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FEDERJIL
RESERVE 'BO.ARD
STftTEMENT FOR THE PRESS
X-3210
For Release in Morning Papers,
Saturday, October 1, 1921.
The fallowing is a review of general business and
financial conditions throughout the several Federal
Reserve Districts during the month of September, as
contained in the forthcoming issue of the Federal
Reserve Bulletin.
Further decided imp1·ovement in the credit situation
has been the noteworthy feature of business during the month of
September.
In the cotton regions liquidation of credit has been
rendered possible in consequence of the marked advance in the
price of cotton which has carried practically all contracts
·above 20 cents a pound.
At the same time Jlmprovement in
~vhole-
sale and'retail trade has been expected as a result of the
increase in the ability of the farmer to settle his accounts
both with banks and with dealers.
The greater abundance of
funds in the cotton raising districts is reported as having been
reflected in larger wholesale trade.
The effects of liquidation
expected from the advance in the price of cotton have not as yet
had time to appear in the condition statements of Federal Reserve
I
Banks.
On the other
hand~
the advance in prices not only of
cotton, but of other agricultural products has had certain indirect
results.
The textile industry has not vet
bou~~t
freely of cotton at
...
'
\
X-3210
-2-
the new price level which has been established but such mills as
possessed a stock of
volume of orders.
l~v
priced cotton have attracted a considerable
In the grain growing districts, the output has
continued to move steadily to distributing points and has also gone
abroad in considerable amounts.
This grain movement bas been
practically the heaviest on record.
Heavy movemsnt of live-stock
has also been noted and prices have weakened.
While attention has been largely concentrated on the
agricultural side of business development during the month, manufacturing has also continued to sha# a wholesome improvement in
many lines.
The advance in the iron and steel trade first noted
in August has been sustained during the month of September in
certain l1nes 1 notably
~n
pig iron and light products such as wire
and sheets, in which price· advances have occurred.
Although orders
fell in .August an advance has occurred since that time.
increase in the numbers of men ernployed has taken place.
Steady
In this
connection should also be noted the improvement of the railway
industry.
The net earnings of Class I railways for August were
about $70,000,000 and on many lines the rate of earnings is near
the level taken as a standard in the Transportation Act.
Textile
zilanufacturing has been well sustained during the month, and the
boot and shoe industry has been notably active in Districts No. l,
11 and· 8.
There is still, however, hesitancy on the part of dis-
tributors to place f oNard orders al thougn a large seasonal increase
-3,-
X-3210
in certain lines of wholesa+e trade coupled with replacement ·
orders have resulted in advances.
Prices continued to adyance during J'ugust.
The index
compiled by the Federal Reserve Board for international comparisons registered an increase of two points over the July figure,
while the trend during September also appears to have been upward.
Declines in particular lines of business such as live-
stock are due to local marketing condi tiona.
Employment on the
other hand has increased only slightly although the situation is
better than at the end of August.
The end of the harvesting and
crop-moving season may tend tc increase the number of unemployed
but such tendency is likely to be offset bY growth in demand on
the part of manufacturing industries.
Railroads have begun to
increase the number of their employees to some extent.
especially noteworthy ,
This is
in the far vv est and is emphasized in the
reports received from District No. 12 (San Francisco)
•~here
holds true also of general rublic utility undertakings.
it
The fact
that building contracts have reached a record figure for this year
promises larger employment in that direction during the
autumn~
Financially the month has been notable for the decided fall
in German exchange, the mark at one tia:e going below .9 Of one cent.
Easier money conditions have grown out of the gradual liquidation in
the east and south and two Federal Reserve Banks have reduced their
discount rate to 5 per cent.
The shrinkage of bills held has been
a natural outgrowth of the credit situation.
Call
~oney
as well as
commercial paper rates have tended low:3r.
Taken all in all~ the month
has been in the main a period of distinctt. encourag~li'Jentand gives
promise of better conditions as the autumn and ~~inter advance.
-4.AGRICULTURE.
was
92.9
X-3210
The composite condition of all crops on September l
per cent of their average condition on that date during the
last ten years) as compared with a composite condition of 93 per cent
on August 1.
There was a serious deterioration in the crops of cotton
and oats during August., but this was largely counterbalanced by a
marked improvement in the condition of the corn and tobacco crops.
The production of corn forecasted on September l amounted to
3.166Jooo,ooo bushels., which is 154.ooo.ooo bushels greater than the
forecast of August 1 and 316.ooo,oco bushels greater than the average
production for the last six years.
(Minneapolis) is about
the largest on record.
6
The corn crop in District No.
9
per cent greater than that of 1920. and is
In District No. 10 (Kansas City) there was
also a considerable improvement in
~he
condition of corn during August.,
but hot weather and lack of moisture caused considerable damage in
Nebraska and Oklahoma,
The indicated production of wheat was 754.000.000
bushels on September 1., as compared with a forecast of 757,000"000
bushels on August 1, and an average production of 824,0C9.000 bushels
during the last six years.
However, District No.
9
(Minneapolis)
stat3s that the spring wheat crop is superior to any crop in a generation
from a milling and baking standpoint., and estimates that the gluten
content will average 2 per cent higher than that of the 1920 crop.
The
white-potato crop improved somewhat during August, but the estimated
production on September l was only 323, coo. 000 bushels) in cc.nparison
>vith an average production of 3601 000 1 000 bushels during the previous
six years·.
District No. 6 (.Atlanta) reports that the condition oi the
cane sugar crop in Louisiana om September 1 indicated a production of
222,527 t'ons of sugar, as compared with a production of 169) 127 tons in 1920.
-5out the cotton bslt.
Since the issuance of.
X-.3210
t~e
condition report of
.August 25, the cotton crop in District No. 1.1 (Da:'.lad has suffered
serious damage from a t:-opical storm which swept twenty colillties of
Texas.
District No. 6 (Atlanta) states that boll weevils have continued
to be very active throughout Gecrgia1 ru1d 1 as a result, the crop in
thirty-two counties is estimated to be less than 30 per cent of normal.
The Alabama crop, on the other hand, showed some improvement during
the past month.
Reports from Di,"ltrict No, 10 U~ansas City) indicate
that the Oklahoma crop has been seriously damaged by hot weather and
drought, and has also suffered during Septemoer from the continued
activities of the boll weevil, the boll worm 1 and the army worm.
District No. 6 (St. Louj.s) reports that the depredations of the boll
weevil continued unchecked during September, and that the crop has
continued to deteriorate at quite as disastrous a pace as in August.
The adverse news concerning the condition of the cotton crop resulted
in an increase in the price of cotton at New
Orle~s
from 12 cents
per pound on August 16,to 19 cents per pound on September 16.
grol'~ers
Cotton
in general seem to consider that this appreciation in cotton
values more than compensates them for the reduction in the volume of
their crop.
TO]}CCO.
As a result of favor·able weather conditions during
August, the average condition of the tobacco crop increased from 67
per ·cent· on August 1 to 71 per cent on September 1~ and the estimated
production on the latter date was 948,324, OCO po1mds.
The increase
was found in both the cigar and manufactured and export types.
The
North Carolina and Virginia crops are far below last year, the second
-6-
X-3210
being estimated as the smallest since 1907, and on account of unfavorable weather much of the crop is of poor grade.
in progress in general during September and has
some sections.
b~~m
Harvesting was
completed in
The South Carolina markets have closed, the crop
having been short and on the whole of unsatisfactory quality,
Good
tobacco brought satisfactory prices, but low grades ·were difficult to
sell at any price.
The eastern North Carolina markets opened early
in September and repeated the situation found earlier in South ,
Carolina.
The demand for cigars and cigarettes in District No.
(Philadelphia) apparently shm·;s !urtte.r imprvve:nent.
urers in general report
increa~ed
sales since JLlne.
cent cigars continue to be the best oellers.
3
Ci~ar manufact-
Eight and ten
Oporations are still
less than at this· time last year but they are steadily increasing.
FRtTIT.
There was
lit~le
change in the condit:! on of the deciduous
and citrus fruit crops during .August.
year are the smallest in a generation.
of apples was estimated at 107,000,000
The
decid\~ous
fruit crops this
On Septemt1r 1 the production
bushels~
as compared with a
forecast of 109,000,000 bushels ori August 1, and an average production
of 193,000,000 during the last six years.
crop since 1890.
This is the smallest apple
The forecasted production of peaches was 33, 000, 000
bushels, a decline of 13,100,000 bushels from the average production
of the years 1915 to 1920 inclusive.
It is estimated that the pear
.
crop will amount to 9,475,000 bushels, as compared with 17,27:;,000
bushels. in 1920.
The condition of the watermelon crop is the best of
any crop planted this year, and is 121.7 per cent of its average
-7-
X-3210
condition during the last ten yearsw
District
No~
6 (Atlanta) reports
that there have been large yields of watermelons in Mississippi and
Tennessee.
The .Florida crop of citrus fruit is estimated to amount to
13,600, 000 boxes 1 as compared with 131 200, 000 boxes in 1920..
The ·
yield of grap-efruit in that state will be exceptionally large,
~vhile
the crops of limes and tangerines ;will be below normal.
GRAIN
MOVEME~TS.
Receipts of grain at primary markets were
greater in August than in July and exceeded the receipts in any other
month on record.
This was due mainly to the large receipts of winter
and spring wheat.
Receipts of wheat at 1hnneapolis and Duluth during
August totaled 21,911,320 bushels, as compared with 11,261 1 947 bushels
in July and 9,297 1 300 bushels in August, 1920..
Wheat receipts at the
four leading markets of District No. 10 (Kru1sas City) amounted to
29,955,300 bushels in August, as compared with 32,7 89 1 400 bushels- in
July_, and 15,942) 000 bushels in A1.1g.ust, 1920.
oats also showed large increases in
Au~ust.
Receipts of corn ru1d
At Chicago 16 1 810,000 bushels
of corn and 16 1 7221 000 bushels of oats were received during J\ugust 1 as
compared with 81 954,000 bushels of corn and 101 722,000 bushels of oats in
July~
The August movement of corn to the four leading
~arkets
of District
No. 10 (Kansas City) was 96.3 per cent greater than that a year ago 1
while the volume of oats marketed was
1920.
36.8 per cent larger than in August,
Stocks of grain at interior centers also increased, except in' the
case of corn.
.
stocks ~f
Terminal elevators at Minneapolis and Duluth reported that
:·
grain and flax amcunted to 31,056,927 bushels on August 31 1
·,
1921, . an increase of 47 per cent over the st.ocks on July
•
30,
1921~
and
an increase of about 670 per cent over the stocks reported on Aubust 31,
X-3210
-8-
1920.
Stocks of oats in these elevators
have shown
a particularly
large increase and amounted to 21 1 567, ?59 bushels on August 31;· as
compared with 151 9191 084 bushels on July 30 and 1)228,383 bushels on
.Augu.st 31, 1920.
FLOUR.
Production of flour has been maintained at a high rate.
The output of mills producing 75 per cent of the total production of
District No.
9 (Minneapolis) during the four weeks ending August 27
was 2,289,335 barrels, an increase of 22 per cent over the output of
1, 871) 265 barrels during the four weeks ending July
3 0.
Rep orting
mills in District No. 10 (Kansas City) show an output of 2,482,618
barrels during August, which was 31 per cent greater than the July
output of 1,902,527 barrels.
Average production in District No. 12
(San Francisco) was 662 1 190 barrels for 70 millers as compared with _
598,615 barrels for 72 millers in July.
In considering these figures,
it should be remembered however, that for the United States as a whole,
'
average August production for the seven years 1914 - 1920 inclusive
was 32.8 per cent in excess of July production.
present year is ,however; 29 per cent in
exc~ss
The output during the
of production during
August 1920 in District No. 9 (Minneapolis) and 72 per cent greater
irt
District No. 10 (Kansas City).
Flour shipments from Minneapolis
and Duluth during August were 24 per cent greater than during July
and 14 per cent greater than during August 1 1920,.V'l.hile August shipments
from Kansas City were 29 per cent greater than during July, and 61
cent greater than in Aug,ust 1 1920. The milling situation in the
..
southwect has very materially improved, while "the unanimous comraent
p~::r:
of twelve reporting mills" in District No. 6 (St. Lcuis)" "is that
X-3210
-9-
business during the past two months has undergone a marked change for
the better".
Export inquiry holds up excellently in that District~
and the demand for domestic consu..mpHon, especially frQm the South,
has been better than at any time in more than a year.
A moderate
export movement of clears is reported in District No. 10 (Kanaas City),
and a fairly heavy demand from nearly all sections of this country.
'iiheat flour prices were lower at the
ope~ing
of September than they
ilere a month earlier, but subseq,lently in(:reased again.
LIVE STOCK.
Live stock on farms and ranges in general continues
in good condition, although some sections in District No. 11 (Dallas)
have been adversely affected by drought and heat.
Movement to market
has been very heavy, and efforts to hold it in check were not wholly
satisfactory.
Receipts of cattle and calves at 15 vv estern markets
during August were 1,418,237 head, corresponding to an index number of
141, as compared with 940,173 head during July, corre.sponding to an
index number of 93·
Recetpts of sheep increased from 1,035,674 head
during July to 1,56$,584 head during August 1
numbers are 76 and 115.
The respective index
Receipts of hogs hov.-ever decreased from
2,021 1 268 head during July} corresponding to an index number of 92, to
lJ 919,514 head during August, corresponding to an index number of 87.
The movement of cattle and calves and of sheep was, however, smaller
than a year ago, although that of hogs was larger.
receipts> of
cattle and calves were 1,451,985 head, of hogs lJ 754}209
·;
head and of sheep 1,687, 787 head, while the respective ir.dex numbers
were 144; 81 and 124.
A feature of the situation, states District
No. 10 ('Kansas City), is the dearth of geed corn fed cattle, and the
-10-
X-3210
greater volume of receipts have been light grass-fed stock.
There
is however a shortage of cattle in ti:le west and the delay in the
feeder movement this year has resulted in a large number of good
western cattle going to slaughter instead of back to the farms.
In-
crease of the feeder movement in August has been noted, and feeder
shipments of cattle and calves from 34 markets increased from
120,429 head in_July to 353 .. 619 head in August, vihile shipments of
sheep increased correspondingly from 138,414 head to 367,042 head.
As a result of the heavy movement, cattle prices in general
fell, and at Chicago even affected some of the corn fed grades of
cattle.
Similar changes were noted in the case of hogs and sheep.
Thirteen rErporting packers in District No, 7 {Chicago) show decreases
of 13.5 per cent in dollar sales in August as compared with July, and
35.2 per cent as compared with August, 19?.0, due in part to the decline in prices.
A
gradual improvement in the demand for fresh meats
was in evidence in that District from the middle of .August to the
middle of September., but some surplus found its way into the freezers.
Wholesale prices
ho\~ever
in general declined.
Stocks of fresh and
cured meat• declined somew-what during August.
~.
Production of bituminous coal increased somewhat during
AugustJ but was still far under the normal figure for that month.
It
was 34,538,000 tons, corresponding to an index number of 93. as compared with
30~3941 000
tons, corresponding to an index number of 82.
Compared with the average for the eight years preceding, 1921 production
is 62,000,000 tons in arreacs and is steadily falling still further
behind.
Purchasing has increased somewhat in DiGtrict No. 3 {Philadelphia}..
but domestic buying continues to be almost entirely for spot coal.
X-3210
-11Exr brt demand is reported very small.
Retailers'- yards in Districts No.
5 (Richmond) and No. 6 (Atlanta) are well stocked, and consumers -have been
slow in placing orders.
District No.
7
An increase in the
dem~~d
for domestic sizes in
(Chicago) is reported and the scale of operations in
Illinois and Indiana has accor1ingly increased somevvhat.
ditions in District No. 10
and
dur~ng
(K~~sas
Operating con-
City) show no material improvement,
September there has been a further slow·ing down of operations.
Although spot prices of certain grades have fluctua-r.ed considerably, the
average price remains practically unchanged.
Future quotations, states
District No. 3 (P-hiladelphia) are much higher, but consumers sho;-; little
interest in the contract market.
During the past few weeks the consumer has displayed more interest
in purchasing
anth~acite
Dem~•d
coal.
for the most popular size, stove
coal> has increased to such an extent in District No. 3 (Philadelphia)
that dealers
are having difficulty in filling orders promptly.
for other sizes have also increased.
August production increased to
7,196,000 tons, as compared with r,050... 000 tons in July.
index numbers are
97
and
95.
Orders
The respective
The larger companies made the usual ten cents
per ton advance on mine prices on September 1.
Independent operatorsJ
many of whom underbid the companies during the slack summer periodJ have
again advanced quotationsJ which are now 10 to 40 cents per ton higher
for prepared sizes than the company levels.
The continued sluggishness
of the small sizes, however 1 combined ••ith lack of storage facilities,
has._ forced them to dispose of these grades at prices considerably lower
than those of the companies.
Some of the independent mines w nich were
closep. on· account of the slack demand during the early part of .August,
have lat~iy resumed operations.
The output of beehive c=oke, although -ahow-
ing an appreciable increase, is still less than
15
per cent of normal, but
I
x
X-3210
-12the output of by-product coke is from
40 - 50
per cent of normal.
Producers
stocks have decreased as a rasul t of renevted demands from iron and steel
manufacturers, and spot prices in District l•Jo. 3 (Philadelphia) have
stiffened
materially.
E.'E.TRQ1E!IM.
The decline in pet'roleum production which commenced in
July continued at a somewhat accelerated rate during August.
This was
largely due to a marked curtailment in drilling operations.
Demand for
both crude and refined oils sho·Ned some improvement during August., but prices
of most refined petroleum products continued to declir.:.e on account of the
large stocks on hand.
Prices of fuel oil, ha11ever, showed a slight increase
during the early part of September.
District No. 10 (Kansas City) reports that development operations
have been curtailed in recent months to a point where fewer wells are nov•
being drilled than at any other time in the last three years.
Only 480
wells with an initial daily production of 69,787 barrels were completed in
August, as compared with 640 wells with an initial daily production of
77,997 barrels in July.
The total output of crude petroleum in Kansas
and Oklahoma amounted to about 13, 000,000 barrels in August, as compared
with
13., 598,000 barrels in July.
Production of crude oil in District No.
11 (Dallas) totaled 10,538, g93 barrels during August., a decline o{ 127,453
in comparison with the July output.
In this District only 223
ne~
wells
with an initial daily production of 27,302 barrels were completed in .Aug·1.1st,
as compared >>'ith 251 wells with an initi~ flow of 606 810 barrels in July.
Average daily California production declined from 331,252 barrels in July.
to 323,676 barrels in August, but consumption decreased even more and stored
stocks at the end of the month therefore increased to 33,329,725
barr~ls
Eighty-three new wells were completed, with an initial daily new production
of 20, g95 barrels as compared ..-dth seventy-six new wells producing 19,675
barrels in July.
-13-
lpoN
AND ST})£~.
X-3210
After a continuous decline since October,
pig iron proiuction showed an increase 'luring Aug-ns·t.
that month arr~unted to
July·
954,193
Tl:.e outnu.t during
tons, as compared with 864,555 tons during
T:r..e respecthye index numbers were
in blast remained ~~changed.
41
and 37.
The nurrbe:r of furnaces
Steel ir.got production showed a smnewhat
greater increase~ from 803,-376 tons to 1 1 138,071 tc..ns.
index numbers were 35 and
49.
1920,
This increase in
The respective
output was not however
accorrroanied by a similar increase in orders for adv~~ced delivery,~as the
unfilled orders of the United States Steel Corporation declined from
4,830,324 tons at tre close of July, corresponding to an index number of
92,
to
4,531.926
tons at the close of August. corresponding to an index
number of 86.
There is now a generally stt'onger tone in the indv.stry.
The improve-
ment which made its arypeerance in Au@U.st has become somewhat more marked.
This is notice8ble in the case both of pig iron and of certain finished
~roducts.
The demand for pig iron has broadened to some extent and more
interest is disp1a.._ved in contracting 'for future deliv'3ry.
Total sales in
Augu.st were the best of the year by a substantial margin and shipnents in
an even greater proportion.
'Prices hardened considerably during the latter
part of August after having dropped to low levels earlier in the month, and
some Jnc.reases are reported during the
p~esent
month.
Whereas the g-ain in
steel wo:t"ks
.August -pig iron T,>roduction was due 1?rinci,;:slly to the ~erations of/
stacks several merchant furnaces have heen blonrn in since the first of
,
-14-
September.
X-3210
The situation with respect to finished steel products however
is still uneven and conditions are unsettled.
Manu1'acturers of certain
of the lig"hter products, notably wire and sheets, have booked considerable
tonnage and have advanced prices.
In othe:.." lines, however, particularly
shapes and bars, further price reductio•1S h.::we be em made, and buyers in
th8se lines still are unwilling to
ATJT9~~_9~JLES.
~lace
orders for
fut~re
delivery.
August shipments of auto:rr:obile manufacturers showed
some increase over the July figures.
Carload
shi~ments
were 20,350 car-
loads, as compared with 19,470 in J"u.ly and 23,386 in August, 1920.
Drive-
ways, however, decreased somewhat and were about half those in .August,
1920, and the same is true of 0oat shipments.
Keen competition continues
among manufacturers, and further cuts have been made on certain cars.
In
spite of those reductions, reports from representative manufacturers, it
is stated from District No. 7,
(Chica~o)
seem to indicate that any increases
in sales by individual manufacturers have been at the expense of other
manufacturers, rather than a result of the develonment of new demand. ··The
condition of truCk manufacturers has been less favorable than that of manufacturers of
pa~senger
cars.
No. 4, (Cleveland) are at low
Immediate orders, it is stated from District
eb~, out inquiries have recently been in-
creasing.
NONFERROUS MET.ALSr
There was a slight irnproveoent in the demand for
nonferrous metals in the early part of Septemr,er.
York, net refinery) was
11-7/8 cents
T'.re price of copper (l~w
~er pour~d on September
14, as compared
with ll-3/4 cents per po1md on September 1, while the price of lead at New
York increased from
4.4 cents
~er p~xnd on September 1 to
4.6 cents
~r
X-3210
pound on September 14.
The demand for zinc continued to be very light
and the price at District No. 8 (St. Louis) remained practically unchanged during the last month.
Copner production in .Au.13Ust amounted to
20,019,000 yaunds, in comparison with
in July.
a production of 16,390,000 pounds
There was a further curtailment of zinc
tons in July to 14,621 tons in
a considerable increass in
Au~st.
Au~st
~reduction
from 15,495
Shipments of zinc, however, showed
which resulted in reducing the
sto~s
on hand from 92,408 tons on .Au~ru.st 1 to s6 ,549 tons on August 31.
This
stock of zinc is not regarded as excessive, as it represents no more
than three months 1 normal conSUJilption.
Only about 3,000 :miners were work-
ing underground in zinc and. lead mines of District No. 10 (Kansas City)
at the end of Auwst, as compared with 12,000 to 15,000 1uring the years
1915 to 1917 incl,usive.
The demand for both zinc and lead ores from that
District continued to be restricted, but there was an advance of $2.50 per
ton in the price of lead ore durinli!
Au,~s t ..
COTTON TEXTILES. The unexpectedly rapid advance in the price of. raw
cotton has introduced such an element of uncertainty into all branches of
the cotton textile industry that it has been
"mark time" and to await developments.
necessa~J
for many interests to
There appears to be a great difference
I
of opinion concerning the future
consequently there is a
~neral
chan~es
cotton and
unwillinmness to enter into contracts for
future delivery based on present prices of cotton.
As many mills have been
carrying stocks which are below normal, they are not in a
into new contracts unless account is taken of recent
~aw
in the rr.arket for
~osition
~rice
to enter
increases.
Dis-
'
X-3210
tributors, on the other hand, fear that attempts to pass on price advances
will cause undue restriction of demand on the "Oart of the consuming pub·
lie.
As a result, both distributors a.YJ.d manufacturers have in many instance,;
withdrawn lines until a greater measure of stability in the cotton rrarket
can be counted upon to afford a basis for safe calculation.
Yarn prices
have advanced with the increase in the price of the raw material and have
been especially heavy in lon~ staple yarns.
In tr.e yarn market likewise
there are practically no future contracts being entered into.·
No.
In District
6. (Atlanta) reports from 34 representative yarn mills showed a decided.
3.d.vance in production during the m.cnth of Aurust of _14.4 -per cent as
measured in pounds while totals were only g# 7 "Oer cent· below the figures
for a year ago.
Orders at the end of Aurust were 56.4 per cent above those
on hand at the end of the preceding month while shipments during the month
advanced 36.9 per cent.
Thirty-three representative cotton cloth mills
in the District were producing a yardage 7.2 ~r cent greater in Aurust
than .in July, but the· figures were 39. g per
1920.
cen~
below those for Purust
Orders on hand at the end of August were 7.8 per cent aho'le those
for the end of July.
ln District No. 5 (Richmond) it was ~~orted
at
the date of writing that mills were running "on approximately full tirr.e 11
and that many of them had sold out their -products for several months ahead.
In this District too, some of the textile mills, since the rise in the
price of cotton, have withdrawn goods not previously contracted for and it
rerr:ains to be seen ho ·· much bu,ving will be done When these
fered at an advance in ,"Orice.
fSOOds are of-
The a'1'lount of raw cotton consumed during
X-3210
August amounted to 467,103 bales as compared with 410,120 bales in
July,
The total
amounted to
w~s
slightly below consumption of .Jlurrust 1920 which
483, 560 bales.
the National Associ3.tion of J:j'inishers of Cotton Fabrics showed a large
increase in the total gray yarda?-e of finishing orders received during
the month.
The output rose f!·om 82,734,438 yards to 101,741.412 yards.
The total finished yards billed during Au!'?:u.st amounted to 95,915,235 as
compared with 85.233,724.
T'ne total averaf<e percenta!ee of capacity O"Oerated
durinq the month of Au211st rose to 71 from a!·1 average of 62 in July.
increase in the average work ahead at the end of the month was
The
s1i~t,amount-
ing to 9~6 days as comparad with 8.9 at the end of July.
WOOLEN TEX~·II.E~.
The woolen industry in New England continues to
maintain a high degree of activity and woolen and worsted mills are
at about 80 uer cent of. cauacity at the
·nr~sent
time.
operating
The rnbnthly consump-
tion of wool which was on1y slightly above 12,000,000 pounds last December
(grease equivalent basis) has risen to.about 35,000,000 pounds in the New
England section.
District No. 1 {Boston) reports that the Boston wool market n()or.. tinued
to be moderately active during Sentember and ~rices naid for finer grades
were firm".
In District No. 3 (Philadelphia) carps t wools.
because of the strike of carpet and
ru~
lon~<
inactive
weavers, are now in demand.
There
X-3210
-18-
has been some shift of demand from woolen to worsted goods and conse~uently
production of the latter has increased ''Vhile there has been a slight
falling off in the pr<tluction cf woolens.
Du'!'licate orders for the heavy
weight fall season of 1921 and b'zying for the sprinP-: of 1922 is at the
present time much less active than it was earlier in the present season.
The special inquiry into the clothing
ind11~try
which is made each
month by District No. 7 (Chicago) indicates trat there was not much
in general conditions during the month of
Au~st.
chan~
The nurfiber of suits made
by reporting wholesale clothiers increased somewhat during August as compared with July and was·-.about e(1Ual to the output during Au,QU.st 1920 except
in the case of one concern which showed a large increase.
firms
re~resenting
The 13 reporting
tailors-to-the-trade showed an output for August
substan~
tially the same as for July a1 though the number of suits made during the
month was 42.8 per cent below the totals for August 1920.
Replies to
questionnaires sent to 23 leading clothing firms by District No. 6 (St.
Louis) indicated a fairly steady improvement in demand.
The reporting
establishments in that District were stated to be sold up for the next
two months with excellent innuiry for fall and winter goods, and marked
improvement in orders from the south for the fall.
SILK. The silk industry in the Paterson and North Hudson section showed lessened activity during the two weeks en1ing September 12 as compared
with tbe preceding period of two weeks.
In the Nortb Hudson section
2,848 looms were pro'iucing out of a total of 4,670 '"':rich was a slight
increase over the number re-oorted for the previous two weeks• period of
:..19-
X-3210
2,812. but the percentage of loom hours to the total possible ·~as only
47.1 per cent as compared with 60:3 "9er cent during the preceding period.
Only 4,002 out of a total of 15,000 looms were ~reducing in Paterson,
a drop from
4,447 for the preceding two weeks.
The percentage of loom
'hours also fell from 27.5 per cent to 22.9 per cent.
District No. 3
(Philadelphia) reports a falling off in dewand for broad silk and silk
rib~ons.
Mills in the District state that ~reduction is still curtailed
and they are operating at about 70 to
some firms say that stocks are
11
85
per cent of capacity.
gradually accumulating".
Even so,
It is said that
"conditions prevailing in the si)Jt goods trade are reflected in the thrown
silk
ma.rket~
Operations have been reduced by many throwsters to only 50 per
cent of capacity.
Prices remain at about the same level as last month, but
they are considerably lower than were those of 1920. 11
There is little de-
mand for raw silk at the ~rBsent time but hoth consumption and imports
showed a m~rked increase as compared with August a year ago.
In Au~st
of last year, imports of raw silk amounted to 16,106 bales, and consumption
to 17,241 bales, while tris year imports totaled 33,823 bales, and consumption 32,790 bales.
HOSlli:RY AND UNDERWEAR. Business in knit goods lines and in hosiel"'J
has felt seriously the effect of the rise in the price of cotton yarns.
District No. 3 (Phila.del-;hia) states that activity in cotton and mercerized
hosiery has come almost to a standstill while conditions in the underwza.r
trade nc..re such as to force the lT'ajority of manufacturers into the position
of me.re on-lookers waiting for a stabilization in nrices.
11
The business in
silk hosiery continues to be good and mills makinp, full fashioned hosiery
X-3210
-20in District No. 3 (P'niladelphia) are runnins at full ca:9aci ty.
August,
25 firms selling to the wholesale trade stated that there wae an
increase of
and of
During
14 .. 2 per cent in -product manufactured as compared with July
31.7 per cent as com?ared with August 1920. Orders booked during
Au?Ust were, however,
31.9 per cent below those for July although 56.1
per cent in excess of those received during
at the end of
.llu~st
I'ITere
Au~st
1920. Unfilled orders
17.1 per cent less than at the end of July but
24.4 per cent above those of August 1920. In the case of nine firms selling to the retail trade the product manufactured declined slightly during
August by
0.4 per cent as compared
with July, orders booked were
38.4
:per cent less during Jl.uP_Ust; unfilled orders on hand declined 23.9 per
cent and were
26.1 per cent below those for the end of August 1920. The
reports received from
41 members of the Knit Goods Manufacturers of .Amer-
ica engaged in producin? underwear, showed subst2.ntial
output
durin~
August as compared with July.
dozens in July had an output of
per cent.
im-~)rovement
Mills producing
in
255,829
279t600 dozens in August, a gain of 9
Unfilled orders the first of July amounted to
372,514 dozens
and had risen to
395,902 dozens on August first or 6 per cent. New
orders rose from
2}8 ,258 dozens in July to 444,243 dozens in August,
or
9 per cent.
in
Augu~t
Shipments also increased from
or 5 per cent.
233,972 in July to 360,787
X-3210
-21-
SHOJ!:S -~ND LE.~-~THER. Prices of green hides registered little change
durin~ the first three weeks of September.
Lamb Skins have increased some-
what in i)rice, wrile calf skins have shown "'- slight decline.
Production
of green cattle hides increased during Au~st, but showed a moderate decline
in the early part of September.
7
District No.
(~icago) reverts that trad-
ing in packer hides has been very active at Chicc.go, whereas the rrarliet for
country hides has been very quiet.
Tanneri8s in District No.
7
(Chicago)
report an increase in volurne of sales of leather during the first two wee:.rs
of September.
between
75 and
O'perations of u-'1·;er leather tanneries on September 10 were
80 ·1er cent of normal.
District No.
3 (l?hil.e.del-r?hia) states
that upper leathers were less active in Sentember than August.
however, has been in
P-:Ood
Sole leather,
rierr.and, and there has been a substantial increase
There has been a slight iM~rovement in
in orders from the re"9air trade.
sales of belting leather, but no price chanq:es have been reported.
The
activity of the boot and shoe industry contilllled to incrG<:-se during A.uc:ust
for the ninth successive month.
The August ~reduction of nine l2ading shoe
manufacturers in District No. 1 (Boston) 'Nas 13.4 per cent greater tioan in
July, while shi:'9ffients increased
what ::luring
1920.
Au~st,
27.5
~)er
cent.
Unfilled orders declined sorr:e-·
but the volu.'11e of new orders was larger ttan in A.urust,
Shipments by eleven re"!)ortin!r manufacturers in District No. 3 (St.
Louis) during A.urust ramr,ed from 20 to 40 1Jer cent larr:rer t1~an in Aurust,
,
1920. Four of the largest interests in that District ar3 now producing
more goods than at any time in the past.
.~ue>Ust
No.
7 (Chicago) produced in
and
15.9 per cent more shoes than in
Fourteen manufacturers in District
19.5 per cent more shoes than
Au~st,
1920.
in July,
Shipments by these
manufacturers were 24, 7 ~reater than in July, and 34 .. 5·"'per cent &rr2ater
than in August, 1920. ./\11 Chicago factori~s ·re-port an im:nroverrent in the
demand for men's shoes, but some recession in th~ demand for wo~en 1 s shoes.
-22LUMBER.
X-3210
Reports from the several lwrber districts indicate •
improving conditions
lumber trade.
~nd
a more optireistic attitude generally in the
District No-
12
(S~n
Francisco) reports that there has
been some imrrovement in the District for upper grades of Douglas fir
during September; spot prices of
C~lifornia
redwood, white pine and
sugar pine have remained stationar.r or receded.
in
~hat
District report a cut of
35~,233,000
Four lumber "associations
feet for the four weeks
ending Pugust 27, which was 81 per cent greater than during the four weeKs
ending July
30. New orders increased from' 263,416,000 feet in July to
331,31h,000 feet in August. About 75 per cent of the lumber mills capacity
'
in the Pacific Northwest. eni 6o per cent in the Inland Empire is reported
as heing in opention, while loeging operations are only 4o per cent of
nonnal.
In District No. 11 (Dalles)
in derr"!nd in
Pu~ust.
3h pine mills report an improverrent
Orders received by these mills ;iurin& the month
were 88 per cent of the normal monthly production while orders booked during July reprexented but 66 per cent of the nonnal monthly production.
Orders received from
r<>ilw~ys
greater proportion of this
for car repair materials account for the
In District No. 6 (Ptlanta) 130 mills,
incre~se.
members of the Southern Pine Association, report orders received during
.ftugust to be
5·7 per cent
./lctuel production was
normal.
gre~ter th~n
the normal production of these mills •
E7 ,7c~,786 feet, aprroximately 24.3 J)er cent less than
The shipnents showed an increase each week and totaled 7'8, 454.426
feet for the month, which is but
9·7
per cent below normal production.
This District reports the reopening of some mills which had been closed
durin!? July.
Present -rrices ere rruch lower tht'in those which prevailed a
yeer efo, but the rrarket is reported to be considerably stronger
th~n
it was •
-23during July.
X-3210
District No. 8 (St. Lon is) reports an increasing derra.nd
for yellow pine, but a q_uiet hardwood market.
Production of hardwood
remeins at a very lo•.v level due to low prices and the present high freight
In District No. 9 {'Minne:>polis) the reported .flu~_ust lumber cut
fflet
totaled 12,549,909/w~ich was about 5 per cent less then in July which
rates.
wes 56 per cent less th:m in ~U!2Utlt of last yet::J r.
The stacks of lumber
manufactureres showed less than one per cent decreasre
from the total at
the close of July, and a 29 per cent increase over the stocks on nana
on August 31, 1920.
Lumber shipments in this District durin~ August
increased 24 per cent over the July figure in contrast with declines in
August shipments in both 1919 and 1920.
BUitDI~G.
The total value of contracts awarded, (compiled by the
F. W. Dodge Co.) indicate an increese during .August as comrared with
July, and as compared with .August of last year.
Four of the seven
Districts for which contrect fisures are available show a considerable
increase over July, while Districts No. 4 ¢Cleveland) and No. 9 (Minneapolis) show decided decreases.
Contracts awarded during ftugust in
District No. 1 (Boston) amounted to $19,276,295 as compared with
~19,298,334 durin? ~uly,
.About $6,702,583 of this total was for res-
idential purposes, as compared with $6,672,758 during July.
In District
No~ 2 (New York) contrac.ts awarded t.ot:'lled $62,043,905 as conrrared with
July contract fieures of ~54,500,566, and residential building amounted
to $3f;,061,717 as compared with ~22,54f,l42 during July.
Contracts for
District No. 3 {Philadel~hia) amounted to $22,350,5CO as com~ared with
$13J563Jl00 during July.
Of this tot~l, $5,331,500 was for residential
1c.·~·rlf
,. )L~::'-•
X-3210 ·
-24building as co~ared with $2,971,900 during July.
In District No. 4
(Cleveland) total contracts fo:r Pugust were $26,665,555 in comparison
'IV'ith ~35,669,377 for Ju+y.
Of tr.ese, resid.entiel"contracts amounted
to $8,209,645. in CC'mparison with ~8.319,248 during July.
Total con-
tracts for District No. 5 (W.ch;:lonG.) tnta.led $17,337, 62l~ during August
as compared with $16,026,969 duri"lg July.
to
$5,938,417
trict No.
7
in Au~st as comp~red with
Resl.dential building amounted
$5,335,545
in July.
In Dis~
(Chicago} total contracts awarded amounted to $44.680,034
during llu~st in corr:pa.rison with
t41,113;866
during July, and residential
building amounted to ~~-0, D2 4, 029 in corr.pari son with $7,382,427 during
Contracts for Distriet No. S~(l.iinnea:polis) tota.lP-d 1:9,173,552 in
July.
August as compared with ~12,651,00"( in July.
Of this arr.ount, ~,975,503
was for residential pl.lrp:)ses as compared with $3,758:504 in July.
In District No., 2 (New York) 8,188 permits were issued during August valued at ~55~534,223 as cor11pared with 5,071 perrilits '\talued at
$35 ~952 ,930 du.ring August ,1920.
Permits granted in 19 cities of District
No. 7 (Chi&ago) numbered 6,157 v.e~lned a.t $25,578)330 a.s con:pared with
5,346
permits valu~d at il5,~39,0"T7 granted during the corresponding
month of last year.
The munber and val uo.tion cf building permits issued
during flugust in 9 cities of District No. 9 (M'inn13apolis) increased 27
. and
34
per cent respectively, as compared with the July fi~ures •
In the Districts for
which no contract fi~ures are prepal;"ed, }')is trict
.
;
Ng
6
(Atlanta) reports the nurr~er of permits grcnted in 14 cities during
August totaled 3,437 valued at ~5.304~592 as comparad with 2,007 pennits
valued at $4,057,181 gr-anted during ~ugust, 1920.
In four cities of Dis-
trict No. 8 (St. Louis) 1971 permits valued at t),325,79l were issued
-
-25-
X- 3210
during .August in comparison with 1,302 nerm.its valued at $2,751,677
issued during the corresponding month of 1920.
of District No. 10 (Kansas City) for .Aug.ust show
Reports from 16 cities
rt
gain of 54 .. 6 par cent
in the number of permits granted and 93-6 per cent in the estimated cost
as compared with .August, 1920.
This is the la.r·gest percentage of gain that
has been shown in any month this ye13·; over the corresponding month last ·
year.
In nine cities of DiRtrict No. 11 (Dallas) 2,el4 permits valued
at <t:6.4ol,268 were issued d1.:ring .1\ugust in comparison ·nith 1,548 permits
valued at ~2,950,694 issued d'lring AuguE..'t, 1920.
The value of building
permits for 20 cities of District No. 12 {San Frencisco) amounted to
$17,126,365 in .August as corepared with ~15,030,736 in llu;mst of last·
year. and the number issued increased from 7~ 577 to 10" Ogb.
EMPLOYMENT.
There were no noteworthy changes in the errployment
situation during the rronth of .August, the "Deriod covered by the latest
report of the United States Department of tabor.
Decre~ses
were recorded
in five of the fourteen reporting industries but it is noticeable that
in two of these five industriest namely, woolen textile and cigar manufacturing, the number employed in ./lugust were 114 per cent and 4.5 per cent
respectively above those employed during Aufust 1920. while in the case
of the silk industry ' the emrloyment figures were only 2.2 per cent below
those given for a year ago.
There was an increase of 4.9 per cent in
numbers employed in the iron "'nd stea'; in1ustry during the month as compared with the July figures.
On the other hand. there was a slight deeline
for bituminous coal ITinin~ of 1.6 per cent.
'
The speeial report on
employment conditions which. is regularly made by District No. 7 (Chicago)
covers 237 manufacturing concerns employing at the present time 138,237 men.
1CD6
-26-
X-3210
The employment in these factories increased 1-4 per cent in
~ugust
for
the District as a whole ·and 1.2 per cent for the establishments located
in Chicago.
These figures
co~1cide
very closely with those for the gen-
eral survey of the Department of Labor which showed an increase of 1.08
:per cent
in numbers eTI!T1l('lyed for the indust:t"ies covered.
District
No. 8 (St. Louis) likewise mvd.e s;pecia.l inquir;J in regard to the employ--
ment conditions in the 21 largest cities of that District, and reports
thE~t
in establishments with a nornal complement of 215,784 workers,
numbers employed August 1, 1921 were
as COlJ1Ila.red with .August 1, 1920.
165~874,
a decreese of 21.3 per cent
Reports made by various state depart-
ments of labor indicate a slight improvement in conditions during tbe
month of .August.
In rennsy.lvm1ia, the State
mates that unemployment·
tewn, 'Philadelphia,
i~
D~partment
of Labor esti-
the six cities of Alto?na, Harrisburg,
Scr~nton
John~
and WilliaiWport has steadily declined since
August 15, the figures for September 15
of numbers employed being 3.8
:per cent below those of Au12uc:;t 31 which in turn were 2.5 per cent under
~ugust
returns for
15.
In District No. 5 (Ricbmorid)
co~ditions
were re-
ported to be less favorable for '-"T.lcskilled workers but 1;.h9y .bad improved
in the building trades, the textile mills and in
strike in the mills around Charlotte
.h~s
a resumption of act:i.vity in tlwt region.
railro~d· work~·
The
been settled end there·. has .been
In Dist~~ict No. 10 (Ksnsas
City) operating conditions in the mining sections showed no material
improvement..
~
survey- of labor conditions disclosed the feet that in
Missouri in the zinc and le~d minin~ districts
11
there were only 270 miners
working underground, while there were 800 in Kansas and 2,200 in Oklahoma.,
a total of
sli~htly ~ver
3,000 men, es compared with 12.000 to 15,000
X-3210
-27
1915 to 1917. There were but 35 mills working out
during the periodnof
of 208 in the District, which is another criterion of the inactivity now
prevailinF. in the zinc industry es co!llT'ared with previous years."
Although
in District No. 12 (san Francisco) there hes been a slight increase in e~
ployment in Oregon Bnd Washington due to seasonal aetiv.ities and public
work, the situation
1~ c~Hfornii'!l.
workers from outside points.
unemployed in that state.
has become aggravated by an influx of
Reports indicate that about 45,0CO are
There has been no increase in the activity in
the metal mining in Prizona, Nevada, and Utah, but nevertheless· some decrease in unemployment has resulted from greater building activity and
increased work on public improverr.ents tmd for railroads.
1 ~1HOtESHE
rrR.ADE.
Sales of
re:rortin~
wholessle firms in three lines,
hardware, dry goods end boots and shoes, showed Pn
ust as compared with July·for every District.
avera.~e
advance in
.Aug-
Increases in wholesale gro-
eery sales also occurred in District No. 3 (Philadelphia), NQ 6 (Atlanta),
No.7 (Chicago), and No. 11 (Dallas).
In District No. 5 (Richmcd), Dis-
trict No. 10 (Kansas City) end District No. 12 (San Francisco), however,
decreases were recorded amounting to 0.4 per cent with eieht firms reporting, 7.2 per cent, with four firms
-reportin~
and 9•8 per cent with twenty-
nine firms reporting, for the respective Districts.
Apparently the need
of replenishing retail stocks allowed to run down during the summer largely
explains the increases in grocer.y sales.
District No.
3 (Philadelphia)
with an increase of 10.4 per cent for forty-eight reporting grocery firms
states that there is comparatively little tendency to buy for the future,
and this testimony is corroborated by similer
st~tenents
from other
Districts~
rr:'he fell de!T'end for dry goods and boots and shoes bas resulted in especially
heavy advances in these two lines.
In three Districts, namely, District
•
.
:1;--, . 0
~
c~_)o
X-3210
-28-
No. 5 {Richmond)w No. 9 (MinnMpolis), and No~ 11 (Dallas) there were
increases in dry
~oods
sales. in excess of 50 per cent,
.
ran~in~
from 50.6
per cent for District tlo. 5 (Ric:b..rhond), with eight finns reporting,· to ...
5442 per cent fer District No. ll (D~llas) with eight finns reportinp.
In District No. 7
(~hicago),
wHh six finns reporting., dry goods sales
increased 43.1 per cent-and in District No. 6 (Atlanta.), 45·5 per cent,
eighteen finns reporting.
The
mini~~
increase occurred in District No.
12 (San Franci-sco), with ten firms, recording an advance of 29.0 per cent.
In the case of boots and shoes, f9Ur ~eporting Districts~ No. 5 (Richmond),
No. 6 (.Atlante), No. 7 {Chicago) and No. 12 (San l!'rancisco) showed increases
ranging from 29.8 per cent for thirteen reporting fir.ms in District No. 12
(Sam Francispo) to 84.3 per cent for the eight reporting firms in D"istrict
No. 5 (Richmond).
The increa~~s in sales of wholesale hardware have been
much less pronounced, the
i~
~~imum
advance being 3.1 per cent for 25 firms
District No. 3 (Philadelphia.), the maximum 18.4 per cent far
eleven fir.ms in District No. 11 (Dallas).
Notwithstanding these heavy
seasonal increases in sales, sales expressed in terms of value are sti·11
far below the figures for Jlugust 1920, althol.lgh in the majority of cases,
the volume of sales compares favorablywith the returns for a,year ago,
generally being as large or in some instPnces larger then in Jlugust 1920
except in the case of hardware lines.
Caution in placinr- orders and un-
willingness to make extensive cornmittments for the future continue to
characterize the attitude of the retailer, despite the fact of general
improvement in current business.
~~It ~R~DE.
The value of sales for retail trade in ftugust continued
to be less th"'n last yer>r.
The fact tr..at price reductions have been
•
10D9
X-3210
-29-
relatively greater thPn·reductions in value of sales would seem to indicate that the
in August 1920-
p~sical
1he commodities which seem to be selling best are fum-
i ture, knitting yarns,
departme~t
•
vnlume of retail trade was actually larger than
and cotton piece goo:is.
.AU@ust reports for
330
stores throughout the. United States show a moderate improve-
ment over those for July.
cent less than
~n
Average sales for these stores were 11.9 per
August 1920 whereas average sales for July were 15.1
per cent less than in July
1920~
The improvement seems to be mostly
confined to the e~st,. as District No.
7
(Chicag~) and No. 11 (Dallas)
show a decrease from last month and other western Districts still show
a
lar~e
decrease compared with last year.
Reports of these
330 repre-
sentative department stores show a decrease from .August 1920 amounting
to 4.5 per cent in District No. 1 (Boston), 5~2 per cent in ~istrict
No. 2 (New York)", 4~0 per cent in District No. 3 (Philadelph~a) 21.0
per cent in District No. 4 (Cleveland),
5 (Richmond),
9~8
per cent in District No.
31.3 per cent in District No. 6 (Atle.ntP), 18.8 per cent
in District No.7 (Chicago), 11.7 per cent in District
No. 8 (St. Louis),
.
.
11.0 per cent in District No. 9 (Minneapolis), 8.9 per cent in District
No • 10 (Kansas City), 23 ·3 per cent in District No. 11 (Dallas) t and 6.2
per cent in District No. 12 (San Francisco).
The stocks on hand at the
end of August were very much lower than a year ago but were slightly
greater than at the end of July.
~e
rate of stock
tu~over
little although it shows a slight tendency to decline.
has changed
Orders in Auwust
continued at about the same high level as in July.
~RICES.
During the first three weeks of September. prices of most
basic commodities advanced or showed little
ch~nge
from the August level.
•
...
reve~e,
In the case of livestock the tendency was the
hogs showing partie-
ull3.r weakness, but certain other agricultural comnodities such as cotton.
wheat, oats end wool advanced,
The 50 per cent increase in the price of
cotton during the course of the month led t'o large nominal advances in
yarn and cloth prices and stirm:';r:tt~~d demand for allied commodities.
the woolen industry, raw materia)s
we~e
In
firm and showed a tendency to ad-
vance in the middle of the month, while yam and cloth prices in general
remained unchanged.
prices.
No important fluctuations occurred in. hide and leather
The September quotations are approximately the same as those for
Aup us t.
Pricew of pig iron are slightly higher than a month ago while sendfinished steel products with some exceptions are lower.
Large price cuts
. in the steel industry, however, appear to have come to a haltnonferrous metals advanced during the month.
Prices of.
No important change~ occurred
in the prices of building materials while there was a hardening tendency
in anthracite coal end oil prices.
Wholesale index numbers arG not yet available for September, but the
August figures for all comrrodities show small increases over the July averages~
The index number of the Fe.dera.l Reserve Board, constructed primarily
for international comparisons and corr~uted with prices in
an average of 143 in .August as compared with 141 in July.
ant increases occurred in consumers
were registered in producers
1
t
as 100, gives
The most import-
or highly matl.i.:factu~ed goods.
or semi-finished
remained pre.ctice.lly unchanged.
1913
Decreases
goods, while raw materials
Retail prices of foods continued to e.dvancet
the index number of the Bureau of L~.bor Statistics for .August showing an··
increB.s·e of approxim~tely
5
per cent over July ..
~.
.
•
X-3210
-31-
SHIPPING. Durin9
amount of
cer~o
Sept~~ber
sowe improvewent was .noticeable in the
offered for shinrr.ent to foreign parts..
The available
steam tonnage remains, however., greatly in excess of shippers
1
require-
mentss with the result that ocet>n frei§'ht rates continued merely steady
and substentially unch<>n;'ed from the levels ·Nhich were reached last June.
An important factor contributinc; toward the steadiness of rates in recent
weeks hs.s been the lar€e volume of frain shi-pped throughout the sun:mer,
thus keeping many ships in consttnt service.
CN,ners of vessels are able
to do little mare than meet expenses 'Vith rates at current levels, and
in many cases have
:9referr~d
such partial cargoes as have
to J.ay·u:p their ships rather than accept
offered~
The reluctance of shipowners to
enter into contracts at a time when the outlook for profits is by no
means bright
~nd
tre chances for loss in making a voyage are consider-
able; expla.ins also why the decline in ocean freight rates has not proceeded further.
FOREIGN TRPDE.
The value of our foreign trade in Aueust is reported
as ~375.000.000 for exports and $194,ooo,oco for imports. leaving an export balance of
~181,000,000,
which was only partil"'lly offset by net
im:portAtions of gold to the amount of $66?000,000.
imports 8nd exports show geins over
ant month since March.
J~ly,
The values of both
exports being higher than in
Comparisons between the
~onths
of this year and
similar periods last year are apt to be misleading on account of the far
hi~her
level of prices which then prevailed, so thet
wr~le
the reported
value of exports in the last few months has been ?nly half as much as in
the same months of 1920, the volume of exports stated in
terms
b~s
actually
~een
greater than
A
ye8r
a~o.
quantitative
This meens that the
X-3210
-32-
prices upon which the export
va.ltlati':lu~
ere besed have declined more rap-
idly then have exports stA.ted in te:rrrs of dollal"s.
In substantiation of
these facts it may be pointed cet thet the Boar& 's forei@n trade index, in
which the effects of price cLen;,.:e:; bave been el:iminat;ed, stands at 112.5
for exports in July, 1921, corr,pf'\rad ·vith :!..01.3 in July, 1920, and a monthly
average during 1920 of 107 •7.
The ind.8x. m~m1)er for July, 1913, is 70.6,
the 1913 monthly avera.ge be1ng 100..
~~he
conclasion is therefore to be
drawn that in volume our export t~ade is now larger than in 1920 or in the
months shortly preceding the war.
@FedFRASER