o t s and shoes where t h e l i q u i d a t i o n p r o c e s s has been of l o n g e s t d u r a t i o n , f u r t h e r p r i c e r e d u c t i o n s wers made i n November, b u t i t was r e p o r t e d from s e v e r a l s o u r c e s i n December t h a t buying had been on a l a r g e r s c a l e t h a n xn r e c e n t months. F a l l i n g p r i c e s f o r farm p r o d u c t s has l e d t o a x-3003 -26- w i t h h o l d i n g of commodities from market i n t h e case of c o t t o n , ###% and t o b a c c o . Reports from a l l s e c t i o n s of t h e country a r e t o t h e e f f e c t t h a t lumber p r i c e s were h e a v i l y reduced d u r i n g November* S t r u c t u r a l s t e e l along w i t h o t h e r s t e e l p r o d u c t s l i k e w i s e d e c l i n e d , but cement and b r i c k p r i c e s remained f i r m . R e t a i l food p r i c e s decreased 2-g- per cent during November, a c c o r d i n g t o an index number of t h e Bureau of Labor S t a t i s t i c s , computed from the p r i c e s of 22 a r t i c l e s of food i n d i f f e r e n t s e c t i o n s of t h e c o u n t r y . The r a t e of d e c l i n e was only s l i g h t l y more r a p i d t h a n d u r i n g October and September. Federal Reserve a g e n t s a l s o r e p o r t d e c r e a s e s i n r e t a i l p r i c e s during November and December, a l t h o u g h i n most d i s t r i c t s emphasis was placed on t h e f a c t . t h a t i n s p i t e of extreme r e d u c t i o n s i n c e r t a i n l i n e s , n o t a b l y c l o t h i n g , r e t a i l p r i c e s a s a whole -were d e c l i n i n g l e s s r a p i d l y t h a n w h o l e s a l e .
@FedFRASER