Full text of Business Conditions (Federal Reserve Bank of Chicago) : October 1, 1928, Volume 11, Number 10

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

B usiness C onditions
R eserve

S eventh
F ederal

d istr ic t
October 1, 1928

Volume 11, No. 10
NATIONAL SUMMARY OF BUSINESS CONDITIONS
O LU M E of industrial and trade activity increased in
August, and there was a further advance in whole­
sale commodity prices. Reserve bank credit outstanding
increased in September, reflecting in part seasonal demands
for currency and credit. Money rates remained firm.
PRODUCTION— Production of both manufactures and
minerals increased considerably in August, the output of
manufacturing plants being larger than at this season of
any earlier year. Automobile production was in record
volume in August, and available information indicates that
output was maintained by many producers at a high level
during September. Iron and steel production continued
large in August and September, and output of nonferrous
metals increased between July and August. Textile mill
activity, which had been somewhat reduced in recenit
months, also showed a substantial increase. Factory em­
ployment and payrolls have increased since midsummer
and in August were close to the levels of a year ago.
In the building industry there was evidence of recession
in a sharp decline after the early summer in contracts
awarded, which were in smaller volume during August
than in the corresponding month of any year since 1924.
In the first three weeks of September, however, awards
were somewhat larger than last year. Estimates of the
Department of Agriculture for September 1 indicate that

V

yields of principal crops will be larger than last year and
above the average for the preceding five years.
TRADE— Distribution of commodities showed seasonal
increases in August, although sales in most lines of whole­
sale and retail trade did not equal the unusually large sales
of August, 1927. Department store stocks increased as
is usual in August but continued smaller than a year ago,
while inventories in several lines of wholesale trade were
somewhat larger than last year. Freight carloadings were
in about the same volume in August as a year earlier.
Shipments of miscellaneous commodities and grains were
larger and those of coal, live stock, and forest products
smaller than last year.
PRICES— The general level of commodity prices in­
creased in August and the Bureau of Labor Statistics index,
at 98.9 per cent of the 1926 average, was the highest in nearly
two years. Increases in August were chiefly in the prices of
live stock and live-stock products, which are now higher
than at any time since 1920. There were also small in­
creases in fuels, metals, and building materials. Grains
and cotton showed sharp declines, and there were decreases
also in hides and skins and wool. Since the first of Sep­
tember there have been some declines in live stock and
meats and a sharp further decrease in cotton, while prices
of pig iron, copper, and petroleum have advanced.
BUILDING CO NTR ACTS AW A R D ED

PRODUCTION

OF

MANUFACTURES AND

MINERALS

In d ex nu m bers o f p rod u ction o f m an u factu res an d m inerals,
a d ju sted fo r seasonal v a ria tio n s (1923-1925 av erag e = 100).
L a te st figures, A u g u st, 1928: M an u factu res, 114; M inerals, 105.




F ederal R eserve B o a r d ’ s in d exes o f value o f b u ildin g c o n tra cts
aw arded, as reported b y the F. W . D od ge C orporation (1923-1925
a v era g e
100). L a te st figures, A u g u st, 1928: A d ju s te d Index,
111; U n a dju sted Index, 126.

Compiled September 26, 1928

BANK CREDIT— Between the middle of August and
the middle of September there was a considerable increase
in the loans and investments of member banks in leading
cities. Part of the increase was in loans on securities and
part reflected a seasonal increase in other loans. De­
posits of the member banks also increased during the
period. Volume of reserve bank credit outstanding in­
creased during the four weeks ending September 19, in
response to seasonal demands for currency and growth in

member bank reserve requirements. The increase in total
bills and securities was largely in holdings of acceptances
and in discounts for member banks.
During the same period there were further increases in
open-market rates on collateral loans and on commercial
paper, while rates on bankers’ acceptances were reduced
from 4s/$ per cent to 4 ^ per cent.
RESERVE BANK CREDIT

WHOLESALE PRICES

Ind ex o f the U. S. B u reau o f L a b o r S ta tistics (1926 = 100,
base ad op ted b y the B u re a u ).
L a te st figures, A u gu st, 1928:
F arm P ro d u cts, 107.0; N o n -a g ricu ltu ra l C om m odities, 96.7.

M on th ly a v era g es o f d a ily figures
banks. L a te st figures, a v era g es o f
1928: T ota l R eserv e B ank C redit,
M em ber Banks, 1,072 m illion ; U. S.
A cce p ta n ce s, 2 l l m illion.

fo r tw elve F ed eral R eserv e
first 22 days in S eptem ber,
1,528 m illion ; D iscou n ts for
S ecu rities, 242 m illion ; an d

BUSINESS CONDITIONS IN THE SEVENTH RESERVE DISTRICT
Current activity in the Seventh district reflects expan­
sion in department store, chain, and wholesale trade, in
sales of packing-house products, lumber, and retail furniture,
and in factory shipments of agricultural machinery, cast­
ings, stoves, furniture, and cement. The distribution of
creamery butter, flour, and shoes at retail in August de­
creased in comparison with July; the number of automo­
biles sold at wholesale and retail showed little change.
Department store business during the month, wholesale
and retail automobile trade, total value of shipments of
meat products and agricultural m achines, together with
shipments of flour, creamery butter, stoves, and malleable
castings showed substantial increases over August, 1927.
Factory shipments of steel castings and furniture, retail
furniture trade, and average sales per chain store declined
from a year ago.
Weather conditions continue favorable to the maturity
of bountiful crops in the Seventh district, with prices of
live stock considerably above those of 1927. Quotations
for grain are below the level of a year ago.
Production in the iron and steel industry was well main­
tained during August, with automobile and farm equipment
factories operating in record volume. Building contracts
declined sharply in August, and totaled slightly less than
for the corresponding period of last year. A normal reces­
sion from the preceding month in slaughtering and butter
production, as well as a seasonal increase in the manufac­
ture of shoes, flour, and furniture was recorded; animal
slaughter and shoe manufacturing showed considerable
recession in volume from 1927.
In financial phases, loans and discounts of reporting
member banks remain at a high level with demand and
time deposits above a month ago.
Savings decreased
slightly from the beginning of August, but showed a gain
over last year. Commercial paper sales declined from July,
Page 2




while open-bill market operations and transactions in bank­
ers’ acceptances increased; all three showed a recession in
activity from 1927. Check payments were at about the
same level as a month ago. Money rates continued firm.
CREDIT CONDITIONS AND M ON EY RATES
Demand for credit is active throughout the district; re­
quirements for cattle feeding and canning have been strong
in sections where these industries are important, and other
areas also indicate a greater volume of bank credit in use
than a month ago or last year. Conditions in the Chicago
money market continue firm; banks in that city, however,
find themselves well able to care for autumn commercial
demand; rates have altered little during the month, a rise
from 6 to 6J4 per cent on brokers’ loans being the only
quotable change. Collateral and customers’ over-the-coun­
ter loans continue to carry 5^2 to 6 per cent, and com­
mercial paper rates are at the level of a month previous,
5 to bl/2 per cent. The average rate earned on loans and
discounts by ten large Chicago banks during August was
5.56 per cent, as compared with 5.44 per cent in July and
4.80 in August, 1927. The corresponding figure for five
large Detroit banks in August was 5.61 per cent, and 5.54
in July. In August, 1927, the item stood at 5.27. The pre­
vailing rate in Detroit on commercial loans during the week
ended September 15 was 4
to 6 per cent.
Total bills and securities of the Federal Reserve Bank
were reduced from $209,356,000 on August 8 to $148,936,000
by September 12. On September 19, they aggregated $164,647,000. The volume on September 12 represents the low­
est level of reserve bank credit in use since October 12
last year when it amounted to $132,283,000. Loans to
member banks on August 15 totaled $152,580,000, and on
September 12 had dropped to $99,217,000, the lowest since
May 23, but they recovered on September 19 to $114,311,000. United States securities on September 19 totaled $34,-

306,000, or about the level maintained since the latter part
of July.
The volume of Federal Reserve notes in circula­
tion, which have followed an upward trend since the first
of the year, on September 19 reached $288,542,000, the
largest amount in circulation since April 30, 1924, with
$290,447,000, and which compares with $276,194,000 August
15. Total reserves of the Federal Reserve Bank, amounting
to $524,852,000 on September 12, were the largest in volume
since the $534,126,000 reported March 12, 1924. On Sep­
tember 19 they declined to $518,768,000.

POSITION O F T H E F E D E R A L R E S E R V E B A N K OF C HICAGO

L a te st figures, S ep tem ber 19, 1928, in thousands o f dollars:
F ederal R eserve N otes, 288,542; T o ta l B ills an d S ecurities,
164,647; B ills D iscou n ted , 114,311.

After the first of August loans and discounts of report­
ing member banks receded somewhat; on August 15 they
stood at $2,419,354,000, and on September 12 at $2,401,108.000. On September 19, however, they rose to a new
high mark of $2,438,743,000. In Chicago, both collateral
and commercial loans, following slight reductions, increased
again on September 19. In Detroit, both types of loans
were reduced shortly after August 15, but recently these
items have increased. Total investments on September
19 aggregated $876,066,000 compared with $890,568,000 Au­
gust 15. The reduction occurred principally in Chicago,
and particularly in United States securities. Total invest­
ments on •September 21 a year ago amounted to $831,
118.000. Net demand deposits totaled $1,874,998,000 Sep­
tember 19, compared with $1,851,842,000 August 15, and
$1,865,859,000 September 21, 1927, the recent increase being
evident throughout the district but principally in Chicago
and Detroit. Time deposits on September 19 were $1,265,551.000. as compared with $1,245,731,000 August 15, and
$1,172,091,000 September 21 a year ago; the item fluctuated
from week to week until recently when it took an upward
trend.
Sales of commercial paper by eleven dealers in the Mid­
dle West decreased 8.5 per cent in August from the pre­
ceding month and were 37.2 per cent less than last year.
Individually, ten of the concerns shared in each decline.
Most houses reported the demand for bills as rather light
from the city banks and fairly good from the country; a
few firms, however, experienced a good demand from the
city. The supply of paper was only fair. Sales of three
local dealers for the first half of September aggregated
slightly less than for the corresponding period of August.
Demand showed some signs of improvement; the supply
continued moderate. Selling rates for August ranged from
5 and 5 ^ per cent for low to 5J^ and 5J4 per cent for high,
and averaged 5% to 5l/2 per cent. Rates on September 14



closed at 5% to 5% per cent for low and 5y2 to 5J4 per
cent for high, with the customary charge 5% to 5y2 per
cent. August 31 outstandings of five dealers in the Middle
West totaled 5.0 per cent greater than at the end of July
and 20.8 per cent below last August; holdings of twentyfour dealers in the United States amounted to $458,131,977.
Transactions of six dealers in the Chicago open bill mar­
ket averaged on a weekly basis 12.8 per cent greater in
the quantity of purchases and 67.6 per cent larger in the
volume of sales from August 16 to September 12 than for
the preceding five weeks. Respective declines, however,
of 8.2 and 46.2 per cent were shown from last year. Receipts
from other offices increased 281.5 per cent over those from
July 12 to August 15 and decreased 43.8 per cent from a
year ago. Shipments to other offices averaged 33.6 per
cent larger from August 16 to September 12 than in the
preceding period and 279.7 per cent in excess of the corre­
sponding figures for 1927. Bills involved principally trans­
actions in packing-house products, cotton, grain, leather,
wool, electrical equipment, canned goods, feathers, sausage
casings, peanut meats, drugs, lumber, skates, and skins.
Supply and demand averaged fair. Ninety-day paper con­
tinued to be shown the greatest preference, although other
maturities were also in demand at times. Selling rates
eased slightly and closed on September 12 at 4Yz for 30
days to 4% and 5 for maturities of 180 days. September
12 holdings exceeded those of August 15 by 34.2 per cent,
but were 32.7 per cent smaller than on September 14, 1927.
August transactions in bankers’ acceptances at sixteen
banks in the Seventh Federal Reserve district exceeded
those of the preceding month by 42.5 per cent in amount
of paper accepted, 132.3 per cent in quantity of purchases,
and 94.9 per cent in volume of sales. Respective declines
of 31.0, 91.0, and 36.1 per cent were recorded in compari­
son with a year ago. Individually, however, six of the
banks reported a decrease in acceptances from July and five
showed a gain in the item over last August. Acceptances
of three local banks aggregated 16 per cent less for the
first half of September than for the corresponding period of
August, and were drawn principally against transactions in
packing-house products, grain, coffee, sugar, iron ore, tea,
copper, shoes, silk, dried eggs, burlap, rattan, nuts, rugs, and
machinery. Liability for outstandings was 5.4 per cent small­
er on August 31 than at the close of the preceding month,
and 3.2 per cent less than a year ago. Bank portfolios showed
a decline of 18.0 per cent from July 31 and of 85.8 per cent
from last year, while the volume of their own bills still
retained by the banks of origin decreased 26.6 and 86.9
per cent in the respective comparisons. The Federal Re­
serve Bank of Chicago bought $20,116,364 of bankers’
acceptances during August and had $13,435,904 of this
paper on hand at the close of the month.
Volume of Payment by Check—The volume of payment
by check for August, as reported by clearing houses of thir­
ty-seven cities within the Seventh district, aggregated
$6,497,659,000, or 0.7 per cent more than in July and 7.2
per cent above August, 1927. In the total for the four
larger cities, Chicago, Detroit, Milwaukee and Indianapolis,
an increase of 1.1 per cent was recorded over July and of
7.5 per cent over August last year. The amount in Chi­
cago totaled only 0.2 per cent larger than in the preceding
month and 2.5 per cent above August a year ago. Data
for thirty-three smaller cities showed a decline of 1.8 per
cent from July, but increased 5.2 per cent in the yearly
comparison.
Savings Deposits— The volume of savings deposits in the
Seventh district decreased 0.2 per cent on September 1
Page 3

from the beginning of August, while the average amount
declined 0.5 per cent and the number of accounts increased
0.3 per cent, according to a compilation for 206 reporting
banks. Gains of 3.5, 2.5, and 0.9 per cent, respectively,
were shown in comparison with last year. Figures for
Indiana and Michigan continued considerably above a
year ago and deposits in Iowa, Michigan, and Wisconsin
were larger than on August 1. Wisconsin experienced an
increase in average deposits over the preceding month, and
Illinois showed a recession in number of accounts from
the corresponding date of 1927. Individually, half the
banks reported deposits above the beginning of August,

while one-fifth showed a decrease in the item from last
year.
Bonds— Slightly greater activity has appeared in the
bond market since the end of August, and prices have
trended slightly upward.
Dealers have liquidated to a
considerable extent the accumulations on their shelves
to make way for autumn financing. Favorably priced high
grade public utility issues comprised a large part of August
sales, while some interest was manifested in rails, firstmortage real estate, municipal, and high grade foreign
securities. Buying in recent weeks has been mainly by
individual investors, rather than by institutions.

AGRICULTURAL PRODUCTION AND FOODSTUFFS
Present prospects point to bumper harvests in the
Seventh district this autumn, with conditions on September
15 maintained at the high level of the preceding month.
Corn made rapid progress during the latter part of August
and early September, so that mid-month found a large part
of the crop already safe from killing frosts, and weather
conditions conducive to the maturity of the remainder.
Threshing of small grain neared completion. Fall plowing
was getting well under way.
CROP PRODUCTION
Estimated by the Bureau of Agricultural Economics as of September 1
(In thousands of bushels unless otherwise specified)

1927
787,986
65,560
454,805
55.144(a)
1.618(a)
379(b)
51,925
1.524(c)
5.134(e)

1928
2,930,586
901,072
1,453,829
346,027
15,526
23,448
466,815
81,618
15,809

1927
2,773,708
872,595
1,184,146
264,392
16,029
26,570
406,964
93,928
16,891

214(d)

925

1,131

194(a)

652

399

41 (f)

142

165

12.907(a)
2.007(d)
1.195(d)
63(a)
32,840
21,626

178,949
66,752
22,812

123,455
45,463
18,072

2,631

2,465

2,095

1,211,301
106,468

1,337,561
90,967

1,371,782
87,859

1922-26
2,775,634
807,378
1,351,723
192,020
13,711
20,148
393,776
81,101
16,335

P er c e n t c h a n g e from
uly

A

ugu st

C o m p a n ie s
I n clu de d

1928
+ 12.7

1927
— 8.4

+ 2.2

— 7.0

26

+ 6 2 .4

— 8 .1
+ 2 2 .1
+
9 .3

26
12
12

— 48.4
-■—4 5 . 5

Production includes wheat and other flours.
wheat flour only.

30

Balance of items refer to

Grain Marketing— Interior primary markets in the United
States handled wheat and oats in seasonally larger quantities
and corn in somewhat smaller volume during August than
in July, with receipts and reshipments of corn and oats in
excess of last year and the tonnage of wheat reduced
slightly from August, 1927. The movement of wheat and
corn increased and that of oats decreased in comparison
with the 1923-27 August average. Visible supplies of wheat,
oats, and barley in the United States showed the customary
gain on September 15 over the corresponding Saturday of
August, while the supply of other grain declined. Holdings
Digitized Pa«r*
for FRASER
4


C alves

442,485

310,843

81,875

2.545,335
2,984,203
3,049,893

1,196,112
1,076,307
1,168,404

368,799
361,564
389,369

H ogs

Yards in Seventh District,
August, 1928 ............... 202,795
Federally inspected Slaugh­
ter, U. S.
August, 1928 ................. 716,567
July, 1928 ....................... 662,331
August, 1927 ....
837,858

Reshipments of live stock to feed lots showed a large
seasonal gain over July, and were considerably in excess
of last year.
W e ek ended
S e pt e m b e r 15

54,302
20,677

FLOUR PRODUCTION IN THE SEVENTH DISTRICT
Changes in August, 1928, from previous months
J

L am bs and
S heep

C a ttle

AVERAGE PRICES OF LIVE STOCK
(Per hundred pounds at Chicago)

*In thousands of tons.
**Tn thousands of pounds.
(a) Five states including Seventh Federal Reserve district, (b) Wiscon­
sin, Iowa, (c) Indiana, Illinois, Iowa, (d) Indiana, Illinois, Michigan,
Iowa, (e) Michigan, Wisconsin, (f) Indiana, Illinois, Michigan, W is­
consin.

Production (bbls.) .......................
Stocks of flour at end of month
(bbls.) ...................................
Stocks of wheat at end of month
(bu.) .......................................
Sales (volume) .............................
Sales (value) --------------------------

LIVE STOCK SLAUGHTER

U n it e d S t ates
F orecast
F in a l
5 -Y r . A v .

S e v e n t h D i s t r ic t
F in a l
F orecast

1928
Corn ............... 1.042.144
41,393
Total wheat ....
Oats ............... 617,637
81.602(a)
Barley ......... —
1,617 (a)
Buckwheat .....
328(b)
Flax ...............
Potatoes (white) 76,475
1,717(c)
Potatoes (sweet)
5,037 (e)
Dry beans .....
Tomatoes for
213(d)
manufacture*
Sweet corn for
353(a)
manufacture*
Cabbage for
5 3 (f)
kraut* .........
Apples
19.063(a)
(total crop)..
3.245(d)
Peaches .........
1.738(d)
Pears ........... 9 2 (a )
Grapes* ...........
46,363
Tobacco** ---15,556
Tame hay* ----

of wheat and barley increased over a year ago, but stocks
of corn, oats, and rye were below the level on September
10, 1927. Trading in grain futures by members of the Chi­
cago Board of Trade totaled 10.1 per cent larger than in
July and 11.7 per cent less than a year ago Prices declined.
Movement of Live Stock— Public stock yards in the
United States received a greater number of cattle, calves,
and lambs and a smaller quantity of hogs during August
than in July. Marketings of cattle, calves, and hogs were
considerably below a year ago and the 1923-27 August aver­
age; receipts of sheep and lambs increased in both com­
parisons.

A u g u st

M o n t h s of
July
A u g u st

1928
$15.25

1928
$15.00

F at C o w s an d H e ife r s ..—_____—.— 10.75

10.15

10.00

8.10

Hogs (bulk of sales)..................
Calves .............................................
Lambs ................
Yearling Sheep .................. - ........

11.25
16.60
14.55
11.55

10.70
14.85
15.60
12.60

9.10
14.85
13.85
10.45

Native Beef Steers

1928
(average)....$16.35
12.45
18.00
14.55
10.75

1927
$11.80

Meat Packing— August production at slaughtering estab­
lishments in the United States aggregated less than in the
preceding month and was considerably under a year ago.
Employment for the last payroll of the period decreased
1.7 per cent in number, 1.4 per cent in hours worked, and
2.0 per cent in value from the corresponding figures for
July. Domestic trade was slightly better for lard, remained
good for smoked goods, boiled ham, and sausage, and aver­
aged fair for fresh pork and dry salt meats. Demand for
beef and lamb was rather slow during the first half of
the month but tended to improve a little at the close. The
value of sales billed to domestic and foreign customers
by fifty-nine meat packing companies in the United States
totaled 3.8 per cent more for August than for July and was
5.9 per cent ahead of a year ago. Domestic demand showed
an improvement at the beginning of September over the
preceding month. August prices of nearly all products
were higher than those of July; quotations for lamb eased.
September 1 inventories at packing plants and cold-storage
warehouses in the United States fell considerably below the
level of August 1 and a year ago, with several of the items
showing a reduction from the five-year average. Lard and
mutton stocks continued in excess of last year and the
1923-27 September 1 average.

sixty-two companies.
Receipts of cheese at Wisconsin
markets from factories within the state were 15.3 per cent
smaller during the five weeks ended September 8 than for
the preceding period and 4.8 per cent in excess of the cor­
responding weeks of 1927; redistribution from these centers
increased 1.8 per cent and decreased 3.6 per cent in the
respective comparisons. Stocks of butter and cheese at
cold-storage warehouses and packing plants in the United
States showed the customary expansion on September 1
over the preceding month; smaller quantities of eggs were
on hand than at the beginning of August. Holdings of
cheese and eggs increased over last year and the 1923-27
September 1 average; butter inventories decreased in both
comparisons. Smaller tonnages of butter and cheese and
larger quantities of eggs were received at Chicago than a
year ago; each showed a recession in volume from July.
Chicago quotations for butter and eggs advanced in August
over those of the preceding month; cheese prices held about
steady.

Shipments for export were slightly smaller than in July,
although some companies reported an increase. Foreign
business remained rather quiet. A good demand for hams
developed early in the month in the United Kingdom but
slackened later; the Continent made some inquiries for fat
backs; the lard trade continued in small volume for this
time of year. Prices in Europe trended downward during
the month and closed below United States parity. Con­
signed stocks already abroad and in transit to European
countries were indicated as slightly smaller on September 1
than at the beginning of August.
Dairy Products— Reports from sixty creameries in the
Seventh district show a seasonal decline in August butter
production of 12.2 per cent from July, although the tonnage
totaled 6.1 per cent greater than a year ago. Statistics
released by the American Association of Creamery Butter
Manufacturers indicate similar trends for the United States.
Sales of creamery butter in the Seventh district declined
8.0 per cent in August from the preceding month and gained
15.4 per cent over last year, according to a compilation for

INDUSTRIAL EMPLOYMENT CONDITIONS
applicants to available positions showed an improvement,
dropping from 151 per cent to 138 in Illinois, from 153 to
113 in Indiana, and from 256 to 215 in Iowa.

Employment reports for August indicate a general return
to industrial activity after the seasonal quiet of July. Pay­
roll amounts especially gave evidence of a reaction, in­
creases in all but one of the groups, that of food products,
following the uniform declines of the preceding month. In
volume of employment there were declines in the textiles,
and the stone, clay, and glass products groups, as well as
in food products. The aggregate gain for the period July
15 to August 15 amounted to 1.9 per cent in number of
workers and 6.5 per cent in amount of payrolls. This com­
pares with losses of 0.6 and 6.1 per cent, respectively, for
the preceding period. In the metals and metal products
group gains of 4.8 per cent in men and 8.2 per cent in pay­
rolls approximately balanced the previous losses of 4.1 and
8.9 per cent, respectively. The vehicles group showed sub­
stantial increases in both men and payrolls, a condition re­
flected also in the reports from the Employers’ Association
of Detroit according to which the volume of employment in
that city was 5.5 per cent larger on August 15 than four
week earlier, and 7.2 per cent higher on September 11 than
on August 15.
The coal industry continued to add more workers, while
building and construction work experienced a slight decline
in activity. At the free employment offices the ratio of

T R E N D IN V O L U M E O F E M P L O Y M E N T A N D E A R N I N G S
A T REPORTING INDU STRIAL P LA N TS OF T H E
S E V E N TH DISTRICT
March, 1924— August , 1928

EMPLOYMENT AND EARNINGS—SEVENTH FEDERAL RESERVE DISTRICT
N u m b e r of W age E a rn er s
I n d u s t r ia l G rou ps

W e e k E nded
A u g u st 15
J u l y 15

1928
All groups (10) ......................................................................................
Metals and metal products (other than vehicles)...................... .. ..
Vehicles ............................................... -...................................................
Textiles and textile products..................................................................
Food and related products......................................................................
Stone, clay, and glass products..............................................................
Lumber and its products......................................................................
Chemical products ..................................................................................
Leather products ....................................................................................
Rubber products ......................................................................................
Paper and printing..................................................................................

347,426
141,211
36,333
25,856
45,591
14,571
26,668
9,945
14.207
3.890
29,154

1928
340,887
134,714
35,015
26,647
46,820
14,690
26,475
9,883
13,907
3,602
29,134

T otal E a r n in g s
P er c en t
C hange

+
+
+
—
—
—
+
+
+
+
+

L9
4.8
3.8
3.0
2.6
0.8
0.7
0.6
2.2
8.0
0.1

W e e k E nded
A u g u st 15
J u l y 15

1928
$9,439,390
3,831,152
1,160.849
600,797
1,140,780
438,357
643,739
260,623
320,168
97,993
944,932

1928
$8,860,625
3,539,066
1,003,557
574,358
1,176,494
414,072
597,186
250,861
293,426
82,016
929,589

P er c e n t
C hange

+ 6.5
+ 8.3
+ 15.7
+ 4.6
— 3.0
+ 5.9
+ 7.8
+ 3.9
4- 9.1
+ 19.5
+ L7

MANUFACTURING ACTIVITIES AND OUTPUT
Automobile Production and Distribution— August data on
automobile production in the United States show output
the largest of any month on record. Passenger cars pro­
duced totaled 400,689 or 18.5 per cent above July and 46.0
per cent larger than last August. Truck production in the



United States of 57,740 increased 8.8 per cent in the
monthly comparison and was 67.6 per cent above a year
ago.
Midwest distributors of automobiles sold fewer cars at
wholesale during August than in July but more than in
Page 5

the corresponding month of 1927. The number sold at
retail showed little change in the monthly comparison, and
the value declined; both remained at a level above a year
ago. Used car sales were smaller than in July, though
larger than in August, 1927. Stocks on August 31 of both
new and used cars gained over a month previous, while
new cars on hand declined from last year and used car
stocks gained. Deferred payment sales of twenty-six deal­
ers reporting the item averaged 46.7 per cent of their total
retail sales in August, compared with 53.4 per cent in
July and 43.8 per cent a year ago.
MIDWEST DISTRIBUTION OF AUTOMOBILES
Changes in August, 1928, from previous months
P er c e n t c h an g e fro m
Tu l y
A u gu st

1928
New cars
Wholesale—
Number sold..................... ......
Value ................................. ......
Retail—■
Number sold.................... ......
Value ................................. ......
On hand August 31—
Number ........................... ......
Value ................................. ......
Used cars
Number sold...........................
Salable on hand—•
Number ........................ . ......
Value ................................. ......

1927

C o m p a n ie s
I n clu ded

— 0.3
+ 5.0

+ 14.9
+ 14.0

26
26

— 0.3
— 1.8

+ 49.8
+ 23.7

76
76

+ 3.3
+12.2

— 13.1
— 6.8

46
46

— 3.3

+ 22.1

76

+ 8.0
+ 3.7

45
45

+ 9.2
+ 5.1

Agricultural Machinery and Equipment— August sales of
agricultural machinery and equipment billed to domestic
and foreign customers by seventy-four manufacturers in the
United States exceeded those in July by 4.3 per cent in the
heavy machinery group, and 0.1 per cent for “ all other”
(exclusive of barn supplies), but showed a recession of 11.0
per cent in the barn equipment group. Business in the
tractor, thresher, combination harvester-thresher line in­
creased 38.4 per cent over a year ago, and gains of 6.2 and
6.3 per cent, respectively, were recorded in the light ma­
chinery and barn equipment groups.
PRODUCTION AND SALES OF FARM EQUIPMENT IN THE
UNITED STATES
Changes in August, 1928, from previous months
P er c e n t c h a n g e fro m
J uly
A u g u st

Domestic sales billed............. .........
Sales billed f o r export........... .......
Total sales billed................. . .......
Production ............................. ------

1928

1927

— 0.9

+ 20.5

+17.1
+ 2.2
+ 4.2

C o m p a n ie s
I n clu de d

+ 33.4
-4-22.9
+ 28.8

Production computed from average employment during month.
based on value.

76
42
76
74

Sales

Iron and Steel Products— A steady volume of miscella­
neous orders through August maintained steel operations in
the Chicago district at 75 per cent of capacity and toward
the end of the month they were advanced to 80 per cent.
Farm,' implement and automobile manufacturers were the
largest consumers of steel, but there was a good demand
from diversified sources. Pig iron sales also were large;
production in the Illinois and Indiana district declined
somewhat in August from July, but continued above the
rate of a year ago. Pig iron output for the United States
increased in both comparisons, as did steel ingot produc­
tion. Unfilled orders of the United States Steel Corpora­
tion totaled 3,624,043 tons on August 31, an increase of
53,116 tons over July 31 and the largest tonnage for that
date in August since 1923.

The price tendency in recent weeks has been upward. The
composite average of leading iron and steel products, as
compiled by Iron Trade Review, has risen gradually week
by week from $34.89 on August 15 to $35.23 September 19.
The price of pig iron at Chicago was raised 50 cents the end
of August to $18.00, and again the third week in September
to $18.50. The strength of scrap iron and steel prices at
Chicago has been well maintained, and quotations on many
items trend upward.
Steel casting foundries of the district booked a smaller
volume of new orders in August than in either the preced­
ing month or a year ago; shipments and production in­
creased over July but were less than last year. At malleable
casting foundries, shipments, production, and orders booked
were larger than a month previous or a year ago. For stove
manufacturers in the district all three items increased in
the monthly and yearly comparisons.
Shoe Manufacturing, Tanning, and Hides— Shoe factories
in the Seventh Federal Reserve district increased their pro­
duction 23.8 per cent in August over the preceding month,
according to preliminary estimates of the United States
Department of Commerce. Reports sent direct to this bank
by representative companies in the district show a larger
quantity of leather tanned during the period than in July
or last year; sales also gained in the first comparison, but
totaled somewhat less than a year ago. Quotations for
leather tended to ease.
Chicago trading in packer green hides and calf skins de­
creased in August from the preceding month. Shipments
from the city and purchases by district tanners, however,
were reported in excess of July. Prices declined.
Furniture— Twenty-four furniture manufacturers of the
Seventh district booked orders in August totaling 10.0 per
cent less than in the preceding month and 6.9 per cent
below the corresponding month of 1927. In the former
comparison, however, the majority of companies showed
gains, and ten firms had a larger volume of orders than a
year ago. Shipments increased seasonally 40.6 per cent
over July, but were 7.7 per cent smaller than last August.
A la r g e r volume of shipments than new orders, plus can­
cellations received, resulted in a reduction in the amount
of unfilled orders on hand August 31 of 5.4 per cent from
those held July 31; the amount was 3.0 per cent smaller
than on August 31 last year. Operations increased during
August, and exceeded the rate of a year ago.
Raw W ool and Finished W oolens— August trading in
the raw wool market was generally spotty. A few dealers
in the Chicago district report that sales to manufacturers
increased considerably in volume over July and were larger
than in August of previous years; others report a quiet
market. The latter part of the month, however, and in the
early part of September, demand was indicated as broader.
Prices remained fairly steady at July levels, though lower
than those prevailing during June. With manufacturers of
finished goods, August was a quiet month, preceding the
openings in the first week of September. Greater activity
has been apparent since these openings. Prices on the spring
lines of men’s wear averaged lower in some cases, un­
changed in some, and higher in others.

COAL
Conditions in the Midwest bituminous coal industry re­
mained about the same through August as in July, with
wage conferences constituting the principal factor of inter­
est. Many Illinois mines reopened in September following
an agreement between miners and operators on a reduction
Page 6



in the wage scale. With the exception of Southern Illinois,
screenings prices in other sections of the district averaged
lower after the first of September; prices of domestic coal
were higher in some instances.
Production in Illinois
aggregated 3,835,318 tons for August, or about 700,000 tons

more than
ation, for
men.
For the
in August

in the preceding month; 125 mines were in oper­
an average of 17.1 days, and employing 36,681

July but slightly under production for last August. Accord­
ing to the Ore & Coal Exchange, August loadings of
bituminous coal into vessels at Lake Erie ports were the
largest for any month on record, the total of 5,666,351 tons
being 1,500,000 tons greater than a year ago.

country as a whole, output of bituminous coal
totaled 41,108,000 tons, a volume larger than in

BUILDING MATERIAL AND CONSTRUCTION ACTIVITIES
Increased sales in the lumber industry were reported
for August, both wholesale and retail firms showing gains
that offset the heavy losses of the preceding month. The
aggregrate for twenty wholesalers and manufacturers of
the district exceeded July by 13.6 per cent in value and 14.2
per cent in board feet measure, and was also slightly larger
than a year ago, the increases amounting to 0.2 and 0.7 per
cent, respectively, in the two units of measurement. Dollar
sales at 229 retail yards also showed a gain over July,
7.3 per cent, but remained below last year’s volume, the
difference amounting to 10.3 per cent. Outstanding accounts
at wholesale were 121 per cent of August sales as against
139 per cent the preceding month and 122 a year ago. At
retail the corresponding ratios were 324, 339, and 299 per
cent, respectively. Stocks, as reported by wholesale deal­
ers, were generally lighter than in either the preceding
month or a year ago; at retail yards conditions showed a
wide variation, with the number of decreases reported,
however, exceeding the increases. Prices continued firm
during August, but were somewhat weaker the early part
of September. At Chicago lumber shipments increased

17.8 per cent over the preceding month and for the first
time this year reached the volume of the corresponding
month of 1927. Receipts of lumber, though slightly below
those of a year ago, gained 6.6 per cent over July.
In the cement industry shipments showed a heavy in­
crease over the preceding month but in many sections of
the district failed to equal the volume of a year ago. Brick
deliveries were less satisfactory, and stocks were reported
as considerably larger than a month previous.
Building Construction— Contracts awarded in the Seventh
district totaled $108,306,180 in August, a decrease of 23.0
per cent from the July volume and 1.2 per cent less than
in August, 1927. Contracts for residential building amount­
ed to $43,530,268, 16.4 per cent less than in July but slightly
larger than a year ago. Permits issued, as reported by
fifty cities, showed a decline in estimated cost of 20.8 per
cent in the month-to-month comparison and of 19.9 per cent
from the corresponding month a year ago. Fifty-three
additional cities for which the monthly comparison is avail­
able registered a loss from July of 2.4 per cent in estimated
valuation.

MERCHANDISING CONDITIONS
Wholesale Trade— August sales in six lines of wholesale
trade reporting to this bank totaled larger than in the pre­
ceding month, and in four groups also increased over a
year ago. In the first eight months of 1928, reporting
wholesale drug firms had sales aggregating 3.4 per cent
more than in the corresponding period of 1927, wholesale
shoes showed an increase of 4.6 per cent, and electrical

supplies a gain of 5.6 per cent; wholesale dry goods, gro­
cery, and hardware firms indicated declines in this compari­
son ©f 4.2, 1.9, and 4.1 per cent, respectively.

Collections

for the majority of reporting lines were larger in August
than in the preceding month and were above a year ago.
Prices in general were indicated as firm or steady.

WHOLESALE TRADE DURING THE MONTH OF AUGUST, 1928

Groceries ..............
Hardware ..............
Dry Goods ............
Drugs ....................
Shoes ....................
Electrical Supplies

Net Sales During Month

Stocks at End of Month

Accounts Outstanding End of Month

P er C e n t C h a n g e F rom
P r ec ed in g S a m e M o n t h
M onth
L a st Y ear

P er C e n t C h a n g e F rom
P rec ed in g S a m e M o n t h
L a st Y ear
M onth

P er C e n t
P r ec ed in g
M onth

(3 3 )+ 8.9
(1 5 )+ 7.7
(12) +28.6
(14) + 10.2
( 7) +42.5
(3 1 )+ 8.1

(3 3 )+ 1.9
(1 5 )+ 1.8
(12)— 3.7
(1 4 )+ 6.2
( 7)— 7.3
(31) +14.0

(2 1 )+
(10)—
( 9 )—
(12)—
( 5) +
(2 4 )+

0.4
1.4
0.3
2.3
0.3
3.4

(21)—
(10)—
( 9) +
(12)—
( 5) +
(24)—

0.6
8.7
4.5
4.5
6.6
7.3

(2 9 )+ 1.5
(1 5 )+ 4.3
(12) + 11.0
(1 3 )+ 2.1
( 6) +10.2
(3 0 )+ 6.3

R a t io to
C h a n g e F rom
Sam e M on th
N e t S ales
L ast Y ear D u r in g M o n t h

(29)—
(1 5 )+
(10)—
(1 4 )+
( 6) +
(3 0 )+

5.0
1.3
0.5
6.4
4.5
8.3

(29)
(15)
(12)
(14)
( 6)
(30)

99.5
200.8
266.9
137.3
246.5
138.2

Collections During Month
P er C e n t C h a n g e F rom
P r ec ed in g S a m e M o n t h
M onth
L ast Y ear
(2 4 )+

2.4

(2 4 )+

(13)—
(1 0 )+
( 9) +
( 5)—
(2 3 )+

8.2
0.6
3.2
7.0
3.4

(13)—
( 8 )—
( 7) +
( 5 )+
(2 3 )+

0.2
S.O
4.4
6.0
5.4
7.6

Figures in parentheses indicate number of firms included.

Department Store Trade— Total sales during August of
104 department stores in the Seventh district exceeded
those of the preceding month by 9.5 per cent, but were
only 0.7 per cent heavier than in August last year. Both the
larger and the smaller cities showed sales increases in the
monthly comparison, with Chicago, Detroit, and Milwaukee
likewise indicating gains over a year ago. Sales by Indian­
apolis firms and by fifty-seven stores in smaller centers
were less in total volume than last August. District sales
for the first eight months of 1928 aggregated 4.5 per cent
more than in the same period of 1927. Stocks on hand
August 31 were heavier than either a month previous or a
year ago by 7.1 and 3.3 per cent, respectively. The ratio
of sales to average stocks, or stock turnover, was 29.6 per
cent for August compared with 30.4 per cent in July; for
the year to date turnover was 246.7 per cent against 245.6
per cent last year. Collections fell off 11.7 per cent in
August from July, but exceeded those a year ago by 8.8



per cent. Accounts receivable on August 31 were 1.0 per
cent smaller than a month previous and 7.4 per cent larger
than on the corresponding date of 1927. August collec­
tions averaged 35.9 per cent of accounts receivable July 31,
compared with 35.7 per cent a year ago.
Retail Shoe Trade— Total sales during August of twentyfive dealers and the shoe sections of twenty-two depart­
ment stores decreased 1.7 per cent from July, but gained
0.7 per cent as compared with a year ago. Individually,
fourteen dealers and fourteen department stores reported
gains in the month-to-month comparison. Sales for the
year through August aggregated 1.3 per cent below the
corresponding*period of 1927. Stocks of shoes on hand
August 31 of forty firms averaged 12.6 per cent heavier
than a month previous and 11.6 per cent above a year ago.
Accounts receivable at the end of the month declined 15.5
per cent from July 31 and 9.5 per cent from August 31,
1927, according to the reports of eighteen dealers.’ Collec­
Page 7

tions during the month were 24.4 per
July, but aggregated 9.3 per cent more
The ratio of accounts receivable to sales
averaged 60.6 per cent for August, 61.5
and 62.6 per cent a year ago.

cent less than in
than last August.
during the month
per cent for July,

Retail Furniture Trade— Sales of furniture during August
increased 33.1 per cent over the preceding month but were
2.2 per cent smaller than a year ago, according to the
reports of twenty-three retail dealers and the furniture
sections of twenty-six department stores in the district.
Gains in installment sales of eighteen dealers averaged
48.5 per cent more and 7.9 per cent less in the respective
monthly and yearly comparisons. Total collections by twen­
ty-one dealers were 4.4 per cent heavier in August than in
July but fell 1.9 per cent below the level of last August,
while collections on installment accounts gained 2.7 and
declined 5.5 per cent in the respective comparisons.
Accounts receivable August 31 totaled 1.7 per cent more

than on July 31 and 0.4 per cent above the corresponding
date of 1927. Stocks on hand of dealers and department
stores averaged 2.9 per cent heavier than a month previ­
ous and were 4.8 per cent larger than a year ago.
Chain Store Trade— A further slight gain (0.5 per cent)
was recorded for August over July in the number of chain
stores operated by twenty-five companies, and the number
remained, as in the preceding month, more than 20 per
cent greater than a year ago. Total sales increased 4.5 and
16.6 per cent, respectively, in the monthly and yearly com­
parisons, while average sales per store gained 4.0 per cent
over July but were 3.0 per cent below last August. Men’s
clothing, shoe, and furniture chains indicate declines in
the month-to-month comparison; cigar, musical instru­
ment, shoe, furniture, and women’s clothing chains had
smaller sales than in August, 1927, with five-and-ten-cent
stores, and the grocery, drug, and men’s clothing groups
reporting gains.

M O N TH LY BUSINESS INDICES COMPUTED BY FEDERAL RESERVE BANK OF CHICAGO
(Index numbers express a comparison of unit or dollar volume for the month indicated, using the monthly average for 1923-1924-1925 as a base,
unless otherwise indicated. Where figures for latest month shown are partly estimated on basis of returns received to date, revisions will be given the
following month. Data refer to the Seventh Federal Reserve District unless otherwise noted.)
No. of August July August July
1927
1927
1928
Firms 1928
Meat Packing— (U. S .)—
Sales (in dollars)............................. ........... 59 115.8 111.6 109.3 102.3
Casting Foundries—
Shipments :
Steel— In dollars ......................... ...........
In tons ............................... ...........
Malleable— In dollars ............... ............
In tons ..................... ...........

15
15
17
15

75.6
74.4
71.6
100.8

72.8
71.6
60.0
94.3

96.3
97.1
62.0
79.2

78.6
77.3
55.3
69.4

Stoves and Furnaces—
Shipments (in dollars)................... ........... 12

126.0

85.2

125.8

82.2

Agricultural Machinery
& Equipment— (U. S .)—
Domestic Sales (in dollars)........... ...........
Exports (in dollars)....................... ...........
Total Sales (in dollars)................... ...........
Production ....................................... ...........

83
56
83
82

203.9
298.3
218.4
145.0

207.8
244.7
213.7
142.0

166.8
234.0
177.6
115.6

158.5
158.8
158.5
113.8

Furniture—
Orders (in dollars)........................... ........... 27
Shipments (in dollars)................... ........... 27

108.0
113.7

129.2
75.7

110.5
121.3

133.9
92.6

Shoes— 1
Production (in pairs)....................... ............. 32
Shipments (in pairs)....................... ........... 32

105.2
118.9

87.2
97.4

134.9
152.0

101.5
102.8

Electric Energy—
Output of Plants (K W H )............. ...........
Industrial Sales (K W H )............... ...........

8
8

151.8
183.0

142.1
181.7

133.7
160.2

125.9
151.6

Flour—
Production (in bbls.)................................... 32
Output of Butter by Creameries—
Production ...................................... ........... 74
Sales ................................................... ........... 74

106.3

94.3

118.3

97.2

140.3
127.6

156.7
130.9

134.3
116.8

153.2
130.0

Automobiles—
Distribution in Middle W est:
New cars— Wholesale—-Number sold....
...........
Value
New cars— Retail
— Number sold....
Value .............
New cars— On hand— Number..............
Value .............
Used cars—
Number sold....
Used cars— On hand— Number.. ...........
Value .............
cars....
Production (U .S.) : Passenger ■
Trucks ....

208.6 209.2
167.9 160.4
109.3 109.9
116.2 118.4
107.1 103.9
87.2
98.6
153.8 158.6
125.3 116.3
132.5 126.7
136.1 114.9
160.9 147.9

181.1
147.1
72.8
94.0
125.4
108.6
123.5
109.2
126.4
93.2
96.0

196.8
150.0
87.6
110.9
103.6
101.0
135.3
112.5
131.4

Freight Carloadings— (U. S .)—
Grain and Grain Products.............
Live Stock .......................................
Coal ...................................................
Coke ...................................................
Forest Products .............................
Ore ...................................................
Merchandise and Miscellaneous....
Total ................................................

126.3
76.9
96.2
78.4
93.2
166.1
116.2
111.6

118.3
71.5
86.7
77.1
87.9
167.9
113.8
107.5

123.0
86.7
103.4
82.1
96.7
160.4
114.7
112.2

106.4
80.1
87.5
84.3
92.6
169.1
111.7
106.5

Iron and Steel—
Pig Iron Production :2
Illinois and Indiana...................
United States ...............................
Steel Ingot Production— (U .S .)2....
Unfilled Orders U. S. Steel Corp

116.4
103.0
116.1
75.9

118.5
100.9
114.4
74.8

106.6
96.8
97.2
66.9

109.4
96.9
96.2
65.8

32
32
84
84
48
48
78
46
46

80.5
88.1

No. of
Firms
Wholesale Trade—
Net Sales (in dollars) :
Groceries ............................................. ..... 37
Hardware ........................................... ..... 16
Dry Goods ......................................... ..... 12
Drugs ................................................. ..... 10
Shoes ................................................... ..... 8
Retail Trade (Dept. Stores)—
Net Sales (in dollars) :
Chicago ............................................... ..... 31
Detroit ................................................ ..... 4
Indianapolis ....................................... ..... 5
Milwaukee ......................................... ..... 5
Outside .............................................. ..... 60
Seventh District .....................................105
Retail Trade— (U. S .)—
Department Stores ................................. .....565
Mail Order Houses................................. ..... 4
Chain Stores :
Grocery ................................................. ..... 34
Drug ........................................................... 13
Shoe ........................................................... 7
Five and Ten Cent............................. ..... 14
Candy ................................................... ...... 4
Apparel ....................................................... 5
Cigar ........................................................... 4
Stamp Tax Collections— 3
Sales or Transfers of Capital Stock...
Sales of Products on Exchange— Futures
U. S. Primary Markets— 4
Grain Receipts :
Oats ......................................................
Corn ......................................................
Wheat ..................................................
Grain Shipments:
Oats ......................................................
Corn ......................................................
Wheat ..................................................
Building Construction—
Contracts awarded (in dollars) :
Residential ....
Total ................
Permits:
Chicago ..........

1. Monthly average of mean of production and shipments in 1923-24-25 = 100;
district; 4. Monthly average receipts 1923-24-25 = 100.

Page
8



Cost.....
Indianapolis ............................... Number
Cost.....
Des Moines ............................... Number
Cost.....
Detroit ........ . ............................ Number
Cost.....
Milwaukee .... ............................ Number
Cost.....
Others (45) ............................... Number
Cost.....
Fifty Cities ............................... Number
Cost.....
2.

Average daily production;

3.

August July August
1928
1928
1927

July
1927

103.7
92.9
96.1
105.9
116.9

93.4
85.5
75.4
90.7
77.1

101.7
91.2
98.2
100.3
122.7

97.8
90.2
73.4
92.9
71.9

90.7
130.8
81.4
94.9
89.5
97.2

80.1
109.3
80.0
83.3
82.2
85.9

89.9
126.3
90.2
90.5
91.3
96.6

76.0
93.0
77.0
81.9
77.6
80.0

85
127

78
119

89
105

75
93

205
169
109
134
123
197
104

199
164
116
128
118
180
100

170
140
101
130
110
165
106

167
141
109
121
112
157
111

197.7
82.7

137.8
86.6

237.0
88.5

80.8
115.3

128.5
95.3
234.6

33.4
114.7
226.4

119.3
79.0
234.8

38.6
68.6
170.2

54.6
71.0
133.8

21.2
76.2
100.3

38.4
55.2
136.2

41.1
57.9
75.1

148.3
158.1

177.3
205.4

146.0
160.1

134.8
156.9

49.8
57.5
65.8
94.4
54.1
27.7
78.5
83.4
94.7
144.4
97.2
114.4
84.5
82.2

52.8
105.8
68.5
122.7
54.6
71.5
73.3
90.9
85.0
77.5
97.4
116.7
81.9
103.7

66.1
98.7
89.3
91.6
73.2
43.3
78.6
66.0
111.3
103.3
115.5
148.6
98.7
102.5

63.2
74.5
85.7
66.0
49.0
57.1
69.4
101.3
93.5
96.0
100.7
104.0
86.5
87.8

First Illinois internal revenue