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B usiness C onditions
R eser v e
DISTRICT
S eventh
F ederal
MONTHLY REVIEW PUBLISHED BY THE
FEDERAL RESERVE BANK OF CHICAGO
Volume 7, No. 1
January 1, 1924
BUSINESS CONDITIONS IN THE UNITED STATES
RODUCTION of basic commodities and factory
employment decreased in November. Distribu
tion of merchandise by wholesalers and retailers
was somewhat less active and wholesale prices
showed a slight further recession.
P
PRODUCTION— Production in basic industries
decreased about 2 per cent in November. The de
cline was due chiefly to reduced production of iron
and steel, and smaller sugar meltings. The Federal
Reserve Board’s new index of factory employment
which is shown by the accompanying chart also
declined, due to lessened activity at iron and steel
plants and large seasonal reductions at clothing es
tablishments. The volume of employment is now
2 per cent smaller than in the spring but 3 per cent
larger than a year ago. Contract awards for new
buildings were smaller in November than in Octo
ber in all reporting districts except New York but
were 20 per cent larger than a year ago.
Final estimates by the Department of Agriculture
show larger yields of corn, oats, tobacco, and cotton
than in 1922, and smaller yields of wheat, hay, and
IN D E X OF PRODUCTION IN
BASIC IN D U S TR IE S
Combination of 22 Individual Series
Corrected for Seasonal Variation
IN D E X OF EM PLOYM ENT IN
M AN UFA CTU RING IN D U STR IE S
potatoes. The total value of agricultural produc
tion at December 1 prices was 12 per cent larger
than in 1922. Each of the ten principal crops except
wheat showed an increase in value.
TRADE— Railroad freight shipments in Novem
ber showed about the usual seasonal decline from
October but were in heavier volume as compared
with previous years. Wholesale trade was 13 per
cent less in November than in October, which is
more than the usual decrease at this season, but
sales continued to be slightly larger than a year
ago. Sales of hardware, drugs, and meat were larger
than in November, 1922, while sales of shoes were
smaller. Retail business was smaller than in Oc
tober in most lines. Sales of mail order houses de
clined more than sales of department stores, but
were 11 per cent larger than a year ago.
PRICES—The Bureau of Labor Statistics
index of wholesale prices declined in November
to a point 4 per cent lower than last spring
and about 3 per cent lower than a year ago.
The chief reductions occurred in prices of
PRICES— IN D E X NUM BER OF
W HOLESALE PRICES
U. S. Bureau of Labor Statistics
Base adopted by the Bureau of Labor
Statistics.
Latest figure November,
1923: 152.
Compiled December 27, 1923
BANK CR ED IT
800 Member Banks in Leading Cities
investments 4,472 m illion; demand
deposits 11,252 m illion; time deposits
4,059 million.
animal products, fuel, and house furnishings. Prices of
clothing and crops, on the other hand, increased and the
latter group averaged higher than in any month since 1920.
During the first half of December prices of sheep, beef,
sugar, cotton, silk, and rubber declined, while quotations
on crude oil, wheat, and wool were slightly higher.
BANK CREDIT—The total volume of credit extended
by member banks in leading cities showed but little change
between the middle of November and the middle of De
cember. A seasonal reduction in commercial and agricul
tural loans in most districts was accompanied by increased
loans on securities, with the result that total loans re
mained practically constant.
During the same period borrowings at the Federal Re
serve banks were also practically unchanged. Holdings
of acceptances increased somewhat, partly in connection
with the financing of cotton exports. The increased de
mand for currency for holiday trade was reflected in both
a moderate expansion in Federal Reserve note circulation
and a reduction in gold certificates held by the reserve
banks. Rates on commercial paper sold in the open mar
ket continued to show an easier tendency, as indicated by
increased sales at 4$4 per cent, particularly in interior dis
tricts. The December issues of one year 4Y\ per cent and
six months 4 per cent treasury certificates, compared with
4% per cent on a six months issue sold in September, were
largely over-subscribed.
EXPLAN ATO R Y NOTE— This month we present for
the first time a chart showing the new index of employ
ment in manufacturing industries, compiled by the Federal
Reserve Board’s Division of Research and Statistics. Wide
industrial and geographical representation in the com
position of the index is obtained by using data collected
by a number of Federal and state agencies covering thirtythree separate industries, which are grouped into ten gen
eral classes, as follows: metals; textiles; lumber; vehicles;
paper and printing; food; leather; stone, clay, and glass;
tobacco; and chemicals. The final index and each of the
ten group indexes were obtained by combining the thirtythree individual industry series, weighting them in accord
ance with their relative importance as determined by the
number employed according to the census of manufactures
of 1919 and 1921. The index is expressed in terms of per
centages with the monthly average for 1919 as the base,
i. e., 100 per cent. It is so constructed that its movements,
although they do not measure the total volume of employ
ment, reflect increases or decreases in this volume. No
correction was made for normal seasonal variations, be
cause, although these fluctuations are noticeable in in
dividual industries, they vary as to time and degree and in
the final index largely offset each other. A full descrip
tion of the data and methods used in compiling this index
and of the results obtained was published in the December
issue of the Federal Reserve Bulletin.
BUSINESS CONDITIONS IN THE SEVENTH RESERVE DISTRICT
S U R V E Y of current reports to the Federal Reserve
Bank of Chicago indicates on the whole a slackening
in business activity throughout the Middle West. Much of
this is seasonal, such as the slower operations at automobile
plants and in other manufacturing industries, the decreases
in the movement of live stock and in the factory output of
dairy products, and the curtailment in building and con
struction with the attendant declines in allied industries.
Seasonal factors were also evident in the November reduc
tion in freight carloadings and in wholesale distribution.
For the falling off in retail sales, however, the unusually
mild weather conditions were largely responsible, which
also exerted an unfavorable influence on the coal markets.
A
W ool and hide markets during November, on the other
hand, were more active, and the revival in pig iron buying
was perhaps the most striking development of the month,
although its production as well as that of steel ingots fell
to low points for the year.
CREDIT AND FINANCE
While the announcements of extra dividend disburse
ments have stimulated a better market sentiment, these
factors have not resulted in any noticeable relaxation of
conservative control in business and banking operations.
With the approach of the inventory season a tendency
toward lessened activity has manifested itself in many lines,
though the general credit position remains unchanged from
conditions a month ago and justifies a belief that the situ
ation at bottom is sound. Heavy buying with the approach
Page 2 January
of the Christmas season has largely offset earlier inac
tivity in retail trade, mainly the result of mild weather,
coupled with rain and bad roads in many rural sections of
the district.
Conditions in the agricultural sections are much better
than a year ago, and during the autumn months the move
ment toward a better situation has been quite general.
Credit demand on country banks has been steady, particu
larly for purchases of feeding cattle, and little liquidation
has yet taken place, though some grain and considerable
live stock, particularly hogs, have moved off the farms
during recent weeks. The continued shipment of light
weight hogs probably has been influenced rather extensively
by the desire of farmers to reduce their droves lest cholera
later reduce potential income from this quarter.
Loans to member banks in agricultural sections of the
district by the Federal Reserve bank have shown a general
upward trend for several weeks, and a similar tendency has
been shown in loans and discounts of reporting member
banks, though there are general indications that many banks
are caring for the needs of their customers with less ex
tensive recourse to the Federal Reserve bank. Total debits
to individual accounts in the district declined from October
because of fewer business days in the month and a national
holiday, the daily average in November showing an in
crease over the preceding month. Savings in the district
have increased in volume steadily during the fall; reports
from banks representing approximately 40 per cent of the
savings deposits in this district showed a gain of 1.1 per
cent in November over the preceding month.
Business Failures—The number of business failures in the
Seventh district, according to Dun’s Review, were 10.5
per cent in excess of casualties in October, and liabilities
involved increased 34.3 per cent. In October the percent
age increase in number over September was 20.9 per cent,
but liabilities shrank 20.8 per cent. For the entire country,
however, the number gained only 1.9 per cent in Novem
ber, while liabilities were less by 36.6 per cent.
Commercial Paper— Sales of commercial paper in Novem
ber declined 7.2 per cent from those in October, but re
mained at a slightly higher level than in November, 1922.
Demand for paper is variously reported by dealers as
light, fair, and active, the prevailing condition being fair.
Lack of uniformity is also shown in the statements con
cerning supply; a number of dealers report a slight better
ment, others find the supply being curtailed. According to
several dealers, rates show an easing tendency; a decrease
of % per cent in the prevailing rate in October having
taken place in November.
On a weekly average basis, the volume of bills pur
chased by six bill dealers reporting to this bank increased
18.9 per cent in the four-week period ended December 12
from those bought in the previous five-week period. Aver
age weekly sales increased to practically the same extent,
although this does not take into account large transfers
made by one firm to its other offices. Bills held at the
close of the period totaled $7,334,216, which compares with
$7,637,584 at the close of the previous period. Rates for
short term paper, which was in best demand, remained
practically stationary; rates on longer term paper showed
a slight easing tendency.
Acceptances— The volume of bills accepted in November
v/as 95.0 per cent greater than reported in October by
twenty-seven banks. Although this large increase was
shown in the aggregate amount, three banks reported de
creases and twelve banks no acceptances executed. This
signal increase was accompanied by a volume of bills
bought during the month, larger by 150.6 per cent than in
October; and those sold increased 105.9 per cent. Bills
held at the close of the month were 9.4 per cent in excess
of those held at the close of October. The liability of
these banks as acceptors increased 28.1 per cent, in contrast
with the slight decrease noted in October. In November a
further lessening was shown in the volume of their own
acceptances held by these banks.
Bankers’ acceptances purchased by the Federal Reserve
bank in November were in practically the same volume as
in October, remaining at 22 million. There were no sales
from holdings in November; and holdings at the close of
the month were 39 million as compared with 37 million
at the close of October.
AGRICULTURAL FINANCING
The loans outstanding of twenty Joint Stock Land banks
operating in the five states lying largely in the Seventh
district aggregated $141,356,881 on November 30 as com
pared with $140,418,427, October 31. This increase of
$938,454 compares with an expansion of approximately
2 million dollars in each of the four preceding months.
The four Federal Land banks covering the same territory
showred aggregate loans outstanding November 30 as
$121,558,090, an increase of slightly over 2 million above
the figure on October 31. This is approximately the same
rate of increase as has been shown for several months by
these banks.
Reports of the four Federal Intermediate Credit banks
on operations within states lying wholly or partly in this
district reflected an increased volume in loans outstanding
on November 30, amounting to $418,688, compared with
$271,566 in loans by three banks October 31, an increase of
$147,122, of which $10,406 represents the loans of one in
stitution added to the reporting list during November. On
October 31 the increase over September 30 had been
about $84,000.
The tabulation below indicates the distribution by states
of the outstanding loans of each of these three classes of
banks on November 30.
J o in t S to c k
L and B anks
F ederal
I n t e r m e d ia t e
L a n d B a n k s C r e d it B a n k s
Number of banks...................
20
Illinois ..................................... $ 39,397,801
Iowa ..................
69,999,345
Indiana ................................... 26,659,635
Wisconsin ......................
4,105,400
Michigan .....................
1,194,700
4
$ 19,035,740
40,395,850
26,477,800
20,399,700
15,249,000
4
$249,172
64,523
10,406
94,587
0
$141,356,881
$121,558,090
$418,688
Numerous bond issues of Joint Stock Land banks have
been offered recently on the Chicago market, varying but
slightly in terms from the offerings in October. The
Lincoln (Nebraska) Joint Stock Land Bank, Burlington
(Iow a) Joint Stock Land Bank, and the Central Iowa Joint
Stock Land Bank of Des Moines were on the list. An ad
ditional $10,000,000 offering of Federal Intermediate Credit
Bank 4^4 per cent six months' notes was placed on sale
by twelve underwriters in Chicago, St. Louis, Boston, and
Philadelphia. This issue brought the total of outstanding
debentures of the twelve Intermediate Credit banks in the
United States to $30,500,000, representing three-fourths of
the amount for which these banks may still call upon the
Treasury. These notes are not Government obligations,
however, but are the secured obligations of banks operating
under Federal charter with Governmental supervision.
MEMBER BANKS IN T H E DISTRICT
Loans and discounts of reporting member banks in the
district showed a declining tendency in the aggregate after
a high point November 7, for which industrial centers,
principally Chicago and Detroit, were responsible.
In
other selected cities the trend was in the opposite direc
tion, though no great expansion took place.
Reporting member banks in Chicago showed a declining
volume of holdings of Government securities, as was the
case with “ other” security holdings during recent weeks.
In Detroit holdings of Government securities have changed
little since October 24, on which date a small drop oc
curred from the report of the preceding week. Almost
negligible changes likewise took place in “ other” invest
ments of Detroit banks. In other selected cities, Govern
ment securities shrank perceptibly, a movement begun in
July, while holdings of other securities in selected city
member banks have gradually increased in amount.
Net demand deposits of Chicago reporting member banks
declined noticeably after November 14, though reports for
the first two weeks in December showed an increase, and
time deposits have moved upward since September. De
troit banks showed trends similar to Chicago in both time
Page 3 January
and demand deposits, as did members reporting in other
selected cities, except that time deposits moved slightly
downward December 12. Government deposits of Chicago,
Detroit, and other selected city banks have lowered in
volume steadily since the middle of September, following
a rise at that time incident to quarterly tax payments.
P O S IT IO N
R E P O R T IN G
M IL L IO N S O F D O L L A R S
MEMBER
CHICAGO
AND
1600
r
1400
DISCOUNTS
s
/ ' “W
1200
D IS T R IC T
r
V . LOANS
X
x
1000
BANKS, 7TH
DETROIT
: m an o deposi
/
-A A .
y *
DEBITS TO IN D IVID U AL ACCOUNTS
Fewer business days in the month and a national holi
day were mainly responsible for a decline of 5.1 per cent
in the aggregate of debits to individual accounts in N o
vember as compared with October, reported by 24 clear
ing centers in the district. The daily average in November,
however, was in excess of October. The decline in the
aggregate was less in extent than in the corresponding
month of 1922, when the drop from October was 8.7 per
cent. In the four larger cities, Chicago, Milwaukee, De
troit, and Indianapolis, the decrease this year was 4.3 per
cent as compared with a drop of 9 per cent in the same
month of 1922. In twenty smaller centers the shrinkage
from October was 9.7 per cent as against 6.5 per cent in
November, 1922.
80*0
600
400
feeding cattle as well as for grain and live stock move
ment off the farms. Borrowings of members in several
industrial centers, notably Chicago and Indianapolis, moved
downward, doubtless partially in response to a slowing
down tendency in many lines of industry with the ap
proach of the inventory season. In Milwaukee the trend
was toward expansion, though not marked, and in Detroit
no definite trend was evident.
Total earning assets followed the downward trend of
loans, purchases of bills in the open market changing little
in weekly volume. Federal Reserve notes exhibited no
established movement, and on December 19 were about 8
million in excess of the figure shown on November 21, the
corresponding reporting date in that month.
TIME DEPOSITS
1 A•
fNVESTMENT^J-A* <
____
200
0
OTHER SELECTED CITIES
400
--------------,----LOANS l DISCOUNTS
200
[TIME D E P ^ ^ "
DEMAND DEPOSITS
lINVESTMENTS
•*“
------------
O.
1919
1920
1921
1922
1925
1924
♦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. Latest figures shown, December 12, 1923.
POSITION OF TH E FEDERAL RESERVE BANK
The aggregate of loans to member banks has shown a
downward trend from the high point on October 31, though
on November 28 a figure of $114,025,000 was reached,
which was only 4 million below the peak. This, however,
was the result of operations for a few large city banks.
Loans to members moved upward in agricultural sections
reflecting the continued demand for funds for purchases of
P O S IT IO N
FEDERAL
RESERVE
BANK
VOLUM E
OF P A Y M E N T
C h ecks Dr<iw n on C le a rin g
BY C H E C K
hlo use B arik s , 7 th
D is tric t
Billions of Dolla rs
C"
Chicago, Det roit.Milwouhe !j&
Indiarlapolis
;/
O F C H IC A G O
1
n -
-Other Clea imj) Centers
-
1919
1920
1921
1922
192}
1924
Figures used are estimates for calendar months based on
weekly reports to this bank. Latest figures shown, November,
1923, in thousands of dollars: Chicago, Milwaukee, Detroit, and
Indianapolis, 3,880,297; 20 Other Clearing House Centers, 599,975.
SAVINGS ACCOUNTS AND DEPOSITS
Latest figures shown, December 19, 1923, in thousands of
dollars: Total Reserves, 564,115; Loans to Member Banks, 86,159.
Page 4 January
Savings deposits continued to increase during November,
according to reports received for December 1 from banks
representing approximately 40 per cent of the savings de
posits in this district, showing a gain of 1.1 per cent over
November 1 and 10.6 per cent over December 1, 1922.
The reason given by some banks for the former increase
was the crediting of interest due December 1. The greatest
changes during the month occurred in Illinois and W is
consin, the former state registering an increase of 1.4 per
cent and the latter 1.5 per cent over November 1. The
average account in the district on December 1 was 0.4 per
cent larger than the previous month and 1.8 per cent
greater than a year ago.
BONDS AND INVESTM ENTS
Although new financing was in smaller volume the first
three weeks in December than during the same period of
November, trading in the bond market continued on a fair
scale. Public utilities are still the most readily absorbed
bonds on the taxable list, with railroad bonds a good
second; sound industrials are regaining favor to some ex
tent, when attractively priced; and demand for municipals
continues in fair volume as compared with the demand
earlier in the year. Houses dealing in high-grade first
mortgage real estate bonds report a good investment de
mand. Price levels have remained practically unchanged.
AGRICULTURAL PRODUCTION AND CONDITIONS
Cattle on farms in the Seventh district as a whole de
creased 1.9 per cent in number on December 1, 1923, from
the corresponding date a year ago, according to direct re
ports to this bank by 146 county agents, although holdings
in Indiana were slightly greater than on December 1, 1922.
Outbreaks of hog cholera were reported by agents in Illi
nois, Indiana, and Iowa. The risk incident to holding
hogs on the farm because of the possibility of infection
later, has doubtless been an important factor in the con
tinued marketing of lightweights during November, despite
the fact that corn prices have become more favorable to
feeding than a short time ago.
The district crop of winter wheat was reported as mak
ing good progress during November and the first part of
December.
Statistics based on farm values and production estimates
as of December 1, and compiled by the Bureau of Agricul
tural Economics show the estimated value of principal
crops in the United States at $8,322,695,000 for 1923 com
pared with $7,449,804,000 a year ago.
PRODUCTION AND VALUATION OF CROPS
Compiled by the Bureau o f Agricultural Economics
In thousands, and based on prices of December 1
S e v e n t h D is t r ic t
U n it e d S tates
P ro d u c tio n
V alu e
1923
P r o d u c tio n
V alu e*
$ 725,501
$ 78,651
785,741
Wheat (bu.) .... ................. 82,965
2,222,013
Corn (bu.) ..... .................. 976,124
634,935
3,054,395
191,807
1,299,823
Oats (bu.) ....... ..................490,254
539,253
41,565
412,392
339,322
White Potatoes (b u .)....... 70,752
250,272
106,626
Hay (tons) ..... ................. 18,003
1,390,967
1922
873,412
Wheat (bu.) ..................... 77,125
83,280
867,598
580,782
2,906,020
Corn (bu.) ..... ................. 995,173
1,910,775
178,136
1,215,803
478,948
Oats (bu.) .........................474,905
453,396
35,448
263,355
White Potatoes (b u .)..... 81,714
112,013
1,319,2 77
Hay (tons) ......................... 20,677
230,755
^District value compiled by Federal Reserve Bank of Chicago.
GRAIN M ARKETING
Returns from 146 county agents representing 172,840
farmers in the Seventh district show that about 72 per cent
of the wheat produced in those counties in 1923 had left
the farms prior to December 1. Approximately 18 per cent
has been marketed since our survey of September 1, 1923.
Although these figures do not include holdings in country
elevators, they indicate that the percentage of the district
wheat crop already marketed by farmers may have been
slightly greater than normal.
The total United States, Canadian, and British visible
wheat supply was 249,962,000 bushels on December 1, 1923,
compared with 214,216,000 bushels on November 3, 1923,
and 190,545,000 bushels on December 2, 1922.
Wheat and oats were handled in November in smaller
total volume through the interior primary markets of the
United States than in October or a year ago. Receipts of
corn were greater than in either the previous month or
November, 1922. The amount of corn forwarded from
these markets although more in November, 1923, than in
October, 1923, was less than in November last year. N o
vember exports of wheat, barley, and oats were smaller
than a month previous but those of corn and rye increased.
SHIPMENTS OF FLOUR AND GRAIN FROM CHICAGO
In thousands
F lour W h e a t
By Boat
B b ls.
Lake Season, 1923.....
995
Lake Season, 1922............ 737
By Rail
11 Months, 1923......
7,360
9,417
11 Months, 1922..........
C orn
O a ts
R ye
Bu .
17,685
36,293
Bu.
14,104
46,143
Bu.
2,602
12,216
Bu.
B u.
625 _____
2,410 ............
B arley
11,281
12,556
44,226
70,008
50,624
57,163
2,792 3,466
2,253 3,008
Grain prices at Chicago were easier in November than in
October.
FLOUR
During November aggregate production at forty flour
mills in this district dropped 13.5 per cent from the previ
ous month, while the operating ratio fell from 60.4 per
cent in October to 56.4 per cent in November. These de
clines may be partly explained by reported weakening in
demand for flour and by the fact that there are two less
working days in November than in October. Compared with
a year ago production decreased 9.0 per cent. The output of
wheat flour during November declined 20.0 per cent from
the previous month and 15.7 per cent from November, 1922,
while production of flour other than wheat, according to
figures for twelve mills, increased 56.3 per cent over O c
tober and 61.3 per cent over a year ago. A fairly active
demand for rye flour for export was reported during the
latter part of November.
Stocks of flour on hand showed an increase of 2.0 per
cent during the month, while sales decreased 10.2 per cent
in volume and 18.6 per cent in value; compared with a
year ago, they declined 14.8 per cent in volume and 18.2
per cent in value, while stocks of flour on hand at the end
of the month decreased 6.3 per cent. Wheat stocks held
at mills at the end of November were 3.9 per cent smaller
than at the end of October, and 11.1 per cent greater than
a year ago.
Decreased activity in the flour industry is also reflected
in receipts and shipments at Chicago. Receipts of flour
during November amounted to 879,000 barrels compared
with 953,000 barrels during the previous month and 1,738,000 barrels during the same month a year ago; shipments
from Chicago were 735,000 barrels compared with 816,000
barrels in October and 1,341,000 barrels in November,
1922.
M OVEM ENT OF L IV E STOCK
Fewer cattle, sheep, and calves were slaughtered in N o
vember than in the corresponding month last year al
though the decline from October, 1923, was partly seasonal.
Page 5 January
The November slaughter of hogs was seasonally greater
than October and was considerably more in volume than
that for November in either 1921 or 1922.
LIVE STOCK SLAUGHTER
Ca t t l e
H ogs
Eight yards in district,
231,011
November, 1923 .......
Public stock yards in U. S.
November, 1923 ................. 754,084
October,
1923 .................931,380
November, 1922 .............. _.778,823
November, 1921 .................640,550
S heep
C alves
1,387,698
275,203
101,190
3,657,036
3,128,998
2,917,935
2,370,439
777,091
980,549
880,648
988,412
352,101
441,761
359,230
294,483
November shipments of feeder cattle, calves, and sheep
back to farms were seasonally less than in October, the
volume being even less than in the corresponding period
a year ago.
AVERAGE PRICES OF LIVE STOCK
Per hundred pounds at Chicago
W e e k ended
D ec . 15,
C lass
Native Beef Steers (average).. ....... $
Fat Cows and Heifers............ ........
Canners and Cutters............ ............
Calves ........................................ ........
Stockers and Feeders................ ........
Hogs ............................................ ........
Yearling Sheep .................................
Sheep .......................................... ........
Lambs ........................................ ........
1923
.....
5.35
2.70
9.00
5.85
6.76
10.50
6.70
12.65
Nov.
1923
$ 9.70
5.30
2.75
8.80
5.95
6.90
10.35
7.00
12.75
M o n t h s of
O ct.
1923
$10.15
5.45
2.85
11.10
6.00
7.45
9.90
6.45
12.95
Nov.
1922
$ 9.85
4.90
3.10
9.40
6.30
8.10
11.20
7.05
14.10
M E A T P A C K IN G
A slight slackening from October in production of
packing house products was indicated in November, but
December 1 inventories were larger than those of a month
ago; lard holdings declined. Figures for the period cov
ered by the last pay-date in November show a falling of?
from October in hours worked and total payrolls. Sales
in dollars were 7.7 per cent greater in November than a
year ago, but because of holiday consumption of poultry
showed a seasonal decline of 17.3 per cent from October,
1923, according to statistics compiled from reports sent
direct to this bank by 60 meat packing companies in the
United States. Chicago wholesale prices of beef and lamb
were practically unchanged from those in October; fat
backs, picnics, and lard, and regular hams were firmer;
but prices of other edible products were easier in N o
vember than in the previous month.
The sale of pork fats to Continental purchasers con
tinued in large volume during November.
Continental
prices for these commodities continue on about a parity
with those in the United States. Present British demand
for United States products is limited principally to lard
and A. C. hams. Fair prices have been maintained in
England for these commodities but for most other packing
house products, sold in the United Kingdom, prices have
been below a Chicago parity. Reports from representa
tive companies engaged in foreign trade show their N o
vember forwardings of meats and lard for export nearly
equal in volume to those in October.
D A IR Y P R O D U C T S A N D P O U L T R Y
The factory output of dairy products was seasonally less
in November than in October. November production of
butter reported by representative creameries in the Seventh
district was 14.0 per cent less than in October but 0.9 per
cent greater than a year ago. Statistics issued by the
American Association of Creamery Butter Manufacturers
indicate a total November production in the United States
somewhat smaller than in October but in excess of N o
vember last year. Wisconsin factories turned out less
cheese in November, 1923, than in the previous month,
although the output was greater than in the corresponding
period in 1922. Sales of creamery butter declined 10.2 per
cent in volume in November compared with October, but
increased 6.1 per cent over those in November, 1922, ac
cording to reports made direct to this bank by representa
tive companies in the Seventh district.
The total receipts of dairy products and poultry were
greater at Chicago during November than a year ago.
Compared with October, the November receipts of butter,
cheese, and eggs declined, but those of poultry increased
in response to holiday demand. Average prices during N o
vember of butter, eggs, and turkeys were firmer at Chi
cago than in October, but those o f ducks, chickens, geese,
and fowls were easier. Cold storage holdings of poultry
and cheese in the United States were greater on December 1
than a month previous, but stocks of butter and eggs de
clined.
INDUSTRIAL EMPLOYMENT CONDITIONS
Employment figures at the close of November indicate
a definite slackening during the month in the industrial
activity of the district. A reduction of 1.7 per cent in the
number employed by 296 manufacturing plants reversed
the upward trend that was apparent during October, and
again brought the volume of employment back to the
early spring level. Many plants in order to keep their
working forces intact, operated on shorter time-schedules
and the total number of man-hours worked as reported by
175 firms shows a decline of over 6 per cent with corre
sponding reductions in aggregate payrolls. While the
general level of employment continues to run higher than
during the corresponding month a year ago, the difference
has been reduced considerably. In 1922, an upward trend
continued practically uninterrupted from the beginning of
the year until late in December when the holidays and
inventory taking caused a temporary decline.
Page 6 January
Declines were registered for practically all of the in
dustrial groups reporting for November.
Employment
in the iron and steel mills with a total of 18,000 men fell off
nearly 10 per cent. Other iron and steel industries, in
cluding the manufacture of heavy machinery, railway
equipment, steam pipe fittings, machine tools, and miscel
laneous hardware, show a similar trend although the de
clines were less pronounced. Agricultural machinery,
forming the one exception, showed a slight improvement,
the first since early April. Railway repair shops report
further reductions, especially in hours and payrolls. Brick
yards generally were closing down for the season, while
other building materials also showed curtailment. In the
food products group, the declines were general, meat pack
ing showing a downward trend not so much in volume of
employment as in total hours worked and payroll figures.
The same applies to the leather and furniture industries
where decreases in payrolls and hours were heavy.
A remarkable steadiness in the volume of employment
in the automobile industry is indicated by the figures from
the Employers’ Association of Detroit, although in this in
dustry, as in others, there was a considerable reduction in
the total hours worked.
According to reports published by several states of the
district, a decline in industrial employment set in earlier in
Iowa and Wisconsin than in Illinois. In the last named
state figures for the middle of November showed a de
crease of not more than 0.4 per cent from mid-October.
Including distributive as well as factory workers, the aggre
gate change shown for this period was a slight increase.
FUEL AND POWER PRODUCTION
COAL
Although there was a downward trend in the production
of bituminous coal in the United States in November com
pared with October, weekly output was still maintained at
a high level. The observance of Armistice Day and
Thanksgiving Day caused production to fall below the 10,000,000-ton rate during the weeks ended November 17 and
December 1. Average daily output during the week ended
November 24 amounted to 1,693,000 tons, the lowest point
reached since the week ended May 5, but rose during the
following week to 1,763,000 tons. Despite the downward
trend in production, bituminous coal mined during the
entire year to date aggregated 526,489,000 tons, a larger
amount than for any corresponding period since 1920.
Both Illinois and Indiana mines show a greater percent
age of time lost by miners in November than in October,
a condition which was due almost entirely to the lack of a
market for the coal. Total Illinois production for Novem
ber amounted to 6,061,410 tons, a decrease of 7.8 per cent
from October and 17.4 per cent from November, 1922.
Among the reasons given for the slow movement of
Illinois and Indiana coal during November and the early
part of December were the continued mild weather and
further declines in the prices of Pocahontas and smokeless
coals shipped in from other fields. The price of Poca
hontas mine-run has moved steadily downward during the
year and on December 15 was selling at $1.75@$2.00.
The continued extremely light domestic demand has lead
to a large accumulation of domestic sizes at the mines,
thus forcing curtailment of operations. Stocks of screen
ings, which had been in a little better demand than the
larger sizes, steadily diminished, this growing scarcity,
rather than increased demand, resulting in strengthening
in the price of screenings during November. A few opera
tors influenced by the advanced prices for fine coal, are
reported to have begun crushing their lump sizes. Many
buyers are withholding the placing of orders, evidently
in the hope that prices on fine coal will come down a little
later when cold weather causes an increased demand for
domestic sizes.
For the week ended December 10, the average spot price
of bituminous coal, according to Coal Age, was $2.18, a new
low record for the year, and a drop of 3 cents from the low
point reached in November.
The sharp drop in anthracite output in the United States
from 2,069,000 tons during the week ended October 27 to
1.373.000 tons during the following week was at least
partly due to the general observance by anthracite miners
of Mitchell Day on October 29 and All Saints’ Day on
November 1. The period of greatest activity in anthracite
mining during November was the week ended November
24 when 2,100,000 tons were produced, a decrease of only
65.000 tons from the high record for the year. Total pro
duction for the month was estimated at 7,746,000 tons, a
decline of 978,000 tons from October. There is a fair de
mand for anthracite chestnut, but it is becoming increas
ingly difficult to move the smaller sizes of hard coal.
Chicago retailers have reduced their pea and buckwheat
prices $1.00 a ton.
ELECTRIC ENERGY
Reports from nine central station companies show that
the aggregate production of electric energy in November
decreased 3.6 per cent from October and was 9.3 per cent
greater than in November, 1922. This decrease is largely
due to the one more day in October than in November,
for average daily production decreased but 0.4 per cent.
The aggregate output o f these companies was 508,763,178
K. W . H. in November. The load factor calculated from
their reports was slightly less than in October, that for
October being 44.2 per cent, and for November 43.8 per
cent, as compared with 42.6 per cent in November, 1922.
The peakload demand increased from 81.0 per cent in O c
tober to 82.0 per cent in November.
Aggregate sales to industrial users in November de
creased 6.5 per cent from October, but were at a level 14.1
per cent above November, 1922. On a basis of the actual
number of working days in the respective months, these
sales were 1.0 per cent larger than in October and 14.1 per
cent greater than in November, 1922.
MANUFACTURING ACTIVITIES AND OUTPUT
AUTOMOBILE PRODUCTION AND DISTRIBUTION
Combined passenger car and truck production figures
indicate some curtailment by manufacturers during N o
vember when the output decreased 14.2 per cent compared
with October. This decrease was not entirely the result
of smaller production programs for a decrease of only
7.4 per cent in the daily average production took place.
Comparison with November, 1922, shows an increase of
32.0 per cent, considerably smaller than that shown in the
yearly comparison in preceding months. Price changes
in both directions were announced recently by several
manufacturers.
Production o f 3,700,162 passenger cars and trucks during
the eleven months of 1923 represents an increase o f 57.9
per cent over the same period of 1922, when the total pro
duction amounted to 2,343,835 combined cars and trucks.
With the November production at 312,132 cars and trucks,
it would seem quite possible that the industry may pass
the 4,000,000 mark in 1923.
Page 7 January
Manufacturers, reporting direct to this bank and through
the National Automobile Chamber of Commerce, repre
senting practically complete October production, built
284,758 passenger cars in November compared with 334,244
in October, a decrease of 14.8 per cent. The November
output of trucks for manufacturers who produced 29,638
trucks in October, was 27,374, a decrease of 7.6 per cent.
Sales of automobiles during November reported to this
bank by eighty-four distributors and dealers in the Middle
West were considerably smaller than in October, wholesale
and retail distribution showing nearly the same rate of
decrease, while compared with November, 1922, wholesale
and retail transactions gained. Stocks of new cars on
hand November 30, show considerable increase over both
the previous month and a year ago, probably reflecting
preparation of the trade for Christmas sales as well as for
the heavy spring demand which dealers anticipate. Sales
of used cars were also less than in October, although the
yearly comparison indicates an increase. Used cars on
hand November 30, which were equal to 150 per cent of
the November used car sales, increased over October 31,
and November 30, 1922.
DISTRIBUTION OF AUTOMOBILES
Changes in November, 1923, from previous months
P er c e n t c h a n g e fro m
O
Number of new cars sold
Wholesale ...................
Retail .........................
Value o f new cars sold
Wholesale .................
Retail .........................
New cars on hand at end
of month
Number .....................
Value .........................
Number of used cars
sold .............................
Salable used cars on hand
at end of month
Number .....................
Value .........................
ct
.. 1 9 2 3
Nov., 1922
C o m p a n ie s in c l u d e d
O
c t .,
1923
Nov., 1
50
78
40
60
so
78
40
60
+ 18.4
+ 3 .4
79
79
53
53
— 5.5
+23.2
81
58
+ 11.4
+ 8.6
+ 2 3 .9
75
75
47
47
— 2 4 .1
— 2 5 .9
+ 9 .0
+ 9.7
— 2 3 .3
— 2 3 .2
+ 2 0 .3
+28.5
+ 25.9
+
7.1
+ 11.3
Shipments of automobiles reported by the National Auto
mobile Chamber of Commerce show large seasonal de
creases in driveaways and boat shipments, and a lesser de
crease in carload shipments.
Exports of passenger cars during October from the
United States were only two less in number than during
September, while the value increased $500,000. Trucks ex
ported were nearly double those exported in September,
although the value increased by only one-half, indicating
large exports of trucks in the lower priced field. Inven
tories of casings on October 31, as reported by the Rubber
Association of America, were again under those of the
previous month, making the fourth consecutive month in
which smaller inventories were shown. Inner tube inven
tories increased for the first time in the past five months.
CASTINGS
In all items except iron scrap, which showed only a
slight decrease, consumption of iron and steel by twenty-five
casting foundries in the district was in markedly smaller
volume in November than October; large decreases being
likewise shown in all items but iron scrap in comparison
with the average consumption in the preceding ten months.
Large declines in the volume of shipments and in their
value were also reported.
Page 8 January
CHANGES IN NOVEMBER, 1923, FROM PREVIOUS MONTHS
Compiled from direct reports to this bank
P
er c e n t c h a n g e fr o m
O
ct
.
1923
Pig iron consumed...................
Iron scrap consumed...............
Steel scrap consumed...............
Total tonnage consumed.........
Castings shipped (tonnage).....
Castings shipped (dollars).....
— 24.5
— 4 .7
— 1 0 .8
— 13.4
— 1 9 .8
— 18.5
C o m p a n ie s
in c l u d e d
O ct.
Mo. Av.
Mo. Av.
10 Mo. 1923 1923 10 Mo. 19
25
19
— 21.7
25
19
+ 18.3
25
19
— 12.5
19
— 1 2 .5
25
— 11.3
25
20
24
24
— 5.2
IRON AND STEEL
Reaching the lowest point since the same month last
year, pig iron production in November was at an average
daily rate of less than 100,000 tons per day. While the
decline in total November production was approximately
8 per cent, the average daily output was only about 5 per
cent below the previous figure, because of the shorter
month. The decline in the Illinois and Indiana district
was at a somewhat greater rate. The net loss of furnaces
in the country for November was fourteen, compared with
ten in October. In the Chicago district the decline in
new business the first of the month necessitated some
curtailment; increases in the volume, however, toward the
end of the month permitted an increase in operations to
about the average production.
Inventories at steel plants in the district continue low
and prices remain relatively firm. The decrease in the
aggregate output of steel ingots in November was even
more pronounced than that of pig iron. Both in the total
and in average daily production, which declined 12 and
9 per cent, respectively, from October, the lowest point
since September, 1922, was reached.
The month was featured by a remarkable buying move
ment in pig iron trade accompanied by substantial and
well maintained purchasing of small lot steel. The month
opened with conditions rather unsettled; fairly large vol
ume of inquiries; moderate amount of buying; and price
of pig iron slumping. With a continuance of lowering
prices there simultaneously appeared an increasing de
mand until in the third week of the month the bookings
nearly equalled the high points in the early months of the
year. Prices then firmed and buying, while still in large
volume, became less active. The month ended with the
composite of iron and steel prices at a lower level than
in the previous month, but rapidly becoming more firm
and with week-to-week comparisons showing increases.
Most of the buying was for the first quarter. A feature
of the steel market was the buying of the railways which
continued until the end of the month before slackening.
Unfilled orders, however, showed a substantial decrease in
November as compared with October, and by the end of
the month had reached the lowest point since February,
1922.
The monthly report of the American Zinc Institute re veals a further increase in the production of slab zinc.
The aggregate production in November was 44,280 tons,
which compares with 42,098 tons in October. Shipments
in November remained at practically the same level as
in October, the totals for these months being 39,163 tons
and 39,204 tons, respectively. Reports from the Joplin
district show that the shipment of zinc ore in November
was the largest of any month this year with the exception
of March; and the total shipments during the first eleven
months of this year exceed those of the corresponding
period last year by 45.8 per cent in tonnage and 80.7 per
cent in value.
STOVES AND FURNACES
Shipments of stoves and furnaces as well as orders re
ported by seventeen firms declined seasonally in November.
While this reduction from October was large, these items
were in advance of last year, but to a less marked degree
than in October and September. Inventories were slightly
lower than in October but considerably greater than last
year. Production, as measured by operations in the mould
ing room, slackened in November.
CHANGES IN NOVEMBER, 1923, FROM PREVIOUS MONTHS
Compiled from direct reports to this bank
P er c e n t c h a n g e fro m
O c t ., 1923
Nov., 1922
Shipments
Orders accepted — ....
Inventories .................
Operations (moulding
room) ................ ..
— 32.2
— 44.9
— 3.7
+ 7.3
+ 9.2
+24.8
— 6.9
+
4.4
C o m p a n ie s in c l u d e d
O ct., 1923 Nov., 1922
17
17
13
13
12
12
13"
17
AGRICULTURAL MACHINERY AND EQUIPM ENT
Reports in dollar amounts made direct to this bank by
107 manufacturers of agricultural machinery and equip
ment in the United States show that domestic sales de
clined 37.1 per cent in November compared with the pre
vious month. This decline in domestic sales resulted in
the aggregate of domestic and export billings being 30.3
per cent less than in October, 1923, although exports
alone decreased but 4.2 per cent. The falling off in the
November total sales from those for October seems to
be seasonal in character, as figures for the corresponding
months a year ago, reported by seventy-nine of the com
panies, indicate that total billings in November, 1922,
were 38.8 per cent below those in October, 1922. Complete
figures for November, 1922, for comparison with the
corresponding period in 1923 are not available, but reports
for both months furnished us by eighty identical manu
facturers indicate that the total sales in November, 1923,
were 25.2 per cent greater than in November last year.
Practically no change in production in November is
indicated by employment figures compiled from the reports
submitted by seventy-five companies. The total number
employed by these companies in November averaged 61.6
per cent of the normal for that month while in October
the identical companies reported employment equal to 62.1
per cent of the October normal.
SHOE MANUFACTURING, TANNING, AND HIDES
The production and shipments of shoes by reporting
factories in the district were greater in November than in
the same month a year ago, but show a seasonal recession
from October. November production was 4.5 per cent
greater than current shipments. Inventories of twentytwo companies on December 1, 1923, were equivalent to
48.4 per cent of their shipments in November, 1923. Un
filled orders held by twenty concerns equal approximately
nine weeks’ business at the November rate.
CHANGES IN THE SHOE MANUFACTURING INDUSTRY, IN
NOVEMBER, 1923, COMPARED WITH PREVIOUS MONTHS
Based on pairs and compiled from direct reports to this bank
P er c e n t c h a n g e from
O c t ., 1923
Nov., 1922
Production ...................
Shipments .....................
Inventories ........ ..........
Unfilled orders ...........
— 5.5
— 12.6
+17.6
+21.4
+
0.7
+
2.5
— 2.1
— 12.5
C o m p a n ie s in c l u d e d
O c t ., 1923 Nov., 1922
28
28
23
19
28
28
18
18
Leather production in November was reported smaller
than in October, 1923, by representative tanners in the
Seventh district. The total volume of leather sold in
November was indicated as 10 to 20 per cent below that
in October and was considerably less than in November
last year. The principal demand at present is for leather
suitable for men’s dress shoes as well as for suede and
patent. Leather prices were easier in November than in
the previous month. Tannery inventories on December 1,
1923, were indicated as slightly greater than at the first of
November. Figures for the period covered by the last
pay-date in November, 1923, show that in the tanning in
dustry employment declined 0.7 per cent in number, 14.5
per cent in total payrolls, and 14.7 in total hours worked,
compared with the corresponding period in October.
The markets for calf and kip skins and packer green
hides were more active at Chicago during November than
in the previous month, but total shipments of hides and
skins from Chicago declined. The volume of November
purchases of green hides and skins by reporting tanners
in the Seventh district was indicated as slightly greater
than in October, although limited principally to current re
quirements. Sheep skins were firmer but prices of other
kinds of skins and of hides averaged lower at Chicago
during November than a month ago.
IN D E X
O F P R O D U C T IO N A N D S H I P M E N T S
7 T H D IS T R IC T
OF SHOES,
RAW W O O L AND FINISHED W O O LEN S
Decreased supplies in the United States and the strong
market abroad have contributed to the expansion in wool
sales during November. Medium and lower grades con
tinue in the greatest demand, but all higher grades are
also manifesting increased activity over a month ago. This
quickened demand has been reflected in a general upward
movement in prices on all grades of wool. Some of the
purchases by woolen mills have been made in anticipation
of the 1924 heavy-weight season which opens in January,
while the increased demand on the part of worsted spinners
for quarter and three-eighths blood wools seems to have
been chiefly for current requirements.
At Chicago during November both receipts and ship
ments of wool showed increases over October, the former
54.5 per cent and the latter 2.9 per cent; compared with a
year ago there were decreases of 19.3 per cent and 33.3 per
cent, respectively.
Page 9 January
W oolen mills reported little change in their business
during November, with no anticipated improvement be
fore the opening of the 1924 heavy-weight season. Sales
and production of woolen goods were maintained at about
the same level as in October and prices remained steady.
FURNITURE
Despite a curtailment both in production and in ship
ments of furniture during November, orders reported for
the month indicate a better demand than in October.
Operations of fourteen furniture plants averaged 77.7 per
cent of capacity during November compared with 87.0 per
cent in the previous month. According to reports from
seventeen firms, orders increased 7.3 per cent while ship
ments declined 22.7 per cent from October; compared with
a year ago there was a contraction of 9.8 per cent in
orders and 10.8 per cent in shipments. Unfilled orders,
according to figures from thirteen firms, increased during
November, and by the end of the month were 5.8 per cent
greater than on October 31; compared with a year ago
they were 37.6 per cent less. Based on November ship
ments these firms continued to show an average of about
four weeks’ business on hand on December 1. Collections,
although better than a year ago, showed little change
from October.
BUILDING MATERIAL AND CONSTRUCTION ACTIVITIES
CEMENT
Shipments of cement in the district decreased during
November, largely on account of the decline in construc
tion activities, though sales are still above normal for this
time of year. Stocks have increased and prices have de
clined in some sections.
Production for the country as a whole decreased 5.6
per cent during the month. November production, how
ever, was 11.1 per cent higher than last year and ship
ments increased 0.8 per cent. Stocks are 51.5 per cent
greater than at the close of October, and 30.9 per cent
above last year. Cement on hand at the end of the month
was equal to 55.3 per cent of the production for the month,
and 51.6 per cent of the total stocks held in February,
which was the high point of the year.
BRICK
Lessened demand for brick in a greater part of the dis
trict has accompanied slackening in construction. Sales
have fallen off and several plants are closing down with
heavy stocks. Plants still open are reducing activities,
and in some localities have made price concessions in
order to stimulate sales.
In the territory around Chicago, however, the demand
was maintained above normal during November, with
prices firm at the former levels. Some large producers
reported capacity operations throughout the month. Only
slight increases in stocks w’ere reported.
LUMBER
Reports from lumber dealers throughout the district
show that the decline expected in October did not manifest
itself until November, when many dealers reported lower
sales, although some reported increases in that month.
Nearly all dealers, however, reported increases over N o
vember last year. Stocks are lower and with the approach
of the inventory season dealers are doubtless hesitant
about buying until after the first of the year. In the
larger cities the demand has been stronger than expected
on account of the continued favorable building weather.
Prices have remained practically unchanged. Gross re
ceipts at Chicago were 5.8 per cent below October while
shipments were 3.7 per cent greater. Net receipts estab
lished a new low point for the year, being 18.1 per cent
below the October figure.
In the western part o f the district, especially in Iowa,
demand is still slow, but dealers report collections up to
normal. In Indiana business is slow with a reduction of
prices in some localities.
CONTRACTS AND PERMITS
Contracts and permits for the district reflect the late
ness of the usual seasonal change this year, in that the
decline in activities was not felt until November. Con
tracts awarded for the month were valued at $43,690,353,
or 25.0 per cent less than October. The decrease in resi
dential construction was less marked, amounting to 18.9
per cent. In Iowa, residential building increased 41.2 per
cent, and in Illinois 6.8 per cent; other states reported de
creases for all types. Contracts awarded in the district
during eleven months this year were 0.4 per cent below
the same period last year, while residential construction
expanded 14.2 per cent, and was 5.0 per cent greater than
the total residential contracts for 1922.
Permits issued by fifty cities were 27.6 per cent fewer
than in October, although the estimated cost decreased
16.3 per cent. Compared with last November, the number
of permits increased 13.4 per cent, and the estimated cost
13.8 per cent. Permits issued in the five large cities de
creased 27.7 per cent, but were 9.8 per cent greater than in
November, 1922. Decreases for the month amounted to
2.0 per cent for Chicago, and 5.1 per cent for Des Moines.
In Detroit, Milwaukee, and Indianapolis, the decreases
were 28.2, 34.0, and 35.6 per cent, respectively. Estimated
costs in these cities decreased in about the same propor
tion except in the case of Des Moines, where there was
an increase of 20.5 per cent.
MERCHANDISING CONDITIONS
W H O L ESA LE TRADE
A moderate seasonal contraction in wholesale distribu
tion took place during November— the normal result o f
retailers being occupied with holiday trade, and whole
Page 10 January
salers giving attention to inventory preparations. This
slower movement was noticeable in all parts of the dis
trict, only thirteen of the ninety-eight dealers reporting
to this bank having made gains over October. Most of
these were grocers, so that this group averaged, as in
1921 and 1922, the smallest percentage decrease. The
largest decline from the previous month was in shoe sales,
the 30.2 per cent being twice as large as the 1922 decrease.
Shoe sales also showed the only decrease from Novem
ber, 1922, although most of the gains in other commodities
were less marked than the average for the first ten months
of the year.
Compared with November, 1921, sixtyeight out of ninety-four dealers reported larger sales this
year.
Reduction in stocks during the month was general,
the declines ranging from 2.8 per cent in drugs to 16.4
per cent in dry goods. Inventories for automobile acces
sories, however, averaged a gain of 0.4 per cent, and
groceries continued as in previous months with increases
for the majority of reporting dealers. Comparisons with
November, 1922, vary with half the grocery firms and more
than half the shoe and drug dealers reporting decreases.
Accounts outstanding November 30 for most of the firms
were less than at the beginning of the month, with nearly
60 per cent, however, showing increases over a year ago.
Collections were in smaller volume than during October,
but for the large majority of firms, considerably heavier
than during November, 1922.
DEPARTM ENT STORE TRADE
Only about a third of the department stores reporting
regularly to this bank maintained as large a volume of
business through November as during October. For the
district as a whole, the decrease of 3.5 per cent compares
with a 5.3 per cent gain in 1922, when all but ten firms in
creased their sales over the previous month. The condi
tion this year bears more resemblance to two years ago,
at which time the majority of firms showed decreases
from October.
As usual, holiday purchasing was an element in the
November trade this year, but of not sufficient momentum
to counteract the effect of the fewer trading days and the
influence of the continued warm weather in delaying the
need for many seasonal goods.
Compared with November, 1922, decreases were shown
by nineteen stores, the largest number since May, so that
the gain for the entire group amounted to only 8.7 per
cent. The increase of 24 per cent over November, 1921,
reflected individual gains by forty-six firms.
Considerably over half the stores reduced their stocks
during November, although increases by some o f the larger
stores resulted in an average gain for the district of 4.1
per cent. With few exceptions, dollar inventories con
tinued higher than in 1922, but in proportion to the in
creased sales indicate a lower operating ratio.
O f forty-three returns showing accounts outstanding at
the beginning of November, thirty-nine had larger amounts
on their books than the previous month, and thirty-six
larger than a year ago; collections for the same firms
showed eleven decreases from October, and seven from
November, 1922.
CHAIN STORE TRADE
The eight chain store systems reporting November sales
to this bank all showed gains over the corresponding month
in 1922, with aggregate sales for the group, however, aver
aging only 17 per cent ahead of last year.
The increase of 1.6 per cent over October, 1923, reflects
individual expansion by only two systems, as business for
the others fell off with the decrease for one system as high
as 22 per cent.
M AIL ORDER TRADE
The November business of Chicago’s two leading mail
order houses fell short of the October record by 8.5 per
cent— a decrease that compares with gains of 3.2 per cent
and 26.5 per cent, respectively, in 1922 and 1920, and a
decline of 4.9 per cent in 1921. November returns show
an increase of 10.7 per cent over November, 1922, which
is the smallest yet noted, reducing the average excess for
1923 over 1922 to 29.8 per cent. For part of the slackened
trade in this district, the continued mild weather may be
considered responsible, as sales in goods not of a seasonal
nature made decided increases over last year.
TRANSPORTATION
The seasonal decline in the volume of freight carloadings during the month of November was not sufficient
to cause the weekly average for the month to drop below
a million. During four successive months the railroads
have averaged over a million cars per week, October
being the peak month.
A net operating income of $102,746,150 for all Class I
railroads is credited to October. Although this figure is
considerably less than the theoretical monthly apportion
ment set against that month as a fair earning on a yearly
basis, as computed by the Bureau of Railway Economics,
and based on the tentative valuation established by the
Interstate Commerce Commission, it exceeded the net
operating income of any previous month of this year.
Page It January
MONTHLY BUSINESS INDICES COMPUTED BY FEDERAL RESERVE BANK OF CHICAGO
(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.)
No. of Nov.
Firms 1923
Employment—
Iron and Steel Products:
84.3
Number Employed .... 56
79.6
Amount of Payroll.... 56
All Industries:
Number Employed ....296
96.7
Amount of Payroll....296
111.1
Meat Packing— (U. S.)—
Sales (in dollars)1........... 63
88.7
Stoves and Furnaces—
Shipments (in dollars).. 18
91.1
Agricultural Pumps— (U.S.)
89.8
Shipments (in dollars).. 21
Furniture2—
Orders (in dollars)....... 13
119.8
Shipments (in dollars).. 13
118.7
Shoes3—
Production (in pairs).... 37
164.1
151.4
Shipments (in pairs).... 37
Electric Energy—
Output of Plants (K W H ) 10
155.2
164.1
Industrial Sales (K W H ) 10
Flour Production—
102.4
(In barrels) .................... 45
Freight Carload'ngs— (U. S• ) Grain and Grain
125.7
Products ....................
127.1
Live Stock ......................
111.0
Coal ..................................
123.8
Coke ..................................
130.3
Forest Products .............
111.5
Ore ..................................
Merchandise and
131.8
Miscellaneous .............
125.9
Total ................................
Iron and Steel—
Pig Iron Production:
132.5
Illinois and Indiana....
113.6
United States .............
Steel Ingot Production
107.8
(U. S.) ........................
Unfilled Orders U. S.
72.9
Steel Corp....................
Automobiles— (U. S.)—
Production:
206.1
Passenger Cars...........
105.9
Trucks ........................
Shipments (Monthly
Average, 1920=100):
L90.5
Carloads ......................
74.2
Driveaways .................
Boat (Base Figures
(1920), partly esti
206.4
mated) ....................
S t a m p Tax Collec
tions—{First Illinois
Internal R e v e n u e
District) —
Sales or Transfer of
136.9
Capital Stock .............
Sales of Produce on
45.3
Exchange — Futures..
Oct.
1923
Nov.
1922
Oct.
1922
88.5
88.1
83.0
73.4
81,3
74.2
98.2
117.8
92.6
101.7
90.8
102.1
107.3
83.1
100.0
139.0
106.3
119.4
97.9
87.2
100.8
112.4
159.1
141.8
143.3
183.6
147.9
173.7
173.3
167.2
158.1
167.1
180.6
161.0
175.5
140.8
141.1
138.3
147.3
118.2
112.6
112.6
126.6
132.1
118.7
130.7
129.4
164.9
136.5
119.6
119.0
133.5
108.2
90.6
131.8
121.7
117.9
113.0
103.7
125.8
159.5
133.9
120.7
118.9
124.0
121.6
147.4
123.6
113.6
111.8
103.0
103.5
122.8
118.7
118.0
78.0
114.1
115.1
242.0
114.6
155.8
82.4
156.4
81.6
201.9
96.7
130.2
69.8
129.5
89.7
225.9
149.5
224.2
103.8
111.0
89.8
37.5
52.6
47.6
No. of Nov.
Firms 1923
Wholesale Trade—
Net Sales (in dollars):
Groceries ................... .
Hardware ...................
Shoes ......................... .
Drugs ......................... .
Dry Goods .................
Automobile Accessories ....................... .
Oct.
1923
Nov.
1922
Oct.
1922
40
21
11
14
13
81.2
100.0
50.6
104.9
89.5
86.0
119.2
72.5
115.0
107.6
79.2
92.6
64.7
92.5
86.4
82.0
103.3
77.5
104.2
98.9
7
82.5
97.0
55.7
64.0
134.3
148.9
141.9
159.7
175.6
166.9
124.1
146.7
170.4
168.9
129.1
152.0
129.7
143.8
106.8
163.3
145.0
110.1
134.9
124.3
130.5
106.5
150.7
143.3
109.2
128.1
142
122
148
134
131
110
130
109
187
141
131
176
149
174
134
191
152
139
180
137
185
138
162
123
123
151
121
145
127
149
133
121
155
119
150
127
91.2
157.0
117.4
153.9
1 1 8 .7
144.5
110.4
122.0
1 3 1 .8
126.0
220.6
156.1
80.1
69.7
58.9
106.4
60.6
60.6
97.5
92.7
86.9
88.4
157.3
88.4
127.6
79.5
157.4
105.9
138.8
82.7
126.2
94.7
288.9
312.4
181.5
172.4
218.6
162.7
136.8
121.3
176.5
156.5
172.9
156.5
174.9
198.2
294.7
320.6
282.0
258.7
230.4
135.0
191.5
180.5
269.0
310.8
238.8
179.6
241.7
236.8
206.0
235.4
158.3
234.8
173.5
949.1
123.1
111.8
185.7
129.6
144.1
122.2
154.2
174.2
200.9
172.7
226.4
228.1
161.8
370.7
153.7
125.2
232.9
147.2
189.7
118.7
194.1
148.1
Retail Trade (Depart
ment Stores)—
Net Sales (in dollars):
Chicago ....................... . 9
Detroit ....................... .. 6
Des Moines ............... . 3
Indianapolis ............... 4
Milwaukee ................. . 5
Outside ....................... . 43
Seventh District ...... . 70
Retail Trade (U. S.)Department Stores ..........333
Mail Order Houses........ . 4
Chain Stores:
Grocery ...................... ... 32
Drug ............................. . 10
Shoe ............................ .. 6
Five and Ten Cent—... 5
Music ...................... —. .. 4
Candy ........................... 4
Cigar ............................ .. 3
Movement of Grain
at U. S. Interior
Primary Markets—4
Receipts:
Oats ....................... .......
Corn .................... .......
Wheat .................. .........
Shipments:
Oats ..............................
Corn ...................... ___
Wheat .................. .........
Building Construction—
Contracts Awarded (in
dollars):
Residential ..
Total ..........
Permits:
Chicago ...... ...Number
Cost.....
Indianapolis......Number
Cost.....
Des Moines......Number
Cost.....
Detroit ............Number
Cost.....
Milwaukee ......Number
Cost.....
Others (45). ...Number
Cost.....
Fifty Cities. ...Number
Cost.....
1. Monthly average, 1920-1921 = 100; 2. Monthly average 1919-1920-1921 = 100; 3. Monthly average of mean of production and shipments in
1919 = 100; 4. Monthly average receipts 1919=100.
.
,
,
... . , T
The following are sources of data used in obtaining the index numbers m 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 of Commerce Freight
Cascadings— American Railway Association; Retail Trade, United S tates-F ederal Reserve Board; Movement of G rain-H ow ard, Bartels & Co.,
Daily Trade Bulletin.
Page 12 January
@FedFRASER