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FEDERAL RESERVE B O H I STATEMENT FOR THE PRESS X-3235 For Release i n Morning P a p e r s , Tuesday, November 1, 1921. The f o l l o w i n g i s a review of g e n e r a l b u s i n e s s and f i n a n c i a l c o n d i t i o n s throughout the s e v e r a l F e d e r a l Reserve D i s t r i c t s d u r i n g the month of October, as c o n t a i n e d i n the forthcoming i s s u e of the F e d e r a l Reserve B u l l e t i n . Marketing of a g r i c u l t u r a l p r o d u c t s has proceeded r a p i d l y d u r i n g the month of October. This has had a b e n e f i c i a l i n f l u e n c e i n s t i m u l a t i n g t h e a c t i v i t y of important l i n e s of i n d u s t r y and t r a d e . The h i g h e r p r i c e s r e a l i z e d by t h e f a r m e r f o r tobacco and c o t t o n , and from heavy s a l e s abroad of c e r e a l s have g i v e n him ready c a s h and have brought him i n t o t h e market f o r p u r c h a s e s of s e a s o n a b l e goods w i t h c o r r e s p o n d i n g b e n e f i t to t r a d e i n the producing r e g i o n s . Improved c o l l e c t i o n s and the r e d u c t i o n of o u t s t a n d i n g l o a n accounts have followed i n the t r a i n of t h i s renewed a c t i v i t y . The b e g i n n i n g s of improvement a r e n o t i c e a b l e , even i n p o r t i o n s of the c o u n t r y s u c h as some of the s o u t h e r n and s o u t h w e s t e r n d i s t r i c t s where c r e d i t c o n d i t i o n s have been more s e r i o u s t h a n g e n e r a l l y . Some d i s t i n c t l y encouraging elements i n t h e g e n e r a l b u s i n e s s s i t u a t i o n are t o be n o t e d . among t h e s e . The outlook i n t h e t e x t i l e i n d u s t r i e s i s There has b e e n a more a c t i v e demand f o r raw wool, e s p e c i a l l y of t h e medium g r a d e s h e r e t o f o r e i n s m a l l e r demand. While i t i s t r u e t h a t u n c e r t a i n t y of the f u t u r e of c o t t o n p r i c e s has l e d some x-3235 ^ 2 t e x t i l e manufacturers to hold off , the d i s p o s i t i o n to buy has been Tnuch more pronounced during the p a s t few weeks. Consumption of raw m a t e r i a l s Continues a t a high f i g u r e and the t o t a l used in September was i n e x c e s s of that reported f o r September, 1920. B a s i c m a n u f a c t u r i n g and s t r u c t u r a l i n d u s t r i e s have n o t y e t shown t h e i n f l u e n c e of r e v i v i n g demand except i n a l i m i t e d d e g r e e . There has been some i n c r e a s e i n a c t i v i t y , a l t h o u g h t h e e x t e n t of i t has v a r i e d q u i t e m a t e r i a l l y a s between i n d u s t r i e s - I n i r o n and s t e e l an i n c r e a s e b o t h i n p r o d u c t i o n and i n u n f i l l e d o r d e r s has t ak en p l a c e which, a l though l i m i t e d i n amount, i s regarded as of f i r s t r a t e importance as marking t h e t u r n from the low p o i n t - Conditions s u r r o u n d i n g the p r o - d u c t i o n and s a l e of n o n - f e r r o u s m e t a l s a r e m a t e r i a l l y improved i n t h e s o u t h w e s t e r n mining d i s t r i c t s , and bituminous c o a l p r o d u c t i o n has shown a substantial increase. B e t t e r c o n d i t i o n s a r e a l s o r e p o r t e d i n the limber i n d u s t r y , one or two D i s t r i c t s , n o t a b l y M i n n e a p o l i s , however, f u r n i s h i n g an e x c e p t i o n . The a c t i v i t y of b u i l d i n g has b e e n p a r t i c u l a r l y noteworthy b e c a u s e of i t s c o n t i n u a n c e beyond t h e time when a s e a s o n a l r e a c t i o n would o r d i n a r i l y o c c u r . The b e t t e r c o n d i t i o n s i n the a g r i c u l t u r a l d i s t r i c t s , accompanied b y improved b u y i n g demand and t h e e n l a r g e d a c t i v i t y i n m a n u f a c t u r i n g , have n a t u r a l l y been, r e f l e c t e d i n i n c r e a s e d a c t i v i t y of w h o l e s a l e t r a d e . An improvement has b e e n noted i n the m a j o r i t y of c a s e s f o r f o u r l e a d i n g r e p o r t i n g l i n e s , a l t h o u g h i n t h e c a s e , o f w h o l e s a l e g r o c e r i e s t h e r e has b e e n r e a c t i o n i n a few i n s t a n c e s . The s a l e of c e r t a i n s e a s o n a l a r t i c l e s which would o r d i n a r i l y show an i n c r e a s e a t t h i s p e r i o d of t h e y e a r , h a s i n some c a s e s f a i l e d t o do so owing t o t h e m i l d w e a t h e r . has b e e n w e l l m a i n t a i n e d i n most p a r t s of t h e c o u n t r y . Retail trade x-3235 -1JL - 3 _ Index numbers of p r i c e s appear t o show t h a t t h e p r i c e l e v e l has a t t a i n e d a s u b s t a n t i a l degree of s t a b i l i t y . The index number of the F e d e r a l Reserve Board shows no change d u r i n g t h e month of September, w h i l e commercial index numbers r e f l e c t t e n d e n c i e s t o s l i g h t l y h i g h e r prices. P r i c e s a r e g e n e r a l l y i n b e t t e r r e l a t i o n t o one a n o t h e r than a t any time d u r i n g the p a s t e i g h t e e n months- I n f o r e i g n c o u n t r i e s the same degree of s t a b i l i t y h a s , of c o u r s e , n o t been a t t a i n e d , b u t i n d i c a t i o n s i n some p o i n t t o the b e l i e f t h a t t h e bottom has b e e n r e a c h e d . Although unemployment continued to b e a s e r i o u s element i n t h e e x i s t i n g i n d u s t r i a l s i t u a t i o n , t h e r e has been a f a i r l y g e n e r a l i n c r e a s e i n the number of men employed. Relatively l i t t l e labor unrest exists at t h e p r e s e n t time, but the announcement of a c a l l f o r a n a t i o n w i d e r a i l road s t r i k e has produced, i n some D i s t r i c t s , a t l e a s t , an e f f o r t t o speed up i n d u s t r i a l a c t i v i t i e s i n o r d e r t o r e n d e r p o s s i b l e l a r g e r r a i l shipments i n a n t i c i p a t i o n of a p o s s i b l e c r i p p l i n g of t h e t r a n s p o r t system. The p o s s i b i l i t y of such a s t r i k e has a p p a r e n t l y b e e n r e f l e c t e d only t o a s l i g h t d e g r e e i n o t h e r branches of i n d u s t r i a l a c t i v i t y d u r i n g the month, p o s s i b l y owing t o the b e l i e f t h a t an accommodation d e s i g n e d t o p r e v e n t t h e occurrence of a s t r i k e would be a r r i v e d a t . Steady l i q u i d a t i o n of c r e d i t , i n c r e a s e s i n r e s e r v e s t r e n g t h and of r e s e r v e r a t i o s , and some d e c l i n e i n b i l l s held by F e d e r a l Reserve Banks, have been the c h a r a c t e r i s t i c f e a t u r e s of t h e month from t h e banking s t a n d point. F i n a n c i a l l y the o u t s t a n d i n g occurrence h a s been the marked i n c r e a s e i n the p r i c e s of s t a n d a r d b o n d s , p a r t i c u l a r l y of L i b e r t y b o n d s , and the l i m i t e d d e c l i n e i n r a t e s of i n t e r e s t . great F o r e i g n exchange, however, h a s shown j , i n s t a b i l i t y l a r g e l y due t o d i s t u r b e d p o l i t i c a l c o n d i t i o n s i n f o r e i g n c o u n t r i e s and c o n t i n u e d d i f f i c u l t y of d e v i s i n g any system of i n t e r n a t i o n a l financing. - u•AGRICUI/TURE: x-3235 1 1 / 3 8 >. The average c o n d i t i o n of a l l c r o p s i n t h e United S t a t e s continued t o d e c l i n e d u r i n g September and t h e compoaite c o n d i t i o n on October 1 , was $ 1 . 1 p e r c e n t of t h e i r t e n - y e a r average c o n d i t i o n on t h a t date. The aggregate c r o p p r o d u c t i o n t h i s y e a r i s e s t i m a t e d t o be 16-9 p e r c e n t lower than l a s t y e a r . The tobacco and p o t a t o c r o p s showed n o t a b l e improvement d u r i n g September, b u t t h i s was more than counterbalanced by f u r t h e r d e t e r i o r a t i o n of the c o t t o n and g r a i n c r o p s . The p r o d u c t i o n of c o m was f o r e c a s t e d on October 1 t o amount t o 3»163,063,000 b u s h e l s , an i n c r e a s e of 12 p e r cent over the average p r o d u c t i o n of the p a s t t e n y e a r s . D i s t r i c t No. 7 (Chicago) s t a t e s t h a t the g e n e r a l q u a l i t y of the corn crop i s good, a l t h o u g h t h e r e has been c o n s i d e r a b l e damage from worms and mold. The c o n d i t i o n of corn i n D i s t r i c t No. 9 (Minneapolis) improved d u r i n g September and t h e e s t i m a t e d p r o d u c t i o n i s 9 per, 'cent g r e a t e r than i n 1920. Production i n D i s t r i c t No. 8 (St* Louis) i s a l s o l a r g e r than i n 1920, b u t the q u a l i t y i s d i s a p p o i n t i n g on account of damage from e a r worms and c o r n borers. The c o n d i t i o n of t h e white p o t a t o c r o p has shown marked improve- ment d u r i n g t h e p a s t two months. totaled The e s t i m a t e d p r o d u c t i o n on October 1 345,844,000 b u s h e l s , as compared w i t h 322,985,000 b u s h e l s on September 1 . D i s t r i c t No. 9 (Minneapolis) r e p o r t s an e s t i m a t e d p r o d u c t i o n of 43,146,000 b u s h e l s of p o t a t o e s on October 1, an i n c r e a s e of 13,2 p e r c e n t over t h e e s t i m a t e of September 1« excellent progress. Seeding of w i n t e r wheat i s making D i s t r i c t s No. 10 (Kansas City) and No. 8 ( S t . Louis), b o t h r e p o r t ' t h a t c e r e i s being taken to seed the wheat l a t e enough t o avoid th# i n f e c t i o n of the Hessian f l y . An i n c r e a s e d acreage of w i n t e r wheat i s i n d i c a t e d i n D i s t r i c t No. 8 ( S t . Louis) , b u t no a c r e a g e r e p o r t s have y e t been r e c e i v e d i n D i s t r i c t No. 10 (Kansas C i t y ) . x-3235 - 5 COTTON: I i ""Vi The c o n d i t i o n of the c o t t o n c r o p on September 24, was M2.2 p e r c e n t , which f o r e c a s t s a p r o d u c t i o n of about 6,537,000 b a l e s * During t h e c u r r e n t season, h e a t and drought f o r c e d e a r l y m a t u r i t y of c o t t o n , while l a c k of f e r t i l i z e r and e x t e n s i v e b o l l weevil a c t i v i t y combined to lower the q u a l i t y and y i e l d . D i s t r i c t No« 11 ( D a l l a s ) r e p o r t s t h a t t h e r e has been no improvement i n the crop s i n c e September 25 i n any of the D i s t r i c t s which were i n f e c t e d with b o l l weevils• except i n the northwestern p a r t of Texas. Picking i s completed Reports from D i s t r i c t No- 6 ( A t l a n t a ) s t a t e t h a t unfavorable weather, l a t e p l a n t i n g , s t i n t e d use of f e r t i l i z e r , and b o l l weevil ravages w i l l r e s u l t i n the s h o r t e s t c o t t o n crop Georgia*^ has had f o r over f o r t y y e a r s . The army worm has spread over the f i e l d s of M i s s i s s i p p i and Tennessee d u r i n g the p a s t month, awl has destroyed a l l the f o l i a g e . much shedding. This has• damaged young b o l l s and r e s u l t e d i n I n F l o r i d a t h e c r o p i s p r a c t i c a l l y a l l picked and ginned. D i s t r i c t No. 5 (Richmond) s t a t e s t h a t c o t t o n i s opening r a p i d l y and t h a t most of i t w i l l be picked by November 1 . Farmers appear t o s e l l c o t t o n f r e e l y , whenever the market p r i c e i s h i g h e r than twenty c e n t s a pound, b u t seem r e l u c t a n t t o s e l l a t lower l e v e l s • TOBACCO: Favorable weather c o n d i t i o n s i n c e r t a i n D i s t r i c t s led t o an i n c r e a s e i n the estimated p r o d u c t i o n of tobacco, the f i g u r e f o r October 1 , b e i n g 991,564,000 pounds. The q u a l i t y of the c r o p i n D i s t r i c t No. 3 ( P h i l a d e l p h i a ) i s e x c e l l e n t , while i t i s r e p o r t e d from D i s t r i c t No. 8 ( S t . Douis) t h a t the Bur l e y crop w i l l c o n t a i n a h i g h p e r c e n t a g e of the b e s t grades and t h a t the crop i n the western d a r k d i s t r i c t s i s among the f i n e s t ever r a i s e d . B r i g h t tobacco i s being marketed s t e a d i l y on the North C a r o l i n a and V i r g i n i a markets, and p r i c e s seem t o be f a i r l y s a t i s f a c t o r y to the growers. As the season has advanced, p r i c e s have tended t o rise., x-3235 - JJ - 6 - due l a r g e l y t o b e t t e r g r a d e s coming on the f l o o r . Medium t o f i n e g r a d e s are "bought e a g e r l y , b u t the p r i c e s o f f e r e d f o r common t o b a c c o have cont i n u e d low. Leaf d e a l e r s i n t h a t d i s t r i c t r e p o r t an r c t i v e b u s i n e s s , e s p e c i a l l y f o r c i g a r e t t e and smoking tobacco, b u t i n D i s t r i c t No. 3 (Philadelphia) business is s t i l l d u l l , as c i g a r m a n u f a c t u r e r s seem t o have s u f f i c i e n t tobacco f o r t h e i r p r e s e n t n e e d s . Sales of c i g a r s i n t h a t D i s t r i c t c o n t i n u e a t about t h e same l e v e l as d u r i n g September. This i s due i n p a r t t o the r e c e i p t of Christmas o r d e r s , a l t h o u g h t h e s e are not i n as g r e a t volun;e as i n normal y e a r s . Manufacturers i n D i s t r i c t No. 5 (Richmond) a r e r e c e i v i n g t h e i r u s u a l b u s i n e s s f o r domestic consumption b u t are as y e t doing l i t t l e f o r e i g n b u s i n e s s . /• tendency towards lower p r i c e s i s r e p o r t e d , c h i e f l y through the i n t r o d u c t i o n of new brands of c i g a r s and c i p a r e t t e s . FRUIT: Deciduous f r u i t s showed a moderate improvement i n p r o s p e c t s d u r i n g September, while c i t r u s f r u i t s r e g i s t e r e d c o n s i d e r a b l e d e t e r i o r a t i o n . The apple c r o p i n the United S t a t e s i s only 57 *8 p e r c e n t of the t e n - y e a r average , b u t a record crop has been h a r v e s t e d i n the P a c i f i c Northwest» •Apple shipments f o r the season t o October 8, 1921, from Idaho, Oregon and Washington t o t a l e d 8,491 c a r l o a d s , an i n c r e a s e of 209 p e r c e n t over shipments i n the c o r r e s p o n d i n g p e r i o d of 1920. C a l i f o r n i a g r a p e shipments p r i o r t o October 8, amounted t o 19,658 c a r s , an i n c r e a s e of 12 p e r c e n t over 1920. The 1921 crop of r a i s i n s i n C a l i f o r n i a , however, w i l l only amount t o about 125,000 t o n s , a d e c l i n e of 31 p e r c e n t f r o m t h e p r o d u c t i o n i n 192C; D i s t r i c t No. 6 (.Atlanta) r e p o r t s t h a t the F l o r i d a c i t r u s f r u i t s have s u f f e r e d from d r y weather and t h a t the c o n d i t i o n of oranges i s lower than i n t h e . ^ a s t three years G r a p e f r u i t a l s o d e t e r i o r a t e d d u r i n g September, X-3235 - 7 b u t limes showed l i t t l e change, as t h e h u l k of the lime c r o p had a l r e a d y "been h a r v e s t e d . The Georgia watermelon crop i s b e l i e v e d t o have been the l a r g e s t ever h a r v e s t e d , and shipments reached t h e record t o t a l of 15,791 c a r s . GRAIN MOVEMENTS: Grain r e c e i p t s contineud on an u n u s u a l l y l a r g e s c a l e throughout September, although t h e r e was some r e c e s s i o n from the record movements of August. Wheat r e c e i p t s a t Minneapolis and Duluth t o t a l e d 32,108,426 b u s h e l s d u r i n g September, as compared w i t h 21,911,320 bushels i n -August and 22,698,772 b u s h e l s i n September, 1920- At the f o u r p r i n c i p a l markets of D i s t r i c t No. 10 (Kansas City) 21,981,400 b u s h e l s of wheat were received d u r i n g September, as compared w i t h 29,955,300 b u s h e l s i n August and 13,179»200 b u s h e l s in September, 1920. I t i s e s t i m a t e d t h a t 66 p e r c e n t of the Kansas wheat crop of 1921 had passed i n t o t r a d e channels by October 1 . Receipts of c o m a t Chicago t o t a l e d 23,406,000 b u s h e l s i n September, as compared w i t h 16,810,000 b u s h e l s i n August and 12,061,000 b u s h e l s i n September,. 1920. Com r e c e i p t s a t the f o u r l e a d i n g markets of D i s t r i c t No. 10 (Kansas City) were 15 p e r c e n t g r e a t e r i n September t h a n i n September, 1920, while r e c e i p t s of oats were about 6 p e r cent s m a l l e r . Oat r e c e i p t s a t Chicago d e c l i n e d from 16,722,000 bushels i n August to 6,306,000 b u s h e l s i n September. Stocks of g r a i n a t i n t e r i o r c e n t e r s showed a marked i n c r e a s e d u r i n g September, a l t h o u g h t h e r e was a s l i g h t d e c l i n e i n the s t o c k of r y e . Stocks .of oats a r e s t i l l accumulating i n t e r m i n a l e l e v a t o r s a t Minneapolis and amounted t o 18,114,082 b u s h e l s a t the end of September, as compared w i t h 3,^991862 b u s h e l s on the same d a t e i n 1920. x-3235 - 5 • I I "FLOUR: l U r t h e r i n c r e a s e occurred i n f l o u r p r o d u c t i o n d u r i n g September R e p o r t i n g m i l l s i n D i s t r i c t No. 9 (Minneapolis)produced 3 » 2 4 l , 9 2 6 b a r r e l s d u r i n g the f i v e weeks ending October 1, 1921, and i n c r e a s e of 16 p e r c e n t over t h e f i g u r e of 2,797*170 b a r r e l s d u r i n g t h e p r e c e d i n g f i v e weeks, and U) p e r c e n t over t h e o u t p u t of 2,265»530 b a r r e l s d u r i n g the c o r r e s p o n d i n g period l a s t year. The o u t p u t of r e p o r t i n g m i l l s i n D i s t r i c t No. 10 (Kansas C i t y ) was 2,195,900 b a r r e l s d u r i n g t h e f o u r weeks ending October 1 an i n c r e a s e of 57 P e r csent over the f i g u r e f o r the c o r r e s p o n d i n g p e r i o d of 1920. I n D i s t r i c t No. 12 (San F r a n c i s c o ) s i x t y - f o u r m i l l s produced 970,632 b a r r e l s d u r i n g September, as compared w i t h 662,190 b a r r e l s b y 70 m i l l s i n August, an i n c r e a s e of 46 p e r c e n t * Since the end of September, however, b u s i n e s s i n D i s t r i c t No. 8 ( S t . Louis) has dropped o f f , due l a r g e l y t o the d e c l i n e i n wheat p r i c e s which u p s e t c o n f i d e n c e i n f l o u r p r i c e s and caused p u r c h a s e r s t o d e f e r p l a c i n g q u a n t i t y o r d e r s or orders f o r f u t u r e d e l i v e r y . I n t e r i o r Kansas m i l l e r s complain t h a t they a r e b e i n g h e a v i l y handicapped by the v e r y h i g h permiums on good m i l l i n g wheat c r e a t e d by t h e buying of o u t s i d e m i l l s . Some e x p o r t demand, c e n t e r i n g i n the lower g r a d e s , has appeared i n D i s t r i c t No. 8 ( S t . L o u i s ) , w h i l e t h e r e was an i n c r e a s e d volume of b o t h f o r e i g n and domestic b u s i n e s s i n D i s t r i c t No. 12 (San F r a n c i s c o ) d u r i n g September. Trade w i t h the O r i e n t h a s b e e n hampered b y i n a b i l i t y t o o b t a i n s u f f i c i e n t c a r g o space f o r immediate shipmentLIVESTOCK: L i v e s t o c k i s g e n e r a l l y i n good c o n d i t i o n , and w i n t e r ranges on t i e whole a r e e x c e l l e n t . Movement of c a t t l e and c a l v e s t o market has c o n t i n u e d a t about t h e same l e v e l , September r e c e i p t s a t 15 w e s t e r n markets b e i n g 1,417,259 head, as compared w i t h 1,418,237 head d u r i n g August and 1>737»469 bead d u r i n g September, 1920. index numbers were l 4 l , l 4 l , and 1J2. The r e s p e c t i v e R e c e i p t s of h o g s , however, d e - c r e a s e d f r o m 1 , 9 1 9 , 5 1 4 head d u r i n g August, c o r r e s p o n d i n g t o an index number of 87, t o 1,7831827 head d u r i n g September, c o r r e s p o n d i n g to an index number of 81, as compared w i t h 1,545*842 head d u r i n g September, 1920, c o r r e s p o n d i n g t o an index number of 70* Sheep r e c e i p t s , on t h e o t h e r hand, i n c r e a s e d from 1 , 5 6 8 , 5 8 4 head d u r i n g August t o 1,651,659 head d u r i n g September, as compared w i t h 1,892,327 head d u r i n g September, 1920. r e s p e c t i v e index numbers were 115, 121, and 13S. The The lower m a r k e t s i n e a r l y October s t i m u l a t e d p u r c h a s i n g of f e e d e r c a t t l e a t Chicago, while more c o u n t r y b u y e r s were a t the markets of D i s t r i c t Ho. 10 (Kansas City) a t t h e b e g i n n i n g of the t h i r d week i n October than f o r many months, due t o the abundance of f e e d i n the c o u n t r y and lower p r i c e s of s t o c k e r s and feeders. The f e a t u r e d u r i n g September a t F o r t Worth was the s t r o n g c o m p e t i t i o n g i v e n t h e packers by the o u t s i d e b u y e r s . Chicago l i v e c a t t l e p r i c e s d e c l i n e d as a r u l e throughout September, b u t s t r e n g t h e n e d i n e a r l y October. Twenty-four r e p r e s e n t a t i v e packers r e p o r t an i n c r e a s e of 0«l4 p e r c e n t i n September s a l e s (measured i n d o l l a r s ) over t h o s e d u r i n g August, b u t a d e c r e a s e of 36«5 p e r c e n t f r o m September, 1920 s a l e s . Operations a t t h e l a r g e packing c e n t e r s of D i s t r i c t No. 10 (Kansas C i t y ) d u r i n g September showed a s l i g h t f a l l i n g o f f as compared w i t h August, b u t when compared w i t h a y e a r ago showed an i n c r e a s e f o r hogs and sheep and a pronounced d e c r e a s e f o r c a t t l e and c a l v e s . Stocks of meat i n s t o r e a t t h e end of September were c o n s i d e r a b l y l e s s t h a n a t t h e end of August- The consuming p u b l i c d u r i n g the month c o n t i n u e d t o p r e f e r the more expensive m e a t s , while t h e r e was a s l a c k e n i n g of e x p o r t t r a d e . x-3235 - COAL: 10 - There was a s l i g h t i n c r e a s e i n the p r o d u c t i o n of bituminous c o a l f o r t h e month of September. The o u t p u t was 35?105»000 t o n s , c o r - responding t o an index number of 95 • as compared w i t h 3 4 , 5 3 ^ , 0 0 0 t o n s , c o r r e s p o n d i n g t o an index number of 93 d u r i n g August* This i n c r e a s e was found i n s p i t e of t h e f a c t t h a t p r o d u c t i o n d u r i n g the f i r s t h a l f of t h e month was a t a r e l a t i v e l y low l e v e l , due t o a v a r i e t y of c a u s e s . The output i s s t i l l c o n s i d e r a b l y below t h e September, 1920, f i g u r e of 49,172,000 t o n s , D i s t r i c t No. 3 ( P h i l a d e l p h i a ) b e l i e v e s t h a t undoubtedly a p a r t of t h e i n c r e a s e d September tonnage i s b e i n g s t o c k e d b u t t h a t i t n e v e r t h e l e s s r e p r e s e n t s an a c t u a l resumption of i n d u s t r i a l a c t i v i t y P r i c e s , however, have not i n c r e a s e d , b u t on t h e c o n t r a r y q u o t a t i o n s on many grades are lower than t h e y were a month ago. D i s t r i c t s Nosi 4, ( C l e v e l a n d ) , No. 5 (Richmond), and No* 6 (.Atlanta) r e p o r t an improvement i n the demand f o r p r e p a r e d s i z e s f o r domestic u s e , b u t s t a t e t h a t as i n d u s t r i a l consumers are s t i l l o r d e r i n g i n s m a l l q u a n t i t i e s , steam s i z e s move slowly and i t i s d i f f i c u l t t o f i l l t h e demand f o r the p r e p a r e d s i z e s . September a n t h r a c i t e p r o d u c t i o n d e c r e a s e d t o 7»124,000 tons from the August f i g u r e of 7,196,000 t o n s . 97• The r e s p e c t i v e index numbers were 96 and B u s i n e s s i n g e n e r a l i s s t i l l i n small l o t s f o r immediate n e e d s , b u t t h e market f o r t h e steam s i z e s i n D i s t r i c t No. 3 ( P h i l a d e l p h i a ) i s improving somewhat. Company p r i c e s remain approximately the same on b o t h steam and p r e p a r e d s i z e s , while some of t h e independent p r o d u c e r s have advanced t h e i r q u o t a t i o n s , n o t only on stove and c h e s t n u t ~ ibut on f i n e s i z e s also,, I n c r e a s e d a c t i v i t y i n t h e i r o n and s t e e l i n d u s t r y has been r e f l e c t e d by an i n c r e a s e i n b o t h b e e h i v e and b y - p r o d u c t coke p r o d u c t i o n during 1 September. Beehive coke p r o d u c t i o n i n c r e a s e d from 248,000 t o n s d u r i n g • XI August t o 289,000 tons d u r i n g September, b u t w i t h t h i s i s t o be c o n t r a s t e d an o u t p u t of 1,757,667 tons d u r i n g September, 1920. numbers a r e 9*5, 11, and 67. The r e s p e c t i v e index By-product coke p r o d u c t i o n i n c r e a s e d from 1,402,000 tons i n August t o 1,423,000 t o n s i n September, the r e s p e c t i v e index numbers b e i n g 159 and l 6 l . According t o r e p o r t s f r o m t h e v a r i o u s f i e l d s p r o d u c t i o n PETROLEUM: of crude p e t r o l e u m i n September was much c u r t a i l e d a s compared w i t h August. In C a l i f o r n i a t h i s was t h e r e s u l t of a s t r i k e of o i l f i e l d employees i n one of t h e h e a v i e s t producing s e c t i o n s of t h e S t a t e . D a i l y average p r o d u c t i o n was 264,314 b a r r e l s , the s m a l l e s t r e p o r t e d i n the p a s t two and one h a l f y e a r s , and was only 8 1 . 6 p e r c e n t of t h e amount produced i n August, 1921. Consumpt i o n d u r i n g September exceeded t h i s c u r t a i l e d p r o d u c t i o n by 5 , 2 7 4 b a r r e l s d a i l y , and thus f o r the f i r s t time i n many months s t o r e d s t o c k s were drawn upon, September 30, t h e s e s t o c k s stood a t 33>671,495 b a r r e l s as compared w i t h 33.829,725 b a r r e l s on August 3 1 , 1921* I n t h i s f i e l d , 47 new w e l l s were opened d u r i n g the month w i t h an i n i t i a l d a i l y p r o d u c t i o n of 8,690 b a s f r e l s as compared w i t h 83 w e l l s i n August w i t h a d a i l y p r o d u c t i o n of 20,895 b a r r e l s . In. the Kansas-Oklahoma f i e l d , p r o d u c t i o n d e c l i n e d about 1,000,000 b a r r e l s f o r September as compared w i t h August, b u t was 500,500 b a r r e l s i n e x c e s s of the September, 1920 f i g u r e . have i n c r e a s e d . Stocks a r e r e p o r t e d t o D r i l l i n g o p e r a t i o n i n Kansas,Oklahoma and Wyoming c o n t i n u e d t o be somewhat c u r t a i l e d , 403 w e l l s b e i n g completed w i t h a d a i l y p r o d u c t i o n of 53,901 b a r r e l s * That t h e number of w e l l s completed i s n o t always i n d i c a - t i v e of t h e amount of new p r o d u c t i o n i s shown by t h e f i g u r e s f o r September, 1920, when 1,048 w e l l s were completed w i t h a d a i l y average of only 83,917 barrels• According t o u n o f f i c i a l r e p o r t s , p r o d u c t i o n of c r u d e o i l f o r t h a t d i s t r i c t d u r i n g September amounted t o a p p r o x i m a t e l y 12,528,750 b a r r e l s . 1161 x-3235 » 12 - D i s t r i c t No. 11 (Dallas) a l s o reported decreased production i n September with the exception of the Texas Coastal Zone, while 171 w e l l s were completed during September as compared with 223 during August* i s r e p o r t e d , from $1.00 p e r b a r r e l t o $1.75* An advance i n p r i c e This i n c r e a s e apparently has had no e f f e c t on the demand, which has grown s t e a d i l y s t r o n g e r . IRON ftM) STEEL: A c o n t i n u a t i o n during thb f i r s t h a l f of October of the improvement noted i n the i r o n and s t e e l i n d u s t r y during September i s reported. Pig i r o n production during the l a t t e r month amounted t o 985»529 tons, corresponding to an index number of 4}# as compared w i t h 954,193 tons during August, corresponding to an index number of 4 l , and t h e r e was a n e t gain of 12 i n the number of f u r n a c e s i n b l a s t . showed S t e e l ingot production s i m i l a r i n c r e a s e , f r a n 1,138,071 tons during August t o 1,174,740 tons during September. The r e s p e c t i v e index numbers were 49 and 51* The increased volume of business was r e f l e c t e d i n an i n c r e a s e , the f i r s t since J u l y , 1920 in the u n f i l l e d orders of the United S t a t e s S t e e l Corporation, frem 4,531,926 tons at the c l o s e of August, corresponding to an index number of 86, to 4,560,670 tons a t the c l o s e of September, corresponding to an index number of 87* As a r e s u l t of increased o r d e r s , and more f r e e s p e c i f i c a t i o n by consumers a g a i n s t old o r d e r s , production has i n c r e a s e d . •i A ,.f •> X-3235 -k--i - 13 The l i g h t e r p r o d u c t s , such as s h e e t s , t i n p l a t e and w i r e a r e making the b e s t showing, and s h e e t p r i c e s have b e e n advanced. v • The September ingot p r o d u c t i o n f i g u r e g i v e n above i s s a i d t o be h a r d l y a c r i t e r i o n of s t e e l making a c t i v i t y , a s t h e s e l i g h t e r p r o d u c t s c o n s t i t u t e d most of t h e o u t p u t , and m i l l s f r e q u e n t l y had s u f f i c i e n t s t o c k s of raw m a t e r i a l on hand. The h e a v i e r m a t e r i a l s i n g e n e r a l have continued t o be s l u g g i s h i n D i s t r i c t No. 4 ( C l e v e l a n d ) . The r e d u c t i o n of 28 p e r c e n t i n r a i l r o a d f r e i g h t r a t e s on Lake o r e , e f f e c t i v e October 20, has b r o u g h t t h e q u e s t i o n c£ a g e n e r a l r e d u c t i o n i n i r o n and s t e e l f r e i g h t r a t e s p r o m i n e n t l y before the industry. P r i c e s themselves a r e riot v e r y f i r m l y e s t a b l i s h e d , even w i t h o u t t h i s a d d i t i o n a l f a c t o r , and t h e market has been c h a r a c t e r i z e d a s " s p o t t y and uneven" . New b u s i n e s s i n t h e i n d u s t r y as a whole has been l i g h t e r s i n c e about t h e middle of t h e month, while l i t t l e a t t e n t i o n i n g e n e r a l has b e e n p a i d by e i t h e r p r o d u c e r s or consumers t o t h e p o s s i b i l i t y of a t i e - u p of t r a n s p o r t a t i o n , a l t h o u g h some consumers have endeavored t o h u r r y shipments i n o r d e r t o accumulate some s t o c k s . i l u -14" AUTOMOBILES. x-3235 September shipments of automobile m a n u f a c t u r e r s d e c r e a s e d somewhat from t h e August f i g u r e s . Carload shipments were 2 0 , 1 5 0 c a r l o a d s , a s compared w i t h 20,758 i n August and 20, 804 i n September, 1920. Driveaways and boat shipments a l s o d e c r e a s e d and were roughly t w o - t h i r d s of t h o s e i n September, l g 2 0 . Little change i n c o n d i t i o n s i n t h e i n d u s t r y on the whole i s r e p o r t e d . P r i c e r e d u c t i o n s a l o n e have f r e q u e n t l y proved i n e f f e c t u a l i n s t i m ulating sales. Purchasers are exercising great discrimination, and t h e m a j o r i t y of o r d e r s a r e s t a t e d t o have been f o r a few s t a n d a r d makes. M a n u f a c t u r e r s of such c a r e have had s a l e s i n e x c e s s of l a s t y e a r , but i n g e n e r a l t h e b u s i n e s s done h a s n o t been more t h a n h a l f t h a t of t h e same p e r i o d l a s t y e a r , and f o r t r u c k s not over 35 t o 40 per cent. M a n u f a c t u r e r s ' and d e a l e r s ' s t o c k s of f i n i s h e d c a r s , however, a r e n o t l a r g e . Seasonal a d j u s t m e n t s of p r o d u c t i o n a r e b e i n g made, t o correspond w i t h t h e n a t u r a l d e c l i n e i n buying a t t h i s time of t h e y e a r . NONFERROUS METALS. The l a t t e r p a r t of September and f i r s t p a r t of October showed an i n c r e a s e i n t h e demand f o r t h e n o n f e r r o u s m e t a l s . The p r i c e of copper (New York, n e t r e f i n e r y ) was 12.75 c e n t s p e r pound on October 15 a s compared w i t h 1 2 . 2 5 c a n t s on October 1, but t h e p r i c e of l e a d remained s t a t i o n a r y a t 4 . 7 0 c e n t s p e r pound. While copper and z i n c remain t h e most a c t i v e m e t a l s , t h e r e h a s a l s o been a s l i g h t i n c r e a s e i n t h e p r i c e of z i n c . Copper p r o d u c t i o n i n September amounted t o 1 $ , 6 8 2 , 5 5 4 pounds, i n comparison w i t h a p r o d u c t i o n of 20, 013/ 569 pounds i n August, or a d e c r e a s e of 331,015 pounds* Zinc x-3235 p r o d u c t i o n amounted t o 14,367 t o n s , which was l e s s t h a n 40 p e r cent of t h e September, 1920, f i g u r e . D i s t r i c t No. 12 (San F r a n c i s c o ) r e p o r t s t h a t t e n mines engaged i n t h e p r o d u c t i o n of gold, s i l v e r and l e a d show an i n c r e a s e d output d u r i n g -August, 1921, both a s compared w i t h J u l y , 1921, and August, 1920. Many of t h e mines a r e s t i l l shut down because of u n s a t i s f a c t o r y market p r i c e s f o r t h e i r p r o d u c t s . D i s t r i c t No. 10 (Kansas C i t y ) r e p o r t s t h a t o p e r a t o r s of t h e z i n c and l e a d mines i n t h e M i s s o u r i Kansas-Oklahoma D i s t r i c t were more o p t i m i s t i c a t t h e end of September t h a n they had been f o r s e v e r a l months. September shipments of z i n c ore from t h e D i s t r i c t amounted t o 1$,97& t o n s , w i t h p r i c e s r a n g i n g from $20 pet* t o n a t t h e b e g i n n i n g t o $21 a t t h e end of t h e f o u r week period. S u r p l u s s t o c k s show a s l i g h t i n c r e a s e f o r t h e month. COTTON TEXTILES. During t h e p a s t month t h e r e have been no changes of moment t o r e c o r d i n t h e c o t t o n t e x t i l e i n d u s t r y . Stab- i l i z a t i o n of p r i c e s has not y e t been achieved but f l u c t u a t i o n s a r e l e s s extreme and t h e r e i s a growing d i s p o s i t i o n t o b e l i e v e t h a t t h e t i m e i s n o t f a r d i s t a n t when o r d e r s f o r f u t u r e d e l i v e r y can a g a i n be p l a c e d w i t h some measure of c o n f i d e n c e . Current demands from p u r - c h a s e r s , i n combination w i t h o r d e r s p l a c e d b e f o r e r e c e n t p r i c e advances, have enabled m i l l s t o m a i n t a i n a h i g h d e g r e e of a c t i v i t y , "• and a s a m a t t e r of f a c t , c o t t o n consumption i n September was i n e x c e s s of t h a t f o r September, 1920, and l i k e w i s e g r e a t e r t h a n d u r i n g t h e p r e c e d i n g August. The Census Bureau r e p o r t e d t h a t 484,647 b a l e s of l i n t c o t t o n were consumed i n t h e United S t a t e s d u r i n g September a s coup ared w i t h 457,64? b a l e s i n September, i g 2 0 and 4 6 ? , 1 0 ] b a l e s i n August of t h i s y e a r . the 11 D i s t r i c t No. 3 ( P h i l a d e l p h i a ) s t a t e s t h a t grey goods market i s q u i e t and p r a c t i c a l l y f r e e from t h e s p e c u l a t i v e element". The market i s r e p o r t e d t o be w e l l s o l d up f o r a month o r s i x weeks. The demand i s almost wholly of domestic o r i g i n and w h i l e buying i s widely d i s t r i b u t e d , o r d e r s a r e small and f o r immediate shipment. Many gingham m i l l s have t h e i r o u t p u t sold up t o -April o r May and a few m i l l s not s o l d up have advanced p r i c e s on an average about 10 p e r cent above J u l y q u o t a t i o n s . In t h e market f o r c o t t o n y a r n s , buying, though s t e a d y , i s i n l i m i t e d volume. Some m a n u f a c t u r e r s i n D i s t r i c t Ho. 3 ( P h i l a d e l p h i a ) r e p o r t t h a t t h e i r p r o d u c t i o n i s s o l d ahead well up t o t h e f i r s t of t h e y e a r , but o t h e r s w i l l r e q u i r e new o r d e r s if t h e i r m i l l s a r e t o m a i n t a i n t h e p r e s e n t schedule of o p e r a t i o n . B u s i n e s s i s s a i d t o be about evenly d i v i d e d between weaving and k n i t t i n g y a r n s w i t h an i n c r e a s e i n i n q u i r i e s from k n i t t i n g m i l l s , however. The r e p o r t of D i s t r i c t No. 3 ( P h i l a d e l p h i a ) n o t e s t h a t t h e r e i s a l a r g e movement i n t o t r a d e c h a n n e l s of y a r n s t o c k s purchased a t t h e high p r i c e s p r e v a i l i n g l a s t y e a r b u t now s e l l i n g a t p r i c e s below t h o s e t h a t would be quoted by a s p i n n e r f o r t h e same counts t o d a y . Many of t h e s e y a r n s have been h e l d by com- m i s s i o n houses which have marked down t h e i r i n v e n t o r i e s . In D i s t r i c t No. 5 (Richmond) h i g h e r p r i c e s s e t by t h e m i l l s have checked buying somewhat, but o r d e r s a r e s u f f i c i e n t t o keep them r u n n i n g f u l l time and many a r e s o l d out f o r s e v e r a l months ahead. One l a r g e m i l l i n t h e D i s t r i c t m a n u f a c t u r i n g t i r e y a r n s and f a b r i c s i n c r e a s e d i t s b u s i n e s s 50 p e r cent d u r i n g t h e p a s t month w h i l e a n o t h e r c h a i n of 11GG -17- X-3235 m i l l s r e p o r t e d t h a t t h e y were not q u o t i n g f o r d e l i v e r i e s beyond 1$21. In D i s t r i c t No. 6 ( A t l a n t a ) c o t t o n m i l l s a r e g e n e r a l l y s p e a k i n g o p e r a t i n g a t f u l l c a p a c i t y and some of t h e m i l l s have even found i t necessary to i n s t a l l night s h i f t s . The 3^ r e p r e s e n t a t i v e c o t t o n c l o t h m i l l s which make r e g u l a r r e p o r t s t o t h e A t l a n t a Federal Reserve Bank produced 6 . 7 p e r cent more c l o t h i n September of t h i s y e a r t h a n a y e a r ago, a l t h o u g h t h e September average was 6 . 1 p e r cent below t h a t f o r August of t h i s y e a r . However, t h i s d e c r e a s e does not q u i t e equal t h e advance i n p r o d u c t i o n t h a t occurred d u r i n g August. Orders on hand a t t h e end of t h e month i n c r e a s e d 8 . 9 p e r cent a s compared w i t h t h e end of August although t h e y were 2 8 . 4 p e r cent below t h e o u t s t a n d i n g o r d e r s f o r a year ago* The y a r n p r o d u c t i o n r e p o r t e d by 39 m i l l s i n t h e D i s t r i c t showed a s l i g h t d e c r e a s e , both a s compared w i t h September, 1920 and w i t h t h e p r e c e d i n g August, t h e r e s p e c t i v e t p e r c e n t a g e s b e i n g 4 , 2 and 8 . 0 . Orders on hand a t t h e end of t h e month were, however, 3 - 0 p e r cent above t h o s e on hand a t t h e end of August and 2 8 . 8 p e r cent above t h o s e on hand a t t h e end of September, 1920. FINISHERS OF COTTON FABRICS. The 3^ m i l l s r e p o r t i n g t o t h e N a t i o n a l A s s o c i a t i o n of F i n i s h e r s of Cotton F a b r i c s showed a f u r t h e r i n c r e a s e of a c t i v i t y d u r i n g September f o l l o w i n g a pronounced advance which o c c u r r e d i n August. The t o t a l number of f i n i s h e d y a r d s b i l l e d d u r i n g t h e month r o s e from 95,915,235 y a r d s t o 101,824,795 y a r d s ! The t o t a l grey yardage of f i n i s h i n g o r d e r s r e c e i v e d i n c r e a s e d from 101, 74l, 4 l 2 y a r d s i n August t o 107,33^,429 y a r d s i n September. 1107 -18- X-3235 The average p e r c e n t a g e of c a p a c i t y o p e r a t e d i n c r e a s e d from 71 p e r c e n t t o 75 c e n t , w h i l e t h e t o t a l average work ahead a t t h e end of t h e month r o s e somewhat from an a v e r a g e of 9.6 days t o an average of 11 d a y s . WOOLEN TEXTILES. A r e c e n t development of s i g n i f i c a n c e f o r t h e woolen i n d u s t r y h a s been t h e growth of a c t i v i t y i n t h e raw wool market, and t h e appearance of a demand f o r medium and low-grade wools. Ths Government a u c t i o n of c a r p e t wools held October 6 was q u i t e s u c c e s s f u l a s p r a c t i c a l l y a l l of t h e wool was disposed o f . In the r e p o r t from D i s t r i c t No. 1 (Boston) s e v e r a l s u g g e s t i o n s a r e o f f e r e d a s p a r t i a l e x p l a n a t i o n of t h e r e c e n t i n c r e a s e i n buying; "such a s t h e assumption t h a t t h e emergency t a r i f f w i l l be extended, a growing r e a l i z a t i o n t h a t a v a i l a b l e s t o c k s of b e t t e r g r a i e s of wool i n t h i s country a r e b e i n g reduced f a s t e r t h a n i t a p p e a r s they a r e b e i n g r e p l e n i s h e d , and sympathy w i t h h i g h e r p r i c e s and a c t i v e buying i n the foreign markets". There has bean p r a c t i c a l l y no change i n t h e p e r c e n t a g e of o p e r a t i n g a c t i v i t y f o r t h e woolen and worsted m i l l s of New England s i n c e l a s t June, O p e r a t i o n s continue t o be a t approximately 80 p e r c e n t of maximum c a p a c i t y . D i s t r i c t No. 3 ( P h i l a d e l p h i a ) r e p o r t s a good demand f o r y a r n s , which i s e s p e c i a l l y s t r o n g i n t h e c a s e of k n i t t i n g y a r n s . The r e s u l t i s t h a t t h e m a j o r i t y of s p i n n e r s have many c o n t r a c t s f o r forward d e l i v e r y so t h a t t h e y can t a k e very few o r d e r s t o cover immediate n e e d s . The r e p o r t s p u b l i s h e d by t h e Bureau of t h e Census showing a c t i v i t y i n woolen and worsted machinery i n d i c a t e t h a t t h e r e h a s been a s l i g h t i n c r e a s e i n g e n e r a l a c t i v i t y , a s t h e p e r c e n t a g e of i d l e hours 11/ -19X-3235 r e p o r t e d on October 1 had d e c l i n e d i n a l l c a s e s except f o r looms wider t h a n $0 inch reed s p a c e . The p e r c e n t a g e of i d l e hours r e - p o r t e d f o r woolen s p i n d l e s was 2 0 . 9 P e r cent on October f i r s t as compared w i t h 2 1 . 2 p e r cent on September f i r s t and f o r worsted s p i n d l e s t h e p e r c e n t a g e s were 7*8 and 1 1 . 5 respectively*. CLOTHING. The seven w h o l e s a l e m a n u f a c t u r e r s of men's c l o t h i n g who r e g u l a r l y r e p o r t t o the Federal Reserve Bank of Chicago showed an i n c r e a s e i n t h e number of s u i t s made a s compared with September 1920 of 14 p e r c e n t . The number of s u i t s shipped were 3 . 4 p e r cent l e s s t h a n shipments d u r i n g t h e same p e r i o d a y e a r ago. Few a d d i t i o n a l o r d e r s a r e r e p o r t e d a s t h e s e l l i n g season i s about over, but t h e i n c r e a s e i n September p r o d u c t i o n as compared w i t h l a s t year was due t o t h e f a c t t h a t t h e season l a s t e d r e l a t i v e l y l a t e . O p e r a t i o n s of 15 r e p o r t i n g t a i l o r s - t o - t h e - t r a d e a r e s t i l l g r e a t l y below t h o s e of t h e c o r r e s p o n d i n g p e r i o d f o r l a s t y e a r , a s t h e numbed of s u i t s made was 25.6 p e r cent l e s s t h a n f o r September 1920; shipments were 27-3 p e r cent lower; and o r d e r s were 2 8 . 5 p e r cent below t h o s e r e c e i v e d l a s t year. However, some improvement occurred d u r i n g t h e month, a s t h e J u l y and August f i g u r e s were even f u r t h e r behind t h o s e of l a s t year. In D i s t r i c t No. 2 (New York) 11 w h o l e s a l e c l o t h i n g f i r m s r e p o r t e d s a l e s of c l o t h i n g , both men's and women's, t o be 2 5 . 4 p e r cent below August s a l e s and 6 5 . 1 p e r cent below t h o s e of September 1920. SILK. Heavy i m p o r t a t i o n s of raw s i l k i n September and. a consumption f o r t h a t month above t h e average f o r t h e p r e c e d i n g s i x months' p e r i o d c o i n c i d e d c u r i o u s l y enough w i t h a c u r t a i l m e n t of -20- o p e r a t i o n s i n t h e broad s i l k i n d u s t r y . x-3235 D i s t r i c t No. 3 ( P h i l a d e l p h i a ) a t t r i b u t e s t h e maintenance of demand f o r t h e raw m a t e r i a l t o p u r chasing by h o s i e r y and k n i t goods m i l l s . The a c t u a l i m p o r t a t i o n f o r September was 35/366 b a l e s and the average monthly i m p o r t a t i o n over a p e r i o d of s i x months was 31,7^6 b a l e s . Consumption i n September amounted t o 31,229 b a l e s , as compared w i t h an average f o r t h e s i x months* p e r i o d of 30,607 b a l e s - Recent i n c r e a s e s i n t h e s a l e s of broad s i l k s have reduced r e t a i l e r s ' s t o c k s causing manufactu r e r s t o hope t h a t t h e i r accumulated h o l d i n g s w i l l be e v e n t u a l l y absorbed. Meantime, a c t i v i t y i n t h e goods m i l l s i s a t low ebb; t h e l a t e s t r e p o r t s from P a t e r s o n f o r October 8 c o v e r i n g a t o t a l of 15,000 looms, s t a t e d t h a t only 3*696 of those looms were producing. Of t h e t o t a l loom hours a v a i l a b l e , about 24 p e r cent were b e i n g utilized. A c t i v i t y was much g r e a t e r i n t h e North Hudson S e c t i o n where 2,910 looms out of a t o t a l of 4,665 were i n o p e r a t i o n and t h e loom hour a c t i v i t y was over HOSIERY. 62 p e r c e n t . The shortage of f u l l - f a s h i o n e d s i l k h o s i e r y so f r e q u e n t l y r e f e r r e d t o in former r e p o r t s , has not yet been overcome and D i s t r i c t No. 3 ( P h i l a d e l p h i a ) says t h a t " e f f o r t s t o i n c r e a s e p r o d u c t i o n i n m i l l s a f f e c t e d by t h e s t r i k e have met w i t h only f a i r success." The supply of seamless and mock-fashioned s i l k h o s i e r y i s , however, s u f f i c i e n t , b a r r i n g a few e x c e p t i o n s . In c o t t o n and mercerized h o s i e r y t h e demand h a s increased s l i g h t l y but j o b b e r s a r e making p u r c h a s e s only i n small amounts and f o r immediate d e l i v e r y , i n view of p r i c e u n c e r t a i n t i e s * The 25 h o s i e r y f i r m s -21- X-3235 s e l l i n g t o t h e w h o l e s a l e t r a d e which r e g u l a r l y r e p o r t t o t h e Federal Reserve Bank of P h i l a d e l p h i a showed a s l i g h t f a l l i n g off i n t h e p r o d u c t manufactured d u r i n g September, a m o u n t m g t o 0, S p e r c e n t , but t h e output was 1 3 1 . 9 p e r cent i n excess of t h a t f o r a y e a r ago. Orders booked d u r i n g September advanced 126,3 p e r c e n t a s compared w i t h t h e p r e c e d i n g month and were 344,9 p e r c e n t above t h o s e f o r September, 1920. U n f i l l e d o r d e r s on hand September 30 were 4 . 7 p e r c e n t g r e a t e r t h a n a t t h e end of August and 57*9 P e r c e n t above t h o s e on hand a t t h e end of September, 1S20. The n i n e h o s i e r y f i r m s s e l l i n g t o t h e r e t a i l t r a d e r e p o r t e d a heavy i n c r e a s e i n p r o d u c t manufactured d u r i n g t h e month of 6 7 . 9 p e r c e n t , but t h e i r o u t p u t was only 7 . 1 p e r c e n t above t h e r e t u r n s f o r September a y e a r a g o . Orders booked d u r i n g September were $ . 8 p e r c e n t above t h o s e r e c e i v e d d u r i n g August and 261,6 p e r cent above t h e f i g u r e s f o r September, 1920. U n f i l l e d o r d e r s on hand September 30 were 1 3 - 4 p e r c e n t below t h o s e f o r t h e p r e c e d i n g month, b u t were 4 , 3 p e r c e n t above t h o s e on hand September 30, 1920. M i l l s m a n u f a c t u r i n g c o t t o n h o s i e r y i n t h e southern d i s t r i c t s r e p o r t e d a h i g h degree of a c t i v i t y . In C i ^ t r . c t No, 5 (Richmond) t h e volume of b u s i n e s s was s a i d t o be s u f f i c i e n t t o enable many m i l l s t o keep r u n n i n g f u l l time and t h i s was p a r t i c u l a r l y t r u e i n t h e case of t h o s e m i l l s which had only s l i g h t l y advanced t h e i r p r i c e s , f o l l o w i n g t h e r i s e i n the p r i c e of raw c o t t o n . In D i s t r i c t No. 6 ( A t l a n t a ) t h e m a n u f a c t u r e r s of c o t t o n h o s i e r y r e p o r t i n g t o t h e Federal Reserve Bank were o p e r a t i n g a t from 80 t o 90 p e r c e n t of capacity. During t h e month t h e r e Were i n c r e a s e s i n u n f i l l e d o r d e r s 1-4 "8 '-it- ' •? -22- X-3235 and s t o c k s on hand a s w e l l a s i n t h e amount of t h e p r o d u c t manuf a c t u r e d by t h e s e m i l l s . Slight increases in p r i c e s occurred, a l t h o u g h i t was s a i d t h a t p r e s e n t p r i c e s were approximately $0 p e r c e n t lower t h a n t h o s e p r e v a i l i n g a y e a r a g o . UNDERWEAR. The r e p o r t s r e c e i v e d from 35 members of t h e Knit Goods M a n u f a c t u r e r s of America engaged i n p r o d u c i n g underwear showed s u b s t a n t i a l improvement i n September a s compared w i t h August, M i l l s p r o d u c i n g 303,7^8 dozen i n August had an output i n September of 352,243 dozen, a g a i n of 14 p e r c e n t . U n f i l l e d o r d e r s r o s e frem 437, <s66 dozen i n August t o 509/851 dozen i n September o r 14 p e r c e n t . New o r d e r s i n c r e a s e d from 4 5 6 , 1 3 5 / i a ^ u g u s t t o 763# 9&6 dozen i n September, a g a i n of 40 p e r c e n t . Shipments d e c r e a s e d from 3 9 ^ 7 8 3 dozen i n August t o 3^3,145 dozen i n September, a d e c r e a s e of 14 p e r cent. T h i r t y - n i n e m i l l s r e p o r t i n g whose normal p r o d u c t i o n i s 567,501 dozen monthly showed u n f i l l e d o r d e r s on hand of 1 , 0 8 8 , 6 8 6 dozen or n e a r l y two months' p r o d u c t i o n a t normal o r two and a h a l f months a t p r e s e n t r a t e of a c t u a l p r o d u c t i o n . The d i s t r i b u t i o n of w i n t e r underwear i s i n c r e a s i n g and s t o c k s of many i t e m s a r e b e i n g d e p l e t e d , but, t o quote t h e s t a t e m e n t from D i s t r i c t Do. 3 ( P h i l a d e l p h i a ) "Cooler w e a t h e r would undoubtedly be conducive t o more s u b s t a n t i a l buying of w i n t e r underwear by both t h e j o b b i n g and r e t a i l t r a d e . J o b b e r s ' s t o c k s a r e h e a v i e r t h a n u s u a l because of t h e l a r g e c a r r y over from t h e mild season of l a s t w i n t e r . D e l i v e r i e s a r e b e i n g made from t h e s e s t o c k s now, and t h e r e f o r e m a n u f a c t u r e r s have l i t t l e p r o s p e c t of b e i n g a b l e t o i n c r e a s e m i l l o p e r a t i o n s . The p r i c e of i -4 "; ' 0 * 2 > X.3235 heavyweight underwear has been r a i s e d i n accord w i t h t h e h i g h e r c o t t o n and wool-yarn p r i c e s , and t c some e x t e n t t h i s a l s o h a s r e t a r d e d buying", Spring l i n e s continue to s e l l a t higher p r i c e l e v e l s equal t o t h e i n c r e a s e i n c o t t o n and t h e i n d i c a t i o n s of a r e t u r n t o normal seasonal c h a n n e l s of d i s t r i b u t i o n a r e s t r o n g e r , SHOES AND LEATHER. The market f o r h i d e s and s k i n s was a c t i v e d u r i n g September and t h e f i r s t two weeks of October, and p r i c e s of both p a c k e r h i d e s and country h i d e s have advanced. Net shipments of green h i d e s from Chicago d u r i n g September exceeded t h o s e i n August by 91.6 p e r c e n t . D i s t r i c t No. 7 (Chicago) n o t e s a decided improve- ment i n demand f o r t h e cheaper grades of l e a t h e r and work shoe l e a t h e r i n September, w h i l e D i s t r i c t . N o . 3 ( P h i l a d e l p h i a ) s t a t e s t h a t " s o l e l e a t h e r i s t h e f e a t u r e of t h e l e a t h e r m a r k e t " . The upper l e a t h e r market i s r a t h e r q u i e t , a l t h o u g h s a l e s of upper l e a t h e r were l a r g e r i n September than i n August, S a l e s of b e l t i n g l e a t h e r c o n t i n u e t o be much r e s t r i c t e d due t o t h e reduced o p e r a t i o n s of most manufacturing i n d u s t r i e s . E x p o r t s of both upper and s o l e l e a t h e r were s l i g h t l y l a r g e r i n September t h a n i n August. Demand f o r shoes, c o n t i n u e s t o be very s a t i s f a c t o r y , a l t h o u g h i t has s h i f t e d somewhat from f a n c y grades t o more s t a p l e l i n e s . During September t h e p r o ^ Auction of s i x l a r g e shoe concerns i n D i s t r i c t No. 1 (Boston) d e c r e a s e d 20/2 p e r cent from t h a t of August, but exceeded by 2 0 . 4 p e r cent t h e p r o d u c t i o n i n September, 1920. Shipments were 1 2 . 6 p e r c e n t l e s s t h a n i n August, but 19 p a r cent more o r d e r s were booked. Reports from 45 shoe f i r m s i n D i s t r i c t No. 3 ( P h i l a d e l p h i a ) show a p r o d u c t i o n i n September which was 2 . 4 p e r cent g r e a t e r t h a n i n August, and 39*^ p e r cent g r e a t e r t h a n i n September, 1$20. Shipments were 1 1 . 4 p e r cent l e s s i n September t h a n i n August, b u t t h e number of new o r d e r s i n c r e a s e d 48 p e r c e n t . "Some of t h e l a r g e p l a n t s a r e o p e r a t i n g on f u l l time and a r e booking l a r g e o r d e r s f o r January and A p r i l d e l i v e r y " . District Mo. 7 (Chicago) s t a t e s t h a t t h e p r o d u c t i o n of 21 r e p o r t i n g shoe conc e r n s i n September was 3 p e r cent g r e a t e r t h a n i n August and 2 6 . 5 p e r cent g r e a t e r t h a n i n September, 1$20. Shipments i n c r e a s e d 7*3 p e r cent and u n f i l l e d o r d e r s i n c r e a s e d 7 - 2 p e r cent d u r i n g September, w h i l e s t o c k s a t t h e c l o s e of t h e month were 2 5 . 8 p e r c e n t s m a l l e r t h a n a t t h e c l o s e of August. In t h e a g g r e g a t e m a n u f a c t u r e r s ' s t o c k s i n t h a t D i s t r i c t amount t o l e s s t h a n two weeks' p r o d u c t i o n . There have been many small o r d e r s , and much demand f o r immediate shipment, which i n d i c a t e t h a t d e a l e r s a r e buying c a u t i o u s l y . R e p o r t s from 11 l e a d i n g shoe i n t e r e s t s i n D i s t r i c t No. 8 ( S t . Louis) i n d i c a t e t h a t shipments i n September were from 10 t o 40 p e r c e n t l a r g e r t h a n i n September, 1$20. "Production i s a t a h i g h e r r a t e t h a n a t any time i n the p a s t , " and " a l l r e p o r t i n g p l a n t s have sold t h e i r o u t p u t f o r s i x t y days ahead". P r i c e s were reduced about 5 p e r cent e a r l y i n October. LUMBER. An i n c r e a s i n g l y a c t i v e demand f o r lumber and s u b s t a n t i a l advances i n p r i c e s of upper g r a d e s w i t h s m a l l e r advances i n common items d u r i n g September a r e i n d i c a t e d by r e p o r t s from t h e s e v e r a l d i s t r i c t s . A c t u a l p r o d u c t i o n shows l i t t l e i n c r e a s e but m a n u f a c t u r e r s ' s t o c k s a r e declining materially. Demand i s c h i e f l y f o r upper g r a d e s of lumber due, i t i s s a i d , t o t h e h i g h f r e i g h t r a t e s which o p e r a t e a g a i n s t shipment of low grade s t o c k . D i s t r i c t No. 12 (San F r a n c i s c o ) r e p o r t s t h a t t h e l a t e September s t a t e m e n t s of t h e f o u r lumber a s s o c i a t i o n s of t h a t D i s t r i c t r e f l e c t t h e cumulative e f f e c t of s e v e r a l f a v o r a b l e f a c t o r s which have been x-3235 i n c r e a s i n g l y apparent i n t h e lumber s i t u a t i o n . Due t o a c t i v e cargo buying and l a r g e seasonal buying by domestic d i s t r i b u t o r s , o r d e r s placed d u r i n g September t o t a l e d 369#093#000 f e e t , t h e h i g h e s t p o i n t reached s i n c e May, 1920. This f i g u r e i s 19 p e r cent g r e a t e r t h a n f o r August and 3 1 . 4 p e r cent g r e a t e r t h a n f o r September, 1920. The f o u r a s s o c i a t i o n s of t h e D i s t r i c t r e p o r t a t o t a l cut f o r September of 3^6#719# 000 f e e t , a d e c r e a s e of 2 . 3 p e r cent from t h e p r o d u c t i o n f o r August and of 2 4 , 0 p e r cent from t h a t f o r t h e corresponding p e r i o d l a s t y e a r . Shipments d e c l i n e d from 341,906,000 f e e t i n August to. 320,986, 000 f e e t i n September. Logging o p e r a t i o n s a r e proceeding a t approximately 75 P e r cent of c a p a c i t y , which i s a decided improvement over l a s t month. Thirty-two p i n e m i l l s i n D i s t r i c t No. 11 ( D a l l a s ) r e p o r t a September production which was 33 per cent below normal, and 19 per cent below shipments. production. New o r d e r s r e c e i v e d were 88 p e r cent of normal monthly M i l l p r i c e s have tended upward during t h e month, e s p e c i a l l y i n t h e lower lumber grades, where No. 2 and No. 3 southern p i n e advanced about t h r e e d o l l a r s p e r thousand. In D i s t r i c t No. 6 ( A t l a n t a ) r e p o r t s i n d i c a t e an i n c r e a s e i n t h e demand f o r lumber and some advance i n p r i c e s of both h i g h e r and lower g r a d e s . The Southern Pine Association's September statement, covering 133 member mills, shows actual production to be 22.23 p e r cent below normal and shipments t o be 15,6 p e r cent above actual production. The lumber cut of r e p o r t i n g m i l l s i n D i s t r i c t No. 9 (Minneapolis) t o t a l e d 14,089,436 f e e ^ which was 20 p e r cent below t h e August cut and 40 p e r cent below t h e cut of September l a s t y e a r . Orders booked d u r i n g the month, however, were 15 p e r cent g r e a t e r i n volume t h a n t h o s e f o r August and 50 p e r cent g r e a t e r t h a n t h o s e f o r t h e corresponding period i n 1920. D i s t r i c t No. 8 ( S t , Louis) r e p o r t s sharp advances i n upper grades of yellow p i n e d u r i n g September, w i t h only a s l i g h t i n c r e a s e i n p r o d u c t i o n but w i t h heavy shipments. In t h i s D i s t r i c t t h e hardwood s i t u a t i o n has improved and demand i s i n c r e a s i n g . I IT - 26 BUILDING. 7-3235 As a whole, b u i l d i n g continued to be w e l l s u s t a i n e d d u r i n g September b u t improvement was e v i d e n t c h i e f l y i n r e s i d e n t i a l c o n s t r u c t i o n s . The - t o t a l v a l u e of c o n t r a c t s awarded i n the seven D i s t r i c t s f o r which s t a t i s t i c s a r e compiled by the F. W, Dodge Company shows an i n c r e a s e d u r i n g September as compared w i t h August and as compared w i t h September, 1920. The i n c r e a s e from August to September was due e n t i r e l y t o D i s t r i c t s No. 2 (New York), No. & ( C l e v e l a n d ) , and No. 5 (Richmond), a s they alone showed increases. All D i s t r i c t s except No. 1 (Boston) and No. 9 (Minneapolis) showed i n c r e a s e s i n r e s i d e n t i a l c o n t r a c t s . I n D i s t r i c t No. 1 (Boston) con- t r a c t s amounted t o $15,282,766 as compared w i t h $19,276,295 d u r i n g August. Of t h i s t o t a l approximately $6,548,000 was f o r r e s i d e n t i a l purposes as compared with $6,703,000 i n August.. In D i s t r i c t No. 2 (New York) c o n t r a c t s awarded d u r i n g September t o t a l l e d $90,730,13'+ in comparison w i t h $62,043,905 d u r i n g August, and r e s i d e n t i a l b u i l d i n g t o t a l l e d $45,789,646 as compared w i t h $36,061,717. T o t a l c o n t r a c t s awarded in D i s t r i c t No. 3 ( P h i l a d e l p h i a ) amounted t o $16,197,500 i n September and $22,350,500 i n August. Residen- t i a l c o n t r a c t s t o t a l l e d $5,526,400 i n September and $5,331,500 in August. In D i s t r i c t No. 4 (Cleveland) the t o t a l amount of c o n t r a c t s awarded was $36,041,601 a s compared w i t h $26,665,555 f o r August. Of t h e s e $8,987,610 were f o r r e s i d e n t i a l purposes as compared with $8,209,645 d u r i n g August. C o n t r a c t s f o r D i s t r i c t No. 5 (Richmond) amounted to $19,597,191 i n September, as compared w i t h $17,337,624 in August, w h i l e $6,171,436 of the September t o t a l were f o r r e s i d e n t i a l -purposes as compared w i t h $5,938,417 f o r August. In D i s t r i c t No. 7 (Chicago) b u i l d i n g c o n t r a c t s t o t a l l e d $4l,461,283 during September a s ccmpared with $44,680,034 d u r i n g August. T o t a l b u i l d i n g con- t r a c t s awarded i n D i s t r i c t No. 9 (Minneapolis) amounted to $8,162,640 as • -4 -i JLJL f" O t - 27 " x-3235 compared with $9,173,552 during August. In D i s t r i c t No. 1 (Boston) 2,407 b u i l d i n g permits were issued during September, valued a t $5,655,3)5, as compared with 1,715 permits valued a t $4,868,873 issued during September,1920. Permits granted in 22 c i t i e s of D i s t r i c t No. 2 (New York) numbered 7,709 with a v a l u a t i o n of $47,232,953 as compared with 4,779 permits with a valuation of' $22,224,669 during September l a s t y e a r . In D i s t r i c t No. 3 (Philadelphia) 2,990 permits were issued during September in comparison with 1,943 permits during September, 1920. D i s t r i c t No. 4 (Cleveland) r e p o r t s t h a t the v a l u a t i o n of permits issued in 13 l e a d i n g c i t i e s during September shows a gain of 21.4 per cent over September l a s t y e a r . In D i s t r i c t No. 5 (Richmond) t o t a l permits issued in 15 c i t i e s numbered 3,389, valued at $9,284,277 i n comparison with 2,497 permits valued a t $5,860,033 during September, 1920. D i s t r i c t No. 6 (Atlanta) r e p o r t s t h a t in l 4 important c i t i e s 2,847 permits were issued, valued a t $5,150,280 as comapred with 2,255, valued at $4,243,928, during the corresponding period l a s t y e a r . D i s t r i c t No. 7 (Chicago) r e p o r t s 5,^66 permits valued a t $23,080,016 granted in 19 c i t i e s as compared with 5,003 P e r m i * s valued a t $16,405,747 granted during September, 1920. Building permits issued in the f i v e l a r g e s t c i t i e s of D i s t r i c t No. 8 ( S t . Louis) show a marked gain, in both number and expenditure, over those issued in August, and also over Se-rtembey, 1920. The number and valuation of b u i l d i n g permits issued during September in nine c i t i e s of D i s t r i c t No. 9 (Minneapolis) decreased 17.4 and 26.3 P e r cent r e s p e c t i v e l y , a s compared with the August f i g u r e s . September r e p o r t s from 19 c i t i e s of D i s t r i c t No. 10 (Kansas City) show an increase f o r the month under review over the corresponding period l a s t year of 71«2 per cent in the number of permits and 106.9 per cent in t h e i r v a l u a t i o n . In 9 c i t i e s of • ±±77 " - 25 - X-3235 D i s t r i c t No. 11 ( D a l l a s )2, 598 p e r m i t s v a l u e d a t #5,680,962 were i s s u e d d u r i n g September a s ccmpared w i t h 1 , 8 6 4 p e r m i t s valued a t $ 3 , 2 8 4 , 8 4 l i s s u e d d u r i n g September, 1920. I n D i s t r i c t No. 12 (San F r a n c i s c o ) "September b u i l d i n g r e t u r n s reached the h i g h e s t p o i n t ever touched"- P e r m i t s g r a n t e d i n 20 c i t i e s of the D i s t r i c t number 11,169, w i t h a v a l u a t i o n of $20,134,993 as compared w i t h 9*322, w i t h a v a l u a t i o n of $17,117,294, g r a n t e d d u r i n g September l a s t year. EMPLOYMENT. The l a t e s t r e p o r t on employment i n s e l e c t e d i n d u s t r i e s made by the United S t a t e s Department of Labor showed t h a t d u r i n g the month of September t h e r e were i n c r e a s e s i n numbers on the p a y r o l l as compared v i t h August i n 11 of the 14 i n d u s t r i e s covered, the advances r a n g i n g from 0 . 2 p e r c e n t i n the c a s e of the s i l k i n d u s t r y t o 4 . 8 p e r c e n t f o r h o s i e r y and underwear and f o r c i g a r m a u n f a c t u r i n g . Only men's ready made c l o t h i n g , c u t c a p - b i l e s , b o o t s and shoes,showed d e c r e a s e s of 0 . 9 p e r c e n t , 0 . 7 p e r c e n t and 0.3 per cent r e s p e c t i v e l y . showed i n c r e a s e s As compared w i t h September, 1920, 8 i n d u s t r i e s 6 decreases. The maximum i n c r e a s e of 59*2 p e r c e n t was found i n the woolen i n d u s t r y w h i l e t h e r e was an i n c r e a s e of 1 8 . 4 p e r c e n t i n b o o t s and shoes and of 13.9 p e r c e n t f o r c o t t o n f i n i s h i n g . The most pronounced d e c r e a s e occurred i n i r o n and s t e e l , w i t h a drop of 42 p e r c e n t i n numbers employed; t h e r e was a 35 P e r c e n t d e c r e a s e i n c a r b u i l d i n g and r e p a i r i n g ; and a 3 1 - 6 p e r c e n t r e d u c t i o n i n p a p e r making. Judging from such l o c a l r e p o r t s as a r e a v a i l a b l e f o r the p e r i o d i n q u e s t i o n and l i k e w i s e f o r a l a t e r d a t e , the s t a t i s t i c s given n o t only r e f l e c t g e n e r a l c o n d i t i o n s b u t i n d i c a t e a tendency which h a s been s u s t a i n e d d u r i n g the p a s t few weeks. The l a t e s t r e t u r n s t o the Massachusetts Department of Labor and I n d u s t r i e s showed t h a t the s i t u a t i o n i n t h a t s t a t e was s t i l l s e r i o u s on October 1 w i t h l 4 . 6 p e r c e n t of the membership of r e p o r t i n g l a b o r o r g a n i z a t i o n s i d l e as a r e s u l t of the l a c k of demand, f o r t h e i r s e r v i c e s , e x c l u s i v e of o t h e r c a u s e s . N e v e r t h e l e s s , t h e showing was much b e t t e r than a t the time of the p r e c e d i n g q u a r t e r l y 1 I n q u i r y when 20 p e r c e n t of the workers b e l o n g i n g to t h e s e unions were u n a b l e to f i n d employment. The t h r e e M a s s a c h u s e t t s p u b l i c employment o f f i c e s showed, f o r the f o u r weeks ending October 15, a' r a t i o .of about 12 p e r s o n s a p p l y i n g f o r p o s i t i o n s t o every one asked f o r . was approximately 19 t o 1. L a s t May the r a t i o The e f f e c t s of p a r t time employment i n some s e c t i o n s , e s p e c i a l l y i n the m e t a l , machinery and t o o l making i n d u s t r i e s of s o u t h e r n New England, a r e s a i d to c o n s t i t u t e a problem almost as s e r i o u s as the complete unemployment. In New York S t a t e , the Department of Labor r e - p o r t e d an i n c r e a s e of 3 . 5 P e r c e n t i n the number of f a c t o r y workers employed i n the p e r i o d from August 15 to September 15- The p r i n c i p a l changes occured i n t e x t i l e and c l o t h i n g f a c t o r i e s w h i l e some s t e e l p l a n t s i n the B u f f a l o d i s t r i c t likewise increased t h e i r forces. P r e l i m i n a r y r e p o r t s f o r October i n d i c a t e d t h a t t h e r e would be a f u r t h e r d i m i n u t i o n i n f a c t o r y unemployment i n the S t a t e . I n D i s t r i c t Nc. J ( P h i l a d e l p h i a ) , on the o t h e r hand, the r e - p o r t s t o the P e n n s y l v a n i a S t a t e Department of Labor shewed a s l i g h t i n c r e a s e i n numbers unemployed f o r the p e r i o d from September 30 t o October 15 f o r the s i x c i t i e s of Jiltoon>a, H a r r i s b u r g , Johnstown, P h i l a d e l p h i a , Scrantcn and T i l l i a m s p o r t , b u t d u r i n g the p r e c e d i n g two weeks* p e r i o d t h e r e had been a r e d u c t i o n of 1 p e r c e n t i n t h e numbers of unemployed. T o t a l unemployment f o r t h e s e c i t i e s on October 15 was e s t i m a t e d a t 202,185. In D i s t r i c t No. 5 (Richmond) the s i t u a t i o n remained s u b s t a n t i a l l y unchanged d u r i n g the month. In t h e West V i r g i n i a c o a l mining r e g i o n unemployment c o n t i n u e d to be widespread and those miners t h a t were a t work were a v e r a g i n g only two t o f o u r . 30 days p e r week. X-3235 In g e n e r a l , the small towns were s u f f e r i n g l e s s than the l a r g e r c i t i e s of the d i s t r i c t . For 221 f i r m s i n D i s t r i c t No* 7 (Chicago) employing 135,182 p e r s o n s on September 30, 1921 t h e r e was a n e g l i g i b l e dec r e a s e i n numbers on the p a y r o l l as compared w i t h jkigust 31 and a decrease of 28* 7 p e r c e n t as compared with September 30, 1920* The decreases occurred p r i n c i p a l l y i n the i n d u s t r i e s engaged i n the p r o d u c t i o n of i r o n and s t e e l p r o d u c t s such as a g r i c u l t u r a l implements and railway equipment, w h i l e f dod, c l o t h i n g , l e a t h e r and shoes showed gains* Reports from 10 f i r m s engaged in c o n s t r u c t i o n and b u i l d i n g work showed a r e d u c t i o n of 26.8 p e r c e n t i n numbers employed i n September a s compared w i t h the p r e c e d i n g month and s i x automob i l e and accessory p l a n t s o u t s i d e D e t r o i t employed 8*5 p e r c e n t fewer men i n September* In D i s t r i c t No* 12 (San F r a n c i s c o ) , i n c r e a s e s and d e c r e a s e s i n numbers employed in v a r i o u s i n d u s t r i e s "about o f f s e t one a n o t h e r , l e a v i n g t h e t o t a l number of men engaged in g a i n f u l occupation a t the end of the month approximately unchanged# The c l o s e of the f i s h i n g season caused heavy r e - d u c t i o n s i n numbers employed and f u r t h e r d e c l i n e s occurred in the s h i p b u i l d ing industry* On the o t h e r hand, demand from t h e l i m b e r i n g r e g i o n s of Oregon and Washington improved and the coal mines of Washington a l s o r e sumed o p e r a t i o n s . In C a l i f o r n i a t h e r e was a heavy demand f o r u n s k i l l e d l a b o r to h a r v e s t the l a t e r c r o p s . S l i g h t l y b e t t e r c o n d i t i o n s were r e p o r t e d i n the mining d i s t r i c t s of Utah, Nevada and Arizona and t h e r e was an i n c r e a s e d d e mand f o r h a r v e s t l a b o r i n Idaho where r a i l r o a d c o n s t r u c t i o n work was a l s o b e g i n n i n g to be undertaken. The demand f o r s k i l l e d l a b o r i n the b u i l d i n g t r a d e s was g r e a t e r i n p r a c t i c a l l y a l l c i t i e s throughout t h e D i s t r i c t as a r e s u l t of the q u i t e general i n c r e a s e i n b u i l d i n g a c t i v i t y . WHOLESALE TRADE. With few e x c e p t i o n s s a l e s of r e p o r t i n g wholesale ' - 31 - x-3235 1180 hardware and d r y goods f i r m s i n t h e s e v e r a l D i s t r i c t s i n c r e a s e d d u r i n g September a s compared w i t h August. These i n c r e a s e s were e x c e p t i o n a l l y heavy i n b o t h hardware and dry goods i n D i s t r i c t No. 6 (Atlanta*). F a l l b u y i n g on the p a r t of r e t a i l e r s i n t h a t s e c t i o n of t h e c o u n t r y , delayed beyond the u s u a l p e r i o d , r e c e i v e d a d d i t i o n a l - e m p h a s i s as a r e s u l t of the h e i g h t e n e d p u b l i c demand t h a t f o l l o w e d upon c r o p s a l e s . For a l l r e p o r t i n g D i s t r i c t s , the i n c r e a s e s i n hardware v a r i e d frcm the minimum of 5*5 P e r c e n t (24 f i r m s r e p o r t i n g ) i n D i s t r i c t No, 3 ( P h i l a d e l p h i a ) t o a maximum of l6»2 p e r cent ( 2 1 f i r m s r e p o r t i n g ) i n D i s t r i c t No. 6 ( A t l a n t a ) , w h i l e d e - c r e a s e s were recorded i n D i s t r i c t No. 9 (Minneapolis) and D i s t r i c t No. 11 ( D a l l a s ) amounting t o 1 1 , 8 p e r c e n t (7 f i r m s r e p o r t i n g ) and 7 , 0 p e r c e n t (11 f i r m s r e p o r t i n g ) r e s p e c t i v e l y . D i s t r i c t No. 11 ( D a l l a s ) e x p l a i n s the d e c r e a s e i n s a l e s by s t a t i n g t h a t the demand f r o b c o u n t r y b u y e r s h a s been poor a l t h o u g h i t h a s remained f a i r l y good i n the c i t i e s . I n . D i s t r i c t No. 9 (Minneapolis) the s t i m u l a t i n g e f f e c t of crop l i q u i d a t i o n would undoubtedly be f e l t somewhat l a t e r t h a n i n o t h e r p a r t s of the c o u n t r y , b u t n e v e r t h e l e s s , a s the c r o p s went t o market e a r l i e r than u s u a l t h i s y e a r , the e x p l a n a t i o n i s h a r d l y adequate to a c c o u n t f o r a downward t r e n d i n September s a l e s . In D i s t r i c t No. 3 ( B i i l a d e l p h i a ) t h e 2U f i r m s from which r e t u r n s h a v e b e e n r e c e i v e d s t a t e d t h a t the i n c r e a s e i n s a l e s c o n s i s t e d " a l m o s t e n t i r e l y of o r d e r s f o r r u s h shipments f o r the r e p l e n i s h m e n t of s t o c k s . " Wholesalers were s a i d t o be n e i t h e r buying n o r s e l l i n g s p r i n g goods to any e x t e n t . In the case of dry goods, advances i n the p r i c e of c o t t o n goods may i n some c a s e s h a r e a c c e l e r a t e d the s e a s o n a l upward movement of s a l e s which o c c u r r e d i n a l l r e p o r t i n g D i s t r i c t s e x c e p t D i s t r i c t No. 2 (New York) i n which t h r e e f i r m s showed an average d e c l i n e of 0 . 7 p e r c e n t , and D i s t r i c t x - 32 - -3235 JL^O. No. 9 (Minneapolis) i n which f i v e f i r m s showed an average d e c l i n e of 20 p e r cent d u r i n g the month. The advances ranged from 8 . 1 p e r c e n t i n Dis- t r i c t No. 5 (Richmond) w i t h s e f e n f i r m s r e p o r t i n g up to 33»9 P e r cent i n D i s t r i c t No. 6 ( A t l a n t a ) with 18 f i r m s r e p o r t i n g . I n the case of whole- s a l e g r o c e r i e s , t h e upward movement of s a l e s was by no means as general as i t was i n the case of hardware and dry goods. U s u a l l y September marks the b e g i n n i n g of f a l l buying a c t i v i t y but i n t h r e e D i s t r i c t s , namely D i s t r i c t No. 2 (New York), No, 3 ( P h i l a d e l p h i a ) and No. 7 (Chicago), d e c l i n e s in s a l e s occurred during the month amounting t o 5»9 P 0 r c e n t (9 f i r m s r e p o r t i n g ) , 6 , 1 p e r c e n t (48 f i r m s r e p o r t i n g ) and 6,8 p e r c e n t (23 f i r m s r e p o r t i n g ) f o r the D i s t r i c t s i n Question. I t w i l l be noted f u r t h e r m o r e t h a t these averages cover almost 50 p e r c e n t of a l l r e p o r t i n g f i r m s , as r e t u r n s f o r the country as a whole comprise only 163 wholesale grocery f i r m s . D i s t r i c t No. 3 ( P h i l a d e l p h i a ) gave as a reason f o r the s a l e s d e c l i n e the u n w i l l i n g n e s s of r e t a i l e r s to p l a g e o r d e r s f o r f u t u r e d e l i v e r y . In D i s t r i c t No. 6 ( A t l a n t a ) , however, r e t a i l e r s were r e p o r t e d to have purchased more l i b e r a l l y and D i s t r i c t No. 11 ( D a l l a s ) s t a t e d t h a t although t h e buying was c a u t i o n s , i t showed improvement e s p e c i a l l y i n the L o u i s i a n a s e c t i o n where the i n c r e a s e i n the p r i c e of c o t t o n and the renewed a c t i v i t y i n the o i l i n d u s t r y had p r o duced f a v o r a b l e r e s u l t s . In the case of boots and shoes, the s a l e s move- ment m a n i f e s t e d l a c k of u n i f o r m i t y w i t h i n the s e v e r a l D i s t r i c t s . In D i s t r i c t No. 2 (New York) and No. 5 (Richmond) d e c l i n e s occurred amounting t o 7»5 p e r cent ( seven f i r m s r e p o r t i n g ) and 0 . 5 p e r c e n t ( e i g h t f i r m s r e p o r t i n g ) respectively. On the o t h e r hand e x t r a o r d i n a r i l y heavy i n c r e a s e s took p l a c e i n D i s t r i c t No. 6 ( A t l a n t a ) and i n D i s t r i c t No. 12 fSan F r a n c i s c o ) . For the former D i s t r i c t n i n e f i r m s r e p o r t i n g an average i n c r e a s e i n s a l e s of t \ - 33 - x-3235 35-T per cent while for the latter District 16 firms reported, an advance of 29.2 per cent in sales. In the only other District from which reports have been received, namely District No. 7 (Chicago), nine firms showed an average advance in sales of 7.8 per cent. RETA It. TP APE. While September r e t a i l t r a d e as shown b y s a l e s of r e p r e - s e n t a t i v e department s t o r e s i s i n excess of the August f i g u r e s , i t has been r e t a r d e d somewhat by t h e u n s e a s o n a b l y warm w e a t h e r which p r e v a i l e d d u r i n g the f i r s t p a r t of t h e month. The l a r g e amount of unemployment p r e v a i l i n g has a l s o forced people to confine t h e i r purchasing r a t h e r to e s s e n t i a l s . Demand a c c o r d - i n g l y seems to be g r e a t e s t f o r c a r p e t s , r u g s , y a r d goods, and medium p t i c e d r e a d y - t o - w e a r c l o t h i n g , whereas items l i k e p i a n o s , phonographs, and c o n f e c tionery are s e l l i n g poorly. S a l e s of 3^2 r e p r e s e n t a t i v e department s t o r e s throughout t h e United S t a t e s , w h i l e showing an i n c r e a s e over August, were n e v e r t h e l e s s 1 5 . 1 p e r c e n t below t h e September, 1920, f i g u r e s . In t h i s con- n e c t i o n should be k e p t i n mind the d e c r e a s e i n p r i c e s which h a s taken p l a c e between t h e two d a t e s , so t h a t i f allowance i s made f o r t h e s e p r i c e changes the a c t u a l volume of goods would p r o b a b l y be i n e x c e s s of t h a t s o l d a y e a r ago. In the s e v e r a l D i s t r i c t s , d e c r e a s e s from September, 1920, a r e shorn amounting t o 9.9 P e r c e n t i n D i s t r i c t No. 1 ( B o s t o n ) , g.O p e r c e n t i n D i s t r i c t , No. 2 ' (New York), 15.3 p e r c e n t i n D i s t r i c t No. 3 ( P h i l a d e l p h i a ) , 2 3 . 6 p e r c e n t i n D i s t r i c t No. 4 ( C l e v e l a n d ) 1 6 . 2 p e r c e n t in D i s t r i c t No. 5 (Richmond), 22.9 p e r c e n t i n D i s t r i c t No. 6 ( A t l a n t a ) , 15.3 p e r c e n t i n D i s t r i c t No. 7 (Chicago), 1 8 . 2 p e r c e n t i n D i s t r i c t No. 8 ( S t . L o u i s ) , 17.8 p e r c e n t i n D i s t r i c t No. 9 ( M i n n e a p o l i s ) , 1 3 . 8 p e r c e n t i n D i s t r i c t No. 10 (Kansas C i t y ) , 22.7 p e r c e n t i n D i s t r i c t No, 11 ( D a l l a s ) , and 8 . 7 p e r c e n t i n D i s t r i c t No. 12 (San F r a n cisco). ' s 11.33 - 34 . Although s t o c k s which the department s t o r e s have on hand a r e lower than they were l a s t y e a r , they showed a c o n s i d e r a b l e i n c r e a s e d u r i n g t h e month of September. This would seem to i n d i c a t e t h a t r e t a i l e r s a r e d i s p l a y i n g g r e a t e r c o n f i d e n c e i n the s t a b i l i t y of p r i c e s and t h e r e f o r e g r a d u a l l y i n c r e a s i n g stocks froir the low p o i n t reached l a s t s p r i n g . The r a t e of t u r n o v e r c o n t i n u e s approximately the saire, and t h i s i s t r u e l i k e w i s e of o u t s t a n d i n g o r d e r s . "PRICES, During the f i r s t t h r e e weeks of October p r i c e s of l e a d i n g farm p r o d u c t s d e c l i n e d from t h e September average e x c e p t i n t h e c a s e of c e r t a i n c l a s s e s of l i v e s t o c k such as c a t t l e and sheep. Wheat, o a t s , c o m , c o t t o n , and hogs were a l l a p p r e c i a b l y lower a t the l a t e r d a t e . In the metal i n d u s t r i e s , on the o t h e r h a n d , p r i c e s were r e l a t i v e l y s t a b l e , t h e non f e r r o u s m e t a l s showing i n c r e a s e s , and s t e e l p r o d u c t s showing v e r y l i t t l e change. Spot p r i c e s of bituminous c o a l were about the same i n the two months. P r i c e s i n t h e l e a t h e r i n d u s t r y were p r a c t i c a l l y t h e same i n October as i n September a l t h o u g h t h e raw m a t e r i a l advanced. Cotton y a r n s and c l o t h a l s o i n c r e a s e d and wool m a n u f a c t u r e s were f i r m # ; The w h o l e s a l e p r i c e indexes of both the Bureau of Labor S t a t i s t i c s and of the F e d e r a l Reserve "Board showed no change between August and September f o r a l l commodities, b u t t h e r e were wide f l u c t u a t i o n s b o t h u p and down in the p r i c e s of i n d i v i d u a l commodities. Raw m a t e r i a l s a s a whole advanced, i n s p i t e of t h e d e c l i n e in l i v e s t o c k p r i c e s . Consumers' goods, on t h e o t h e r hand, d e c l i n e d , the r e d u c t i o n i n food p r i c e s b e i n g most i m p o r t a n t . goods showed very l i t t l e change. "Producers' I n the c l a s s i f i c a t i o n of t h e commodities i n the F e d e r a l Reserve Board index a s (1) goods of domestic p r o d u c t i o n , (2) goods imported and ( 3 ) goods e x p o r t e d , i t a p p e a r s t h a t goods of domestic o r i g i n averaged the same i n the two months, p r i c e s of imported goods were -35- X-3235 s l i g h t l y h i g h e r in September t h a n in August, w h i l e p r i c e s of e x p o r t e d commodities were r a d i c a l l y h i g h e r , due t o t h e advance i n the p r i c e of raw cot ton. A survey of the c o s t of l i v i n g In 32 c i t i e s i n the United S t a t e s made by the Bureau of Labor S t a t i s t i c s f o r September shews than between June, 1920, and September, 1921, t h e r e had been a decrease of 18 p e r c e n t on an average. Most of t b f e decrease occurred p r i o r t o .May, 1921, however, the d e c r e a s e since t h a t time amounting t o o n l y 1 . 7 p e r c e n t . Be t a i l p r i c e s of food i n the one month of September showed a small d e c r e a s e , t h e index of the Bureau of Labor S t a t i s t i c s moving from 155 i n August to 155 i n September. SHIPPING. F u r t h e r r e d u c t i o n s i n ocean f r e i g h t r a t e s took p l a c e i n October, thus b r i n g i n g r a t e s on the p r i n c i p a l commodities more g e n e r a l l y i n t o l i n e w i t h t h e lower q u o t a t i o n s on g r a i n which were announced the l a s t week of September. The c h a r t e r market f o r f u l l cargo steamers c o n t i n u e s slow w i t h moderate r e c e s s i o n s from r a t e s p r e v i o u s l y quoted." From the s t a n d p o i n t of American steamship companies t h e u n p r o f i t a b l e n e s s of o p e r a t i n g v e s s e l s a t c u r r e n t r a t e s i s a c c e n t u a t e d by the d i f f i c u l t y i n a r r a n g i n g f o r inward cargoes on r e t u r n voyage. This s i t u a t i o n i s emphasized by the f i g u r e s r e c e n t l y made p u b l i c by t h e Shipping Board on the tonnage of American imports and e x p o r t s . For the f i s c a l y e a r ended June 30, 1921, e x p o r t s a r e given as 59»205,050 l o n g t o n s , while imports were l i t t l e more than h a l f as much, b e i n g r e p o r t e d a t only 36,879»532 long tons in the same months. FOREIGN TRADE. Both e x p o r t s and imports d e c l i n e d i n September, a f t e r t h e i n c r e a s e s recorded f o r August, t o about t h e l e v e l of J u l y . For s i m i l a r l y low jscnthly t o t a l s we :aust go back t o 1^15 and e a r l i e r . S p e c i f i c a l l y , e x p o r t s d u r i n g September were valued a t $3^5# 000,000 while i&ports t o t a l e d $180,000,000. The corresponding v a l u e s of e x p o r t s and imports a y e a r ago were $605,OCC,0G0 - 36 - x-3235 and $363,000»000 r e s p e c t i v e l y , although much of t h e s i g n i f i c a n c e i n such a comparison i s l o s t by r e a s o n of the p r i c e d e c l i n e s which have o c c u r r e d during t h e p a s t year* A t r u e r i d e a of the t r e n d of our f o r e i g n t r a d e from the s t a n d - p o i n t of the volume or q u a n t i t y of goods shipped i n and o u t i s a f f o r d e d by the B o a r d ' s f o r e i g n t r a d e index i n which the e f f e c t of p r i c e changes h a s been eliminated. The e x p o r t index s t a n d s a t 119»9 and the import index a t 11*4.6 f o r September, compared r e s p e c t i v e l y w i t h 8 8 . 6 and 129 a y e a r ago. I t is e v i d e n t t h a t average p r i c e s or v a l u a t i o n s of t h e v a r i o u s commodities mast have a l t e r e d r a d i c a l l y / a n ^ q u a ! o r g r e a t e r q u a n t i t y of goods t h i s y e a r of only m e - h a l f the v a l u e r e p o r t e d f o r t h e same month l a s t y e a r . These f a c t s a r e borne out a l s o by a d e t a i l e d c o n s i d e r a t i o n of t h e average v a l u a t i o n of i n d i v i d u a l commodities, p u b l i s h e d by the Department of Commerce, which show i n many c a s e s p r i c e r e d u c t i o n s d u r i n g t h i s p e r i o d of 50 p e r c e n t and more. v h e n t h e s e f a c t o r s a r e taken i n t o c o n s i d e r a t i o n , the f o r e i g n t r a d e t o t a l s r e p o r t e d f o r r e c e n t months assume a l e s s s e r i o u s a s p e c t and i n d i c a t e r a t h e r the resumption and continuance of b u s i n e s s a t a lower l e v e l of p r i c e s .