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1ES EI SEVENTH FEDERAL V olum e Chicago, A ugust 1, 1923 6, N u m b e r 8 BUSINESS CONDITIONS IN TH E UNITED STATES Production of basic commodities declined in June but employment was maintained at last month’s high level, freight shipments were exceptionally large, and the volume of wholesale and retail trade continued heavy. Wholesale prices showed a further decrease. PRO D U C TIO N — The Federal Reserve Board’s index of production in basic industries, which makes allowance for seasonal variations, was 4 per cent lower in June than in May, and stood at about the level o f the late winter. Mill consumption of cotton, steel ingot output, and sugar meltings showed particularly large reductions. The value of permits for new build ings and o f contracts awarded declined in June more than is usual at that season. The Department of Agriculture forecasts, on the basis of July 1 condition, a large increase in the cotton crop, a slight reduction in the corn crop, a winter wheat crop of about the same size as last year, and a spring wheat crop which will possibly be about forty million bushels below 1922. The number of factory employees at work in June in the country as a whole was about as large as in May, though a reduction is reported by New England estab lishments. The proportion of factories reporting full IN D E X O F B A S IC Combination of Corrected for P R O D U C T IO N IN IN D U S T R IE S 22 Individual Series Seasonal Variation P R IC E S — IN D E X N U M B E R OF W H O L E S A L E P R IC ES U. S. Bureau of Labor Statistics time operations decreased and consequently average earnings per employee were smaller. Wage advances continued to be reported in June, but they were not nearly so numerous as in April or May. TR A D E — Distribution of commodities, as measured by railroad freight shipments, was active throughout June; the number of cars loaded exceeded one million in each of four successive weeks, and in the week ended June 30 was the largest on record. The volume of wholesale and retail trade in June was about the same as in May and continued to be substantially larger than in 1922. Sales of groceries and dry goods were much larger in June and this in crease was reflected in an advance of 4 per cent in the Federal Reserve Board’s index of wholesale trade. This index, which makes no allowance for seasonal changes, was 9 per cent above the June, 1922, level. Department store and mail order sales were smaller, as is usual at this season, while sales of reporting chain stores were at about the same high level as in May. Stocks of merchandise at department stores were re duced about 6 per cent. W H O L E SA L E PRICES— The decline in commod ity prices, which began late in April, continued during B A N K C R E D IT 800 Member Banks In Leading Cities KLUOrCofOOLL/E-----14 1 VlA 4 B A N K C R E D IT A ll Federal Reserve Banka M i l IONS or DOLLARS 3M0 lo a m s no n DtMAHD DEPOSITS DISCOUNTS 5000 J 2000 td c f vV \ sJjmmS INVEST? 2 TIME d ep o ts $00 o. Latest figure June, 1923: 122 Base adopted by the Bureau of Labor Statistics. Latest figure June, 1923: 153 , ,. 1919 <920 192.1 192.2. 1923 Latest figures July 11, 1923: loans and discounts 11,853 million: Invest ments 4,644 million; demand de posits 11,281 million; time de posits, 3,968 million. Compiled July 27, 1923 0 1919 >920 1921 1922 1923 Latest figures July 18. 1928: Federal reserve notes 2,217 million; earn ing assets 1,087 million. June and the first two weeks of July and the index of the Bureau of Labor Statistics for June was 2 per cent less than for May. The largest decline amounting to 4 per cent oc curred in the prices of building materials, and decreases were shown also for all the other commodity groups, except house furnishings which remained unchanged. During the first half of July price declines were shown for wheat, sugar, petroleum, and lead, while the price of corn and hides advanced. BANK CREDIT— Banking developments between the middle of June and the middle of July largely reflected the payment of income taxes on June 15, dividend and interest payments at the turn of the half year, the demand for addi tional currency for the July 4 holiday, and the return flow of currency after that date. At the end of the period the volume of member bank and Federal Reserve bank credit in use was approximately at the same level as a month earlier. At the Federal Reserve banks the amount of discounts for member banks on July 18 was about $100,000,000 larger than on June 13, but this increase was practically balanced by a decline in holdings of acceptances and Government securities. During the month of June gold and gold certificates in cir culation increased by over $40,000,000, and this increase is reflected in an equivalent decline of gold held by the Federal Reserve banks. Money rates were slightly firmer as is usual at this season of the year. BUSINESS CONDITIONS IN THE SEVENTH RESERVE DISTRICT H E second half of 1923 began with business in the Middle W est still benefiting from its earlier expan sion, but slackening somewhat on account of seasonal in fluences as well as the continued policy of conservatism. The declines from May in automobile production and in steel and iron output were slight, both industries main taining unusual activity. Other manufactures varied, but on the whole industrial operations continued at a high level, keeping labor fully employed. Building also went forward in considerable volume, es pecially in this district, with contracts awarded reaching their highest value for the year, and brick and cement plants in general operating at capacity. The coal situa tion, however, failed to show as favorable conditions in this district as in other parts of the country. Carloadings passed the million-car-a-week mark four times during June. In most lines wholesale distribution was about normal for the season, while the warmer weath er proved an incentive to retail trading. Agriculturally, the outstanding factor is the improved condition of all crops. Other features are the restricted movement of grain and live stock and the reduced flour production. O f importance financially were the more general demand for accommodation at banks, the usual July 1 gains in deposits and in savings accounts, and the decided drop in number and amount of business failures. The reinvest ment of mid-year funds was light. M ONEY AND BANKING No marked change in the credit situation appeared in the district during June, but the demand for accommoda tion at banks was apparently more generally active than in May. The demand in some agricultural sections is reflected in the reduction of country bank balances and in seasonal increase in accommodation by city banks to country correspondents. These borrowings will be reduced when proceeds of the harvest are available. Indications are that in some cases where the increased demand has not been felt, the country banks will need funds a little later. In some sections farmers appear disposed to hold their wheat crop because of the present low prices; in other sections, however, it is anticipated that the wheat will come on the market direct from the thresher, which will tend to ease the demand from the agricultural sections, as well as help liquidate some of their obligations. Proceeds will soon be received also from marketing a considerable T Page 2 August number of cattle and hogs nearly ready for market. A cautious sentiment continues to manifest itself; bank ers are scrutinizing their loans closely, and the policy of buying mainly to meet immediate trade requirements has been generally followed by manufacturers and merchants. Business failures during June reached a low level both in number and liabilities. In the district the number of insolvencies dropped 30 per cent below the May figure, while total liabilities decreased some 39 per cent. For the entire country, the decline was slightly smaller. Busi ness mortality during the second quarter of the year shows a decided decline from the totals for the first quarter and an even more favorable comparison with the second quar ter of 1922. AGRICULTURAL FINANCING The credit supply for agricultural financing this year gives assurance of ample funds to finance the marketing of wheat and other agricultural products. The banking situa tion in agricultural sections is improved, and bankers gen erally are ready to co-operate with farmers in the orderly marketing of crops. In the event that funds o f the local banks are not sufficient to cover the requirements, the Federal Reserve banks will extend accommodation to member banks through rediscounts. Federal Reserve banks are especially desirous, where necessary, to assist in the orderly marketing. Broader assistance can be given this year as a result of the legisla tion by the last Congress amending the Federal Reserve Act, providing that— Under certain conditions, banks with a capital as small as $15,000 may now become members of the Reserve System with the resulting benefit of the rediscount privileges. Agricultural and live stock paper with maturity running to nine months is now eligible for redis count at the Federal Reserve banks, the former requirement being six months. Demand bills-of-lading drafts covering domestic shipments of non-perishable, readily marketable staple agricultural products, such as grain, cotton, wool, and tobacco, are made eligible at the Federal Reserve bank for rediscount. The rediscount privilege at the reserve banks, heretofore held by member banks only, is now ex tended to the Federal Intermediate Credit banks. Federal Reserve banks may also- enter the market for debentures of limited maturities issued by the Federal Intermediate Credit banks and the Agri cultural Credit corporations, and also for the ac ceptances of these agencies. In addition to these enlargements of powers of the Federal Reserve banks, the Federal Farm Loan Act also was amended by the Act of March 4, known as the A gri cultural Credits Act of 1923. Under this Act, two distinct types of agricultural credit agencies were established, the Federal Intermediate Credit banks and the National A g ricultural Credit corporations. The first of these operates under the Federal Farm Loan Board and the second under the Comptroller of the Currency. Each of these corpora tions may issue debentures or other such obligations with a maturity1 not to exceed five years in case of the Inter mediate Credit banks and three years in case of the National Agricultural Credit corporations. The amount of debentures which the Intermediate Credit banks may issue is restricted to ten times the paid-in capital and surplus. The Federal Intermediate Credit banks are established in the same cities as the twelve Federal Land banks and the officers and directors of the Land banks are ex-officio officers and directors of the Intermediate Credit banks. N o Intermediate Credit bank is located in this district, the state of Illinois being covered by the St. Louis bank, In diana by the Louisville bank, Iowa by the Omaha bank, and Michigan and Wisconsin by the St. Paul bank. The Federal Intermediate Credit banks are authorized to discount for or purchase from any bank or other financial institution or co-operative credit or marketing association of agricultural producers organized under state law or any Federal Intermediate Credit bank, evidences of credit, pro vided the original loans were made for agricultural or live stock purposes. They may also loan directly to co-oper ative associations composed of persons engaged in pro ducing and marketing staple agricultural products or live stock on paper secured by warehouse receipts, shipping documents or mortgages on live stock. Such direct loans are not to exceed 75 per cent of the market value of the products covered. The loans, advances, or discounts at the time they are made or discounted by the credit bank shall have a maturity of not less than six months nor more than three years. The National Agricultural Credit corporations estab lished under the Agricultural Credits Act are private or ganizations. Those organized with a capital of not less than $250,000 may make advances or discount paper drawn for agricultural purposes or for live stock feeding having a maturity of not exceeding nine months and for the pur pose of maturing or breeding live stock or dairy herds having maturity not exceeding three years. The rediscount corporations are National Agricultural Credit corporations with an authorized capital stock of not less than $1,000,000, which do not make loans directly to borrowers, but may discount paper for National Agricultural Credit corpora tions, co-operative associations of producers of agricul tural products or any bank or trust company which is a member of the Federal Reserve System, such paper being subject to the regulations mentioned above. Organization of the twelve Intermediate Credit banks established under this legislation has been completed with a present capital paid in by the Government of $1,000,000 for each bank of the $5,000,000 authorized capital. Loans at present are being made from the capital fund, although in early July it was anticipated that an issue of $10,000,000 debentures would be placed on the market the middle of the month. Total loans in the country by these banks up to early July amounted to $500,000. On July 19 the loans in the five states of this Federal Reserve District were approximately $75,000. COMMERCIAL PAPER AND ACCEPTANCES Commercial paper sales during June as reported to this bank by ten dealers increased slightly over May on account of the rather large gains made by four dealers; all others reported smaller sales. Compared with a year ago, the aggregate sales of eight dealers increased 7 per cent, four of these reporting decreases. There was a good demand for high-class paper at 4J4 and 5 per cent. One dealer reported most sales originating with outlying and out-of-town banks, but this demand was not steady. A slight falling off in demand the last week in June was noted by one dealer. The supply of paper was increasing according to reports from two dealers. Selling rates during the month were reported ranging from 4J4 to 5J^ per cent, showing no change for the last two months, although the lower rate was more in evidence during June. The prevailing rates were at 5 and 5 % per cent. One dealer reported rates working firmer. A slight falling off in the volume of bills purchased by six bill dealers in the district was indicated in reports to this bank. Purchases during the four-week period ended July 11, amounting to $7,490,000 were $1,002,000 less than in the preceding four-week period. Sales increased from $7,573,000 in the period ended June 13 to $10,876,000 in the period under review, indicating considerable transfers of bills to this district from branches of reporting dealers, since bills held on July 11 were only $1,115,000 less than those held on June 13. Sales to the Federal Reserve Bank amounted to 33 per cent of the total compared with 20 per cent in the period of June 13. Out-of-town banks pur chased only 30 per cent compared with 59 per cent. The supply of bills was limited, while demand was spotty, ranging from very light to good. Tw o reports indicated a fair to good movement of bills at the offered rates, but another stated that they did not move very rapidly. Bills were offered at the close of the period at rates ranging from 4@4J^ per cent for short maturities to 4%@4J^ per cent for longer term, the same as shown for the last two months. Bid rates ranged from 4J^@ 4^ per cent for maturities up to 90 days and 4)^;@4^ per cent up to 180 days maturities. Bills of 60 to 90 days were in the best demand. Commodities against which bills were reported drawn were: agricultural implements, packing house products, grain, raisins, peanuts, oil, and metals. Acceptances executed during June at twenty-six banks in the district were practically the same in volume as in the preceding month. Bills bought decreased considerably from May, only two banks being in the market for bills during the month. Bills sold increased 10 per cent over May, partly accounting for bills held showing a decrease Page 3 August of 62 per cent at the close of June compared with those held May 31. Of the holdings at the close of June, 47 per cent were the accepting banks’ own bills. The liability of these banks on acceptances outstanding at the close of June was 20 per cent less than at the close of May. Four teen banks reported no transactions in bankers’ accept ances during June. Operations of this bank in the acceptance market were on a much larger scale during June than in the preceding month. Purchases of bankers’ acceptances amounted to 38 million compared with 11 million in May. Sales from holdings were a negligible quantity. Bills held at the close of June amounted to 44 million, an increase of 15 million over those held at the close of May. MEMBER BANKS IN THE DISTRICT The mid-year accumulation of funds is shown in the increase in deposits of reporting member banks in leading cities of the district on July 3. In the two weeks ended July 3, net demand deposits at Chicago banks, which on June 20 reached the lowest level of the year, increased 46 million or nearly 5 per cent, but decreased 11 million on July 11. At Detroit banks deposits were higher in June than in May, and the decrease June 27 was followed by in creases the next two weeks. In other selected cities June deposits, except for an increase the first week, showed a downward trend, but the increases in the two weeks ended July 11 brought them above the May 29 level. Investments showed no marked change except that, in Chicago, holdings of other than Government securities, which have shown a decreasing trend since April, in R E P O R TIN G M E M B E R B AN K S , S E V E N T H C O M P A R A T IV E P O S ITIO N D IS TR IC T creased on July 3, more than offsetting a slight decrease in holdings of Government securities. No marked trend was in evidence in loans and dis counts. At Chicago banks loans on stocks and bonds decreased on June 13 and again on July 3, but increased on July 11. Other loans which had increased on June 27 decreased the first two weeks in July. At Detroit banks loans on stocks and bonds increased during June, but decreased the first week of July. In other selected cities loans other than on stocks and bonds fluctuated during June, and the increase July 3 was largely offset by a de crease the following week. JOINT STOCK AND FEDERAL LAND BANKS Loans by Federal Land banks outstanding in the five states of the district increased slightly more during June than May, while the increase for Joint Stock Land banks was slightly less than in May. The Federal Land bank loans outstanding increased during June from $108,250,000 to $110,451,000, and loans by twenty Joint Stock Land banks increased from $128,954,000 (revised figure) to $132,411,000. POSITION OF TH E RESERVE BANK Loans to member banks by the reserve bank fluctuated during June, reaching a low of 74 million June 13 and a high of 101 million on June 27. A decreasing trend was shown the first part of July, followed by an increase July 18. Federal Reserve notes increased sharply July 3, but decreased the two following weeks. Total reserves which had shown a decreasing trend during June increased the first two weeks of July, but decreased July 18. FEDERAL RESERVE B A N K OF C H IC A G O , P O S ITIO N C O M P A R A TIV E Latest figures shown in thousands of dollars July 18, 1923: Federal Reserve notes in circulation 404,928; total earning assets 141,743. SAVINGS ACCOUNTS AND DEPOSITS ♦Break in curve indicates data not comparable with preceding. Based on weekly reports to this bank by approximately 49 member banks in Chicago, 13 in Detroit, and 44 in other selected cities. Page 4 August The usual increase in savings deposits on July 1 was shown in the reports to this bank from banks representing approximately 40 per cent of the total savings deposits in the district. The gain of 2 per cent over June 1 was due largely to the crediting of semi-annual interest and to the small amount of withdrawals in anticipation of the ap proaching interest date. Increased deposits, while not re- ported by all banks, were general throughout the district. Compared with July 1, 1922, a gain of 12.3 per cent was shown, Michigan banks reporting the largest gains. The average account on July 1 was 1.6 per cent greater than on June 1, and 3.2 per cent greater than a year ago. IN D E X NUMBER OF SA V IN G S DEBITS TO IN D IVID U AL ACCOUNTS The volume of payments by checks drawn on clearing house banks in the district during June was somewhat less than May, but this was largely because of the decrease in Chicago. In the four larger centers, the decrease from May was 3.5 per cent, while the twenty smaller centers showed a 4.0 per cent gain. In 1922, June showed an increase of 5.9 per cent over May for the larger centers and 3.5 per cent for the smaller. The volume continues considerably higher than for cor responding periods last year. VO LUM E OF P A Y M E N T BY C H EC K Checks D r a w n on Clearing House Banks, Seventh Federal Reserve Di str ict Based on reports to this bank as of the first of each month from 209 banks in the Seventh District. Latest figures shown July 1, 1923: savings deposits 116.8; average account 98.7. BONDS AND INVESTMENTS The strength displayed in the investment market in the early part of June was not continued throughout the month. The large amount of new offerings brought out after the successful flotation of the Austrian Loan was not readily absorbed, nor did the July 1 reinvestment de mand reach expectations. On the whole, prices have trended downward, although there has been some recovery in July from the low levels reached in June. Public utility, as well as the first mortgage real estate bonds yielding 6Yi per cent, continue in favor; high-grade railroad bonds have been in good demand; industrials and municipals, because of the large amounts placed on the market, have sagged. of dollars June, 1923: Chicago, Detroit, Milwaukee, and Indian apolis 4,122,152; other clearing centers 712,440. A G R IC U L T U R A L PRODUCTION A N D CONDITIONS All crops showed improvement on July 1 compared with a month ago, according to reports from 167 county agents representing 182,089 farmers in the Seventh Federal Re serve district. More seasonable weather is stimulating a rapid growth of corn which already has made considerable progress in overcoming the handicap caused by the back ward spring. Oats as well as wheat have shorter straw than usual, although the heads are fairly well filled. The winter wheat harvest has been delayed about three weeks, but the crop is in fair to good condition, and the govern ment estimates indicate a production for the district even greater than a year ago. The oats crop although larger than in 1922 is considerably below the five-year average. There has been a goodly supply of small fruits but the crops of apples, peaches, and pears are indicated as below a year ago. A smaller acreage o f potatoes has been planted in this district than in 1922, according to reports direct to this bank. County agents in Michigan report the bean and sugar beet crops in good condition, with the acreage of both increased over a year ago. The Bureau of Agricultural Economics on the basis of the July 1 condition forecasted a production of 940,354,000 bushels of corn, 493,073,000 bushels of oats, and 82,309,000 bushels of wheat for the district. This compares with 984,328,000 bushels of corn, 461,600,000 bushels of oats and 78,175,000 bushels of wheat in 1922. UNITED STATES CROP PRODUCTION Estimated by the Bureau of Agricultural Economics as of July 1 In thousands of bushels C orn Forecast, 1923 ....... 2,877,437 Final, 1922 ............. 2,890,712 Average, 1917-21 .... 2,931,271 A ll W h e a t 820,628 862,091 834,801 O ats B arley 1,283,717 198,105 1,201,436 186,118 1,377,903 191,974 R ye 68,700 95,497 70,324 GRAIN M ARKETING The movement of grain from the farms and country elevators to the terminals continues to be in a somewhat limited volume. Less corn was received at interior pri mary markets during the 60 days previous to June 30 than for the corresponding period in either 1922 or 1921. Re ceipts of wheat and oats also were below those for June, 1922, but all were nominally more than in May. Shipments were less than in the previous month or a year ago. Be cause of poor export inquiry for grain and grain products Page 5 August resulting from a continuance of unsettled conditions abroad, demand shows little improvement. According to an estimate by the Bureau of Agricultural Economics, there were 35,634,000 bushels of wheat remain ing on the farms in the United States on July 1. This compares with 32,359,000 bushels a year ago and 29,838,000 bushels, the five-year average. The total American, Cana dian, and British visible supply of wheat was 100,888,000 bushels on July 7 compared with 131,584,000 in the previous month and 108,177,000 a year ago. UNITED STATES VISIBLE SUPPLY OF GRAIN Stocks in public and private warehouses at principal points o f ac cumulation at lake and seaboard points and in transit by water, in the United States, July 14, 1923. Figures supplied by the Secretary of the Chicago Board of Trade. In thousands o f bushels W heat C orn O ats R ye B arley July 14, 1923 6,708 13,518 1,040 2,547 Warehouses and Afloat............ ..23,840 578 65 1,087 Bonded .......... .......................... .. 1,195 June 9, 1923 5,246 12,220 16,366 1,211 Warehouses and Afloat............ ..31,315 ...... 669 229 923 Bonded ............................... .— . 1,991 July 15, 1922 1,264 967 Warehouses and Afloat............ ..15,309 25,652 41,190 68 516 106 Bonded ................. ..................... _ 2,156 ___ The prices of wheat and oats at Chicago trend down ward; corn prices remain firm. FLOUR PRODUCTION Operations at forty-one flour mills in the district report ing to this bank were curtailed considerably during June as shown by the ratio of production to capacity, which was at 37.4 per cent compared with 42.2 per cent in May and 41.7 per cent a year ago. The decrease in June this year is in marked contrast with rather large gains made in the two preceding years for which figures are available. Pro duction was 11.3 per cent less in June than in May and 10.4 per cent less than a year ago. Wheat flour production decreased 11.3 per cent and 10.8 per cent from May and a year ago, respectively, while flour other than wheat de creased 12.4 per cent and 4.7 per cent. Stocks of flour on hand June 30 at thirty-two mills were 15.2 per cent less than those on hand May 31; however, this decrease was not general, since eleven mills reported larger stocks. The stocks of wheat on hand again de creased, showing a drop o f 34.0 per cent since the end of May, only five mills reporting increases. June sales of flour were 15.7 per cent greater in volume and were 9.0 per cent greater in dollar amounts at fifteen mills. M EAT PACKING A good domestic demand for packing house products continues. Fifty-two meat packing companies in the United States reporting direct to this bank show an increase of 1.8 per cent in total dollar sales for June compared with May and of 6.5 per cent compared with June, 1922. Employment during the last payroll period in June was 4.9 per cent greater than a month ago. Wholesale prices at Chicago were practically unchanged in June compared with the previous month. Prices of beef, veal, and lamb were firmer; pork and mutton were easier while pork loins showed considerable decline from May. Stocks of meat in the United States on July 1 were nom inally less than in the previous month, but lard holdings increased. Inventories were in excess of those a year ago but were about 5.5 per cent less than the five-year average for July 1. Page 6 August Exporting companies report that the volume of meats and lard forwarded in June for export was less than in May. This falling off was due to seasonal causes and to unsettled conditions in Europe. Consigned stocks already abroad were indicated to be about the same on July 1 as a month ago, but there was some increase on the Conti nent and a slight falling off in the United Kingdom. R e ports show that there has been some improvement in export demand since July 1. Present continental prices are satisfactory but those in England continue to be slightly below a parity with those in the United States. M OVEM EN T OF LIVE STOCK Fewer cattle, calves, and sheep were received and slaughtered in June than in May or a year ago. The hog slaughter was less than in the previous month but was greater than in June, 1922. SLAUGHTER IN JUNE C attle H ogs Eight yards in district, June, 1923 ................ 210,819 1,084,348 Public stock yards in U. S.: June, 1923 ........................................627,190 2,814,760 May, 1923 ............................... 711,984 June, 1922 ........................................659,508 2,677,942 S heep C a lv es 206,955 110,980 816,515 368,473 3,072,396 888,189460,960 923,080 400,105 Less feeder cattle were shipped back to the farms in June than in May or a year ago; shipments of feeder sheep increased. AVERAGE PRICES OF LIVE STOCK Per hundred pounds at Chicago W C lass M e ek ended J u l y 14 1 92 3 .......... 6 .6 5 3 .0 5 1 1 .5 0 6 .0 5 7 .0 7 5 .4 0 @ 6 .2 5 N a t iv e B e e f S t e e r s ( a v e r a g e ) $ F a t C o w s a n d H e i f e r s ...... ........ C a n n e r s a n d C u t t e r s ........ ........ C a lv e s ........... .............................. ........ S t o c k e r s a n d F e e d e r s ...... ........ H o g s .............................................. ........ S h e e p ........ ................................... .......... Y e a r l i n g S h e e p ................... Lam bs ........................................ .......... 1 4 .5 5 ......... June 192 3 $ 1 0 .0 0 6 .5 5 2 .8 5 9 .3 5 6 .7 5 6 .9 0 5 .8 0 1 3 .6 5 1 5 .1 5 o n t h s of M ay 192 3 $ 9 .5 0 6 .9 0 3 .7 5 9 .1 0 7 .5 5 7 .5 5 7 .9 0 1 1 .6 5 1 4 .1 5 June 1922 $ 8 .9 5 6 .4 0 3 .1 0 9 .4 0 6 .9 0 1 0 .4 0 6 .7 5 1 0 .2 5 1 2 .1 5 BUTTER, CHEESE, EGGS, AND POULTRY More butter and cheese were made in June than in May, but production declined in the opening weeks of July. Representative creameries reporting direct to this bank show that the output of butter in this district increased 17.1 per cent over the previous month and 5.7 per cent over a year ago. June statistics of the American Associa tion of Creamery Butter Manufacturers indicate that the United States production is greater than a month ago but nominally less than in June, 1922. The June output of cheese in Wisconsin was greater than May but slightly less than a year ago. Reporting companies in the district show that the sales of creamery butter increased 25.4 per cent compared with May, 1923, but declined 10.0 per cent compared with June, 1922. At Chicago, more butter and cheese but fewer eggs were received during June than in the previous month. These products were received in greater volume than a year ago. Poultry receipts were less than in either May, 1923, or June, 1922. Prices of produce averaged lower in June than in the previous month. Cold storage holdings of butter, cheese, and eggs in the United States showed a large seasonal increase on July 1 compared with June 1, and cheese and eggs were slightly in excess of those a year ago. Inventories of poultry were seasonally less than a month ago but were considerably larger than on July 1, 1922. INDUSTRIAL EM PLOYM ENT CONDITIONS Manufacturing activity in the district as reflected by in dustrial employment conditions remains on the high level of the previous months. An increase of 1.2 per cent in industrial labor during the month of June was noted in the reports of 296 firms with an employment of approxi mately 212,000 persons. The effect of this was offset, how ever, by the change in the total man-hours of work, a decrease of 0.3 per cent being shown by four-fifths of the reporting firms. Some slackening in output was occasioned during the month by the excessive hot weather and by re pairs and inventories carried on in many of the plants. Manufacture in the total iron and steel products group slowed up somewhat during the month, especially agri cultural machinery. In this group, however, iron and steel mills as well as railway equipment shops made slight addi tions to their working forces. Railroad repair shops are employing more men and have advanced wages two cents an hour. Public utility concerns report increased wage rates as well as employment. In lumber mills, where numerous wage advances were put into effect during the previous month, a definite expansion in the volume of employment is shown for June. The heaviest gain report ed is for meat packing, where both employment and the man-hours increased over 6 per cent. In furniture and musical instruments there have been declines in number of men employed, but total hours of work show increases. Reports on labor conditions in Detroit from the Em ployers’ Association in that city show a decline of approx imately 3 per cent in the volume of employment since early in June. The Illinois Free Employment Offices re port a change from 91.0 to 99.9 applicants for each 100 jobs available. In so far as the figures reflect actual labor conditions, there was a shortage of labor in seven out of thirteen cities of Illinois, while there was a surplus in the other six. The survey of the General Advisory Board, Illinois Department of Labor, covering one-third of all manufacturing workers of that state, shows an increase of 0.6 per cent over the previous month in the number of workers, and an increase of 20 per cent in weekly earnings since July, 1922. The weekly earnings, according to this survey, now average $28.33, which is equivalent to about $1,500 a year. FUEL A N D PO W ER PRODUCTION COAL Bituminous coal production is being maintained at a constant though abnormally high rate for this period of the year. With the weekly output of the country’s mines hovering around the 10,500,000 ton level, the total output for the month of June amounted to approximately 45,644,000 tons, practically equaling the May tonnage. In the Seventh district, however, there is little evidence of recovery from the inactivity of the past few months. Most mines are still operating about one-third time, with many shut down entirely, on account of the low spot prices which prevail. Total Illinois production during June amounted to 5,404,440 tons, a decrease of 9.2 per cent from May. Anthracite is being mined at the high rate of 2,000,000 tons per week, with a total output for June o f 8,665,000 tons, or about 1 per cent in excess of the May tonnage. Cumulative production of 51,169,000 tons for the first six months of the calendar year has set a new record for anthracite mining, being some 14 per cent heavier than the average tonnage for the corresponding periods of the eight years ended 1921. The coal business in this district remains quiet. With the exception of some trade in the domestic sizes of an thracite, and in lump and furnace bituminous for threshing needs, there is little demand. Prices are on a par with demand, the high rate of production, lack of market, and improved transportation facilities contributing to the con tinued weakness of quotations. The average spot price of bituminous coals for the week ended July 9, as compiled by Coal Age, had dropped to $2.38, a decline of thirty-five cents in the past nine weeks, but during the week ended July 16, rose to $2.40. ELECTRIC ENERGY Reports to this bank from eight central station com panies in the district show a smaller output during >June than in the preceding month on account of the one less day in the month under review. The aggregate output of 495,649,416 K. W . H. was 2.1 per cent less, while the daily average output increased 1.1 per cent during June. Com pared with a year ago a gain of 15.4 per cent was shown. The load factor increased during June from 55.8 to 55.9 per cent, although there was a slight increase in the peak load demand. In June, 1922, the load factor was at 57.9 per cent. Electric energy sales to industrial users were 3.2 per cent more in June than in May, and 20.1 per cent more than a year ago. Although these sales have shown a steadily increasing trend, gains over the corresponding months last year are becoming less marked because of the more rapid rate of increase in the second quarter last year. The peak load demand during June was 74.9 per cent of the capacity of reporting companies compared with 68.2 per cent last year. The peakload demand and plant capacity were, re spectively, 19.4 and 8.8 per cent more than a year ago. M AN U FAC TU R IN G ACTIVITIES A N D O U TP U T AUTOM OBILES After three successive record months, automobile pro duction showed a decline during June. Some manufactur ers, however, increased their output and the reduction was only about 4 per cent for the aggregate. Although reports indicate a slackening in the demand for new cars during June from previous months, the high level of sales for these months is a factor in this comparison. During the first six months o f 1923 approximately 1,835,000 passenger cars were produced, an increase over the first six months in 1922 of approximately 800,000 cars or 77 per cent. Manufacturers reporting through the National Automo bile Chamber of Commerce and direct to this bank, and Page 7 August representing practically complete May production, built 337,048 passenger cars in June compared with 350,073 in May, a decrease of 3.7 per cent. Truck output decreased 5.7 per cent; manufacturers whose May output was 42,373, reporting 39,945 trucks built in June. Passenger car pro duction in June this year was 28.5 per cent and truck pro duction 57.4 per cent more than June last year, the record month of the year. Shipments as reported by the National Automobile Chamber of Commerce were less in June than in May except for those by boat, which showed a slight increase. Exports of passenger cars from the United States during May decreased slightly from those of April, both in num ber and amount. The number of trucks exported increased considerably, but the value was less than for those ex ported in April. Production of casings and inner tubes reported for fiftyseven companies by the Rubber Association of America was in excess of shipments, resulting in increased inven tories. At the close of May, inventories of casings and inner tubes owned by these manufacturers were, respect ively, 6,906,594 and 9,292,223, slightly more than two and one-half times May shipments. The American Zinc Institute reports June production and shipments of slab zinc at 42,840 and 38,686 tons, re spectively, compared with 47,347 and 43,304 tons in May. Stocks on hand increased. STOVES AND FURNACES Owing to a further decline in the volume of new orders, the shipments of stoves and furnaces for June were greater than current bookings. Deliveries increased over May and were considerably larger than a year ago. Inventories were about the same on July 1 as a month previous. Pro duction as measured by operations in the moulding rooms was 15.2 per cent nearer capacity than in June, 1922, but fell off 1.0 per cent from May, 1923. The total number employed during the last payroll period in June was 4.5 per cent less than for the corresponding period in May. Cancellations of orders were indicated to be about 10 per cent of the new business accepted during June. PERCENTAGE CHANGES IN JUNE FROM PREVIOUS MONTHS Based on dollar values and compiled from direct reports to this bank N u m b e r of C o m p a n ie s Shipments ............................. Orders accepted ................. Cancellations ......................... Stocks on hand.—l.............. 20 15 8 14 M ay 1923 N u m b e r of C o m p a n ie s J une 1922 + 6.5 — 40.5 — 9.2 — 0.3 20 14 9 14 +65.7 — 10.1 — 13.8 + 5.8 CASTINGS AGRICULTURAL M ACHINERY AND EQUIPMENT The consumption of raw materials in June by casting foundries in the district was not quite so great as in May. Shipments fell off but were more than the average for the first five months in 1923. Employment during the last payroll period in June showed a decrease compared with the previous month. The aggregate sales in dollars during June of 114 agri cultural machinery and equipment manufacturers in the United States reporting to this bank were 0.4 per cent greater than in May. June sales of these companies repre sent 81 per cent of the monthly average of the total pro duction for 1921 reported by the Census Bureau. The increased sales in June resulted from the larger sales of threshing machines, tractors, barn equipment, feed-cutting and feed-storing equipment, and wagons, although reports from the different divisions of the industry did not indicate the same trend for all companies as a number in these groups reported smaller sales. There was a seasonal de cline in the sales of tillage tools. Domestic sales during the month were 3.4 per cent greater than in May, while foreign sales which represented approximately 15 per cent of the total sales, were 14.1 per cent less. Employment statistics indicating the rate of production in June show that operations were 63.4 per cent of the June normal compared with 66.1 per cent in May of the normal for that month. The decrease in relative productive activity was 4.1 per cent during the month. Preliminary returns show that sales of agricultural pumps were slightly less during June than May, but were approximately 7 per cent greater than a year ago. PERCENTAGE CHANGES IN JUNE FROM PREVIOUS MONTHS Compiled from direct reports to this bank Mo. Av. N u m b e r of C o m p a n ie s Pig iron consumed............... 26 Iron scrap consumed........... 26 Steel scrap consumed ..... 26 Total tonnage consumed..... 26 Castings shipped (tonnage) 25 Castings shipped (dollars).. 23 M ay 1923 — 2.4 — 27.9 — 0.6 — 3.7 — 1.0 — 2.4 N u m b e r of C o m p a n ie s 1 st F ive M onths 1923 22 + 22 22 22 20 20 — 28.1 — 3.0 — 3.5 + 8.4 + 12.6 3.0 IRON, STEEL AND OTHER METALS The production of pig iron and steel continued in good volume during June, although there was a slight recession from the record output in May. Shipments, however, were in excess of new business. Specifications on orders already booked continue to be received and these accumulated re quirements are sufficient to keep the steel mills busy for some months. Unfilled orders held by the United States Steel Corporation showed a further decline at the end of June compared with the high point in March. The buying of steel is from diversified industries, the most active demand coming from oil companies covering their require ments for storage tanks. On account of the hot weather and a somewhat limited available supply of labor, some of the mills are planning to reduce their operations slightly during the summer months. Because of reductions in pig iron, the composite market price average of iron and steel as compiled by the Iron Trade Review continues to show a decline. Inactivity continues in the pig iron market. Some furnaces, in order to prevent a further accumulation of inventories, are cur tailing their output until there is an increase in the melt. Page 8 August According to reports from a number of manufacturers, the demand for machinery and equipment was somewhat slower during June than in the preceding months owing to their advancing prices and to the general low prices paid the farmer for his products. This condition was found in all divisions of the industry. Prices of raw mate rial were practically the same as in May. Collections were reported good by several manufacturers. CLOTHING AND TAILO RIN G INDUSTRY While production in the tailor-to-the-trade industry of the district was maintained at a fairly high level during the month o f June, current returns reflect the usual sea- sonal decline in activity which begins at this period. O r ders and shipments fell off approximately 28 per cent during the month but were considerably in excess of last year’s business. In the ready-made industry orders for fall and winter garments indicate a steadily increasing demand, especially for the better grades of merchandise. PERCENTAGE CHANGES IN TAILORS-TO-THE-TRADE Number of firms reporting.............................................. .................. 14 Orders for suits compared with— (a) May, 1923... — 28.4 (b) June, 1922............................ +4S.S Number of suits made as compared with— (a) May, 1923..... — 28.2 (b) June, 1922...................................................................................... +44.8 Number of suits shipped as compared with— (a) May, 1923...... ............................................................................ _... — 28.2 (b) June, 1922................................................................................ +44.6 RAW W O O L AND FINISHED W OOLENS Inactivity—partly due to seasonal influences— continues in the raw wool markets. Reporting dealers in the district show a falling off in sales for June compared with May. Previous to the opening of the light-weight season, pur chases of raw material by woolen manufacturers have been held at a minimum. Although quotations are unchanged, some sales of raw wool have been made at reductions of 5 to 10 per cent from prices prevailing in April. It is reported that consignment warehouses in Chicago and in the East have been advancing substantial amounts on wool consigned to them. There has been but little recent trad ing in western states; growers that have not already marketed their clip prefer to consign their better grade wool rather than to sell at the lower prices in conformity with buyers’ ideas. At Chicago, the June receipts of raw wool exceeded shipments. Both receipts and shipments were more than in May but less than a year ago. W oolen mills in the district reporting direct to this bank show a slight decline in production, but their sales for June were about the same in volume as in May. Some of the companies report that retailers are very conservative in their purchases, and because of an easier price tendency some revisions have been necessary. An increase in the amount of cancellations is reported. SHOE MANUFACTURING, TANNING AND HIDES Unfilled orders, production, and shipments declined in June compared with May, according to direct reports from shoe manufacturers in the Seventh district. Inventories on July 1 were less than a month ago, because of shipments being 6.1 per cent greater than the month’s production. Twenty-four of the companies had stocks on hand equal to 92.8 per cent of their shipments during June. Twentythree concerns on July 1 had unfilled orders equal to 189.8 per cent of their June shipments. Employment increased slightly over the previous month. BUILDING M ATER IAL A N D CEMENT Cement operations in the district during June were at practically the same high level as during the previous month. With stocks very low, manufacturers have been finding difficulty in supplying the demand and prices have shown a tendency to advance. Plants report that the pros pects are favorable for the next four or five months. According to the Geological Survey report, stocks for the entire country were 9 per cent below those of the pre- PERCENTAGE CHANGES IN JUNE FROM PREVIOUS MONTHS B a s e d on p a ir s a n d c o m p i l e d f r o m d i r e c t r e p o r t s to th is ban k N u m b e r of C o m p a n ie s Production ........................... Shipments ....... ................. Stocks on hand.................... Unfilled orders on hand.. 28 28 21 22 M ay 1923 — 7.7 — 1.9 — 3.7 — 15.8 N u m b e r of C o m p a n ie s 28 28 20 19 J une 1922 + 10.5 + 31.5 + 14.2 + 10.1 Preliminary reports from the Bureau of Census for June indicate that the total boot and shoe production in the United States was 9 per cent less than in May. Direct reports from tanners show that the district leather production for June was nearly equal to the previous month, but sales declined. The falling off in sales was due partly to recent declines in prices of green hides and skins and partly to the nearness of the annual vacation and July inventory period in the; shoe industry. Prices of staples, sole, and unseasonable kinds of leather trend slightly downward, but other grades are unchanged. A greater volume of trading in the last week of June compared with the opening weeks resulted in more packer green hides being sold at Chicago than in May. Reporting tanners in the district show their volume of June purchases to be about the same as in the previous month. There was practically no change from May in the total shipments of green hides and skins from Chicago, despite a falling off in the sales of calf skins. The sheep skin market re mained inactive. FURNITURE Seasonal conditions were largely responsible for the further decline shown by the furniture industry of the district during the month of June. Orders and shipments fell off slightly, while the volume of unfilled orders shows little change from the preceding month. The mid-year markets at Chicago and Grand Rapids are reported well attended, with buying fairly active and the better grades of furniture in demand. The scarcity of skilled labor con tinues to limit the capacity of many factories. Collections are reported about on a par with those of May. BOXES AND CONTAINERS Business in the box and container industry of this district during the month of June was marked by a slight reaction from the activity of the last few months. Sales and pro duction dropped about 1 per cent below the May figure, with eight reporting firms averaging 73.3 per cent of or dinary capacity. While the present rate of production is only slightly in excess of last year’s activity at this sea son, sales are still more than 53 per cent heavier than June, 1922. In the wooden box division of the industry sales show an increase of 0.6 per cent during June, as compared with May, while production declined 7.1 per cent. CONSTRUCTION ACTIVITIES vious month and 14 per cent less than the stocks of a year ago. Production and shipments during the month fell off by 4 and 7 per cent, respectively; while for the six months ended June 30, production has been 33 per cent and shipments 30 per cent heavier than during the cor responding period of 1922. LUMBER The general tendency within the lumber industry seems to be to clear out any accumulated stock before making Page 9 August further purchases. According to a majority of the reports received for this district in June, buying continued cau tious and was mostly for immediate needs and not very large in volume. Sales in general were below the previous month, although conditions have not been uniform. W hile one of the large Chicago firms with a number of distrib uting yards has experienced a steady demand for both building and industrial purposes during the last two months, another big lumber dealer outside Chicago reports that business has fallen off as much as 50 per cent from the earlier activity. Manufacturers appear to have maintained their output and lumber mills and woodworking industries report in creased employment as well as payrolls. A recent report from the Northern Hemlock and Hardwood Manufactur ers’ Association gives the average daily wage for common labor at the mills as $3.32 in June as compared with $3.17 in May and $2.78 last December. Swampers average $46.25 a month with board as against $44.06 in May and $40.59 in January. This association also reports that the demand for hemlock has declined while the hardwood situation is improving. The June report from the Maple Flooring Manufactur ers’ Association shows that production is beginning to fall off and for the first time this year is below the figures for a year ago. New orders have been declining for the past three months, and while unfilled orders are still about 50 per cent larger than the stocks on hand, they are 18 per cent lower than in May and only 8 per cent larger than a year ago. Prices for all grades of maple flooring were lower than at the beginning of the month. BRICK CONTRACTS AND PERMITS Building operations continued on a large scale through out the district during June although some slowing down of work was occasioned by labor disputes and the readjust ment of wages. Contracts awarded totaled $83,007,289, the highest valuation for any month this year and 18 per cent larger than for the previous month. The best show ing for the month was made by Indiana which more than doubled the value of contracts awarded and by Illinois which practically maintained the record figure reached in May. Wisconsin shows a decline from the high point made the previous month while Iowa and Michigan have been slowing down since April. Residential valuation fell off in every state of the district except Illinois, the total decline for the month amounting to 14 per cent. Permit figures have been showing a steady decline since April. For fifty cities reporting in this district, the esti mated cost was 27.2 per cent less than in May and 11.6 per cent below that of June, 1922. The larger cities of the district fell off by heavy percentages, Chicago experiencing a loss of 45 per cent. For the first six months of the year, the accumulated value of the contracts awarded in this district has been 13.7 per cent larger than the corresponding value for 1922 and the building permits issued in fifty cities has been 54 per cent larger. The accompanying chart shows that the percentage gain for 1923 in comparison with 1922 is not as great now as it was earlier in the year. Permits were at their highest proportionate value in April while con tracts reached this point at the close of the first month of the year. C U M U L A T IV E B U ILD IN G V A L U A TIO N S , S E V E N T H D IS TR IC T Comparison of 1923 w it h 1922 Conditions in the brick industry at the close of June were very similar to those of the month before, especially in the Chicago territory. Brick plants around Chicago continue to operate at full capacity, requirements are still heavy, and stocks have had little chance to accumulate. One com pany, however, out of those reporting for this territory, states that orders are coming in more slowly and that un filled orders are being reduced. A Michigan plant, on the other hand, finds that demand is increasing rather than diminishing, and that bricks are being shipped as fast as they can be manufactured. The dull condition noted the previous month for the state of Iowa still prevails. Iowa plants that have been supplying Minnesota cities with face bricks are feeling the effect of a curtailment of building operations in that state and are consequently cutting down their production. One more plant is now closed down in the Mason City district, leaving seven plants in operation. Ratio of cumulative valuation from beginning of 1923 to end of month indicated to that for corresponding period in 1922. Contracts awarded based on reports of the F. W. Dodge Co. Permits based on reports from 50 cities direct to this bank. Latest figures shown June: permits 153.7; contracts award ed 113.7. M ERCHANDISING CONDITIONS W H O LESA LE TRADE June returns from wholesale dealers reflect the activity usual at this time of year for the various lines: hardware, automobile accessories, and drug sales averaged about the same volume as in May; groceries showed an increase of nearly 14 per cent, largely seasonal; and in dry goods, fill-in orders to meet hot weather requirements were fea Page 10 August tures in offsetting the decline of the previous month. Sales comparisons with June, 1922, indicate better indi vidual business this year for about two-thirds of the firms, although hardware returns aggregated the only gain above 10 per cent. Cumulative sales since January 1 are ahead of a year ago in all commodities except shoes, with increases ranging from 10.4 per cent for groceries to 31.6 per cent in automobile accessories. Except for groceries, however, none of the gains are as large as for the first quarter of the year, the spread between 1923 and 1922 sales for the others having diminished fairly consistently each month since the beginning of the year. In shoe sales the last three months have shown declines, although that for June is the smallest. The majority of firms in each group except automobile accessories reduced their stocks during the month, grocer ies showing the most general decreases as well as the largest in the aggregate. Compared with June 30, 1922, forty-six dealers out of sixty-one reported higher inven tories this year. In collections hardware dealers averaged the largest gain over last year, with, however, nearly as heavy an increase in outstanding accounts. Automobile accessory firms fol low with 16.9 per cent and 13.7 per cent gains, respectively. Other groups vary in collection comparisons from 4.6 per cent increase for drugs to 14.5 per cent for dry goods; and in outstanding accounts from 1.9 per cent decline for shoes to 11.2 per cent gain for dry goods CHAIN STORE TRADE O f eight chain stores reporting June sales to this bank, all but one made gains over the corresponding month of 1922. The average increase, however, was somewhat lower than the 30 per cent gain shown last month. Sales for half the firms were larger than during May, and for twowere the heaviest this year. M AIL ORDER TRADE June sales by Chicago’s two leading mail order houses increased over a year ago by 27.7 per cent which is a smaller gain than for earlier months of 1923. Six months total sales were 37.7 per cent ahead of last year. DEPARTMENT STORE TRADE In contrast to the seasonal declines of previous years, department store sales this June were heavier than in May — a fact partly accounted for by the late summer weather. Contributing to the aggregate gain were the majority of reporting firms in most of the larger cities in the district, together with about half of the firms in the outside group. Compared with June, 1922, all but six stores showed in creases amounting for the whole district to 17.9 per cent, which is the third largest gain this year, and somewhat above the six months average. Comparison with the cor responding month of 1921 is the most favorable so far this year. With few exceptions, stocks held June 30 were lower M O N T H L Y BUSINESS STATISTICS ASSEMBLED No. of June Firms 1923 Freight Carloadings — (United States)— Grain and Grain Pro87.6 ducts .................................. 90.9 Live Stock ............................ 112.7 Coal ........................................ Coke ...................................... 160.2 135.1 Forest Products ................... Ore ......................................... 210.5 Merchandise and Mis123.9 cellaneous .......................... Total ..................................... 123.7 May 1923 June 1922 May 1922 88.7 95.3 111.3 164.9 133.0 157.7 100.4 87.1 56.8 101.6 107.4 139.0 108.4 88.3 50.1 94.9 105.9 44.1 126.4 122.4 117.5 103.2 115.1 96.4 than at the beginning of the month, while the increase over the preceding year of 8.5 per cent was the smallest since December, 1922. The large majority of returns show col lections ahead of a year ago; heavier outstanding accounts were reported by only two-thirds of the firms. The ratio of collections during each month this year to accounts re ceivable the first of the month for thirty-four identical firms has been slightly higher than the corresponding per centage in 1922. TRANSPORTATION The million-car-a-week record reached on May 26, con tinued during June, with the exception of the week ended June 2 which showed 932,041 cars loaded. This drop may be attributed to the observance of Memorial Day through out the country. The peak came for the week ended June 30 when 1,021,770 cars were loaded. This figure exceeded the previous record week of October 14, 1920, by 3,231 cars. Total carloadings for the six months period ended June 30, 1923, increased 19.9 per cent over the 1922 figure covering the same period, and 28.5 per cent over 1921. Ore ship ments, which increased 33.5 per cent over May and 303.3 per cent over April, have been a decided factor in main taining the high average of the month. During the week ended June 23 there were 82,041 cars of ore loaded, an in crease of 2,743 cars over the previous week, 18,343 cars over the same week last year, 53,088 cars over the corres ponding week of 1921, and only 2,748 cars less than the peak week of September 17, 1920. During the week ended June 30 there were 185,757 cars of coal loaded. This was an increase of 2,407 cars over the previous week and 91,488 cars over the same week a year ago when there was a re duction in loadings caused by the miners’ strike. Com pared with the same week in 1921, there was an increase of 28,644 cars. Despite the high level of carloadings during the last few weeks, the reported car shortage continues to decline, while surplus freight cars in good repair and available for service June 30 were 63,636, an increase of 4,965 cars over the previous week. Fewer cars are in need of repair than at any time since January, 1921; on July 1, the percentage to total cars was 8.4 compared with 9.5 on January 1, this year. On July 1, 18 per cent of the locomotives were in need of repairs compared with 24 per cent on January 1. Up to June 15, 1,863 locomotives had been repaired and placed in storage awaiting heavier traffic demands. This figure represents an increase of 294 in storage since the first of June. New locomotives placed in service from January 1 to July 1, this year, totaled 1,998. B Y FEDERAL RESERVE B A N K OF C H IC A G O No. of Firms Movement of Grain at U. S. Interior Primary Markets(Average monthly receipts 1919=100) Receipts: Oats .................................... Corn .................................. Wheat ................................ Shipments: Oats .................................... Corn .................................. Wheat ................................ June 1923 May 1923 June 1922 May 1922 74.4 97.5 58.2 67.7 72.3 55.8 90.4 210.3 62.9 102.4 179.6 91.4 78.5 75.9 52.8 81.4 102.8 64.2 111.2 126.6 69.9 124.9 167.8 80.8 Page 11 August M O N T H L Y BUSINESS STATISTICS ASSEMBLED B Y FEDERAL RESERVE B A N K OF C H IC A G O Continued No. of June Firms 1923 May 1923 Employment— Iron and Steel Products: 91.7 91.8 Number Employed..... 56 90.9 89.9 Amount of Payroll.... 56 All Industries: 98.7 97.5 Number Employed.....296 Amount of Payroll....296 113.7 114.5 Meat Packing— (United States)— 93.2 Sales (in dollars)........... 62 96.6 (Monthly Average, 1920-1921=100) Iron and Steel— Pig Iron Production: 152.8 160.1 Illinois and Indiana......... 151.8 143.9 United States.................... Steel Ingot Production 129.7 145.2 (U. S.) .............................. Unfilled Orders U. S. 106.5 116.5 Steel Corp...................... Automobiles— (United States)— Production: 253.4 Passenger Cars................. 244.0 163.9 Trucks ................................... .154.5 Shipments (Monthly A v erage, 1920=100) : 193.8 216.1 Carloads ............................ 158.4 146.5 Driveaways ...................... Boat (Base Figures [1920], partly esti 398.0 377.5 mated) ............................ Stoves and Furnaces— 86.2 Shipments (in dollars)— 18 83.7 Agricultural Pumps— (United States)— Shipments (in dollars)—. 20 113.3 114.1 Furniture (Monthly average 1919, 1920, 1921=100)— 125.3 118.6 Orders (in dollars) ..... 13 145.6 Shipments (in dollars).. 13 123.6 June 1922 May 1922 75.8 63.0 72.3 58.8 86.0 96.2 81.8 91.4 88.5 86.7 112.6 92.7 113.8 90.6 108.3 111.4 94.0 87.7 189.9 98.1 167.8 89.7 163.6 86.3 159.7 73.5 228.1 218.3 56.6 54.7 104.2 94.4 131.3 110.0 114.9 111.8 (Monthly average of mean o f production and shipments in 1919 = 100)— Production (in pairs)... 37 Shipments (in pairs).... ...37 Electric Energy— Output of plants (K W H ) ....................... .. 10 Industrial Sales (K W H ) .................... .. 10 Flour Production— (In barrels) ................... . 45 Stamp Tax Collections— (First Illinois Internal Revenue District)— Sales or Transfers of Capital Stock.................... Sales of Produce on Exchange— Futures .............. 148.5 157.2 160.8 160.2 133.1 123.2 126.0 119.6 142.4 145.5 133.1 122.8 169.3 164.1 140.6 130.5 72.0 80.8 80.5 69.8 117.5 229.5 103.8 107.9 68.2 77.5 66.7 76.0 No. of June Firms 1923 Boxes and Containers— Sales (in dollars)........... 6 117.8 Boxboard Consumption 98.1 (tons) ......................... 6 Building ConstructionContracts Awarded (in dollars): Residential ................. __ 144.8 Total ............................ 151.0 Permits: Chicago— Number .................. 220.9 Estimated Cost ..... 203.7 Indianapolis— Number .................. 224.8 178.7 Estimated Cost..... Des Moines— Number .................. 224.5 155.8 Estimated Cost....... Detroit— Number .................. 202.4 Estimated Cost....... 140.7 Milwaukee— Number .................. 231.6 169.5 Estimated Cost....... Forty-five Other Cities— Number ................. 233.2 225.4 Estimated Cost....... Total— Fifty Cities— Number .................. 223.9 189.8 Estimated Cost....... Wholesale Trade— Net Sales (in dollars): 91.9 Groceries .................... 39 Hardware .................... 20 124.6 Shoes .......................... 12 64.9 Drugs .......................... 13 106.5 Dry Goods .................. 12 85.4 Automobile Accessories ...................... 7 91.1 Retail Trade (Depart ment Stores)— Net Sales (in dollars): 142.7 Chicago ...................... 9 Detroit ........................ 6 140.2 Des Moines ............... 3 123.6 Indianapolis ................. 3 159.7 Milwaukee .................. 3---------------------Outside ....................... 40 110.3 Seventh District .................. 64 131.9 Retail Trade (United States)— Department Stores........ 306 121.9 Mail Order Houses....... 4 86.2 Chain Stores: Grocery ..................... 21 164.3 8 Drug ........................... 148.4 Shoe ............................ 5 139.3 155.1 Five and Ten Cent... 4 4 97.3 Music ........................... 136.3 Cigar ........................... 3 May 1923 June 1922 May 1922 116.2 74.6 68.4 97.8 85.5 72.2 168.8 127.8 175.4 141.1 152.9 129.4 271.4 370.8 258.8 306.1 231.9 311.3 291.3 263.1 213.0 214.8 289.5 320.8 284.3 237.2 219.6 354.6 259.8 199.0 247.7 187.6 160.3 119.6 170.0 204.6 265.9 242.1 209.6 203.6 244.0 155.2 308.1 210.4 193.4 192.8 244.8 156.7 280.3 260.8 195.8 214.7 230.0 225.5 76.0 129.5 55.1 107.9 78.7 84.5 108.3 70.4 100.3 80.7 73.1 109.5 72.1 98.7 76.9 91.4 83.5 73.4 136.3 137.8 116.4 156.8 123.0 115.2 104.9 140.8 H I.5 94.2 111.0 119.0 125.2 106.0 144.7 116.1 101.4 117.5 126.2 95.4 108.2 68.8 115.4 69.9 177.2 141.5 140.0 154.6 105.3 136.5 136.7 123.8 121.7 127.0 81.3 123.4 137.9 123.2 126.9 129.6 80.9 128.8 ' 112.7 130.6 Index numbers express a comparison of unit or dollar volume for the month indicated, using the monthly average for 1919 as a base, unless otherwise indicated. Figures for latest month shown partly estimated on basis of returns received to date. Data refer to the Seventh Federal Reserve District unless otherwise noted. The following are sources of data used in obtaining the index numbers in cases where they are not based on direct returns to this bank: Iron and Steel— Iron Age, Iron Trade Review, and Steel and Metal Digest; Automobile shipments— National Automobile Chamber o f Commerce; Freight Carloadings— American Railway Association; Retail Trade, United States— Federal Reserve Board; Movement o f Grain— Howard, Bartels & Co., Daily Trade Bulletin. Page 12 August
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