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F E D E R A L
R E S E R V E
B O / R D
STATEMENT FOR THE PRESS
X-3369
For release in Morning Papers,
Saturday, April 1, 1922,
The following is a review of general "business and
financial conditions throughout the several Federal
Reserve Districts during the month of March, as
contained in the forthcoming issue of the Federal
Reserve Bulletin.
The outstanding feature in business development during the
past few weeks has been the improvement in basic industries, including steel, especially railway equipment, copper, and other metals,
A marked increase in the production of automobiles has also been a
feature of the month.
Building activity which has been on the up-
grade for several months past, continues its growth, February permits
being about 40 per cent in excess of those of February, 1921, while
the advance is still continuing.
Ag against this favorable trend in the physical volume of
production in basic lines is the fact that a variety of conditions
have operated to offset the encouraging improvement which has been
noted in textiles during the winter months.
Prominent among these
unfavorable influences is the disturbed relations with labor, but uncertainty as to cost of production and lack of forward orders have
produced a depressing effect in those districts where no labor troubles
have made themselves felt,
No important changes have been observed
in other manufacturing lines, such as leather, boots and shoes.
X-3369
-
2 -
Agriculturally, the month has been one of favorable development
considering the
season.
Winter wheat prospects are re-*
ported good in most parts of the country,
Cotton planting indicates
increased acreage although a heavy infestation of boll wesvil is
predicted.
tions.
A larger use of fertilizer is also reported in some sec-
Prospects for deciduous fruits are reported encouraging.
Labor conditions in the agricultural regions are regarded as satisfactory.
/ material increase in the demand for labor, largely the
natural seasonal growth, is reported from most districts.
According to official figures, marke.d, even if still limited, decrease in unemployment is under way.
This is partly due to the
greater activity of basic industries already referred to, and partly
to seasonal growth of demand for labor, but offsetting it must be mentioned the voluntary unemployment growing out of strike conditions,
both present and prospective.
In trade, both retail and wholesale, the tendency has been, on th
whols, downward, although not pronouncedly so.
In certain Districts
seasonal activity has resulted in an absolute increase in particular
lines of wholesale trade, as, for exanple, in the case of shoes and
dry goods.
Retail trade, on the other hand, is uniformly lower than
it was a month ago or than it was at this time last year.
This is in
a large measure due to postponement of buying resulting from the lateness of the season but is also in part due to a longer continuance of
unemployment.
X-3369
- 3 The movement of commodities to market during the month has "been very
satisfactory. Increase in car loadings has been noticeable in many parts
of the country.
Grain shipments during February have been larger than in
any month since October, 1921. A satisfactory movement of livestock and
meat products is also reported..Better earnings of railroads demonstrate
the growth in freight tonnage which has bee# a striking feature of recent
weeks.
The advance in the index number of wholesale prices shewn by the
Federal Reserve Board's compilation amounts to 4 points for the month.
This change is largely due to the advance in the prices of agricultural
products.
In wholesale
lines some declines have taken place but prices
have been tolerably firm, although where they have been so, restriction
of the activity of trade has .bean a feature.
The process of evening
up prices through interindustrial adjustments is still incomplete.
Financially the month has shown but little change.
Discount and in-
terest rates have not moved materially. Foreign trade shows a somewhat further decline with a much closer approach to adjustment of export and iirport
figures both hare and abroad. Increasing stability in foreign exchanges,
with the exception of marks, has been the rule. Further liquidation of
"frozen" loans in the West and South has been effected and raports from
these parts of the country show tnat a satisfactory line oi credit is being extended for the planting of new crops.
Increasing specie reserves
and declining portfolios in Federal Reserve Banks show that there has been
no increase in the demand brought to bear by member banks for commercial
accommodation.
-4AGRICULTURE.
X-33&9
The quantity of grain stored on the
farms an
March 1, 1922, was considerably smaller than on March 1, 1921. Stocks
of oats have registered the greatest reduction and are 4l per cent
less than a year ago, while stocks of wheat are 40 per cent less,
stecks of barley 37 P e r cent less and stocks of corn 16 per cent less.
The•condition of winter wheat has shown marked improvement during
March.
District No, 10 (Kansas City) reports that the wheat plant is
making a very favorable showing in the eastern and southern parts of
Kansas, and that recent rains and snows in Oklahoma have greatly aided
the crop.
The drought has been broken in the Texas Panhandle, accord-
ing to District No. 11 (Dallas), and that section now has the brightest
crop outlook in many years.
Reports also indicate that the condition
of winter wheat is good in District No. 8 (St. Louis), but severe
sleet and ice storms
have caused considerable damage to winter grains
in District No. 7 (Chicago).
District No, 9 (Minneapolis) states that
winter wheat is in splendid condition, as it has been well protected
by snow.
Plowing and preparation of soil for corn is now in progress
in most of the southern states and seeding of oats is under way in
Missouri, Kansas and Oklahoma.
Planting of sugar cane in Louisiana has
been hampered by wet and cold weather, but the cane already planted is
reported to have escaped damage.
COTTON.
The final ginning report on the 1921 cotton crop showed
total ginnings of 7,97&,&^5 running bales.
The price of middling up-
land cotton at New Orleans on March 15 was 16.75 cents, which is the
same price as prevailed on February 15.
There is a general tendency
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•
X-3369
throughout the cotton belt to hasten planting of the new crop, as an
early start helps to minimize the depredation jof the boll weevil.
District No. 11 (Dallas) reports some increa?^ in cotton acreage this
year, and states that timely rains have put the soil in a condition
which should be conducive to the quick germination and growth of the
plant.
Reports from District No, 6 (Atlanta) indicate an increased
acreage and a tendency to use- fertilizers.
In District No. 5
(Richmond) rain and snow have delayed spring planting, while the
generally mild winter has permitted the hibernating of a large number
of boll weevils.
TOBACCO.
Virginia tobacco sales in February and early March
were comparatively small and prices generally low, due to the fact that
the Jiulk of the offerings were barn scrapings and low grades sold to
wind up the season's crop.
Sales of bright tobacco in Virginia to
March 1st were 60 per cent and of dark tobacco 85 per cent of those in
1$20-21.
Prices realized for the former averaged lower this season
than a year ago, but dark tobacco brought higher average prices. Leaf
dealers report improved foreign demand.
In Kentucky, the Burley
Tobacco Growers Cooperative Association, it is reported, has continued
to operate in a very satisfactory manner.
crop is not heavy.
It is now evident that the
A large part has been delivered to the Association
and already sold, although some is in storage.
satisfactory.
Prices have been very
A plan is now being inaugurated to organize am associa-
tion in the dark districts of western Kentucky, and is expected to be
completed for handling the lg22 crop.
District Nc. 3 (Philadelphia) reports no evidence of the improved
demand for cigars usually expected at this time of the year, and the
X-3369
-6-
demand is still very uncertain and irregular.
/Ithough dealers' stocks
are low, they are buying only goods they absolutely need,
January
sales of revenue stamp3 for cigars were less than in any month within
the past three years.
FRUIT.
Movement of citrus fruit to market from California and
Florida showed some decline during February.
Growers belonging to the
California Fruit Growers Exchange received an average price (f.o.b.
California) of $3*39 per box for oranges and $3-93 P e r box for lemons
in February, as compared with $2,15 P e * box for oranges and $2.03 P 0 r
box for lemons in February, 1921.
Tho market for Florida oranges is
also very strong and substantial premiums are paid for standard sizes.
Prospects for deciduous fruits are thus far excellent, but it
must be remembered that there is still danger of frost damage in many
parts of the country.
District No. 10 (Kansas City) states that the
outlook of orchard fruit is very favorable, although there has been
some winter killing of peach trees.
Orchards are in bloom in most
sections of District No. 11 (Dallas) and promise large yields unless
damaged by late frosts.
District No. 8 (St. Louis) reports increased
strawberry crops in Arkansas and Mississippi, and a more careful and
scientific treatment of fruit orchards.
Shipments of apples from
District So. 12 (San Francisco) amounted to 47,335 carloads up to March
4, 1922, as compared with 29,12$ carloads shipped in the corresponding
period of the previous crop year.
District No. 12 (San Francisco) reports heavy exports of both
dried and canned fruits in recent months.
Only 8,511,851 cases, or about
15 per cent, of the 1921 pack of California remains in the hands of canners
-7-
X-33b9
and both foreign and domestic demand is increasing.
Prices for canned
apricots, peaches, pears, and cherries have all advanced since the
beginning of the season, but are considerably lower than at this date
last year,
GR£J.N MOVEMENTS-Receipts of grain at 17 interior centers were
larger in February than in any month since October and exceeded January
receipts by 7«5 p®r cent.
Corn receipts at these 1 7 centers were larger
than in any month during the past two years, due to heavy increases at
Chicago, Indianapolis, Kansas City and Peoria,
Wheat receipts were 18.5
per cent larger than in January, and showed particularly large gains at
Kansas City, Chicago, and Omaha.
Receipts of oats, rye, and barley
also increased at interior centers, while there was a slight drop in
the receipts of flour.
Grain receipts at nine seaboard centers were
slightly larger in February than in January due to the heavy movement
of com, although the receipts of wheat, rye, and barley declined.
Stock* of grain increase^ at both interior and seaboard centers. Stocks
of corn were much augmented at all reporting centers, whereas stocks of
wheat, oats, and barley were somewhat diminished.
FLOUR. February production of flour in most Districts showed an
increase over both January, 1922, and February, 1$21.
In District No, 9
(Minneapolis) the reported February, 1922, production was 1,802,781
barrels, as compared with 1,935,75^ barrels for January and 1,839,799
barrels for February, 1921.
Eleven leading mills in District No, 8
(St. Louis) reported a decrease of 8 3 , b a r r e l s from the January, 1922
output, but an increase of 1,872 barrels over the February, 1921 production.
In District No. 7 (Chicago) on the other hand, a comparison of February,
1922, figures with January, 1922, and February, 1921, showed increases of
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X-3369
1 9 . 5 per cent and 40 per cent respectively.
District No. 1 0 (Kansas City)
reports that 80 mills produced 1,498, 813 barrels during February, 1922,
an increase of 356/5^3 barrels, or 31*2 per cent over the production of
84 mills reporting in February, 1921.
Reports from District No. 12
(San Francisco) showed an increase from 711,292 barrels produced by
57 mills in January to 745,650 barrels produced by 64 mills in February,
Toward the end of February, prices were higher in District No. 7
(Chicago) in response to the higher price of wheat.
however, the demand subsided-
After March 1,
District No. 10 (Kansas City) likewise
states that there was a drop in sales at the beginning of March.
Throughout the period there has been a good export demand while buying
for domestic consumption continues to be for immediate needs only.
LIVESTOCK. Receipts of cattle and calves at 15 western markets
during February were 1,345,487 head as compared with 1,128,020 head
during January and 835,686 head during February, 1921.
Receipts of
hogs decreased from 2,882,551 head in January to 2,530,092 head in
February, which was 372,015 head less than a year ago.
February receipts
of sheep were 913,642 head, as compared with 1,101,679 head in January
and 972,647 in February, 1921.
District No. 10 (Kansas City) remarks
that February was notable for the number of stackers and feeders sent to
the country.
On account of low temperature in some parts of District
No. 12 (San Francisco) and the consequent backwardness of pasture lands,
California grass fed cattle are expected to come to the market in May,
a month later than usual.
At present the livestock in the District is
reported to be in favorable condition.
Returns from 35 packers show an increase of 1.8 per cent in average
weekly sales in February over those of January, 1922 and 3^ show a decrease
-9of 14.2 per cent as compared with a year ago.
x
-33&9
Higher prices in February
were a factor in the increase of dollar sales over those for January.
Domestic trade in fresh and cured meat8 during the early part of March
was rather slow on account of the lenten period, reports District No. 7
(Chicago),
Export demand for meats and provisions fell off during the
first part of March.
COPI.. Production of bituminous coal showed an increase of 9 P 6 r
cent over January and 33 per cent over February last year.
The output
for the month was 40,951,000 tons, @n average of 1,706,000 tons per
working day, which is the
1913.
highest rate of production for February since
Production for the coal year to March 4th was 39^/ 9^5, 000 tons
compared with 496,639,000 tons for the previous coal year to March 4,
1921.
Stocks in the hands of consumers on January 1st amounted to
47,500,000 tons and. there were 7,200,000 tons at the lake docks. Demand
has suffered a general falling off, except in District No. 4 (Cleveland).
The decrease in general is attributed to the uncertainty as to prices
after JSpril 1st, and to the fact that railroad and public utilities have
accumulated large stocks and are no longer increasing their reserves.
Production of anthracite coal for the month was 6, 7o2,0C0 tons, an
increase of 8 per cent over January and a decrease of 12 per cent compared with February last year.
Demand for both domestic sizes and steam
coal is governed by seasonal influences and purchases are sufficient to
cover only immediate needs-
Although certain large users have stored
coal in anticipation of a strike, in the main, consumers do not seem
concerned with the fear of a shortage, and retail dealers and domestic
consumers alike appear to be. desirous of entering the new coal year
-10with minimum stocks.
X-33b9
Consequently producers have been compelled to store
a large proportion of their output and their reserves are heaVy.
Some
retail dealers have endeavored to stimulate demand by shading prices, but
the practice has not been general- production of beehive ccxe for February
amounted to 53^*000 tons,an increase of 8.5 P e r cent over January. Consultation and prices are bet car than last month, a reflection of increased
iron c.r..l 6t33l operations. Stocks at by-product plants now amount to
more than 1, 000,000 tons.
PETROLEUM. Reports from all the more important oil fields indicate
an increased output of crude oil during February.
Due to this increased
production and the lessened demand, it is estimated that stocks increased
over 8,000,000 barrels during February.
District No. 10 (Kansas City)
states that during February 4j}0 wells were completed as compared with
U95 in January and 771 in February 1921.
The average flow per completed
well was 156 barrels as compared with 149 barrels in January and 85
barrels in February a year ago.
Gross production during February in
Kansas, Oklahoma, Wyoming, and Colorado totaled 13,141,692 barrels for
the twenty-eight days of the month as compared with 14,375^000 barrels
in January and 11,$03,000 barrels in the corresponding month last year.
Reports from District No. 11 (Dallas) show a daily average production of 4$1,404 barrels as compared with 481,165 barrels during
January.
The north Texas field and the Mexia field were considerably
hampered by weather conditions.
In this District 223 producing wells
were completed with an initial flow of 258,135 barrels.
The total pro-
duction for the District was 13;759*335 barrels as compared with 14,916,130
barrels in January. District No. 12 (San Francisco) also reported an increased average daily production during February.
The stored stocks in
that District stood-at 36,701,810 barrels on March 1 as compared with
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X-3369
22,903^39 barrels on the corresponding date a year ago.
Forty-one new
producing wells were completed during February, as compared with 52 wells
in January.
District No. 11 (Dallas) reporte a slight weakness in crude oil
prices during the month.
Corsicana heavy decreased from 95 cents per
barrel to 75 cents per barrel.
However, the prices posted at the various
fields are now equal to, or higher than, those posted at this time a year
ago.
IRON AND STEEL.
Further improvement in the iron and steel industry
occurred during February although there was some recession in activity early
in March.
District No, 3 (Philadelphia) reported that plants in that section
received less business than those located in other parts of the country and
were operating at about 45 per cent of capacity as compared with a rate of
6 0 to 6 5 per cent elsewhere.
Daily iron production in February averaged
58,214 tons as compared with 53*063 tons in January.
The output of steel
ingots advanced, the net gain amounting to 148,863 tons according to the
American Iron and Steel Institute.
Unfilled orders of the United States
Steel Corporation receded to 4,141,C69 tons at the end of February, the
lowest total since December 1914.
The decrease of over 100,000 tons as
compared with unfilled orders at the end of January is, however, largely
attributable to the increased activity that prevailed in the steel mills
during February.
Demand from automobile manufacturers is better and con-
siderable buying is being done by the railroads. Prices of some products
such as plates, bars and shapes advanced in March and that is true also of
some grades of pig iron. Nevertheless, the upward movement is by no
means general and as a matter of fact declines have occured in certain
grades of pig iron, while the average of steel prices shewn by the composite figure compiled by the Iron Age for March 7 was below the average
of the same date a month ago.
—
AUTOMOBILES,
X-3369
12 —
District No. 7 (Chicago) reports increased,
activity in "both production and shipment of automobiles during
February.
Manufacturers who reported 81,47 4 passenger cars
built in January, show an output of 107,626 cars during February
or an increase of }2-l per cent over January.
Truck production
of companies reporting 8,8)2 trucks built in January, was 12,443 during
February, or an increase of 40-9 P e r cent.
Production is also in-
creasing in District No. 4 (Cleveland) but buyers are not purchasing
for stock but against sales.
There has been an improvement in
the automobile body business in that section although automobile
axle business is probably not in exces's of a year ago.
NONFEKRQUS METALS-
Due to the announcement that a number of
copper mines were to reopen, the demand for the metal slackened in
Feb ruery.
On March 15, however, the price of copper (New York, net
refinery) was 12-75 c@#ts per pound as compared with 12.$0 cents
on March 1-
The export demand lately has taken so much copper off
the market that producers generally have not cared to attract domestic
trade by price cutting.
Copper production in February amounted to
37,415,808 pounds as compared with 25,848,284 pounds in January, but
was less than 50 per cent of the amount produced during February, 1921.
District No. 10 (Kansas City) reports declines in both shipments and
prices of zinc ores from the January record for the Missouri-KansasOklahoma zinc and lead mines, the total shipments of zinc ore being
27,043 tonR as against 28,431 tons during January.
Shipment of lead
ores showed a material increase over January and over February a year
X-3369
- 1 3 ago.
Production conditions gradually improved during the month
in this District.
Both lead ores and mine ores registered a notable
increase in price during February.
Stocks of zinc on hand at the
end of February were 64,124 tons as compared with 65,678 tens at
the end of January.
The total production of zinc was 22,513 tons
in February as compared with 23,706 tons in January.
Conditions
industries in
in the gold, silver, lead and zincraining/DistrictNo. 12 (San
Francisco) continued to improve slowly during February.
COTTON TEXTIIES.
The reduced rate of activity in the cotton
textile industry which was reported a month ago, subsequently became
even more pronounced.
The extensive strikes in certain sections
of New England have not stimulated activity in other parts of the
country, and cotton consumption drorped from 526,562- bales in January
to 473.073 bales during the month of February.
In New Hampshire
and Rhode Island, the reduction in the amount of cotton consumed
amounted to 45 and 26 per cent, respectively, although the full
effects of the strike were not felt until the middle of February.
Mill operations increased slightly in Connecticut and Vermont
but were substantially unchanged in Maine and showed a slight
loss in Massachusetts-
The cotton goods market in District No. 1
(Boston) was reported to be dull during the first three weeks of
March and print cloths sold lower than at any time since the beginning of* the year.
The southern mills were also feeling the
influence of lessened demand and District No. 5 (Richmond) reported
the industry to be " largely on a hand to mouth basis" .
In Dis-
trict No. 6 (Atlanta) production in both cloth and y a m mills de-
X-3369
- 14-
creased according to the reports received from representative
mills located in thet section.
Forty-one cloth mills showed
a reduction in the yardage output during February of 3-6 per cent
as compared with January, tut an increase of 42.2 per cent as compared
with a year ago.
Shipments increased 1.8 per cent as compared
with January and 72.5 per cent as compared with February, 1921.
Orders on tend at the end of the month were 4.J per cent below
those on hand at the end of the preceding month but were 53*3
per cent above those on hand a year ago.
The reduction in
the output of 38 y a m mills amounted to 1J-6 per cent during
the month as compared with January but was nevertheless 33*8 per
cent above the output for February, 1921.
Y a m shipments fell
9,7 per cent but were 35*6 per cent greater than a year ago. Orders on hand at the end of the month dropped 15 <5 P e r cent as
coirpared with January and were 13-S per cent above the amount
outstanding at the end of February, 1921.
WOOLEN TFXTILES.
Activity in woolen textiles showed a slight
improvement during February, according to the statistics of active
and idle machinery and percentages of idle hours reported by the
Bureau of the Census.
The percentages of idle looms to total
reported fell in all cases-
For looms wider than 50" reed space
the percentage of idle machinery on March 1 was 3^*5 as compared
with 34.3 at the beginning of February.
The corresponding
percentages for looms 50" reed space or less were 27-1 and 27.2
respectively.
There was a reduction in the percentage of idle
X-3369
- 15carpet and. rug looms from 22.4 to 21.2.
The percentage of
idle woolen spindles fell from 27-0 to 20.1 and that of worsted
spindles rose from 14.3 to 14.4.
The percentages
of idle
hours to tq|al reported were also less in the case of weaving
machinery* the figures for looms wider than 50" reed space
being 3^*1 per cent on March 1 as compared with 35*2 per cent
at the "beginning of February.
The corresponding figures for
looms 50" reed space or less were 31-9 P e r cent and 32-0 per
cent.
The percentages of idle hours for carpet and rug
looms was reduced to 23-1 from 23 • 9 for the preceding month.
Percentages of idle spindle hours fell in the case of woolen
spindles from 25.4 at the beginning of February to 18-4 on
March 1, while in the case of worsted spindles they rose from
13-9 at the beginning of February to 17*3 on March 1.
' Notwithstanding the somewhat better showing for February,
reports from various Districts indicate that the situation is
not so favorable as it was at the beginning of the year^
Dis-
trict No. 1 (Boston) says thet woolen and worsted tnilljgj|iri that
section, particularly in Rhode Island, are gradu&lly curtailing
production. The goods market is stated to be dull, especially
in the case of men's wear, and worsteds are not selling as
well as woolens.
In District No. 3 (Philadelphia), a few
firms report ne fairly well maintained volume of business"
but in the majority of cases orders are small and merely to
fill in.
Cancellations, moreover, have increased greatly
X--3369
- 3.6 during the past two weeks -
Production has "been curtailed
and in some cases plants manufacturing men's wear have been
closed down entirely, while manufacturers of women's wear
are operating at a much reduced rate.
District No. 3
(Philadelphia) reports no particular change in the woolen
and worsted y a m situation.
Yarn mills are averaging about
85 per cent of operating capacity, but are working almost
entirely on contracts placed some time ago.
Both in Boston
and Philadelphia markets the demand for raw wool has decreased and Boston reports that "prices have shown a slight sagging
tendency", although on the whole it seems that the market
h*s held fairly firm and sellers - re not disposed to make
concessions CLOTHING.
The s?les of ten wholesale clothing firms
located in District No. 2 (New York) showed an increase of
3 per cent as compared with January.
The 23
reporting
firms located in District No. 8 (St. Louis) also recorded
a fair increase in February sales-
Forward orders were
stated to be somewhat better than in recent months although
smaller than in former years-
Seven wholesale manufacturers
of men's clothing in District No. 7 (Chicago) have about con>
pleted orders for the spring season end it appears that the
"increase in the volume of such orders over those of last
year is not so large as the earlier activity seemed to promise" .
Latest returns show this increase to be about 26
per cent for the season to date.
Eleven tailors-to-the-
X-3369
- 17
trade report orders for suits, received during February to be
61.4 per cent in excess of orders for the preceding month
while the number cf suits m^de increased
per cent as
compared with January.
SILK TEXTILES.
The persistence of unsatisfactory condi-
tions in the market for raw silk continues to be the chief
obstacle to the resumption of activity in the silk manufacture.
Buying on the part of jobbers is in limited quantities and only
to satisfy the needs of the moment.
low rate and stocks are accumulating.
production is at a very
The latest reports re-
ceived from Paters on and North Hudson for March 11 show recessions in activity as compared with a month ago.
In Eater-
son only 3,299 looms out of a total of 15,000#%re active as
compared with 3,653 a month ago, and the percentage of operating loom hours to totsl available bad fallen to 22.28 as compared,
with 23.02 on February 11.
In North Hudson the percentage
of operating loom hours to total reporting was 57-33 as connpared with 57*48 a month ago.
Active looms amounted to
2,468 out of a total covered of 4,l6l as compared with 2,456
a month ago.
#0
HOSIERY.
In District No. 3 (Philadelphia) sales of silk
hosiery have increased and it is reported that some orders for
full-fashioned hosiery are being placed for delivery as far
ahead as June, although many call for prompt shipment.
In
seamless hosiery, both silk and artificial silk, few orders
-
X-3369
18-
are being received except for early delivery.
The returns made
to the Federal Reserve Bank of Philadelphia by 28 firms selling
to the wholesale trade do not, ho/ever, indicate any improvement
in February as compared .vith the preceding month, as both
production figures and unfilled orders on hand at the end of
the month showed a decline, output being 3.1 per cent below
thet of January (in dozens of pairs) while unfilled orders on
hand were 17.2 per cent lower.
But in the esse of nine firms
selling to the retail trade a slight increase of 1.8 per cent
in output was recorded, and unfilled orders at the end of the
month were 18.2 per cent larger.
Output and orders were in
all cases much above a year ago.
The increase in output aver-
aged over 85 per cent for both classes of firms, while the unfilled orders were 148.8 per cent greater in the case of the
firms selling to the wholesale trade and 45-7 per cent larger in
the case of firms selling to the retail^rade.
In District No.
6 (-Atlanta) the plants manufacturing cotton hosiery booked
about the same amount of orders as were reported for the pre1
ceding month, but "the amount of hosiery manufactured by reporting mills was 5*6 per cent less, although 32• 5 PeI* cent
above the total manufactured in February 1921.
Unfilled
orders at the end of the month were 21 per cent below those
on hand at the end of January.
UNDER^R•
In February, 1922, reports were received
from 53 mills producing underwear as compared vith 55 in
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- 19 -
January, and 63 in February, 1921.
Actual production during
the month continued to show decided progress, as the amount
produced "by the 53 mills was greater than the totals reported
for January "by the 55 reporting mills, and much above the output for the same month in 1921.
A year ago the production
of 63 reporting mills amounted to only 248,431 dozens or 28.0
per cent of normal; in January, 1922, the production of 55 mills
stood at 640,489 dozens or 79"1 per cent of normal; while the
most recent figures from 53 mills place production at 663,346
dezens, or 84.1 per cent of normal.
Production in February
was almost evenly divided between winter and summer underwear,
the former amounting to 332,224 dozens, or 74-0 per cent of
normal, and the latter being 331,122 dozens, or 9"$.4 per cent
of normal.
Comparative reports received from 36 mills belonging to
the Association of Knit Goods Manufacturers of America show an
opposite trend from that displayed during the previous month in
all items except actual production.
New orders received during
the month declined 48-5 per cent from 764,944 dozens in January
to 393,585 dozens in February.
Shipments also declined during
the month, 442,194 dozens being shipped as compared with 531,789
dozens in January, a falling off of 16-8 per cent. Unfilled
orders rose slightly from 1,26l,601 dozens in January to 1,432,368
dozens in February, an increase of 13-5 per cent.
Cancellations
increased 51*7 P e r cent amounting to 10,968 dozens in February
-
dlQ
x-3369
—
as compared with 7,228 dozens in January.
Actual production
rose slightly from 493> 196 dozens in January to 507,022 dozens
in February, or 2.8 per cent.
SHOES ^HD LEATHER. Demand for hides and skins h^s continued
dull, although there vers some large sales of packer hides in
the second week of March.
Prices h^ve receded somewhat from
the February levels for packer hides, calf skins, and goat skins.
Reports from eight tanners in District No. 7 (Chicago) show
slightly larger sales for February than for January.
New orders
booked in March have been for low-grade leather or specialties.
In District No. 3 (Philadelphia)» sales of belting leather have
shown a mode re te increase, .vhile sales of sole leather and
upper leathers have decreased.
Demand for patent leather has
been iuite satisfactory,but business in both glazed kid and calf
leather has been poor.
February output of shoes is slightly smaller than that
of January for most Districts, but would show a slight increase , except in District No. 1 (Boston), if reduced to a
daily average basis•
Eight firms in District No. 1 (Boston)
report total shoe production in February 11-5 per cent less
than in January, but 60 per cent greater than in February, 1921,
Some New England factories which make novelties for the Easter
trade are still iuite active, but those producing staple goods
are experiencing a seasonal slackness.
Production of 47 con-
cerns in District No. 3 (Philadelphia) was 0.9 per cent greater
in February than in January, while shipments increased 15-7 per
X-3369
-*• 21 —
cent-
New orders, however, declined 1 3 . 7 per cent.
Large
orders hrve been booked for sport shoes and for white shoes,
but business of factories which make high grade shoes has
been disappointing.
Reports of 28 shoe manufacturers in
District No. 7 (Chicago) indicate that production in February
was 3-8 per cent less than in Janusry, while shipments increased 10.J P e r cent.
Unfilled orders of 22 manufacturers
were equal on the average to about five weeks" business at
the February rate.
Merchants are buying only in small quanti-
ties and there is an increasing tendency to cancel orders.
District No. 8 (St. Louis) states that February sales of 11
reporting interests ranged from 20 per cent less to 8 per
cent more than January gales.
The demand was centered on
low-priced staples, but considerable improvement was noted in
the call for novelty goods.
LUMBER•
The lumber situation continues to sho/v a slight
improvement, but the spring trade is very lets this year because
of the depression in agriculture, the continued high freight
rates, and the difficulty of adjusting costs cf production to
a lower basis.
Buying is as yet conservative and is only to
meet immediate needs-
However, reports from three lumber
associations in District Mo. 12 (San Francisco) show an increase in production, orders, and shipments compared with January and with a year ago.
Production of lumber for four weeks
ending February 25 was 3^7,678,000 feet, an increase of 6-1 per
X-3369
-
22
-
cent over the production of the preceding four weeks.
Orders
received totaled 355,758,000 feet, an increase of 3*5 per
cent over January and of 69-4 per cent over February, 1921.
Shipments from ths same mills increased from 3^5*249,000 feet
in January to 353'234,000 in February, and were "JO per cent
larger than in February last year.
Logging operators were
working at approximately Fo per cent of normal during February
compared with §0 per cent the month before.
Conditions in the lumber industry in District No. 6
(Atlanta) have continued to improve, in spite of unfavorable
we ether conditions. Orders and shipments for 112 mills in
February were 247,852,100 and 238,332,768 feet compared with
241,135404 and 224,732,954 feet for 108 mills in January. Of
73 reporting mills, 57 were operating full time and only three
were shut down.
Output of southern pine mills in District No.
11 (Dallas) decreased from 85,572,937 feet- for 41 mills during
January to 82,699,889 feet for 42 mills during February.
New
orders during the month amounted to 81,309,962 feet, compared
with 73,888,871 feet during January.
Despite the large in-
creases in shipments, the unfilled orders of 42 reporting mill
on February 28 totaled 51,070,461 as compared with 44,667,936
feet for 4l mills on January 31Lumber sales at retail in District No. 9 (Minneapolis)
X-3369
- 23 were 86-7 P e r cent of those a year ego.
February orders and
shipments of mills both showed a decrease as compared with
January,
District No. & (St. Louis) reports that the hard-
wood msrket following a month or six weeks of softening prices,
declined ^uite noticeably in early March.
BUILDING-
The valuation of building permits issued in
166 selected cities amounted to $l4l,715»2^3 in February as compared with $138, 631,902 in January and $96,023,474 in February,
1921.
The value of permits issued was greater during February
than during January in seven of the twelve Federal Reserve Districts - No. 1 (Boston), No. 2 (New York), No. 3 (Philadelphia),
No. 4 (Cleveland), No. 6 (Atlanta), No. 7 (Chicago), and No. 8
(St. Louis).
These increases varied in size from 0.5 P e r cent
for District No- 2 (New York) to 60 per cent for District No. 8
(St. Louis).
The remaining five|ffiistricts reported decreases
varying from 11 per cent for District No. 11 (Dallas) to 26 per
cent forDistrict No. 9 (Minneapolis).
The value of permits issued in February, 1922, was greater
than in February, 1 9 2 1 , in all of the Federal Reserve Districts,
except No. 7 (Chicago) and No. 9 (Minneapolis).
These increases
ranged frem 7 P e r cent for District No- 5 (Richmond) to 284 per
cent for District No. 3 (Philadelphia)-
The value of contracts
awarded in seven Federal Fteserve Districts (statistics of which
are compiled by the F. W. Dodge Conpany) increased from $150,164,153
in January to $161,220,750 in February.
Increases occurred in
-24-
X-33&9
Districts KG. 2 (New York), No. 5 (Richmond), No, 7 (Chicago) and
No. 9 (Minneapolis), while contracts in Districts No. 1 (Boston),
No. 3 (Philadelphia)^ and No. 4 (Cleveland) showed slight declines,
•The value of contracts awarded for residential purposes in seven
Districts increased from $71,223,*b75 in January to $71,680,853
in February.
Reports from District No. 1 (Boston) indicate that residential building comprises a smaller proportion of the total
construction than in last summer and autumn.
District No. 3
(Philadelphia) states that the prevailing building activity is
the most promising element in the business situation, and that
this activity is largely confined to the construction of small
homes and inexpensive apartment houses.
District No, 5 (Richmond)
reports that the construction outlook is bright, and considerable
supplies of materials and loanable funds are available.
Reports
from District No. 6 (Atlanta) indicate that the housing shortage has
been relieved to a great extent,
District No. 8 (St• Louis) reports
that residential construction is proceeding on a larger scale than
at any time since the beginning of the war, while municipalities
are starting many important building; projects.
M
X-3369
-25-
With, tne exception of tne Sew England district, in which
large numbers of employees in tne cotton mills of Now Hampshire and Rhode
Island and, to a lesser extent Massachusetts, are out on strike, tne
reports concerning the employment situation are distinctly encouraging- The
United States Employment Service snowed a slight increase of 8,894 {.37 per
cent) in numbers of workers employed by 1,428 reporting firms.
Losses
occurred only in textiles end in paper and printing, the former industry
accounting for 19,152 of the total decrease of 19,237.
In tne State of
New York there was an increase of 3 per cent in the number of factory workers
between January 15 and February 15, which was the largest monthly gain reported since September.
In District No. 3 (Philadelphia) an improvement
likewise occurred, as between February 14 and March 15 there was a decrease
of 7 per cent in the number of unemployed in the six cities of Altoona,
Earrisburg, Johnstown, Philadelphia, Scranton and Williamsport.
The
questionnaire based on returns from 236 firms reporting directly to the
Federal Reserve Bank of Chicago showed tn&t the number employed on February
38 nad increased 1.1 p^r cent as compared with the preceding month, the
total number employed at tne later date being 131,609.
In District No. 9
(Minneapolis) it was stated tnat winter unemployment had passad its peak
and that the demand for farm labor and for building workers was expected to
strengthen considerably during the coming month. In Montana considerable
copper
improvement had been noted in
and zinc mining and in the lumber camps.
The Anaconda mines reopened during the past month.
District No. 10 (Kanaas
City) also reports increased activity in outdoor work and the reopening
of a number of industrial plants.
In the lead and zinc mining fields of
Kansas, Missouri and Oklahoma, the situation was better than during the
X-3369
— 26 —
preceding months, although there was little change in the Rocky Mountain'
mining districts.
District No. 12 (San Francisco) reports "Steadily in-
creasing activity of the lumber mills, the near approach of the Alaska
fishing season, and the beginning of railroad and highway construction
work" as having resulted in "a steady diminution of unemployment there
during the month".
Reports from the ten principal lumbering districts
show that 60,697 loggers and lumbermen were on the payrolls on February 15
as compared with 54,350 men a year ago.
WHOLESALE TRADE:
Percentage of increase (or decrease) in net sales in
February 1522 as compared with the preceding month
(January 1922)
Groceries
3ry Goods
Number
Number
Disof Firms ;
of Firms
trict : PerReport- :Per
Reportcentage
NO*
:centage ing
-6.0
2
41
0.2
3
3
-1.4
50
-5.1
14
4
-4.4
25
7.1
11
5
-0.3
48
-2. 1
16
6
—0. 2
31
13.4
IS
7
-3.4
24
—12. 9
10
9
-1.7
14
-22.9
4
10
2. 6
9
0. 2
6
6.4
11
11
19.7
12
12
-14. 2
31
-4.5
12
:
Hardware
Boots & Shoes
Number
:
Number
of Firms
of Firms:Per
Report*^,:Per
Report:centage ing
:centage ing
-3. 0
11
8
-2.0
0.2
25
9. 5
.12
-17.6
18
25.2 18
-12.4
21
19.1
8
6.7
15
8
15.0
0.5
14
7.2
3
17.1
9
-3.1
12
-5.5
21
0.3 13
;
;
Percentage of increase (or decrease) in net sales in
February 1922 as compared with February 1921
2
3
4
5
6
7
9
10
11
12
*-—6.0
-12.7
-20.7
-12.0
-18.9
-13.1
-13.4
7.3
-16.8
-17.8
41
• 50
25
48
31
24
14
9
11
31
-7. 0
-5. 5
1.3
-17.4
-13.7
10.7
-10.3
4.0
-11.7
-1.3
3
14
11
16
19
10
4
6
12
12
-20.0
-16.6
-18.1
-1.7.1
-14.8
-13.0
-30. 0
12.7
-24.2
1.1
11
25
12
18
21
15
14
9
12
21
—20. 0
8
19.7
—0.1
-11.9
83.1
18
8
8
3
-4. 5 13
X-3369
"i
'
- 27 It is evident from the above table that sales of the four principal
wholesale lines for which returns are included compare favorably with a
•year ago.
But the seasonal increases
that might be expected at this
time are not generally in evidence except in the case of boots and shoes.
Dry goods sales in District No. 6 (Atlanta) and District No. 11 (Dallas)
however, reflect the opening up of spring buying although in neither District
did the increase come op to expectations.
District No. 6 (Atlanta) mentioned
the bad weather as having had a deterrent effect upon sales.
The late date
at which "Easter comes, together with the very conservative policy pursued
by retailers in placing
examining sales figures.
forward orders are factors to be considered in
It is also necessary to keep in mind that February
had 4 per cent fewer business days than January.
RETAIL TRADE'
Dollar values of retail sales continued to decrease during
February as compared with those of January.
This appears to be due to the
shorter month, and to the large reduction in prices offered in the special
sales in order to move winter goods preparatory to the spring season.
likewise
Sales
showed a decrease as compared with last February, undoubtedly be-
cause of the severe
weather and lateness of Easter.
District No. 1 (Boston)
reported that the department stores situated in New England cities other than
Boston did not do as well in February, relative to a year ago, as they did
in January, because of the textile strike
prevailing in that part of the
country during February, while District No. 5 (Richmond) attributed the falling off in trade in two cities to street car strikes.
February sales of 444 department stores throughout the country decreased
10.5 per cent as compared with February, 1921.
3.1 per cent in District w o. 1 (Boston)
The decreases ranged from
to 19. 5 per cent in District No. 11
(Dallas-). Stores in all Districts have been laying in stocks of spring
-i
X-3369
-28-
merchandise, so that there has been a general increase throughout the
United States in stocks on hand at the end of February, as compared
with the end of January, but half the Districts show decreases from
the corresponding month last year.'
The receipt of spring merchandise
in quantities naturally increased the average percentage of stocks
on hand at the end of each month since January 1 to net sales during
January and February, and the percentage at the end of February was
471 «5>
as
compared with 424.4 at the end of January.
The ratio of
outstanding orders to total purchases during 1$21 remains practically
unchanged,
PRICES.
Prices of most farm products continued to rise during
the early part of March and in the case of a few commodities the
advance continued through the month.
According to the quotations
furnished the Federal Reserve Board, grains showed slight reaction
about the middle of the month, but the avdrags for the first three
weeks of March was higher than for February.
Sheep and mutton have
continued to show substantial increases and cattle and hogs are slightly
higher than they were at the end of February, although in the case of
hogs, lower than during the first two weeks of March.
Wool prices have
remained firm during the month in spite of a smaller demand from manufacturers than had existed earlier in the year.
Other leading farm
products, such as cotton and hides, have shown the reverse tendency.
Raw cotton prices during the first three weeks of March were higher
than the February average but there has been a steady downward trend
in the market during March.
Cattle hides and calfskins were definitely
#
-29-
X-3369
lower in March than in February.
*
There has been no uniformity in the movement of the prices
of non-agricultural raw materials*
Prices of bituminous coal have
been gradually reduced each week bince early in February and recently
some of the independent companies have also reduced their quotations
for anthracite.
Coke, on the other hand, has advanced in price as
a result of the slight improvement in conditions in the ironmd
steel industry.
Prices within the iron and steel industry proper,
however, appear to be scarcely any, if at all, higher than last
month.
In fact, prices of steel rails and certain other commodities
were actually lower in March than in February,
Copper and tin
prices were lower also than in February, but there was a definite
trend upward in both markets.
Prices of finished and semi-finished textiles were uneven
during March,
In the cotton industry prices seemed to be definitely
on the decline, while in the woolen industry there was considerable
uncertainty and relatively little trading done.
Silk cloth prices,
on the other hand, are reported to have been firm.
Index numbers for February showed an appreciable advance,
the Federal Reserve Board index shifting four points from 133 to
1U2 (on the basis of prices in 1913 ~ ICQ) and the index of the
Bureau of Labor Statistics advancing three points*
As was pointed
out in last month's Bulletin, the most important commodities to increase were farm products.
Provisions were also higher as well as
certain chemicals, oils, and woolen yarns.
*
i
f
-30-
x-3369
FOREIGN TR.ADE. The value of exports of merchandise during
February dropped to $251,0C0,000 which is only $34,000,000 more
than the value of imports for the same month.
This excess of
merchandise exports over imports is the smallest since September,
1914, and indicates a continuance of the tendency toward a more
even balance of trade which has been particularly evident since
last November.
Imports of gold rave declined sarewhat in recent
months, but in February they were nevertheless on a substantial
scale, amounting to $28,700,000.
In February, as in previous
rronths, exports of gold were comparatively insignificant, totaling
only between $1,000,000 and $2,000,000.
It is significant to
note that while in consequence of the fall in prices, the value
of our export trade has been very largely reduced in the last few
months, compared with the same months of the previous year, the
value figures still remain substantially above prewar levels.
So
far as actual quantities are concernedhowever, the Federal Reserve
Board's foreign trade index shows that foreign shipments have
recently been somewhat lower than in the same months of 1913-
@FedFRASER