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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT APRIL i, 192.4 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA SUMMARY OF BUSINESS CONDITIONS IN THE UNITED STATES Employment at industrial establishments increased in February and the output o f basic commodities was slightly larger. Distribution, both at wholesale and retail, continued large; wholesale prices were somewhat higher; and there was a further increase in the volume o f borrowing for commercial purposes. The Federal Reserve Board’s index o f production in basic industries, adjusted to allow for length o f month and other seasonal variation, inProduction creased less than 1 per cent in February. Production o f pig iron, steel ingots, and flour increased, while mill con sumption o f cotton and production o f cement and lumber declined. Factory employment advanced 1 per cent in February, following, successive decreases during the three preceding months. Increases in working forces were reported by most industries and were particularly large at iron and steel plants, automobile factories, and textile finishing establishments. Fuller employment Index of 22 basic com modities corrected for seasonal variation. (1919 = 100.) Latest figure — February, 121. through reduction o f part-time work is indicated by an increase o f over 5 per cent in average weekly earnings. Building activity was slightly less than in January, though contracts awarded were 7 per cent larger than a year ago. Railroad shipments in February were in greater daily volume than in January and car loadings of practically all important commodities were Trade larger than a year ago. The daily average volume o f wholesale busi ness increased about 5 per cent in February, but was slightly smaller than a year ago. Sales o f meat, dry goods, and hardware were larger than in February, 1923, while sales o f shoes were smaller. Department store sales in,February averaged about the same daily volume as in January and about 8 per cent more than a year ago, while merchandise stocks at these stores at the end o f the month were 6 per cent above last year’s level. Business o f mail order houses and chain stores 2 T Weekly figures for also showed January. 12 Federal Reserve M arch, 19. increased Banks. he B Latest usiness figure — activity in comparison with Wholesale prices, as measured by the index o f the Bureau o f Labor Statistics, advanced slightly in Feb ruary. Prices o f fuel, metals, Prices and building materials increased, while prices o f farm products, clothing, and chemicals declined. During the first two weeks in March price declines occurred in wheat, cotton, silk, hides, and rubber, and price advances in hogs, cop per, and crude petroleum. The volume o f borrowing for commercial purposes at member banks in leading cities in the early part o f March continued the increase Bank credit which began in the latter part o f January, and on March 12 total loans o f the reporting banks were higher than at any R eview A pril Index for 33 m anufacturing industries. (1919 = 100.) Latest figure — February, 99. time since the seasonal peak at the turn o f the year, and about $275,000,000 higher than a year ago. A t the Federal reserve banks during the four week period ending March 19 a further decline in the volume o f discounts for member banks and o f acceptances was offset by an increase in the holdings o f United States securities, so that total earning assets were at about the same level as in February. Federal reserve note cir culation continued to decline, while the total money in circulation increased. Easier money conditions were -reflected in a slight decline in rates for commercial paper to per cent and also in lower rates for bankers’ acceptances and reduced yields on Treasury certificates. The March offering o f $400,000,000 o f one year Treasury cer tificates bearing interest at 4 per cent, as compared with 4J4 per cent on a similar issue sold in December, was oversubscribed. TABLE OF CONTENTS PAGE Bankers’ acceptances ................................ Building ....................................................... Bricks .......................................................... Chemicals .................................................... Cigars .......................................................... Coal ............... Coal, anthracite .......................................... Coal, bituminous ........................................ Coke .............................................................. Commercial paper ....................................... Confectionery ............................................. Cotton goods ............................................... Cotton, raw ................................................. District summary ....................................... Drugs, wholesale ....................................... Drygoods, wholesale .................................. Employment and wages............................ Financial conditions ................................ Floor coverings .......................................... 6 12 12 17 28 16 16 16 17 5 12 19 18 3 8 7 3 5 24 PAGE Foreign exchange ...................................... Gas and electric fixtures........................... Glass .............................................................. Groceries, wholesale ................................ Hardware, wholesale ................................ Hides and skins.......................................... Hosiery ....................................................... Iron ............................................................... Jewelry, wholesale ................................... Leather ................ Lumber ......................................................... National summary ..................................... Oil ................................................................. Paint ............................................................ Paper ............................................................ Paper, wholesale ...................................... Pottery .......................................................... Printing and publishing........................... Retail trade .................................................. 6 14 14 10 9 25 23 15 10 25 13 1 17 14 27 9 15 28 7 Savings deposits ......................... . Securities ......................................... Shoes ................................................. Shoes, wholesale ............................ Silk goods ...................................... Silk, raw ......................................... . Silk, thrown .................................. , Steel ................................................ . Sugar, raw ...................................... Sugar, refined ................................. Summary, district ......................... . Summary, national ....................... Synopsis of business conditions, Underwear ....................................... Wholesale trade ........................... W oolen and worsted goods ........ . W oolen and worsted yarns .......... W ool, raw ...................................... Special Article: Advantages of Membership in the Federal Reserve S ystem ......... 32 PACE .. 5 26 8 22 21 21 15 10 11 3 1 3o 24 7 20 20 19 SUMMARY OF BUSINESS CONDITIONS IN THE THIRD FEDERAL RESERVE DISTRICT Although some hesitation has developed during the past month on the part o f buyers in certain lines, busi ness continues to be on a large scale. Production of basic commodities increased slightly in February, freight-car loadings were in greater volume than in any corresponding period, and sales by most o f the wholesale trades reporting to this bank were larger than they were a year ago. Retail trade, too, was above that of last year. The general price level at the end of February, the last month for which figures are available, showed a slight increase over that of January. Activity is rather unevenly distributed among the d if ferent industries. Iron and steel are not in as great de mand as they were a month ago, and prices are some what weaker; but production is at a high rate. In February, the output o f both steel ingots and pig iron was larger than at any time since last October. In the textile industries conditions are still unsatisfactory. I his is said to be largely due to lack o f confidence in future prices on the part of both buyers and sellers. Lower quotations on raw cotton have been reflected in reduced prices on cotton goods, but these have not stimulated business. A similar situation prevails in the silk market. Building operations are at a high rate, and, considering the season, most building materials are in good request. The estimated value o f building permits issued in this district during February, however, was below that o f January although greater than that o f last February. The leather trades are not as active as they were last month, and prices of hides are weaker. Bituminous coal is in poor request, partly because of seasonal influences and partly because of large stocks; an additional factor tending to weaken the market is the fact that operators and miners have reached an agree ment regarding a contract for three years beginning April 1, 1924. Paper manufacturers and dealers report that business is better than it was last month or a year ago, and that the granting o f price concessions has ceased. It will he noted that those reports that are unfavorable come for the most part from manufacturers. W ith distributors, goods are selling actively, as is evidenced by the fact that o f the seven wholesale lines report ing to this bank, five showed sales in excess o f last year’s. Further substantiation o f the fact that a large volume of goods is moving into the hands of con sumers in this district is found in the figures for sales at retail, which were 10.7 per cent larger than in Febru ary, 1923. That retail trade is large is not surprising in view o f the generally full employment at substantial wages. Reports to this bank from 1,032 industrial establishments in Pennsylvania, New Jersey, and Dela ware showed that the number of employes on February 15 was 0.9 per cent greater than it was on January 15 and that total wages paid increased 5.1 per cent. The larger total o f wages paid is probably attributable to longer working hours rather than to increase in wage rates. The general price level, as measured by the index of the Bureau of Labor Statistics, advanced from 151 in January to 152 in February. The increase was largely due to higher prices for coke, petroleum, gasoline, pig iron, and other metals. But since March 1 quotations have declined on such basic commodities as pig iron, raw cotton, raw silk, hides, rubber, and wheat. Credit conditions are easy. M oney rates were a trifle firmer up to the middle o f March, but since then they have declined. EMPLOYMENT AND WAGES The total number o f workers employed at identical manufacturing establishments in Pennsylvania, New Jersey, and Delaware changed only slightly from Janu ary to February. Total wages paid were more than 5 per cent larger, and average weekly earnings at report ing establishments increased more than 4 per cent, in dicating longer working hours and more active opera tions. Average weekly earnings in all industries are now about the same as they were in October, 1923, but are from two to three dollars above the level of a year ago. The increase in earnings was quite general among the reporting industries, only five of the forty-eight in dustries included in the survey showing a decrease. A s actual changes in rates of pay were inappreciable, these larger earnings probably reflect proportionately fuller employment. The greatest advance in earnings occurred at lumber mills, hat factories, and plants manufacturing novelties and jewelry. In the last instance, employment also increased, but in the first two industries small decreases occurred. T 4 he B usiness R A pril eview EMPLOYMENT AND WAGES IN PENNSYLVANIA, NEW JERSEY AND DELAWARE Number of wage earners— week ended Group and industry Number of plants reporting February 15, 1924 January 15, 1924 Per cent change Total weekly payrollweek ended ' February 15, 1924 January 15, 1924 Average weekly wage— week ended Per cent change February 15, 1924 January 15, 1924 Per cent change A ll industries: (48).................. 1,032 392,190 388,759 + . .9 $10,519,860 $10,007,054 + 5.1 $26.82 $25.74 + 4.2 Metal manufactures: Automobiles, bodies and parts . Car construction and repair... Electrical machinery and apparatus...................................... Engines, machines and machine tools....................................... Foundries and machine shops. Heating appliances and apparatus...................................... Iron and steel blast furnaces. . Iron and steel forgings............ Steel works and rolling mills . . Structural iron works.............. Miscellaneous iron and steel... Shipbuilding............................. Non-ferrous metals.................. 350 2.5 14 191,248 7,584 14,826 189,283 7,536 16,260 + 1.0 + 0.6 - 8.8 36 17,457 18,101 - 39 74 13,699 14,430 16 12 9 49 12 48 9 7 Textile products: Carpet and rugs....................... Clothing................................... Hats, felt and other................. Cotton goods........................... Silk goods................................. Woolens and worsteds............. Knit goods and hosiery........... Dveing and finishing textiles. . Miscellaneous textile products. Foods and tobacco: Bakeries.................................... Canneries.................................. Confectionery and ice cream. . Slaughtering and meat packing Sugar refining........................... Cigars and tobacco.................. 5,446,363 214,444 368,573 5,179,185 211,050 394,916 + 5.2 + 1.6 - 6.7 28.48 28.28 24.86 27.36 28.01 24.29 + 4.1 + 1.0 + 2.3 3.6 451,843 442,520 + 2.1 25.88 24.45 + 5.S 13,469 14,412 + 1-7 + 0.1 386,693 411,527 362,870 397,057 + 6.6 + 3.6 28.23 28.52 26.94 27.55 + 4.8 + 3.5 4,023 14,582 4,196 52,475 2,819 27,458 13,594 4,105 3,891 12,663 4,190 50,544 2,778 27,554 13,761 4,124 + + + + + - 3.4 15.2 0.1 3.8 1.5 0.3 1.2 0.5 122,191 418,794 111,487 1,552,297 74,850 834,673 377,802 121,189 108,675 341,708 113,152 1,450,114 71,348 785,929 381,039 118,807 + 12.4 +22.6 — 1.5 + 7.0 + 4.9 + 6.2 - 0.8 + 2.0 30.37 28.72 26.57 29.58 26.55 30.40 27.79 29.52 27.93 26.98 27.01 28.69 25.68 28.52 27.69 28.81 + + + + + + + 8.7 6.4 1.6 3.1 3.4 6.6 0.4 2.5 251 14 39 S 24 65 31 46 16 8 72,858 4,06-5 6,351 5,234 7,634 17,581 12,763 10,916 6,240 2,075 72,999 3,923 6,517 5,695 7,514 17,792 13,038 10,596 5,863 2,061 + + + + + 0.2 3.6 2.5 8.1 1.6 1.2 2.1 3.0 6.4 0.7 1,637,289 114,693 121,288 128,342 180,042 353,905 289,229 223,630 179,987 46,173 1,544,809 103,176 124,024 125,212 176,187 333,596 280.822 202,685 154,604 44,506 + + + + + + + + + 6.0 11.2 2.2 2.5 2.2 6.1 3.0 10.3 16.4 3.7 22.47 28.21 19.10 24.52 23.58 20.13 22.66 20.49 28.84 22.25 21.16 26.30 19.03 21.99 23.45 18.75 21.54 19.13 26.37 21.59 + + + + + + + + + + 6.2 7.3 0.4 11.5 0.6 7.4 5.2 7.1 9.4 3.1 88 21 6 22 12 4 23 27,526 4,712 2,583 5,776 2,835 4,423 7,197 26,711 4,565 2,455 5,604 2,801 3,476 7,810 + 3.1 + 3.2 + 5.2 + 3.1 + 1-2 +27.2 - 7.8 628,829 122,755 57,552 115,780 76,273 140,758 115,711 597,151 117,909 57,255 110,505 78,010 109,.548 123,924 + 5.3 + 4.1 + 0.5 + 4.8 - 2.2 +28.5 - 6.6 22.84 26.05 22.28 20.05 26.90 31.82 16.08 22.36 25.83 23.32 19.72 27.85 31.52 15.78 + + — + + + 2.1 0.9 4.5 1.7 3.4 1.0 1.3 77 21,131 20,827 + 1.5 602,356 567,154 + 6.2 28.51 27.23 + 4.7 12.0 9.0 6.0 1-1 26.40 28.45 27.43 31.64 24.28 26.26 26.23 31.79 + + + - 8.7 8.3 4.6 0.5 6.5 4.4 7.3 8.3 6.9 8.8 30.25 26.62 27.63 26.83 32.55 32.35 28.85 25.64 25.77 26.40 30.88 31.68 + + + + + + 4.9 3.8 7.2 1.6 5.4 2.1 Building materials: Brick, tile and terra cotta products....................................... Cement..................................... Glass......................................... Pottery..................................... 19 14 27 17 3,186 5,355 7,706 4,884 3,095 5,321 7,604 4,807 + + + + 2.9 0.6 1.3 1.6 84,115 152,336 211,360 154,545 75,133 139,728 199,459 152,834 + + + + Chemicalandallied products: Chemicals and drugs............... Explosives................................. Paints and varnishes............... Petroleum refining................... Coke.......................................... 74 41 10 12 7 4 29,938 8,113 2,452 1,486 16,494 1,393 29,478 8,071 2,451 1,395 16,253 1,308 + + + + + + 1.6 0.5 0.0 6.5 1.5 6.5 905,597 216,001 67,761 39,870 536,895 45,070 850,463 206,945 63,154 36,824 502,102 41,438 + + + + + + Miscellaneous industries: 192 Lumber and planing mill prod8 ucts....................................... Furniture.................................. ■ 21 5 Musical instruments............... 34 Leather tanning....................... 8 Leather products..................... 28 Boots and shoes....................... 24 Paper and pulp products........ 24 Printing and publishing.......... 20 Rubber tires and goods........... 10 Novelties and jewelry-.............. All other industries................. 10 49,489 49,461 + 0.1 1,299,426 1,268,292 + 2.5 26.26 25.64 + 2.4 2,341 3,282 9,994 8,109 718 5,375 5,763 3,903 5,776 2,643 1,586 2,427 3,235 9,887 8,130 723 5,378 5,920 4,013 5,758 2,589 1,401 52,995 81,868 289,475 214,049 14,771 104,010 147,038 126,386 1.54,140 66,5.54 48,140 48,093 79,380 281,081 212,134 14,349 100,238 139,915 129,170 164,473 58,828 40,631 + 10.2 + 3.1 + 3.0 + 0.9 + 2.9 + 3.8 + 5.1 — 22 - 6.3 + 13.1 + 18.5 22.64 24.94 28.96 26.40 20.57 19.35 25.51 32.39 26.69 25.18 30.35 19.82 24.54 28.43 26.09 19.85 ISM 23.63 32.19 28.56 22.72 29.00 + 14.2 + 1.6 + 1.9 + 1.2 + 3.6 + 3.8 + 8.0 + 0.6 — 6.5 + 10.8 + 4.7 + + + + + 3.5 1.5 1.1 0.3 0.7 0.1 2.7 2.8 0.3 2.1 13.2 T 1924 it i r d F ed e r a l In employment there was a considerable variation among the different industries in the nature and extent o f the changes reported. The principal increases— of 15 per cent and 27 per cent respectively— were reported by blast furnaces and sugar refineries. Notable in creases also occurred at textile dyeing and finishing establishments, canneries, paint and varnish factories, and coke plants. Fairly large decreases in employment were reported by cigar factories, hat factories, and car construction and repair shops. In the last instance the decrease is attributable principally to a reduction in working forces at one large establishment. The table on page 4 shows the changes in employment and wages in the principal industries. FINANCIAL CONDITIONS Total loans and discounts o f reporting member banks in the Third Federal Reserve District rose from 628 millions on February 13 to 631 millions on March 12. The gain in commercial loans— from 348 to 353 millions— was more marked, but secured loans declined from 280 to 278 millions. Investments increased and deposits decreased. In the four weeks ended March 19 the earning assets BANKING CONDITIONS Third Federal Reserve District Changes in course of Figures in millions of dollars Latest* Four weeks Six months One year Reporting Member Banks • Secured loans............... Commercial loans........ 278 353 _ 2 + 5 — 5 — 5 _ 2 +21 Total loans and discounts................... 631 + 3 -1 0 + 19 U. S. securities owned . Other securities owned. 102 1S7 _ o 4- 7 - 9 + 7 -1 6 + 3 Total investments... 289 + 5 _ 2 -1 3 Demand deposits........ Time deposits.............. Government deposits. . 672 130 10 -1 3 + 3 0 -1 9 +26 0 -4 0 +46 0 Federal Reserve Bank: Bills discounted........... Purchased bills............ U. S. securities............ ' Vv Total earning assets. 41 16 25 + 2 - 9 + 2 -1 8 - 2 + 8 -2 0 -1 2 - 4 82 — 5 -1 2 -3 6 4- 1 4- 1 4-10 + 2.6% -1 9 + 2 + 1 + 4.4% + 1 0 +44 + 13.6% Federal reserve note cirdilation..................... 199 Total deposits.............. 119 ( ash reserves............... 260 Reserve ratio............... 81.7% ^Reporting member banks— March 12, 1924. Federal Reserve Bank—-March 19, 1924. R eserve D i s t r i ct 5 o f the Federal Reserve Bank o f Philadelphia declined from 87 to 82 millions, owing to a falling off o f seven millions in purchased paper and United States securities as against a gain o f but two millions in discounted bills. A n increase o f ten millions in cash reserves, offset bv only small increases in the note and deposit liabilities, served to raise the reserve ratio. The ruling rate for call money on the stock exchange was 3 per cent on March 20, and it was reported that money was loaned outside the Securities exchange at 2 per cent. A month ago the rate was 4)4 per cent. Prices o f industrial stocks declined from the levels o f a month ago, but bonds and railroad stocks rose. Statistics o f security prices and transactions are given b elow : THE SECURITY MARKET March 21, 1923 March 20, 1924 February 20, 1924 Averages of— 20 industrial stocks.......... 20 railroad stocks............. 40 bonds........................... 4 Liberty bonds............. .$95.88 81.45 87.86 99.53 $96.58 80.63 87.37 99.48 $105.23 89.67 86.51 97.77 Stock sales* (in shares) . . . . Bond sales* Call money (ruling rate). . . . 1,031 $14 410 3% 842 $8,534 4R% 1,391 $11,423 *000’s omitted. Seventy-nine banks in the Third Federal Reserve District report an increase o f .3 o f one per cent in savings deposits during February. Savings deposits This compares with a gain o f 1.1 per cent in February o f last year, and o f .2 o f one per cent two years ago. All o f the cities except Trenton report larger deposits on March 1 than on February 1. Little interest was credited during the interim, so that the increase may be regarded as being due almost entirely to an excess o f deposits over withdrawals. Comparative percentages o f change are shown on the next page. During March only a comparatively few banks in the city were buyers o f commercial paper, but they pur. chased freely. Some institutions Commercial outside o f Philadelphia also PaPer bought a fair amount, and although the sales to them are expected to fall consid erably short o f the rather large February transactions, the total sales in this district will in all likelihood be as large as they were a month ago. Early in the month rates were slightly higher than they were during Feb ruary, but later they eased off and a number o f sales were made at 4* /l 2 per cent. Most o f the country banks, however, are demanding a higher rate and some o f them will not buy at less than 5 per cent. T 6 he B R usiness A pril eview TRANSACTIONS IN BANKERS’ ACCEPTANCES SAVINGS DEPOSITS Third Federal Reserve District Sales in Third District Number of banks Per cent of change March 1, as compared with Month ago Altoona......................................... Chester......................................... Harrisburg................................... Johnstown.................................... Lancaster..................................... Philadelphia................................. Reading........................................ Scranton ....................................... Trenton........................................ Wilkes-Barre................................ Williamsport................................ Wilmington.................................. York.............................................. Others........................................... Totals....................................... 5 5 4 5 3 9 3 6 6 5 4 5 5 14 +2.1 + 1.7 + 1.0 + 1.3 + 1.0 + .4 + 1.5 + .02 -4 .3 + .7 + -8 +3.2 + 1.8 + -8 + 15.6 + 10.5 + 15.8 + 10.7 +22.5 + 6.9 + 16.7 + 16.2 + 1.7 + 19.8 + 2.8 + 8.7 + 9.3 + 11.0 79 + .3 + 8.7 During February, five reporting firms in the Third Federal Reserve District sold paper to the amount of $8,430,000, and in February, 1923, to the amount o f $6,457,000. O f the former total, $2,655,000 was pur chased by city banks and $5,775,000 by outside institu tions. Almost 70 per cent o f the amount sold was closed at 4^4 per cent, and the balance was almost equally divided between A1 / per cent and 5 per cent. Only a small fraction o f 1 per cent was marketed at 5^* per cent. A fair demand for acceptances in this district was noted by dealers during the four weeks ended March 12. t Sales were larger than in the pretSankers ceding month and a year ago, but accep ances q ie actjv^y 0 f tpe did not approach in intensity the business stimulated by the de cline in the rate for call money on March 20 and 21. The rate for 90-day bills, which had been steady at 4 per cent for some time, declined to 3^4 per cent, and for six-months’ bills from 4*4 to 3y6 per cent. five dealers are summarized Twelve accepting banks report an increase in the sum o f acceptances executed. For the month ending March 10 the total was $4,569,000. in the previous month, $3,338,000, and a year ago, $3,513,000. To Federal Reserve Bank To others Purchases in Third District Year ago The sudden change in the situation was largely caused by the break in call money rates in New York, and the resultant seeking for other investment channels for the large sum o f loanable funds. The supply o f paper is small, as borrowers do not appear to be greatly in need o f funds, and the recent increase in the demand has absorbed a large part o f the paper owned by the dealers. The transactions o f herewith: Weekly average for period 1924: February 14 to March 12... . January 10 to February 13... December 13* to January 9.. 1923: February 12 to March 11... . $2,863,000 1,408,000 2,406,000 $366,000 329,000 352,000 $622,000 791,000 353,000 2,424,000 182,000 642,000 * 1923. Completely overshadowing in interest and importance all other developments in the foreign exchange market during the past month has been Foreign exchange the unprecedented fall and rapid recovery in the value o f French francs. For some time past, political and speculative in fluences had caused French currency to depreciate more and more, until the heavy pressure o f selling orders forced francs down to $.0349 on March 8, a new low for noon cables. The French Government then took measures to halt the decline, with the result that a loan o f $100,000,000 was made by financial interests in this country to be used to stabilize the franc. Immediately upon the announcement o f this measure, the currency strengthened and rose sharply each day thereafter until, on March 22, the franc reached $.0523, a high point for the year. F O R E IG N EXC H A N G E RATES Pc.KLt.nT OF PAR 90 80 70 ---------- — ------- ~ ~ England ___France Ita ly eo 50 40 30 G 20 ■ . - ' ---------- v . . ---------------------------------------- io O J F M A M J JA 1923 SON b J F M A M J J A S 1924 o u t Between October and March the tendency of all four of the leading European currencies was downward, the decline of French francs being most pronounced. But In March both French and Belgian francs recovered sharply. Source—Federal Reserve Bank of New York On March 22 sterling was listed at $4.3038, a dis tinct improvement over the quotation o f $4.2632 on T II I R ]) F E D E R A E R E S E R V E 1924 FOREIGN EXCHANGE RATES Noon cables Par London. $4 8665 .1930 Paris..................... Antwerp............... .1930 Milan.................... .1930 ^ ienna.................. .2020 Amsterdam.......... .4020 ( 'openhagen.......... .2680 Stockholm............ .2680 .1930 Madrid................. Berne.................... .1930 Buenos Aires........ .9648 Shanghai............... .7745 March 20, 1924 $4 2941 .0.512 .0406 .0433 .000014 .3706 .1564 .2635 .1289 .1730 .7626 .7012 February 20, 1924 $4 2956 .0414 .0347 .0429 .000014 .3723 .1576 .2610 .1270 .1730 .7712 .7050 March 20, 1923 §4 6923 .0651 .0563 .0485 .000014 .3949 .1918 .2661 .1546 .1853 .8404 .7590 March 10. During the second week o f the month, heavy selling o f sterling, supposedly to cover contracts in French francs, was responsible for the decline at that time. This was also true o f Dutch and Swiss currencies, both o f which fell on March 10 to new low levels for the year, the form er to $.3695 and the latter to $.1722. On March 11, Italian lire were also quoted at a record low o f $.0413, but quotations have since advanced and are now listed at $.0427. The decline was thought to be partly on account o f the effect o f the recent Italian loan to Poland. Belgian francs followed closely the move ment o f French francs and have advanced almost one cent since their fall to a record low o f $.0316 on March 10. Spanish pesetas are now quoted at $.1285, a higher figure than they have reached at any time since the first o f February; but Norwegian kroner, though they have gained appreciably since, declined on February 25 to $.1325, the lowest quotation since 1921. A strike among paper and pulp mill workers in Norway, pre ceded by a walk-out among dock employees, has had an unfavorable effect on the exchange market and has tended to aggravate an already rather tense financial situation. Quotations on Swedish kroner are higher than they have been for several weeks and are steady ut $.2635. South American currencies are lower than they were last month, the greatest shrinkage being recorded in Brazilian milreis, which have declined from $•1211 to $.1049 during the past four weeks. Chinese tael (H on g K on g) are stronger at $.5053 than they were a month ago, but Japanese yen failed to hold their position, and owing to Japan’s unfavorable t’ ade balance and a decline in silk production, quota tions fell to a new low record on March 14 o f $.4193. Canadian dollars on March 15 were listed at $.966109. the lowest point since 1922, but shortly after, recovered, <md are now quoted at $.971660. RETAIL TRADE Retail sales in March will probably not exceed those ° f last March, because o f the fact that there is one less business day in this March than last, and because the D I ST RI CT 7 pre-Easter season falls in April. But reports o f busi ness are so encouraging that these disadvantages may be overcome. Prices on the whole are steady, but the changes that have taken place are in favor of the buyer. Some con cessions have been obtained on rugs, cotton goods, and hosiery, and merchandise of nearly all kinds is reported to be in plentiful supply. During February sales in this district gained 10.7 per cent over those o f February, 1923, indicating that special sales, which always play a prominent part in February’s business, were successful; and some of the stores state that the furniture sales broke previous records. In nearly all parts o f the district improvement is noted, and in Altoona and Johnstown, where decreases have occurred during recent months, gains are now recoi ded. In Scranton, however, the gains are less than those o f recent months. In Philadelphia the department stores made an especially good showing, but in the men’s ap parel stores sales were not altogether satisfactory. WHOLESALE TRADE The volume o f wholesale trade, as is usual at this season, has become greater during March than it was in the months immediately preceding. It is thought, however, that in some lines, such as drygoods and shoes, sales will not be as large as they were in March, 1923. Prices have not varied greatly, but the reductions prob ably outnumber the advances. Am ong the commodities reduced are manufactures o f cotton and o f silk and some food products, butter, eggs, and sugar. During February, sales o f paper and shoes were larger than in January or in February, 1923; but sales o f drygoods were smaller than in either o f those months. Sales o f drugs, groceries, and hardware were smaller than in January but larger than in February, 1923, whereas in jewelry the reverse was true. Collections have as a rule become slower and in most lines com pare unfavorably with those o f January and o f Feb ruary, 1923. Stocks are for the most part increasing. A t this season o f the year particularly, the drygoods sold at wholesale consist largely o f cotton goods, and as the quotations for these Drygoods have been falling, buyers have been cautious, and sales in March are said to be the same as those o f February, or some what smaller. Morever, buyers have limited their pur chases as to time, and all orders are for shipment either in March or April. The articles for which the demand is best are ginghams, dress goods, laces, hosiery, summer underwear, shirts, notions, ready-to-wear goods, and play suits. N o advances in price are noted, but nearly all cotton goods, fibre silk hosiery, and some numbers o f silk and o f cotton hosiery are lower than they were last month. T he 8 B usiness R A pril eview RETAIL TRADE Third Federal Reserve District Comparison of net sales Comparison of stocks Feb., 1924 with Feb., 1923 Jan. 1 to Feb. 29, 1924 with Jan. 1 to Feb. 28, 1923 All reporting firms.............................................................................. Firms in— Philadelphia.................................................................... — Allentown, Bethlehem & Easton............................ — Altoona .............................................................................. — Chester.............................................................................. — Harrisburg........................................................................ — Johnstown......................................................................... — Lancaster.......................................................................... — Reading.............................................................................. — Scranton ............................................................................ — Trenton .............................................................................. — Wilkes-Barre.................................................................... —Williamsport.................................................................... — Wilmington...................................................................... — York .................................................................................... — All other cities ................................................................ + 10.7% + 11.2“ + 16.8“ + 3 .2 “ +33.3 “ + 3 .7 “ + 5.2“ + 8 .4 “ + 5 .5 “ + 9.3“ + 11.4“ + 14.4“ + 6 .5 “ + 13.8 “ + 10.2“ + 12.5 “ + 8.7% + 8 .9 “ + 14.5“ + 0 .8 “ + 2 1 .4 “ + 2 .5 “ - 2 .5 “ + 11.1 “ + 10.7“ + 13.6“ + 10.3 “ + 9 .4 “ + 5.6 “ + 14.7 “ + 9 .9 “ + 9 .1 “ + + + + All department stores ........................................................................ Department stores in Philadelphia............................................. Department stores outside Philadelphia................................... + 9 .6 “ + 10.5“ + 7.2“ All apparel stores................................................................................ Men’s apparel stores............................................................ — in Philadelphia.......................................................... —outside Philadelphia.................................................. W omen’s apparel stores.................................................................... — in Philadelphia. ..................................................................... — outside Philadelphia............................................................. + + + + Credit houses......................................................................................... + Shoe stores.............................................................................................. + Feb. 29, 1924 with Feb. 2S, 1923 Feb. 29. 1924 with Jan. 31, 1924 Rate of turnover* Jan. 1 to Jan. 1 to Feb. 29, Feb. 28, 1924 1923 8.1% 7.8“ 12.5“ 10.2 “ + + + + +7% 2 .3 “ 7.5“ 11.2 “ 3.2 3.6 2.0 2.3 3.2 3.6 2.1 2.5 + 10.5“ + 13.4“ + 4 .9 “ + 7.1 “ +23.7 “ - 0 .7 “ + 5 .3 “ + 8 .0 “ + 0 .8 “ + 1.5“ + 10.4“ + + + + + + + + + + + 9 .3 “ 18.8“ 10.8“ 6 .5 “ 10.6“ 8.1 “ 11.9“ 14.2 “ 3 .2 “ 13.4 “ 5 .9 “ 2.1 3.2 2.4 2.0 2.4 2.8 2.8 1.9 1.9 2.4 2.0 2.2 3.5 2.3 2.0 2.6 2.5 2.6 2.0 1.6 2.2 2.0 + 7.3“ + 7.5“ + 6 .7 “ + 7 .4 “ + 7.2“ + 7.8“ + 3 .7 “ + 0 .4 “ + 10.9“ 3.1 3.5 2.4 3.1 3.5 2.4 + + + + 16.0“ 8 .8 “ 6.1“ 13.1“ + 17.5 “ + 18.2“ + 14.5“ + + + + + + 12.S “ 12.6“ 12.6“ 12.6“ 4 .3 “ 5 .9 “ - 0 .7“ + + + + 16.3“ 12.8“ 19.5“ 6 .7 “ + 14.9 “ + 16.8“ + 9 .2“ 3.9 2.2 2.6 1.9 5.6 6.4 3.2 3.8 2.3 2.8 1.9 5.1 5.7 3.1 11.6“ + 7 .8“ + 11.1 “ + 1.3“ 2.2 2.2 15.0“ + 1.4“ + 2 .2 “ 3.2 2.S 15.4 “ 6 .0 “ 1.8“ 13.0“ + 17.6“ + 17.4“ + 18.2 “ 14.6“ - * Times per year based on cumulative period. During’ February, sales were smaller by 4.8 per cent than in January, and by 5.7 per cent than in February, 1923. Collections are not as good as they were in either the previous-month or the previous year, as is shown by the ratio o f accounts outstanding, which was 250.2 on February 29, 236.5 on January 31, and 230.2 on February 28, 1923. Stocks are heavier than they were at the end o f either January, 1924, or Feb ruary, 1923, the gains being 1.4 per cent and 20.7 per cent respectively. Sales during February were larger by 2.3 per cent than in January and by 3.7 per cent than in February, 1923. Stocks are 7.3 per cent greater than they were at the end o f January, but 4.2 per cent smaller than they were a year ago. The ratio o f accounts outstand ing was 284.3 on February 29. 283.6 on January 31, and 299.1 on February 28, 1923. Sales o f shoes at wholesale in March show but little change from those o f February. U p to the time o f writing, repeat orders have been Shoes disappointingly s m a l l , but as Easter is almost three weeks later this year than it was last, these may be received next month. The demand for women’s shoes in patent leather and satins continues to be good, but that for suedes, especially in black, is decreasing. For men’s wear, tan oxfords lead, though black oxfords are also wanted. For children, tans and patent leather are the The call for drugs is fair, and though practically un changed since last month, is slightly better than it was in March, 1923. Staple goods. Drugs spraying materials, and seasonable patent medicines are at present the best sellers. Dulness still prevails in the botanical drug market, and prices have continued to soften. The demand for fine drugs and chemicals is fairly good, but not as strong as it was last month, and consequently prices are slightly lower. The price indexes o f 40 botanical drugs and 35 drugs and fine chemicals, as most popular. Prices are unchanged, and practically all orders are for shipment before Easter. IQ24 T F hird ederal R eserve D istrict 9 WHOLESALE TRADE Third Federal Reserve District Percentage of increase or decrease in Index number (1923 Av. = 100) . Jan. 1924 Feb. 1923 Jan. 1924 Boots and shoes............................ Drugs.............................................. Dry g ood s..................................... Groceries......................................... Hardware....................................... Jewelry........................................... Paper.............................................. 80 99 89 90 SI + + + 2.3% 4 .7 “ 4.8“ 3 .1 “ 2 .4 “ 18.9“ 2 .0 “ 3.7% 0 .7 “ 5 .7 “ 6.1 “ 14.1 “ - 0 .6 “ + 3 .5 “ + + + + compiled by the “ Oil, Paint and Drug Reporter,” are given in the table below. Price index of 40 botanical drugs + + + + + 7.3% 6 .8 “ 1.4“ 1.5“ 2 .0 “ 6.1 “ 13.5“ Feb. 1923 Jan. 1924 - 4-2% - 0 .6 “ +20.7 “ + 6.1“ + 5 .0 “ + 7.4“ + 0 .2 “ - + + + + + 0.1% 1.0“ 0 .6 “ 1.3“ 2 .2 “ 4 .2 “ 3 .5 “ Feb. 1923 Feb. 1924 Jan. 1924 Feb. 1923 2.2% 2 .0 “ 2 .5 “ 7.5“ 10.7 “ + 18.0 “ + 5 .2 “ + + + + 1924 1923 108.2 108.2 108.2 108.1 155.2 152.4 152.3 152.3 201.3 199.3 200.0 200.9 172.2 172.6 172.5 172.8 W holesale drug sales in February were 4.7 per cent smaller than those for January, but 0.7 per cent larger than those for February, 1923. Jobbers’ stocks are moderate and smaller than they were last month. Collections range from fair to good. The ratio o f accounts outstanding to sales in February was 141.9, as compared with 137.8 in January and with 138.1 in February, 1923. In February our wholesale hardware sales index number was 81, or 2 points less than the January num ber. The aggregate net sales o f Hardware 31 hardware firms reporting to us were 2.4 per cent smaller than the t°tal during the preceding month, but 14.1 per cent greater than in February o f last year. During the ljtst month the demand for wholesale hardware, chiefly from builders, contractors, and factories, has been fair, and the call for radio supplies and for seasonal goods such as farming implements, is in some instances char acterized as good. Quotations on several articles are slightly higher than they were a month ago, and most hrnis reporting to us say that prices are also higher than they were at this time last year. Collections are mostly described as fair, though in several cases they are said to be poor. The ratio o f accounts outstanding to sales was 189.9 in February, FEDERAL HAR D W A R E RESERVE DISTRICT R a tio o f at :cour?ts o u t s t t o n e t s a le s — 1923 299.1% 138.1 “ 230.2 “ 116.4“ 193.6 “ 294.2 “ 146.7 “ -gt 1924 n — a 17.......... 283.6% 137.8“ 236.5 “ 112.5“ 179.5 “ 392.9 “ 147.0 “ Price index of 35 drugs and fine chemicals T H IR D M arch 284.3% 141.9“ 250.2 “ 117.7“ 189.9 “ 344.3 “ 149.1 “ as compared with 179.5 in January and 193.6 in Feb ruary, 1923. In the chart below is depicted the trend o f collections by months since 1920. W HO LESA LE F e b r u a r y 25.. . . M a r c h 3 ........... M a r c h 10......... Ratio of accounts outstanding to sales Net sales Accounts outstanding Stocks Feb. 1924 compared Feb. 1924 compared Feb. 1924 compared with with with A r V * \ yvAvNA 1920 1921 1922 1923 1924 Collections in the wholesale hardware trade are slowest in January and February in each year. Source—Federal Reserve Bank of Philadelphia In general, the wholesale paper trade is more active than it was last month, and the demand is good. Fine papers and book papers are sellPaper ing well, and the call for tissues is better than in any previous month o f the year. W rapping, kraft, and building papers are moving in greater volume than they did last month, and prices have become firm. I h e demand for newsprint is well sustained, but box cover papers are in only fair request. Some changes in price have occurred, such as an advance in building papers and a slight decline in box cover papers, but on the whole prices have held firm. Stocks held by wholesalers are slightly larger than they were last month but are by T IO he B usiness no means heavy. Collections are fair and a tnfle slower than they were in February. Our reports from distributors show that wholesale paper sales in February were 2.0 per cent larger than in January and 3.5 per cent greater than in February, 1923. The ratio o f accounts outstanding to sales in February was 149.1, as compared with 147.0 in Janu ary and 146.7 in February, 1923. The wholesale jewelry market, though quiet, is strong, and March sales are expected to be as usual somewhat larger than those o f February, Jewelry and about the same as those o f last March. The demand is a fairly broad one and embraces clocks, watches, silver plated table ware, flexible bracelets, mountings for the remounting o f old diamonds, and low grade diamonds. For the top grades o f diamonds the call is poor. A c cording to the figures compiled by the Treasury Department, imports o f diamonds in the United States during 1923 exceeded those o f any previous year ex cepting 1919, when conditions in the jewelry business were without parallel. The increase, however, is in cut stones; imports o f rough stones have not gained, but are in fact smaller than they were before the war. The following table shows the value o f imports o f cut diamonds, but the variations in the price per carat, as shown in the accompanying chart, have a considerable bearing on the quantity imported. IMPORTS OF CUT DIAMONDS 1913 .............................................................................. $24,800,000 1914 .............................................................................. 12,000,000 1915 .............................................................................. 13,140,000 1916 .............................................................................. 24,200,000 1917 .............................................................................. 18,400,000 1918 ............................................................................. 7,000,000 1919 ................................................................................ 64,200,000 1920 ............................................................................. 45,400,000 1921 ............................................................................. 26,300,000 1922 ............................................................................. 43,200,000 1923 ............................................................................. 53,000,000 Sales during February were 18.9 per cent larger than in January, but 0.6 per cent smaller than those o f February, 1923. Collections are somewhat slower than they were a year ago, as is shown by the ratio of accounts outstanding to sales, which was 344.3 on February 29, 392.9 on January 31, and 294.2 on Febru ary 28, 1923. Stocks were 6.1 per cent heavier on Feb ruary 29 than on January 31 and 7.4 per cent heavier than on February 28, 1923. The accompanying chart depicts the course o f the cutters’ prices o f commercial one carat Wesselton dia monds from 1914 to date. In the spring o f 1920 prices had risen to $575. Then buyers began to offer pre miums, and no real market quotations are available until well into 1921. Prices o f diamonds are now R A pril evie w 105 per cent higher than they were in 1914, whereas on the same basis the general wholesale commodity index number is 57 per cent higher. Quotations named by cutters for commercial one carat Wesselton diamonds Source— The Jeweler's Circular Publishing Co. The demand for groceries is fair and much the same as it was last month, but greater than in March, 1923. Canned goods, particularly canned Groceries fish, and dried fruits, salt fish, cheese, and staple groceries are at present selling actively. Few price changes have occurred during the month, and in general quotations have held firm. Cheese, butter, eggs, dried fruits, and sugar have dropped; but soap, coffee, canned fish, dried beans, and a few canned vegetables have advanced. Stocks held by jobbers vary from moderate to heavy and have changed but slightly. Reports from wholesale grocers show that sales in February were 3.1 per cent smaller than those o f Janu ary, but 6.1 per cent greater than those o f February, 1923. The ratio o f accounts outstanding increased from 112.5 in January to 117.7 in February. SUGAR The settlement o f the railroad strike in Cuba near the end of last month resulted in heavy shipments of raw sugars to Cuban ports early in Raw sugar March. Consequently offerings o f raw sugar for prompt shipment on the Sugar Exchange thus far this month have been large, and prices have gradually softened. On February 25, refiners made purchases o f Cuban raw sugar at 5jH$ cents, c & f, equivalent to 7.41 cents, duty paid; but since then prices have declined an eighth or sixteenth o f a cent at a time, and on March 17 refiners bought heavily at 5 yi cents, c & f, which was equal to 6.91 T 1924 hird F ederal R cents, duty paid. Further declines brought the price of Cuban raws to 5 cents, c & f, equal to 6.78 cents, duty paid, but on March 19 it again advanced to 5% cents, c & f. Refiners have also purchased considerable quan tities of Porto Rican sugar at prices conform ing to those paid for Cuban, the last recorded sale for late March and early April delivery being at 6.72 cents. A sale o f Philippine sugars, too, was reported on March 19, but this has not been confirmed. Buying by the refineries has been cautious, and practically all purchases they have made have been for immediate requirements. eserve D istrict 11 ing period o f 1923. The accompanying table shows how receipts in the same periods o f both years compared. The demand for refined sugar is only -fair and at times during the month has been very light. Falling prices in the raw sugar market Refined sugar have caused wholesale grocers and confectioners to be extremely cautious in buying. But despite a rather light demand, prices on refined sugar held firm at from 8.60 to 9.00 cents for hard granulated at the refineries during the first two and a half weeks of the month. On March Buyers from the United Kingdom have been active, 18, however, all refiners lowered their quotations on and their purchases have exceeded in size the quantities fine granulated to 8.50 or 8.60 cents per pound, a re bought during the first three weeks o f March, 1923. duction o f from 10 to 40 points. Since then one The prices they paid were equal to those for spot sugar, refiner has further lowered his list to 8.40 cents. c & f, New York. Belgium, Holland, and Denmark Several small-sized lots were offered by second hands have also entered the Cuban market, and a shipment to during the first half o f the month at from 25 to 35 H ong K ong has been recorded by the Cuban govern points below the highest quotations of the refiners, and ment. Exports to Europe from the island thus far this these were quickly sold. Since the middle of the month, month have been fully 50 per cent larger than those for , however, second-hand offerings have been few. the corresponding weeks of last March. Foreign purchases o f refined sugar have been small, and export business is dull. Exports of refined sugar In some parts o f Cuba the grinding season is already thus far this year have been only about one-third o f drawing to a close. The Central Nueva Pas in Havana what they were in the corresponding period of last year. province has finished its production and has closed. Its The export trade has practically ceased to be a factor output was 37,000 bags, instead o f the 40,000 bags esti o f importance in our refined sugar market. mated. On the other hand, three additional centrales— Refiners’ stocks, up to the 10th o f the month, were Porvenir, Pennsylvania, and Bahia Honda (Pinar del considerably larger than they were last year, and during Rio P rovin ce)— have started grinding during the month, the latter half o f February were accumulating rapidly. rhe first two, Porvenir and Pennsylvania, were not ex But since March 10 they have fallen slightly below pected to operate this year. Receipts o f raw sugar at the amounts on the same dates o f March, 1923, and Cuban ports thus far in March have been heavier than they were last year. During the week ending March S approximately 226,000 tons arrived at the ports, an amount greater than that received in any previous week on record. The railroad strike, which was promptly set tled at the close of February, undoubtedly held up much sugar that was in transit to Cuban ports and probably accounts for the huge receipts in the first week of Harch. The weather on the island has been fine and favorable for grinding operations. Raw sugar receipts at the ports of Baltimore, Phila delphia, New Y ork, and Boston for the first three weeks ° f March were smaller than those for the correspond- RECEIPTS OF RAW SUGAR AT ATLANTIC PORTS* Tons (2240 lbs.) February 29 to March 21, 1924 March 2 to March 23, 1923 From Cuba...................... £rom Porto Rico................... ^ rom Philippine Islands....... * r<>m other countries........... 258,865 35,103 9,695 1,228 292,859 45,522 5,294 856 Total receipts.................. 304,881 344,531 *Amcrican Sugar Bulletin. now seem to be about normal for this time o f the year. Meltings for the first three weeks o f the month at the refineries in Baltimore, Philadelphia, New Y ork and Boston amounted to 222,000 tons, as against 238,000 tons for the same period in 1923. This represents a de- 12 T he B usiness crease o f 6.7 per cent. Meltings at Atlantic Ports during February. 1924, were larger than in February of the two preceding years, but as is shown in the chart on page 11, the meltings for January were smaller than in either January, 1923, or January, 1922. CONFECTIONERY In general, the demand for candies is not as heavy as it was in March, 1923, but the majority of manu facturers find it better than it was last month. Handto-mouth buying by the jobbers and retailers, and the late Easter, are responsible for this condition. In 1923, Easter came early in April, and consequently the heavy buying for the Easter trade was done in March. Manu facturers have, o f course, booked large orders for Easter, but as buyers hesitate to order ahead, the volume o f business does not equal that of a year ago. P ro ducers o f hard candies report that their staple lines are not moving as well as they were last month, but the demand for jelly beans is heavy. Staple varieties of chocolate-coated penny piece goods are not selling as well as in February, but there is an excellent demand for coated Easter eggs. The call for box chocolates exceeds that o f a month ago, but is not as heavy as in March, 1923. Bar chocolate, baking chocolate, chocolate coating and cocoa are in good request, and makers of these report better business than in last month or in March, 1923. The average o f factory operations in this district approximates 80 per cent of capacity. Most manufacturers agree that sales thus far this year exceed Sugar and glucose are higher than they were In 1914, but cocoa beans are lower. Sources—Frank G. Alden, Inc., Dun's Review, Sugar, New Commercial, and Journal of Commerce York in volume those of the same period of 1923, but they complain that the extreme caution of buyers is making business very uncertain. Few producers have more than 20 days’ business on hand. R A pril eview Quotations for candies are holding firm and have remained practically unchanged during the past two months, though a few manufacturers are offering such slight concessions as freight allowances. Prices of raw materials have fluctuated within narrow ranges, but the trend o f sugar and cocoa beans has been upward. As shown in the preceding chart, cocoa beans are higher than they were at the close o f last year, but considerably cheaper than in the early months o f 1923. Stocks o f finished products at the factories vary from moderate to light, and supplies of raw materials are moderate. A slight scarcity o f skilled labor is reported by a few manufacturers, but on the whole lioth skilled and unskilled labor is in ample supply. W ages are unchanged. Collections are fair, and though slower than they were a year ago, are about the same as in February. BUILDING Fifteen cities in the Third Federal Reserve District report that 1.892 building permits of an estimated cost of $9,989,406 were issued during February. Owing to a fire which destroyed important statistical data, W illiamsport officials were unable to report building operations for January. This fact, together with the adding o f Bethlehem, Pennsylvania, to the list of report ing cities, makes comparison of totals with the preceding month impossible. Including the Bethlehem figures, the total number o f permits granted last month was 145 less than in the corresponding month of last year, and the estimated cost declined $1,833,168. In Read ing, Scranton, W ilkes-Barre, Atlantic City, Camden and Philadelphia, the number of permits issued wras greater than in January, but the estimated cost was less, while in Altoona and Trenton the reverse was true. In Phila delphia 956 permits, representing a proposed expendi ture o f $7,173,885, were issued, as compared with 884 permits granted in Tanuary at an estimated cost of $8,642,525. The demand for bricks is in general fair and in some instances good. It is better than it was at this time both last month and last year, and Bricks with the promise o f a large build ing program ahead, manufactur ers are inclined to be optimistic. Some orders now on the books are for delivery either within 60 days or from 60 to 90 days, but the greater part are for ship ment in late spring. Prices in most cases are firm and unchanged since last month, though a few manufacturers state that weakness has developed in quotations for face bricks and for some grades o f fire bricks. In Philadelphia, prices on common bricks fluctuate around $21 per thousand. In only one instance is there said to be any resistance to present quotations. Stocks o f finished building bricks are mostly m od erate and stationary, though some inventories are char- 1924 T F h ir d R e de ral eserve D i s tr i c t 13 BUILDING PERMITS Third Federal Reserve District February, 1924 February, 1923 January and February 1924 Permits Operations Estimated cost Permits Operations Permits Allentown.......... Altoona............. Atlantic City*.. . Bethlehem*....... Camden............. Harrisburg........ Lancaster.......... Philadelphia. . . . Reading............. Scranton*.......... 1rent on............. W ilkes-Barre*... W llliamsport*.. . W Umington....... Vork.................. 1923 Estimated cost 22 .58 149 12 84 37 44 956 133 91 84 71 36 55 60 27 60 149 12 84 42 44 1454 155 91 98 71 36 55 60 $121,200 98,888 380,509 16,060 240,529 135,000 620,860 7,173,885 225,325 220,950 309,696 182,951 67,240 103,778 92,535 19 61 173 5 51 37 28 747 128 40 49 42 13 66 32 35 69 173 5 52 49 28 967 131 40 52 42 13 80 32 $107,725 141,300 1,144,564 2,500 551,798 151,925 238,625 6,504,100 345,925 187,955 84,183 100,933 19,105 149,286 39,720 Total for F eb.. . 1892 2438 $9,989,406 1491 1768 $9,769,644 64 124 285 38 139 ti 80 1840 251 165 184 129 36** 128 132 3672 Estimated cost Permits Estimated cost $540,700 53 $199,225 146,856 93 168,985 1,024,417 391 1,863,464 23 47,850 100,381 772,177 658,461 95 332,600 226,750 66 893,305 53 361,525 15,816,410 13,304,060 1515 466,350 248 555,530 473,165 80 308,210 498,935 108 807,532 391,675 79 216,645 67,240** 25,580** 24** 284,857 695,034 123 209,065 234,450 118 $22,018,133 3069 $19,673,301 * Operations not reported. ** Figures for January not available. NEW BUILDINGS AND ALTERATIONS 1924 1923 New buildings A l l e n t o w n ........... A l t o o n a ................. C a m d e n .. I la r r is b u r g . . . . L a n c a s t e r ............ P h ila d e lp h ia . . . R e a d i n g ................. 1r e n t o n ................. W l l l i a m s p o r t .. . W i l m i n g t o n .. . . ^ o r k ____ Alterations Alterations New buildings Permits Oper ations Estimated cost Permits Oper ations Estimated cost Permits Oper ations Estimated cost Permits Oper ations Estimated cost 7 16 31 29 23 453 35 65 21 37 28 12 18 31 31 23 942 57 79 21 37 28 $73,800 65,200 216,505 119,875 548,2.50 6,522,925 162,125 296,106 58.150 84,662 85,480 15 42 53 15 42 53 11 21 512 98 19 15 18 32 $47,400 33,688 24,024 15,125 72,610 650,960 63,200 13,590 9,090 19,116 7,055 19 5 18 19 11 368 12 35 15 38 60 21 5 28 26 11 876 14 71 15 72 60 $63,600 13,248 76,575 57,500 91,350 6,248,835 149,075 646,330 23,470 515,659 150,500 15 27 26 10 14 400 108 24 9 19 26 15 27 26 11 14 419 108 37 9 19 26 $27,900 14,440 30,088 17,325 31,550 551,125 60,530 77,019 2,110 30,089 44,230 8 21 .503 98 19 15 18 32 acterized as either heavy or light. Supplies o f raw materials range from moderate to heavy and are also stationary. Stocks of fire bricks are either heavy or moderate and are unchanged, as are also supplies o f raw materials. Manufacturers reporting to us are operating at from ^0 to 100 per cent o f capacity, and though some fac tories are closed entirely at this time, the average rate production o f those that are working is estimated to he close to 74 per cent, a higher schedule than that maintained during February. Unfilled orders now held Wl^ insure this rate for from two weeks to the end of the year, the average being approximately two months, j he supply of both skilled and unskilled labor is su f ficient and in several cases plentiful. One firm an nounces a reduction o f 10 per cent in the wages o f its skilled workers, but no other changes are reported in this district. Collections are fair and practically the same as they were a month ago. Manufacturers report that the demand for lumber is good, but dealers classify it as little better than fair. Considerable difference of Lumber opinion exists among both as to whether or not it is as good as it was a month ago, but most of them agree it is better than it was in March, 1923. The call for white pine is fairly steady, but prices are somewhat lower than they were at the beginning o f the year; but spruce and hem lock are as usual moving at unchanged quotations. H ard woods are in good request, especially floorings, and 14 T he B usiness prices for these too are firm. Demand for both yellow and North Carolina pine is good, and prices have fluc tuated but little. There has been a strong call for laths and shingles, especially from suburban builders. Some dealers are quoting several grades of building lumber at somewhat higher levels than those o f a month ago, but no general increase has occurred. Though many orders now taken are for delivery up to and beyond 90 days, the majority are for within 60 days. Stocks o f both finished goods and raw materials are moderate and stationary, though the latter begin to show indications of decreasing. Manufacturers reporting to 1 1 s are operating at an average rate of over 90 per cent o f capacity, which is practically the same as that in the preceding -month. The supply of both skilled and un skilled labor is sufficient, and no wage changes are noted. On February 15, 2,341 workmen were employed in 8 lumber and planing mills in this district, earning an average weekly wage of $22.64. These figures repre sent a reduction of 3.5 per cent in the number o f em ployees on January 15, but an advance of 14.2 per cent in average wages. Collections for the most part are fair and have changed very little from those at this time last month and last year. The call for most products o f the glass industry is somewhat less than fair, and a rather unusual fallingoff in business has taken place Glass during the past month. In the case of window and plate glass, however, the decline is attributed to the fact that few o f the many building operations now going on have reached the stage at which glass products are needed. One manufacturer reports that orders for glass to be used in new church buildings are unusually numerous. The majority o f the orders now on the books are for delivery within 60 days, though some are for shipment up to and beyond 90 days. Prices are in general firm, but quotations on a few grades o f building glass are not as strong as they were a month ago. There is little resistance to present prices, except in the case of those bottle manufacturers whose wares are in competition with machine-made products. Stocks o f both finished goods and raw materials are either moderate or light and practically unchanged. Operations are at approximately 80 per cent o f capacity, which is a somewhat lower rate than the aver age maintained during February. Unfilled orders are sufficient to insure this schedule of production for from three weeks to six months. In practically all cases the supply of both skilled and unskilled workers is reported as plentiful. W ages are virtually unchanged from those in February. Collections range from fair to good, and are the same as they were a month ago and at this time last year. R eview A pril Manufacturers report that the call for paints and varnishes is fair and about the same as it was a month ago. Until recently, the demand Paint has been consistently better than it was in March, 1923, but at pres ent it is thought to be somewhat poorer. W ith the approach of spring, however, repainting o f the interiors and exteriors o f buildings is expected to increase con sumption o f both paints and varnishes. Colors in oil have been in good demand, as has also the call for red lead, much o f which is being used in the manufacture of glass. Uithopone and zinc oxides are holding up well, but litharge is moving more slowly of late. Prices are relatively stable. Quotations for pig lead are firm, and consequently there has been little or no change in the price o f lead pigments. Chrome yellow advanced slightly during the first part o f the month, but owing in no small measure to keen competition, it failed to maintain its position. Quotations on dry colors and most grades o f varnish were unchanged. The figure for spot delivery o f linseed oil has declined to 90 cents per gallon for carload lots. Stocks of both finished goods and raw materials are from moderate to light and are tending to increase. Manufacturers are operating at an average rate o f nearly 80 per cent o f capacity, which is about the same as it was during February. Most o f the orders now taken are for immediate delivery, there being but few for shipment beyond 30 days. The supply o f both skilled and unskilled work men is sufficient, and no wage changes were made dur ing the month. Collections are but fair, and though they are the same as in February, they are not as satis factory as they were a year ago. The market for gas and electrical fixtures varies, some manufacturers reporting good sales and an equal . number poor. Though the deGas and maud is better than it was a electric fixtures ^ . month ago, it is somewhat weaker than in March of last year. Most of the orders alreadv taken are for delivery within 60 days, but a fair portion are for deliverv at a later date. Quotations are generally firm at February levels. Some resistance to prices is offered in the cheaper grades o f lighting fix tures, and in a few cases quotations have been shaded. Stocks o f both finished goods and raw materials range from moderate to light and are stationary.' Manufacturers reporting in this district are operat ing at an average o f approximately 60 per cent o f capacity, which is close to the rate that prevailed a month ago. Unfilled orders will insure the mainte nance o f the present rate for from one week to two months, the average being about five weeks. The sup ply o f skilled labor is scarce, but no shortage o f un skilled workmen is reported. In one instance an in crease o f 10 per cent was granted in the wages o f skilled operatives. Collections are from poor to fair T 1924 ii i r d F ederal R and are slower than they were a year ago, but the same as at this time last month. The call for pottery is good, and manufacturers say that it is not only better than it was a month ago, but considerably stronger than durPottery ing the corresponding period of last year. A s in several other branches of the building trade, manufacturers of sani tary pottery and other porcelain products are preparing for a good spring trade as building progresses. Prices are firm and practically the same as they were at this time last month. In isolated cases, it is true, some shading o f quotations has been in evidence, but this has been due to competition rather than to any weakness in the market. A few firms report that resist ance to prices is being encountered in the market for imported English porcelain and various smaller wares, but in general prices are accepted without serious objection. Stocks o f finished goods are either stationary or decreasing and range from moderate to light. Supplies o f raw materials are moderate and for the most part stationary. A s is to be expected in this, the busiest sea son in the industry, many firms are operating at capacity, and the average rate of production in this district is approximately 88 per cent. Some factories are put ting their output into stock, but in others, unfilled orders, most o f which are for delivery within two months, are numerous. Orders now on hand will insure the maintenance o f the present rate o f produc tion for an average period of three months. The supply o f both skilled and unskilled labor is either sufficient or plentiful, and with one exception, in which the earnings o f skilled operatives were reduced 10 per cent, no wage changes have been made during the past month. eserve D is t ri ct numerous, are at least as plentiful as they were a month ago. There has been an unmistakable decrease, how ever, in the call for iron bars, which all manufacturers reporting to us classify as poor. Oil supply companies, the railroads, and automotive interests have been taking fair quantities of iron and steel castings, but when the enormous requirements of these three industries are considered, the present demand cannot be characterized as more than fair. Orders for crude steel are not hold ing up to last month’s levels, but this is attributed to the fact that consumers using this product as a raw material are allowing stocks to decrease. The call for plates and structural shapes is fair-and is about the same as it was during the preceding month, with build ing contractors and oil companies taking most of the deliveries. Sales of scrap steel and pipe are smaller than they were during February, and the market for these is dull. Rails are moving slowly, but the demand for spikes, cars, engine equipment, and special track has improved, owing to the placing of several substantial contracts by railroad and traction companies. Miscel laneous articles, such as ball bearing clips, steel pens, fabricated steel strips, and steel shelving, are in fairly good request by a wide variety of consumers. Aside from a few orders placed for moderate tonnages, little activity in the pig iron market has been evident during the past month in this district. Prices have felt the effect o f the lessened demand, and not only have concessions been granted, but quota tions themselves in several instances have been reduced. Collections are fairly good and are much the same as they were in February and at this time last year. IRON AND STEEL A t the beginning o f the year the mid-winter dulness m the iron and steel industry gave way to a marked increase in buying, which created a brisk activity throughout the market. Part of this was undoubtedly (1aie to the low prices prevailing then, as it was com monly believed that prices had reached the lowest levels compatible with production costs and with standards of equality. The subsiding of the demand for pig iron and several steel products which has occurred in the past two weeks is difficult to explain, except by the theory that consumers have never wholly given up the belief that another reduction in prices is imminent. This, at least, according to several responsible sources is the most Plausible reason. Not all iron and steel products have fallen off in demand. The call for light and heavy hardware is somewhat better than it was during February, and requests for machinery and tools, if no more After a steady decline since M ay, 1923, the composite price of pig iron turned upward in recent m on th s; but that of finished steel has been fairly steady for nearly a year. Source— Iron Age In the second week o f March the price o f Philadelphia 2 X pig iron declined from $24.26 to $24.13 per net ton. The Iron A g e ’s composite prices o f pig iron and fin ished steel both declined during the month, the former T i6 he B usiness 9 cents and the latter .029 cents. A ccording to sta tistics kept by this periodical, the composite price of finished steel is now as low as it has been at any time in the past twelve months. The chart on page 15 shows the trend o f these composite prices of pig iron and finished steel by months since January, 1920. On the basis o f the annual rate at which the industry is now producing steel ingots, it is estimated that manu facturers are operating at over 91 per cent capacity, which compares favorably with the average rate o f 87 per cent maintained during February. There were 3.780,663 tons o f steel ingots produced in February, an increase of 219,275 tons over the total output during January. Pig iron production also advanced last month, the output totaling 3,074,757 tons, as compared with 3,018,890 tons during January, an increase o f 55,867 tons.. Notwithstanding the greater production, unfilled orders o f the United States Steel Corporation continued to grow. A t the end of February orders on their books aggregated 4,912,901 tons, representing an increase of 114,472 tons over the total on January 31. The supply o f both skilled and unskilled labor is in general sufficient, there being but few instances in which any scarcity is reported, and that in each case is in the ranks o f skilled operatives. On February 15, there were 14,430 workers employed in 74 foundries and machine shops in this district, earning an average weekly wage o f $28.52. This represents an increase o f 0.1 per cent over the number o f workmen employed on January 15, and an increase o f 3.5 per cent in the average wage during that period. Collections are fairly good, but are not quite as satis factory as they were at this time last month. COAL W ith the end o f the winter approaching and with dealers showing a disinclination to carry more than moderate stocks over into the Anthracite spring season, the demand for domestic anthracite has notice ably lessened. The call for steam sizes too is weaker than it was a month ago, though a few operators say that it shows signs o f strengthening. Purchasers are thought to be waiting to learn whether or not a reduc tion in prices will be made on April 1. Circular prices have changed little if any during the month, but in several instances individual companies have made reductions in the price of both domestic and steam grades. On March 17 Company stove and barley sizes were quoted at from $8.90 to $9.25 and at $1.50, respectively, which were the same as those listed at this time last month. All collieries reporting to us are operating at capacity, and production throughout the Third Federal Reserve District has been high. Though output for the entire country declined during the week in which W ashington’s R A pril eview Birthday occurred, it recovered in the succeeding week and is now close to the level maintained in the industry a year ago. In the table below are presented figures showing the output in tons for each of the past five weeks and for the corresponding periods in 1923. PRODUCTION OF ANTHRACITE* Week ending February 1G....................... February 23....................... March 1 ............................. March 8 ............................. March 15........................... 1924 1,900,000 1,655,000 1,866,000 1,882,000 1,941,000 1923 net “ “ “ “ tons “ “ “ “ 1,826,000 1,838,000 2.104,000 2,049,000 2,057,000 net “ “ “ “ tons “ “ “ “ ♦Estimated by the Geological Survey. Practically no shortage o f either miners or miners’ helpers was reported this month, and labor disturb ances were negligible. Until the new contract between the miners and operators was made at Jacksonville, Florida, the demand for bituminous was increasing. Bituminous but with the uncertainty regard ing future production at an end, consumers relapsed into their former policy of cautious buying and at present the call is barely fair. Most of the contracts placed come from public utility sources, and very little business is being received from railroads and household consumers. Some activity is reported in the spot market, where prices are from 25 to 50 cents lower than contract prices. Though quotations have declined in several sections o f the country, there has been no change in prices during the past month in this locality. One operator states that as his mine is now submitting quotations below the actual cost o f produc tion, a further reduction in prices is impossible. Production declined in the week ending February 23 on account o f the holiday, and since then the trend has been downward. Output so far this year, however, has been greater than it was in 1923, and over 100,000,000 tons more bituminous have been mined during the coal year ending March 15 than during the similar period o f the preceding year. Output in tons for each o f the last five weeks is given in the table below, together with the figures for each o f the corresponding weeks in 1923. PRODUCTION OF BITUMINOUS* Week ending 1924 | February 16............. . . 11,139,000 February’ 23.*........... ..10,367,000 March 1 ................... ..110,705,000 March 8 ................... .. 9,617,000 March 15................. . .1 9,640,000 ♦Estimated by the Geological Survey. net “ “ “ “ 1923 tons “ “ “ “ 10,431,000 10.324,000 10,946,000 10,628,000 10,428.000 net “ “ “ “ tons “ “ “ “ T 1924 hird F ederal R Some non-union mines are running on full time, but union companies are operating either three or four days a week, or at a rate not exceeding 65 per cent o f ca pacity. There is an ample supply o f both miners and miners’ helpers in this locality. Orders for coke are not as numerous as was expected a few weeks ago, but manufacturers believe that the hope of lower prices has kept Coke blast furnace interests out of the market, and that those who have not yet covered their second quarter requirements will shortly he compelled to do so. Spot prices of fur nace coke have recently declined and now range from $4.00 to. $4.25 per net ton at the ovens, and quotations on foundry grades declined 25 cents on March 17, to $4.75 per net ton. Production of beehive coke increased during the last week in February, and the output in the week end ing March 8 was greater than in any week since last September. Since then, the weekly output, while not at as high a level, has been keeping pace with the con sumers’ needs. Figures are given below showing the output in tons for each o f the past five weeks as well as for each corresponding week in 1923. eserve D istrict i/ Pennsylvania crude oil advanced several times during January, until it reached a high figure at $4.50 per barrel on the 30th o f that month. Since then it has remained firm and unchanged. In sections o f this field other than those in which premiums are paid, quotations are about fifty cents below prices listed in the Northern section. Necessarily, various refined products have also advanced, particularly gasoline and lubricating and fuel oils. On March 22 the tank-wagon price o f gasoline in Philadelphia was 20 cents per gallon, which was the same as it was a month ago. Profiting by the experience gained last year, when overproduction adversely afifected the market, producers of petroleum have been restricting their output ever since November. In January, production for the entire United States totaled 56,354,000 barrels, or 2,538,000 barrels less than the total for December. Production in the Pennsylvania field also declined, from 557,000 to 541,000 barrels. The table below shows the monthly output o f petroleum in the entire country since N ovem ber, 1923. For comparative purposes, figures for the corresponding months of the preceding year are also given. PRODUCTION OF PETROLEUM** PRODUCTION OF BEEHIVE COKE* 1923-1924 Month Week ending F e b r u a r y 16....................... F e b r u a r y 23....................... M arch 1 . . M a r c h 8 ................................... M a r c h 15 1924 293.000 277.000 319,000 326,000 307,000 1922-1923 1923 net tons .378,000 371.000 “ “ “ “ 402.000 “ “ 366.000 “ “ 410.000 net tons “ “ “ “ “ “ “ “ November.............................. December............................... January................................. February............................... 64.829.000 bbls.* 47.531.000 bbls. 50.137.000 “ 58.892.000 “ 51.467.000 “ 56.354.000 “ 55.027.000 “ 48.413.000 “ ♦Barrels of 42 United States gallons. ♦♦Estimated by the Geological Survey. ♦Estimated by the Geological Survey. OIL For some time past several oil producers’ associations have directed their efforts toward educating the public C j 1 to make increased use o f the TXX e a n 5? , various products of Pennsylvama petroleum. that some Measure o f success has attended their efforts is evident F'om the fact that the present demand for crude oil from Pennsylvania fields is stronger than it has been for several years. Another important factor stimulating demand is that some independent refiners have been willing to pay premiums of from 15 to 25 per cent in order to obtain this high-grade oil. Because o f weather conditions, the call for gasoline during January and February was somewhat better than in the correspondlng months last year, but o f kerosene the reverse was true- The demand for lubricating, fuel, and gas oils and for wax is good, and sales this year have been k1eater than those o f the same period last year. Starting at $3.00 per barrel, the price o f Northern Stocks in the hands o f producers are heavy and are increasing, but refiners state that, except in the case o f gasoline, their supplies are comparatively light. Neither o f these conditions is especially noteworthy, as supplies o f crude oil will diminish as the curtailment o f produc tion makes itself felt, and stocks o f gasoline are nor mally large at this time and will continue to increase until the beginning o f heavy consumption in the spring. Operations are at close to capacity, and the supply o f labor is adequate. Collections may be classified as good,, and compare favorably with those o f a year ago. CHEMICALS Business in chemicals has been affected by dulness in some o f the chief consuming industries and by keen competition among producers. Although manufacturers o f paper and glass are reported to have purchased chemicals in fair quantities, demand from the textile and leather industries has been unsatisfactory. In fact, some makers o f chemicals largely attribute the decrease in sales since March 1 to the poor demand from the T i8 he B usiness leather trade. A t any rate, few industries are as active as they were at this time last year, and this is reflected in smaller sales of chemicals. Spot demand has been quiet, and though some firms find that withdrawals on contract have been fairly satisfactory, others state that they are below expectations. M oreover, rivalry for business in nearly all chemicals is keen, and but few plants have been able to run at capacity. Recently, competition has been particularly noticeable in alkalies and in bleach and chlorine, with the result that quotations on these products reached relatively low levels. But as competition subsequently lessened, among both manufacturers and dealers, prices advanced. Conditions in the wood chemical business also are extremely competitive, and producers report that methanol, acetate o f lime, charcoal, and wood alcohol are in poor request. Fertilizers are selling but slowly at relatively low prices. Owing to the activity o f the paint and linoleum trades, however, the call for pigments, such as lithopone, has continued exceptionally good. Demand for dyestuffs and intermediates is fair. Dealers in fine chemicals report that prior to February 15 business was excellent, but that since that date sales have decreased. Retailers are making moderate pur chases o f pharmaceuticals, mainly for current needs. The trend o f prices is irregular, but quotations in general are weak and the tendency is downward. In this district but few plants reporting to this bank are running at capacity, and the majority are operating only from one-half to three-quarters o f their equipment. The supply o f labor is for the most part adequate, though makers o f wood chemicals report a scarcity o f wood cutters. Many producers state that stocks o f finished goods are moderate and stationary, but a few indicate that they are heavy. A s a rule, raw materials are easily obtained. R A pril eview have increased their gain over the figures of the pre vious year, and domestic consumption in February— 507,876 bales o f lint and 41,698 bales of linters— though smaller than those for February, 1923, were larger than many anticipated. M oreover, news o f the new crop, though meagre, was not reassuring. Reports o f late ness in planting, caused by cold or rainy weather, indi cate that the start is from 10 days to 3 weeks late in different parts o f the cotton belt, and reliable figures on the acreage o f course cannot yet be had. The following table compares the last crop with that o f the two previous years. SUPPLY AND TAKINGS OF AMERICAN COTTON* In bales Season of 1923-1924 Visible supply, American, at end of previous season (July 3 1 )........................... 869,968 Crop in sight, American, on March 21.......................... 10,045,194 Season of 1922-1923 .Season of 1921-1922 1,968,159 4,112,651 9,991,746 8,581,832 Total................................. 10,915,162 11,959,905 12,694,4S3 Visible supply, American, on March 21.......................... 2,467,963 2,468,370 * 3,727,848 World’s takings of American to March 21..................... 8,447,199 9,491,535 8,966,635 ♦Figures compiled by the New York Cotton Exchange. That the use o f American cotton during the past four years has been much smaller than it was in the four years immediately preceding the war is plainly indicated in the accompanying chart. In this connec- Several firms have had difficulty with collections, but on the whole they are fair. COTTON The continuing dulness in the cotton goods markets has more than offset other considerations which might otherwise have had a bullish Raw cotton effect on the price o f raw cot ton, and quotations for the staple, though fluctuating less than they did a month ago, are lower than they were at that time. The price o f spot cotton at N ew Y ork, which on February 23 stood at 29.90, fell to 28.15 on March 7, but since that date has rallied somewhat and on March 22 was 28.85. Dur ing this period another feature affecting the market adversely has been the almost daily advices o f further curtailment in production both in northern and southern mills, which, the trade expects, will be reflected in next month’s consumption figures. On the other hand, exports during the past month In only eight m onths of the past four years has the consum ption and exports of American cotton exceeded the m onthly average for the years 1910-1913. Source— Department o f Commerce 1924 T hird F ederal R tion it must be remembered that in the pre-war years the price o f cotton was much lower than in the more recent years. Lower prices have been named on many lines of fin ished fabrics during the past month. Reductions were made by the majority of proCotton goods ducers reporting to this bank, and in a number o f instances amounted to 10 per cent. Weakness in raw cotton was largely responsible for concessions on finished goods, but other factors were unsatisfactory demand and strong resistance to prices on the part of buyers. These lower prices, however, do not appear to have stimulated demand for cotton goods as yet, and with a few exceptions producers state that business is but fair or poor. In fact, many manufacturers report a decrease in sales as compared with last month’s. Caution is the outstanding characteristic, and the instability of prices for raw cotton is believed to be one o f the prin cipal reasons for this conservatism. Buyers showr little inclination to order ahead and are confining their pur chases mainly to current needs. A s a result, a large majority of the business on the books o f producers is tor delivery within the next sixty days. In contrast, however, with the slow movement of most cotton fabrics, a few products are selling actively, ta k e r s of surgical elastic goods indicate that demand ls good, and one producer states that sales are 40 per cent greater than they were during the first quarter of 1023. The call for crinkled bedspreads containing a kmge amount of artificial silk is reported to be excel lent. Plush continues in good request, and one manu facturer in this district is running two shifts. On the other hand, the call for tapestry is rather dull, since demand still favors plush as a covering for furniture. Some makers o f tapestry have noted keen competition Wlth imported goods. Business in hair cloth is quiet, and demand for tapes and narrow fabrics is but fair. I here has been a marked curtailment of operation in nulls making cotton goods in this district. The number of unfilled orders is smaller than it was last month, and at the present rate o f production orders on hand will in tew cases insure operations for more than two months. Although some o f the larger producers are running most of their equipment, the majority o f manufacturers are operating at from 50 to 75 per cent o f capacity. A s a .rule, this curtailment has prevented the accumulation " f finished goods, stocks o f which are reported to be moderate. In some instances, however, production has exceeded sales, and stocks are increasing. Supplies of raw material are o f medium size. In consequence o f ^ duced operations many textile workers have been md off,” with the result that the supply o f labor is c’ther sufficient or plentiful. Collections are fairly good. eserve D 19 istrict WOOL Domestic markets for wool are at present influenced' strongly by the world-wide scarcity o f raw wool and dulness at the mills. Figures of Raw wool the Department o f Commerce indicate that the total world pro duction o f raw wool during 1923 not only fell below that o f the preceding year, but also was 18.7 per cent: less than the 1909-1913 average. The sharp decline in the Australian clip is noteworthy. On the other hand,, demand for wool from foreign countries has been un usually active, and prices abroad have advanced steadily,, with the result that they are relatively much higher than quotations in the United States. In consequence, im ports o f wool are comparatively small, though they have shown a seasonal increase since last November, as the accompanying figures indicate. In this connection it must be remembered that more than half of the wool consumed in this country comes from abroad, and the selling season there is drawing to a close. Domestic production of raw wool has not changed substantially in the last 40 years, but owing to the rapid growth o f the woolen and worsted goods industry, imports have more than trebled since 1900. This is illustrated in the chart on page 20. Owing to small imports, stocks o f wool in the United States were depleted, and the improved demand late in 1923 and early in 1924 was followed by strengthening" prices in domestic markets. Dun’s average of 98 quo tations on raw wool increased from 74.28 on November 9 to 82.46 on February 8, and on March 21 was 82.47. Spinners found it difficult to obtain higher prices fo r IMPORTS OF RAW WOOL INTO THE UNITED STATES* In pounds Month January... . February.. . M arch.. .. April......... M a y .......... June.......... July........... 1924 30,785,931 39,289,430 September Oetober .. Total... . 1923 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 11,797,032 1922 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 14,744,5985,951,755 9,396,864 15,866,744 14,592,459' 9,085,706 10,946,395 12,519,853 394,250,395 376,795,485 320,665,751 ♦Department of Commerce. yarn from manufacturers o f piece goods, and the latter in turn met with the resistance to their quotations om finished fabrics. Because o f present unsatisfactory de mand for many kinds o f yarns and goods and the un certainty of future business, mills are covering only 20 T he B usiness their current requirements of raw wool. M oreover, little speculation in raw wool among dealers is evident. In the W est, however, some contracting for raw wool on the sheep’s back is reported. Notwithstanding the slow movement of raw wool to mills, prices remain firm because o f limited domestic supplies and the continued strength o f foreign markets. Collections are satis factory. The relatively greater increase in the imports of raw silk since 1900 indicates a more rapid growth in silk m anufacture than in wool m anufacture, as domestic raw wool production has remained practically stationary for forty years. Source— Department of Commerce Cautiousness, inspired by lack of confidence in the future, has led the weaving and knitting trades to restrict their orders mainly to Woolen and the small amounts necessary for worsted yarns current requirements. This is not surprising in view of the strong opposition to prices and the slow response o f buyers to offerings of goods for future delivery. Although many weavers have opened heavy-weight lines, orders are coming in but slowly, and producers have little knowledge o f the amount or kind o f yarn that will be needed for fall goods. Consequently, few weavers are covering other than their immediate requirements o f yarn. This is likewise true of the knitting trade. The present situa tion is in decided contrast with that of a year ago, when considerable business for future delivery had been taken by spinners. Some trades are buying more than others, thus reflecting conditions in the market for finished goods. For example, makers o f dress goods have enjoyed a fair business in fancy goods for spring and have purchased yarns more actively than manufac turers o f men’s wear, who, as a rule, have received comparatively few duplicate orders. Spinners o f woolen carpet yarns report that demand is quiet. Sales have slackened considerably during the past two months, and R eview A pril a number of carpet manufacturers have not taken the specified amount of yarns on existing contracts. Notwithstanding the dull demand, many spinners in this district are running most of their equipment, but it is reported that unless business increases in the near future, they must either curtail production or accumu late stocks. Some mills are already operating on re duced schedules. Stocks of yarns in the hands of pro ducers are as a rule moderate, but a few spinners report that supplies of carpet yarns are heavy and are increas ing. Labor is plentiful. Spinners complain that prices obtainable for yarns are unsatisfactory. Since last November raw wool has advanced about 11 per cent, and during the past few weeks has remained firm, mainly because o f limited domestic supplies and strong foreign markets. But for the most part spinners have been unable to secure pro portionate increases for yarns. Although some conces sions are reported, quotations on yarn show little change from those o f a month ago. Collections range from fair to good. Conditions in the market for woolen and worsted piece-goods continue to be unsettled; some firms are enjoving good business, while Woolen and others find that demand is dull. worsted goods , , , , r ° A s a rule, tancy dress goods for spring have sold fairly well, orders being mainly for prompt shipment. During recent months demand has been extremely variable, and business in dress goods has thus been complicated, but at present, buyers favor alpaca crepes and twills with hair-line stripes. For the most part, men’s fabrics have not sold as actively as women’s, and some tnills indicate that business is very quiet. In fact, a few have devoted some of their looms to the making o f dress goods. On the other hand, cer tain manufacturers of men’s wear report a fair request for light-weight fabrics to be delivered promptly. Makers of fancy woolen cassimeres indicate that de mand is good. During the past month producers have noticed a decrease in sales of men’s wear and dress goods for spring, which is partly to be expected since the light-weight season in piece goods is drawing to a close. Fall lines o f woolen and worsted fabrics have been opened by most makers o f men’s wear and by many manufacturers o f dress goods. Some of the latter, how ever, have deferred the showing of their lines. Like the largest producer, independent manufacturers have named prices lower than those on spring goods and ap proximating those o f a year ago. Producers have not only named attractive prices but included many new fabrics in the new lines, and fancy goods are again prominent in women’s wear. But in general buyers have been very conservative in making commitments, especially on goods for men’s wear, and orders are com ing in but slowly. Some producers find that medium priced suitings have sold best, while others state that T 1924 hird F R ederal they have received an equal number o f orders for all grades. Operations in mills in this district vary. Many plants are running on full time, but some are operating at only from 50 to 75 per cent o f capacity. A few mills making men’s wear are running only a small percentage of their equipment. Operations in the country as a whole dur ing the past five years are reflected in the accompanying chart, showing the ratio between the actual consumption o f wool each month and the average monthly consump tion during the period from 1919 to 1923 inclusive. Operations were above the average during the latter part o f 1919 and the first part of 1920, and during similar periods of 1922 and 1923. In the past several months the ratio has been below the average, but since the first of the year it has again risen above. WOOL CONSUMPTION INDEX NUMBERS_______________________________________________________ J I m m ______ 1919 ' 1920 1921 M in , Aveno^ 1919-1923- loo c Above overage Es ssa Belowaverage 1922 1923 J 1924 During the greater part of the past two years, consum ption of wool has been above the average, but since last June curtailm ent of operations by m ills has caused the am ount consumed to fall below the average In several m onths. Source— Department of Commerce Although some firms report that stocks o f finished goods are heavy, the majority state that they are either Moderate or light. A t present, stocks are tending to flecrease because of shipments o f spring merchandise. Supplies of raw materials are moderately light. Labor ls either sufficient or plentiful. A s compared with those ° f last month, prices on piece goods for spring are as a rule unchanged. Fabrics in best demand have comruanded prices relatively higher than goods for which there is little demand. Considerable opposition to quo tations is reported, especially on fine worsteds for men’s VVear and on staple goods. Collections are fairly good, and according to proc ucers, this indicates that conditions are financially sound, though buyers are cautious, especially as regards tuture commitments. eserve D i s tri ct 21 SILK Demand for raw silk in the domestic market is quiet. Perhaps the most important factor responsible for this dulness has been the slow moveRaw silk ment o f finished goods. This has caused producers to lose confidence in the future, with the result that they have purchased raw silk in limited amounts mainly for cur rent use only. On the other hand, supplies o f raw silk have accumulated in domestic warehouses, since, for several months prior to February, imports exceeded deliveries to mills. This is indicated by figures o f the Silk Association o f America, given on page 22. Dur ing February, however, this situation was reversed, with the result that stocks decreased somewhat. But they are still relatively heavy. Instability in quotations on raw silk at Yokohama and fluctuations in yen ex change have also tended to make buyers conservative. A s a result of the above factors, prices on raw silk have weakened. Kansai double extra cracks fell from $8.20-$8.25 on January 5 to $6.70-$6.75 on March 15, the lowest price since April, 1922. Lower prices, how ever, have not stimulated demand appreciably. In fact weakness has made many producers o f finished goods more cautious, since they have been forced to grant con cessions to their customers. But recently an improved sentiment has been noticeable in the domestic market for raw silk and quotations have strengthened some what. According to the Textile World, demand for arti ficial silk is only fair. Sharp reductions in prices dur ing February have apparently made buyers cautious, since it is reported that their future commitments are smaller. Quotations on artificial silk now range from $1.45 to $3.40 per pound, in contrast with from $6.65 to $7.05 per pound for Japan raw silk. The rapid growth in the use o f artificial silk in this country dur ing the past decade is reflected in the chart on page 22. During 1913 domestic production and imports o f artificial silk yarns, threads and filaments were only about 13.8 per cent as large as imports o f raw silk, but during 1923 they were almost 80.0 per cent as great, mainly because of- the sharp increase in domestic pro duction. The use o f raw silk has also grown rapidly, as is indicated by the chart on page 20. During the fiscal year ending June 30, 1923, imports were almost five times greater than they were in 1900. W ith few exceptions, consumers o f thrown silk have continued their policy o f purchasing only for immediate requirements, and as a result Thrown silk business in thrown silk is quiet and unsatisfactory. Some throw sters indicate that demand is fairly good, but the ma jority find it poor. Fluctuations in raw silk and con sequent changes in prices o f thrown silk, in addition to the slow movement of silk goods, have made buyers cautious. 22 T B he usiness R A pril eview SILK IMPORTS, STOCKS AND DELIVERIES—AMERICAN MILLS* Imports during month Storage at end of month Deliveries to American mills In bales 1922 1924 1923 1922 1924 1923 1922 1924 1923 Januarv.......................... February........................ March............................. April.. M ay................................ ............ June............ July................................ August........................... September...................... October........................... November...................... December....................... 36,364 25,632 32,593 33,759 28,336 27,414 25,814 23,727 25,622 36,092 28,837 31,229 27,944 28,835 40,177 19,950 19,746 21,438 34,842 35,598 25,575 39,813 38,492 46,569 36,733 33,057 44,398 40,226 47,087 44,615 39,436 28,657 29,962 25,865 22,914 25,459 27,367 32,679 35,398 40,959 31,139 28,982 22,077 19,268 20,826 26,895 27,474 32,515 36,795 45,893 47,159 49,174 32,925 29,804 34,680 36,231 33,515 38,193 24,509 27,824 28,573 33,547 26,929 25,917 25,225 23,274 33,842 22,107 26,651 24,247 33,284 29,529 24,996 34,772 34,212 37,471 35,467 31,042 Total....................... Monthly average.. . 61,996 30,998 42,312 33,367 32,350 62,729 31,365 358,417 29,868 367,620 30,635 350,202 29,184 391,990 32,666 ♦Silk Association of America. Most o f the orders on the books o f throwsters are for delivery within the next thirty days, and at the present rate of production unfilled orders will last only a few weeks. Operations in this district vary considerably; some firms are running at as little as 15 or 20 per cent o f capacity, a few at more than 75 per cent, and the majority at about 50 per cent. But notwithstanding curtailment, some scarcity o f experienced help is still reported. Throwsters apparently have as little confi dence in the future as their customers, since they are reducing stocks o f finished goods and raw materials, both of which are light. During 1913 dom estic production and im ports of artificial silk were only 13.8 per cent as large as imports of raw silk, but by 1923 this percentage had risen to 79.6, m ainly because of the sharp increase in domestic production of artificial silk. Sources—Silk Worm, Textile World, Department of Commerce Competition for business is keen. Largely because o f lower quotations on raw silk, some concessions on thrown silk have been granted during the past month. Collections show little change since last month and range from fair to good. Like most other textiles, silk fabrics are as a rule moving but slowly. Some manufacturers have enjoyed a fair or good request for their Silk goods products, but the majority indi cate that demand is poor and that sales are smaller than they were last month. One producer reports a satisfactory volume o f business dur ing the first two months o f 1924, but since the end o f February his sales have steadily decreased. Both buyers and sellers appear to lack confidence in the future, which is not remarkable in view o f weakness in raw silk and strong opposition to quotations on finished goods. Buyers are confining their purchases mainly to current requirements, and producers have but few orders for delivery after the next sixty days. Neither retailers, jobbers, nor cutters-up are buying actively, though it is reported that business with retailers has been best. Demand continues to favor crepes, and for spring, goods with fancy effects seem to be more popular than staples. Fancy plaid goods have sold well. Ribbons, materials for the millinery trade, and linings for coats and suits are reported to be sluggish. Probably one o f the principal reasons for caution on the part of buyers has been the fact that prices for raw silk have steadily declined. This has led buyers to request concessions on silk goods and to offer strong resistance to quotations, especially on staples and piecedyed fabrics. In consequence, most producers have made reductions ranging from 5 to 10 per cent during the past month. But concessions do not appear to have stimulated trade, and a number o f manufacturers have reduced operations. Curtailment, however, has not been gen eral, since most mills are running at about the same rate as last month and a few have increased operations. T *924 hird F e de ra l I he majority o f plants in this district are utilizing from 50 to 80 pef cent of their equipment, though some are operating at or near to capacity. A t the present rate of production unfilled orders will insure operations in many plants for about one or two months, but in some instances orders on hand will keep the plant running only two or three weeks, and a few mills are either closed down or are operating for stock. In most cases, however, stocks of finished goods are tending to de crease, though they are still fairly heavy. M anufac turers are keeping supplies of raw materials moderately light, mainly because o f declining prices and uncertain trade in finished goods. Labor is in sufficient supply, and for the most part wages have remained unchanged for some time. Collections are fair. HOSIERY Conditions throughout the hosiery trade continue to he of such a mixed character that it is impossible to describe the business as either good, fair, or poor. A l though the great majority o f our reports state that, as compared with the previous month, trade is either un changed or poor, a fair number o f mills are working at R eserve D i s tri ct 23 capacity. Indeed, some are working overtime and have sufficient orders on hand to keep them busy for from 60 to 90 days. Beyond that time, however, compara tively few contracts have been closed, and sales for fall are much smaller than they have been at this season in the past two years. This is largely because only a few mills have booked orders for woolen hosiery for either men or women. Novelties are in many instances selling better than staples, as is evident from reports by manufacturers of children’s hosiery, in which line fancy-topped ribbed hosiery is the present leader. For women, silk hosiery, especially in chififon and light weights, is in better re quest than are the usual w eights; and light colors, such as nude and peach, are selling more readily than the staple black. Full-fashioned mills as a rule are busier than seamless mills, but orders for women’s seamless hosiery o f silk and fibre mixtures have been of good volume. Low-end hosiery has been dull, partly owing to the unsettlement induced by the decliningprices of cotton yarns, and some mills are reported to have named very low prices for hosiery in order to attract business. Prices for pure silk full-fashioned hosiery for women HOSIERY INDUSTRY* Third Federal Reserve District QUANTITY (DOZEN PAIRS) January, 1924 M EN’S W OMEN’S TOTAL Full fashioned Seamless Full fashioned Seamless Boys’ and Childrens’ Athletic Misses’ and Infants' and Sport (all styles) (all styles) (all styles) Production............................................................ 1,053,707 52,611 360,133 249,296 230,461 34,207 116,338 10,661 Orders and stocks: Shipments during the month................................... I* inished product on hand at end of month.......... Orders booked during the month........................... Cancellations received during the month.............. unfilled orders on hand at end of month.............. 907,247 1,786,653 845,240 36,082 2,420,16S 53,324 35,933 50,018 1,201 74,873 283,488 214,545 459,664 465,026 284,600 253,832 16,114 3,029 616,685 840,434 166,313 307,425 158,147 13,542 369,030 31,278 83,214 23,384 286 34,320 150,376 415,438 69,154 1,910 474,086 7,923 19,953 6,105 10,740 QUANTITY (DOZEN PAIRS) February, 1924 Production........................................................... an<^ s^o c k*s: Shipments during the month.................................. ^ wished product on hand at end of month.......... Orders booked during the month........................... Cancellations received during the month.............. I nfilled orders on hand at end of month.............. Preliminary report prepared by Bureau of the Census. M E N ’S TOTAL W OM EN’S Boys’ and Childrens’ Athletic Misses’ and Infants’ and Sport (all styles) (all styles) (all styles) Full fashioned Seamless Full fashioned 984,873 51,929 332,466 255,121 204,432 27,46S 108,717 4,740 963,393 1.785,266 757,484 43,463 2,149,654 35,787 44,832 32,502 877 73,244 284,665 481,842 240,979 26,065 554,911 255,850 491,089 227,443 3,696 792,191 199,805 304,285 164,744 7.125 318,537 33,059 77,720 22,025 352 25,141 150,334 365,991 65,233 5,348 374,925 3,893 19,507 4,558 Seamless 10,705 T 24 he B usiness have been fairly steady, but new numbers in lighter weights have been placed on the market by some manu facturers at prices below their regular grades. Lower quotations have also been named for all hosiery made either in whole or in part of fibre. Production in general has changed but little. More firms, however, report that their output in March has increased than that it has decreased, as compared with the figures for the previous month. Reports to the Bureau o f the Census by 148 identical mills in the Third Federal Reserve District are summarized in the tables on page 23. It will be noted that production in Feb ruary was 6.5 per cent less than it was in January. Operations during December and January by 330 identical mills situated throughout the United States, reporting to the Bureau o f the Census are shown in the accompanying table. HOSIERY INDUSTRY IN THE UNITED STATES December, 1923 January, 1924 Full-fashioned, m en ............................. Seamless, men...................................... Full-fashioned, women......................... Seamless, women.................................. Bovs’ and misses’ , all styles............... Children’s and infants’ , all stvles . . . . Athletic and sport, all styles............. 69,228 1,64.5,061 477,824 999,259 513,342 377,474 23,624 83,172 1,964,345 532,967 1,191,778 595,604 435,631 24,398 Total production.............................. Total shipments during m onth.......... Total finished product on hand, end of month................................................ Total orders booked during month. . . Total cancellations received during m onth............................................... Total unfilled orders on hand end of month................................................ 4,105,812 4,082,882 4,827,895 4,221,003 7,540.163 3,730,405 8,601,026 3,849,719 260,797 192,914 9,619,470 9,435,031 Moderate or light stocks are reported by the great majority o f the mills with which this bank is in com munication. and about half the reports state that stocks have decreased during the past month. Collections are fairly g o o d : that is, the same as they have been in recent months. UNDERWEAR W ith few exceptions makers o f underwear report that business is poor, and the majority find that sales are smaller than they were last month. Weakness in raw cotton has apparently increased the conservatism of buyers, especially as regards future commitments, and as a result demand for heavy-weight underwear has been especially quiet. Jobbers hesitate to place orders for underwear at quotations that are considerably higher than those o f a year ago, while many other finished cotton goods are selling for about the same as or less than last year’s prices. M oreover, retailers have not purchased spring underwear freely from jobbers, who, in consequence, are placing but few duplicate orders with R eview A pril producers. Not only is new business limited, but in one or two instances cancellations and requests to post pone shipments have been received, particularly from the Northwest. Few lines of underwear are selling actively, but the call for men’s and children’s underwear is better than that for women’s. Although some producers have booked a fair number of orders for shipment after the next three months, the bulk o f the business is for delivery within the next 60 days. A s compared with last month, unfilled orders show a decided decrease, and in many instances orders on hand will insure operations for not more than one or two months. A few producers, however, have received sufficient business to keep their plant busy until August or September. Operations vary considerably, but many plants are running at only 60 per cent o f capacity, and the average for this district is only about 70 per cent. Curtailment has evidently prevented the accumulation of finished goods, since stocks are reported to be fairly light and are tending to decrease. Supplies o f raw mate rials are also moderately light. A s a rule, the supply of labor is adequate, and wages are unchanged. The sharp decline in quotations on raw cotton and cotton yarns during recent months has disturbed the market for underwear. Buvers have offered strong resistance to prices and have hesitated to order for the future at existing quotations. These factors, coupled with the slow movement o f spring goods, have rendered prices for underwear weak, and a number of manufac turers have made reductions during the past month. It is reported, however, that these concessions wrere mainly on spring underwear, and for the most part quotations remain unchanged. Collections are in a few instances good, but in the majority o f cases they are only fair. FLOOR COVERINGS Sales of carpets and rugs, though not large, had in creased somewhat during the first three weeks o f Feb ruary, and greater activity was noted in the mills in this district. Our survey o f employment and wages in this industry shows that during the week ending Febru ary 15 the number of wage earners in 14 reporting establishments increased 3.6 per cent as compared with that of the corresponding week o f January. The total weekly payroll was 11.2 per cent larger, and average weekly earnings were 7.3 per cent higher, indicating a heavier production schedule. It had become generally understood that most carpet manufacturers had agreed to return to the custom o f several years ago and hold their openings in May instead o f April, and this was considered to be a constructive move by all elements in the trade. Then came the announcement o f an auction sale be ginning March 3 to be held by Alexander Smith & Sons Carpet Company, the largest producers o f carpets and rugs in this country, who stated that they would offer 1924 T hird F ederal 87,000 bales o f Axminster, velvet, and tapestry rugs, and 3,000 rolls of carpets of the same qualities. It was further stated that this offering represented present stocks and production, and would all lie shipped during March. A s usual, the auction sale was largely attended, and the merchandise was disposed o f for a total of over $5,400,000. The prices obtained, however, were considerably lower than those at the October auction, and Axminsters especially were sold at heavy reductions. A fter the sale the same firm issued price lists for goods for shipment before May. These quotations, while lower than former list prices for rugs, were above the figures o f the auction sale. For carpets quotations were the same as in October. It is not known whether in May this company will sell at fixed prices or hold another auction. A s a consequence o f the sale, several of the other large manufacturers have made reductions in their list prices, the cut being about 10 per cent on Axminsters and 7 per cent on velvets and some tapestries. N o reductions have been announced by any makers o f W iltons, and many of the local manufacturers, stating that wages and the cost o f materials are higher now than they were when present lists were issued, have declined to lower quo tations on any o f the other weaves. Some manufac turers are not optimistic regarding business during the next few weeks, although they believe that retailers are, as a rule, facing the active spring selling season with reduced stocks. During March, therefore, produc tion has been curtailed by certain makers, especially by those whose prices remain unchanged, but others are operating their plants on former schedules. Quotations tor carpet wools have been advancing, and carpet and rug manufacturers feel that on the course of wool prices next season’s values will largely depend. Linoleum and felt-base floor coverings continue to be 111 good demand, but as is usual during tbe winter, ship ments by some firms are not as large as production, and therefore small stocks are available for the spring selling season, always one o f the largest of the year. Some " nes> however, are sold up for the season, which ends May 1, and have been withdrawn from the market. 8ales have shown a gain over the corresponding months ot 1923, and production, especially of felt-base goods, fias increased considerably. Prices are unchanged, and ] a\v materials also are steady. Collections in all branches °* the floor-covering industry are in most cases satisfactory. LEATHER Ihe hide market, which up to about the middle of "ebruary had been strong and advancing, suddenly became dull. N o trading in ChiHides and skins cago packer hides was reported during the last two weeks o f Cjruarv, and at the same time the Argentine market Weakened considerably. Then in the first week of R eserve D istrict 25 March the packers began to sell, and though their sales were not large, prices declined 2 j4 cents per pound for several selections, a loss about equal to the entire gain made between the middle o f January and the middle o f February. During the second and third weeks o f March a further decline o f one cent for butt branded steers occurred, and tanners are now bidding low for other selections; but packers have declined to meet these prices, and little business has been done. Packer calf skins, largely because of foreign demand, advanced a further one cent per pound to 22^4 cents after hides became sluggish, but the domestic buyers showed little interest, and tanners asked 23 cents. A fter a short period o f dulness, however, packers sold some small lots for export at 22 cents, and Chicago city skins weakened considerably and were reported sold at a reduction o f two cents. Goat skins o f some de scriptions have been in good request. China skins, many o f which are especially suirable for the manu facture o f colored kid, are said to have been disposed of in large quantities and at advancing prices. Some fair-sized transactions in India skins have also been closed, and skins which are cheap enough to make into lining leather for shoes have also been in demand. But, as a general rule, tanners are chary of buying raw stock for shipment, and the largest sales are of merchandise already arrived in this country. Even as early as the end of January this spot demand for skins was strong, as is indicated by the report o f the Department of Commerce that during January stocks in this country were reduced 10.3 per cent to 8,903,835 skins, the lowest figure given since May, 1923. Stocks of all other raw hides and skins also declined, as fo llo w s : cattle hides, 2.9 per cent; sheep and lamb skins, 14.2 per cent; and calf and kip skins, 12.5 per cent. Stocks o f all these were lower than at any time since statistics were first col lected in 1920. During March the demand for nearly all leathers has slackened, and the improvement o f January and Febru ary has not been maintained. This Leather dulness may, however, be sea sonal, as shoe manufacturers have covered their requirements until Easter and have little business booked beyond that time. The increased call LEATHER January, 1924 compared with December, 1923 Backs, bends and sides.................... Production during month T 6.0% 4 2 9, “ + 3.2“ + 15.1 “ + .7 “ I} — .5- « f i Stocks at end of month 4.0* 0 - 1.8“ .3 “ + 1.6“ + 1.5“ - 2.4“ T 26 B he usiness for leather in January is indicated in the accompanying table made from the report o f the Department of Com merce, which shows that although production of nearly all leather increased during January, stocks at the end o f the month were in most classes lower than at the beginning. In most heavy leathers, too, the tanners, though still carrying the bulk of the finished leather, own a some what lessened proportion o f it than they did in Septem ber, since which time the ratio has slowly decreased. The accompanying table shows this change. PROPORTION OF FINISHED LEATHER HELD BY TANNERS Chrome sole...................................... Oak, union and hemlock sole.......... Belting butts..................................... Offal. 7 ..................................... September 30 1923 January 31 1924 Per cent 79.2 90.7 88.0 69.5 Per cent 65.1 90.7 86.6 66.7 In upper leathers, however, tanners continue to hold a large proportion o f the finished stocks, and this per centage has not decreased. Stocks o f kid have not only increased, but as is in dicated in the accompanying chart, the proportion of it held by tanners has grown steadily during the past year. STOCKS OF GOAT AND KID LEATHERS EZ3 Dealers’ and irof^orters’ Eg|3 Boot and shoe manufacturers’ ESS Tanners’ 1921 1922 1923 eview A pril price have been offered by kid tanners to move accumu lations o f black kid, but in many instances their efforts have failed, as buyers’ prices are set very low. An increased call is noted for colored kid, and white kid, too, is selling well. Grain calf leather has held its advance in price, and in men’s weights light tan and black, and in women’s weights a medium tan and black, are called for ; but the request for suedes is decreasing. In colors, grain calf is wanted, especially for children’s shoes. Patent leather maintains its popularity, and sales, though not as large as they were a month ago, are fair. Harness and saddlery leather is in fair demand, but prices are reported as either weak or lower. Stocks are from moderate to heavy, and orders are for small lots for quick shipment. Leather belting has been selling in considerable vol ume, and sales, as reported to the Leather Belting E x change, are running at an average of about 100,000 pounds weekly. But manufacturers report that buyers are resisting present prices, which, though some in stances o f price cutting are reported, have not changed during the past two months. Manufacturers of leather goods report variously. Some state that business is poor and that at present there is overproduction, others that the demand is fair, and still others that business is good and that they have a considerable number o f orders booked for delivery next autumn as well as a good volume for early shipment. The demand appears to be best for specialties, which probably accounts for the great variations recorded above. Manufacturers of trunks and standard luggage, however, report that sales are keeping up with those o f a year ago, when business was considered to be good. Prices of luggage are on an average slightly lower than they were a year ago, and in a majority of cases plants are running at capacity. Reductions in wages in kid factories, which were noted last month, have become more general, and in a number o f plants in Philadelphia wages have been re duced, the average cut being about 10 per cent. In the Camden and Wilmington tanneries, however, wages are unchanged, as no advances were made in those cities last spring, and thus the reduction in the Philadelphia plants puts wages on the same level in all these places. Although in general collections are said to be good, some tanners report a considerable decline in payments dur ing March. 1924 Total stocks of kid leather a t the end of 1923 were larger than at the end of either 1921 or 1922. Of this increased supply, tanners held a larger proportion and boot and shoe m anufac turers a smaller proportion at the close of 1923 than in either of the previous years. Source— Department o f Corfmerce Quotations for leather have ceased to advance but in most cases are fairly well maintained. Concessions in R Shoe manufacturers in this district have in most cases almost caught up with their orders, and in many factories the cutting rooms have Shoes had to slow down because o f lack o f work. This is, o f course, be tween seasons, but repeat orders for the early spring trade have been disappointingly small, and as yet neither wholesalers nor retailers are disposed to buy, except in a small way to meet their May and June requirements. T T924 hird F e deral Prices are in nearly all cases unchanged. A few rnakers report slight reductions for some lines, and other manufacturers have made a small increase in the quo tations for calf leather shoes; but these changes have had no effect in stimulating business. For women’s shoes, suede leathers, while still ordered, are losing ground ; but patent leather and satin are in request, and grain calf is in increasing call. W hite leather, too, promises to be a leader later in the season. Production o f shoes in the United States in January amounted to 26,397,808 pairs. This total was larger than that o f December, when 22,676,436 pairs were made, but less than the output o f 30,743,740 pairs in January, 1923. In the Third Federal Reserve District U 0 identical factories showed a decrease o f 4.2 per cent m the number o f shoes made in February as compared with those turned out in January. R eserve D i s tri ct 27 RETAIL SHOE TRADE Third Federal Reserve District 1. NET SALES (in terms of dollars): (a) February, 1924, as compared with Jan. 1924 — 14.5% (b) February, 1924, as compared with February, 1923.............................................................. + 15.0% 2. STOCKS (selling price): (a) February, 1924, as compared with Jan. 1924 - f (b) February, 1924, as compared with Feb. 1923 — 3. 2.2% 1.4% RATE OF TURNOVER (times per year based on cumulative period): 3.2 (a) February 1 to February 29, 1924..................... (b) February 1 to February 28, 1923..................... 2.8 Number of stores reporting above items: 1......................... 20 2 ....................... 18 3 ....................... 17 PAPER BOOT AND SHOE INDUSTRY* Third Federal Reserve District Number of pairs Production B o o t s a n d s h o e s , t o t a l ..................................... H i g h a n d lo w c u t ( le a t h e r ) , t o t a l ................ M e n ’ s .......................... B o y s ’ a n d y o u t h s ’ ................................................ W o m e n ’ s .................................................. M i s s e s ’ a n d c h ild r e n ’s ...................................... I n f a n t s ’ ........................................................... -Ml o t h e r le a t h e r o r p a r t -le a t h e r f o o t w e a r *1 . . February 1924 January, 1924 1,720,102 1,607,702 131,927 138,448 261,531 605,565 470,231 1,795,755 1,680,166 126,819 168,442 238,522 636,381 510,002 112,400 115,589 , Preliminary report compiled by the Bureau of the Census. Includes athletic and sporting shoes (leather), shoes with canvas, satin, 1 Tether fabric uppers, slippers for housewear, and all other leather or part‘eather footwear. Skilled labor is reported to be scarce in some locali ses, and a few increases in the wages paid to both skilled and unskilled workers are noted. Collections are in the main fair, but a goodly number o f firms state that they are slower than they were a year ago. At wholesale, sales during February were larger than 111 either January or in February, 1923, as is shown in D e table on page 9. But few orders have been booked *or shipment later than April 15. At retail, sales during February fell off 14.5 per cent r°m those o f January but were 15.0 per cent larger than in February, 1923. Business during March is described as only fair and may not reach the total o f ast year, when the pre-Easter season fell in March. women, pumps of suede in black, airedale, and gray, ° t Patent leather and black satin, all with strap effects, die the best sellers. And for men, oxford s in tan and 111 black are wanted. Stocks show but little change r°m those o f a vear ago. The demand for nearly all grades o f paper has in creased, and the majority o f manufacturers report that business is better than it was either last month or in March, 1923. Book and fine papers are in good request, and operations at the mills have advanced to 85 per cent o f capacity. The call for most grades o f wrapping papers is also strong, and in this district the majority o f mills are working at or near capacity. However, the glassine market is more or less demoralized, owing to severe price cutting among the manufacturers, and seme plants are running at only 50 per cent. Toilet tissues and crepe towels are in active request, and pro duction at these plants is close to capacity. Paperboards, particularly box boards, are selling more freely than they did in the two preceding months, and most mills are operating at 90 per cent. Manufacturers o f cardboards and tag stocks report only a fair demand, and few are working at more than 70 per cent. Makers o f tags state that competition is very severe and that they have sufficient orders to keep only two-thirds of their equipment in operation. W all papers are selling well, and the mills are working at capacity. Envelopes and tablets are in good demand, and most converters are operating at 85 per cent o f capacity. Buyers are still adhering to their hand-to-mouth policy, as is seen in the fact that none o f the mills that report to us have more than 30 days’ business on hand. Jobbers state that sales are larger than they were last month. A s is shown in the table on page 9, wholesale paper sales in February were slightly greater than those of February, 1923. Paper production, except in the book grades, has not yet this year reached the high mark o f last June. The chart on page 28, which is based upon production figures compiled by the American Paper and Pulp Associa tion for an identical number o f mills in each period o f two months, shows clearly that production, expressed T 28 he B usiness R A pril eview year. However, total sales for the issues o f the first four months o f 1924 surpass by a considerable amount those for the corresponding issues o f 1923. Practically all industries are buying space in good quantity. Sub scription sales also have increased over those o f March, 1923. Publishers o f books state that business is ex cellent, and most o f them are working at capacity. Lith ographers find window display advertising in big de mand and that manufacturers o f toilet preparations and foodstuffs are the heaviest buyers. The majority of lithographers are operating at close to capacity. The following chart, based upon reports from 22 printing and publishing firms, shows that employment in these plants in January and February, 1924, was greater than in the same months o f 1923. The number o f employees in January reached the previous high marks o f March, May, and June, 1923. Except at book paper m ills, m onthly production has not reached the total of June, 1923, so far this year. The ou tput of fine and wrapping paper increased in February but that of book and newsprint declined Source: American Paper and Pulp Association. as an index number, except that o f book paper, is smaller than it was in June, 1923. Paper prices are now quite firm and are the same as they were last month. The slight weakness which was apparent in kraft paper prices early in February has now vanished, and the granting o f concessions has virtually ceased. Mechanical and chemical pulps still display some softness, but owing to the increasing de mand, especially for chemical pulps, prices are tending to stiffen. Finished stocks at the mills vary from light to moderate and show little change since last month. Mill stocks o f raw materials are moderate. The supply o f all classes o f labor is adequate and wages are un changed. Collections vary from fair to good and are much the same as they were last month. PRINTING AND PUBLISHING The majority o f job printers report a better demand for printing than in either January or February, and though several state that business is better than in March, 1923, others do not find it as good. Direct-by mail circulars and general job work are in greatest request, but a few firms have considerable catalogue work. The number o f commercial advertising orders that have been received shows a slight increase over that o f the two preceding months, and the radio, steel, metal products, lumber, and leather industries are the principal buyers. A few printers find business very good and are working at capacity, but the average o f operations throughout the district does not exceed 75 per cent. Magazine publishers report that their sales o f advertising space for April and M ay numbers exceed those for the same numbers o f 1923, but sales for the March numbers were not as large as they were last Em ploym ent during the first two m onths of 1924 in printing and publishing plants was greater than in the sam e m onths of 1923. Source— Federal Reserve Bank of Philadelphia Printing and publishing costs have remained sta tionary during the past two months. Paper prices have held firm, as have the costs o f inks and other mate rials. Competition continues to be severe, and job printers must quote their lowest prices to obtain orders. Labor, both skilled and unskilled, is in ample supply, and wages have not changed. Collections are fair, being much the same as they were last month, and slightly slower than those o f a year ago. CIGARS The majority o f cigar manufacturers report that de mand is not quite as good as it was last month or in March, 1923, and is only fair. A s a rule, March is a rather dull month for the industry, and this March is no exception; but all manufacturers expect better .business at the beginning o f spring. Practically all orders are for immediate shipment. Class C cigars are still the best sellers, and the A and B grades are in fair demand, 1924 T hird F ederal Source— Commissioner of Internal Revenue R eserve D istrict but none o f these selling as well as they were last year. Production has declined only slightly, and most factories are running at the same rate as in February. Operations vary from 50 per cent to capacity, but the average for the district is from 75 to 80 per cent. Jobbers report that the demand is better than it was last month and about equal to that o f March, 1923. The accompanying chart shows that the output o f large cigars in February, 1924, decreased 1.6 per cent, but that o f cigarettes increased 5.0 per cent, as compared with the totals for February, 1923. Cigar prices are firm and unchanged, and tobacco leaf prices are well maintained. Finished stocks at the factories vary from moderate to heavy and are increas ing. Supplies o f raw materials are moderate but are decreasing. N o scarcity o f either skilled or unskilled labor is noted, and wages remain unchanged. Collec tions range from fair to good and are the same as they were last month. COM PILED AS OF M AR CH 22, 1924. This business review will be sent regularly without charge to any address upon request 29 T 30 he B usiness R A pril eview SYNOPSIS OF BUSINESS CONDITIONS Compiled as of March 22, 1924 Third Federal Reserve District Labor Business Brick Chemicals Cigars Coal, anthracite Coal, bituminous | Coke Confectionery Cotton goods Drugs, wholesale Drygoods, wholesale Floor coverings Demand Prices Stocks Supply Wages Collections Fair to good Firm Moderate Sufficient Poor to fair Fair Fair to good Poor to fair Fair Fair to good Poor to fair Fair Fair Weak Firm Firm Weak Lower Firm Lower Declining Firm to lower Unchanged to lower Moderate Moderate Moderate Heavy Sufficient Sufficient Sufficient Sufficient Some reductions Unchanged Unchanged Unchanged LTnchanged Moderate Moderate Moderate Moderate Sufficient Sufficient Unchanged Unchanged Fair Fair Fair Fair Moderate Sufficient Unchanged Fair to good Firm Moderate Some scarcity Some advances Poor to fair Sufficient Unchanged Fair to good Fair to good Gas and electric fix Fair tures Glass Poor to fair Firm Groceries, wholesale Hardware, wholesale Hosiery, fullfashioned Hosiery, seamless Fair Fair Poor to fair Firm Some advances Unchanged to lower Lower Fair Moderate to light Moderate Moderate Fair Fair Fair to good to to to to good good good good Fair to good Poor to fair Moderate Sufficient Moderate Moderate to heavy Moderate Moderate Heavy Moderate to heavy Moderate Heavy Moderate Moderate Moderate Moderate Sufficient Unchanged -to lower Unchanged Sufficient Unchanged Sufficient Sufficient Sufficient Sufficient Sufficient Sufficient Sufficient Unchanged Unchanged Unchanged to lower Unchanged Unchanged Unchanged Unchanged Unchanged Sufficient Unchanged Fair to good Fair to good Fair to good Fair Iron and steel Fair Some weakness Jewelry Leather belting Leather, heavy Fair Fair Poor to fair Unchanged Unchanged Unchanged Leather, upper Poor to fair Unchanged Lumber Oils, crude Oils, refined Paint Paper Paper, wholesale Printing and publish ing Fair to good Good Fair to good Fair Good Good Some advances Higher Higher Unchanged Firm Firm Fair to good Unchanged Pottery Good Firm Moderate Sufficient Some reductions Fair to good Shoes, manufacture Poor to fair Unchanged Moderate Some scarcity, skilled Some advances Fair to good Shoes, retail Shoes, wholesale Silk goods Silk, thrown Sugar Underwear, heavy weight Underwear, light weight Woolen and worsted goods Woolen and worsted yarns Fair to good Fair Poor to fair Poor f\air Unchanged Unchanged Lower Weak Declining Moderate Moderate Fairly heavy Light Moderate Sufficient Some scarcity Sufficient Unchanged Unchanged Unchanged Fair to good Fair Fair Fair to good Good Poor Unchanged Fairly light Sufficient Unchanged Fair Poor to fair Unchanged to lower Generally unchanged Generally unchanged Fairly light Sufficient Unchanged Fair Moderate Sufficient or plentiful Sufficient or plentiful Unchanged Fair to good L'nchanged Fair to good Irregular Poor to fair Moderate Sufficient Fair Fair to good Fair to good Fair to good Fair Good Good Fair Fair to good Fair T924 T hird F ederal R eserve D istrict 3i .12 T he B usiness R eview A pril ADVANTAGES OF MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM PURPOSE OF THE FEDERAL RESERVE ACT The purpose o f the A ct zvas to remedy well-defined defects in our banking and currency systems and thereby put a stop to the panics that regularly appeared when ever those systems zvere put tinder an unusual strain. Business men were especially active in demanding re form. The Chamber o f Commerce o f the United States in a memorial to Congress, declared: “ The defects of our present system are generally understood to consti tute a menace, both to our domestic and international trade. The business men o f the country should not again be exposed to the rigors of another such (cu r rency) stringency as followed the large crop of 1912.” The recognized defects w ere: (1 ) an inelastic cur rency, (2 ) scattered reserves, (3 ) lack of a bank of rediscount. The Federal Reserve A ct was adopted to correct these weaknesses and it has corrected them. The Act was not made up o f a conglomerate o f undigested theories but is “ the product of a lengthy course o f development that has grown out of the discussion and analysis o f the past twenty years. It is not drawn, even largely, from any single source.” * The new banking system was put into effect by the opening o f the twelve Federal reserve banks in Novem ber, 1914. The effectiveness of the system was immediately put to the test by the disturbances caused by the war and the following period o f readjustment. The banks func tioned successfully and our monetary and banking struc ture held firm and secure during the greatest strain we had ever experienced. The principal faults in the old system that inevitably brought panics and destruction under strain had been corrected. The new currency showed an elasticity that provided for all legitimate de mands and was always on a par with gold. The pooling o f the reserves of the member banks in the twelve great reservoirs enabled them to be applied effectively wher ever the need was greatest; and the reserve banks re discounted paper for the members in a volume that far exceeded any previous estimate o f the possibilities. MEMBERSHIP IN THE SYSTEM Under the Federal Reserve Act, only national banks are required to be members o f the Federal reserve system. Provision is made, however, for the admission o f state banks and trust companies. On June 30, 1923, the membership o f the Federal reserve system included 8236 national banks and 1620 state banks and trust companies. The total resources o f the national banks were $21,502,202,000, and the re sources o f the state bank members aggregated $12,293,124,000. The resources of member banks constituted about 63 per cent o f the total resources o f all banks in * Statement of Dr. H. Parker W illis. the country and over 70 per cent of those of the banks eligible to membership. ADVANTAGES OF MEMBERSHIP Membership in the Federal reserve system gives many privileges and advantages of great value to the banks and to the communities which they serve. Notable among the privileges of membership at this time are the follow ing: (1) To borrozu money front the Federal reserve bank at its prevailing rates. Member banks may redis count with the Federal reserve bank, notes, drafts or bills of exchange, the proceeds of which have been used or are to be used in producing, purchasing, carrying or marketing goods, wares, merchandise, or agricultural products, including live stock, or for carrying or trading in United States bonds or notes. Such paper must have a maturity at the time o f discount o f not more than ninety days, except that (a ) paper drawn for an agri cultural purpose or based on- live stock may have a maturity o f not exceeding nine months, and (b ) sight or demand drafts drawn to finance domestic shipments o f non-perishable, readily marketable, staple agricul tural products and secured by bills of lading or other shipping documents conveying or securing title, are also eligible for rediscount. Member banks may also borrow from the Federal reserve bank on tbeir own promissory notes for periods not exceeding fifteen days, provided the notes are se cured by United States bonds or notes, or by paper eligible for discount or purchase by the Federal reserve bank. (2 ) To obtain currency and coin, as needed, from the Federal reserve bank. The Federal reserve bank pays the postage and insurance or expressage on ship ments o f paper currency, subsidiary silver and minor coin to its member banks and on shipments o f paper currency and all coin from the member banks to it. (3 ) To participate in the check clearing facilities o f the Federal reserve system. The Federal reserve bankhandles for its members, at par, checks on the banks ap pearing on the par list and checks and warrants on the United States Treasurer, giving credit according to its time schedule. The par list comprises all member banks and all non member banks upon whom checks can be collected at par. On August 31, 1923, over 91 per cent of the banks in the United States were on the par list. The banks not now on the par list will gradually see that the sup port of a system for the prompt collection o f checks is to their advantage and protection, and will support it as heartily as those who now see its advantages. Expense, delay and risk are minimized bv this plan. Checks passing through the Federal reserve svstem are routed direct wherever possible, saving valuable time in the process of collection. {T o be continued)