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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