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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT FEBRUARY i, 192.4 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FE D E RA L RESERVE B AN K of P H I L A D E L P H IA SUMMARY OF BUSINESS CONDITIONS IN THE UNITED STATES Production o f basic commodities showed further de December were smaller than in November, but almost cline in December and wholesale prices receded slightly. 25 per cent larger than a year ago. Christmas trade was somewhat larger than a year ago. Railroad shipments continued to decrease during D e Changes in the banking situation in January reflected cember and were slightly less than in December, 1922. chiefly an unusually large return flow of currency after Loadings o f coal and grain were the holiday season. Trade The index o f production in basic industries declined loadings o f miscellaneous mer 4 per cent in December to the low point o f the year. chandise and live stock were in larger volume. The decrease for the month re- Production seasonal decrease and was at about the same level as a year ago. but also reduced operations in the woolen, petroleum, and anthracite increased. The volume o f wholesale trade showed more than the usual fleeted principally a large reduc tion in consumption o f cotton, sugar, and lumber industries. smaller than a year ago, while Sales o f meat, hardware, and drugs were larger than in December, 1922, while sales o f dry goods Production of pig iron and shoes were smaller. The Federal Reserve Board’s Retail trade, though larger in index o f factory employment decreased 1 per cent, and December, 1923, than in any other month on record, did Was 4 per cent lower than in the spring. not show as large an increase over November as is usual The largest at the Christmas season. decreases were at plants manufacturing food products and railroad equipment. Building contract awards in Wholesale prices, according to the index o f the Bureau i T 2 he B u s i n e s s of Labor Statistics, decreased less than one per cent R F ebru ary e v i e w their borrowings, with the consequence that the earning during December. The chief re- ductions occurred in prices of assets of the Federal reserve banks declined by $360,000,000 during the four weeks following Christmas, fuel and building materials, while or approximately $150,000,000 more than during the prices of clothing and metals increased, and prices of corresponding period o f 1923. A t the middle o f January farm products remained unchanged. During the first the volume o f reserve bank credit outstanding was be two weeks o f January prices o f corn, wheat, pig iron, low $1,000,000,000 for the first time since early in 1918. Prices petroleum, and lumber advanced, while quotations on cotton, sugar, and copper were lower. Loans made largely for commercial purposes by mem ber banks in principal cities declined between December The volume o f credit extended by the Federal reserve 12 and January 16 to a point $264,000,000 lower than banks showed the usual sharp increase during the latter at the peak in October and to about the level o f July, part of December in response to 1923. holiday requirements for credit throughout the country, was accompanied by a move and currency and financial settle Bank Credit ment o f funds to the financial centers and an increase in ments falling due on the first o f January. W ith the pass This decrease in loans, which was general loans on securities, principally in New York. ing o f the seasonal demands there was an unusually Easier money conditions in January are reflected in a rapid return flow o f currency to the reserve banks, further slight decline in the rate on prime commercial reflected both in an increase o f reserves and a decrease paper to of Federal reserve note circulation. in December, and in increased activity in the investment Member banks used the currency returned from circulation to reduce per cent, compared with 4J4 to 5 per cent markets. TABLE OF CONTENTS PAGE PAGE Automobiles ............................ Bankers’ acceptances ............. ............... Building ................................... Cement ...................................... Cigars ........................................ ............... ............... ............... ............... ............... Cotton goods ........................... ............... ............... ............... ............... Drugs, wholesale .................... ............... Drygoods, wholesale ............. ............... Electrical supplies ................. 7 21 17 17 18 7 20 19 19 3 10 9 Employment and wages ............. .......... Financial conditions .................... .......... Floor coverings ............................ Flour ............................................... Foreign exchange ....................... .......... Groceries, wholesale .................. .......... .......... .......... .......... .......... .......... Lumber ........................................... .......... .......... .......... Paper boxes ................................. .......... Retail trade ................................... .......... Savings deposits ........................... .......... 3 6 7 10 10 24 23 15 24 1 14 26 27 8 6 PAGE Securities ........................................... Shipbuilding ...................................... Shirts .................................................... Shoes ................................................... Shoes, wholesale ............................... Summary, national .......................... ___ ___ ___ ___ ___ 22 22 11 12 3 ___ ___ 4 23 9 21 20 20 W oolen and worsted goods ............. . . . . Woolen and worsted yarns ............ . . . . W ool, raw .......................................... . . . . SUMMARY OF BUSINESS CONDITIONS IN THE PEN THIRD FEDERAL RESERVE DISTRICT enjoying a better demand; nearly all grades o f hides have been selling readily, and stocks are lo w er; heavy leathers, too, show improvement. In the textile indus tries a better sentiment is noted in the silk and woolen trades, but cotton continues quiet. M en’s clothing is said to be moving slowly, largely because of unseason able weather. Bituminous coal is still sluggish, and additional mines have shut d o w n ; anthracite, on the other hand, is selling well. M ost building materials are in fair request, considering the season of the year, as construction has been relatively active. The value o f building permits issued in the Third Federal Reserve District declined in December, it is true, but such an occurrence is usual at that period. Paper and paper boxes are in fair request, and cigar manufacturers also report moderately good business. In four o f the five wholesale lines in which this bank collects figures, sales in December were smaller than in November, and in some instances were also less than in December, 1922. Wholesale trade, however, usually falls off in December, as orders for the holidays have been placed previously and retailers try to hold stocks at a minimum at the time o f taking inventory. Retail trade, as usual, reached the high point o f the year in December, during which month sales were 6.3 per cent larger than they were a year ago. But it is asserted that unseasonable weather was the cause o f smaller increases than were generally expected. Still, those stores that have held sales during January report the volume to be about equal to that of the same period last year. Credit conditions are easy, and money rates are slightly lower than they were a month ago. Some com mercial paper has been sold recently at 4p2 per cent, but for other names the market held at 4j4 and 5 per cent. Customary first o f the year quiet prevailed in most trades and industries early in January, but since the middle of the month activity has been growing. Dis tribution of goods by wholesalers was lighter in Decem ber than in November, but retailers as a rule enjoyed a good holiday business. Freight car loadings declined sharply in the last few weeks of 1923, a usual occurrence at that season o f the year. Manufacturing activity, however> has been fairly well maintained, and although numerous factories, especially those in the textile indus tries, are running on reduced schedules, the average rate of operations is comparatively high. Optimism is apparent in most lines, and the majority ° f industries have entered the year with a considerable degree o f confidence. This feeling is supported by the fajt that stocks o f goods in the hands o f ultimate distributors are o f moderate size, and that industrial workers as a rule are fully employed at substantial wages. It is true that employment decreased about 2 Per cent in this district during December, but this was partly due to temporary shutdowns for the purpose of taking inventories. In contrast to these favorable fac tors, there is the complaint, especially in the cotton trade, that manufacturers are meeting with resistance to prices and that concessions are demanded which prevent goods being marketed at a reasonable profit. But the general price level has continued relatively stable, and although the index of the Bureau of Labor Statis tics at the end o f December stood at 151, as compared "nth 152 at the end of the previous month, decreases in P1Jce appeared to be smaller than during the previous *uonth. The largest decreases, which took place in the uel and lighting and building material groups, were caused by lower prices for bituminous coal, for certain grades o f lumber, and for portland cement. Farm Products as a group fell slightly, higher prices for wheat, cotton, and wool being offset by reductions in corn and beans. EMPLOYMENT AND WAGES Employment in manufacturing establishments in Pennsylvania, New Jersey, and Delaware decreased more than 2 per cent in December, according to reports received by this bank from more than a thousand es tablishments in 48 industries. The largest decreases, o f 15 and 21 per cent respectively, occurred in car-repair shops and sugar refineries. Material reductions were recorded also in plants making machinery, in miscel- Turning to the conditions in the individual indusfries: a marked improvement is noted in the demand ^0r iron and steel products. Pig iron is selling better |an it has for some time past, and prices are firm. j manufacturers are looking forward to sizeable r ers from the automotive industry, which is preparing 01 another good year. The leather trade has also been 3 4 T he — B R F ebru ary - u s i n e s s e v i e w ' SYNOPSIS OF BUSINESS CONDITIONS Compiled as of January 22, 1924 Business Demand Third Federal Reserve District Prices Automobiles Fair to good Firm Cement Fair to good Firm Cigars Fair Firm Clothing, men’s wear shirts * Coal, anthracite Coal, bituminous Poor Fair Good Fair Coke Fair Cotton goods Poor Unchanged to lower Firm Unchanged Unchanged to lower Unchanged to lower Cotton yarns Poor to fair Drugs, wholesale Fair Drygoods, wholesale Fair Lower Finished stocks Moderate Light to moderate Light to moderate Labor situation Supply Wages Collections Fair to good Sufficient Unchanged Fair to good Sufficient Unchanged Fair to good Moderate Sufficient Unchanged Poor to fair Moderate Heavy Some scarcity Sufficient Unchanged Unchanged Fair Fair Moderate Sufficient Unchanged Fair Moderate Sufficient Unchanged Fair to good Light to moderate Fair to good Paper Fair Paper boxes Fair Shipbuilding Shoes, manufacture Shoes, retail Shoes, wholesale Silk goods Sugar Underwear, heavy weight Underwear, light weight Woolen and worsted goods Woolen and worsted yarns Poor Fair Fair to good Fair Fair Fair Some advances, Moderate some declines Unchanged Moderate to higher Firm Moderate Moderate Unchanged to heavy Firm Moderate Moderate Steady to heavy Moderate: Firm decreasing Unchanged Moderate to lower Cotton, firm Silk, unchanged Moderate to lower Unchanged Moderate to higher Unchanged Moderate Unchanged Heavy to higher Some advances, Heavy some declines Firm Moderate Unchanged Moderate to higher to heavy Unchanged Moderate Light to Weak moderate Unchanged Unchanged Moderate Unchanged Moderate Unchanged Moderate Unchanged Heavy Lower Light Poor to fair Higher Light Sufficient Unchanged Fair to good Poor to fair Higher Light Sufficient Unchanged Fair to good Poor Unchanged Moderate Sufficient Unchanged Fair Poor to fair Unchanged Moderate Sufficient Unchanged Fair to good Electrical supplies Fair to good Floor coverings Fair to good Flour Fair Groceries, wholesale Fair Hardware, wholesale Fair to good Hosiery, fullfashioned Fair Hosiery, seamless Fair Iron and steel Fair to good Leather belting Fair Leather, heavy Fair Leather, upper Poor to fair Lumber Fair to good Paint Fair Fair to good Fair to good Fair Sufficient Unchanged Fair to good Sufficient Unchanged Fair Fair to good Fair to good Sufficient Unchanged Fair to good Sufficient Unchanged Fair to good Some scarcity Unchanged Fair to good Sufficient Unchanged Fair to good Sufficient Unchanged Good Sufficient Unchanged Good Some scarcity Unchanged Fair to good Sufficient Unchanged Poor to fair Sufficient Unchanged Fair to good Sufficient Unchanged Fair Sufficient Sufficient Unchanged Unchanged Sufficient Sufficient Unchanged Unchanged Fair Fair to good Good Poor to fair Fair Good ] T 1 924 hird F R e d e r a l e s e r v e D 5 i s t r i c t E M P L O Y M E N T AND W A G E S IN PENNSYLVANIA, NEW JERSEY AND D ELAW ARE Group and Industry Number of plants reporting Decem November Per cent December 15, November 15, Per cent Decem November Per cent change change ber 15,1923 15, 1923 ber 15,1923 15, 1923 1923 change 1923 .3 $27.01 $26.45 + 2.1 + .4 4.1 5.6 29.28 29.10 35.87 28.38 27.97 32.11 + + + 3.2 4.0 11.7 385,714 + 3.7 24.64 23.78 + 3.6 367,836 413,585 + 1.8 .2 28.38 28.33 26.35 27.77 + + 7.7 2.0 177,697 _ .8 383.005 — .1 — 10.5 136,660 1,447,043 — 2.2 87,935 — 8.5 769,763 + 3.5 347,764 + 9.5 3.1 120,095 30.53 29.33 25.84 27.96 26.54 30.73 28.74 28.76 29.90 28.85 27.42 28.29 27.07 28.16 29.25 29.18 + + — — — 2.1 1.7 5.8 1.2 2.0 9.1 1.7 1.4 1,670,228 .3 108,746 10.8 123,981 + 4.7 .7 140,978 + 172,061 + 8.4 392,376 — 3.9 312,010 + .1 202,462 + 5.5 171,901 — 7.3 45,713 + 5.4 21.80 27.15 19.04 24.17 24.39 19.02 21.77 20.24 27.85 23.48 21.63 + 28.02 — 18.38 + 23.74 + 23.17 + 19.16 — 21.82 — 19.09 + 29.73 — 22.09 + All industries: (48)................... 1,063 404,259 413,975 - Metal manufacturers: Automobiles, bodies and parts. Car construction and repair.. . 350 25 14 196,199 7,790 23,993 203,184 7,783 28,394 + - 3.4 .1 15.5 5,745,230 226,667 860,591 5,766,482 217,672 911,713 ratus......................................... Engines, machines an . machine tools......................................... Eoundries and machine shops. . Heating appliances and appa ratus......................................... Iron and steel blast furnaces. . . Iron and steel forgings.............. Steel works and rolling m ills. . . Structural iron works................ Miscellaneous iron and steel.. . Shipbuilding............................... Non-ferrous metals.................... 36 16,233 16,217 + .1 400,006 36 74 13,195 14,564 13,959 14,892 — — 5.5 2.2 374,523 412,576 18 11 12 49 12 47 9 7 5,773 13,046 4,733 50,624 3,031 25,919 13,252 4,046 5,944 13,277 4,984 51,151 3,248 27,331 11,888 4,116 Textile products: Carpets and rugs....................... Clothing....................................... Hats, felt and other.................. Cotton goods.............................. Silk g oods................................... Woolens and worsteds.............. Knit goods and hosiery.............. Dyeing and finishing textiles.. . Miscellaneous textile products Foods and tobacco: Bakeries....................................... Canneries.................................... Confectionery and ice cream .. Slaughtering and meat packing Sugar refining............................. Cigars and tobacco.................... Building materials: Brick, tile and terra cotta prod ucts........................................... Cement........................................ Glass............................................ Pottery........................................ ^ ^ ^ ‘calsandallied products; Chemicals and drugs................ Explosives................................... Paints and varnishes................ Petroleum refining..................... Loke___ Miscellaneous industries: Lumber and planing mill prod ucts................ _ — — — — — + — 77,226 3,881 6,746 5,939 — 7,427 + 20,478 14,300 + 10,604 5,782 — 2,069 — 94 22 9 22 14 3 24 27,289 4,677 2,865 5,811 3,068 2,702 8,166* 81 23,378 3,271 7,8027,983 4,322 2.3 $10,917,239 $10,948,388 2.9 1.7 5.0 1.0 6.7 5.2 11.5 1.7 — 1.0 — 8.0 1.0 + 76.418 3,571 6,816 5.875 7,645 19,834 14,352 10,551 5,722 2,052 176,221 382,648 122,302 1,415,516 80,435 796,491 380,872 116,382 .8 3.1 3.6 1.8 5.3 .7 .2 — 2.9 — 3.1 — 5.7 — 5.2 + 4.7 — 21.5 + 5.6 616,908 125.733 64,269 116,618 84,924 91,502 133,862 617,494 123,312 65,729 122,352 78,863 103,455 123,783 _ .1 + 2.0 — 2.2 — 4.7 + 7.7 — 11.6 8.1 22.61 26.88 22.43 20.07 27.68 33.86 16.39 21.97 25.54 21.63 19.95 26.92 30.04 16.01 + 2.9 + 5.2 + 3.7 .6 + + 2.8 + 12.7 + 2.4 23,458 - .3 651,713 664,351 - 1.9 27.88 28.32 - + 3.2 — .9 — 1.2 — .4 84,071 222,272 205,040 140,330 83,927 229,994 213,925 136,505 .2 + — 3.4 — 4.2 + 2.8 25.70 28.49 25.68 32.47 26.48 29.22 26.49 31.45 — 2.9 — 2.5 — 3.1 + 3.2 885,999 205.434 65,764 37,749 536,959 40,093 901,460 205,339 74,888 35,765 546,077 39,391 — 12.2 + 5.5 — 1.7 4- 1.8 29.68 25.46 25.31 26.03 32.64 31.27 29.83 — .5 25.50 — .2 27.74 — 8.8 .1 26.01 + .3 32.55 + 29.96 + 4.4 + 1.7 26.43 25.65 — 1.6 21.15 25.73 31.10 26.43 19.82 18.32 23.93 33.53 28.46 24.74 24.46 21.90 — 3.4 24.19 + 6.4 31.42 — 1.0 25.74 + 2.7 20.29 — 2.3 17.01 + 7.7 23.85 -f- .3 33.65 — .4 25.88 + 10.0 23.56 5 .0 21.73 + 12.6 3,169 7,871 8,077 4,341 - 201 51,124 51,780 - 1.3 1,351,450 1,328,373 8 2,410 3,373 9,627 8,929 709 5,045 5,848 4,070 5,711 2,876 2,526 2,366 3,374 9,992 9,041 749 5,328 5.941 3)960 5)411 2,934 2,684 1.9 0 — 3.7 — 1.2 — 5.3 — 5.3 50,969 86,796 299,367 235,990 14,051 92,431 139,921 136,460 162,531 71,156 61,778 51,810 81,624 313,990 232,671 15,194 90,627 141,716 133.279 140,011 69,134 58,327 11 11 — 28,107 4,829 3,039 6,132 2,929 3,444 7,734 1.1 4 6 38 7 29 24 25 20 + — 2.9 3.1 .4 .5 1.0 .8 1.2 .2 3.8 5.5 1.9 2.5 Musical instruments................. Leather tanning......................... Feather products....................... Boots and shoes......................... Paper and pulp products......... Ln [1 lnS and publishing............ j Rubber tires and hoods............ Novelties and jew elry............... All other industries.................... — 1,665,939 96,968 129,783 142,000 186,436 377,158 312,478 213,585 159,351 48,180 30,220 8,054 2,700 1,375 16,776 1,315 22 - — — 29,851 8,070 2,598 1,450 16,451 1,282 75 41 10 12 8 Furniture.. ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! — 262 14 39 9 24 70 33 48 17 8 21 15 28 17 Average weekly wages week ended T otal weekly payroll week ended Number of wage earners week ended — + + + — 1.6 + 2.8 4- 5.5 2.0 — 5.9 _ 1.7 0 + 6.3 — 4.7 + 1.4 — 7.5 + 2.0 — 1.3 + 2.4 + 16.1 + 2.9 + 5.9 6.0 6.3 6.3 1.6 3.0 T 6 he B u s i n e s s laneous iron and steel plants, structural iron works, carpet mills, canneries, confectionery establishments, and shoe and leather products factories. These decreases in employment are no doubt in part attributable to cur tailed operations during the inventory period. A few industries reported increases; notably, shipbuilding 11 per cent, and cigars and tobacco, paints and varnishes, and rubber products, 5 per cent. The monthly report of the Bureau o f Labor Statistics shows similar tendencies in the country as a whole. General employment decreased 1.5 per cent, the largest shrinkage being in sugar refineries, car-repair shops, and confectionery establishments. Noticeable increases occurred in rubber-tire factories and cotton mills. Total weekly wages paid in this district also fell off in December, but much less than employment, with the result that average weekly earnings increased more than 2 per cent. The largest increase in per capita earnings — about 12 per cent— occurred in the two groups show ing the greatest decline in employment— car-repair shops and sugar refineries. Thirty o f the 48 industries re ported increased per capita wages, whereas only 14 reported increased employment. Average weekly earn ings o f $27.01 in all industries, reported in December, were higher than in any previous month of the year and represent an advance o f nearly 12 per cent over the figure for January, 1923. The accompanying table shows for each month of 1923, the average earnings in manufacturing establishments reporting to this bank. Tanuarv ......... February . . . . M a r c h ........... A p r i l ............. M a y ............... J u n e ............... .........$24.21 .........24.53 .........25.39 .........25.61 .........26.71 .........26.26 J u l y ................. A u g u st............ . . . . September .. . . . . . . O c to b e r ........... . . . . November .. .. . . . . December . . . . . . . . 25.50 26.21 26.69 26.45 27.01 R F ebruary e v i e w REPORTING MEMBER BANKS—THIRD DISTRICT Changes in principal items Changes in course of All figures in millions of dollars Jan. 16, 1924 Six months One year Two years Secured loans.................... Commercial loans............. 285 338 + 9 -1 8 + +23 8 +36 +22 Total loans and discounts......................... 623 - +31 +58 U.rS. securities ow ned. . . Other securities ow ned... 106 179 -1 6 -2 5 - - 8 +30 + 14 Total investments........ 285 -2 2 -3 3 +44 Demand deposits............. Time deposits................... 673 122 -2 1 + 17 -4 4 +56 +50 + 75 9 6 FEDERAL RESERVE BANK OF PHILADELPHIA ^Changes in principal items Changes in course of dollars 1924 Bills discounted................ Purchased bills................. United States securities.. Total earning assets.. . Fed. reserve note circulatio n ................................. Total deposits................... Cash reserves.................... Reserve ratio..................... Four weeks Six months One year 39.7 33.7 21.1 -2 2 .4 + -7 + 8.1 -2 2 .7 + 13.4 + 3.7 1.5 4- 8.1 - 8.3 94.5 -1 3 .6 - -1 .7 -4 2 .0 + 2.7 -2 1 .5 + 2 .4 % - 12.5 + 2.7 - 2.9 + 1 -4 % 191.0 120.2 2 3 7.6 7 6 .3 % 5.6 — 6.5 .8 - 4.3 + -3 % AVERAGE PRICES OF SECURITIES FINANCIAL CONDITIONS In the period from December 19 to January 16, reporting member banks in this district reduced their commercial loans from 346 to 338 millions, but secured loans increased from 281 to 285 millions. Investments declined from 293 to 285 millions, and deposits in creased from 789 to 795 millions. A comparison o f the figures for January 16 with those for preceding dates follows. Following the usual seasonal tendency, the bills dis counted and the circulation of Federal reserve notes, as reported by the Federal Reserve Bank of Philadelphia, declined during the four weeks ending January 23. De posits increased and total reserves decreased. The re serve ratio rose owing to a larger proportionate decline in liabilities than in cash reserves. Sales o f bonds increased markedly in January, and the prices o f all classes o f these seSecurities curities, given in the accompany ing table, moved upward. Prices o f stocks also advanced. Jan. 21, 1924 Average prices of— 20 industrial stocks....................... 20 railroad stocks.......................... 10 first grade rail bon ds.............. 10 second grade rail bonds.......... 10 public utility bon ds................ 10 industrial bon ds..................... 4 liberty bonds............................. Dec. 21, 1923 Jan. 22. 1923 597.28 80.85 86.82 83.75 86.62 94.32 99.63 593.51 79.74 86.01 82.34 84.70 93.07 98.95 597.25 85.10 87.05 83.67 87.60 94.71 98.64 Largely as a result o f the crediting o f interest, savings deposits, as reported by seventy-nine banks in the Third Federal Reserve District, inSavings deposits creased 3.7 per cent during De cember. If the interest paid be eliminated the net excess o f deposits over withdrawals was 1.2 per cent. A s compared with those o f a year ago, savings deposits on January 1 show an increase of 10.1 per cent. Percentages o f change for various cities are as fo llo w s : 1924 T hird F e d e r a l SAVINGS DEPOSITS Third Federal Reserve District Number of R e s e r v e DEALINGS IN BANKERS’ ACCEPTANCES Third Federal Reserve District banks Altoona........ Chester......... Harrisburg. . Johnstown... bancaster. . . Philadelphia. Heading........ Scranton Trenton........ Wilkes-Barre W jlliamsport. Wilmington.. Y ork.............. Others........... Totals 5 5 Y ear ago 5 4 5 5 14 + 2 .2 + 1.0 -2 .1 + -2 + 4 .5 + 4.1 + 2.1 + 4 .9 + 8 .9 + 1.3 + -9 + -9 + 2 .8 + 15 + 15.8 + 13.4 + 18.3 + 12.2 + 27.0 + 7.9 + 13.5 + 12.8 + 11.9 + 23.0 + 4.6 + 9.9 + 12.2 + 13.6 79 + 3 .7 + 10.1 4 5 3 9 3 0 6 The supply o f commercial paper has increased since January 1, and most dealers report that they have good lists. The demand, however, has Commercial paper not increased in proportion to the offerings, although, because of the increase o f loanable funds and lower rates for call money, more banks have entered the market as buyers. No large purchases such as were reported in December have been made, so that it is doubtful if sales during January in this city will he as heavy as they were in December. Rates are low er; sales at 4p£ per cent, in considerable volume, are reported outside of this dis trict, and within it some short maturities have sold at that rate, hut the bulk o f the business continues to be closed at either 4^ or 5 per cent. During December the sales by six reporting firms in the Third Federal Reserve District equalled $7,857,500. The same firms sold $5,971,500 in November, 1923, and $6,787,500 in December, 1922. Sales to Philadelphia institutions totaled $4,710,000, and outside sales $3,147,500. A few sales were made at 5% and 5^4 per cent, but the combined sales at these rates were only slightly more than 2 per cent o f the total. The balance ° f the transactions were at 4^4 and 5 per cent, with the Majority at the higher figure. Although sales to the reserve bank by five dealers op erating within the Third Federal Reserve District were Bankers' maintained at a level somewhat acceptances *n excess that of the previous \ four weeks, sales to others during the month ending January 9 declined materially, and the total fell off. The weekly average o f $2,758,000, how ever, compares favorably with that o f a year ago. The supply o f bills in this district was limited and the deuiand for them only fair. The offering rate for 30 day hills was 4 per cent, and for 60 and 90 day bills, 4% per cent. Acceptances executed by twelve banks in this dis trict increased from $3,099,000 in the month ending December 10 to $4,281,000 in the succeeding month. 7 i s t r i c t Transactions o f five dealers within this district are summarized below: Per cent of change December 1, compared with Month ago D Sales in Third District Purchases in Third District Weekly average for the period To Federal Reserve Bank 1924Dec. 1923— Nov. Oct. Sept. Dec. * 1923. 13*-—Jan. 9 15— Dec. 1 2 ............. 11— Nov. 14............ 12— Oct. 10.............. 17.**— Jan. 14........ ** 1922. To others $2 406 000 $352,000 2.215.000 3.071.000 2.520.000 2.237.000 $353,000 867,000f 1,045,000 1,210,000 286,000 324.000 281,000 236,000 • 861.000 t Revised figure. W ide fluctuations and unusually large shrinkage in the values o f the more important European currencies were the outstanding features in the Foreign exchange foreign exchange market during the past month. Political develop ments in England are thought to have been the cause o f the decline in sterling, which since the middle o f Decem ber has fallen more than 16 cents to a new low level o f $4.2094 on January 21. French francs declined pre cipitately during the second and third week in January and were quoted at as low as $.0427, a new record in the history of the market. The decline was attributed to speculation, which for a time threatened to push quota tions to below the 4 cent mark. A partial recovery, however, was made on January 16, followed by a second decline, and on January 21 francs were quoted at $.0440. Belgian francs declined in sympathy, and these also touched a new low level on January 14, at $.0403. Italian lire are fairly steady at $.0436, and for the first time on record, quotations for several days this month were higher than those for French francs. Currencies o f the former neutral countries have all depreciated during the month. Swiss francs fell from $.1751 on December 28, to $.1730 on January 18, and both Spanish pesetas and Dutch guilders were quoted on the latter date at $.1272 and $.3711 respectively; lower levels than they have touched at any time in several months. Scandi navian exchanges, too, have declined. Norwegian kroner reached a new low record on January 18 at $.1412, and Swedish kroner were quoted at $.2606. Far Eastern currencies have also fallen from last month’s levels, and Japanese yen in particular felt the effects o f heavy purchases made abroad. A new low point was recorded on January 15, when quotations de clined to $.4338. Since that time, however, they have recovered to some extent, and on January 21 were quoted at $.4559. Chinese tael (H on gk on g) are lower than they have been since early in October. W ith the exception o f Chilean pesos, quotations on which are lower, South American currencies are stronger than they were at this time last month. Canadian dollars are listed at $.977304, a substantial improvement over quo tations at the end o f December. 8 T B he u s i n e s s FOREIGN EXCHANGE RATES Noon cables Par value Jan. 21, 1924 Dec. 21, 1923 Jan. 21, 1923 London.................. $4.8665 .1930 Paris....................... .1930 Antw erp................ M ilan ..................... .1930 Vienna................... .2026 .4020 Amsterdam........... Copenhagen.......... .2680 .2680 Stockholm ............. .1930 M adrid................... .1930 Berne..................... Buenos Aires........ .9648 Shanghai................ .7745 $4.2094 .0440 .0402 .0433 .000014 .3698 .1622 .2596 .1265 .1726 .7366 .7023 $4.3528 .0512 .0452 .0431 .000014 .3789 .1783 .2633 .1306 .1743 .7311 .7241 $4.6558 .0636 .0574 .0471 .000014 .3952 .1873 .2686 .1560 .1863 .8431 .7241 RETAIL TRADE Preliminary reports indicate that sales in the retail stores o f this district during January are about the same as they were in January, 1923. In many stores the usual R F ebru ary e v i e w sales o f white goods, men’s and women’s apparel, and carpets and rugs have been held. Estimates of the results of these sales are that white goods and apparel were purchased in as large a volume as they were a year ago, but that floor coverings did not move as freely. In the accompanying table will be found the summary of sales in the retail stores in this district for December and for the year 1923. In December a larger number of stores than in recent months, failed to show a gain in sales as compared with those o f the same month a year ago, but the results as a whole indicate improve ment in nearly all localities; and for the district, the increase was 6.3 per cent. In most o f the cases in which the sales were not equal to those o f a year ago, the open and mild weather was said to be the cause. In only a few reports was the total business for the year less than in 1922; in the majority of instances satisfactory gains were recorded, as is indicated by the increase o f 12.3 per cent by all reporting firms. RETAIL TRADE Third Federal Reserve District Comparison of stocks Comparison of net sales July 1 to Dec. 31, 1923 with July 1 to Dec. 31, 1922 Jan. 1 to Dec. 31, 1923 . with Jan. 1 to Dec. 31, 1922 + 9 .8 % + 1 0 .4 “ + 1 2 .3 % + 1 2 .0 “ + + -t- 6 . 2 “ - 2 .9 “ + 2 1 .9 “ + 9 .6 “ - 2 .6 “ + 4 .3 “ + 6 .5 “ + 1 2 .2 “ + 7 .5 “ + 11.4 “ + 1 .3 “ + 3 .5 “ + 4 .3 “ + 3 .3 “ + + + + + + + + + + + + + + 4 .3 “ 8 .6 “ 14.0 “ 10.3 “ 4 .2 “ 7 .7 “ 1 0 .2 “ 17.9 “ 7 .4 “ 1 2 .7 “ 1 .9 “ 6 .0 “ 4 .3 “ + 1 0 .1 “ + 6 .7 “ + 1 7 .0 “ + 14.7 “ + 12.1 “ + 1 3 .7 “ + 1 4 .8 “ + 2 1 .0 “ + 9 .8 “ + 1 6 .9 “ + 4 .4 “ + 1 7 .3 “ + 8 .7 “ + 5 .5 “ + 1 3 .9 “ 7 .8 “ Dec., 1923 with Dec., 1922 All r e p o r tin g f i r m s ....................... F irm s in— P h ila d e lp h ia ................ — A lle n to w n , B eth lehem a n d E a s t o n . . — A lto o n a ....................... — C h e ste r ........................ — H a rrisb u rg ................. — J o h n sto w n ................. — Lancaster ................. — Reading ................... — Scranton .................. — Trenton...................... — Wilkes-Barre .......... — Williamsport .......... — W ilmington............... — York ......................... — All other cites.......... + + 6 .3 % 6 .5 “ Dec. 31, 1923 with Dec. 31, 1922 8 .5 % 5 . 7 ““ Rate of turnover* Dec. 31, 1923 July 1 to July 1 tc with Dec. 31, Dec. 31, Nov. 30, 1923 1923 1922 Percentage of orders outstanding Dec. 31, 1923 to total purchases in 1922 -1 6 .5 % -1 6 .0 “ 3.6 4.3 3 6 4.1 2.7 2 .9 1.7 3.3 3 .0 2.6 2.4 3.0 3.1 3.3 2.3 2.1 2.6 2 .7 3.1 2.1 2.8 3.4 2 .7 2 .4 3.2 3.3 3.6 2.3 2.6 2 .5 “ + 12.6“ + 15.0 “ + 1 3 .4 “ + 7 .5 “ + 1 0 .6 “ + 2 6 .2 “ + .7 “ + 8 .2 “ + 3 9 .6 “ + 1 6 .0 “ + 6 .5 “ + 14.2 “ -2 2 .2 “ -1 3 .2 “ -1 0 .7 “ -1 7 .7 “ -1 6 .1 “ -2 0 .2 “ -1 1 .7 “ -1 6 .6 “ -2 1 .8 “ -2 4 .0 “ -2 2 .0 “ - 5 .1 “ -2 1 .7 “ -1 6 .4 “ 2.6 2.8 2 .0 “ 7 0% 7.0 “ 7.1 “ 2 .7 “ 2.9 All department stores.................. Department stores in Philadelphia ..................................... Department stores outside Philadelphia.................................... + 5 .9 “ + 9 .2 “ + 11.7“ + 7 .2 “ - 1 6 .9 “ 3.7 3.6 6 .9 “ + 6 .2 “ + 9 .5 “ + 11.4“ + 5 .5 “ -1 5 .9 “ 4.2 4.1 8 .6 “ + 5 .3 “ + 8 .4 “ + 12.3 “ + 10.1“ -1 8 .5 “ 2.8 3.1 4 .5 “ All apparel stores......................... Men’s apparel s to re s ................ — in Philadelphia .............. — outside Philadelphia. . . . Women’s apparel stores............ — in Philadelphia............... — outside Philadelphia.. . . 8 .4 “ .2 “ 4 .9 “ 6 .6 “ + 10.1“ + 12.3 “ + 2 .0 “ + 10.8“ + 12.4“ + 4 .7 “ + .4 “ + 19.5“ -1 5 .2 “ 6 .6 “ 7 .1 “ 6 .8 “ -2 1 .2 “ -2 0 .4 “ -2 3 .4 “ 3.7 2.3 2.7 2.0 5.5 6.3 3.3 3.7 2.5 2.9 2.2 4.9 5.2 3.8 4 .0 “ 18.1 “ + 17.4“ + 2 0 .6 “ + 5 .3 “ + 15.5“ + 10.5“ + 5 .6 “ + 17.0“ + 17.2 “ + 18.9“ + 9 .6 “ Credit houses............................... + 11.2“ + 5 .9 “ + 19.4“ + 3 2 .0 “ - 2.9 3.2 + + * Times per year based on cumulative period. + 5 .1 “ .2 “ + 11.2 “ + 10.6“ - 3 .7 “ + 25.1 “ - 7 .2 “ 18.1“ 3 .0 “ 3 .1 “ 3 .4 “ T !924 F hird e d e r a l R e s e r v e D 9 i s t r i c t WHOLESALE TRADE Third Federal Reserve District Percentage of increase or decrease in Number of reporting firms Net sales Dec. 1923, compared with Accounts outstanding Dec. 1923, compared with Ratio of accounts outstanding to sales Nov. 1923 Boots and Shoes.................................. Drugs................................................... Dry G oods............................................ Groceries................................................ Hardware.............................................. 13 15 19 60 31 Dec. 1922 Nov. 1923 Dec. 1922 Dec. 1923 Nov. 1923 Dec. 1922 - 6.2% + -1 “ -2 7 .6 “ - 1 2 .6 “ - 1 .5 “ -1 3 .4 % + 4 .4 “ - 1 0 .1 “ + 2 .5 “ + 4 .1 “ -1 2 .7 % - 7 .9 “ -1 5 .2 “ - 9 .4 “ - 7 .1 “ - -3% 8 .5 “ + 8 .2 “ -1- 3 .8 “ + 9 .2 “ 274.8% 151.0“ 285.2 “ 117.4“ 168.6 “ 298.7% 156.6“ 243.6 “ 113.2 “ 179.2 “ 242.2% 142.6“ 236.9 “ 114.0 “ 161.1 “ WHOLESALE TRADE Business in January in most o f the wholesale report ing lines is said to be improving slowly, and except in groceries will probably exceed that o f December. R e ports vary greatly, however, as to how it compares with business in January, 1923. Prices for most lines are steady, but sharp advances have been made on knit underwear and fine drugs. During December, sales in all reporting lines except drugs decreased as compared with those of November, but in hardware the loss was small. Drug sales were almost the same as in November. Sales of groceries, drugs, and hardware were larger than in December, 1922, but those o f shoes and dry goods were smaller. Collections during December showed an improvement over those o f November in shoes, drugs, and hardware, but were poorer in all lines than they were in Decem ber, 1922. Salesmen for wholesale shoe houses have been on the road only a short time but are said to be sending in fair sized orders. For prompt deShoes livery men’s boots and women’s oxford s are in strongest demand, but for spring delivery women’s pumps and sandals, men’s oxfords, and misses’ and children’s pumps, san dals, and oxford s are all in fair request. The open winter in this section o f the country has retarded sales ° f rubber goods, and this, as much as any one thing, accounts for the decrease in sales as compared with those o f a year ago. The accompanying chart shows that there are two sales peaks in each year and that collections appear to be slower in the autumn than in the spring. Wholesalers have been buying during the past month, aud though their purchases may not be as large as they ^ ere a year ago, they have been in considerable volume. onie report that in certain instances they have been able to obtain concessions in price, and that most of tiese have been made by manufacturers in New England. Stocks in the hands o f wholesalers on December 31 Were in most cases larger than those o f a year ago, W ich, according to some, was caused by larger stocks + o f rubber goods. Collections vary considerably; some firms report them to be good, but a larger number state that they are fair or poor. During December, sales in this district, as reported to the Federal Reserve Bank, decreased 6.2 per cent from those o f November and were 13.4 per cent smaller than in December, 1922. The ratio o f accounts out standing to sales stood at 274.8 on December 31, 298.7 on November 30, and 242.2 on December 31, 1922. Sales o f ginghams and wash goods for spring have increased, but as a whole, improvement has been slight in the wholesale drygoods trade Drygoods since Christmas. Prices have not decreased, and there have been some advances. Quotations on knitted underwear have risen sharply, and some other cotton lines are firmer. Stocks o f merchandise in the hands o f wholesalers are, as a rule, slightly larger than they were a year ago, but some reports state that they have decreased. During December, sales declined, and were smaller by 27.6 per cent than in November, and by 10.1 per T 10 he B u s i n e s s cent than in December, 1922. Collections, too, are not as good as they were in November. The ratio o f ac counts outstanding to sales was 285.2 on December 31, 243.6 on November 30, and 236.9 on December 31, 1922. Jobbers report that the demand for drugs is only fair and about on a par with that o f December. Seasonable goods, such as cough medicines Drugs and grippe pills, are in good re quest, and the call for toilet ar ticles is better than it was last month. The botanical drug market is quiet, and prices have fallen sharply from last month’s levels. Buying o f fine chemicals is increasing and as a result prices are higher than they were a month ago. The trend of quotations is shown in the table below, which gives the price indexes o f 40 botanical drugs and 35 drugs and fine chemicals, as com piled by the “ Oil, Paint and Drug Reporter.” Price index of 40 botanical drugs 1924 December 3 1 ... January 7 .......... January 14........ January 21........ 120.7* 120.7 114.2 111.6 1923 122.5** 125.1 125 125.1 Price index of 35 drugs and fine chemicals 1924 190.2* 193.3 195 197 1923 177.2** 176.2 174.4 174 * 1923 ** 1922. Our reports from wholesale druggists show that December sales were 0.1 per cent larger than those for November, and 4.4 per cent greater than those of December, 1922. Stocks held by jobbers vary from moderate to heavy and are about the same as in Decem ber. Collections range from fair to good. The ratio of accounts outstanding to sales in December was 151.0, as compared with 156.6 in November and with 142.6 in December, 1922. During December the net sales of 31 hardware firms in the Third Federal Reserve District \yere 1.5 per cent smaller than in November, but 4.1 Hardware per cent greater than those of December, 1922. On the other hand, our December sales index, compiled from the reports o f 20 identical firms, was 113, an increase of 1 point over the figure for last month and o f 7 points over that for December of the preceding year. The call for hardware is from fair to good, though most firms report it less strong than it was at this time last month. Electrical goods are in request, and sub stantial sales o f builders’ supplies and light hardware have been made. Prices are firm and in general un changed from those of a month a go; but in several in stances, quotations are higher than they were during January, 1923. Stocks o f finished goods are moderate and are tending to decrease, being lighter in many cases than they were at this time in December. R eview F ebruary Collections are from fair to good and have improved over those o f last month. The ratio o f accounts out standing to sales was 168.6 in December, as compared with 179.2 in November. The figure for December, 1922, was 161.1, which indicates that collections are not as prompt as they were a year ago. The demand for groceries is only fair and is lighter than it has been for several months. The decline, how ever, is largely seasonal and no Groceries greater than usual, and jobbers’ sales for the month will probably be heavier than they were a year ago. Staple groceries, canned goods, and dried fruits and vegetables are at present the most active sellers. Prices have changed but slightly and are quite firm. Sugar, evaporated milk, evaporated fruits, nuts, and mackerel are lower than they were in Decem ber; but coffee, canned vegetables, lima beans, pickles, and rice are higher. Stocks held by wholesalers vary from moderate to heavy and are prac tically the same as they were a month ago. Our reports from wholesale grocers show that sales in December were 12.6 per cent smaller than those in November, but 2.5 per cent greater than those o f Decem ber, 1922. The ratio of accounts outstanding increased from 113.2 in November to 117.4 in December. FLOUR The demand for flour is only fair, and during the past three months there has been little change in the domestic market. The majority o f consumers are buy ing for immediate needs only, and consequently the sales by mills are o f moderate size, but continuous. Prices reflect this condition, for they have held firm for the past two m onths; spring patents for prompt shipment being quoted at from $6.00 to $6.50 per barrel in car lots, the same as in November. Spot wheat prices have advanced a trifle, but only enough to cover ware housing charges. Number 2 red is selling at $1.26 per bushel, as compared with $1.23 on November 1. Grinding at mills in this district and throughout the country is still considerably below capacity. Few mills are operating at more than 80 per cent, and most of them are running at less. A s a result, there has been PUBLIC W AREHOUSE STOCK A T PHILADELPHIA* Date Jan.2,1 9 2 4 .. Dec. 1, 1923. Jan.2,1 9 2 3 .. Flour, bb'.s. Wheat, bus. 181,574 164,800 192,000 2,255,121 2,263,563 1,766,470 Corn, bus. Oats, bus. Rye, bus. 171,400 16,855 396,423 163,475 107,087 516,440 51,8S9 57,122 68,027 •The Commercial Exchange of Philadelphia. no heavy accumulation o f stocks, and the market is by no means over supplied. Stocks at public warehouses in Philadelphia on January 2 were about 12 per cent 1924 T hird F e d e r a l R greater than on December 1, 1923, but were 6 per cent smaller than on January 2, 1923. W ith the exception of wheat, the supplies of grains stored in Philadelphia warehouses were smaller than those o f a year ago. Exports of flour from the port o f Philadelphia dur ing the last quarter o f 1923 were larger, but exports of wheat were smaller, than in the corresponding period of 1922. During the year 1923 exports of flour were 10 per cent greater, but exports o f wheat were 33 per cent less, than in 1922. Corn exports fell off 66 per cent, oats, 40 per cent, and rye, 66 per cen t; but barley exports were 15 times larger than in 1922. EXPORTS OF FLOUR AND GRAINS FROM PHILADELPHIA* Commodity flou r (bbls.). Wheat (bus.) Corn (b u s.).. Oats (bu s.). . Eye (bu s.)... Barley (bus.) Year of 1923 Year of 1922 579,568 639,995 31,189,752 46,661,223 4,373,397 12,459,848 1,212,531 715,620 2,326,386 647,828 9,990 147,821 Increase Decrease 60,427 ................... ............. 15,471,471 ............. 8,086,451 ............. 496,911 ............ 1,678,558 137,831 ................... *The Commercial Exchange of Philadelphia. Export sales of flour during this month have not been heavy, but exporters report that many sales of moderate size have been made, and they state that business is better than it was in January, 1923. The British Isles, Germany, and the Scandinavian countries have been the Principal buyers in the Philadelphia market. Receipts o f flour and o f barley at Philadelphia durlng 1923 exceeded those o f 1922; but receipts of wheat, c°rn, oats, and rye were smaller. The increase in flour receipts was due to an increased demand, both export and dom estic; but the decrease in grain receipts was caused entirely by a decline in foreign buying. — T 'El •; iT <0? LT E RECEIPTS OF FLOUR AND GRAINS AT PHILADELPHIA* ” Commodity Fftur (bbls.)........ Wiieat (bu s.). . . . X°rn (bus.).......... Oats (bu s.)......... (bus.)............ Barley (bu s.)____ Year of 1923 Year of 1922 Increase 3,317,808 3,152,852 164,956 34,357,749 49,347,174 6,342,734 14,913,123 3,749,798 4,3S2,844 2,237,420 726,362 166,945 139,496 27,449 Decrease 14,989,425 8,570,389 633,046 1,511,058 •t? * Commercial Exchange of Philadelphia. ie SUGAR ^ O fferin g s o f Cuban raw sugar for prompt shipment naive been much larger on the Sugar Exchange this month than they were in Decemaw sugar her. M ore mills were grinding in Cuba early in the month than Mere in operation at the same time in 1923, but a strike e s e r v e D i s t r i c t 11 o f the railroad men in the eastern part o f the island and torrential rains in some parts, slowed up deliveries at the Cuban ports. Consequently prices have not softened to the extent that had been anticipated. Early in the month they fell rapidly, but at A]/2 cents, c & f, for spot Cuban sugars, they steadied and have since advanced slowly. On January 8, several sales o f Cuban raws for prompt shipment were made at 4j^ cents, c & f , equivalent to 6.28 cents, duty paid— a decline o f of a cent from the price prevailing at the close of December. Since then prices have gone up, and on January 21, Cuban raw sugar for prompt shipment sold at 4 % cents, equivalent to 6.53 cents duty paid. Some sales of Porto Rican sugars were made at prices equal to those o f duty-paid Cuban, but they were o f small proportions. Nearly all refiners have been buying for immediate re quirements only, and the spot market has not been as active as it was in January, 1923. English refiners and buyers have been fairly heavy purchasers o f Cuban sugars this month, and the prices they paid conform ed closely to the equivalents at c & f, New York. On January 10, sales to England were made at 4.47 cents, f.o.b Cuba, for January shipment, and at 4.30 cents for February delivery, equal to approximated 4.66 cents and 4.46 cents, c & f, New York. Some sales to Canada were also made at prices equivalent to those at New York. The grinding season in Cuba is now well advanced, and on January 16 reports from the island stated that 150 centrales were in operation, as compared with 121 on the same date last year. A strike o f the railroad men in the eastern part o f the island temporarily held up deliveries at Cuban ports, but the points at dispute were settled on January 7, and since then all interference with deliveries from this source has ceased. However, hea\y rains, which continued for practically a week in some parts o f the island, made cane cutting impossible, and several mills were compelled to shut down tem porarily because o f lack o f cane. So the output of sugar on the island this month has not been as heavy as it should have been; but as we go to press the weather conditions are generally favorable, and February receipts at Cuban ports should be heavy. In Porto Rico, grind ing operations are in full swing, and practically all centrales are now in operation. Heavy rains there, too, have slowed up the production of sugar at the mills, but they have greatly aided the growth of the late cane. In 1923 our imports of raw sugars were a million tons smaller than in 1922, but Cuba maintained its position as our chief source o f supply. In 1922 about four-fifths o f our imports were from that island, and in 1923 about three-fourths came from there. Receipts from our insular possessions in 1923 were 100,000 tons less than in 1922, but those from full-duty countries showed an increase o f 120,000 tons. A s shown in the following T he B u s i n e s s R eview 12 chart, domestic production of sugar nearly equaled one million tons and was greater than that of 1919 or 1922, but less than in 1920 and 1921. Stocks of sugar in the United States on January 1, 1923, were the smallest that they had been on that date for three years, but on January 1, 1919 and 1920, they were smaller still. RAW SUGAR MUXIOMSI TOMS ^ from Cuba 6 - E23 from insular possessions C 3 from other countries 1919 1920192119221923 19191920192119221923 F ebruary and wholesale grocers are replenishing their stocks; but, as during the past eight months, they are buying cautiously. At the beginning of the month refiners were quoting hard granulated at from 8.70 to 8.90 cents per pound, but on January 9 prices were lowered to from 8.25 to 8.60 cents and have since held firm. The demand for refined sugar from foreign countries is better than it has been for several months. Exporters have received numerous inquiries from European buyers and have also made some sales, but the volume of such business has not been large. Our export market for refined sugar is undoubtedly decreasing in importance as the European countries revive their beet sugar indus tries. In 1923 our exports were only one-fourth as large as in 1922, and only 44 per cent of the average exports for the past ten years. In only two years since the beginning of the war have exports been smaller, and those years were 1914 and 1918. As the following chart shows, the production of refined sugar in 1923 was 5 per cent less than in 1922, but 21 per cent greater than the average production for the past ten years. 1919 1920192119221923 R E F IN E D SUG AR Im parts of raw sugar in 1923 were about equal to the average Imports for the last five years, b ut less than in 1922. Domestic sugar production In 1923 was larger than in the previous year and equal to the average output of the past five years. Source— American Sugar Bulletin Receipts of raw sugar at the ports of Baltimore, Philadelphia, New York, and Boston for the first three weeks of January were below those for the same period last year. The following table shows how receipts in the same periods of both years compared. RECEIPTS OF RAW SUGAR A T ATLANTIC PORTS* Tons (2240 lbs.) Jan. 1 to Jan. 1 to Jan. 18,1924 Jan. 19,1923 F rom O u b a ............................................................... F rom Porto R.ieo......................................... FYnm Philippine! Islands............................ F rom other nonn tr ie s ................................. 71,740 778 93,224 802 2,428 Production of refined sugar in 1923 was greater than that of any year preceding 1922 and above the ten-year average, but exports were less than one-half of the average for the past decade and only one fourth as large as in 1922. 1,650 1 ,0 0 0 Sources— Weekly Statistical Sugar Trade Journal and Department of Commerce Total receipts........................................... 74,168 97,454 * American Sugar Bulletin. Although consumers are still buying only from hand to mouth, the demand for refined sugar in this market is considerably stronger than it Refined sugar was last month. Beet sugars have practically disappeared f r o m eastern cities, and the consuming area for cane sugars has been extended. Refiners state that their orders are moderate in size but numerous, and that the demand on the whole is fair. Confectioners are buying moderately, The effect of higher sugar prices in 1923 than in 1922 is shown in a decreased consumption per capita in the United States. In 1922 the per capita consumption of sugar was 103.18 pounds, but in 1923 the amount fell to 95.63 pounds, a decrease of 7% per cent. Even so, however, it was greater than in any year preceding 1922. Meltings for the first three weeks of the month at the refineries in Baltimore, Philadelphia, New York, and Boston amounted to 54,000 tons, as compared with 93,500 tons for the same period in 1923. This, repre sents a decrease of 42 per cent. !924 T hird F e d e r a l R BUILDING lh e reports o f fourteen cities in the Third Federal Reserve District indicate that the total value o f build ing permits issued during December was $8,795,530, a decline o f $1,307,068 from the November figure and ° f $1,844,271 from the total for December, 1922. The total number o f permits granted was 1734, as against 2438 for the preceding month. In every reporting city, the number was smaller than that o f November. The only increases in value noted were in Lancaster, Allen town, Trenton, and Wilkes-Barre. In Philadelphia, the number o f permits decreased from 1053 to 814, and the value from $5,406,040 to $5,298,995. The call for lumber is fairly good, and some dealers report that it is better than it was during December. One retailer remarks that quite Lumber recently the demand improved to an extent not equaled in the past three months and that several dealers to his knowledge are receiving numerous inquiries that presage a good Market in the near future. Opinions differ as to whether 0r not the present demand is as good as it was a year a£°> .^though manufacturers are inclined to believe *at it is somewhat poorer. Certain lumber mills state lat requests for wholesale lumber have increased over 'Ose at this time last month, but an equal number say they have fallen off. Good sales o f hardwood have been made, and prices are steady. The call for white pine, too, is good and quotations are stronger, especially in the better grades, ?? *s a]s° the case with yellow pine. The demand for North Carolina pine has increased, and prices are firmer than they were a month ago. The market for spruce and hemlock is inactive, and quotations are steady; but cypress is selling better, and prices are slightly higher than they were during the early part o f December. e s e r v e D 13 i s t r i c t M ost o f the orders on the books o f both retailers and manufacturers are for delivery within sixty days, although as is always the case, a goodly number are for up to and beyond ninety days. Stocks o f finished goods are, in most instances, moderate and are either stationary or increasing. Supplies o f raw materials at the mills are also moderate and are tending to increase. M ost manufacturers state that the supply o f skilled labor is sufficient, but a few report some scarcity. In all but one instance, however, unskilled labor is suffi cient and even plentiful. Collections are from fair to good and are either unchanged or slightly slower than they were a month ago. Dealers report a little improvement over those at this time last year, but manu facturers say they are not as good as they were during January, 1923. The demand for cement is from fair to good, and as is to be expected at this season, has decreased from that during December. However, Cement most dealers say that it is better than it was at this time last year, largely on account o f the moderate weather which has prevailed during the month. Many manufacturers are now producing for stock, and orders on the books are comparatively few. O f these, the greater part are for delivery beyond 90 days and even well into the second quarter o f 1924. Individual orders are smaller than they were in December, but this is entirely sea sonable. Prices are firm and have not changed during the past month. In one instance, prices were re ported to be weak and lower. Stocks o f cement are from moderate to light, but are increasing in anticipation o f the spring demand. Supplies o f raw materials are moderate and are for the most part stationary. Stocks o f cement in the Third Federal Reserve District at the end o f December were estimated at 1,831,000 barrels, as compared with 2,245,000 barrels on the corresponding date in 1922. In the entire country, 10,581,000 barrels were estimated to be held in storage, as against 9,108,000 barrels at the close o f December, 1922. PRO D U CTIO N OF CEMENT* 1923 September................................ O ctober..................................... Novem ber................................ 1922 3.293.000 bbls. 3.342.000 “ 3.139.000 “ 2.553.000 “ 3,124,000 bbls. 3,922,000 “ 2,984,000 “ 2,406,000 “ *As estimated by the Geological Survey. Manufacturers are operating at an average rate o f something over 80 per cent o f capacity, and though many are running on full time, as they were last month, others have curtailed output to some extent. Produc tion o f cement in the country during 1923 is estimated 14 T he B R u s i n e s s F ebruary e v i e w BUILDING PERMITS Third Federal Reserve District December, 1922 December, 1923 January to December, inclusive 1922 1923 Operations Permits Estimated cost Permits Operations Estimated cost Permits Estimated cost Permits Estimated cost Allentown........... A ltoona............... Atlantic C ity*.. . Camden............... Harrisburg.......... Lancaster............ Philadelphia. . . . Reading............... Scranton*............ Trenton............... Wilkes-Barre*.. . W illiamsport*... Wilmington........ Y ork .................... 43 68 164 88 34 32 814 96 82 111 49 38 62 53 72 68 164 139 39 40 1,180 103 82 157 49 38 62 53 $319,300 86,785 416,379 412,349 70,125 277,615 5,298,995 123,450 461,325 704,496 259,565 33,205 263,356 68,585 20 67 313 51 29 17 757 37 74 56 43 24 63 38 20 72 313 56 38 17 1,192 87 74 64 43 28 99 38 $126,650 267,915 751,693 284,295 145,500 59,300 7,967,360 80,850 353,300 141,085 289,374 18,788 130,215 23,476 1,032 1,865 2,706 1,286 889 900 14,513 3,020 1,492 1,814 1,152 1,032 1,155 1,443 $5,064,370 889 3,053,069 1,773 9,373,512 3,878 8,121,243 1,193 7,389,345 900 3,811,930 792 123,511,935 14,477 4,382,980 3.127 3,795,984 1,394 7,018,235 1,454 3,301,698 1,317 1,224,954 1,036 3,776,905 1,051 2,153,414 1,379 $3,351,013 3,309,042 8,975,069 4,343,192 3,873,640 2,641,065 114,880,540 4,790,901 4,496,329 4,315,463 4,165,880 1,535,615 2,824,709 1,286,205 Totals.............. 1,734 2,246 $8,795,530 1,639 2,141 $10,639,801 34,299 $185,979,574 34,660 $165,238,663 ♦Operations not reported. NEW BUILDINGS AND ALTERATIONS 1922 1923 New buildings Operations Allentown........ Altoona............. Camden............ Harrisburg........ Lancaster.......... Philadelphia. .. Reading............ Trenton............ Williamsport*. . W ilm ington.. . . Y ork .................. 62 18 97 34 18 759 40 138 22 43 28 $294,400 56,989 386,535 66,175 260,800 4,772,160 78,650 696,811 30,095 233,191 64,665 Operations Estimated 33 18 47 29 10 421 33 93 22 43 28 New buildings Alterations cost 10 50 41 5 22 393 63 18 16 19 25 Estimated cost 10 50 42 5 22 421 63 19 16 19 25 $24,900 29,796 25,814 3,950 16,815 526,835 44,800 7,685 3,110 30,165 3,920 Operations 10 25 32 24 9 365 16 51 14 53 13 Estimated cost 10 30 37 33 9 788 16 43 16 89 13 $112,400 256,705 276,410 134,000 33,300 7,520,340 36,675 17,725 15,955 115,018 9,445 Alterations Operations 10 42 19 5 8 392 71 13 10 10 25 10 42 19 5 8 404 71 13 12 10 25 Estimated cost $14,250 11,210 7,885 11,500 26,000 447,020 44,175 23,360 2,833 15.197 14,031 ♦Operations not reported. at 137,377,000 barrels, o f which 9,997,000 barrels were produced in December. This represents an increase o f 22.587.000 barrels over the total for 1922, and o f 1.326.000 barrels over the output in December o f that year. In this district, the December production was 2.553.000 barrels, as against 2,406,000 barrels during tbe corresponding month o f 1922. The table below gives the district output for the past four months and for the similar periods o f the year before. The supply o f both skilled and unskilled labor is generally sufficient. In only one instance is there re ported any scarcity o f workers. Collections are from fair to good and have changed but little from either those o f December or those o f January, 1923. The call for paint is little more than fair and is even reported by some dealers as being poor. The demand is lighter than it was at Paint this time last month, and also than in January, 1923. Sales o f white lead are fairly good, but certain grades o f dry colors are moving slowly, because recent energetic competi tion among manufacturers has made purchasers hesi tate to place orders. The market for most o f the minor lines o f paint materials, such as casein and whiting, is quiet. Prices in general are firm and in some instances are higher than they were during December. The rising price o f pig lead resulted in the advancing o f quota T 1924 hird F e d e r a l R tions for lead pigments, but colors in oil, and some grades o f dry colors, are quoted at the prices existing last month. Quotations for linseed oil are steady, and the spot price o f 91 cents per gallon (tank car) pre vails in this market. Stocks o f finished goods are from moderate to heavy and are increasing, but supplies o f raw materials, though either normal or heavy, are stationary. Manu facturers reporting in this district state that o f the orders they have already taken, about 70 per cent are for either immediate delivery or for shipment within 60 days. Factories are operating at a lower rate than they were during December, and at present the average is less than 60 per cent. One large manufacturer states that production has been adjusted to the demand for the time being and that for this reason operations have been curtailed. The supply o f both skilled and unskilled labor is therefore adequate, and in one in stance the latter is reported to be plentiful. Collections are only fair and in some cases poor. They are not as prompt as they were at this time either last month or last year. The demand for electrical supplies is from fair to good, and though it has changed but little since last month, is generally considered Electrical supplies to be better than it was in D e cember, 1922. Inquiries regard ing estimates for future work are numerous, and on this account contractors are inclined to be optimistic. One retailer observes that his business has been hurt by the cheaper chain stores, which have entered the electrical fixture trade, and which by reason o f their great purchasing powers, are easily able to undersell the average dealer. Requests for radio equipment are in fair volume, and supplies for house wiring are sell ing well. In most o f the orders taken, deliveries are specified for within 60 days, but in others for from 60 to 90 days. e s e r v e D i s t r i c t 15 has improved, though sales o f plates are still small. According to data compiled by the Department o f Com merce, December sales by 117 structural steel fabri cators throughout the country totalled 181,741 tons, as against 122,573 tons booked in the preceding month, an increase o f 59,168 tons. The demand for hardware, steel sheets, and iron bars is fair, and is about the same as it was during the middle o f December. H ard ware dealers, builders, and boiler shops are the chief purchasers. Coal mines and railroads, too, are taking sizable quantities. Machinery and tools are moving slowly, and orders are somewhat fewer than they were at this time last month. Manufacturers are momen tarily expecting a better call for these products on account o f the increased production schedules in the automobile industry. Sales o f iron and steel castings were fairly light until the first o f the year, after which the demand improved. In general, the market is char acterized as fair, and though some producers say it is good, others report that buying has been extremely limited. The call for scrap is better than it was at this time last month, but that for wire and wire rope is unchanged. Miscellaneous steel products, such as light drop forgings, nails, and specialty stampings, are in good request, and sales o f these have increased since January 1. Quotations for scrap, cast steel, and a few other products are higher than they were a month ago, and prices are firm. F or the first time since July, the Iron Age's weekly composite price o f finished steel, published on January 15, showed an increase, an ad vance o f 14 points to 2.789 cents per pound. On the same date, quotations for number 2 Valley furnace pig Prices are firm, and except those on a few radio and wiring specialties, are the same as they were at this time last month. Stocks o f finished goods are, in gen eral, moderate, and compared with those on hand a month ago, are either stationary or decreasing. Collections are fair; but comparisons with those o f last month or o f the corresponding period o f 1922 are difficult, as the opinions o f firms reporting to us differ widely. IRON AND STEEL Since the beginning o f the year the demand for iron and steel has improved, and manufacturers are in clined to be optimistic in view o f the fact that builders and railroads are making numerous inquiries on goods they will need in the near future. Consumers o f pig iron are taking larger tonnages than they have for several weeks, and confidence in the market is now stronger. The call for plates and structural shapes iron increased 50 cents to $22.50 per ton, and several other advances were recorded over the country. The price o f Philadelphia 2 X pig iron, however, remains F ebruary T he B u s i n e s s R eview i6 unchanged at $24.26 per ton. In the preceding chart is depicted the price trend of open hearth steel billets and of 2X foundry pig iron over a period of five years. Production of both steel ingots and pig iron de clined during December, but the output in the entire year was considerably greater than it was during 1922. The December production of steel ingots totalled 2,843,764 gross tons, as compared with 3,113,804 in November, a decrease of 270,040 tons. In 1923, 43,226,955 gross tons were produced, representing an in crease of 8,658,537 gross tons over the total for the preceding year. Pig iron production during December was estimated at 2,920,982 gross tons, as against 2,894,295 in November, and although the total figure for December is greater, if the number of working days in each of the two months is contrasted, the average daily output was less than it was during November. In 1923, 40,059,308 gross tons of pig iron were pro duced, a total exceeding that for the preceding year by 13,178,925 gross tons. The number of furnaces in blast on January 1 was 231, the same as on Decem ber 1. In this district on the first of this month, 35 furnaces were in blast and 31 idle, a loss of one from the first of December. Corporation companies are operating at close to 85 per cent of capacity, and the rate for the industry as a whole is somewhat higher than it was at this time last month. Unfilled orders of the United States Steel Corporation, which had been steadily declining since March, rose in December to 4,445,339 tons, an increase of 76,755 tons over the total for the preceding month. The supply of both skilled and unskilled workers is in general adequate, though in a few cases some scar city is reported. On December 15, there were 14,564 employees on the payrolls of 74 foundries and machine shops in this district, or a decrease of 2.2 per cent from the number of workers on November 15. Average weekly wages rose from $27.77 to $28.33, a gain of 2.0 per cent. Collections are from fair to good, and though reported slower in a few instances, have changed but little since this time last month. it is to commerce that shipbuilders must look for the demand for vessels, and since in 1922 there was a suffi cient number of ships to carry the available merchan dize to and from foreign shores, no additional vessels were required. At the present time, however, many new ships are needed to replace old vessels in the coast wise and inter-coastal trade, water traffic is increasing on the Great Lakes, and the government is taking steps to convert about fifty steamships into motorships. These facts point to a revival of business in the indus try, especially for those yards that are equipped with the necessary facilities to manufacture suitable types and to install the modern Diesel engines. At the present time shipbuilders in this district are engaged chiefly in repair work, and in one case the marine department is almost entirely shut down. There has been no recent change in prices, although quota tions for some grades of raw materials are lower than they were at this time last year. There is no scarcity of either skilled or unskilled labor in this district. According to figures on employment reported to this bank, the number of workers on the payrolls of nine shipbuilding companies was .11.5 per cent greater in December than in November. Since actual work on ship construction is at a low point, this increase in employment indicates that the yards are turning on an increasing scale to the production of other commodities. AUTOMOBILES During the last quarter of 1923 total sales of auto mobiles in this district declined, as is usual at the PRODUCTION OF AUTOMOBILES SHIPBUILDING The close of 1923 marked the end of a very unsatis factory business year in the shipbuilding industry, and according to many interested observers the market created during the war is now thoroughly deflated. American shipbuilding statistics for 1923 show that production has declined 96 per cent from the record year of 1918. Among the factors that have brought about these results are the depression in foreign trade and the placing on the market of a large number of freight vessels by the Shipping Board, which latter procedure has greatly reduced the number of orders for new ships. But the most important cause is the prevailing uncertainty in foreign affairs. Obviously J a s o n d j 1921 f h a m j j a s o m 1922 & j f h a h j j 1923 Production of both passenger cars and trucks was considerably greater in each m onth of 1923 than In the corresponding m onth of the year before. Source— Department of Commerce beginning of the winter season, but a few dealers report that their sales were greater than they were in the preceding three months. All are agreed, however, that since the first of the year demand has improved and 1924 T hird F e d e r a l R that the number o f inquiries they are receiving point to a good market during the first quarter o f 1924. In practically all cases the call for automobiles in the last three months was better than it was during the corresponding period o f the previous year. Closed cars continue to be in greatest request, and the recent automobile show in Philadelphia has stimulated interest in some o f the new models. Factories are able to make reasonably prompt deliveries, though in a few instances orders are being filled with some difficulty. Prices for the most part are the same as those quoted during the third quarter o f last year, and the few advances that are reported are on the new models. Production o f both passenger cars and trucks in 1923 was greater than in any year in the history o f the industry. The Department o f Commerce has compiled figures, based on the reports o f 186 manufacturers o f passenger cars and trucks, which show that in 1922 2,339,768 passenger cars and 246,281 trucks were pro duced, or a total o f 2,586,049 motor cars. In 1923, 3,636,599 passenger cars and 376,257 trucks were pro duced, an increase o f 1,426,807 cars over the total number o f vehicles manufactured during 1922. Out put in December totalled 275,268 passenger cars and 27,875 trucks, as against 284,921 and 28,066 during November. The table below gives production figures for both types o f automobiles for each o f the 12 months in 1922, and for the corresponding months in the pre vious year. Trucks 1923 January. . February. M arch .. . . April........ M a y ......... June......... July.......... August. . . September O ctober... November December. 1922 1923 223,819 254,773 319,770 344,639 350,410 337,362 297,330 314,373 298,911 335,023 284,921 275,268 81,696 109,171 152,962 197,224 232,462 263,053 225,086 249,492 187,694 217,566 215,352 208,010 19,720 22,161 35,260 38,056 43,678 41,145 30,663 30,829 28,638 30,166 28,066 27,875 1922 9,576 13,350 20,022 22,640 24,097 26,298 22.056 24,692 19,462 21,795 21,949 20,354 ^Figures compiled by the Department of Commerce. Collections are from fair to very good. COAL The sudden drop in temperature during the first part o f the month was responsible for a quickening o f the demand for domestic sizes o f Anthracite anthracite, but soon after, the call subsided and at present is some what less than it was at this time last month. The D 17 i s t r i c t market for steam sizes, which has been extremely quiet for some time, has improved slightly, and this is espe cially true o f barley coal. Prices have undergone practically no change during the past month, aside from reductions that may have been made as concessions to purchasers o f large tonnages. Spot quotations for egg and stove sizes (Company coal) are from $8.75 to $9.25 and from $8.90 to $9.25 per ton, f.o.b. mines, respectively, which are the same as those prevailing at this time last month. The spot prices o f Company coal in the steam grades are also unchanged. Barley is listed at $1.50 per ton, f.o.b. mines, and rice coal at $2.50 per ton. Production during the entire year o f 1923 totalled approximately 95,000,000 tons, an increase o f about 74 per cent over the output in 1922. During the last week in December production declined sharply to 1,236,000 tons, a falling o ff o f 754,000 tons from the figure for the previous week. The observance o f Christmas and the partial observance o f the day before and the day after were responsible for the decrease. Production during New Y ear’s week was also noticeably lo w ; but since then output has substantially increased again, as is shown in the following table giving pro duction figures for the last four weeks. F or purposes o f comparison, the output during the corresponding four weeks o f last year is also given. PRODUCTION OF ANTHRACITE* Week Ending PRODUCTION OF AUTOMOBILES* Passenger cars e s e r v e December 2 2 ....................... December 2 9 ....................... January 5 ........................... January 12........................... 1923-24 1922-23 1.999.000 net tons 2.065.000 net tons 1.236.000 “ “ 1.560.000 “ “ 1.436.000 “ « 1.725.000 “ “ 1.840.000 “ “ 2.113.000 “ “ *As estimated by the Geological Survey. Mines in this district are operating at close to capac ity, and the supply o f skilled miners is, in most cases, adequate. However, there is some scarcity o f unskilled workers and o f miners’ helpers, especially o f those who are needed for construction work and other labor neces sary to the development o f the mines. Collections are fair and are much the same as they were during last month and in January, 1923. The bituminous market continues to be dull, and the demand is little or no better than it has been for the past three months. A s was Bituminous true o f the anthracite market, the recent cold spell revived interest to some extent, but it was temporary and in no case resulted in any optimism among mining interests. Most operators reporting in this district regard the situa tion as extremely critical and state that the lack o f call for bituminous is causing severe losses to those who are compelled either to curtail operations dras tically or to accept prices below the cost o f production. T i8 he B u s i n e s s Spot prices are from 50 cents to $1.00 lower than contract quotations, and although the form er are the same as they were at this time last month, they cannot be characterized as firm. In many instances quotations have been shaded, and in others, buyers have secured tonnages at practically their own prices. On January 14, pool 10 coal was quoted in Philadelphia at from $1.70 to $2.00 per net ton, f.o.b. mines, as against $5.25 a year ago. In the chart below, a comparison is made between prices o f mine-run bituminous and steam-size anthracite over a period o f ten years. qu otation s have fluctuated m u ch m ore violently than have anthracite Sources— War Industries Board and Coal Age It is estimated that 545,300,000 tons o f bituminous were produced in 1923, an increase o f 123,032,000 tons over the output in the previous year. This figure has been exceeded only three times in the history o f the industry, in 1917, 1918, and 1920. The output during the last week in December declined to 6,713,000 tons, which was a loss o f 3,832,000 tons from the figure for the previous week. The decrease was due to the stoppage o f work during the holidays. Since the first o f the year, however, production has greatly increased, as is shown in the following table giving the output for the last four weeks and for the corresponding four weeks o f last year. A s is to be expected, a considerable portion o f the coal mined has been going into stock or has been sold under contract to railroads and industrial com panies who are accumulating surplus tonnages. It is es timated that 65,000,000 tons are held in storage throughout the country, or more than 6 weeks’ supply at the present rate o f output. V ery few mines in this district are operating at full schedule. Many are running but two or three days R F ebruary e v i e w PRODUCTION OF BITUMINOUS* Week ending 1923-24 1922-23 December 2 2 ................... 10.543.000 net tons 11.042.000 net tons “ 10.495.000 “ “ December 2 9 ................... 6.713.000 “ “ “ 10.529.000 “ January 5 ....................... 9.068.000 “ “ 10.993.000 “ January 12....................... 11.921.000 “ “ *As estimated by the Geological Survey. a week, and others have reduced the number o f miners to a third o f the usual complement. One operator states ti.at during December there were 350 bituminous opera tions idle in Central Pennsylvania and that this was caused almost wholly by the lack o f demand. Under these circumstances the supply o f labor is in prac tically all cases sufficient, and in many instances, plentiful. The demand for coke is fair, and no noteworthy changes have occurred in the market during the past month. On December 31, the Coke price o f furnace coke was re duced 25 cents to $3.75 per net ton at the ovens, but this was expected and conse quently brought forth little comment. For several weeks, spot quotations for foundry grades have been steady at $4.75, though some o f the best grades are selling at as high as $6 per net ton. Contract prices are from 25 to 50 cents higher than spot quotations, and some contracts for substantial tonnages o f furnace coke were recently closed at $4.25 per net ton. Production o f beehive coke increased somewhat during the week ending December 22, but on account o f the observance o f Christmas and New Year's Day, output declined in the two succeeding weeks. In the table below, figures are given showing the output in tons for each o f the last four weeks and for the cor responding four weeks o f last year. PRODUCTION OF BEEHIVE COKE* 1923-24 December 2 2 ....................... December 2 9 ....................... January 5 ........................... January 12........................... 1922-23 251.000 net tons 221.000 “ “ 236.000 “ “ 248.000 “ “ 281.000 net tons 260.000 “ “ 223.000 “ “ 323.000 « H *As estimated by the Geological Survey. Output of beehive coke in December totalled 1,063,000 net tons, compared with 2,103,000 net tons during N o vember. In 1923, 17,915,000 net tons were produced, an increase o f 9,885,000 tons over the output o f 1922, which, owing to the bituminous strike in that year, was far below normal. 1924. T hird F e d e r a l R COTTON In spite o f the strong statistical position o f raw cotton, the general trend o f prices during the past month has been downward. Spot Raw cotton middling declined from 37.25 cents a pound on December 26 to 32.90 cents a pound on January 21. Factors affect ing demand and consumption have assumed a position o f major importance in determining price changes since the supply o f cotton is now more or less accurately known. The continued dulness in cotton goods and the uncer tainty as to the future consumption o f raw cotton are o f especial significance to the trade. Reports o f cur tailment in both northern and southern mills because o f inability to get business are increasing. Evidence of reduced operations are to be seen in government statistics on domestic consumption. During December the quantity o f cotton consumed was not only 70,071 bales less than that during the preceding month, but 67,782 bales smaller than that consumed during Decem ber, 1922. This is indicated in the chart on page 22. However, total domestic consumption during the five months ending December 31, was but slightly smaller in 1923 than in 1922, while exports were 14.4 per cent greater. But supplies o f cotton in this country have been materially reduced, and on December 31, 1923, stocks in consuming establishments were 15.3 per cent, and those in public storage and at compresses 13.3 per cent, smaller than they were a year ago. The w orld’s takings o f American cotton are still running considerably behind those o f a year ago, as is shown by the accompanying figures compiled by the New York Cotton Exchange. e s e r v e D i s t r i c t 19 placement cost. In this respect the situation is little d if ferent from what it has been for some time. However, few spinners report that demand is somewhat more active than it was last month, though opinion differs on this point. In general, sales still represent small quan tities for current use. Some dealers find that yarns for towels, upholstery, and tapestry are selling poorly, but that the call from mills making plush is fair. In a few cases, a better request for knitting yarns for heavy-weight underwear is reported. a Stocks o f yarn in the hands o f dealers are for the most part light, but spinners’ stocks are moderate. O f the orders on the books o f both spinners and dealers, a large majority are for delivery within the next two months. Spinners in this district are running only about 75 or 80 per cent o f their equipment, and reports indicate that the supply o f labor exceeds the demand. Mainly because o f weakness in raw cotton, many dealers have made concessions on yarns and as com pared with prices prevailing during the early part o f December, quotations on January 21 showed a de crease o f from 2 to 4 per cent on combed yarns and from 8.5 to 10.5 per cent on carded yarns. Prices, moreover, are rather irregular. Owing to the sluggish demand and to resistance to prices on the part o f buyers, the margin between quotations on raw cotton and on yarn has narrowed since last spring, as is indicated by the accompanying chart. During March, 1923, prices COTTON PRICES SUPPLY AND TAKINGS OF AMERICAN COTTON* In Bales Season of 1923-1924 Season of 1922-1923 Season of 1921-1922 Visible supply, American, at end of previous season (July 31) 869,968 1,968,159 4.112,651 Crop in sight, American on Jan uary 18...................................... 8,983,915 8,825,593 7,266,450 T o ta l.......................................... 9,853,883 10,793,752 11,379,101 Visible supply, American, on January 18............................... 3,253,062 3,512,870 4,466,034 W orld’s takings of American to January 18............................... 6,600,821 7,280,882 6,913,067 Since M arch, 1923, the m argin between quotations on raw cotton and those on yarns has narrowed, but it is still greater than it was during 1921 and m ost of 1922. Sources— Textile World, Cotton Facts and Journal of Commerce * Figures compiled by New York Cotton Exchange. Cotton yarns continue in dull request, dealers stating that the principal reason for unsatisfactory business is the fact that manufacturers o f Cotton yarns cotton goods are finding it diffi cult to merchandise their products even at prices which, as a rule, do not represent re o f carded two-ply skeins were about 32.6 cents a pound higher than those on spot cotton, but during Decem ber, quotations on yarn were only about 25.4 cents a pound higher. It is noteworthy, however, that the margin between raw cotton and yarn prices is still greater than it was in 1921 and in most o f 1922. Collections range from fair to good. T 20 he B u s i n e s s Conditions in the market for cotton goods are, if anything, more quiet than they were last month. The situation is in decided contrast Cotton goods with that o f a year ago, when cotton fabrics were selling ac tively for both immediate and future delivery. A t present most o f the business in both gray and finished goods is for shipment within the next 60 days, and spot demand is dull. Buyers appear to doubt their ability to sell goods at current prices, and the result is that they are purchasing very cautiously and are asking for concessions. Some producers find that resistance to quotations on staple goods is especially noticeable. Operations in the cotton goods industry in this dis trict continue to be generally curtailed, although a few plants are running at capacity. A t the present rate o f production, unfilled orders will insure operations for only 30 or 60 days. Stocks o f finished goods are for the most part moderate, but in some instances they are reported to be heavy. The supply o f labor is either sufficient or plentiful. Mainly because o f recent weak ness in prices o f raw cotton, in addition to poor demand, quotations on gray goods by second hands have been reduced during the past month. Prices o f goods in the finished state, however, are firm and unchanged. Collections are fairly good. Competition o f unbleached cotton cloths produced in foreign countries, principally in Great Britain, has in creased in domestic as well as foreign markets. Evidence o f this is to be seen in larger imports and smaller exports o f unbleached cloths, illustrated in the accompanying Source— Department o f Commerce chart. In spite o f the tariff, the total value o f imports o f unbleached cloths in 1923 was 130.5 per cent greater than that o f imports in 1922. But the total value R F ebru ary e v i e w o f exports was 28.8 per cent smaller in 1923 than in 1922; and during most o f 1923 the value o f imports o f unbleached goods substantially exceeded that o f ex ports, though the reverse was true during the preceding four years. In contrast with larger importations o f unbleached cloths, imports o f bleached goods show little gain and are still less in value than exports. WOOL Although demand for raw wool in the Philadelphia market is still only moderate, sentiment among the wool trade has decidedly improved. Raw wool Dealers point to the fact that in spite of relatively poor support by buyers from the United States, raw wool markets in foreign countries are firm and quotations are advancing. M oreover, owing to comparatively small imports dur ing the past several months and to considerable re-ex porting, stocks o f wool in this country have been materially reduced. In the local market supplies o f raw wool in the hands o f dealers are reported to be mod erately light. And though fine wools continue in dull request, medium and low grade wools are selling more actively. Some dealers find that noils are in good demand, and others report a better call for carpet wools. However, in view o f the fact that sales o f woolen and worsted goods are unsatisfactory and that business dur ing the coming heavy-weight season is very uncertain, mills are still conservative in ordering for their future needs, and demand fo r wool is not as good as it was a year ago. It is reported that during the past month there has been more activity among raw wool dealers than among mills. A s a result o f the above factors, and notwithstanding resistance to prices on the part o f buyers, quotations on raw wool in domestic markets have strengthened, in creases being most apparent on quarterblood wools. In a number o f cases, present prices are reported to be about the same as those o f a year ago. But quotations in the United States still compare unfavorably with those in foreign countries, and as the following table shows, imports have been relatively small. During the second half of 1923 imports of raw wool were not only 81.2 per cent smaller than imports during the first half, but 67.8 per cent smaller than during a corresponding period in 1922. However, because o f exceptionally large imports during the first half o f 1923, total imports dur ing the past year were somewhat greater than in 1922. Several spinners report a fair request for yarns, but on the whole the demand continues to be rather quiet Woolen and worsted yarn, f n? haS l ° Wn, l ' ttle r change sinc! la st, month; Manufacturers o f woolen and worsted fabrics are for the most part waiting for greater activity in piece goods, their attention being centered on openings of fall lines. In some instances producers have covered T 1924 hird F e d e r a l R IMPORTS OF RAW WOOL INTO THE UNITED STATES* (In pounds) Month January .. February. M arch .. . . April........ M a y ......... June......... July.......... August. . . September O ctober. . Novem ber, December. Total. 1923 1922 56,312,747 57,110,596 63,706,051 77,047,391 47,172,652 30,129,497 13,422,377 10,288,536 7,882,870 9,566,009 9,814,637 11,415,570 22,151,546 27,834,187 43,808,872 38,988,214 32,955,949 16,940,447 33,590,515 34,472,469 27,891,522 25,260,513 26,961,700 45,817,004 1921 21,169,480 42,885,968 98,103,098 65,402,831 14,744,598 5,951,755 9,396,864 15,866,744 14,592,459 9,085,706 10,946,395 12,519,853 1920 41,950,071 26,103,165 33,031,931 54,085,770 13,388,934 21,079,627 9,444,610 14,447,810 11,736,534 8,706,292 12,250,505 13,392,392 393,868,933 376,795,485 320,665,751 259,617,641 * Department of Commerce. part of their requirements for the heavy-weight season, as is indicated by the fact that a number o f spinners have booked orders for delivery after the next 60 days. But the majority o f manufacturers are very conservative in making commitments for the future, preferring to await developments in fall business. Consequently, little activity in weaving yarns has been manifest. Knitting yarns, too, are as a rule in dull request. Most spinners are operating mainly on orders, and supplies o f yarn in their possession are moderately light. A few spinners, however, report that stocks are heavy and are increasing. Operations in this district vary, some spinners running only 60 or 75 per cent o f their equipment, while others are operating at capacity. W ool consumption in this district as shown by the replies o f 84 establishments, was 9.9 per cent smaller in December than in November. The supply o f labor is reported to be either sufficient or plentiful. Owing to considerable resistance to prices on the part of buyers, spinners have found it difficult to raise quo tations on yarn in keeping with higher prices for raw material, and as compared with those o f last month, quotations are in general unchanged. But though in some instances concessions are still obtainable, a firmer tendency is noticeable. Many spinners find that collec tions are fairly good, but some state that buyers are not taking advantage o f the discount for cash. W ith the exception of a few products such as novel ties and fancy fabrics for women’s wear, which are u, T , , selling quite actively, woolen and Woolen. and , f j1 , V, „ , worsted goods continue in dull worsted goods v ^ T, , . ° request. Demand is not as strong as it was last month, and repeat orders for light-weight fabrics are much smaller than they were a year ago. At the present time buyers show little disposition to pur chase for the future, most o f the business being in goods which, in many cases, can be supplied promptly from stock. The call for bolivias is especially quiet, and some producers report that stocks are heavy, though e s e r v e D i s t r i c t 21 operations are greatly reduced. Cassimeres for men’ s wear are in p ool request. O f the orders on the books o f manufacturers, a large majority are for delivery within the next sixty days. A t present, interest is centered upon openings of heavy-weight lines for next fall, and producers hope to book considerable business for future shipment. Manu facturers have prepared their samples, but as usual are waiting for the largest company to take the initiative in the showing o f its lines and the naming o f its prices. In view o f the unsatisfactory business in fabrics for spring, and o f the opposition o f buyers to advances, speculation as to the prices that will be quoted has been especially keen. Present quotations are for the most part reported to be firm and in general unchanged from those o f last month. In a few cases increases have oc curred. On the other hand, resistance to prices on the part o f buyers and the desire to liquidate surplus stocks, have led some producers to grant concessions. A number o f manufacturers are carrying heavy sup plies o f finished goods, but the m ajority find that stocks are moderate or light. A t present, stocks are either stationary or are decreasing, since most manufacturers have adjusted their production schedules to demand and are running only part of their equipment. The average for this district ranges from 60 to 75 per cent o f capacity. Supplies o f raw materials are moderately light and are decreasing. Largely because o f curtail ment o f operations, labor, which a year ago was rather scarce, is now in sufficient or plentiful supply. Collections are fair. CLOTHING Demand for men’s clothing has slackened considerably during the past month, and although a few manufac turers report a fair request for Men’s wear heavy-weight merchandise for January sales, the majority state that business is poor. Retailers have ordered very con servatively for their spring requirements, and many pro ducers find that the volume o f advance business which has been placed is much smaller than it was last year. Clothing manufacturers give various reasons fo r the unsatisfactory demand, the most common being the un seasonable weather, which is reported to have hindered sales by retailers and to have delayed the liquidation of their stocks. Overproduction is also mentioned. H ow ever, by offering attractive values and prices, and by in creased selling effort, a few producers have succeeded in booking a satisfactory number o f orders for light-weight clothing. Spring suits are for the most part priced about the same as they were last year. But buyers have offered considerable resistance to prices, and more than usual have compared the quotations of different manufac turers, with the result that they have won some con cessions. In order to move surplus stocks o f fall mer- T 22 he B chandise, numerous producers have reduced prices on heavy-weight clothing during the past taonth. Although with a few manufacturers stocks o f finished goods are heavy, with the majority they are moderate. A t present, however, they are being increased in prepara tion for the shipping season for spring suits, which be gan this month. Supplies o f raw material are mod erately light. Operations in the men’s clothing industry in this district show marked variation, but curtailment is general, and many plants are running only from onehalf to three-quarters o f their equipment. Reports in dicate that the supply o f labor is either sufficient or plentiful. Collections are slower than they were last month and as a rule are unsatisfactory, especially among the smaller producers. Conservatism on the part o f retailers in ordering spring goods has been a feature of business in shirts as well as in men’s suits. Shirt Shirts makers report that a number o f buyers refused to commit them selves for their usual needs prior to the holiday season, with the result that the volume o f business received is below expectations. Consequently, a number o f pro ducers have sent their salesmen out again this month, in the hope o f increasing their original bookings. The vogue for white shirts as distinguished from colored has continued, and broadcloth is especially popular. Spot demand has for the most part been rather quiet during the month. Some factories are running at or near capacity in preparation for deliveries of spring merchandise, and as a result, stocks of finished goods have increased and are reported to be moderately heavy. Manufacturers state that stocks o f raw materials are o f medium size, and that the supply o f labor is adequate. In spite o f the increased cost o f raw materials, shirt prices show little change from those o f last year. Collections, though fair, are not as prompt as they were a year ago. SILK During the past month, prices o f raw silk in the New Y ork market have fluctuated within a comparatively narrow range. On December 26, Rato silk quotations on Kansai double ex tra cracks ranged from $8.25 to $8.35 per pound, on January 11 from $8.10 to $8.15, and on January 21 from $8.20 to $8.25. Business in raw silk, as a whole, shows some improvement, but de mand has varied, being at times moderately active and at others rather quiet. Producers, in general, are wait ing for greater activity in finished goods and are purchasing raw silk mainly for immediate needs. Fluc tuations of the yen in foreign exchange, moreover, has retarded trade. Statistics of the Silk Association o f America indicate the curtailment that has occurred in domestic silk mills. R u s i n e s s F ebru ary e v i e w From July 1 to December 31 total deliveries to A m er ican mills were 17.4 per cent smaller this year than last. And during December, deliveries to mills reached the lowest point since February, 1922, as the accompanying chart illustrates. During the six months ending Decem ber 31, imports of raw silk were 18.9 per cent smaller in 1923 than in 1922. Although supplies o f raw silk in the hands o f producers are moderately light, stocks in TEXTILE MLN Io S LI O r PUD ONS 400 300 200 R ow CONSUMPTION C ot v ' 1O O 50 40 3 0 2 0 Row W oo) / 1 O 5 4 3 Row — 2 1917 1916 J J 1919 S il 1 t »,\ F v» i v. 1920 1921 *»A .v > V” y 1922 1923 During 1021 and 1922 consum ption of raw cotton, wool, and silk increased, but during 1923 the trend was downward. Prior to July, 1920, the silk line represents average im ports for each fiscal year, but after that m onth it represents deliveries to m ills Sources— Department of Commerce and Silk Association of America warehouses on January 1 were larger than they have been at any time since March 1, 1923. It is noteworthy, however, that on January 1 stocks in warehouses were 16.7 per cent smaller than they were a year ago. Conditions in the silk goods industry have shown im provement during the past month. Some producers find that this is manifested more Silk goods in the better feeling which is noticeable in the trade than in larger sales, but others report a more active demand. This, however, is o f only moderate proportions, and buyers are still conservative in making commitments for the future. A t present, staple fabrics are selling poorly, most o f the interest o f buyers being centered on novel ties and fancy goods for spring. Many plants are still operating on curtailed schedules ranging from 45 to 55 per cent o f capacity. A few manufacturers, however, are running most o f their equipment. Stocks of finished goods in the hands o f producers as a rule are heavy, while supplies o f raw materials are moderately light. The supply of labor is in general adequate. Buyers continue to offer con siderable resistance to prices, especially on skein-dyed fabrics, and a few reductions have been m ade; but quo tations for the most part show little change since last month. Collections are fair. T 19 2 4 hird F e d e r a l R HOSIERY Although the hosiery trade as a whole is not active, a slight improvement is noted in the demand for silk hosiery for women. Both full-fashioned and seamless chiffons have sold well, and medium-weight silk stock ings to retail at about $2 per pair for full-fashioned and at $1 per pair for seamless, as well as silk and fibre mixtures, have been in fair request. Fluctuations in the price o f thrown silk have been less marked than during recent months, and quotations have been about the same as prevailed before the Japanese earthquake. This stability has enabled some manufacturers to reduce their quotations for silk hosiery. For men’s half-hose the demand has been light for all fabrics, but it is probable that fibre and silk in combina tion have had a better market than other descriptions. On cotton hosiery a number o f price increases are reported, but except in some lines o f children’s and misses’ wear, nearly all manufacturers report that busi ness has been unsatisfactory. Cotton yarns have fluc tuated considerably in price and made business at a profit difficult. Stocks o f finished hosiery in the mills on January 1 were reported by a majority o f the firms to be larger than they were a year previous, and only a few firms stated that their stocks were lower. Collections vary from extremely poor to very good, but in the majority o f cases are said to be either fair or good. The Department o f Commerce reports that in 381 mills situated throughout the United States, production H O SIE R Y IN D U S TR Y T h ird Federal Reserve D istrict In terms of dozens of pairs Dec., 1923 Dec , 1923 compared with compared with Nov., 1923 Dec , 1922 Firmsselling tothewliolesale trade; Number of reporting firms— 28 Product manufactured during month finished product on hand at end of m onth............................... Orders booked during m onth........... Cancellations received during month Shipments during m onth................... Unfilled orders on hand at end of m onth.............................................. -1 8 .8 % - + 5 .6 “ - 2 0 .9 “ + 35 .3 « - 4 .9 “ + 28.7 « + 21 .6 “ * - 3 1 .6 “ -1 3 .3 “ + 8 .3 “ - 5 .2 “ - 2.3% 5.5% Firms selling to the retail trade: Number of reporting firms— 10 Product manufactured during month Finished product on hand at end of m onth................................................ Orders booked during m onth ........... Cancellations received during month Shipments during m onth................... Unfilled orders on hand at end of m onth................................................ -1 6 .3 % + 6 .4 “ -4 6 .9 “ + 3 1 .1 “ - 1 4 .7 “ + 18.0“ + 10.2“ + 146.8“ — 7.5 “ -3 0 .4 “ - 2 7 .0 “ e s e r v e D i s t r i c t 23 in November was 1 per cent less than in October. Orders booked also decreased, the loss being 2.3 per cen t; but as shipments decreased considerably, unfilled orders at the end o f November were 11.4 per cent larger than they were at the end of October. Operations in the reporting mills in the Third Federal Reserve District are summarized in the accompanying table. Because of the holidays, production was as usual lower than in November, the loss being 18.8 per cent in the wholesale mills and 16.3 per cent in the retail m ills; it was also slightly lower than in December, 1922. UNDERWEAR Sales of underwear during the past month have been retarded by two widely different circumstances: the open winter, and the fact that the prices demanded are higher than those of a year ago. In heavy weights it is reported that a considerable portion of the 1923 purchases have not passed into con sumers’ hands because o f the mild weather, and this has not only curtailed the fill-in orders, but has had its effect on sales for 1924, for it seems to be a fairly wellestablished fact that a considerable part o f the goods offered for January, February, and even March delivery find their way into consumers’ use in the colder sections o f the country during the present season. Offerings for later shipment are also affected by these conditions, and the higher prices named for second and third quarter delivery have curtailed the bookings greatly. A s com pared with those o f January, 1923, prices are from 5 to 20 per cent higher; the lower figure, however, is named by only a few mills, and for first quarter delivery only. In an effort to keep prices down somewhat, a number o f mills in New Y ork State endeavored to reduce wages 10 per cent, but this action precipitated a strike, which has not yet been settled. Not all o f the mills have formally opened their lines, but nearly all have named tentative prices. In light weights, wholesalers who bought early in the season at prices which cannot be duplicated now and have offered the advantage o f these purchases to retailers, report that even under these conditions sales to retailers are smaller than is usual at this season. Prices have been advanced by some manufacturers during the past month, but others have made no change. A s compared with those of a year ago, however, prices are in many cases from 10 to 15 per cent higher. Resistance to these advances is stated by some makers to be serious. Col lections are from fair to good and are in general satisfactory. In the table on page 24 the reports o f firms in the Third Federal Reserve District are summarized. It will be noted that finished stocks on hand in winter weights are smaller than they were a year ago, but that stocks of summer weights are larger than at that time. Unfilled orders for winter underwear are smaller, but 24 T he B u s i n e s s for summer weights the orders show an increase, as compared with those on December 31, 1922. UNDERWEAR INDUSTRY Third Federal Reserve District In terms of dozens Summer underwear: Number of reporting firms— 11 Product manufactured during month Finished product on hand at end of m onth................................................ Orders booked during month............ Cancellations received during month Shipments during m onth.................. Unfilled orders on hand at end of m onth................................................ Winter underwear: Number of reporting firms— 7 Product manufactured during month Finished product on hand at end of m onth................................................ Orders booked during m on th ........... Cancellations received during month Shipments during m onth................... Unfilled orders on hand at end of m onth................................................ 8.2% + 35.8% 6.1 “ - 23.7 “ + 49.0 “ + 130.2 “ + 7.2 “ 3 .1 " + 326.0 “ + 18.1“ - + 2 4 .8 “ 16.7“ Collections in all lines o f floor coverings are reported as either fair or good, but some manufacturers state they are less prompt than they were a month ago. Continued activity and an increase in price have marked the trading in hides during the month. Packers are closely sold up, and the marHides and skins ket is strong, as is indicated by the f o l l o w i n g table. Hides reached their low point late in November, when the offerings were o f better quality than those recently sold at higher prices. One o f the factors responsible for the advance was the exportation to Europe o f a large quan tity o f hides, estimated at about 300,000. Argentine hides have also risen, and sales have been o f goodly size. • - 36.6% + 5.0% + 9 .1 “ + 408.7 “ - 38 .2“ - 3 8 .8 “ + 138.6“ - CHICAGO PACKER HIDES - 4 0 .5 “ - 2 7 .3 “ +262.3 “ + 15.9“ 48.1“ FLOOR COVERINGS Since the opening o f the year, orders for carpets and rugs have increased somewhat, but the volume o f business is not large, and the majority o f orders call for small lots for either January or February ship ment. The demand continues heaviest for tapestries and the cheaper grades o f Axminsters, but high grade Axminsters are also wanted in fair volume. Mills are for the most part running on the same production schedule as they were a month ago, but some have reduced operations. Stocks o f finished goods in the mills are larger than they were a year ago, and in most cases are moderate, though some manufacturers o f W iltons state that they are heavy. Retailers’ stocks, however, are as a rule reported to be light. A s is usual many o f the orders held by mills called for shipment during January, and only in a compara tively few cases were these either postponed or can celled. Shipments during January, therefore, were larger than those o f the two months previous. Prices are unchanged, and in nearly all cases attempts to buy at lower figures have been unsuccessful. In the retail stores, special sales are now in progress, and pre liminary reports indicate that they are meeting with success. The demand fo r linoleums and felt-base goods con tinues heavy but shows a seasonal slackening in some lines. Plain linoleums have recently not kept pace with inlaid and printed linoleums, but all the factories in this district continue to operate at capacity. F ebruary e v i e w LEATHER Dec., 1923 Dec., 1923 compared with compared with Nov., 1923 Dec., 1922 - R Week ending Nov. 24, 1923 Heavy native steers........................... Heavy Texas steers............................ Butt brands......................................... Branded cow s...................................... Heavy native cows............................. Light native cows............................... Branded bulls...................................... Week ending Jan. 19, 1924 1 3 H cents 11 “ 11 “ 14h£ cents 13 “ 13 “ 7 “ 9 “ 12 “ 12 H “ 9V 2 7 “ l i - i i *4 • * 7M -8 “ The market for calf skins has also advanced, and exports o f these too are said to have been considerable. In November, Chicago packer skins sold at 18 cents and the last sale reported was at 18J4 cents. Sheep skins also are firm, with prices at or near the highest point in recent months. New Zealand pelts are reported to have sold at 50 shillings, the highest price touched for several years; but the falling off in sterling exchange has reduced the cost to the American tanner somewhat. Goat skins declined during the month, but at the low prices reached, considerable trading is reported, and some o f the foreign markets have rallied slightly. Stocks in dealers’ hands in New Y ork are said to have been reduced noticeably. The market for heavy leathers has improved, and prices are in some instances higher than they were last month. The strength o f hides and Leather the improved statistical position o f heavy leathers, illustrated in the following table, are among the causes o f the better ment, but a seasonal increase in the demand for leather by shoe manufacturers has been the chief factor. Production o f backs, bends and sides was the smallest since May, 1922, and that o f belting butts and of offal, sole, and belting the smallest since July o f the same year. It is reported in the trade that stocks at the end o f 1923 will show a further decrease. T 1924 hird F e d e r a l R HEAVY LEATHER* November, 1923, as compared with October, 1923 Production during month Backs, bends and sides................... Belting butts.................................. Offal, sole, and belting.................... - 9.6% -1 9 .3 “ - 1 7 .8 “ Stock at end of month - -5% .3 “ -1 .0 “ - * Figures compiled by Department of Commerce. Belt manufacturers state that a goodly number of small orders are helping to make a business o f con siderable magnitude, but it is still not so large as that o f a year ago. The demand for butts has improved but is not heavy. In upper leathers the betterment is less marked than in heavy leathers, and this is true both as regards the statistical position and the demand. Production, except o f cattle side, has decreased, that o f goat, kid and cabretta being the lowest since July, 1922; but even so, stocks o f the latter have increased slightly. Stocks of cattle side and o f calf and kip decreased and were lower than they have been for several years. In fact, since these statistics were begun, in November, 1920, the stocks of cattle side leather have never been so small, and one has to go back to August, 1921, to find calf and kip stocks as low as they were at the end of November. e s e r v e D 25 i s t r i c t provement. Sheep leathers are in good demand. The glove trade has been calling for increased quantities of fleshers; skivers, too, are in better call, and chamois and hat leathers continue in fair request. A seasonal increase in the buying o f shoes has placed manufacturers in a better position than they have held for several months. Wholesalers Shoes have purchased in fair quantity, and though retailers are still slow to place orders, especially fo r women’s shoes, they are buying more freely than they were a month ago. Many o f the factories in this district now have sufficient orders to keep them busy through March, and some until a later date. Prices for shoes made in this district show practically no change, but reports state that a number of New England manufacturers whose plants have been doing little have shaded prices in order to secure sufficient business to insure operations at a higher per centage o f their capacity. Materials used have not changed greatly. For women’s and children’s shoes in the medium and lower grades patent leather is popular, and in high-grade shoes it is also used to a considerable extent, as are suedes and grain calf. For men’s shoes, grain calf in both black and brown is in request. Some reports o f severe competition from European made shoes are received, and it will be noticed from the fol lowing table that importations have increased during recent months, though they are still small in comparison with exports. UPPER LEATHERS* FOREIGN BUSINESS IN BOOTS AND SHOES* November, 1923, as compared with October, 1923 Cattle side...................................... Calf and kip.................................... Goat and kid.................................. Cabretta.................................. Production Stock on hand at during month end of month + 6.5% -1 2 .0 “ - 1 2 . 5 “ ** - 1 0 .6 % - 2 .6 “ + 1 .7 “ + 1.1“ * Figures compiled by Department of Commerce. ** Production figures not separated. The recent advance in the price o f raw calf skins has been followed by a slight increase by some tanners in the quotations on calf leathers. The demand for light weights, both in colors and in black, in both suede and grain, has been considerable, but in heavy weights, espe cially in black, competition has been encountered from imported calf leather. Importations o f this from Europe have been increasing in recent months and are mainly o f the top-grade leather. Manufacturing costs there at present are said to be only about one-third o f those in this country. Kid leathers have also sold in somewhat larger volume during the month, and the lower quota tions for raw goat skins have enabled tanners to shade prices o f kid, especially in the medium grades. Exports, however, which in the past have taken an important part o f the production o f kid leather, show little, if any im 1923 April.................................................... M a y .............................................................. June....................................................... July........................................................ August.................................................. September............................................ October................................................. November Imports Exports** 17,831 pairs 758,634 pairs 21,327 “ 875,281 “ 25,073 “ 677,519 “ 627,090 “ 24,841 “ 35,533 • “ 526,205 “ 35,678 “ 585,115 K“ 61,852 “ 572,874 “ j 627,925 “ * Figures for some of the early months in the import column include slippers, which otherwise are excluded. ** Do not include shipments to non-contiguous American territory. Production o f shoes in the United States during November totaled 26,838,878 pairs, during October 30,704,883 pairs, and in November, 1922, 30,076,128 pairs. For eleven months o f 1923, however, the pro duction equaled 328,330,564 pairs and exceeded that for the same period o f 1922 by 32,307,356 pairs. The table on page 26 summarizes the activities of the reporting firms in the Third Federal Reserve Dis trict during December. It will be seen that production decreased both as compared with November and with December, 1922, and that orders booked during the month were less than they were a year ago. 26 T he B u s i n e s s Product manufactured during m on th . Shipments during m onth....................... Orders booked during m onth............... Orders on hand at end of month............ Cancellations received during m on th . . Stocks (unsold) on hand at end of month.................................................... Dec., 1923 Dec., 1923 compared with compared with Deo., 1922 Nov., 1923 -1 2 .6 % -2 3 .7 “ -3 0 .8 “ + 2 .2 “ + 2 1 .5 “ + + 3 9 .2 “ 1. Sales o f shoes at wholesale again decreased in Decem ber and were smaller than in either November or in December, 1922, as is shown in the table on page 9. Sales in retail in December were larger than in November, and were also greater than in December, 1922. The increase in volume for the second half of 1923 was 5 per cent as compared with the like period o f 1922. The accompanying chart illustrates clearly the seasonal trends in both sales and stocks. NET SALES (in terms of dollars): (a) December, 1923, as compared with November, 1923........................................................................ + 1 9 .1 % (b) December, 1923, as compared with December, 1922.................................................................... . . . + 2 .6 “ (c) July 1 to December 31, 1923, as compared with July 1 to December 31, 1922.................................+ 5.0 “ -2 1 .5 % -2 1 .4 “ -2 7 .1 “ -2 2 .0 « + 1 3 .6 “ 6 .5 “ F ebruary e v i e w RETAIL SHOE TRADE Third Federal Reserve District BOOT AND SHOE INDUSTRY Third Federal Reserve District Number of reporting firms— 29 In terms of pairs R 2. STOCKS (selling price): (a) December, 1923, as compared with November, 1923.........................................................................- 7.6 “ (b) December, 1923, as compared with December, 1922........................................................................ + 5.9 “ 3. RATE OF TURNOVER (times per year based on cumulative period): (a) July 1 to December 31, 1923.................................... 3.4 (b) July 1 to December 31, 1922.................................... 2.9 Number of stores reporting above items: 1........................... 19 2 ......................... 17 3 ......................... 16 PAPER Source— Federal Reserve Bank of Philadelphia For women, gold and silver cloth for evening wear, black suede, velvet, patent leather, and brown suede in pumps for street wear, have been the best selling lines; but as is usual at this season, an increased demand is noticed for heavier low shoes in black and brown. For men, high shoes in medium tan shades in calf and kid have been in request, and for children high laced shoes of tan calf skins and shoes with patent-leather vamps with contrasting tops. Stocks, although lower than at the end o f November, were larger on December 31 than at that time in 1922. Manufacturers report that the demand for all grades of paper is only fair and that orders received show little increase over those of December. The first two weeks of the* month were very dull but this is a seasonal con dition, and paper makers state that the numerous in quiries being received point to an increasing interest on the part o f consumers. Book-paper mills note a strengthening o f demand as compared with last month, and operations have been increased to about 80 per cent o f capacity. The fine-paper market, too, is more active, and most plants are operating at approximately 80 per cent. In the wrapping and kraft paper division con ditions are about the same as they were last month, and the demand continues only fair. But as most of these mills were closed for a week or ten days for the taking o f inventory, stocks were reduced considerably, and operations are now at close to capacity. The call for paper board, building paper, and building boards is better than it was in December, but not as good as in January, 1923 ; and the average percentage o f operations is about 80. Toilet tissues and crepe towels are in light demand, and fine tissues are moving in only fair volume. Glazed paper and wall papers are in request, and most factories are working at capacity. The call for envelopes is not so heavy as it was in December, but manufac turers report that it exceeds that o f a year ago and that their factories are running at 80 per cent. Fibre and manila papers are in only fair demand, and few mills are operating at more than three-fourths o f capacity. Jobbers report that sales are smaller than they were in December, but the majority state that they slightly ex ceed those of January, 1923. Consumers’ stocks are 1924 T hird F e d e r a l R light, and consequently moderate buying started with the advent o f the new year. Although the prices o f most grades o f paper remain unchanged at last month’s levels, considerable weakness still exists in prices on coarse papers, particularly wrap ping and kraft papers. In the open market some con cessions in price are still obtainable on large purchases o f all grades except newsprint. Chemical and mechan ical pulp prices are firm and unchanged. Finished stocks at the mills vary from light to mod erate, and supplies o f raw materials are moderate. Skilled labor is in sufficient supply at all mills, and un skilled labor is plentiful. W ages are unchanged. Col lections range from fair to good and are the same as they were in December and in January, 1923. PAPER BOXES Chip and newsboard boxes are in fair request, and considering the season, the demand is satisfactory. V ery few factories are as busy as they were in Decem ber, but January is always a dull month in the indus try, and many manufacturers state that business is better than it was in January, 1923. Factories making cheap boxes for the Easter candy trade are busy, but the call for expensive candy boxes is light. The shirt, underwear, hardware, foodstuffs, and elec trical supply industries are buying moderately, but from the shoe and hosiery trades few orders are being received. The demand for fancy specialty boxes, such £s are used by the perfume and jewelry trades, is at present light. Operations at chip and newsboard box factories in this district now average about 70 per e s e r v e D i s t r i c t 27 than it was in December and much the same as that o f a year ago. The average o f operations at these plants is about 75 per cent. Although the majority o f orders specify prompt shipment, some manufacturers have re ceived more orders for delivery after 60 days than they have booked in any o f the three preceding months. B ox prices are in general weak, and though most manufacturers report no change in their prices since December, a few have lowered them about 10 per cent. In the chip and newsboard box division price-cutting is especially severe. Boxboard prices are relatively firm, and while some concessions are still to be obtained, most mills are quoting the same prices as prevailed a month ago. A s the preceding chart shows, news and chip board quotations have held firm during the past three months. In the paper-stock market, common paper prices have not changed for seven months, but old newspaper dropped sharply in November. W aste paper is now about 150 per cent higher than it was in 1913, but chip and news board are only about 85 per cent higher. Stocks o f finished boxes at the factories vary from light to moderate, and supplies o f board are moderate. The supply o f labor is sufficient at practically all mills, but a few report a slight scarcity o f skilled workers. W ages are unchanged. Collections are fair and the same as they were last month. CIGARS Although not as strong as it was a month ago, the demand for cigars is fairly good, and most manu- Prices of waste paper and board are about twice as high as in 1914 The production of large cigars in December, 1923, decreased 12.5 per cent from that of December, 1922; but cigarette o u t p ut increased nearly 25 per cent. Source— Paper Trade Journal Source— Commissioner of Internal Revenue cent o f capacity. Fibre shipping containers and cor rugated boxes are in fair request, and most o f the manufacturers o f these report that the demand is heavier facturers report that it is slightly better than that o f The local Christmas trade was heavy, and the majority o f manufacturers state that the holi January, 1923. T 28 he B u s i n e s s day business exceeded last year’s. Evidently stocks held by jobbers and retailers were very low after the holidays, as the large manufacturers have received many orders for prompt shipment from all parts o f the coun try since the beginning o f the year. A fter a two weeks’ shut-down for the annual taking o f inventory and making o f repairs, most factories resumed operations on January 7. Manufacturers o f class C and class B cigars are operating their plants at about 85 per cent o f capacity; but makers o f class A goods are not so active, and few factories are working at more than 70 per cent. Practically all orders are for prompt ship ment, most o f them specifying delivery within 30 days. A s shown in the chart on page 27, the production R e v i e w F ebruary o f large cigars in December, 1923, decreased 12.5 per cent, but that of small cigarettes increased 25 per cent as compared with that o f December, 1922. A ll classes of cigars show a decline in output, but the decrease was smallest in class C grades. Cigar prices are firm and unchanged. Tobacco leaf prices, too, are well maintained and are much the same as they were a month ago. Stocks o f cigars at the factories vary from light to moderate and are in creasing slightly. Stocks o f raw materials are mod erate. The supply o f both skilled and unskilled labor is adequate, and wages are unchanged. Collections range from fair to good and have not varied since last month. COMPILED AS OF JANUARY 22, 1924 This business review will be sent regularly without charge to any address upon request
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