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THE BUSINESS REVIEW
THIRD FEDERAL
PHILADELPHIA

RESERVE DISTRICT
DECEMBER i, 192.7

By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent
FEDERAL RESERVE BANK of PHILADELPHIA

B U S IN E S S C O N D IT IO N S IN T H E U N IT E D S T A T E S
Industry and trade were less active in
October than in the preceding month
and were in smaller volume than a year
ago. The general level of wholesale com­
modity prices showed a further slight
advance.
Production. Production of manu­
factures declined in October, contrary to
the usual seasonal tendency, while the
output of minerals remained in practi­
cally the same volume as in September.
In October and November, activity of
iron and steel mills and of automobile
plants was smaller than at the previous
period of the year. There were also de­
creases during October in cotton con­
sumption and in the production of building
materials, crude petroleum, and boots and
shoes. The output of bituminous coal
and the number of hogs and cattle
slaughtered increased by less than the
usual seasonal amount.
Production of
flour, copper, and anthracite coal showed
increases in October.
Building contracts awarded increased
considerably owing to unusually large
awards in New York and Chicago in the
last week of the month. The increases
were largest in contracts for residential
and commercial buildings.
Unusually favorable weather during
October in agricultural states resulted in
increased yield for late fall crops. The

indicated production of corn, according
to the November crop report of the De­
partment of Agriculture, was placed at
2,753,000,000 bushels, an increase of 150,000,000 bushels over the estimate of the
previous month and 106,000,000 bushels
over the yield a year ago. Larger yields,
as compared with the previous month’s
estimates, were also indicated for cotton,
tobacco, and potatoes.
Trade. Trade at wholesale and retail
showed less than the usual seasonal in­
crease in October.
Compared with
October a year ago, wholesale trade in
all leading lines, except meats and drugs,
was smaller. Department store sales were
approximately 3 per cent smaller than
in October, 1926, while those of mail
order houses and chain stores were
somewhat larger.
Inventories of mer­
chandise carried by wholesale firms were
smaller in all reporting lines at the end
of the month than in September. Com­
pared with a year ago, stocks were
smaller in all lines except drugs. Stocks
of department stores increased in October
in anticipation of the growth in sales that
usually occurs in November and Decem­
ber, but at the end of the month they were
no larger than a year ago.
Freight car lo'adings declined in
October and the first part of November,
and were smaller than in the correspond­

W HOLESALE

ing period of last year for all classes of
freight except grain and grain-products.
Prices. Wholesale commodity prices
increased slightly in October, continuing
the advance which began early in the
summer, and the Bureau of Labor
Statistics Index for October was higher
than for any month of this year. The
advance in the average for all com­
modities from September to October re­
flected increases in the prices of livestock,
meats, and dairy products.
Prices of
corn, cotton, coal, metals, paint materials
and automobile tires, on the other hand,
declined. During the first three weeks in
November there were increases in the
prices of grains, cattle, copper, hides, and
rubber, and decreases in hogs, cotton,
silk, coal, petroleum and iron and steel.
Bank credit. Total loans and invest­
ments of member banks in leading cities
increased by nearly $300,000,000 during
the latter part of October and the first
half of November, and on November 16
were the highest ever reported. Invest­
ments increased by more than $200,000,000, reflecting in large part purchases of
Treasury certificates issued on November
15, and loans on securities increased by
about $125,000,000.
Loans chiefly for
commercial and agricultural purposes de­
clined during the period from the seasonal
peak reached early in October.

PRICES

PER CENT

PER CENT

150

13U

100

50

50

0
Index numbers of production of manufactures
and minerals, adjusted for seasonal variations
(1923-25 average=100).
Latest figures, Oc­
tober; m anufactures, 102, minerals, 105.




1923

1924

1925

1926

1927

Index of United States Bureau of Labor
Statistics (1926=100, base adopted by Bureau).
Latest figure, October, 97.0.

M onthly averages of weekly figures for banks
in 101 leading cities. Latest figures are aver­
ages for first three weekly report dates in
November.

Page One

RESERVE BANK CREDIT
4S OF POL _ARS

Latest figure
compared with

_______B HU >N$ QF.D Q-

BUSINESS INDICATORS
Philadelphia Federal Reserve District
CREDIT-*i

T o t a l re ERVE BAN*

L

C

/

Ly

Previous
month

\ J

D isc oi NTS FOR
MEMBE
BANKS
\ U .S .S ec JRITIES
u/
y v
V
✓

\

/

1924

|

A cceptances

1925

1926

1927

M onthly averages of daily figures for 12 Federal
Reserve Banks. Latest figures are averages of
first 23 days in November.

There was a continued increase in the
demand for reserve bank credit between
October 19 and November 23, arising
chiefly out of further exports of gold.
Discounts for member banks declined
somewhat, while acceptances and holdings
of United States Government securities
increased.
Conditions in the money market re­
mained moderately easy in November.
Call loan rates remained at the level
reached in the latter part of October,
and rates on prime commercial paper and
bankers’ acceptances were unchanged.
B U SIN E SS C O N D IT IO N S IN T H E
P H IL A D E L P H IA F E D E R A L
R E S E R V E D IS T R IC T
The condition of trade and industry in
the Philadelphia Federal reserve district
has shown some improvement in the last
month, although the gain has been smaller
than usual at this season. In several
lines of business the volume of trans­
actions has been lower than the record
volume in the same period last year.
The distribution of goods, while stim­
ulated recently by the approach of Christ­
mas, has not measured up to the volume
customary at this time. Sales by whole­
sale dealers increased appreciably in
October, but the dollar volume was 6
per cent smaller than in October, 1926, a
fact which may be ascribed in part to
lower prices.
Similarly, retail sales,
though increasing from September to O c­
tober, were 9 per cent smaller than a
year earlier. Preliminary reports from
retailers show that holiday buying in the
early part of November was in good
volume.
Freight car loadings in the Allegheny
district during the four weeks ended
November 5 were 12 per cent smaller
than a year earlier and since the first
of the year the decline has amounted to
2.2 per cent. Nevertheless, check pay­
ments, as reported by banks in seventeen
cities of the district during the four weeks
ended November 23 were 7.3 per cent
greater than in the same period of 1926.
Wholesale commodity prices have con­
tinued the upward trend begun last sum­
mer and in October were 3 per cent
lower than a year before.

Page Two




October, 1927
Year
ago

Retail trade— estimated net sales (134 stores).....................
Department stores (6 2 )..........................................................
Apparel stores (3 1 ).................................................................
Shoe stores (2 5 )........................................................................
Credit stores (1 6 )....................................................................

$25,308,000
$21,464,000
$2,343,000
$670,000
$831,000

+ 3 4 .0 %
+ 3 3 .9 “
+ 4 8 .0 “
+ 19.0 “
+ 2 7 .2 “

- 9 .1 %
- 8 .3 “
-1 3 .4 “
- 7 .5 “
-1 8 .8 “

Wholesale trade— net sales (136 firm s)..................................
Boots and shoes (8 ).................................................................
Drugs (1 4 ).................................................................................
D ry goods (1 6 ).........................................................................
Electrical supplies (5 ).............................................................
Groceries (4 6 )...........................................................................
Hardware (2 6 )..........................................................................
Jewelry (1 1 )..............................................................................
Paper (1 0)..................................................................................

$10,363,248
$287,400
$1,646,456
$1,000,292
$634,248
$3,491,951
$2,019,968
$565,836
$717,097

+ 5 .5
-1 2 .6
+ 1.6
+ 0 .5
+ 7 .8
+ 6 .3
+ 7 .0
+ 2 1 .0
+ 1 0 .8

“
“
“
“
“
“
“
“
“

- 6 .0
-2 4 .7
- 0 .5
-1 6 .3
+ 1 .8
- 3 .5
- 7 .6
- 4 .1
- 7 .2

273,306
$6,994,131
prs.
1,493,466
doz. prs. 1,356,362
lbs.
8,022,519
86,421,468
tons
270,927
tons
4,415
tons
3,519
tons
7,404,000
tons
13,291,000
bbls.
3,799,000
K W H 426,222,000

- 0 .2
+ 2 .2
+ 0 .3
+ 5 .8
+ 3 .6
+ 4 .3
+ 3 .9
+ 5 .3
-3 1 .5
+ 1 1 .5
+ 2 7 .1
- 6 .4
+ 8 .4

“
“
“
“
“
“
“
“
“
“
“
“
“

-1 0 .7 “
-1 3 .3 “

215,446
3,605,725

-1 .0 “
+ 4 .7 “

-1 0 .4 “
-1 0 .3 “

$2,600,106,000
$647,578,000

+ 5 .7 “
- 0 .2 “

+ 0 .3 “
+ 7 .5 “

+

+ 4 .9 “

Productive activity:
Employment— 825 plants in P enn a....................................
Wage payments in above plants..........................................

A ctive cotton spindle hours (Penna. and N. J .) ..............
Pig iron production.................................................................
Iron casting production (30 foundries)..............................
Steel casting production (11 foundries).............................
Anthracite.................................................................................
Bituminous coal— P enn a.......................................................
C em ent.......................................................................................
Electric power output (11 system s)....................................
Distribution:
Freight car loadings (Allegheny district— weekly average)
Tonnage of vessels (Port of Philadelphia).........................
Financial and credit:
Debits (17 cities).....................................................................
Savings deposits (96 banks)..................................................
Loans, discounts and investments . of member banks
(weekly average)..................................................................
Bills discounted held by F. K. B. of Phila. (dady
average).................................................................................
Acceptances executed (9 banks for month ended Nov. 10)
Commercial paper sales (5 dealers)....................................
Commercial failures— number..............................................
Commercial failures— liabilities...........................................
Building and real estate:
Building permits (16 cities)...................................................
Building contracts awarded (Philadelphia district)........
Number of real estate deeds recorded (Philadelphia
co u n ty )...................................................................................
Value of mortgages recorded (Philadelphia county) . . . .
Miscellaneous:
Sales of life insurance (Penna., N. J., and D e l.).............
Retail sales of automobiles (12 distributors)....................
Wholesale sales of automobiles (13 distributors).............

tons

$1,226,700,000

1 .3 “
“
“
“
“
“

- 4 .9
-1 7 .8
-2 1 .5
—55.9
-1 4 .1
- 5 .6
- 4 .7
+ 2 .4

-2 1 .8
+ 2 9 .8
+ 7 0 .0
- 8 .9
-6 2 .5

“
“
“
“
“
“
“
“
“

“
“
*
“
“
“
“
“

“
“
“
“
“

$39,031,000
$5,111,000
$8,667,500
51
$952,548

+ 0 .3
+ 11.6
-1 8 .1
-3 0 .1
-2 6 .5

$12,205,702
$32,910,732

-2 5 .8 “
-2 3 .9 “

-2 2 .3 “
+ 14.1 “

5,671
$29,069,385

+ 2 0 .5 “
+ 2 6 .4 “

+ 4 .5 “
+ 18.8 “

$79,871,000
$4,222,000
$3,601,000

+ 8 .5 “
+ 8 0 .3 “
-1 3 .7 “

+ 2 .5 “
+ 9 8 .6 “
-1 1 .6 “

* Bureau of Census preliminary figures.

Manufacturing activity continues lower
than a year ago, and recovery from sum­
mer slackness has been less than usual.
Employment in Pennsylvania decreased
slightly from September, but factory
wage payments showed a gain of 2.2
per cent, indicating a somewhat higher
rate of operations. Last year the gain
in payrolls in this month was 5.3 per
cent. Consumption of electric power by
industries in the Philadelphia district de­
clined in October as compared with Sep­
tember and a year ago.
The textile industries, particularly wool,
cotton, knit goods and hosiery, carpets
and rugs, continue active, the rate of oper­
ation during October showing a marked
gain over the September level. W ool
consumption by mills in the district in­
creased almost 4 per cent, and produc­
tion of hosiery was nearly 6 per cent
greater than in September.
The silk
industry, on the other hand, has shown
no pronounced improvement in the month.
Demand for shoes is fair, although sales

do not equal the volume of a year a g o :
but the output in the district increased
slightly between September and October.
The leather market generally is strong
with prices advancing a little. The de­
mand for packer hides, goatskins, black
kid and sole leather is active.
While some seasonal betterment has oc­
curred in the market, conditions in the
iron and steel industry as a whole are
still unsatisfactory. Prices of pig iron
and finished steel are considerably under
the level of a year ago. The output and
shipments of castings during October
decreased appreciably from the volume in
the same month last year.
Building operations have slackened
somewhat in the month. The value of
contracts for new construction declined in
October but was substantially over that
of a year before. The contemplated cost
of building under permits in the leading
cities of the district was about 75 per
cent of the total in October, 1926. Re­
flecting this condition, the market for

building materials has been hardly fair,
and prices have declined slightly. Activ­
ity in real estate is still sluggish and the
volume of financing for new commercial
and residential construction has lagged
appreciably behind the total of a year
earlier. Rents have declined somewhat
during the past three months.
The market for anthracite is only fair
despite the fact that this is usually the
active season. The demand for bituminous
coal is rather quiet and prices continue
to decline. The weekly output of both
hard and soft coal has been running in
smaller volume than in the correspond­
ing period last year.
Loans and discounts of member banks
in the leading cities of the district de­
clined in the five weeks ended Novem­
ber 16, while investments and total
deposits increased. Sales of commercial
paper were smaller in October than in
September but were substantially larger
than those of a year before.
C O M M O D IT Y P RICES
The general level of wholesale com­
modity prices continues steady. Fisher’s
price index showed little change during
the first three weeks of November. Prices
of all commodities in October, as shown
by the revised index of the Bureau of
Labor Statistics, continued the upward
trend started in July of this year.
Of the 550 commodities included in this
index, increases were shown in 165 in­
stances and decreases in 139 instances,
while in 246 cases no change in price
was reported.
Retail food quotations rose 1.4 per cent
from September to October but were 2.4
lower than in the corresponding month
last year.
F IN A N C IA L C O N D IT IO N S
Federal reserve bank. In the four
weeks ended November 23 withdrawals
of Government funds from depositary
banks were heavy, but government dis­
bursements in the cash redemption of the
Second Liberty loan bonds also were
large. Payments of currency and coin
to banks of the district exceeded receipts
from them but in the transit clearings
with other districts (after adjustment of
these figures for operations of the Federal
reserve bank) a gain accrued to banks
in this district. Borrowings of member
banks declined from 40.3 to 34.4 millions
and their reserve deposits fell from 139.9
to 137.1 millions. The combined note
and deposit liabilities increased in the
month, and there was a falling off in re­
serve cash from 203.5 to 189.4 millions
which resulted in a decline in the reserve
ratio from 75.1 to 68.6 per cent. Holdings
of purchased paper increased from 15.5
to 32.3 millions in the four weeks and
Government securities from 39.7 to 47.5
millions, although in the latter figure is
included a one-day certificate of indebted-




October, 1927, compared with October, 1926
CITY
CONDITIONS
Philadelphia Federal
Reserve District

Allentown

a re a ...

Harrisburg
Johnstown
Lancaster
Philadelphia
Reading
Scranton
Trenton
Wilkes-Barre
Williamsport
Wilmington
York

.,
.,
“ ..

“
“
“
“
“

..

“
“

..
..

..

u

E m ploy­
ment

-

4 .6 %

- 0 .1
- 0 .2
- 5 .4
-1 0 .0
- 6 .8
-1 2 .6
-2 1 .4
- 9 .7
- 5 .9
-1 3 .2
- 0 .7

“
“
“
“
“
“
“
“
“
“
“

Wage
payments

-

3 .0 %

+ 2 .0
-1 8 .6
- 5 .3
-1 1 .0
- 8 .0
- 9 .2
-2 6 .7
-1 1 .6
+ 8 .9
-1 0 .6
-1 0 .5

“
“
“
“
“
“
“
“
“
“
“

Value of
building
permits

Debits

- 7 8.9 %
+ 12.4 “
- 27.0 “
- 53.7 “
+ 2 4 3 .8 “
6.0 “
+ 14.7 “
- 27.4 “
+ 12.1 “
+
5 .6 “
- 25.9 “
+ 1 1 4 .7 “
- 87.6 “

+ 3 .5 %
+ 4 .6 “
-1 6 .0 “
- 9 .2 “
+ 7 .4 “
+ 0 .3 “
- 1.0 “
- 7.1 “
+ 3 .2 “
- 4 .3 “
+ 1 6 .4 “
+ 3 7 .7 “
- 1.6 “

Electric
power
sales

Savings
deposits

Retail
trade sales

+ 3 .4 %
+ 7 .9 “
+ 1 7 .6 “
+ 4 .5 “

- 2 .3 %
- 4 .3 “
- 9 .4 “
-1 4 .3 “
- 7 .0 “
- 9.1 “
- 9 .4 “
-1 7 .7 “
- 7 .2 “
-1 1 .9 “
-1 0 .9 “
-1 4 .0 “
- 6 .4 “

- 8 .2 4
+ 1 3 .0 “

+ 2 7 .8 %
+ 2 5 .3 “
+ 2 2 .8 “
+ 2 8 .6 “
+ 4 2 .0 “
+ 3 1 .9 “
+ 3 2 .9 “
+ 15.7 “
+ 3 5 .6 “
+ 3 0 .7 “
+ 3 .0 “
+ 7.1 “
+ 3 7 .2 “

+ 9 .3 % *
+ 4 .9 “
-1 .5 “
+ 5 .9 “ t
+ 0 .5 “
+ 1.7 “
+ 0 .6 “
-0 .5 “
+ 1 .9 “ t
§
§
+ 7 .6 “
+ 6 .9 “

+
+
+
+
+

9 .6
5 .0
5 .4
3 .6
6 .5

“
“
“
“
“

+ 5 .4 “
+ 6 .9 “

+ 2 .2 % *
-2 0 .7 “
+ 6 .9 “
- 4 .9 “ j
+ 13.7 “
+ 1 .6 “
- 3.1 “
+ 7 .4 “

1

§
§

October, 1927. compared with September, 1927
a re a ...
Allentown
u ..
Altoona
u ..
Harrisburg
“ .,
Johnstown
“ .,
Lancaster
“ .,
Philadelphia
u
.,
Reading
“ .,
Scranton
“ .,
Trenton
Wilkes-Barre “ ..
Williamsport “ ..
Wilmington
“ ...
York

- 0 .4 %
-1 .7 *
+ 0 .3 “
-1 .6 “
+ 1 .1 “
-0 .4 “
+ 3 .4 “
+ 5 .7 “
+ 1.8 “
-0 .8 “
-5 .8 “
+ 0 .2 “
+ 0 .4 “

+ 4 .2 %
- 0 .7 “
- 1.2 “
- 6 .6 “
+ 4 .6 “
+ 1.3 “
+ 1 5 .4 “
+ 8 .0 “
+ 6 .6 “
+ 3 .3 “
- 4 .0 “
+ 0 .4 “
- 6 .3 “

- 6 .8 %
+ 6 1 .7 “
-3 3 .3 “
+ 17.2 “
- 1 .9 “
-3 3 .6 “
-3 3 .4 “
-2 4 .9 “
+ 3 7 .6 “
+ 5 2 .4 “
- 0 .9 “
+ 4 4 .1 “
-9 5 .8 “

* Includes Wilkes-Barre and Williamsport areas,
§ Included in Allentown area.

PRICES OF COMMODITIES

Latest

+ 1 2 .9 %
- 5 .0 “
+ 9 .9 “
-3 2 .9 “
+ 11.8 “
+ 5 .8 “
+ 11.5 “
- 6 .0 “
+ 6 .3 “
- 4 .9 “
+ 12.1 “
+ 2 9 .3 “
+ 8 .4 “

+ 0 .6 %
+ 0 .4 “
-0 .2 “
+ 1 .6 “
+ 0 .2
-1 .9
- 1 .8
-1 .0
+ 0 .2

“
“
“
“
“

+ 0 .3 “
+ 1.1 “

t Production (not sales).

Month
ago

Year
ago

Wholesale
All commodities, index number, 1926 =100
9 7.0
9 6.5
99.4
Finished steel, average................ .............lb.
2.307?!
2.293?!
2.453?!
Pig iron, average......................... ...........ton
$17.63
$17.84
$20.13
Pig iron, #2 X Phila................... ........... “
$19.76
$19.76
$23.26
Copper, electrolytic..................... .............lb.
13.75 ^
13.25?!
13.75?!
L ead................................................. .............“
6.25?!
6.25?!
8.0?!
.. “
Cotton, N. Y . middling s p o t. . .
19.90^
20.00?!
13.05?!
Y arn s.................................... Index number
38.41
36.93
28.99
G oods....................................
“
“
13.785
14.067
11.806
W ool, domestic, ra w .................... .............lb.
68.12?!
67.13?!
67.40?!
Foreign, Australian, 64’s ........ .............“
99 i
99?!
98.5?!
Tops, av.
blood at Boston. .............“
$1.095
$1.095
$1.11
W orsted Y a rn s................... Index number
167.90
167.90
174.15
Silk, raw (av. of 6 grades). . . .
“
“
47.98
49.23
56.81
G oods....................................
“
“
119.92
120.28
131.40
R a y o n .......................................
“
“
15.00
15.00
16.50
“
Construction costs (1913=100)
201.98
204.40
210.80
Lumber, yellow pine................... . .1000 ft. $63.00
$63.00
$62.00
Oak, plain..................................
“
“ $115.00
$115.00
$119.00
Cement, Phila., carloads........... ...........bbl.
$2.21
$2.21
Bricks, com m on........................... . ‘ . .1000
$13.50
$14.50
$15.00
Fuels: bituminous coal, Pool 10 Phila. .ton
$1.78
$1.80
$3.00
Anthracite, Chestnut, N. Y . P h ila ... “
$8.80
$8.80
$9.08
Coke, furnace............................
$2.75
$2.85
$4.25
Petroleum, Pa. crude.............. ...........bbl.
$2.65
$2.65
$3.15
Gasoline, tankwagon, Phila . . ........... gal.
14?!
15?!
19?!
Hides, packer, #1, native........... .............lb.
24.5?!
23.5?!
15.0?!
Rubber, 1st latex crepe............... .............“
39.13?!
34.75?!
39.0?!
Paper, news roll......................... . . 100 lbs.
$3.25
$3.25
$3.25
Tobacco, medium......................... .-.......... lb.
12 ?!
12?!
15?!
Corn #2 yellow ...............................
$1.054
$1,024
87.25?!
Wheat, #2 red................................
$1,531
$1,421
$1.528
Flour, Minn, patent.................... ........ bbl.
$7.80
$7.80
$7.45
Food Products..............................
$3.38
$3.39
$3.50
Retail
Food, index number, 1913=100..
Cost of living (1913 =100)
Philadelphia..............................
United States............................
Cost of Living in U. S. (July 1914 = 100)___
* June figures,

t December, 1926, figures,

i

Includes Camden area.

Source of quotation

B. of L. Statistics
Iron Age
Iron Age
Iron Age
D un’s Review
Dun’s Review
Journal of Commerce
Fairchild’s
Fairchild’s
D un’s Review
Textile W orld
Textile W orld
Fairchild’s
Fairchild’s
Fairchild’s
Fairchild’s
Eng. News Record
Dun’s Review
D un’s Review
Dun’s Review
D un’s Review
Coal Age
Coal Age
D un’s Review
Oil, Paint & Drug Rep.
Oil, Paint & Drug Rep.
Dun’s Review
D un’s Review
Dun’s Review
D un’s Review
D un’s Review
Dun’s Review
Journal of Commerce
Bradstreet’s Food Index

156.1

154.0

160

B. of L. Statistics

178.0*
173.4*
162{

182 .3 f
175.6 f
162§

180.6
174.8
165

B. of L. Statistics
B. of L. Statistics
N at’l Ind’l Conf. B ’d.

t August figures.

§ July figures.

Page Three

ness of the Government amounting to 4
millions.
Compared with a year ago, holdings of
bills discounted have declined 11.8 mil­
lions, purchased bills have increased 3.4
millions and Government securities have
advanced 27.6 millions. Reserve cash has
declined from 192.8 to 189.4 millions and
the reserve ratio from 72.9 to 68.6 per
cent.
Member banks. Reports of 122 mem­
ber banks in 21 of the largest cities of
the Philadelphia Federal reserve district
show that loans and discounts declined
from 1,031 to 1,018 millions in the five
weeks ended November 16.
Invest­
ments increased from 527 to 532 mil­
lions, net demand deposits from 911 to
913 millions, and time deposits from 443
millions to 464 millions. Figures reported
by Philadelphia banks account for the
greater part of these changes. The loans
of thirty-five banks in that city decreased
10 millions, of which 7 millions was in
the “ all other” classification, which is
largely made up of commercial loans;
their investments increased 5 millions, net
demand deposits 4 millions, and time de­
posits 21 millions. They also report an
increase of 9 millions in amounts due to
banks and of 20 millions in amounts due
from banks.
Compared with a year ago, the loans
of 122 banks on November 16 were 20
millions lower.
In Philadelphia a de­
cline of 29 millions took place, owing to
a falling off of 22 millions in loans on
securities and of 7 millions in commer­
cial loans. Outside of the city 87 banks
reported an increase of 9 millions in total
loans, which seems, according to the re­
ports of 59 banks, to have been due to an
increase in loans on securities. Invest­
ments increased largely in this city and
to a lesser extent outside. Net demand
deposits show a small increase, but in
time deposits a gain of 28 millions was
recorded in Philadelphia and 23 mil­
lions in other cities of the district. This
is the third consecutive month in which
commercial loans have shown a falling
off as compared with a year ago, a tend­
ency which finds explanation in lower
trade and productive activity.

(Figures in thousands of
dollars)

Loans on
securities

Other
T otal
loans
loans
and
and
discounts discounts

Invest­
ments

Net
demand
deposits

Time
deposits

Changes in five weeks ended N ov. 16:
Philadelphia (35 ban k s).......................... Outside (87 ban ks)................................... -

2,496
1,925*

-7 ,2 5 9 -1 ,4 6 9 * -

9,755
3,253

+ 5,481
448

+ 3 ,7 1 9
- 1 ,8 9 0

+ 2 0 ,9 8 8
29

Total (122) banks................................. -

4 ,4 2 1 f

- 8 , 728| -1 3 ,0 0 8

+ 5,033

+ 1 ,8 2 9

+ 2 0 ,9 5 9

Changes in year ended November 16:
Philadelphia (35 ban k s).......................... -2 2 ,2 3 1
Outside (87 ban ks)................................... + 9,075J

- 6 ,7 9 8 -2 9 ,0 2 9
-1 .0 5 8 J + 9,320

+ 5 9 ,5 9 3
+ 1 5 ,0 5 2

+ 4 ,3 8 4
+
885

+ 2 8 ,2 5 7
+ 2 2 ,9 0 9

Total (122 ban ks)................................. —1 3 ,156§

—7,856§ -1 9 ,7 0 9

+ 7 4 ,6 4 5

+ 5 ,2 6 9

+ 5 1 ,1 6 6

* 70 banks,

f 105 banks.

J 59 banks.

§ 94 banks.

Commercial paper. Sales of commer­
cial paper, as reported by five dealers
operating in this district, declined from
$10,582,700 in September to $8,667,500 in
October, but materially exceeded the total
of a year before. Sales in October, 1927,
were evenly distributed between city
banks and outside banks. Figures show­
ing this distribution fo llo w :*
4

Sales to
city
banks
1927
O ct......... $4,330,000
Sept. .. . 5,970,200
Aug. . . . 1,900,000
July. . . . 3,099,500
1926
O ct.........

3,280,500

Sales to
country
banks

ended November 5 were 3.2 per cent
smaller than in the similar period of last
year. Similarly, total freight car loadings
in the same period decreased 2.2 per
cent.

T otal sales

$4,337,500 $ 8,6 6 7,50 0
4,612,500 10,582,700
8,268,500
6,368,500
7,317,500 10,417,000
1,819,100

5,099,600

Detailed figures showing amounts dis­
posed of at various rates, as furnished
by three dealers, show that in October,
1927, 5 per cent of their total sales were
made at 3Y\ per cent, 44 per cent at
4 per cent, 48 per cent at 4% per cent,
and 3 per cent at 4^2 per cent. In Sep­
tember 68 per cent of the sales were at
3 Y or 4 per cent, but in October, 1926,
no sales were reported at less than 4y2
per cent.
D IS T R IB U T IO N
Railroad shipments of merchandise and
miscellaneous commodities in the Alle­
gheny district during the four weeks

Retail trade. Preliminary reports in­
dicate that holiday business is moving ac­
tively, and returns showing increases out­
number those showing decreases in sales.
No material change is noted in retail
prices.
October retail sales, while increasing
seasonally, were about 9 per cent smaller
than those in the same month last year.
Cumulative sales for the period of Janu­
ary 1 to October 31 also were nearly 4
per cent below those for the corresponding
period of last year. Practically all re­
porting lines showed declines from the
volume of a year earlier. Inventories at
the end of the month, while seasonally

Acceptances executed in month ending on the 10th of
each month Indicated

Page Four




larger than i#i the previous month, were
over 2 per cent smaller than a year be­
fore. Collections during October were
3.4 per cen t, greater than in the same
month last year.
Wholesale trade. Business at whole­
sale continues fairly active, further in­
creases in sales being indicated by early
reports from dealers in drugs, electrical
supplies, groceries, jewelry and paper.
Prices in the main remain unchanged.
Sales in October were 5.5 per cent
greater than in September, but were 6
per cent below the total of a year earlier.
All lines, except shoes, shared in the sea­
sonal gain between September and O c­
tober ; compared with a year before, how­
ever, only the sale of electrical supplies
was larger. Stocks generally were lighter
at the end of the month than those on
the corresponding date last year. Re­
ceivables increased in the month but
were somewhat smaller than a year be­
fore. Collections also were greater than
in September but smaller than in October,
1926.
Automobile trade. Retail sales of
passenger cars increased materially from
September to October in number and
value.
Compared with a year before,
however, only the sale of less expensive
new cars showed increases.
Sales of
used cars and deferred payment sales also
showed substantial gains. Sales at whole­
sale were smaller in number and value
than in September and a year earlier,
although appreciable gains occurred in
the distribution of higher priced automo­
biles. Stocks of medium priced cars in­
creased at the end of October, but sup­
plies of other types decreased. Stocks
of used cars also were greater than at
the end of September and a year before.
IN D U S T R IA L C O N D IT IO N S
Industrial conditions generally have
shown little improvement since the mid­
dle of last month.
Employment in

Pennsylvania during October declined
slightly from the total of the month be­
fore, while factory wage payments in­
creased 2.2 per cent, indicating a slightly
higher rate of operations than in Septem­
ber. The extent of this gain, however,
was less than usual at this season. In­
dustrial consumption of electric power
during October declined slightly as com­
pared with the previous month and a year
before, although total sales increased
somewhat. Production of electricity was
larger than in September and a year

Oct., 1927,
with
Oct., 1926

All reporting stores....................

-

Department stores.....................

- 8 .3
- 8 .2
- 8 .6
- 1 3 .4
- 1 9 .3
- 2 1 .9
- 1 6 .2
- 1 1 .1
- 1 2 .6
+ 0 .4
- 7 .5
- 1 8 .8

outside Philadelphia..............
Apparel stores..............................
Men’s apparel stores.............
in Philadelphia...................
outside Philadelphia..........
Women’s apparel stores........
outside Philadelphia..........
Credit stores................................




9 .1 %
“
“
“
“
“
“
“
“
“
“
“
“

Rated generator ca p a city.........
Generated output.......................
H ydro-electric.........................
Steam ........................................
Purchased.................................
Sales of electricity......................
Lighting....................................
M unicipal.............................
Residential and commercial
P ow er........................................
M unicipal.............................
Street cars and railroads. .
Industries.............................
All other sales.........................

Oct.,
1926

Sept.,
1927

+ 2 .6 %
+ 2 .4 “
-2 9 .4 “
- 5 .6 “
+ 6 3 .0 “
+ 0 .2 “
+ 4 .5 “
- 1 .3 “
+ 5 .5 “
- 0 .6 “
+ 2 9 .9 “
+ 1 .4 “
- 1.4 “
- 3 .5 “

+ 0 .4 %
+ 8 .4 “
+ 2 6 .5 *
+ 7 .2 “
+ 9 .2 “
+ 2 .8 “
+ 8 .9 “
+ 15.4 “
+ 7 .9 “
+ 0 .9 “
- 4 .1 “
+ 5 .8 “
- 0 .2 “
+ 3 .5 “

earlier.
October, 1927, change from
AUTOMOBILE TRADE
Philadelphia Federal Reserve District
13 distributors

September, 1927

October, 1926
Number

Value

Number

Value

Sales, new cars, wholesale........................................
Cars under $1,000..................................................
Cars $1,000 to $2,000............................................
Cars over $2.000....................................................

1 0 .6 %
2 .5 “
3 2.0 “
3 4.7 “
+

-1 1 .6 %
- 4 .0 “
-3 0 .4 “
+ 1 6 .8 “

- 1 3 .6 %
7 .6 “
- 3 0.3 “
+ 10.2 “

- 1 3 .7 %
- 10.2 “
- 2 6.6 “
+
5 .3 “

Sales, new cars, at retail...........................................

+ 1 5 0 .7 “

+ 9 8 .6 “

Cars $1,000 to $2,000............................................
Cars over $2,000.....................................................

— 9 .9 “
- 12.2 “

+ 0 .8 “
-2 3 .4 “

+ 9 8 .1 “
+ 1 0 9 .0 “
+
7 .8 “
+ 4 .1 “

+ 8 0.3
+ 1 0 9 .6
+ 19.3
+
5 .5

“
“
“
“

Stocks of new cars.....................................................
Cars under $1,000..................................................
Cars $1,000 to $2,000............................................
Cars over $2,000.....................................................

_ 3 5.6 “
— 6 0.7 “
+ 5 0.3 “
3 7.6 “

-3 0 .8
-6 0 .7
+ 9 .9
-4 0 .7

- 4 3.3 “
- 6 1 .6 “
+
8 .7 “
- 34.3 “

- 3 9.8
- 61.4
+
7 .9
- 57.8

«
“
“
“

Sales of used cars.......................................................

+ 8 1.9 “

+ 5 3 .0 “

+ 2 4.9 “

+

Stocks of used cars.....................................................

+ 8 6.2 “

+ 4 3 .0 “

+ 2 9.8 “

+ 14.6 “

Retail sales, deferred paym ent................................

+

-

+

+

Net sales,
Oct., 1927,
compared
with

WHOLESALE TRADE
Philadelphia Federal
Reserve District

Oct.,
1926
Boots and shoes...................
D rugs.....................................
D ry good s.............................
Electrical supplies...............
Groceries................................
Hardware..............................
Jew elry..................................
Paper......................................

Comparison of net sales
RETAIL TRADE
Philadelphia Federal Reserve
District

October, 1927,
change from

ELECTRIC POWER
Philadelphia Federal Reserve
District
11 systems

Sept.,
1927

-2 4 .7 %
- 0 .5 “
-1 6 .3 “
+ 1 .8 “
- 3 .5 “
- 7 .6 “
- 4.1 “
- 7 .2 “

-1 2 .6 %
+ 1.6 “
+ 0 .5 “
4- 7 .8 “
+ 6 .3 “
+ 7 .0 “
+ 2 1 .0 “
+ 1 0 .8 “

9 .9 “

-

3 .7 %

-

+
+
+
+
+
-

4 .0
5 .0
1.6
0.1
6 .4
7 .0
5 .7
3 .9
3 .3
7.1
1.1
8 .4

- 2 .7
- 3 .2
- 1.7
- 0 .4
- 2 .2
- 1 0 .6
+ 9.1
+ 1.1
- 1.0
+ 9 .3
+ 6 .0
- 0 .4

2 .2 %
“
“
“
“
“
“
“
“
“
“
“
“

“
“
“
“

8 .1 “

Stocks,
Oct. 31, 1927,
compared
with

5 .8 “

15.6 “

5.1 “

Collections,
Oct., 1927,
compared
with

Accounts out­
standing,
Oct. 31, 1927,
compared with

Oct. 31, Sept. 30,
1926
1927

Oct. 31,
1926

Sept. 30,
1927

Oct.,
1926

Sept.,
1927

-1 7 .7 %
+ 1 5 .8 “
-1 8 .1 “
-2 4 .2 “
- 6 .2 “
- 2.1 “
- 8 .0 “
+ 9 .9 “

+
+
-

- 0 .3 %
- 0 .2 “
+ 1 1 .7 “
+ 1 6 .9 “
+ 3 .5 “
+ 3 .6 “
+ 1 8 .3 “
+ 4 .6 “

- 5 .7 %
- 3 .6 “
- 8 .6 “
+ 1 .4 “
- 5 .0 “
-1 7 .7 “
-1 9 .8 “
- 9 .8 “

+ 2 5 .4 %
+ 8 .4 “
+ 1 2 .9 ‘
+ 4 2 .1 “
+ 1 3 .1 “
+ 1 1 .3 “
- 6 .6 “
+ 2 .1 “

+
+
+

Comparison of stocks

Jan. 1 to
Oct. 31, 1927
Oct. 31, 1927,
with
Jan. 1 to
with
with
Oct. 31, 1926 Oct. 31, 1926 Sept. 31, 1927

“
“
“
“
“
“
“
“
“
“
“
“

—
—

4 .4 %
1 .6 “
6 .9 “
4 .9 “
9 .2 “
1 .5 “
5 .5 “
4 .5 “

5 .1 %
2 .9 “
3 .6 “
6 .5 “
0 .1 “
3 .2 “
3 .5 “
7 .0 “

Outstanding
Jan. 1 to Oct. 31

1926

1927

Accounts

at end of
month
compared
with
year ago

at end of
month
compared
with
year ago

during
month
compared
with
year ago

+ 1 .8 %

+ 3 .4 %

+ 1 1 .0
— 1 3
+ 9 .3
+ 2 .2

“
“
“
“

+ 1.2
+ 2 3 .2
- 3 .2
+ 15.0
0 .0

+ 2 .2
+ 1 0 .0
+ 8 .8
+ 1 4 .8
+ 2 .3
+ 0 .4

“
“
“
“
“
“

0 .0
+ 1 7 ,0
+ 1 5 .8
+ 2 2 .0
+ 5.1
0 .0

+ 4 .1 %

2.71

2.62

- 1 6 .5 %

+ 3 .6 “
+ 2.4 “
+ 6 .2 “
+ 9.1 “
+ 1 .8 “
+ 2 .3 “
+ 1.3 “
+ 1 5 .9 “
+ 1 7 .6 “
+ 1 0 .1 “
+ 5 .0 “
+ 5 .3 “

2.70
2 87
2.29
3.35
2.15
2.25
2.00
4.87
5.22
3.69
2 34
2.38

2.62
2.79
2 24
3.25
2 05
2.25
1.78
4.64
4.95
3.58
2 23
2.01

- 1 7 .5 “
-

9 .9 “

“
“
“
“

“
“
“
“

Page Five

Iron and steel. Some seasonal im­
provement in the manufacture of iron and
steel products continues in evidence but
the extent of this gain is noticeably nar­
rower than was the case at the same time
last year. Buying by the principal con­
sumers during the month has not equaled
the volume of a year ago. Little change
in prices is noted. The average quota­
tion for pig iron has risen slightly in the
past fortnight but that for finished steel
remained unchanged at a level slightly be­
low that prevailing in October. Com­
pared with a year ago, average prices
of pig iron and steel are 12 and 8 per
cent, respectively, lower.

time last year.
moderate.

Stocks in the main are

Sources: Department o f Commerce and Silk Ass’n. o f
America

Practically no change has occurred in
plant operations since the middle of last
month, the current rate of production for
the industry in this district being esti­
mated at about 70 per cent of capacity.
The daily output of pig iron rose slightly
between September and October but was
still almost 18 per cent under the volume
of a year before. October production of
pig iron in the country was the smallest
for any month since August, 1925. Un­
filled orders of the United States Steel
Corporation increased 2.4 per cent from
September to October but were nearly
11 per cent below the total of a year
earlier.
Production of iron castings increased,
while that of steel castings decreased be­
tween September and October. The de­
cline from the volume produced a year
ago was considerable in both iron and
steel foundries of this district. Unfilled
orders for iron castings were noticeably
greater, but those for steel castings were
smaller than in October, 1926.
Textiles.
Some of the principal
branches of the textile industry have
shown seasonal betterment, both sales
and output having increased in the month.
Prices remain firm. Unfilled orders gen­
erally compare well with those of a year
earlier.
Plant operations, as measured
by employment and wage payments, ex­
panded further between September and
October, the greatest gains in payrolls
being in carpets and rugs, knit goods and
hosiery, dyeing and finishing textiles. Mill
takings of raw materials, while declining
slightly in the month, compare more than
favorably with the volume at the same

Page S ix




The market for cotton yarns and fabrics
is fair, with prices steady. Raw cotton
prices have fluctuated within a wider
range than a year ago, but the average
spot price has held at over 60 per cent
higher than at the same time last year.
Production continues at the October rate,
which is above the level of a year before.
Mill takings of raw cotton in the country
declined nearly 3 per cent in October but
were 6.5 per cent greater than a year
earlier and 16 per cent larger than two
years before. Stocks of fabrics are mod­
erate, while those of yarns are rather
light.
Demand for woolen and worsted piece
goods is increasingly active, while that
for yarns and raw wool has slackened a
trifle lately, although sales of yarns ex­
ceed measurably those at the same time
last year. Further advances in prices
have occurred during the month. Plant
operations have increased slightly since
the middle of last month. Unfilled orders
for wool fibers and yarns are larger while
those for piece goods are somewhat
smaller than four weeks ago. Stocks of
finished goods generally are a bit lighter
than on the same date of last year. Sup­
plies of raw wool held by dealers and
manufacturers in this section at the end
of September were considerably heavier
than those on the same date last year,
but total stocks in the country were 5 per
cent smaller.

Raw wool stocks
(Figures in thou­
sands of pounds)

Sept. 30,
1926

June 30,
1927

Sept. 30,
1927

Held b y dealers
in—
Philadelphia. . .
United States. .

15,186
192,978

16,497
200,390

21,133
166,067

Held by manufac­
turers in—
M iddle Atlantic
section...........
United States. .

57,387
128,593

63,052
133,678

63,576
141,718

T o t a l f or the
United States 375,714

385,615

357,107*

* Of the total amount of raw wool reported, 70.3
per cent was domestic and 29.7 per cent was foreign.

Business in thrown silk is fair, sales
having increased slightly in the month;
but the market for silk fabrics is rather
slow, the demand lagging noticeably be­
hind that of four weeks and a year ago.
Prices of silk goods have continued the
decline commenced in the early part of
this year, and on November 1 were over
8 per cent lower than a year before. This
is chiefly a result of a similar recession
in prices of raw silk. Forward orders for
thrown silk approximate those of a year
ago, while advance business in broad and
narrow silk goods is noticeably smaller.
Plant operations have declined somewhat
during the month.
Stocks of finished
fabrics are heavier while those of thrown
silk are lighter than a month and a year
ago. Supplies of raw silk in warehouses
at the end of October were 5 per cent
greater than on the same date last month
and were 77 per cent above those of a
year before. Domestic mill takings and
imports of silk fibers, while declining in
October, were somewhat larger than a
year earlier.

Raw silk *
(Figures in bales)

Oct.,
1926

Sept.,
1927

Oct.,
1927

Im ports.......................
S tocks..........................
M ill takings...............

48,403
35,094
47,768

52,475
58,986
50,107

51,207
62,366
47.827

* The Silk Association of America.

Carpet and rug manufacturers report
improvement in business, sales being
larger than a month and a year ago.
Stocks of finished goods are smaller and
unfilled orders are reported as larger than
a year ago. There has been a consider­
able gain in the number of wage earners,
while weekly wages show a larger in­
crease. Some price increases are noted.
Manufacturers of linoleums and felt
base goods report a good volume of busi­
ness with some price advances.
There is a good and slightly increasing
demand for women’s full-fashioned silk
hosiery, but the demand for men’s and
women’s seamless is fair or poor. Prices
remained practically unchanged in the
month. Moderate stocks of finished goods
are smaller than those of a month and a
year ago. Plant operation is about the
same as a month ago and orders now on
the books will permit operation for two
months.
Leather. The packer hide market is
firm and strong, heavy native steers gain­
ing one cent in the month. The supply
is sold up to production. Goatskins, which
are in good demand, are higher and ad­
vancing. Considerable price resistance is
reported.
Black kid is in good demand, while that
for colored kid is fair. Prices are un­
changed. Stocks of finished goods have
decreased slightly. There is a good de­
mand for sole leather, with some advance
in prices.

Number of
wage earners—
week ended
EMPLOYMENT AND WAGES
in Pennsylvania

plants
reporting

Oct.
15,
1927

Per cent
change
from
month
ago

Total
weekly wages—
week ended

Oct.
15,
1927

Average weekly
earnings—
week ended

Per cent
change
from
month
ago

Oct.
15,
1927

Per cent
change
from
month
ago

All industries (46).................................

A decreased demand for leather belting
is reported, while prices have increased.
Demand for shoes continues fair with
sales slightly smaller than a month ago.
Stocks of finished goods are smaller than
those of a month and a year ago, and
unfilled orders are larger than last year’s.
Many firms report higher prices. Unfilled
orders assure operation on the average
for a period of one month.
Production of reporting firms for the
month of October, in this district was
1,493,466 pairs, as compared with 1,488,462 pairs in September. Total production
for the United States for October was
28,459,544 pairs, as compared with
29,901,207 pairs in September.
Building. Construction activity in this
district has slackened somewhat in recent
weeks, although the general level com­
pares more than favorably with that pre­
vailing a year ago.
Contract awards,
while declining between September and
October, were considerably above those
of a year before, the gain being 14.1 per
cent in the total value and 33 per cent
in the value of residential buildings. The
total value of contracts let in the United
States during October exceeded that of
the previous month and of a year earlier.
The proposed expenditure under permits
issued in 16 cities of this district in
October declined about 25 per cent from
that of a month and 22 per cent from a
year before. Construction costs dropped
a little further in October and were more
than 4 per cent under the level of a year
ago.
The market for building materials is
only fair, sales generally being somewhat
smaller than four weeks and a year ago.
Prices as a rule have declined slightly in
the month. Plant operations have de­
creased somewhat, and forward business
does not compare favorably with the vol­
ume of a year ago. Stocks in the main
are not heavier than is usual for this
season.
Real estate. Activity in real estate
continues at a lower rate than that of a
year ago, although recently some better­
ment has been reported. Small houses
renting at less than $50 a month are now
in best demand. Rents for houses and
apartments generally have decreased dur­




825

273,306

-

0 .2

$6,994,131

+ 2 .2

$25.59

Metal manufactures:
Automobiles, bodies, and parts. . . .
Car construction and repair............
Elec, machinery and apparatus___
Engines, machines, mach. t o o ls .. . .
Foundries and machine shops.........
Heating appl. and apparatus..........
Iron and steel blast furnaces...........
Iron and steel forgings.....................
Steel works and rolling m ills...........
Structural iron w orks.......................
Misc. iron and steel products.........
Hardware............................................
Non-ferrous metals...........................

273
19
19
16
37
54
15
11
9
35
17
24
8
9

129,729
9,612
18,310
5,647
9,817
8,403
3,740
11,448
2,326
35,713
4,678
17,539
1,659
837

- 1.4
- 4 .7
- 1 .4
+ 3.2
+ 1.0
- 0 .6
- 3.1
+ 4 .5
-1 1 .8
- 2 .5
- 0 .4
- 3 .0
- 0 .4
+ 3.1

3,475,376
262,757
494,242
147,201
281,650
230,357
102,352
313,059
43,476
943,647
132,106
462,344
40,837
21,348

+ 0 .6
- 8.3
+ 0 .8
+ 9 .7
+ 9.1
+ 2.5
- 5 .8
+ 1 0 .5
- 1 6 .7
- 2 .9
+ 12.7
- 1.6
+ 3 .8
+ 5 .0

26.79
27.34
26.99
26.07
28.69
27.41
27.37
27.35
18.69
26.42
28.24
26.36
24.62
25.51

+
+
+
+
+
+
+
+
+
+

Textile products:
Carpets and rugs...............................
C lothing..............................................
Hats, felt and other..........................
Cotton good s......................................
Silk good s............................................
Woolens and worsteds......................
Knit goods and hosiery....................
Dyeing and finishing textiles..........

169
9
32
5
16
42
14
41
10

56,209
2,829
4,799
3,848
4,539
17,346
6,659
14,318
1,871

+
+
+
+
+
+
+

2 .0
10.9
0 .9
2 .4
0 .5
0 .2
3 .4
4 .8
1.2

1,298,123
76,353
87,826
103,646
105,803
338,063
152,136
386,747
47,549

+ 8 .9
+ 2 9 .4
- 2.1
- 0 .9
+ 1.1
+ 6.7
+ 6.1
+ 16.6
+ 11.8

23.09
26.99
18.30
26.94
23.31
19.49
22.85
27.01
25.41

+ 6 .7
+ 16.6
- 3 .0
+ 1.6
+ 0 .6
+ 6 .9
+ 2 .7
+ 11 .2
+ 1 0 .5

F oods and tobacco:
Bakeries...............................................
Confectionery and ice cream ...........
Slaughtering and meat p a ck in g ... .
Cigars and toba cco...........................

104
29
24
15
36

24,310
4,428
6,055
2,165
11,662

+ 1.5
+ 1.7
+ 2 .8
+ 0.2
+ 0 .9

502,513
129,586
133,180
63,634
176,113

+
+
+
+
+

2 .9
2 .4
1.0
2.1
5.1

20.67
29.27
22.00
29.39
15.10

+
+
+
+

Building materials:
Brick, tile, terra cotta products .. .
Cem ent................................................
Glass.....................................................
P ottery................................................

65
25
14
23
3

19,826
4,028
7,151
7,751
896

+
-

0 .7
1.5
3 .6
3.1
4 .0

558,007
94,893
225,696
214,700
22,718

+
+
+

0.2
3 .7
3 .6
6 .4
2 .8

28.15
23.56
31.56
27.70
25.35

+ 0 .9
- 2.3
0
+ 3.2
+ 7.1

Construction and contracting:
Buildings.............................................
Street and highw ay..........................
General................................................

33
18
4
11

6,828
1,539
2,475
2,814

+ 0.1
- 3 .5
+ 1.6
+ 0 .9

194,182
50,154
71,145
72,883

+

2 .8
5 .9
5.2
2 .0

28.44
32.59
28.75
25.90

- 2 .9
- 2 .5
- 6 .6
+ 1.1

Chemicals and allied products:
Chemicals and drugs........................
E xplosives...........................................
Paints and varnishes........................
Petroleum refining............................
C ok e.....................................................

33
13
3
9
5
3

10,492
1,108
530
1,111
5,195
2,548

+
+
+
+

1.7
1.2
0 .7
0 .2
0 .5
7 .8

309,846
30,538
14,487
30,330
159,422
75,069

+
+
+
+
+
+

4.1
3.1
8 .7
12.5
0 .9
7.8

29.53
27.56
27.33
27.30
30.69
29.46

+
+
+
+
+
-

2 .4
1.8
9.5
12.3
1.4
0.1

Miscellaneous industries:
Lumber and planing mill products.
Furniture............................................
Leather tanning................................
Leather products...............................
Boots and shoes.................................
Paper and pulp products.................
Printing and publishing...................
Rubber tires and go o d s ....................
Novelties and jew elry.......................

148
25
19
17
8
22
15
36
3
3

25,912
3,243
2,171
5,989
426
4,206
3,654
3,904
813
1.506

- 0.1
- 0 .5
- 3.1
+ 2 .0
- 2 8 .4
+ 0 .5
+ 0.2
+ 1.3
- 0 .7
+ 3 .4

656,084
67,536
53,997
156,263
8,349
79,173
100,306
132,677
24,479
33,304

- 0 .9
- 0.2
- 3.3
+ 4.0
- 2 9 .7
+ 0 .6
- 0.5
+ 2.1
+ 3 .4
+ 5.1

25.32
20.83
24.87
26.09
19.60
18.82
27.45
33.98
30.11
22.11

+
+
+
+
+
+
+

1.0
0 .4
0.2
1.9
1.9
0 .2
0 .7
0 .8
4.2
1.6

ing the past three months. Sales of lie u ,es
at less than $6,000 exceed slightly those
of a year ago, but sales of medium and

+ 2 .4
2 .0
3 .8
2.3
6.3
8 .0
3.1
2 .8
5.7
5 .6
0 .4
13.2
1.5
4 .3
1.8

1.4
0 .7
1.7
1.9
4.1

more expensive dwellings show a marked
decline. Most of the houses now under
construction are for sale.
Prospective home buyers find little diffi­
culty in obtaining funds with which to
finance their purchases. The prevailing
rate of interest generally is 6 per cent
and commissions charged by brokers on
first mortgages average about 2 per cent.
The volume of financing for new comm e r c i a 1 construction is appreciably
smaller than was the case at the same
time last year. This is also true with
respect to residential building. A large
majority of the present loans are for
owners.
Paper. The paper market generally
continues at the rate usual at this sea­
son, and sales compare favorably with

Page Seven

those of a year ago. Unfilled orders,
while declining in the month, are large
enough to assure production at the rate
of about 80 per cent for approximately
one month. Stocks increased slightly dur­
ing the month.
Cigars. Stimulated by the holiday de­
mand, operations of cigar factories have
increased slightly since last month, and
unfilled orders are sufficient to warrant
output at the current rate of close to 80
per cent of capacity for about six weeks.
Stocks, while declining in the month, were
about the same as a year earlier.
Coal.
The market for anthracite,
though affected somewhat by mild
weather and by competition of substitutes,
continues moderately active, sales of do­
mestic and steam sizes being in fair vol­
ume. Some price advances have occurred
during the month, but the general level
remains somewhat under that of a year
ago. Production in the first three weeks

of November was 1.2 per cent lower
than in the same period last year. Stocks
are larger as compared with those of a
year ago. Latest official estimates show
that, although the output of hard coal in
the first nine months of this year lagged
somewhat behind that of other recent
years, stocks held by retail yards in the
country on October 1 were sufficient to
last 60 days at the rate householders were
buying in August and September. This
was an increase of 6 per cent over supplies
on July 1 and of 5 per cent over stocks
as of October 1, 1926.
Current demand for soft coal is slow,
and prices continued the decline begun in
September. Production in the four weeks
ended November 19 was 6.7 per cent
smaller than in the previous four weeks.
A t the rate of consumption existing in
August and September, which was from
6 to 8 per cent below that of a year be­
fore, stocks of bituminous coal in the
country on October 1 were large enough
to last 53 days.

A g ricu ltu re. The agricultural situa­
tion in the main continues satisfactory.
Weather conditions generally have been
favorable for the harvesting of corn, the
digging of potatoes and the curing of to­
bacco. The area of fields plowed has
been larger this fall than last. The stand
of winter wheat is good, surpassing that
of last fall. The condition of cover crops
also has improved. A noticeable better­
ment is reported in the condition of live­
stock. The number of marketable hogs
approximates that of last fall. Prices
for farm products remain about 5 per
cent above those at the same time last
year.

Philadelphia Federal
Reserve District
(Figures in thousands
of units)
C orn ............................... bus.
W h e a t............................ “
Oats................................ “
P otatoes........................ “
T o b a cco ............................lb.

Estimate
N ov. 1,
1927

Y ield
1926

47,110
17,646
24,397
25,342
41,134

51,468
21,450
22,319
21,507
43,560

BUSINESS C O N D ITIO NS IN T H E P H IL A D E L P H IA FE D E R A L RESER VE D ISTR IC T
Dem and

P rices

U nfilled orders co m ­
pared w ith year ago

R etail trade .................
W h o le sa le trade ...........
D rugs .......................
D ry good s .............
E le ctrica l supplies
G roceries ...............
H ardw are ...............
J ew elry ...................
Paper .....................
Shoes ........................
P lum bin g su p p lies.
L um ber ...................
W o o l ........................
C otton yarns . . . .
A u tom ob iles .........

Little change
Unchanged
Little change
Unchanged
Little change
Some decline
Unchanged
Unchanged
Higher
Lower
Lower
S trong; unchanged
S trong; some decline
Some decline

Fair
hair to poor
Active
Fairly active
Fair
Fairly active
Fairly active
F a ir; decreased
Fair
Fair
Only fa ir ; decreased
Fair
Slow

Spot delivery
Spot delivery
Spot delivery
Spot delivery
Spot delivery
Spot delivery
Spot delivery
Slightly larger
Smaller
Little change
Increased slightly
Losses offset gains

Iron and steel P rod ­
u cts
........................
C otton ..............................
Silk ..................................

Litt’e change; some ad­
vance in pig iron
Fairly steady
Declined

Fair

Smaller

W ool

Higher for
piece goods
Unchanged

O p erations

Increased

................................

H o sie ry

..........................

yarns

Fair
Stronger for thrown silk
than for fabrics
and Fairly active for fabrics;
only moderate for yams
G ood in full-fashioned;
fair in seamless
F air; increased
F a ir; decreased
Fair
Fairly good
Fairly good

Carpets and rugs . . .
Shoes ..............................
Leather b eltin g ...........
L eather— kid .................

Some advances
Higher
Higher
Unchanged
Higher

Paper ................................
C igars and t o b a c c o ...

Generally unchanged
Unchanged

B rick ................................

bower
Slightly lower

F a ir; little change
Fairly
active,
though
not as strong as a year
ago
Fair to poor
Only fair

S late ................................
Paint ..............................
P lum bin g supplies . . . .

Some decline
Some decline
Mainly unchanged

Fair; decreased
F a ir; unchanged
Fair to poor

R eal estate ...................
B u ild in g .........................

Lower
Construction costs lower

Smaller than a year ago
Fair

C oal— anthracite .........
C oal— bitu m inou s . . . .

F irm ; some higher
Lower

F air;
Poor

Page Eight




unchanged

Stocks
Smaller than a year ago

Little change; losses o ff­
set gains
Little change
Lower

Larger
Smaller
Smaller
Increased in the month
Smaller
Smaller
Larger
Smaller
M oderate; decreased
Little change
Moderate to light
Smaller
Smaller in new but
larger in used cars
Moderate

Full-fashioned and
seamless unchanged
Increased slightly
Little change
Decreased
Little change
Unchanged

M oderate; little change
Greater in fabrics,
smaller in thrown silk
Moderate to light; d e ­
creased slightly
Moderate and slightly
smaller
Smaller
Smaller
Increased
Slightly smaller
Slightly smaller

Unchanged
Slight increase

Slightly larger
Decreased

Smaller
Smaller

Lower
Lower

Smaller
Little change
Smaller

Lower
Little change
Little change

Larger
Larger; about the same
as a year ago
Slightly larger
Little change
M oderate; lighter than
a year ago

Value o f October build­
ing permits declined

October contracts
smaller than in Septem­
ber but greater than a
year ago
Little change
Little change

Smaller
Smaller
Greater for fabrics
smaller for yarns
Little change from a
month ago
Larger
Slightly larger
Unchanged
Slightly larger
Larger than a month
ago
Little change
Little change

Increased

slightly

Increased
Larger