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• ~t)()· uu X-3082 FEDERAL RESERVE STA~ BOARD FOR THE PRESS For release in morning papers, Friday, April 1, 1921. lftle following is a review of general business and fi~cial conditions throughout the several Federal Reserve Districts during the month of I.hrch, as cont~inei in the forthcoming issue of the Federal Reserve Bulletin. '.Ihe month of March shows little cb.ange from c.ondi tions noted for the The uncertainties \Vhicn characterized the month of preceding month. February have continued. waiting attitude o~ the Except in certain special lines of industry a p~rt of producers is still in evidence. TUe month has therefore not sho,,vn rJuch advance tov.ra.rd t:0.<3 restoration of ''normal coniitions." ~ere t~s been an increase in activity in certain important industries, notably, automobiles, textiles and foot wed.I'. The c;pestion now chiefly d.t issue is whether this increase is merel.y a temporary seaso.nal advance or v.hether it represents a turn towa1·d a higher level of general business activity. As to this point, no In some staple lines of ind~try, d~finitG suCh as metals, statements can ba made. improvar~nt is either not in evidence or where noted, is incidental to local conditions. Better demand for labor is apparently only a reflection of the increase in business activity in special industri~s. to w~ict refcr~nce has b~en significance as an economic indication is therefore not certain. made. Its Consurr.ptive demand on the part .of the public at large oontinucs strong in view of the fact that empla.f.ment still remains at a lower level than heretofore. Re~uc- tion of wholesale prices, as shown by the Board's indax number. mnounts to 9 points (or 6 per cent) for the month of Februdry cinl current price ·'II f)' ") ...jl UUJ.L X-3082 -2- quotations indicate a continuation of this reduction during the month of March at approximately the same rate. This shows that readjustment in wholesale prices is still in progress, with, however, no clear indication as to how long the movement will continue. In the retail field, price adjustment is, as is a matter of col'Iil:.on observation, slower than in the wholesale. !n banking and credit,liquiddtionbas continued but with very little ger.era.l reduction in the total amount of credit outstanding. Interest rates have shown little change during the month. An attitude of greater hopefulness on tho part of ~e business community and the expression of opinion on the part of commercial leaders that distinct i~rovement in dorr~stic conditions is in sight, represents a fore- cast rather than an analysis of actual facts. expectations are warranted cannot be The extent to which these determine~ In foreign trade the 1 continuation of some foreign mo:catoria and practical s·u.sper.tsion of bu.siness with a number of countries is reflected in a reduced. volume of trade, but this reduction is far greater ·.vhen ::nea.sured in teros of value than when :measured in units of !hysical volume. AGRICULTURE. General agricultural conditions during the month have been clkaracterized as unusually favorable tbrou@.out every section of the country. The temperature t.a.s been fairly uniform, with but few exceptions and no serious daroage has been done in these cases. !he abundant rainfall and snow in most sectiwns bad given sufficient moisture for the winter grain crops and for preparation of the soil and the planting of the spring crops. Winter Wheat continues in excellent condition and is somewhat earlier than usual. !he dam:...ge from winter killin1S has been X-3082 -3- very small due to the mild weather, rutd practically no reseeding be necessary. ~~ll Every District, however, reports ravages from insect pests, chiefly green bugs and Hessian flies. Wnile these ravages v;ere checked in some sections by cold weather, it is too early to estirrute the extent to which damage has been done. 'lh.e uneasiness felt a month ago in regard to the fruit cro:P has been somewhat overcome, and there is expectation of large yields. Reports from District No. 11 (Dallas) indicate that "there are good prospects that the southwestern fruit crop will escape frost damages, and that an unusually large production of fruit will be realized, unless the last killing frost of the season occurs much later this spring than it usually does. District No. 12 11 (San Francisco) states, "opportune rains and warm weather have caused deciduous fruit trees to bud and blossom profusely and, if unseasonable frosts do not occur, their yields should be record ories .. " In Districts Nos. 8 (St. Louis) and 10 (Kansas City), while the fruit crop prospects are exceptionally good, there is still some apprehension lest the April fr~sts Will do considerable damage. COTTON. The cotton s'ituatioti: duriug tbe month has shown some inter- esting developments. Favorable weather conditions have ~de possible the gathering of the remainder of the cotton crop and the latest report of the ~ales D~;partment of Agriculture placed the 1920 crop at about a million above the estimates in the previous reports. In District No4 6 (Atlanta) "The CaJl!Paign for a reduction in sotton acreage is being . a.c ti vely prosecuted. " There seems, however, to be a diversity of opinion as to the extent to whicn reduction will be effected. ~e situation is sutimed up in d. statement from District No. ll (Dallas) viuich sd.ys X-3082 -4- that ~ile the consensus of opinion seems to indicate a reduction of about 25% in Texas, no definite ~~d reliable information is yet available as to the state's 1921 cotton a.creage. District's cotton acreage is last year in the· Roswell ~ .A new factor in this n successful experiu.ent on cotton groWing region of New Mexico Where it is reported that a large acreage will be grown t~is year. fertilizer is used, it is apparent that the In the sections where fa~er in an effort to reduce cost of production, will restrict the use of fertilizer. District No. 5 (Richmond) states that 11Less than 50% of the usual amount of fertilizer has been bought for this season of the year, ar.d farmers are st.ovting little interest ir. Tnd.king contracts," while in District No. 6 (Atlanta) • 11 the a.r.10unt of fertilizer :purchased by .farmers so far this season is stated to be not more than one-fourth of the a.r"..o\U'l.t usually bought by this ti03 of the year. " 'lhe port receipts of cotton during February reflected the usual seasonal decline but were considerably sr~ller than February a y~ar ago. 'lhis season's total for the United Sta.te.s both for receipts and exports has shown a large decline over last season. TOBACCO. · 'lhe leaf tobacco situation during the month in general has continued to show improverr.ent. It is (Richmond) that "Tobacco prices ir.1proved reporte~ sor.~ewhat in District No. 5 for the better gra~es, but off-color anJ damaged goods have been sold for a few cents per pound." Reports from District No. 8 (St. Louis) indicate s~t.:lilar tendencies, stating tha.t prices about s·teady. 11 Toba~co is bein~ soli in large volume, with Better grades are firm; medium gra~es bringing ~5· better prices; and common grades stronger". X-3082 R~ports from tile tobcicco. sections indicate a materia.l reduction in t.ue 1921 a.cred.ge. T~e con- d.i tion in the manufacturing indus try t.as d.lso shown some improvement. Many plants continue to ru.n far below Cci.paci ty· but in general uave sLown a slight increase over the operatior$ of last month. reductions .....ave been In:~.de in tL.e manufactured products, but C:U.iefly in cigars of the cheaper grades. A few priee -6- GRAIN MOVEl-~S: X-3062 The February movement of grain to rr.arket reflected the seasom.l decline but i.'&nged considerably higher than a year ago. Receipts of all g~ains at Mir~eapolis during February de- creased 26.5 per cent from tho January figures, while at Duluth the decrease was only 7.1 per cent. Hovll'ever, when the t>vo cities were combined, the decrease was 22.9 per cent. but when compared with February, 1920, there was an increase of 17.4 per cent. The market- ing of wheat at the four princi:pal markets in District No. 10 (Kansas City) was on a rruch larger scale than during . rease b e 1.ng . ,..,.., 7 :per ceu t • 1.nc 0.::. February a year ago, the Each of the f out· UJark.ets in the District shared in the increase to about the same extent. The receipts of both com and oats at the same rr.arkets showed decreases of the case of corn and 6~ per cent for oats. 7.8 per cent in Receipts of wheat at Minneapolis and Duluth reflected the same tendency as at the four markets in District No. 10 (Kro1sas City~ but an opposite tendency in the receipts of oats and com. Tot3.:l sto~ks of grain at Minneapolis and Duluth terminals were about 4 per cent higher at the close of February than at the close of Jan•,,tat~:, as at the close of February, 1920. ani were practicany the sa=ne 'Phe price of graina generally rulecl. lower during February than during the m?nth preview:;. The median price for cash wheat No. 1 Dark Northern at Minnaa:polis was $J... 75i during February as against ~1.84 for the month before. The median price quotations at Minneapolis for the several grains were all lower for February than for January. The sarre is true of St. Louis as regards the closing price on March 15th when compared with February 15th. 336 -7FLOUR: 10 (Kansas City} that l t is stated from District No. •considerable strength developed in the milling situation in the southwest during the latter :part of J!"~ebrua~·y•r, Although there were no large bookings and buying was in srr,all l(.)ts fo;: ir;:.mediate needs, the trad.e showed signs of "heal thy improvement!!~ ·.vhich continued in March. Orders for immediate delivery increased slightly in District No. g (St.Louis) after February 15, but the business in that District on the whole continues "dull and unsatisfactory". Further cancellations have occur:·ed as a result of the decline in ·Nheat futu!"es. 'Export trade in clears and low grade flours is holding up well in District No. 10 {Kansas City), but in District No. 8 (St. Louis) the export trade is described as "the slowest in more than a decade". The demand for flour in District No. 12 (San Francisco) "has been light, buyers conservative and prices stationary". Competition with miJ'.ile western millers has been keen, and export demand has been negligible. 'T'•·ade reports indicate unsettlement about the middle of March as a 1·esult of the general weakness in wheat which followed the appearance of the Government estimate of wheat stocks on March 1. Flour output of mills representing about 75 per cent of the ... total produc t·ion in District No. 9 (Minneapolis) which· were ope :ra tin.g at about }8 per cent of capacity, was 1,854,209 barrels during the four weeks ending February 26, as. compared with 1, 886, 60B barrels during the four weeks ending January 29, and 1,630,195 barrels dl.Iring the four' weeks etlding February 28, 1920. The February output of reporting mills in District No. 10 (Kansas City) was 1,192~730 barrels, as compared with 1,535,078 barrels during February,l920. The output of 82 of the principal millers in District No. 12 {San Francisco) was 573,420 barrels during February as compared with 594.787 barrels reported by 30 mills during X- 3032 -sJanuary. Operations were at 44.8 per eent capacity, as compared ~ith 40.3 per cent in January and 71.8 per cent in February, 1920. As a result of the lack of demand for flour, and in psrt of unwillingness of farmers to sell grain at prevailing prices, wheat stocks reported of the. large mills in the District were only ~1,762.953 bushels on l!Tarch 1, as compared with 4,350,059 bushels· on the same date last year, while flour stocks were slightly less than by 21 a year ago. Stocks of both wheat and flour in millers 1 hands in District No. 8 (St. Louis) are light, LIVE STOCK:. l.ive stoc.k on farms a.nd :::-ar:.ges in genera.l continues in healthy coniHion, due both to ' plentiful supply of feed". of .Arizona and New ~~xico 11 tl1e mild open Vt;inter and a Only in certain sections, such as in :par.ts has pasturage been scanty as a result of dry weather, and the stock suffer·ed in consequence. Losses from disease have been light in District No. 10 (Kansas City) while feeding in District No .. 11 (Dallas) has been the lightest in the :past sever8.1 years. Cordi tions generally are very favorable for the lambing season and the spring calf crop is also expected to be high. While February hog and sheep receipts have been in excess oi those of last year and receipts of cattle and calves have been less, February receipts for all three classes of live stock were less than in Januaqr. Receipts of cattle and calves at 15 western markets c"'3re 835, 666 head during February, corres:potw..:.. ing to an index n.unber of 109, as compared with 1,191 1 814 head during January • corresponding to an index number of 118, and 1,062, 3Bl head during February, 1920, correspunding to an index nunilier of 105. Receipts of hogs likewise decreased from 3,339,4:•.9 during January to 2,902,107 head during February, as compared with 2, 394, 97· 3 head during February, 1920. '!'he respective index n.unbers are 152, 113, and 109· February 338 X-3082 -9.,receipts of sheep amounted to head during January and 972,647 947,733 head, as compared with head du•ing Februaryr ing respectively to index nur:mers of 72, at Fort Worth were the sJr.allest in thctt 81, and mc~1th f9. 1920, 1.112,024 correspond- Febr·lla.:ry receipts during the past se·venteen years. and hog receipts the highest since 1912. It is stated that shippers were even more reluctant to test the rr.arket than in Ja."luary. Receipts of all classes of live stock except hogs decreased from the first of the year until the early ~ar-t of March, when prices reacted somewhat and encouraged a larger st.pp!y on that market. Slightly higher prices prevailed during the se~on1 w3ek of M$rch for most classes of cattle and 'hogs in Distdct No~ 10 (Kansets City) after a decline February. in Stockers and feeders were in very active derrand with prices approaching levels very near those for fed cattle. Detr.and for stockers and feeders in District No. 12 (San FratlCisco), however, has been light. Hog prices in that District were higher on. Mal"(..h 1, than on Feb!"'..la.ry 1 . .Active demand f:-om eastern :nld. Pac::ific Coa:>t 3hippers at leading western markets combined to decrease to a: c-onsidera1,le available in District No. 10 (rr~nsas Cit~) ext~r~t the su.wly of hogs for local slD.ug!1ter. The wholesale meat trade, it is st3.ted. frnm that :!)istri·:::t, "suffered stag;:,_a... tion" during February, follovting price decl:.nes. in rm.d January, but the market took on a firmer tone at the close of February. in Chicago touched the February. pr~ces lowest point in five years during the month of On the other hand, in St. r.ou.is. the general trend of live stock prices has been upward. Sheep X-3082. - 10 - 1-TON-"FFRROUS 11-~"rAt~~ "'Prices of non-f:srrous rr.etals regi:;tered further ieclines during February and the early part of March. The price of lead ore in District No. 10 (R'al.iSas City) reached $32.00 pe.r ton in the last week of H'sbl'1.la4"Y, ha·1ing decreased $13.00 during the month, while the price of refined lead (on the New York basis) q1.1oted by the leading interest \Vas further reduced from 4.4 cents to 4 cents per pound at the close of February. FUrther declines in the prices of electrolytic copper and zinc have occurred. Production in the lead and zinc mining and smelting industries in District No. 12 (san Fra:nciseo) is estimated to be "only 30 to 42 per cent of capacity." An illustra.- tion of the present situation in the zinc industry is afforded by the fact·that in District No. 10 (Kansas City) only 38 zir.c mills were ope rating in February, 1921; as compared with 200 mills in February, 1920. Companies produdng about 75 per cent of the refined. copper. in District No. 9 (Minneapolis) show an o..Aj:;pu·~ of 20,SlJ.5,Ll-22 pounds, of copper in Februar.r in comparison with January productions of 20,815,822 pounds, the increase in Michigan prod1.-.ction offsetting the decrease in ~~ontana production. The output of the san:e companies was 31, 9S2, t2G pounds in February, 1920. Mines reporting in District No. 12 (San Francisco) show a production of 16,144,980 pounds of blister cop~er in January, as compared with 18,688,511 rounds in December. ro~t: Reduction in demand for bituminous coal has resulted in a considerable curtailreent of production. Production during February was 30,768,000 tons, as compared with 40,125,000 tons during January and 40,127,000 tons during February, 1920. were 89, 108, and 112. The restective index numbers Demand for steam cn~l is somewhat better in X- 30S2 - 11 - District No.8 (St. Louis), but is very small in District No. 6 (Atlanta). District "No. 5 (Richmond) reports that "for the first time in many months there has been some unemployment in the coal fields" of Wes~ Virginia. Mine prices have continued to decline, bt1t retail prices he.vc shown only slight reductions. In District Nc. 3 t Philadelphia) there have been few wage cuts, but "employment time is con3iderably less than half of normal". There has been a marked decline in foreign demand, and exports in February were only 712,000 tons as compared with 2,248,448 in January. There has been a distinct slackening in demard for both steam and dornestic grades of anthracite coal. The decline in dorr.e~tic demand is attributed to the mild winter and the expectation of the usual spring price cut. On March 15, two leading railroad coal COID}:!~nies rrade new prices to 75 cents lower than .those previous}.y prevailing. 50 cents Compet~ tion with bi turninous grades has led to special reductions in .the prices of steam size of anthracite. February prodt1.ction of anthracite was 7, 345,000 tons, as compared with 9,419,000 tons during Jan~1ary and 6,525.000 tons during February, 1920. •rne respec~ivl;.) index nurnbcr·s were llL~.~:;./~7, and 9:!•• Coke prices and production he>.ve further declined in sympathy with the situation in the iron and steel IRON M-ID STF:FL: settled condition. industry~ The iron and steel irdustry continu'"s in an unOutput has further declined. Pig iron prodllr":tlon in February amounted to 1,937,257 tons, corresponding to an i11ds.~ n·:u11ber of 90 as compared with 2,416,292 tons in Jant'.a:ry, corresponding to an index number. of 104. Steel 5.rJgot production has followed a similar co,J.rse .. decreasing from 2,203,186 tous in January to 1,749,l~77 tons in Fab1·v.ary. The respective index numbers are 94 and 60. 'rhe decrease in activit:' rt-";;A! 0•:iUL - l2 is also reflected in the reduction in the number of blast furnaces in operation, from 134 on February .1 to 153 on March 1. Th3 Ooperations of the United States Steel Col"l'Ol·ation have decreased until they are now variously estimated. at from 1-+5 to 6o per r:ent of cap.3l~ity. been made upon its order 'oook ane. Inroads have unfEled. o:-ders at the end of February had fallen to 6,933,867 tons, as comp;;u·ed with ·r,573,164 tons at the close of January, and 11,113,463 tons, the peak figure recorded at the close of July, 1920. The respective inde:t numbers are 1L~4, 1:9, and 211. These orders, it is stated, are not evenly distributed among its various plants. In s:Pi te of the decrease, no rednctions have been made in its prices. In the case of the indeFenient produce~s, on the other hand, further cuts in :prices are :r'eJ'lOrted, and i t is stated that they are now on the average 15 per cent below the prices of the corporation. District No. 3 (Philadelphia) reports that these efforts to stirr.ulate demand on the whole have proved ineffectual, but in District No. larger proportion Of 4 (Cleveland) a current bUEiness has been diverted to the independ- ent producers, and ''indications point to a n:oderate renewal of interest among buyers». Some resumption of activity on the industry is reflected by ~he p~r~ of ~he auto~obile release of suspended orders to mlJ ls, as year is not expected to exceed 40 per ce:::lt of capacity. 1-11 tb.e inclus try as a whole, it is stated from District No. 2 (New York). that llEW ortiers are being received at the rate of slightly more than 25 per cent of capacity and that several independent cO'ilpanies have receivec a fajr volume of business. :particular increased. The deJTI.and for tin plate, pipB and wire products in Pig iron, however, has been weak. In the fur:1ace yards of District No. 6 (fl tlan ta) a lar·ge a;'Ilotm t has ace umula ted, and - 13- X-3082 consumers have held over purchases unti1. conditions in their own indus tries il!\Proved. Stocks of ptg irQr~ in the country as a whole are reported to be approximately 8iO,OO.O tons. L1 tc:Le contract, and no spot business is being transacted in District No· ~any finns in that District rt~-pori 3 (Philadelphia). r&duc..tiors in wages amounting to from 10 to 20 per cent since :he first of t.1"6e y~ar, and decreases by independent plants in other DiE"tricts are likewise reported. PETROLEUM: ·Prodv.ction of petrole'l!Tl in general has shown a decrease, following the recent decrease<> 1.-1 prices in the ir.dustry. February daily in Cali.fornia was 327,864 barrels average production of crude petroleum as compared with 331,181 barrels in Januacy·, while in District No. 11 (Dallas) daily average produc~ion 411,171 barrels in January. W\15 !~03,c:43 barrels as compared with 1n contra~t with this situation~ however, there has been a practically continuous increase in the Kansas-Oklaho~a fields since ths begi~ing i~ the of the wee~ly output year~ The daily average output for the week ending Mamh ll, was 366,500 bar:els in that field, as compared with 334,000 barrels fo1· t:r.e week ending Jmn.-ary 7. This occurred in spite of the noticeable falling off i.n the completion of new wells and in new produt;tion in District No. 10 (KansaF Gity), fol1.orv·ing the break in prices which o~curred in the month of February. Many operators in that District are pursuing a policy o:f c?nfining their development operations to "offse·Gs", in vlew of the prElsent situaticn in the industry. The decreased output shown in District No. 11 (Dallas) reflects the decrease in driHing oper.:J.tions. such operations had already cvl!'rr.unce:d amounting to 4eo wells, were was only half as large. ir~ ~ltlile the falling off in ;; div..ar ;1, Feb .c l.lar"J '-' orr..p~ e ti0ns, 1~7 less t't.an in JmlUary, and new production In District N0. J.2 (San Francisco) 6o new wells X-30&? .. 14were completed in February as compared with 64 in January, while the initial new daily production was cut nearly in half. After the drastic price reduction in January end early February, pdces subsequently re·mained. unChanged, the prevailing price in centraJ.-wes t and -north Texas being ~1. 75 a barreL During tha first half of at the san:e figure in the mid-continent field. that the seco.-ld week of 'Ma~ch ~~rch prices held steady It is reported, however, brought marked improvement .in that field, and every purcha.sing company :ln ever·y field ir1. Oklahoma and Kansas, with one exception, was b'L\Ying crude oil on a 100 percent oasis. It is report- ed that fuel oil in the District "is show:.ng an ap:precia'ble increase in demand, while refined petrole~ is beginning to move in slightly larger quantities and gasoline is fairly steady, though the demand has not come up to seasonal expectations#" carTON cotton is a TEXTILE~: Continuing uncertainty in the market for raw dominant factor in retarding the activity of the_ cotton textile industry. The su-.P:rly of cotton in the United States on A:~'lril 1 will, it is estimated, be about 36 per cent above the five-year average for that date, while prices are as lo"v as the average for the :period 1900-1914. Consumption of cotton in N8w England increased ~liehtly for February, amounting to 126,319 bales as compared with 114,710 hales ~n January. The decline in prices of raw cotton has ma1e it impossible so far to stabilize the market for cotton goods. Standard grey goods are reported by District No. 1 (Boston) to be selling nearly 25· per cent below the figure q,uoted during the first week in February. But even so 1 demand is only for small lots for immediate delivery and the a.ctivi ty of New England mills is largely confined to disposing of stack or finishing materials in process. At the same time there is an increased demand from X-3082 • 15 .. jobbers for finished goods, but again difference in ~rice b\~g is cautious, because the between finished goods and grey goods has increased, and it is felt that if the price of grey goods continues to fall, the prices of finished fabrics mUst also eventually be reduced. Prices for napped cotton goods for the fall season have been cut to one•third the 1920 quotations. District No. 3 (Philadelphia) reports a reaction in the market for cotton textiles in February and irregular in the eariy patt of March. ~arket conditions Such materials as ginghams and percales are said to be in demard and severai manUfacturers are reported to have sold their entire output until May first jobbers. as a result of heavy demand from On the other hand, the fine goods mills, after completing orders place in January, are again reducing the scale of their operations. The market for heavy cotton fabrics is also poor and orders pl!'Lced are .for irrmediate delivery. The cotton yam mills in the D~strict have not received sufficient orders to continue operations on the somewhat· enlarged seale initiated in Januar,y and February. A number of the mills have again reduced their output and others are manufacturing. for In District No. stock~ 5 (Richmond), as elsewhere, the promise of increased activity based upon orders received early in February was subsequently not sustained and there was again a tendency to curtail operations. HOSIFRY: District No. 3 (Philadelphia) reports a partial stabil~ ization of the prices of seamless hosiery, but quotations are not sufficiently firm to produce a relaxation of caution an the part of jobbers. In general, manufacturers state that there has been a rather limited demand for their product in March, with orders for immediate shipment. The mills producing full fashioned hosiery are largely idle as the result of a gen¢.ral strike due to an attempt of manufacturers to reduce wages X-30P2 - 1615 per cent, Finished stocks of goods are depleted and a concern unaffected by the strike states that it was forced to reject more orders than it accepted because of its inability to deliver goods within the time limit. Twenty-five hosiery firms in District. No. 3 (Philadelphia) which s:ell to the wholesale trade reported an ir:.crease of 29 per cent in the value of the product manufactured. during February as compared with January but there was a. teduc.;ti.on in out~ut of with a year ago • The 67.1 per cent as compared val v.e of finished products on hand at the end of the month (selling price) was 11..8 per eet..t less than during the preceding rrbnth but 18.3 per cent a year ago. gte~ter as compared with the same month ' Unfilled orders on hand at the end of the month had in- creased 81.5 per cent a~ 67.6 per cent below the compared with the preceding m:mth but were figures for the same month last year. Ten reporting firms which sell to the retail trade showed an increase in the value of the product manufactured cf 65.6 :per cent as compared with January and a reduction of 89.5 :per cent as compared with the same month a year ago. Unfilled orders on hand at the end of the month (selling :price) were 108.8 :per cent greater than during t~~ ~revious month but 89.8 :per cent less than in February, 1920. TJNDFRWF::.OR: Orders received for ligh-c weight undervwear by mills in District No. 3 (Philadelphia) are so :far only about normal. 50 per cent P feuv manufacturers obtained orders in January 'Nhich were sufficient to keep their rrills running from three to four months. De:rrand fell off during the latter part of February, however, and although there has been sorre improvereent in ~arch, few orders are being received except for delivery within three weeks. On the average,. - 17 operations are between 65 and 70 per cent of normal, although sorr.e manufacturers are running full time a.."'ld oth:::rs are operating at only 30 to 40 per cent to capacity. Twenty firms which rerort to the Fed- eral Reserve Bank of Philadelph5.a showE:d an av0~ ag~ increase in the value of products manufactured during Februclry of S5.1 per cent, as compared with January, but a rsdv.c ti on of 4.1.. 3 per cent as compared with February a year ago. 0-::'ders bcokad c;.uring the month, ho.vever, declined 22.2 per cent; unfEleC.. o1·d.ers on hand February 28, were 27 ·3 per cent in excess of those or. han.i ai: tilf' end of January. 63 mills reporting to the:: The R!~H state that their actual production (in Goods Manufacturers of ./lme rica doze~s) of winter ani sumffier underwear for the rronth ending Februa1·y 2)$th an:ounted to 248,431 dozens, which was 2S per cent of nornal productiou. ported for the month of January had per cent of nonnal. Sixty.. one mills which re- the::1 a production of only 16.4 · · Of the 46 mills Nhich re'forted unfilled orders at the·first of the month and new ordeis received during the month, totals of unfilled orders amounted to 341,233 do~en~ and new orders received during the month to 240)024 dozens. Ship~nts of these 46 mill~ were 197,181 dozens and product:..onl8l,O?b doz"ms 1 or 25.1 per cent of nonr.e.J production. The 33 representative 1nills furnisl1ing data for both Jo.m:.z..ry and Februa.ry reported unfilled orders on han:i at the first of Febrnary amounting to 307,507 dozens, a gain.of 150,854 doz:ms ov~c the :t>re;:::eding month. New orders received by these mills during the month amounted. to 239,919 dozens, a decrease of 21,585 dozens as compared Nith Ja~uaryi shiptflents were 1S4,90l dozens, an increase of 95,39~ r.:ne'1.::>; p:r:-od.uction rose to 171,692 dozens, an increase of 61,859 dozens. X- 3062 - 18WOOt.~ Raw wool prices continue to decline and as stated in the Boston report, "The wool traC:.e of Boston is fully a'vare of the fact that there are 45 million sheep in this country which will soon be sheared and that each animal will yield betwer:-n six a:nil seven pounis of wool". o~rn.ers are still in possession of n. goodJ)a4~t of last year's clip and it is likely that buyers will prefer to :;:-·1-:rr:hase fro-m the new clip. Receipts of foreign wool in Eos ton have been about twice as large since the beginning of the year as during the corresponding :period last year. ~arket Notwithstanding the uncertain condition of the for raw wool, there has been during the month consid.era.b le bv.ying of goods for fall ani a resultant increase has occurred in the activity of woolen and worsted mills· On February l, the Census Bureau re1)orted to per cent of all rr.achinery idle as compared with 68 per cent on Jamtary l. Reports for the months of February and March will, no doubt, show further decreases in these Present irdications are that the ilnerican Woolen Company is per:centages. recent offering of fall goods was sa.tisfactory. In District No .. 3 (t'hiladelphia) increased derr.a:J.d. :rom the hosiery iniustry has stimulated the demand f0r ·.vorsted yarns and a r'wival of ac~ivity is evidenct:d by the fact that some mill!:> previously c} osed have rep:pened ancl. are no·N running at from 33-1/3 to 60 per cent ca~acity. The enlarged de~ar~ has not, however., been experienced by all rr,a.rn....L'ac turers an:'. sorr:c x·e:.,;ucc a falling off of orders in March. SILK~ The improvement in the condition of the silk irrl1.1stry, noticeable in February, has continued ani the operating carBci ty of 1S,5CO looms in Paterson and nearby towns increased from 37 per cent in February to 46 per cent in NT.arch.. During the latter month, some of the smaller plants, closed since fall, began to manufacture goods 348 X-3CS2 - 19chiefly for inmediate shipment, while the larger mills which were In District No. 3 already in operation increased their output. (Philadelphia) where many of. the larger mills are located, production 65 to 75 per cent of capacity. Buy-ing is now estimated to be from continues to be cautious ani 'UJ'lfilled orders are as a rule small and for speedy delivery. District No. 3 (~hiladelphia) total·volurne of orders is estimated to be about 75 states that the per cent of that of a so-called normal year. There was a slight advance in the price of month. Imports of raw silk_ rose from 9,499 raJN _silk during the bales in January to 14.361 bales in February while the stocks in New York warehouses at the end of the month fell from 31,859 bales in January to 27,928 bales in 'February. S'ffOF.S ~ND LE.ftTHF.R: Prices for hides and skins have tended to remain stationary during February, but prices for certain finer ·qualities of skins increased as a result of a shottage of supply of such skins. Calf skins, which are used for upper leather, have remained stationary at about 15 cents per pound.. Heavy native steer hides, however, continued to decline during February, reaching a price leve 1 of ll to 13 cents per pound. t~ As the present rate of slaughter of cattle is very mueh less that maintained a year ago any considerable increase in activity of the shoe ~ndustry should reduce the supply of hides and skins in the , Unit.ed States to reasonable proportions. District No. 3 (Philadelphia) .' reports that "the tanning industry has recovered somewhat from the almost complete apathy which of 1920, b~t characteri~ed it during the latter half it is still far from a normal operating basis." ' has been a considerable demand !or some g~·t?des There I of novelty leathers by shoe manufacturers engaged on Nsh orders for the latest style shoes for X-3082 349 \ the Easter trade, but manufacturers of staple leathers haw not :partici:pated to any appreciable extent ~in this activity. District No. l (Boston) reports that "boot and shoe manufacturers have not yet seen fit to provide themselves with very large stocks of laathers and the United States Government Leather Census of February 1, 1921, shows that the tanners hold. by far the larger part of the supply of the same" .. The export trade has continued slack. Exports of sole leather in Jan- uary 1921 were only 86 per cent, exPorts of goat and kid leathers Z7 per cent, Gnd exports of calf and kip leather 49 per cent of those in January 1920. The shoe in..iu.stry continuesto show increased activity throughout February artd the early part of March. fined largely to new styles of shoes, so reduce their stoCks. This demand was con- manuf~cturers w~re unable to In District No. l (Boston) there has be~n a per- ceptible increase in the production of women•s shoes, but the shoe factories of New England as a whole are still running at only about 50 :per cent capacity. Stocks of shoes were reporte·d as somewhat sm.:U1er . . on Marcb. 1, ··1921 than on the same date last year, and total sales for Febrnary were .larger than in February, 1920. In District No .. 3 (!hila.. delphia) the volume of orders booked by concerns IDdnufacturing shoes designed for t~e Easter and early spring trade was so large as to tax the co.pa.ci ty of those firms. "Thus fa.r during the current yea.r little if any attention has been given to fall shipmmt, and considerable business is still to be "" booked for summer d.eliveryn. District No. 8 (St. Louis) reports ind.ications of "gains of from 6 to 12 ·:per cent in volume . of March business over the February tota.ls". ' . Der.nand. wca.s particularly ~trong for fancy lines of women's wear, but movement of staple lines of of men's shoes was also fairly satisfactory. March 15 were On an average t prices on estimated to be about 10 per cent lower than those prevail·· ing. in January. -21LUIIJBER: Accoul)c.nying a X-3082 furt;.;er reiuction 1.n prices, ier;;.;.nd for lumber sho·,ve:i a. sligt;.t ir.uprove::,ent. in most sections of t.ue country. rlitb. the O.Ffroa.cu of sprin~, -- ~~ra.lUdl incr2c1se of output is noted in District l!o. 12 (S....n :F'ra.ncisco), crut o·1tput is still or>~;r 50 per cent of norr:a1. Tr:.e four 1unber r'".am:.fd.cturers a.ssocia.tions of District 1Jo. 12 report proluction ..turing tl:e foc;r ·;yeeill> ..::1:;.. er in~ ~ ... 6<-n enlin~.:; for 'che precedi:-.. g· fo'JI '7esks. Febro.ary 26, 26.8 per cent Orders for lur.;ber received dur- "CLe sa:.::e period increcl.sei 21. 2 :per cent n,nl s:...iprr.ents 20 ·cer cent .. Due to acti·;e cor:.poti tion for 01..-'siness, :!.ncr_;ase ia ":;l:.e ness was a..cco:-.:p~nial oeloU?ing to :L.e ~.·:est by d. continue-nee of price ieclines. -rohL~e of ou.si- 'D;.e 118 nills Cou.st L"'JL1be.rr..an's Associd.tion re:rorte:i for the four ,;eelr.s ending February 26"" cv..t of lc,2,643,000 ooc1rd feet, s .... ip;mnts of 157,970,000 feet, and oriers of 167 ,-±83, 000 feet. Corresponlin..~ figures for the preceding four ·;eeks, wi t:U 114 mills report ins, ·.7e:..·.:: a.s fe>llows: 130,865,000 feet; 133,645,000 feet; c1nl 1~0, .:;:,21, 000 feet. District Uo. 5 (Richn:onl) ...rnd District No. 6 (Atlanta)· :c'epcrt sor;;e incn""se in tr~e den.ci.nd for lur:.oer, but only at "oar c1in 11 prices. Pro:iTiction of 129 mills belonging to the Southern Pine AssocL.:l.tion ,·;c:,s 27, tS8 r::er cent bdc'7 nor~l luring: the w·eek ending M_arct 4, w.uile sl:ip.aents were 31.45 :per cen c '"'"nd orders recei 'i8d 35.13 :per cent below nor:-Dcl proluc tion. cnange in the lumber price situation 11 is reported. from District lJo. ll (Dallas). Southern pine mills reportins: in the District sC.o,"fel a t."B-rked decline in t~e four \Jeeks enlin~ vol1.L.e of orlers. Orlers ;:;ook;;;l oy 30 ;:.ills lurin.-c; the FebruarY' 25 qere equiv""lent to 56 per csnt of tl:.eir norr.:c.l production, ·;:J::.ereas the 28 mills 7. icL reported. in January booked -22orders equivalent to 12 X-3082 per cent of their normal output. The average weekly production during the period was equal to 50 per cent of normal. District No. 8 (st. Louis) reports further declines in demand for scft- woods, but a slight increase in the demand for hardwoods. The February cut of 13 manufacturers in District No. 9 (Hinneapolis) was 48 per cent greater than in January, and shipments were 16 per cent greater, but; stocks at the close of the month increased 4 per cent. f..s compared with February 1920, cut was 25 per cent less, shipments 65 per cent less and stacks at the close of the month 41 per cent greater. Price declines are reported by the majority of manufacturers, as well as by retailers. :BUITDING O'PFR.A'r!ONS, Building operations increased both in volume and value during the past month in all Districts except one. The increase was most marked in the territory west of the Mississippi River. The value of new construction was, however, decidedly lower than in February, 1921. Cons idetable increase of ac ti vi ty is e.videnced in the building of residences. District No. 2 (New York) reports that 48 per cent of the value of building contracts in February was for residential purposes as compared with 40 per cent in January. In District No. 4 (Cleveland) reports from 13 cities show 1335 :permits for new construction, '"ith a total value of :U~,843,9l6 in February, as compared with 872 permits with value of i4.631,924 in January. Reports from 23 cities of District No. 5 (Richmond) show 894 permits issued for new construction during February, in comparison with 624 permits issued in January. reports an increase in nuniller of building permits. District No. 7 (Chica.gco) Of 311 pennits is- sued during February in the city of Chicago, 131 were fer residence construction. Five leading cities in District No. 3 (St. Louis) report na further heavy falling off in number and dollar value of building penni ts ," 352 -23- X-3082 ::ille nine largest cities of District No. 9 (Minneapolis) repoi"t ?83 contracts ·.;nth a total value of ~2,1?9,?84 for February. Tt..is increase in number of 34 per cent and in value of 152 per cent an \Vas ~s com- pared with J;;.anuary; a.nd a.n increase in nur.1oer of 9 per cent, bu.t decrease in value of 3 per cent, as compareJ. with Fe bruci.ry, 1920. In District No. 10 (Xdnsas City) reports from 16 cities show 1352 building perr~ts issued, wi:dch was 526 more than the numrer of permits for Jcmuary, and 78 permits less tha.nwere issued in February, 1920. T~;.e fact that te..e total va.lue of permits was less tb.a.n 'in Ja.nua.ry is believed to indicate thd.t more attention was ;i ven to the ~ilding permits \Vere issued. for larger b1:d.ldings. of residences a.nd fewer Total •ra.lue o:f buil1ing pei·- mi ts issued in District No.. 11 (Da.llas) shows a.n increa.se of a.~pro.x:i- mately 50 per cent o·.rer January, but a lecrease of more t!:..Wl 53 per cent froo the total value for Febr-'Jary, 1920. Bui1di~g permits issued in 20 cities of District No. 12 (s~~ Francisco) during February show an increase of 31. 6 per cent in vah'.e ..:..nd 12. 3 per cent in numoer ~ c..s · compared with January. Portland, Oakland., San Francisco, Los Angeles and Pd.sad.en.;.. report a marked increase of building activity with down- ward movement of tL.e cost of w.aterials e.nd labor. El'APLOYMENT: E:nployr:Jent cond.i tions ~:..a.ve not sl:.ovm Lll.l.ch c.L.a.n;3e iuring tte last :::ontb. but ta.ve improved slightly in tL.osG 3ections wt.ere une@ployed labor has ~een absorbed to a certain extent by t4e demand from the country districts a.nd where there ~as been a. sea.sona.l increase in industria.l activity. Reports to·t.b.e United States Bureau of Labor Sta.tistics from 65 industrial centers showed that 1 per cent X-3082 -24fewer workers were employed en February 28 than on January 31. The greatest decrease in numbers employed was found. in the iron a.nd steel industry and in railroad repair shops, wnile the largest increase occurred in the automobile ~~ textile industries. In District No~ 2 (New York) a reduction of unemployment occw·red during r.Iarch and it is estimated that about 5 per cent more are now employed than a month ago. A seasonal .increase in farm labor is noted and in the Mohawk Valley many persons from the oity fa~s* ~re now finding There is also greater opportunity for mills in tr.e up state section. emplo~1ment emplo~ent on the in textile There has been an inci"ease in the num.... ber of employees in the Rochester shoe anJ clothing industries but few c.:.anges b.d.ve occurred in miscellaneous manufactures and there has been no increase in the metal trades. In New York City unemployment has become more serious amons seamen, dock workers, freight handlers, drivers ani lon~-shoremen, while conditions in show no special improvement. ~a building trades In District No. 3 (Pb.iladelrhia) a reduc- tion in the number of employees during tt..e month was reported for nearly all sections although. tbe textile mills have added to their ·.;orki.ng forces. Local bureaus of the Pennsyl "ii'ania Bureau of E!I!Ployment esti- mate that 147,115 men vvere unemployed on M.arch 15 an compared with 140t785 on February 15, in the.flve ·::ities, P'.c.ila.d.elpb.L.1, .Altoona, Harrisburg, Johnst~vn and Scranton, 24 per cent were common laborers. Of t.c.is total it is estimated The increased ·iema.nd for fa.rm labor is relieving the situation somewh.oit.. Unemployment seems to be tvide- spread in the iron and steel industry as indepenient plants in the t~at ?~)/) UU':it X-3082 -25District a.re not operating a.t more tilan 25 per cent of capcici ty many concerns totally closed. In District -,·>~i th No. 5 (Richmond) it is stated that unerr.iployment has not rr.a.teria.lly increased durin~ the month. Tb.e farn labor supply is reported to be al'I!Ple, al thou'!h the return movement from the cities has not ceen as pronounced a.s expected in view of tl:e existin;s industrial :iespression. District No. 6 (Atlanta) reports that unemployment still exists to an apprc:ciable iegree in i:;he cities and towns. Jn District No. 7 (Cb.ica:::o) there appears to ha.v:J ·been no especial cb.d.llf';e in employr:ent durin13: the past month. Records of the free employment buraaus of Illinois ®ow a reduction in the number of applicants for agricultural positions, for. building and cons tructi.ons ·.vork, and for miscellaneous unsldlled. positions. metal and machinery workers and. clerical help '.vere On the other hand, applyin~ in grea.t- er numbers.· · In District No. 8 (St. Louis) there has· been further curtailment of activity employment. ~urin;; tl:e month and. a consequent r&iuction in Official reports from federal and state authorities show reductions in numbers arnployed in February as compared with· January ranging from 10 to 15 per cent in the sto.tes of Kentucky, I\1issouri, Indiana. and Arka11sas. 'llie unemployed -.·:ere more numerous in the build- ing trades and metal industries, and farm labor was rr:-:ported to be abundant. was In District No. 9 (Mi~eapolis) the erDPloyrr~nt ~ituation lessF£~VOl!able plo;yment agencies in February. declined~; The applications for help at the em- 75 per cent for rr.en and 60 per cent for X-3082 -26- women as compared with a.year ago. more unemploym0nt th~ Local relief agencies reported at any time since Febr~ary 1915. In District No. 10 (Rd.nsas City) altb.ou,7P,. there :C..ci.Ve b~~.m l'.Jcent reductions of forces by railroads and by some of the ma.nufacturin~! plants and busi- ness ilous es, stimulation of spring trJ.de in many lines and early farm a.cti vi ties havo absorbed a considerable number of unemployt:d woz·kers .. In District lto. 12 (San Francisco) the reopening of lumrer mills and resumption of a:sricultura.l activities :O.av..; brought about a J.imintl4ition of unemploJ~nt in th~ P~cific Seattle and Portland Northwest. report conditions slightly inproved as compared in Spokane they are undla.ng;ed. wi~ last month while In Id.a.t..o, Utah cii.Ld 1i<3va.da the princi- pal unemployment is in minin3 dnd construction and. building trades. California reports a reduction in numbers unemployed iuring February as a result of the do~and for laborers in t~d country districts# 'tr.e ra turns from tha rraj ori ty of VIIFIOLES.ALE TRADE: th~ ei gb. t Di.s- tricts Which report sales of ·.vhol(;sale firms in leadi.n;:; linea of trade, indicate that there has and of boot cinl valu.a of sales be~n s.i.Loe firms W'ciS an increase in tee sal8s of dry goods ciS mucb. below compared with Januo.:cy al t.G.cu?):l the totdl thc~.t for February of the preceding year ¥v.llen prices were on a. hi.gher lu ''el. expected c~.t Tr.0 increase in buyi n..; is to be this se.;t.son of the year, especially with the:: warm forcing retailers to fill .::;pring requirements. ~vea.thar In groceries and hard- ware. increases in sales during t:t..;;) mont:O. ha.ve ei tl:er been sli:,:ht or else a.ctua.l declines h;.~.ve be-:;n rcgistereil. In District No. 3 (Pb.ila- delphia) tnere has baen a reduction of 4.2 per cent in tLe sales of 50 >Vholesale grocery firms, as compared wi~ January, while the decrease -27 X-3082 was 24~9 per cent ~s compar0d with February, 1920. DeiDclnd for all except staple goods fell off sligb. tly ou.t the further declines in prices probably account for the reductton in sales values. of twenty-five hardware firms fell of:: 4.4 per cent as s~les co~ared January d.nd were 12.7 per cent below salas for February. 1920. cerns with a large business in so~1thern with Con- fd.rrning d.is tricts noted an improvement in derr.and but there was practically no Irarket for mill supplies~ Business is generally being done on a spot basis and or- ders are pro.mptl;Y filled. In District No. 4 (Cleveland) the decred.ses in average sal as as compared with the Sdne month a year aso amounted to 22.3 per cent for three vk.olesale dry good.s firms; a dacrease of 2?.1 .:per cent for· fifteen grocery firms; 19 per cent for eie:..ht hard- ware finnsj cJ.nJ. 31.2 per cent for four drug firms. In District No. 5 (Richmond) sli:~ht d.ecrecJ.ses of 2. 2 per cent for ei@:l t report in; \VLOlesale grocery firms cm.d. 6. 9 per cent .for ei_;h t reportin; hardware firms as compa.rad with the preced.in::- 1::ontL are nore tt.an accounted for by the fact that February is a s.:.:_ortor :-:.ont:t:.. were reported by eit::Lt dT'IJ ,;oods four furniture firms. fir:.~s, Larked increa.s:::Js ei .-t.t boot and si.:.oe fi:r.ns, and T...e increas8s in t:Lese tl::.ree lines amounted to lit.4 per cent, 77 per cent ani 246.4 per cent, r..3spectively. As compaNd. witt a year ago, t.oweve r, decreases ransed from 14. 5 per cent in the case of ;:;roceries to 52. 3 per cent in tl:.e case of f11rni ture. In District Ho. 6 (Atld.J."lta) increases in ',':roc12ry sales d.urin;; tb.e month, thirteen firms reportinc;, were ne=:lir::ible, Wi:..ile dll average decrease of 8. 8 per cent is ~own in tl:..e case of nino reporting hard- -28X-3082 Wd.re firms. In this District ctlso, dry goods. wi tb fourteen firms reporting, d.nd boots and shoe:s 1 with seven firms reporting, showed increases of 33.5 per cent and 19.4 per cent, respectively, as compared with January. The declines as cowpared wi tb. February 1920 for all reporting lines varied from 2.9.? per cent in tt.e case of groceries, to 59.9 per cent in the Cd.SG of shoes, In District No. ? (Chicago) decreases as co!T.g)aredwiti.:. a ycur ago amounted to 24.1 p0r cent in the case of twenty rc-portin.:; ::=ocery firms, 46. 4 per cent in the case of thirtc•m raportin; lry goods firt".s, cl.nd 53 per cent in the Cd.se of eight reportins shoe firr.1s. WLoles~c In District Ho. a (St. Louis) dry goods concerns r0portad an increase of 18 per cent as COIJ:!pi:l.r.Jd witt. January and a. d.Bcrcas,;; of 43.3 per cent as con:p..;;.red w·i th FGbrud.ry of la-st yco..r. Grocery salas, six firms reporting, reg- istered a. minor incro.;;,se of 0. 25 per cent out ware 1?. 3 par cent below tn..a level of last year. Mention is made, J.:owev~r, of the fact tr.a.t tl..:.e ton."lage sales of one: of the largest grocery firms in the District were 5 p0r cent mor;; tb.ari in F;;;bru2.ry 1920 al tLough tho Vd.lua of sales wa-s 22 per c0nt less. Ha,rC.war<.> sales, five firms r0por- ting, advanced 27. 0 per cent but were 41.3 r.:.er cent be::low the level of last year. It is stated ti;.a-t retailers in the srrull..;;r cities and country tovms ctra buying in only li:ni teJ q_l.l.dJlti ties as the sales of b.a.rdwara to the farm trade i:l.re light. reporting, increased 72.9 Furniture sal;;s, trJ.rea firms per cent durin6 the per cent below tha level of last yeo.r. rr~nth but were 52.o ln District No. 11 (Dallas) a more m.:.rked increase in th-:; case· of :iry goods sales t.r...s occurred than -29X-3082 in any other district as four reporting firms showe:i an average increase of 44 per cent as compared with Jd.ITU.cl.ry. It is statad tt.at tt.e in- crec1se is only partially s0.1sonal, as it is believed to bG lue to a certd.in extent to an accumuld.tion of ordor·s vmich would. formerly b.a.ve been placed in Ja.nu..1ry b·u.t WGr~ JefGrNd. in t.L.e stcibili ty in prices would be react.ed. .:~ope t:tat a greater Increases in sales of groc0ries,. six firms raporting, were 9.8 per cent but· the increase was lci.r8er than in ether listricts. Furniture, t~ree firms rerortin~. rGcord.od so.lQs 18.1 :r;:or cent below tL.o Jo.aUd.ry avcra.ge altuou$ Districts Ho. 5· (Ricl:.mond), l~o. 10 (F.ar.sas City), o:.nl lJo. 12 (San Francisco) all Sc:tles of fa'rw. implcrr:ents an.t of :iru.gs I reportei rna.rlr..cd increases. two firms reporting for eacL linJ, showed decreases of 31.4 per cent and 12.9 per cent respectively. reported d.S In a.11 cases heavy decreases were corqpared wi ti::.. a yoar ago rdn,.'in_~ from 26.4 par cent in th;:; case of auto s:uppli.Js to 83. 9 por cent iYl the cc.se of farrn implements. In District ~o. 12 (San Francisco) dry ;oods, ten firms roportinq;; groceries, tw;:mty-eL:h t firns roportins·1 bootz and shoes,. fourteen firms Nporting; o.nJ furni turc, fifteen firr:;s reportin3; showed increases in average sales a.s compared. wi t:C. J:::.nuary awountin;::: to 9.1 per cent, 4.9 per cent, 35 per cent) and 41.5 per cent, respec- tively. Sales of automobile tires 1 fourto0n firms roportin,?; <:.lso advance:i 30. 4 p.::r cent. .Ul r~portin,s compa.rol wi tb. a year ago ra.ngin_; from groceri..:ls to 55. in t~s o p01' cent in tL.~ ca.s,~ lines Ncorded decrG""ses ~. d.S 7 par cent in the ca.se of of au~o tiNs. It is so.id tu.21.t auto tira an-l grocery trade tl:.: r:.ajority of rG:ports received -:3()X-3082. indicate tt.at retailers Ld.V0 l i y_uidated their l:.igt. pricel merchandise and are now buying for stock at new wholesale prices. In the other six linas. of business, the tendency is not defined, as some firms raport t~d.t liquidation is still going on or that present bUYing is merely undertaken to fill in ~epleted stocks. Current unfilled orders are reported as considerably smaller than usual. RETAIL TR~~E. The retail trade situation for February was char- acterized by continued irreg~larity, creased buying by the public. but with a tendency toward in- T~a general condition is summed up in a statement from District Uo. 10 (Y.ansas City) vit.ete it is reported that 0 improvem:mt is sorJewt.at spotty, since the slowing down of in- dustries in some sections has a tendency to restrict the purchasing power of tl:..e people, and country buying in otLer sections Las not yet attained a l::..igh state of activity. 11 Special sales t:.ave continued to be conducted in most sections, tl:.oug:.:. confined. largely to specialties. In tb.e .:;astern Districts, wb.er.:; an increase was noted la.st month in the volume of s.;tles, an even larger incr~..oase is noted this mont1., Thus in District No. 1 (Boston) the increase was 6. 5 per cent, in District No. 3 (Philadelphia), it V'las 3. 7 per cent, and in District No. 5 (RichmonJ}, it was 8.6 Fer cent. decreases Februa.r;. wer~ shown for January, only In some Districts wheru large s~4ll decreases were shown in Tb.us in District No. 11 (DalL.. s) the decrease was 4. 6 per cent, c1.nJ. in District No. 12 (Sc.;"l Frci.n,:;i.sco) it wa.s 2.4 per c~nt. In most Districts stocks on hand arc moUJ.'ltin;;: and be;irming in some cases to approxiiDclta stocks of a year ago. In practically every District, 360 ..31X- 3062 stocks on hand at the end of February showed an increase over stocks on hand at the end of January. While merchants are buying carefully and are depending on week to week buying and road orders, the percentage of outstanding orders is steadily rising. ?RICFS. By February practically every corr.modity of importance in domes tic consumption had been reduced in price from earlier levels. The only important exception to this was anthracite coal. In several lines, notably boots and shoes, certain types of chemicals, coffee, silk, and to a less degree in the woolen induztry, reductions were no longet of large proportions aud quotations gave sorne semblance of In still other lines 1 however 1 such as !ron and·steel, stability. larg~ bituminous .coal, coke and oil, reductions were quotation$ frectuent. and changes in .ftlthough.' complete statistics are not yet avail- able for March, conditions seem on the whole not 11;ery different from " those of February. .6nthraci te coal prices have been slightly rcd.ucsd by a few producers and crude oil prices have been for the most part unchanged. Live stoek prices have also boen in February. ~orr:ewhat !imer than Otherwise the trend of prices in March oeems to have been generally similar to that of February. The rate of decline in February was approximately the same as in January according to the index numbers of the Bureau of Labor Statistics, and of the Federal Reserve Board. decline for February. Both show a 6 per cent Retail prices in February were also reduced. ftccording to the index number of the Bureau of Labor Statistics the decrease amounted to 8 per cent for the month. 361 -32- X- 3082 FOREIGN TRJDE. District No. 2 (New York) reports a slight in- crease in export demand for American products as compared with the extre~ely dull period at the end of 1920. An illustration is af- forded bj the steel trade, in which cancellations are reported practicallJr to have ceased, with a moderate amount of new business aJ;>I:earing. "Demand is chiefly for railroad supplies, with a somewhat increased inquiry also for ccnstruction materials, and most standard materials with the exception of plates. source." Orders are Nidely scattered as to With the recent recession in the price of American wheat to levels under those prevailing in the .Argentine, the export demand has expanded somewhat. Merchandise exports ih February amounted to $489,000,0C0 co~ared with ~655, 000,000 in January, and with $645 ,occ ,cue in February a year ago. Merchandise imports in February, 1921, amoun- ted to 't215,000,0GO as against 1209,000,000 in January, and ~467 ,COO,CCi(: for February of last ye8.r. Although the reduction in axports shown_ in these figures together with the slight increase of irrrports, is viewed with concern in some ~uarters, it still remains true that ex- ports were more :han double the value of imports. Furthermore, owing to :price reductions, the contraction in the total volume of our foreign trade that has occurred in the past two months is less than the ,ralues, if taken alone, would indicate. These facts have made it difficult to reconcile the foreign trade figures of recent months with the slurr~ in shipping and the widespread cancellation of orders that began last fall. Two explanations have been advanced as to why the official ex- -33- X- 3062 port statistics have kept to a high level so long. 362 One reason, which has been surmised before but which 1T'ay now be stated on tl1E- authority of the Departrr.ent of Co~erce, is that delays in making the monthly statistical compilations have necessitated part of the returns of former months being included in the figures of subsequent months. The other reason is that numerous shipments of goods which were reported as usual in the official statistics have been refused abroad either through inability of the impotter to pay or because he,was unwilling to face losses due to price declines. Such of this merchandise as has to be returned to this country or sold abroad at a sacrifice is therefore a factor in unduly swelling the official trade figures. SHI??ING. The number of idle ships in ~merican ports continued to increase during ~!!arch, although there was sorne reduction in the weekly rate of increase as ccmpared. with January and February. was reported on March 14, that 536 steel vessels of the Shipping Board were idle and withdrawn from comrercial OT'erations. wooden vessels were tied up with caretakers. 822 vessels is more thM fleet. It In addition, 266 The tonnage of these 30 per cent of the Government-owned merchant ·When the policy of laying up ships had to be inaugurated last fall for lack of remunerative cargoes, the smaller "take type" .was the first class of vessels to be ·.•l'ithdrawn. ,.. More recently many of the largest f.feif'!h.ter.~ have been unable to secure full cargoes on the outward voyage, while the homeward tr~~would have to be made in ballast. Conseq_uently the vessels st:lll in service are for the most part the . medium or "handy-sized" freighters and combination freight and passenger r:--; .<~, "1: ~·;...tl....Jl' -34X-3082 liners. The charter market cont1n~1es inactive and freight rates in practical·· ly every trade rwve reached a :point so low that many ship operators are no longer interested in do~ng business. The regular liners are carrying m6st of the traffic with curtailed sailing schedules only sufficient to maintain trade routes. These conditions are not pecu- liar to the United States and are indicative of what is going on in shipping circles in more or less marked degree throughout the world.