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rr•.n ' ·..._j;~~(.) i X-3131 ,r FEDERAL R E S E R V E B 0 A R D STATEMENT FOR THE PRESS For Release in Morning Papers, Thursday, June 2, 1921. The following is i review of general business and financi.::J.l conditions thto'..lghout the several Federal R~:>se)'Ve Di,:tr~ c·:;s d'.•ring the month of May 1 as conts.im;d in the f orth~oming issue of the Fed.era.l l:esorvo Bulletin. Slow but greatly retarded recovery in production and distribution has been in progress during May. the better has b~en What appears to be a definite turn for taken by some branches of domestic industry, foreign trade is still arrested or depressed. but The more hopeful attitude whl,ch showed itself among buslness men during April has continued; and in some industries is preparing the way for active development. Gains ma·de during the preceding month or two have been generally retained, reaction being only sporadic, Foreign trade continues its movement toward a more nearly equal balance of imports and exports. There has been a furthel.~ our foreign shipments and some increase in receipts from falling off in ab~oad; the figures being especially noteworthy when stated as physical volumes of goods. and F-ailure to recover normal industri3lconditions in foreign countries speci~l causes of trade impairmentk such as the British coal strike~ have hampered progress; while disturbed exchange and inadequate financial facilities have made resumption of activity a matter oi special difficulty in some directions. Readjustment in wages which was given special consideration a month ago has proceeded but has been slow; while adjustment between wages and prices (especially retail prices) is exhibiting special difficulties. r,---.,~ • X-3131 1-a lrregulari ty and lack of uniformity still exists in marked degree over large sections of tbe retail price field.and qualihed o·bservers forecast serious obstacles to the firu1l adjustment of wages to permanent levels) unless retail prices move much faster to their final basis. Settling of prices has proceeded in various wholesale lines to an extent that is re·fleeted in less notevvorthy average ch3.nges; but this process is apparently more truly an "evening up" or adjustment to a level already reached than it is a new dip or downward movement toward generally lower values• Basic commodities have shown ability to hold their own at levels already estab·' lished. High costs of transportation, to which reference was made a month • ago aw one· of the elements retarding readjustment continue to prvduce a restrictive influence and are the subject of active . investi~tion and di~~ cussion. The uneven character of the business readjustment of the month is illustrated by cond~ti~ns in the various individual industries. of the latter an approach to stabilization has been made. tn some This condition notably exists in the textile trade and in the boot and shoe industry. Cbntrasted with industries of this type are several that are either at low level or moving further downward. In iron and steel reaction is still progressing. . Buying is confined largely to immediate needs and as a cou ... sequence both unfilled. orders and current production show declines. So long as prices are still in an unstable condition# buying for future delivery is necessarily retarded in many lines. Tnis holds good both of industries where recovery is in progress and in those which are still declining. In some branches of textile production. for example, manufacturers report that while the volume of current trade is good, advance orders continue small~ most buyers declining to CQmmit themselves far in advance. '-·""f~/-li:. ,... .. ·~ ',~·!,<><;);~/) •~1 X-3131 1-b In wholesale and retail trade, there has been some recession, although such recession has been much more pronounced in the wholesale than in the retail field. !t i0 worthy of note that the month of falls between two seasons of major productive activity. seasonal industries a recession naturally spring increases. ~ccurs Nay In most highly just after tne earlier This accounts for current seasonal declines in activit/ both in manufacturing and in trading businesses. The anticipated improvement in the labor market due to the opening of spring a.gricul t11r~l activities has not proved sufficient to absorb the surplus resulting from the reduced employmont attendant upon present industrial conditions. In the eastern sections oi the country as a whole the employment situation has attained some degree of stabilization. Growth of unemployment is the ref ore more pronounced in ·khose regions in which industrial readjustment has not been so long in process. unemployment, however, has been consider~bly Voluntary augmented during the month as a result of the in.crease in labor difficulties which ·has accomp3-nied. wage reductions. Agr.icul tural developments of the month are ot a charactar. s<.;mev;ha t uncertain Wnereas climatic and soil conditions had previously beer... favqrable 1 the wet cold weather of May interfered with crop development and as a matter of fact great d.arm..ge has been done in certain sections of the country. The fruit crop over wide arsas has suffered severely. Financially 1 May more prosperous outlook. . '' has been a month of increasing strength and of There has been1 in various sections; an easing of the demand for funds which has resulted in part from the. accepJ~ance lower price levels and in part from the adjustment of business to new of X-3131 -2- conditions. Federal Reserve Banks have received large new accessions of gold and have in many parts of the country reduced their bill holdings and other commitments. Rates of discount at Reserve Banks have been reduced l/2 to 1% but commercial and market rates have shown only a slightly easier tendency. Foreign exch~nge rates have been generally stable and higher, corresponding to the hopes raised by the German Reparations Settlement. The business outlook for the season thus continues on the whole more favorable, but with little prospect of immediate sharp improvement of conditions. ,-../"~,,~, X-3131 0o\._ __.tf~;_2 - 3 AGRICULTURE. The agricultural sit'.laticm during the month :c:tay be characterized as unfavorable and backward. Although the unusually mild winter was exceptionally favorable for the preparation of the gro~d for the 1921 crops and permitted a rapid growth of all the grains, the unseasonable spring weather has been injurious to all crops.. The weather has had an ill effect upon the maturing of winter wheat, while it has District.No~ 8 {St. Louis) reports retarded the growth of spring wheat. that 1 11 condition of the grmving winter wheat crop in this District is still favorable, despite the fact that the growth has been checKed somewhat by the· recent cold, wet weather". Although the condition of winter wheat is reported to be fair in Arizona and New Mexico 1 the Texa.s crop bas s.hown a considerable deteriora tion,which is attributed to drouth1 high the inroads of green bugs and rue;t. wind~ 1 and In the central and western spring wheat belts showers have occurred and the temperature has been generally favorable 1 aiding the growth of wheat; the seeded grains are up to a satisfactory stand. Although District No. 9 (Minneapolis) reports, "plowing and seeding of corn is progressing nicely in Minnesota and South D3.kota", in most sections the plant has been retarded. Thus District No. 8 (St. Louls) states that Ncorn planting in the north has been retarded by exce~li.ive moisture and due to the same cause considerable replanting has been required in the south". n~s In District No. 11 (tallas) likewise:, "not only the weather been too cool for the best growth of cotton, corn, and e~ll grains 1 but these crops have been adversely affected by the extremely uneven rainfall throughout the district". retarded the growth b~t The cold wAather has not only has prevented germination of the seed. In many ins~ :replanting' of the various c~ops has been necessaryJ while in other sec~~ where replanting was' avoided, a poor st3.nd has been the result. ~ ~- ... .:. rJ -4COTTON. X-3131 The development of. the cotton crop throughout the southern area has been retarded by unfavorable weather conditions. Thus 1 in District No. ll (Dallas), "the effect of the cold wave occurring in April and May was to check the grawth of eotton where the plant had germinated and to retard its germination elsewhere. In West 1exas plowing and planting have been delayed by drought 1 while in many sections the cold, wet ground has delayed the necessary replanting." Dietrtct No. 8, (St. Louis) reports that ilplantin~ t:ul tlvation and replanting of cotton ha.s been seriously delayed by the over-abundant preeipitatiGnu. lnfor~tion received from all Districts indicates that the acreage planted in cot ton has been con.. siderably reduced. The results o! .a. recent survey in 150 Counties of Texas made by the Federal Reserve Bank of Dallas show that the reduction in that area. is a.bout 30 per cent. District No. 8 (St. Louis) reports that "the Ar~nSa.s Cotton T~de Association estimates that the acreage reduction in that state _will amount to 35.3 per cent". TQBACQQ. ahd 3in The new tobacco crop has been transplanted in South Carol~ Distric\ No. S (St. Louis) tobacco beds are reported in good condi- tion awaiting favorable weather for transplanting. In this District "the acreage to be planted is g,enerally reported short,." and reports from Dietrict No. 5 (Richmond) indicate reductions in both North Carolina and Virginia, but th~ acreage in South Carolina has been sligntly increased. The leaf tobacco situation has been very quiet. District No. 8 (St. Louis) reports, "tobacco markets are practically all closed ~or the season,. leaving a large amount of the leaf in farmers 1 hands, most of which is of inferi.or quality•. It is reported from ristrict No. 3 {Philadelph~) that manutact• urers are not buying the newt.obacco on any large scale. Thus it is sta.tecl that •purchasing by manufacturers ha.s not been increased within the pe.st X-3131 month, and the price trend continues to be lower". appears to be in a rather .satisfactory condition. The ci~r business Although the demand is snall and for the cheaper grade of ci~rs, District No. 3 (Philadelphia) states, "in most cases oper-ations anQ sales have about reached a point of adjustment which prevents overstocking and at the same time furnishes a supply of cigars sufficient to meet ordinary needs". FRUIT. Although every fruit section has suffered from cold weather and frost, the extent of the dattage varies with the different sectionsDistrict No. 11 (Dallas) reports that "fruit prospects indicate a larger and more satisfactory yield than that of 1920". On the other nand, District N.o. 8, (St. Louis) states .• that "prospects for fruit in all states of the District are probably the pcorest on record". In District No. 12 (San Francisco) deciduous fruit crops have all suffered from frost damage but "a greater new acreage coming into bearing this year and an exceptioxally heavy set of fruit, have offset the effect of frost d~mage, arid the reduct ion in total yield this year a.s compared with 1920 will not be so marked as was expected from earlier reports". The .report further say11i that nin the Pacific northwest present indications are for the largest apple crop in the history of that section". However, "the stone fruits suffered approximately 30 per cent damage".· GRAIN MOVEMENTS. The movement of grain to market during April has reflected a seasonal decline. .an eAception. The receipts of wheat, however, have been At Minneapolis and Dul~th wheat receipts were 21.7 per cent larger than last month and 31.1 per cent larger than receipts during April, 1920& The receipts at the four principal markets in District No. 10 (Kansas City) were unusually heavy for the season of the year, being 6,307,300 bushels. or 136.4 per cent larger than receipts during April, 1920. Minneapolis and Duluth receipts of corn, oats, and barley have all showed • - .......; • #I -6- X-3131 very large decreases from last month, namely, 64.4 per cent for corn$ 67.2 per cent for oats., and 39·9 per cent for barley. n Decreases in the receipts of these grains were also noted ca,t the four principal markets of District No. 10 (Kansas City). This District reports,., "the farmers are apparently holding much of their corn until a. good crop is assured for this yearn. On the other hand April shipi:D.ents of grains from Minneapolis and Duluth were 35.9 per cent larger than last month, but were 16.8 per cent smaller than shipments during April, 1920. Stocks of all grains at the close of April. in the terminal elevators at these cities were 15 .. 3 per cent smaller than at the close of March, but were 14.8 per cent larger than at the close of April, 1920. The price of grains during April gen~rally ruled lower than during March1 the April median price of cash wheat No. 1 Dark Northern at Minneapolis being $l .. 57 per bushel as against $1.72 during March~ Prices have taken an upturn during May as a result of continued reports of crop·· deterioration. ELQUR. sections. Somewhat greater demand for flour is reported in certain In Dietrict No. 8 (St. Louis) an increase in domestic sales is ascribed to "low stocks in the hands of· retailers and consumers generally J" although trade as a whole is far below n·ormal. In District No. 10 (Kansas City) 1 there is a. slight improvement in the bakery demand~ although jobbers are buying flour sparingly. Export demand has been sustained in the latter District, while in District No. 8 (St. Louie) "has. evidenced decided symptoms of improvement". over March.. Production daring April showed some increase Although average April production in the United States for the past six years has ·decreased about of mills manufacturing 9 .. (Minneapolis) 75 4 per cent from the March figure, output per cent of the flour production in District No. during the five weeks ending ~pril 30 increased 4 per cent r- "'·-11 'J'J.JL X-3131 -7- over the output during the five weeks ending March 26 (from 21 220,685 barrels to 2,312 1 385 barrels)r This was 28 per cent greater than the ·of 1,814,180 barrels during the corresponding pei"'iod of 1920. were operating at about 43 per cent of capacity during April~ outp~i These mills 1921. Output of reportng mills in District No. 10 (Kansas City) increased 19 per cent in April . . 1921 over the April., 1920 figure (from 998,981 barrels to 1)193, 081 barrels), and the mills operated at 54 per cent of capacity, Although the ~utput fall off during the first week of May, it was again higher d~ing tne second week than during the / correspondin§; week last year. Mill. operation in District No. 8 (St. Louis) during the 30 day period ending May 15 was at from 40 to 50 per cent of capacity. On the other hand, millers in the Pacific Northwest, due to the of demand for flour) have been more active during the past few months l&.tH in exporting wheat than in manufacturing flour. None of the mills inthat section are heavily stocked with wheat, and the reports ot 13 representative firms show 610,502 bushels on hand May 11 as compared with 1 1 024,522 bashels on April 1 and 1~039,605 bushels on May 1, 1920. 629,417 barrels reported by 75 mills in April, ~nd by 76 mills ir. March to 563,166 barrels reported the mills operated at during April as compared with during April# 1920. April~ Output decreased from 34.5 p~r cent of capacity 45 per cent during March and 69.8 per cent . The price of flour showed a downward tBndency during but since the opening of May has a~in increa5ed with the increase . in the price of wheat. LIVESTQCL As a result of the .ccld weather, both have undergone some deterioration in vario~s r~nges and steelS. sections, but the adverse effect in general has not been pronounced because of the fact that stock had been .in good condition as a result of the mild winter and plentiful supply of feed. Thera has, however* been a seriol.ls shortage of moisture in the Texas Panlla.ndle., eastern N<Jw Mexico and Ari~on1.. Stock ir.. that section r -r •• "" \<L,_.i>' ~~..:.: X-3131 -·8-- is rep orteci in poor condit:i.on anCI tr1ere Ilf! s been considerable feeding in New Mexico. Cattle in large numbers hav~ be.en moved .from the drought stricken areas into Texas pastures that have been recently vacated in "what is sajd to be the heaviest grass cattle movement in many years." Receipts of each of the three principal classes of livestock dl.lring April show a falling off from the March hgures"' but :i.n the case of cattle· and calves aJ..one are they less than for the same period last year. Receipts of cattle and calves /1 at 15 western markets during April were 994,916 head.1 as compared with 1,119; 548 head during W.arch and 1 1 037,350 head during April~ 1S20. respective index numbers are 99, 111 and 103. The neceipts of hogs decreased from 2 1 390,480 head during March 1 corresponding to an index number of 109, ~ to 2,279,495 head during April 1 corresconding to an index number of 104.., as compared with 2,109,195 head during April 1 1920, cor.re;,ponding to an inde4 number of 96. April receipts of sheep were lj077 1 8C6 head~ as compared with 1~161,549 head in March a.nd 927.t800 head in April, J.920. index numbers are 79, 85 and 68. The respective In Distx·ict No. 12 (83-n Francisco) there has been an increase in shipments of grass fed RteMs a~1c1 f>pring lambs to eastern markets 1 while in District No. 11 (Dallas) the spr~ng market movement "has been slow to materialize." The average price of cattle and hogs during April was decidedly lower than in March. The most recent quotations appear to show prices at approximately the same levels. April and May showed little change. Sheep prices during Production of packing house products cvntinues on a greatly curtailed scale, but some improvement was noted in April business. f_ETROLE!TM· ·, There were signs ~f a reviv~l of buying for export account. Petroleum production continued to increase during April and the early part of May 1 despite the fact that the March output was larger than that recorded in any previous month. The Kansas-Oklahoma field, which r:voJ (~;,"'~: {~ ............. x..;3131 -9<;~bowed the most important increase in production, bad an average daily production of )86~000 barrels during the four weeks ending May 13, as com~-. pared witn an average daily production of 370, 500 barrels tor the f uur weeks ending.April 181 and an average daily production of 356,000 barrels for the corresponding period in 1920,. California was in M.irch. The average daily output of 3381 981 barrels during April 1 as compared with· 337,683 ba.rrels In contrast t·o these increases the average daily production of the oil f ielQ.s in District No~ 11 (Dallas) continued to decline from barrels in Febr1.ary and April. 394J 174 barrels in Ma.rch to 38b 249 barrels 1 403) 243 in Drilling operations decreased during April 1 although there is normlly a consid5n1ble increase at this se3.son of the year.. District No.· ll (Dallas) led in this decline with an initial average daily production of 97,176 barrels in April, as compared with 1391 413 barrels in March. number of wells completed in that District dropped from 395 to 359. The H~1ever, an entirely new field was opened by the discovery of 5,000 barrel well near H:l.ynesville, Louisiana. (~nsas The number of wells completed in District No. 10 City) declined from 763 in March to 538 during April) but the average daily initial production only declined from 71~460 barrels to 65;147 barrels. Fifty-eight new wells with an initia.l daily output of 18.~470 barrels were opened during April in California. nounced a cut of 25 Pipeline companies during April an- . cents in the price of crude oil in Texas. Thls reduced the price to $1.50 in. North Texas fields and to $1.00 in the coastal sectiori. The same reduction was made in prices of all grades of crude oil in certain of the california fields) but there was an increase in the price of Pennsylvania crude oil. The prices of most. of the le:t.ding petroleum products ' . declined during April, but the declines were more n:a.rked in the case of those products which are used ·purely for industrial purposes than in the case of those required by automobiles. {_..:~f._...., X-.3131 CO/IL. Demand for bituminous coal is still very slack in all sec- tions of the country. co.nsurr~tion Bowever, production is running considerably below as is evidenced by a decline in stocks from about 45,000,000 tons on January J to 37.oootooo tons on Jpril 1. amo1Jllted to 27 ,875,000•:tons, 75, 82, and 102. for .April as compared with 30,,328,000 tons during March and 37 ,9)9,000 tons during A:P:til 1 1920bers are Br~duction The respective index num- Many mines in Alabama and Tennessee are shut down for lack of orders, and others are operated only two or tt.ree days District No. 10 (Kansas City) notes an improvement in produc- a week. tion, but reports a great lack of market demand even in the case of railroad fuel. Production of anthraei te coal increased somewhat during APril and amounted to 7,914,000 tons, corresponding to an index nurr.ber of 107, as compared with 7,603,000 tons during March, corresyonding to an index number of 10.3, and 6,225,000 tons during April, 1920, corresponding to an index number of 84. increase of nearly Reports from District No. 50 3 (P"iladelphia) shew an per cent in the stocks of retailers between Jan- uary l and ]lpril l, and a considerable decline in consumers supplies, Leading retailers in that District announced advances of 25 cents ner ton ;for domestic sizes during the first two weeks of rvray, but this action has failed to stimulate the demand. Business in steam sizes continues to be very stagnant, as a result of curtailment in industrial operations and severe corr~etition from bituminous sources. In District No. 2 (New York) demand for egg and stove sizes of af\.thraci te is other sizes have almost no IDi:'rket. low, and ovens in the ~e.-iifth of ca;PaCity. C~lellsville re~orted Beer.ive coke production is still very district are operating at less than By-product coke nroduction is at a higher rate 1 but this is due in -part to the demand for the by-products. of stocks fair, but of coke has resulted in strenuous price cutting. ACCumulation ,..,.. -11lRON MD STEEL .. - tled ctondition. X-3131 The iron and steel industry continues in an unset- The volume. of new business is small and largely for imrr.e- diate needs, in spite of the price reductions announced some time ago. In fact, it is stated that when there have been larger tonnages to distribute buyers are usually shopping extensively! with the result that some concessions in prices have developed, e.g., on wire is stated, continues dull. nails~ Seasonal increases in purer asing, however. These have given rise are shown by the automobile and oil industries, on the one hand to some demand for sheets, bars and stri-p steel, as well as to release of orders on which deliveries had been sus'Pended, and on the other hand, to some demand for tubular goods. ,putomo·bile manu!actur .. ers, it is stated from l)istrict No. 3 ('Philadelphia} ar~ however appa- rently drawing heavily on their accumulated stocks, and the demand in both There has been some in- industries is re-ported to be far from normaL crease in demand for fabricated steel fo.r structural work. report of the Bridge Builders c;A Thus the Structwal society shows a further in- crease in orders placed with its znembers..,.. ip from in March to 32~ per cent in Jlpril. 29 per cent of ca.paci ty The unfilled orders of the United States steel corporation, however, show a further falling off, reflecting At the close of ppril they were the conditions indicated above. 5r845,224 tons, as compared with 61 284,765 tons at the close of Ma.rch. The re spec ti ve index nUmbers were lll and 116. general the industry is now operating at from It is estimated that in 35 to 40 per cent of ca~ty. The number of furnaces in blast further decreased during A"l)ril t·Ttllr 103 at the onening of the month to •, 96 at the close. Pig iron production during Jlpril was 1,193,041 tons, corresponding to an index number of 51, as compared with 1. 595,522 tons during March, corresponding to an index number of 69. Nevertheless, it is stated from District No. 3 .... ....,., '~_,),___j;J _ ~ ;j'"""'\~ ,1'""1t '---"ut) ..&.12"" 1 (Philadelphia) that stocks of pig iron are undoubtedly accumulating. Many blast furnaces in that Disttict are being operated merely to utilize the coke output of by-product ovens, which have been kept in ot.:eration as a result of the demand for the by-products and because of the danger of Steel ingot ~reduction has likewise de- ovens deteriorating if closed. creasedJ from lt570,978 tons in March to 1,213,958 tons in ftpril.. respective index numbers are 67 and 52. In District No. The 6 (Atlanta) alone steel mill operations are reported. to show improven:ent. NONFERROUS METALS .. - COpper production declined very considerably during April~ as a result of the closing of most of the large copper mines. Pro- duction of re-porting companies in northern Michigan an::ounted to only 4,282,414 pounds in April, as compared with 11,201,915 pounds in March and 11,907,128 pounds in April, 1920. District No- 12 (San Francisco) reports that for those mines which are still operating copner production is approximately 47 per cent of capacity. As a result of the curtail~ent of mining operations the p~ice of cop]:ler (New York:, net refinery) rose fro:m 12.375 cents to 12.75 cents during May, but volume of demand ha.s not shown any noteworthy improvement. The price of zinc increased slightly during the latter part of .April, but receded during May to a level only slightly higher than that recorded in the middle of April. during APril amounted to March. 16,550 tonst as compared with Zinc production 15,741 tons in Stocks of zinc on APril 30 totaled 79,581 tons, as compared with 80,990 tons on APril 1. Lead prices continued to ad'rance during April and May, both for ore at the mine and for refined lead at New York and St. touis. District NO. 10 (Kansas City) reports that as a result of the increase of lead ore prices, additional properties are o-nening each week and a considerable uortion of. the labor surplus is being absorbed~ ,.. ~.~, (~~-0~' ':i X-3131 -13- COT'ION TEXTIT..ES# - Prices of raYJ eotton advanced sorr.ewha.t during .Arril and quotations manifested less instability from day to day. consumption during the month amounted to 408,882 bales, or 29,000 bales less than in March. A dro-o in cons~tion is. however, usual at this season of the year. There has been an increase .in activity of the cotton yarn mills in Dis- tricts No. 1 (Boston) and No. 3 (~hiladelphia). The ~hiladelphia reuort states that the greatest part of the business comes from the rosier:y and light weight underwear trade. Orders still remain small a..Tld there is little inclination to place them far ahead. More mills resumed operations in A~ril) and production varied from about 50 ~er cent to 75 per cent • of capacity. The situation in District NO. 6 (Atlanta), so far as indi~ cated by returns made by 10 representative yarn mills showed contrary tendencies.· These mills re~orted a. decrease of 1}.4 per cent during April in the quantity of their output as campared with March, while production was )8.8 per cent below that ·of ~pril 19ao. Ship~ents fell off 33~5 per cent from the preceding month, while orders an hand at the end of April were 12.3 per cent below these for the end of March. On the other hand, 14 cloth mills in District NO. 6 (.Atlanta) had a yardage 0.8 per cent in excess of that for March, and orders on hand at the end of the month showed an increase of 8 :per cent. o~ying District No. l (:Boston) states that is so close and such little margin is left for securing ~refits that manufacturers are \UlWilling to accept orders far in advance, so t':-!at in· print cloths rrore particularly contracts of longer duration than July are the exception. In the case of ginghams and sheetings, which were early. subjected to price revi.sions, sales have been well sustained and in } some instances the gingham. output has been teken for a four monthst ueriod.. Sales of print cloth at Fall River ~ounted to about 550.000 pieces for C'"·C' luiUU .. 14 the 4 weeks ended May 14 - an increase of 28 per cept over the preceding period of 4 weeks• FIN! SFING, OE .COTTON FABR!OS.t - Thirty-four of the 58 rr,embert of the National Association of FiniShers of cotton Fabrics reported total finished yards billed during the month at 86,311,438 yards, as conroared with ~6. 732,621 yards in March. The total average percentage of capa.ci ty operated was 66 per cent for all reporting Districts, as compared with 67 per cent during the preceding month. The total gray yardage of finishing orders re- ceived anounted to 92,920,824, as compared with 88,342,599 in March. !he total average work ahead at the end of the month am01mted to 10 days for all reporting districts, as compared with s.4 days during the preceding month. HOSIERY. - The continuance of the strike in Philadelphia full-fashioned hosiery mills resulted in insistent demands upon other centres. But most mUls, having booked orders for 3 to 4 months in advance were unable to silk accept new business. As a result seamless and mock fashioned·flines have been doing unusually well, and some mills have been using night shifts. X-3131 - 15- The demand for se~ess cotton hosiery is not so great aS for other lines - in fact in some instances business is dull. wholesal~ TWenty-three firms selling to the trade, which regularly report to the Federal Reserve Bank of "Phila-:-- . delt;:>hia., re?ort an increase of 13.3 per cent in the value of the ufaetU.red during A!'ril as compared with Morch. clined, mwever, 28~3 pet cent, while unfilled nr.odu~t man- Orders booked during April de- orders at the end cf April o•· registered a fractional increase of 0.3 per cent.' The eight firms selling to the retail trade had increasedthe value of thsl~r out"9ut tl:.e month.. 4} .. 3 -per cent during Orders booked during the month were 0. 1 per cent 1 arger than those . of March .and. unfilled orders on hand at the end of the month were 15.7 per cent in excess of those on hand at the end of Met"ch. UNDERWEAR.:- District No. 3 (~hiladelphia.) reports that a.l though orders · for fall are being placed with the underwear mills, they are so small that they barely amount to 20 per cent of what is normal for this season of the year.. The cool and wet weather of early May caused an imrr.ediate falling off. in orders for current delivery, good evidence of the uncertain state. of the market. "In the main however the market displaYS considerable activity, and manufacturers in many lines are unable to rr.eet the present demand for short time deliveries." fb.e 21. firms which make monthly reports showed an average output less in APril than during the preceding month- 5· 7 per cent Orders bodked during April fell 20.. 7 per cent as compared with March and unfilled orders on hand A:~ril )0 ''Jere 5.3 per cent less tl"an at ·the end of the previous month. The 61 mills making reports to the Knit Goods Manufac.turers 1 l1ssociation of ,Au.erica had an output in A:Pril of was 109,937 dozens of winter underwear which 35· 6 per cent of normal. The production of sumrr.er underv.rear amounted to 292,001 dozens or 58-3 per cent of normal. Thirty-two representative mills which furniShed data for both March and April had a production of Digitized fordo~ens FRASER during the latter month as compared with 285,515 dozens in 275,382 ~arch. ,...., A\ ~-... '----'±U - 16 Unfilled orders on the lst of A1)ril rose from 361,076 to 423,727 dozens. orders received during tt.e month of A"Pril rose from Nicl'' 354,959 dozens to There was a slight drop in cancellations which fell from 4,937 dozens to 4,279 dozens• WOOLEN TEX'rlLE,S .. - Tr_e ne'IR wool clip is now being gathered and sales in District No. 12 (San Francisco) are reported at prices of 10 cents to 16 cent~ per -oound in the grease as compared with 50 cents per "JOUl'ld last year. The District clip will probably be somewhat below that of the preceding year. On the basis of estimates given by representative wool grcwers and warehouse companies it is thought that the 1921 clip will be anywhere from 75 per cent of the 1920 clip in the States of Arizona and ,Pashington to 100 per cent in oregon and Utah~ Estimates for California and Idaho are :Dut at 90 per cent and at 80 per cent for Nevada.!·: Unsold holdings in all sections of the country are thought to ~proximate clip. 65 '!'Elr cent to 75 per cent of the 1920 Western holdings 'rave been mov-ing east\'..rard by water in considerable volume for the past two months. District N'o. l (Boston) reports ths.t the wool market is even more o:f a buyers' market than it was in stocks of rS~J ~~arch as the large wool have been augzr;ented by further im-,ortations of wool and tops which h..ave depressed prices. yarns are in demand in District No. The finer counts of woolen and worsted 3 ('Philadelphia) but no substantial price changes have occurred since Anril, although some buyers have aS::ed concessi ens from the contract :prices of March, in order to rr.eet current quotations. The cloth mills in all sections are exhibiting a fairly high degree of activity 1 a1 though there ap-rear to have been no develonments of narticular interest during the past month. "" )", ,r, "-.J ":1:: _;1_ X-3131 - 17 CLOTHING. - District No. 7 {Chicago) has secured returns from clothing five re-presentative/manufacturers and nine tailors to tte trade and those ~~N'S statistics are sufficiently comrrehensive to give a fairly corrmlete picture of the clothing industry for the city of Chicago. Orders for fall suits received by the clothing manufacturers to date were 27.5 per cent less in terms of suit units than those for tt.e sarr.e season during the previous year while the number of suits made in A~ril was 29.9 per cent less than during the same month a year ago. The tailors to t'-e trade reported 42 per cent fewer orders (expressed in suit units) in April than during 23.6 per cent less tf'an during March of this year. p~ril 1920 and suits rrade in Ar)ril were 40.£ per cent below the nurrbers for the same n:onth a year ago and 20.2 per cent bel ovv the totals fo.r March. SILK TEXTILES. - Districts No. 2 (New York) and No. 3 {~hiladelphia) both rr,ention the fact that the silk industry was less active during the last week in Anril and at the beginning of May. thought to mark the transition from the s~ring The drop, however, is to the fall season. Orders for fall delivery are coming in slowly, in sufficient ~uantity to mainof tain operation at about 60 per cent/capacity. Reports from Paterson and vicinity indicate a sligtt advance in May operations over the 60 per cent reported for Anril. Imports of raw silk during .Al)ril amounted to 3 5, 886 bales as compared with 14,043 bales in March. New York warehouses at the end of 16,386 bales. A~ril stocks in rose to 20)038 bales from ~-- X-3131 - 18 SHOES AHD I,EATRER. ?rices of nides a.ni skins nave qdvar.ced ractier sb.a:r'}:ly during May from tiJ.e a.bnonrld.lly low levels ::;revdiling in Ap.ril. Calf d.U1 go"-t skin :prices registered advances of by :::..bout ~Iay 30 per cent. c..rproxi~tely 50 per cent 20, whl.le cow and steer hide ;rices incre<.:tsed between 20 ciUd. The number .of sl:ins t:urchased advanced coincidently with the rise in }:rices. T:O.e derr.and. for calf skins, especid.lly in tne ligr.t weights, a.nJ for ,::olored gla.zed. kid has increa.~ed steadily in volurLe until t.nere hd.s a.risen considerable difficulty in oota1nin; t.iese varieties of leat.ner. During the past month more staple lec..thers. d~d ha.s spread from tnese lines to Sole lea.ther ®.s ddvanced about 2 cents per pound, c..ni considera.ble dema.nd for black glazed kid ha.s developed.. T.i:le deffidnd for belting leatner, on t~e otner band, hcis shown some slackening during 1~y• .Reta.il shoe scJ.es continued on a very satisfc.ctory scale J.uring A:t;:,ril a.nd May. Dem;.nd for women's s.noes is still considerably in excess of Jem""nd for men• s shoes. Shoe factories in District No. 1 (Boston) continued. to operate in April at about 50 per cent of ca.paci ty t as in February and March. Shoe stocks of seven Boston department stores were 32 ~er cen-.; less on L~ay lst than on the corresponding date in 1920. stores measured in iolla.rs were less t~ The sales of shoes of t~se one per cent lower 1uring the first four mont~s of 1921 than in the corres:poniing period of 1920. Ten New England stores outside of Boston showed shoe sales 17 •.5 per cent less during the first four ::lont::,.s of 1921 than during the corresponding yeriod of 1920. fer s~er July 15. an District No. 3 (P.ailad.e!pbia) reports tmt unfilled eontracts d.elivery are sufficient tq occupy most plants a.t Cdpacity until r1cmy ord.ers for fa.ll delivery have oeen placed., which indica.tes incre~sed confidence in the present level of prices. Plant operations r ':l::f.".-... '\ '·"' ~J .,1 • r'-'10 l>:ltl ~' X-3131 ... 19 In District No. 8 (St. Louis)are being maintained at cent of capacity~ fTom 90 to 100 per The deme'1.d centers in cheaper shoes and specialty goods. Prices in District No. 8 (St. Louls) ctecli.ned between 5 and 10 per cent during the past month. Durir.g I!Iay, two of the larges:t shoe ~ ma.J.lufa.ctu~ -:r~ concerns in the United States and a large tarming comra..1y .::onibir. . ed to form a new corporation which will manufacture and dis·:;ril·ute shoes on a large scale in both the eastern and western LUMBER. Demand for lumber continue~ st~tes. to improve during April as a result of an increase in building operations and a further recession in prices. District No. 12 (San FrC:~nc5.;;co) for lumber is showing a0t:i:::i.t;y a:1.d :::;ta~:)Hi ty~ from week to week and movement to local groWing 11 • :reports that the present market ~d "The d~mand is increasing ea.stern consuming centers is Orders received during t:ne four weeks ending April ~0 b~r the four lumber manufacture~s 1 association of District No. 12 (San Francisco) showed an increase of 54 per cent over those for the four weeks ending March 26. Production during the same .period increased 4?.4 per cent and shipments 58.4 per cent. Shipments were 11.? per cent resulting in a further reduction of stocks. ~bove production, One hundred and fifteen belonging to the West Coast Lumbermen• s Association report3d for ~ills t.'.:e four weeks ending March 25 a cut of 220,262,000 board feet, sbipmcnts of 253,427.000 feet, and orders of 263,666,000 feet. for tte four weeks ending March 26, with 118 mills Corr~sponding report~ng 18?,917,000 feet, 209,9?0,000 feet, and 213,431,000 feet. industry has not ~ffiprove~ in 1n1ison with the mill industry figures were as foll~ns: T:;...a J.oggin3 ~d,althou;il the present visible su:ppl;r of logs is limited, many logging companies show no tendency to reS\'.ffic op"'rations. evidenced in District No~' Increased del'!kllld for southern pine 6 (A.tla:1ta) during April. '''""s In the week endinc; .. r· X-3131 :r"' _, - 20 April 29 orders received by 134 mills of t~e Southern Pine Association were only 7. 8 per cent belov• normal proJuction, whereas actua.l prod..uction was 26, 8 per cent and shir,ment& 14. 9 per cent below normal production. In Dist.t~ct No. ll (Dallas) the production of 29 souti:lern pine mills amounted to 61 per cent of normal. Orders booked by the 29 mills were oquivalent to '72 ·· per cent of tn.eir nor...rkil production, wherea* the same .nu.r.lber of r:-ills only booked orders equ.al to 61 per cent of their normal production in March. On .April 29 the volume of unfilled orders on the books of t...:..ese 29 reporting mills w~s 37,699,200 feet, in com~arison with orders totaling 30,265,302 feet reported by .::1 like nu.'11ber of mills en April 1. District No~ 8 (St. Louis: reports tb.at there was a heavy vohune of criers for yellow pine and Douglas fir in tile latter part of April, which has been followed by a lull in demancL 11 Tne ~endency of prices of high grade hardwoods is decidedly nprvarl, lower grades continuing weak ,:1nd unsteci.d.y11 • Reports of both Ir4nufa.cturers -md retd.iler·s of lumber in District No. 9 (Minneapolis) iniicate a consiJerable increase of a,cti vity. Tile April cut of 15 roan-,lfacturJrs Wcl.S 23. 2 per cent greater t.uan in Marc.a and s.o.ipments increased 46.2 per cent. Stocks at tne enJ. of tne month. were 1.1 per cent higher t.hu.n the close of March. Com:pd.rison vvitb.. April, 1920, however shows cut 37.1 per cent less 1 shipments 47.1 per cent less, an~ stocks 46.5 per cent grecJ.ter. District No. 5 (Richmond) states that lumber prices have fallen from 10 to 15 per cent in the past month~ . An increased demand for southern pine ani Douglas fir is reported from District No~ 3 (Philc1delphia), but "Sales do not average more than 60 per cent of last springf s business 11 • Prices in tba. t District lld.Ve declined since January 1, and quota.tions for both hc....rdwood and softwooi are now about 50 per cent below the high levels of ,1920. /IJ \'--"' ':L..: \.:!::. X-3131 .· ,-,. " ,._ 0-.i:~) -21BUILDING OP.EM,TIQNS. of activity during April. Building operations showed a marked increase This activity is ev~dehced ~like by st~tistics of tc.e value of contracts awarded., the number of builiiing permits issued, and the value of building permits. Wherects tb.e increase of build.ing opstates . erations in February was confined tojwest of tne Mississippi River, an); adv~ce in April was reported from almost all sections of the country. Tais upward movement was most general iri the case of resiiential building, but considerable incre~ses of the Districts. in other classes of building occurr•d in some Contracts awarded in District No. 1 (Boston) amounted to about $15i700,000 in April, as compared with $12,200,000 in M.irch, an incree:.se of 37 per cent. About $6,500 1 000 of tt.c April total w<:.s for res- identi4l purposes, as compared with ¢4,300~000 in March. . In District No. 2 (New York) contracts ~~arded during April had a total value of about · $52#100~000 . . as compared with a value of $30.900,000 for MaDch. ~n incredse of ,• 69 per cent. Residential building amounted to $18,100.000 .in M4rcn and $28,500,000 in April. Contr.:1cts totalling .$15,100,000, of which 05,300,000 ' were for residential purposes, were awarded in District No. 3 (Pb.iladelp11ia) during April, in comparison with ~c~ awards of $14,100,000. of :,j5,000,000 were for residential purposes. In District No. ~ w~ch (C:teveland) contracts awarded during April totaled about $34,800,000, as co=Pared with awards amounting to $32,700,000 in March. Of t.a.e April total only $9,100 1 000 wa.s for residential puxposes, as compared with for new buildings in twenty•three cities of ~11,400 2 000 ~istrict taled 1,688 in April as compared with 1,718 in lv'ha.rch. in Marcn. Permits No. 5 (Richmond) toThe value of tJ::is ne• construction amounted to $13,594,575, the highest monthly figure ever recorded for this group of cities. This was due to the inclusion of or1e in- X-3131 ~ -2;:- dustria.l project -.vhicn will cost ~6,000,000~ _r-,f'-, C·::.:J) "The housing situation in o.ll cities in the :0istrict continues critical 11 • A considerable increase in building activity is r.;;::orted from Jistrict No. 6 (Atlanta), but this is wore noticc~ble in tne nt~~ber t~an in t~e v~lue of building permits. Contra.cts a:-Nariei in Jistrict No. ? (Chlcago) iuring kfril totaled $53,700,000 _ of 'VLiet. ~13,000,000 were for residences, ;:;..s compared v1ith . 37 ,·:rOO~OOO luring ;1<.irc:.:., of wb.ic~ ~9,300,000 <1 were for residences. total of In five Nportin; citi.ss of ::istrict No. G (St. Louis) tiJ.ere was an increa.s.e in numter of permits durin~ April J but their total was less than in lV..a.rcn•. Nine cities of District No. 9 (Uinn;;<.:.polis) issued 2,368 ~nnits, valued at i5,SOG,Oll iuring Ar:ril, as compuei witn 1,639 permits, value·i at $2, S21,59l~ ::'..uring r.fa.rch.. Tnis incre.::~,se in builiint; c..<.Cti Vi ty is accou..."lted. for almost entirely by an increase in the permits issued for the of s~~ll bJilii~ss~ sas City show a, 2,770 in March. R~ports construction from seventeen cities in District No. 10 Fan- total of 2)GS8 permits issued. in April, as compared with Nine cities in District No. 11 (Dallas) report 2,SI.9o :per- nits, v ...:lued at $5s 633,349, issued in April, as co:::pared. vvi th 2, 331 penni ts, valued at $5,190 1 191,. issued in ~.1arch. Tile value of building permits for twenty cities of District No. 12 (San Frc..ncisco) cUnounted to $19,907,521 in April in compCl-rison with $1CJ, 542,035 in March. 11 :::;,cti vi t y approaching a building boom is in progre ss1 E1J[PLOYTviENT4 The employrr£nt situation has r..ent during the past month. In Soutj,ern California n s~ovvn no signs of i~provc- On the contrary, all available evid.ence :points to """ sligl:.t increase in numbers un~nployed, despite the d.bsorption of labor by farming Jistricts und industries which ~ve experienced a limited revival of active operations. In New Engl~nd, the situation remained virtually r u·::.:.·i X-3131 1"1, ~.d\..-,~ -23unchanged during the month. There~~s a. slightly increased derrand for tex- tile operatives, especially weavers, and for mecCanics in the building trades. TDere was no revival in the metal trades, aowever~ ment Office reported a fair demand for common The Boston Public ~loy- labor at 50¢ per hour. The Springfield office stated thd.t the der.:a.nd for farm. hands was less t.ckll1 usUcLl a.nd tn.ere was no difficulty in securing men a.t wages 20 per cent to 25 per cent below those prevailing a year et.go~ During r,1ay several ra.t.a.er exten- sive strikes added to t4e number of unemployed -notably garment and paper making iniustrie• and the building t~ose trades~ affecting the In District No. 2 (New York) there was probably a slignt decrease in nunfuers employed during the montbk The New York State Bureau of Labor estimated t~t about 500,000 persons were idle, 150,000 of whoc were unemployed because of labor -tisputes. .Among the latter 'Nere included rnd.rine vwrkers, traction <.::JJ.d build- ing workers in vc.rious cities 1 and. employees of :printing c.nd. publismug establishments. in numbers The Industrial Commission reports a 2 per c.ent reduftion emploj~ed in fd.ftories of New York State during April. Wage re- ductions which affected about one-half tue firms reporting to t.c..e Federal Reserve Bank of New York in April ,have since become more wiit;S:fN2l-i, a:nd. it is Jstimated t:Uat about three-fourths of the worf"..ers in the District :c.ct.ve .been affected by reductions eit~er acnieved or prospective. Employment c~- ditions nave lh~dergone little change in District No. 3 (PDil~delp~a). result of attempts As a t . . reduce wages, strikes are in progress in Philad.elpcia affecting the full-f<J.sbioned hosiery _workersj.~; tile printers and Cdrpet weavers. T.!lere are also strikes among tne building traJ.e 1vorkers of Philadelphia and otner large cities. 1-a.rly noticeable 11 In District No. 5 (Ric:c.mond.) unemployrr:ant is particu- among middle aged c.u"ld older women who have been releco.saJ. from factories in considerable numbers 11• Farm la.bor is in excess of ic;;-.. _nd., i X-3131 -24and wages have been greatly reduced. an incre~se In District No. 6 (Atlanta) there was in April of-8.8 per cent in numbers employed in Atlanta accord- ing to the United States Department of Labor. decre~ses On the otner band, of 13.2 per cent and 8.9 per cent respectively were reported from New Orleans and Cbattanooga. Orleans~ A atrike of metal trade workers in New wbicb. bad lasted two nontbs was finally settled by an agreement to accept wage reduc· tions of 10¢ per :C.our. The New Orleans printers were on strike at d;J.te of writing,_ asking a '44 hour week instead of tile prevailing -18 hour y,reek. _T.fle Federal Reserve Bank of Chicago received reports directly frm:: 178. concerns at p.resent_ employing 115,000 workers, giving da.ta as to , t~ nur..1bers employed and the amount of pay roll in April as compared with the preceding :r:onth. · There ~been returns from a decrease of 3.9 per cent in numbers as compared C~cago wit~ r~rch and 1.9 per cent for the District as a whole. Pay roll totals bad fallen 6.3 per cent in Chicago and 4.2 per cent in the District at large. The Free Employment Offices of Illinois showed a fall during April from 275 to 232 in the number of applications fo~ eacn 100 pl~ces open•. In Detroit, however, at date of writing 118,497 men were reported unemployed as campared with 100,347 on April 12. ticular cl::lange ~ conditions is noted. In District No. 8 (St. Louis) no parT~ trend in wages continues sharply dovmward. and furtl:i.er cuts :nave occurrad within t:Ue flour milling. cooperage, plumbers' sup~lies, mobile bodies, candy .md in some cases in pc:~.st 30 d"'-YS in lumber. far.m implements, stoves, auto- tJ::..e builiing trades.. is especially pronoWlced among common labor ani railroa.d workers. Unen.'Ployment In District No. 9 (Minnea.polis), reports from 15 lumber manufo.cturers w.u.o ernployed 1, 9a4 men in March showed an average decrease of 5 J)er cent in number of employees in April, while 29 iron mining companies employing 5,309 men in !furc::.. reduced t::..eir forces about 6 per cent during tile month. ~d IfJ.c:;n,;;.:.n copper X-3131 - 2;::) - mining companies showed a reduction of 43 per cent in numbers in APril, as a result of rather extensive closing. t~ere ever, is little surplus labor. In the farming districts, how- The United States Dep~rtment of Labor reported decrei::l.ses in numbers- employed a.t t.o.e end of April a.s compared with t:C.e end of March for both Minneb.polis and St. Paul, amounting to one tenth of l per cent and 13.? per cent respectively. These figures, nowev~r, only apply/to large. esta.blish~nts employing over 500 men. District No. 11 (Dallas) says "an unusually large surplus of farm labor is r~rted from t.Ue rur.::l-1 listricts due ».rgely to the growing tendency .on the part of the f.:.r,.;.ers to cultivate only such acreage as they are able to take ca.re of wi!ulout hired help". Largely as a result of strikes in the building tra.dss ani a:nong ma.rine workers, unemployment increa.sed in District No. 12 (San Fr....ncisco} where 15,000nen were out of work in May, but elsewhere in the District, iecreases were the rule.. JU though improved conii tions in tile lumber industry toget.aer wi tn demands for agricul tu.ra~. labor Cd.USed a decre~se in the surplus labor in the cities, the reduction han not been matarial as was anticipated because demand as elsewh~re a~ wo.s restricted by a disposition on the part of fanners to do more work unassisted& \ffiOLESALE TRADE. wholes~le firms in the four and boots and shoes, country luring in May Tae seasonal increases in the sales of reporting sG~.les t~e whic~ le~ding were lines of hardware, groceries, dry gooas ~ite pronounced and general througnout the month of March were followed by equally for most reporting lines. ~arkcd recessions The returns from 25 wholesale bard- ware firms located in District No. 3 (Pbilc:LdelpJJ.ia) were an exception to the general rule, as net sales increased 11.4 per cent during April . '' ~s conp~red with l\'b.y, although sales w.:;re 18.? per cent below those for April 1920.. T.b.e increa.se ;l£tributed to a gd.in in building activity, as the der..ani for X-3131 -26mill supplies ani gener.::.l existed in recent rr.ontD.s~ ~rJ.cvc..re wc.s sa.id to be tD.e poorest that has ne;.:.rts fr-::,L .51 wholesd.le grocery firr::.s in t=.at Jistrict s..::.owei declines of 14.. 9 :per cent from H'""'rc:Ll totd.ls e:,nd 3o,4 :per cent from the sQles of April 1920. AltD.ough sharp price declines ex- plain sowe part of tD.e difference in total s~las 1alues as between this ye.o.r and last, they do not account for tile whole of t:W.O.t difference. Re- turns from District No. 4 (Cleveland) present comparisons only wi til April 1920, ani declines for the eight ::..:.rd•vi:!re firms were 21.9 :per cent, sli;i:.tly gre~ter t~ in Jistrict No. 3 (Philadelphia), while sales of 14 grocery houses were 37.7 per cent less and sales of iive dry goods concerns, 4..2 percent.lower. s~les In hardware 1 groceries, dry goods. and ::oats and shoes, in District No. 5 (Richmond) fell off from tile :March totat by amounts ranging from 1.7 per cent in the case of hardware to 27.2 per cent in dry goods~ The lcclines as comfared with April 1920 in hardvare to ,39.1 per cant in dry goois.. smll lots for i~z.eliate v~ried from 22.7 per cent Orders in all lines are in shipment with the exception of dry g~ois. Declines in April sales as cor.1:pared with !/Iarch were more :r:ronounced in general in District No. 6 (Atl2.lltc..) than in District porting dry goods fires wbic~ w~s J No~ S (Ricb.mond.). however, showed a reduction of 25.5 per cent, not quite so large as in the Richmond section. firms reported s~les firms, thE; drop v;as The 15 re- The 13 hardware 10. 6 per cent below March; in the case of 20 grocery 16~ 2 per cent • and for seven shoe houses, 33.4 per cent. Declines as compared with a year ago averaged 39.7 per cent fer iry goods, the ctnimum figure, - and 47. 5 per cent for groceries, the maxirrum~ In District No. 7 (Chicago) grocery sales of 26 firms suffered an almost e~ually heavy decline of 42.8 per cent, dry goods sales (12 firms) were 35. 3 :per cent. lower, anl shoe sales (10 firms)) Z4. 2 per cent less than O.urin5 April 1920. In District No. lO (Kansas City) the sa.les of three -27- r-·,,1 X-3131 reporting grocery firms were less than those of April 1920. l..__.v•lJ~_j_ April sales were also less tJJ.an those 'of Harch although weo.ther o.ni ro~J.. coniitions were assigned as the cause of this fact. re~:::Jorting three The wholesale ~trlw~re sales of firms are likewise 40 per cent belmv the totc;.ls of o. ycc..r ..1go a.nd. 18.1 per cent less thm in l/Iarch.. Contrary to the general tend.ency, · 0ronounc-::i the wholesale trade returns froinDistrict No~ 11 (Dallas) bad shovm/rcluctions in March So1es of hardware a.s compared with February and the report for April states tuat reductions not only continued but were slightly tb.a.n in J;larc:U.. gr~at~r Seventeen grocery firr.Js had sales 12.4 per cent below rtrcih totals which in turn were slightly bel~~ February figures; sales of five dry good$ houses were 25.8 per cent lower; and. sales of tvvo hardware fims, 9. 7 per cent less.. com~ared As from 30. 0 per cent· for J:.::l.rdwttre to ~Jo. 4J~ -v.,ri th April 1920, decre:..ses r..1ll.;ed. 0 per cent for e;roceries.. District 12 (Sari Francisco) says that the volume of orders for s-urr.:-.1er delivery pl .....ced. by retailers is not only much in this respect \7d.S witnessed in April. quanti ties for imnedic.tc need. ~-ared belo~;v last year, but no ,improvement Buyir13 continues to be in lim$. ted The reductiot1s in sales; however, as com- V<i t.a. the preceding month are on the whole not by any meons as striking Sales of the Z4 reporting hariware firms dropped as in ot.a.er Districts. only L 7 per cent; grocery so.les (30 firms) fell 13.. d per cent; shoe sales (L fir..1s), C 4 per cent ani d.ry goods sales (12 fims) recorde•d. a. slignt advc.nce of 1. 4 per cent. As compared with a yec...r ago, declines ran from 3S.2 per cent for groceries to 15.2 per cent f;or dry goods. RETAIL TRADE. Retail flcct(;d a s0c::.sonal decline. showed a lecre-.s:; both r::ontb '- ye:::.r .::.go.. wb.~n tr.~de throughout the country during A-;·ril re- In :rract:..cally every District the net sales coirrfc;,red witil l..1st ::r.onth and also with the same However, when the price changes are considered, it v10uld see::-_ th.:;.t t.a.e actuCi-l volu:. e of units sold during April, 1921, was gre.::.tor r.-··"" '-.> fC••• ·~-) X-3131 -2.8- than that sold during the s....r:..; r.:.onth :. ye"-"r ago.. T:..:.a unse...:.sonable we""t:.:er cond.i tions during April <:.;,nd tt.e fact tlk.~t E.;.ster f;;;ll in I1s.rc:U ttis year in instead of/April were, of course, large factcrs in t:.:e iecr3:.se of ss.les. The reports from r·epresenta ti ve de:partJLent stares shovv a decred..se in net sales frcm the sa;:e month u. year ago of l, 9 :per cent in District No. 1 (Boston) 1. four per cent iYl District No. 3 (Philadelphia), seven per cent in District No. 5 (Rictmond) 1 17.7 per cent in District lTo. 11 (Dallas), and 9.3 :per cent in District Uo. 12 (San Frc:.ncisco). In evary District stocks on hand at the end of the month again showed a large decre~se from stocf::s on :Uand. at the end of April, 1920, the decrease in most Cci.Ses being l.:;.rg.:;r tron the cornyara.tive figures of a month ago.. Most Districts showed a slight increase in stocks at the close of April as cor:J_pared vvith stocks at the close of r~rdrch. The rapidity of tb.e turnover of stocks b.,:;.,s been gener-W.ly slovv-er than last month. the end of April to total purc:uases The percento.gG of outsLnciing ordej$ <:1t durin~ , the c . . .lend.'""r ye<J..r 1920, :aa.s been · generally decreasing, which affords evidence that the =ercL~nts have been confinin; their purchases to meet ir::mediate raq,uiremcnts, and. :UC.ve not been Pl'"'-cin; ~ny gre . . . t amount of orders for future delivery.. However. reports fro::1 v.::.rious Districts indicate tna.t some retailers are now anticipate their fall deli very. re~uirements be~Iinnin::; in that they are pla.cin? some orders for to -29X-3i31 PRICES. As regards prices) there seems to be increasing realiza- tion of the fact that a relatively stable wholesale price level will not be obtained until liquidation has occurred in all lines in which production> ccnsumption or prices are out of harmony one with another. Liquidation of a pronounced sort has occurred during the course of the past ye:1.r in raw naterials such as grain and live stock, cotton> wool, hides> copper and other r.onferrous ~n materials prices. these lines are n~~ meta~s, with the result that raw being sold at approximately pre-war In the case of cotton 1 hides 1 and non-ferrous meta~s, condi- tions in April and ear-ly May were such as to indicate that a fair degree of stability had been obtained and prices showed slight increases over March levels. Woc1l prices, however 1 continued to decline because of the abnormally heavy i.mportat~.ons .vhich are being made in anticipation of the new tariff measure. It is impossible to say whether this relative stabU.ity in the textile and agricultural lines will be perna.nent or not. In ti1e case of cotton, wool 1 and grains 1 stocks vv-hich are being, held at present are considerably larger than were customary before the 1var. Commodities in which the carry-over stocks from the period of abnormal g,overnment denand were relatively sma.ll 1 did not feel the effect of liquidation as early as other comrnodi ties. iihen buyint= was restricted and production curtailed in textiles and ether lines, however 1 the effect of this was passed on to such corn.rnodi ties as coal, building materials. As a result~ petroleum~ iron and steel and other prices in these lines have been reduced but not as much as in the cas8u mentioned abov'3) since stocks had net accumulated to the same extent. Decli~1e in spct prices of bituminous coal has been very spectacular> but the present level is still as high as • r r. ~~.,~ \.._.,.-' 1'-..).~ ~ .. }!:_ -30- in X-3131 1919 and th.e first months of 1920, and at present the tendency of these prices seems to be towards higher levels. Contract prices for the coming year have apparently not yet crystallized. p~troleum, price w~th level.. Pig iron~ and leading building nateria.ls are still being reduc,ed in present levels ranging up to and e.oove twice the pre-war As conditions improve in the manufacturing lines demand will· doubtless increase for these commodities, and it is impossible to ,say· whether these factors will be stronger than those making for lower levels. An interesting factor of recent weeJ>:s i~ the readjustment of prices within industries in such a way as to bring a mere normal relationship of the variol.ls grades or classes of manufactured goods to one another. cloth. This has been especially noticeable in the case of cotton Profits in certain lines have been narrowed down to such a point tnat readjustment of this sort is essential to future business. Index numbers of wholesale prj.ces show that the decline in April was somewhat greater than in March. Labor Statistics shows a decline of The index number -of the Bureau of 5 per cent, in March, while the index number of the Federal compared with ~eserve 3 per cent Beard, constr1.1cted primarily with the view to international comparisons, also shows a decline of 5 per cent. Retail priees of food were likewise reduced at a somewhat more rapid rate in April than in March. According to the index of the Bureau of Labor Statistics based upon prices of 43 articles of food in a large number of citiesJ the reduction amounted to 1.3 per cent in March and 2. 5 per cent in April. the shift No statistics are available to shew in the retail prices of other cor.omodities. • r·, "'-,;"':' "'J'(j'< -31- x..3131 SHlPPlNG. The shipping situation snowed some improvement during May,. the most encouraging feature being a sudden demand in the early part of the month for the charter of coal-carrying ships for lV'.ay loading. The demand was chiefly for United Kingdom destination~ as a result of.the stiffen~!!. continuance of the British coal strike, but rates .all around. consequence. in Whereas ships had been chartered to carry coal from North Atlantic ports to the Continent for as low J.s $3.75 per ton in March and April 1 the quotation in the .early .part of May was $!5.25 and higher. While these increased rates have not been sufficient to attract many ships that had deiinitely been laid up, they put a stop, for the time being at least, to further plans of owners for placing additional vessels in the hands of caretakers. The conditions underlying the steamship business, namely, high operating costs, diminished cargoes, and low rates are, however, not substantially changed, and it is generally agreed that an increase of production and of the demand for goods throughout the world must be realized before the present situation can be much improved. As for the marine strike in American ports, the effect has been less serious than was anticipated although some outgoing steamers have been delayed.. In a statement issued toward the end of May, Secretary of Commerce Hoover, gave some figures showing the effect of the marine strike in the various United States ports from Mayl- 22 inclusive. The figures show that 190 American steamers were detained by the strike, while 936 American steamers sailed from American ports during that time. pac~fic The Coast ports have felt the strike most severely, the Gulf ports somewhat less, and the Atlantic ports only to a comparatively small extent. .J