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B usiness Conditions
R eserve
S even th
FEDERAL
Volume 7, No. 6
d is t r ic t
M O N TH LY
FED ER AL
R E V IE W PUBLISH ED
R ESERVE B A N K OF
B Y THE
CHICAGO
June 1, 1924
BUSINESS CONDITIONS IN THE UNITED STATES
AC T O R Y employment and production of basic
commodities declined in April and there was a
further recession in wholesale prices. Retail trade
was larger than in March, chiefly because of Easter
buying and was at about the level of earlier months
of the year. There was a decrease in the volume
of borrowing for commercial purposes and further
easing of money rates.
PRODUCTION— The Federal Reserve Board’s
index of production in basic industries, adjusted to
allow for seasonal variations, declined tw7 per cent
o
in April. Declines wrere particularly large in the
iron and steel, coal, and wroolen industries. Mill
consumption of cotton, on the other hand, showed
less than the usual seasonal reduction between
March and April. Factory employment declined
two per cent in April, owing chiefly to large reduc
tion of forces at textile and clothing establishments.
F
P R O D U C T IO N
IN BASIC IN D U S T R IE S
Ind ex o f 22 ba sic co m m o d itie s co rre cte d fo r season al v a r ia
tion (1919=100). L a te st figure A p ril, 1924: 114.
Contract awards for new buildings reached a higher
value than in March and were larger than a year
a g o ; value of building permits granted, however,
declined and was smaller than in the corresponding
month of 1923.
Department of Agriculture estimates on May 1
of the yield of winter wheat and rye are somewhat
above the forecasts made in April. The acreage of
winter wheat is estimated at 7 per cent less than
last year.
TRADE— Railroad shipments, which since the
middle of March have been smaller than last year,
were three per cent less in April than a year ago.
Shipments of coal were much below last year, while
loadings of merchandise and miscellaneous freight
were higher. Wholesale trade in April was in about
the same volume as during the preceding month
and as in April, 1923. Sales of dry goods and hard-
Ind ex o f U. S. B ureau o f L a b o r S ta tistics (1913=100, ba se
a d op ted b y the B u rea u ). L a test figure, A pril, 1924: 148.
Compiled May 27, 1924
ware were smaller than a year ago, while sales of drugs
and shoes showed some increase. Department store sales
were considerably larger in April than in March, partly
owing to the unusually late Easter; total sales for the
two months were two per cent greater than in the corre
sponding period of 1923. Merchandise stocks at depart
ment stores showed less than the usual seasonal increase
in April, but were at a higher level than a year ago.
PRICES—Wholesales prices, according to the Bureau
of Labor statistics index, declined one per cent during
April and reached the lowest point since May, 1922. Farm
products, however, advanced two per cent in April. Metals
and foods showed substantial reductions; prices of clothing,
fuel, and chemicals also declined; while prices of building
materials and house furnishings remained unchanged. Dur
ing the first half of May, quotations on cotton, wheat, flour,
and hogs increased while prices of sugar, silk, wool, and
metals declined.
BANK CREDIT— During the five-week period ending
May 14, the volume of borrowing for commercial purposes
RESERVE
BANK
C R E D IT
at member banks in leading cities declined somewhat from
the high level reached early in April. There were increases,
however, in loans on stocks and bonds and in investments
in securities; so that the total of all loans and investments
at the middle of May was higher than a month previous,
and in larger volume than at any time in more than three
years.
Volume of borrowing by member banks at Federal
Reserve Banks declined further during the last week of
April and in May, while holdings of securities bought in
the open market increased slightly. Total earning assets
declined to $795,000,000 on May 21, the lowrest since the
autumn of 1917.
Further easing of money conditions during the last week
of April and the first three weeks of May was reflected in
a continued rise of the prices of government securities, in
a reduction from 4^2 to 4J4 per cent in the rate for prime
commercial paper, and a decline in the rate for bankers’
acceptances from 4 to 3 per cent. On May 1 the discount
rate of the Federal Reserve Bank of New York was reduced
from 4 Y i to 4 per cent.
FACTORY EM PLO YM EN T
Billions of Dollars
—
1919
1920
1921
1922
1923
1924
W e e k ly figures fo r 12 F ederal R eserv e banks. L a te st figures
M ay 21, 1924: T o ta l E arn in g A sse ts 795 m illion ; D isco u n ts 415
m illion ; A c ce p ta n c e s and U nited S ta tes S ecurities 380 m illion.
Ind ex fo r S3 m a n u fa ctu rin g industries (1919=100).
ure A pril, 1924: 97.
L a test fig
BUSINESS CONDITIONS IN THE SEVENTH RESERVE DISTRICT
P R IL business in the Middle West was featured by a
general failure of industry to show the customary
spring developments. Construction work, for months a
leading factor in the district’s maintenance of high activ
ity, on the basis of contracts awarded and permits granted,
showed a lower rate of increase over March than in pre
vious years. In automobile production a slight recession
appeared, and at iron and steel mills, definite contraction of
operations followed the marked curtailment in orders. Coal
output suffered a more than seasonal drop.
Mercantile activity varied, retail trade expanding, largely
stimulated by the late Easter, wholesale trade appearing
spotted, and freight carloadings continuing the downward
trend noted in March. Collections likewise differ, with
those from mining and farming districts, however, gener
ally reported slow.
A
Page 2 June
A smaller abandonment than usual of winter wheat land,
but with a prospective crop below normal, is an outstand
ing feature of the agricultural situation. The increase in
available farm labor is slight, and wage levels hold firm.
CREDIT AND BANKING CONDITIONS
With the exception of small seasonal increases in require
ments for certain lines, demand for banking accommodation
for commercial and industrial purposes during the past
month has been on a steadily decreasing scale, reflecting a
general slowing down of business activity, and the major
ity of banks in the larger cities, particularly Chicago and
Detroit, find themselves oversupplied with funds. Rates in
Chicago, however, have not undergone any change, though
a weakening tendency is discernible here and there. Col
lateral loans have ruled at 5 per cent, over-the-counter ac-
commodations ranging from 5 to Zl/ 2, and time loans passing
at from 4]/2 to 5^4 per cent. While generally speaking, con
ditions are good, there is a note of caution in the business
world emanating from a number of causes, political and
economic in nature.
In sections of the district where agriculture is the prin
cipal industry, almost no liquidation has taken place, and
banks in numerous instances find themselves hard pressed
for funds with which to carry the farmers, who have been
prevented from marketing their corn on account of the
bad roads during the winter and spring season and as a
result require further assistance from the banks.
Loans to member banks by the Federal Reserve bank
continue much below the volume shown on corresponding
reporting dates a year ago. On May 21 these aggregated
$51,461,000, about half a million above the figure for the
preceding week which was the lowest date of the year
with the exception of March 19 when loans to members
declined to $48,507,000. Total earning assets are like
wise below last year’s volume, and on May 21 the figure
of $110,714,000 was the lowest since February 27. Fed
eral Reserve notes in circulation dropped from $294,041,000
on April 23 to $275,477,000 on May 21, reflecting lessened
requirements for currency, and the paying out of gold cer
tificates instead of Federal Reserve notes.
P O S IT IO N
M L L IO .S
1600
R E P O R T IN G
MEMBER
BANKS,
7TH
013,000 on April 2. The trend has been generally upward
throughout April, reflecting considerably augmented hold
ings of government securities though “ other investments”
have 'also shared in the upward movement. In other se
lected cities the volume of investments changed relatively
little during April; the first and second weeks of May
showed a slight increase. Demand deposits in Chicago
and Detroit fluctuated sharplj- in April; on the thirtieth,
however, a marked increase over the preceding week W
'as
shown, a rise continued on May 7 and 14 when the total
of $1,314,709,000 on the latter date registered a new high
point. Time deposits in these cities have exhibited an in
creasing trend for months, more marked in Detroit since
the first o f April, however, than in Chicago, where de
clines were shown on two weekly reporting dates. The
aggregate for the two cities on May 14 of $677,207,000,
marked the high point for 1923 and so far in 1924. In
other selected cities time deposits have increased, though
during recent weeks the movement has been more gradual
than in Chicago and Detroit.
P O S IT IO N
FEDERAL
RESERVE
EANK
OF
C H IC A G O
D IS T R IC T
or D O L L A R S CHICAGO A N D DETROIT
1
LOANS 4 DISCOUNTS
1400
S w
1200
A / w -A *
'■
A
;m a n d d e p o s
1000
800
L a te st figures sh ow n M ay 21, 1924, in thousands o f d olla rs:
F ederal R eserv e N otes, 275,477; T ota l E a rn in g A ssets, 110,714.
600
400
TIME DEPOSIT
s
^*>
{in v e s t m e n t ^ j - C A ’
__
200
0
OTHER SELECTED CITIES
l
----- -- LOANS &DISCOUNTS
400
DEMAND DEPOSITS
pTMC O c fiili- b j
200
O
.
Tf
INVESTMENTS ' * ..............
_________________________________________________ __________ ____________________
1919
1920
1921
1922
192}
1924
*B reak in cu rv e in d icates data n ot com p a ra b le w ith p re
cedin g.
B ased on w e e k ly rep orts to this b a n k b y a p p ro x i
m a te ly 49 m em ber banks in C h icago, 13 in D etroit, an d 44
in other sele cte d cities. L a te st figures show n, M ay 14, 1924.
Loans and discounts of Chicago and Detroit reporting
member banks moved upward throughout April and the
first week of May followed by a slight downward move
ment on May 14, but the aggregate of “ other selected
cities” steadily declined with the exception of a small rise
the second week of May. Investments of reporting mem
bers in Chicago and Detroit on May 14 were $537,037,000,
slightly above the previous high point of the year, $536,-
Business Failures— Defaulting firms in the Seventh dis
trict in April decreased 0.4 per cent in number from March,
but the aggregate o f their liabilities exceeded the March
total by 28.5 per cent. Compared with the corresponding
m o n t h of 1923, A p r il failures in c r e a s e d both in number and
liabilities, the former by 26.9 per cent and the latter by
21.9 per cent. For the whole United States, decreases of
6.1 per cent in number and 49.9 per cent in liabilities were
reported in comparison with March; a gain of 12.3 per cent
was shown in number over April, 1923, while liabilities de
creased 5 per cent.
Commercial Paper— Although above the level of a year
ago, as was the case in February and March, April sales
of commercial paper by ten dealers declined 32.6 per cent
from the preceding month. This is a seasonal falling off
slightly more extensive than in 1923 and considerably
more so than in 1922 and 1921. Paper outstanding at the
close of the month had contracted 2.0 per cent from that
on March 31 and 18.9 per cent from 1923.
Dealers state that while rates during the month were
steady, an easing tendency was shown toward the close.
Some sales were made at 4 l/ 2 per cent, the customary rates
of all dealers being 4 l/ 2@ 4^/[ per cent, whereas in March
4^£ per cent was reported as customary by practically all
dealers. Demand was moderately good, being fairly brisk
Page 3 June
for the best paper, although where rates were unsatisfac
tory somewhat of a damper was placed upon buying. De
mand was not very strong from country banks, which have
been adversely affected by bad weather and road condi
tions. It is still somewhat difficult to obtain paper and
the supply with the dealers remains moderate. Loans are
not freely sought except by firms seasonally borrowing at
this time of the year.
Open Bill Market— Five open bill market dealers in the
district curtailed their acceptance activities considerably
in the five weeks preceding May 14. Average weekly pur
chases were 32.3 per cent smaller than in the four-week
period prior to the one under review. The largest de
crease in buying was from purchasers other than acceptors.
Aggregate sales were reduced 17.4 per cent, the decline be
ing due to reduction in purchases by banks, although Fed
eral Reserve bank buying, as well as that of other
investors, was augmented considerably. Holdings at the
end of the period were reduced about one-half from those
on April 9.
Extensive declines in the rates of all maturities were
made in this period. At the close bid rates for paper of
90-day and under were 3j4@3^s which compare with 4@
4% for April 9. Longer term eased from 4 % @ 4 % to 3%
Offered rates were similarly reduced.
The supply of paper was limited to some extent, while
demand was fairly good, especially for bills of 90-day and
less. Bills moved freely at the offered rates.
Acceptances— Considerable curtailment of activity in
bankers’ acceptances is evidenced by the April reports
from eighteen accepting banks in the district which ex
ecuted a volume of bills 33.4 per cent smaller than in
March. In the past years these banks customarily showed
a substantial increase in the corresponding comparison,
but operations in general this year have deviated from the
usual trends. Purchases of acceptances were augmented
30.0 per cent, while sales fell off almost half from the previ
ous month, resulting in more than doubled holdings on
April 30 as compared with March 31. Of these items, the
volumes of acceptances executed and those sold were both
more than 30 per cent under operations of a year ago,
while purchases were 36.1 per cent above April, 1923, and
month-end holdings increased to the largest amount since
March, 1923. The liability of these banks on their accept
ances outstanding at the close of the month was $29,849,321, a decline of 9.3 per cent from March, but an increase
o f 43.2 per cent in the year-to-year comparison. Monthend holdings of the banks’ own acceptances showed con
siderable gains in both comparisons.
Purchases of acceptances by the Federal Reserve bank
amounted to $10,680,791, which was the smallest amount
since November, 1921, and a decline of nearly 8 million
from those of the preceding month. Month-end holdings
were the lowest since January, 1923, the volume having
receded 11 million from the March 31 level. Sales during
the month amounted to $70,788.
Joint Stock Land banks totaling $154,997,216 increased ap
proximately two million dollars, and the Federal Land
banks with $136,792,440 gained nearly two and one-half
million. Four Intermediate Credit banks operating in the
same territory showed a reduction from March 31 in the
total of loans outstanding of nearly sixty thousand, the to
tal April 30 being $677,010.
A consolidated statement of condition of the twelve
Federal Intermediate Credit banks in the United States
as at the close of business April 30, 1924, showed an ag
gregate of $29,654,425.85 in direct loans and $18,211,367.28
in rediscounts. Government bonds and securities held by
the twelve banks totaled $5,451,437.50, and capital stock
subscriptions callable from the United States Treasury
were shown on the statement as $38,000,000.00. On the
liability side, capital stock subscribed was given asi
$60,000,000.00, surplus $152,271.20, undivided profits $329,258.67, and Federal Intermediate Credit Bank Debentures
outstanding $33,600,000.00.
VOLUM E OF PAYM ENT BY CHECK
Volume of payment by check in April as reflected by
reports of debits to individual accounts received from
twenty-four clearing house centers in the district showed
declines from March, as well as from April, 1923. In the
four largest cities of the district, Chicago, Detroit, Mil
waukee, and Indianapolis, the shrinkage from March was
3.5 per cent, and 2.2 from the corresponding month of
1923. The total volume in twenty smaller reporting cen
ters declined 2.2 and 0.6 per cent from the preceding month
and April, 1923, respectively, while the April decline in the
aggregate of the twenty-four cities was 3.4 from March,
and 2.0 from April, 1923.
A ggregate
A p r i l , 1924 P e rc en tag e C h a n g e s fro m
(0 0 0 O m it t e d ) M a r c h , 1924 A p r il , 1923
Chicago ...........
$2,934,174
Detroit .................................................
713,110
Milwaukee ...........................................
259,937
Indianapolis .......................................
145,636
Total
T o ta l
— 3.6
— 2.6
— 5.8
— 3.6
........................................$4,052,857
20 c itie s .............................................$
— 3.5
OF
PAYMENT
— 2.2
— 2.2
648,059
Total 24 cities... .................................$4,700,916
VOLUME
— 3.9
+ 6 .0
— 3.6
— 1.8
— 0.6
— 3.4
BY
— 2.0
CHECK
Billions o f Dollars
AGRICULTURAL FINANCING
Increases over March 31 in the aggregate of loans out
standing of twenty-two Joint Stock Land banks and four
Federal Land banks operating in the five states including
the Seventh district, were shown on April 30. Loans of
Page 4 June
C h e ck s
D raw n
on C l e a r i n g
H ous e
B a n k s , 7 th
District.
F igu res used are estim a tes fo r calendar m onths based on
w eek ly reports to this bank. L a te st figures show n, A pril, 1924,
in th ou san d s o f d ollars:
C h icago, D etroit, M ilw aukee, and
Indianapolis, 4,052,857; 20 Other C learing H ou se C enters, 648,059.
SAVINGS ACCOUNTS AND DEPOSITS
.
The decline of 0.3 per cent in the amount of savings de
posits from April 1 to May 1, as reported by 206 banks in.
this district, marked a reversal of the upward trend which
had been in evidence the two preceding months. The de
crease was a reflection of the declines of 0.9 and 0.5 per
cent in Illinois and Iowa, respectively, as the other three
states showed increases of 0.2 per cent in Michigan, 0.4 per
cent in Wisconsin, and 1.0 per cent in Indiana. All of the
five states continued to show increases over a year ago, the
aggregate gain amounting to 6.8 per cent; the largest
growth was in Michigan where an average increase o f 11.4
per cent was reported. Comparison with the 1920 average
showed a district increase of 20.7 per cent, Michigan, Illi
nois, and Iowa showing the greatest gains.
In contrast with the decline in the amount of savings
deposits, between April 1 and May 1, there was a gain of
0.1 per cent in the number of savings accounts; Illinois
and Iowa, however, showed declines of 0.2 and 0.4 per
cent, respectively, while gains were reported for the other
three states. There was an increase of 0.7 per cent in the
aggregate number of accounts reported for the district on
AGRICULTURAL PRODl
Direct reports from 136 county agents representing 188,254 farmers show that in the Seventh district approxi
mately the same acreage is being planted to corn this
spring as in 1923. Wheat seeded last fall is in fairly good
condition save in counties in central Illinois and Indiana
where the crop suffered some damage from insufficient
snow protection during the closing months of the winter.
County agents report not only a smaller crop of pigs this
spring than in the corresponding season last year but also
fewer marketable hogs on farms than a year ago. The
available supply of farm hands has increased only slightly
and wages are holding firm, the wage trend in thirty-one
counties being even higher than in the early part of 1923;
rates have been revised downward in fifteen counties
where the supply of laborers is slightly greater than the
demand.
Despite a smaller abandonment of w in ter wheat land
this spring than usual, the acreage remaining for harvest is
below normal. The Bureau of Agricultural Economics on
May 1 estimated a total production of 84,519,000 bushels
o f winter wheat for the five states lying largely within
the Seventh district; which compares with 126,008,000
bushels, the final estimate for 1923. A total production of
553.013.000 bushels of winter wheat and 61,739,000 bushels
of rye is forecast for the United States compared with
572.340.000 and 63,023,000 bushels, respectively, harvested
in 1923. Stocks of hay are reported as slightly less than
a year ago.
FLOUR
The flour industry manifested a seasonal decline in ac
tivity during April compared with the preceding month,
according to figures reported by thirty-eight mills in this
district. These operated at an average of 49.0 per cent of
capacity compared with 53.3 per cent in March and 41.3
per cent the same month a year ago. Aggregate produc
tion during April showed a decline of 8.0 per cent from
the March level, wheat flour and other flour decreasing
May 1 compared with a year ago, but comparison with the
1920 average showed a decline of 2.5 per cent.
Included in this compilation are the last figures reported
by one Illinois bank and by three Iowa banks which were
closed before May 1.
BONDS AND INVESTM ENTS
The investment market during April was characterized
by uncertainty, with no definite trend. Easing in money
rates, however, produced a moderate demand the early
part of May, and new' offerings w’ere well taken. Depres
sion in the stock market has had a tendency to divert
funds from stocks into short-term note issues. Govern
ment securities have been strong on account of many busi
ness firms placing money not needed for immediate use
in their business in this form of security rather than in
the bank.
Public utilities and rails are meeting with good demand;
municipals were rather sluggish until the second wreek in
May when an improved demand became apparent with a
firming-up of the market; and high-grade real estate bonds
have had a ready sale. Foreign bonds strengthened with
the generally favorable reception of the Dawes plan.
ION AND CONDITIONS
6.3 and 24.9 per cent, respectively. Compared with April,
1923, total output increased 23.4 per cent, wheat flour show
ing an increase of 31.9 per cent, while flour other than
wheat declined 30.7 per cent.
Stocks of both flour and wheat held at the mills de
creased during April, the former 15.1 per cent and the
latter 9.0 per cent, but compared with a year ago stocks
of flour declined 17.4 per cent, while wheat showed little
change.
Sales of flour during the month were 7.1 per cent smaller
in volume and 5.5 per cent less in value than during
March, but compared with April, 1923, sales increased 19.7
per cent in volume while little change in value wras
shown.
Receipts and shipments of flour from Chicago, accord
ing to figures furnished by the Chicago Board of Trade,
also reflect the d eclin in g a ctiv ity in the in du stry.
R eceip ts
during the month amounted to 600,000 barrels compared
with 972,000 barrels in March and 1,102,000 barrels the same
month last year. Shipments of flour from Chicago aggre
gated 569,000 barrels compared with 703,000 barrels in the
preceding month and 915,000 barrels during April, 1923.
GRAIN M ARKETING
Domestic demand has been light and receipts of grain
from the country limited. The decline in grain move
ment from the farms is customary at this time and is usu
ally followed by increased marketings after the close of
the spring planting season. Grain receipts were greater
at interior primary markets in April, 1924, than in the cor
responding month of either 1921 or 1922, but fell beknv
the level of a year ago and of the preceding month. More
wheat and oats were forwarded from interior primary cen
ters in April than in either the preceding month or the
corresponding period last year. Prices became somewhat
firmer as the month progressed but the average for April
was less than in March. April transactions on the Chi
cago Board of Trade calling for future delivery were conPage 5 June
siderably less in total volume than in March but in
creased slightly over February.
Foreign demand continues about on the same level as
in previous months with a large portion of European re
quirements being supplied by countries other than the
United States. Exports of oats, barley, and corn declined
in April compared with March, but those of wheat and rye
increased.
Visible wheat supplies in the United States, Canada, and
the United Kingdom were 219,403,000 bushels on May 10,
1924, compared with 252,317,000 bushels on April 12, 1924,
and 156,704,000 on May 12, 1923.
VISIBLE SU PPLY OF GRAIN IN TH E UNITED STATES
Stocks in private and public warehouses, at principal points of accumu
lation, at lake and seaboard points, and in transit by water in the United
States. Figures supplied by the Chicago Board of Trade.
(In thousands of bushels)
May 17, 1924
W heat
C orn
O ats
B ariev
R ye
15,466
8,903
912
19,788
Warehouses and Afloat........ 46,744
685
1,913
101
Bonded ................................. 12,816
April 12, 1924
14,076
22,319
21,503
1,162
Warehouses and Afloat ....... 56.673
1,206
1,115
200
Bonded ......................... ....... 5,985
May 19, 1923
17,997
12,393
16,167
1,809
Warehouses and Afloat ....... 37,110
479
1,396
403
Bonded ......................... ....... 2,554
S H IP M E N T S OF CORN A N D W H E A T
P R IM A R Y M A R K E T S — U N IT E D
A T IN T E R IO R
STATES
over March. The total volume of meats and lard for
warded in April for export was less than in the preceding
month; this was due partly to the exchange situation and
partly to supplies in foreign markets being somewhat
greater than needed for immediate consumption require
ments. Prices on the Continent have been about on a
parity with those in the United States, but in the English
markets they have fallen below.
M OVEM ENT OF LIVE STOCK
Fewer hogs and sheep and more cattle and calves were
received at public stock yards in the United States during
April than in March. H og slaughter declined but that for
cattle, calves, and sheep increased, in a comparison of
April totals with those of the preceding month. The April
receipts and slaughter of cattle, calves, and hogs were
greater, while those of sheep and lambs showed smaller
volume than the April average of the five years 1919-1923.
LIVE STOCK SLAU G H TER
C a tt l e
Yards in Seventh District
April, 1924 ..........
217,183
Public Stock Yards in U. S.
April, 1924...........................................647,764
March, 1924...............................
632,886
April, 1923.........................................680,307
H ogs
S heep
C alves
918,821 194,964
171,344
2,809,188 725,918
2,975,596 719,010
2,933,601 855,323
460,124
358,083
399,800
The movement of live stock back to feed lots on the
farms gained in April over March, 1924, as well as over
April last year, although the total for the four months
ended April 30 was somewhat less than for the corre
sponding period in 1923.
AVER AG E PRICES OF LIVE STOCK
Per hundred pounds at Chicago
W e e k E nded
M ay 10,
1924
Native Beef Steers (average) ......... $ 9.80
Fat Cows and Heifers............. ......... 6.75
Canners and Cutters............... ......... 3.25
Calves ................................................... 8.50
Stockers and Feeders............... ......... 7.65
Hogs (bulk of sales)............... ......... 7.45
Sheep ......................................... ......... 7.60
Yearling Sheep ......................... ......... 12.10
Lambs ......................................... ......... 15.60
C lass
L a te st figures sh ow n A pril, 1924:
W lie a t shipm ents, 39.0.
C orn shipm ents, 107.0; and
MEAT PACKING
The aggregate April sales in dollars reported by
fifty-nine meat packing companies in the United States
were 1.7 per cent less than in March and lowered 2.9 per
cent from the corresponding period last year. Produc
tion remained at about the same rate as in the preceding
month, although it receded toward the close of April as
shown by employment figures, which declined 5.8 per cent
in number, 7.4 per cent in hours worked, and 6.9 per cent
in total payrolls in the period covered by the last paydate in April compared with the corresponding period in
March. May 1 inventories shrank slightly from the
volume at the beginning of April, but lard holdings in
creased. Cold storage stocks exceeded the 1921-1923 aver
age for May 1,, although smaller than the 1919-1923 fiveyear average for that date. Prices of veal and lard eased
somewhat, and pork loins showed a strengthening ten
dency, but the wholesale prices of most other products
deviated little from those prevailing at Chicago during
March.
Although export conditions during May showed signs
o f betterment, the demand from both the Continent and
the United Kingdom did not improve materially in April
Page 6 June
M o n t h s of
M a rc h
A p r il
1924
1924
A p r il
1923
$ 9.95
$ 9.55
? 9.00
6.65
3.20
8.95
7.00
7.40
10.05
13.10
16.10
6.05
3.20
9.50
6.80
7.35
9.60
12.50
15.65
6.55
3.60
8.40
7.10
8.10
7.90
12.00
13.30
DAIRY PRODUCTS AND POULTRY
Seasonal expansion in output continued in the dairy
product group during April. The production of creamery
butter was 13.4 per cent greater than in March and 6.0
per cent above April a year ago, according to reports sent
direct to this bank by representative creameries in the
Seventh district. Statistics issued weekly by the Ameri
can Association of Creamery Butter Manufacturers indi
cate a slightly greater output in the United States during
April than in either March, 1924, or April, 1923. The April
output of cheese by W isconsin factories increased over
the preceding month, but showed a small recession from
a year ago. District sales of creamery butter gained 5.4
per cent over March and were 7.8 per cent in excess of
those in April last year, according to statistics compiled
from sales reports sent to this bank by representative
firms.
April receipts of dairy products and poultry were larger
at Chicago than those in either the preceding month or a
year ago. In the United States, May 1 inventories of dairy
products almost doubled the holdings on May 1, 1923, those
o f butter and eggs being slightly more than on April 1.
Stocks of poultry were smaller than at the beginning of
April and exceeded those on the corresponding date last
year.
FUEL
AN D
POWER
COAL
Despite the continued dullness in the coal market, prices
of bituminous coal remained practically stable from the
middle of April to the middle of May, screenings from a
number of fields being quoted by the Hopkins Daily Coal
Reporter at an even higher level on May 14 than on April
16. This interruption of the downward trend of coal
prices, however, was not a reflection of any improvement
in demand, but rather of the marked curtailment in sup
ply.
Illinois production during April amounted to only 3,812,000 tons, a smaller tonnage than has been mined in any
month since the strike of 1922, and, with the exception of
that year, less than the output for any April since 1916,
while Coal Age reported over 100 mines of the 393 shipping
units of the state permanently shut down and about the
same number closed with indefinite plans for reopening.
That similar conditions prevail in Indiana fields is evi
denced by the fact that the percentage of time lost by
miners in April because of a lack of orders was almost twice
as large as in March.
Lack of demand, coupled with the
cessation of operations in the Southwestern states and in
parts of Western Kentucky and Kanawha fields, reduced
production in the entire country to less than 7,000,000 tons
a week during April compared with a rate of over 11,000000 tons the early part of 1924. The expansion in produc
tion during the first full week in May to a level slightly
above the 7,000,000-ton mark, may be attributed in part to
the resumption of operations in the Southwestern states.
The lake trade has been developing more slowly than
last year, according to figures furnished by the Ore and
Coal Exchange. Total loadings at Lake Erie ports for
the 1924 season to the end of April amounted to 949,461 net
tons, with vessel fuel aggregating 60,213 tons and cargo
889,248 tons; cumulative loadings in 1923 from the begin
ning of the lake season to the end of April totaled 1,152,549 tons, 1,105,074 tons of which were cargo, and 47,475
tons vessel fuel. Shipments to Lake Michigan ports dur
ing the first four months of 1924, amounting to 353,788
tons were 48,256 tons greater than in the same period in
1923, whereas distribution to Lake Superior ports during
PRODUCTION
the same intervals declined from 493,876 tons in 1923 to
341,228 tons in 1924.
With the exception of the week ended April 26 when
two holidays caused a reduction in output to 1,205,000 tons,
anth-acite production in the latter part of April, including
the week ended May 3, was maintained at a weekly rate
of about 1,600,000 tons compared with more than 2,000,000
tons a week in the same period in 1923. The increase in
output during the week ended May 10 to 1,924,000 tons
was reported by the Geological Survey to be largely due
to the settlement of local labor difficulties and to a more
complete operation of mines where work had been ham
pered by floods. The increase in anthracite prices beginning
May 1, caused chiefly by the cu-tailment o f output during
the preceding period, was followed by an improvement in
demand.
ELECTRIC ENERGY
April declines in the activities of electric energy pro
ducers are seasonal for all items except industrial sales
and plant capacity. The recession in industrial sales is
significant in view of the fact that it is the first decline in
April from March shown by the available data of this bank
covering a period of six years. Operations in April, while
on a larger scale than a year ago, were less markedly in
advance of 1923 than in the other months of the year. The
number of industrial users served by reporting companies
in April was 0.2 per cent larger than in March and 5.8 per
cent more than in April, 1923. The average increase of
the first four months of this year over the corresponding
period in 1923 was 6.0 per cent.
CHANGES IN APRIL, 1924, FROM PREVIOUS MONTHS
Compiled from direct reports to this bank from nine companies
P er c e n t c h a n g e f r o m
A p r il
M a rc h
A p r il
1924
1924
1923
Plant capacity (K .W ).......... ..................._
1,859.785
— 0.1
+ 13.2
Plant output (K .W .H .)........... ................. 548,995,556
— 9.4
+ 9.2
Plant output (daily average—K .W .H .)— 18,299.852
— 6.4
+ 9.2
Peakload demand (K .W .).... ...................
1.315,489
— 9.4
+ 6.5
Industrial sales (K .W .H .)........................ 226,336,823
— 2.9
+ 9.9
Industrial sales (working day average—
K.W .H .) .................................................
8,705,262
A p r il
1924
R a tio peak load d e m a n d to p la n t capacity........... 70.7
Load factor ............................................................. 58.0
— 2.9
M a rc h
1924
78.0
56.1
+ 5.7
A p r il
1923
75.2
56.5
INDUSTRIAL EMPLOYMENT CONDITIONS
There wras a noticeable lack during April of the usual
acceleration of activity within the manufacturing industries
of the district. The reports indicate a slowing down in
practically all industrial lines, but the curtailments are not
large and outdoor work is amply able to absorb an extra
supply of labor at this time. The situation is in strong
contrast to conditions of a year ago when manufacturers
were having difficulty in obtaining the necessary labor for
their requirements and when there was a strong tendency
toward making wage increases.
The returns received by the Illinois State Department of
Labor covering 300,000 industrial workers of that state,
showed declines for April, amounting to 1.2 per cent in
men and 1.0 per cent in earnings. For Wisconsin, as re
ported to its Industrial Commission by plants employing
83,000 men, the corresponding losses were 2.7 per cent
and 4.3 per cent, respectively. In the states of Indiana,
Iowa, and Michigan, reports sent directly to this bank in
dicate a somewhat heavier curtailment, the average loss
for approximately 30,000 men amounting to 3.7 per cent.
The combined figures for all of these states showed de
clines of 1.6 per cent in men and 2.3 per cent in the ag
gregate earnings.
O f the various industries represented in these returns,
car construction furnishes the only noteworthy exception
to the downward tendency. Stone, clay, and glass products
also gained over the preceding month but the change was
less pronounced. Metals and metal products as a whole
showed a decrease of about one per cent in both employ
ment and earnings. The heaviest declines were experienced
in the clothing and the leather industries.
Page 7 June
EMPLOYMENT AND EARNINGS -
SEVENTH FEDERAL RESERVE DISTRICT
Number of wage earners
week ended—
I n d u s t r ia l G rou p
April 15
All groups (10)..................................................................... .
Metals and metal products (other than vehicles)............
Vehicles ................. ............................................................. .
Textiles and textile products............................................
Food and related products...................................................
Stone, clay, and glass products.................................. .......
Lumber and its products.....................................................
Chemical products...................................................................
Leather products...................................................................
Rubber products.....................................................................
Paper and printing.................................................................
March 15
403,868
166,645
45,065
30,054
51,850
12,952
38,825
10,746
16,228
2,481
29,022
410,393
168,303
43,130
33,798
52,029
12,748
40,055
11,108
17,201
2,624
29,397
Total earnings
week ended—
Per Cent
Change
April 15
March 15
Per Cent
Change
— 1.6
— 1.0
+4.5
— 11.1
— 0.3
+ 1.6
— 3.1
— 3.3
— 5.7
— 5.4
— 1.3
$9,879,195
3,718,390
1,361,525
647,808
1,296,597
379,120
905,377
273,373
351,778
63,471
881,756
$10,113,645
3,758,698
1,297,717
790,995
1,342,101
367,060
938,812
282,273
379,568
62,267
894,154
— 2.3
— 1.1
+ 4.9
— 18.1
— 3.4
+ 3.3
— 3.1
— 3.2
— 7.3
+ 1.9
— 1.4
MANUFACTURING ACTIVITIES AND OUTPUT
AU TO M O BILE PRODUCTION AND DISTRIBU
TION
April statistics indicate a slight recession in automobile
production in comparison with March, a decline which is
contrary to the seasonal gains usually in evidence during
the spring months. Compared also with April, 1923, total
production declined, the first reversal since 1921 of the up
ward trend shown in year-to-year comparisons. Statistics
received from identical manufacturers representing prac
tically complete March production show 336,968 passenger
cars produced during April, a loss of 3.2 per cent from
March and 2.0 per cent from April, 1923. The output of
trucks during April by manufacturers reporting a March
output of 33,061 aggregated 34,977, a gain of 5.8 per cent
over March and a loss of 4.9 from last year. During April,
1923, passenger cars produced increased 7.6 per cent over
March, while truck production gained 8.0 per cent.
New automobiles and motorcycles actually sold at both
wholesale and retail, which had been reported up to May 1,
aggregated $167,466,664 for the five states including the
Seventh Federal Reserve district, a- decrease of 6.3 per cent
from the April 1 figure, and a gain of 82.3 per cent over
May 1, 1923. Actual sales o f automobile trucks and motor
wagons amounted to $18,308,488, a gain of 25.6 per cent over
the preceding month, and of 58.6 per cent over the corre
sponding period last year. Actual sales of automobile parts
and accessories aggregating $17,625,533 increased 24.2 per cent
over the preceding month and decreased 7.8 per cent from
the corresponding month last year. These figures are not
comparable with the April production or factory shipment
figures.
W ith the April curtailment of production, and ship
ments smaller than in March, stocks of cars in dealers’
hands and in warehouses were withdrawn in response to
retail demand, which showed a marked improvement over
March. Reports received by this bank from warehouses
in Chicago indicate a fair movement of cars to consumers,
but the number of cars still held is in excess of those held
a year ago, although replacements have fallen off.
Distributors and dealers in the Middle West report gains
in the wholesale and retail distribution of new cars during
April compared with the preceding month and April a year
ago, resulting in a smaller number o f new cars on hand
April 30 compared with March 31, although there was a
gain compared with a year ago, at which time dealers
were experiencing difficulties in receiving new stocks. Used
car sales also increased compared with the previous month
and year, while the number on hand April 30, decreased
from March 31, but continued at a higher level than a
Page 8 June
year ago. Used cars on hand April 30 represented 111 per
cent of the total April sales of used cars.
DISTRIBUTION OF AUTOM OBILES
Changes in April, 1924, from previous months
P er c e n t c h a n g e fro m
M a rc h
A p r il
Number of new cars sold
Wholesale ..................... ..
Retail ........................... ..
Value of new cars sold
Wholesale ..................... ..
R etail............................. ..
New cars on hand at end
of month
Number ......................... ..
Value ........................... ..
Used cars sold during month
Salable used cars on hand
at end of month
Number ......................... ..
Value ........................... ..
C o m p a n ie s in c l u d e d
M arch
A p r il
1924
1923
1924
1923
+14.1
+21.3
+23.2
+ 1.8
43
74
37
59
+17.6
+29.9
+ 16.1
— 1.1
43
74
37
59
— 21.4
— 22.7
+28.7
+75.5
+43.2
+ 8.9
7S
75
74
59
— 6.5
— 6.6
+ 17.7
+ 8.7
70
70
47
47
54
54
Shipments of automobiles during April reported by the
National Automobile Chamber of Commerce decreased in
both carload volume and driveaways from March, 1924,
and April, 1923, while shipments by boat increased season
ally over March, but were smaller than a year ago.
Passenger cars exported from the United States during
March numbered 14,035, with a value of $9,572,675 com
pared with 13,329 and $9,527,171, lespectively, in February.
A year ago 11,811 were exported with a value of $8,217,276.
Exports of trucks also increased, totaling 2,3'29 in number
and valued at $1,607,518 compared with 1,704 and $1,507,277,
respectively, in February and 1,564 and $1,046,075, respec
tively, in March a year ago.
CASTING FOUNDRIES
Contrasting with operations a year ago when marked
declines from the preceding month were registered, pro
duction and shipments of reporting casting foundries in
April rose above March, although the increases were dis
tinctly smaller than those shown in the two preceding
months. In comparison with April, 1923, however, pro
duction and shipments declined, but less extensively than
in any other month in 1924.
The weighted average per cent of capacity at which
twenty-^our foundries reporting on the item operated in
April was 77.0 per cent. While comparatively little diffi
culty is being encountered in collections, some foundries
find them slow in Southern Illinois and Indiana.
CHANGES IN APRIL, 1924, FROM PREVIOUS MONTHS
Compiled from direct reports to this bank
P er c e n t c h a n g e f r o m
M arch
A p r il
Pig iron consumed...................
Iron scrap consumed...............
Steel scrap consumed......... ....
Total tonnage consumed.......
Castings shipped (tonnage)....
Castings shipped (dollars)
1924
— 4.5
+ 9 .4
+ 8 .5
+ 5 .3
+ 1 .9
+ 1.7
1923
+ 0.1
— 13.2
— 4.1
— 3.7
— 7.5
— 3.8
C o m p a n ie s in c l u d e d
M arch
A p r il
1924
28
28
28
28
27
27
1923
26
26
26
* 26
25
27
STOVES AND FURNACES
Following the increases of February and March, ship
ments of stoves and furnaces in April were in lesser vol
ume than in the preceding month, the seasonal decline be
ing considerably smaller than in 1923. A lessened volume
of orders continued the trend of the two preceding months.
April showed a slightly smaller decline in production than
did March.
Collection difficulties are being encountered by some of
the companies chiefly in the mining and agricultural dis
tricts of the Middle West, and in the East.
CHANGES IN APRIL, 1924, FROM PREVIOUS MONTHS
Compiled from direct reports to this bank
P er c e n t c h a n g e fro m
A p r il
M arch
Shipments .................................
Orders accepted .....................
Inventories ...............................
Operations (moulding room)..
1924
— 7.4
— 12.9
+ 6.9
— 2.2
1923
+ 6.9
— 2.3
+ 8.1
+ 8.1
C o m p a n ie s in c l u d e d
M arch
A p r il
1924
16
12
11
15
1924
16
12
11
13
per cent from March, reaching the lowest point since
February, 1922. The composite price of iron and steel
products in April continued even more precipitately the
decline of the preceding month and averaged the lowest
since January, 1923. Scrap metal likewise coursed down
ward, in a number of instances declines of 20 per cent and
more being recorded from the peak of this year reached
near the close of February by most iron and steel scrap
products.
Zinc— Production of slab zinc in April was 44,949 tons,
the smallest since December, 1923, and a falling off of 5.9
per cent from that of March; shipments declined from
52,893 tons to 44,245 tons; while stocks were augmented
2.2 per cent. Zinc ores mined in the Joplin district aggre
gated 52,609 tons which compares with 84,594 tons in
March. The average price declined from $41.50 to $39.52.
IRON AND STEEL
AGRICULTURAL M ACHINERY AND EQ UIPM ENT
The unfavorable factors in the iron and steel trade ob
servable in March became increasingly operative in April,
reports on that month pointing to general weakness in the
more significant indices of conditions in the industry.
Unsettlement of prices, because of frequent concessions
by mills in need of new tonnages and willing to compete
for them by price cutting, served as a deterrent to buyers,
the majority of whom preferred to wait for steadier prices
which they expected to crystallize at a lower level. Shipments
during April continued in large volume which fact, com
bined with the slackness in new buying, served to reduce
the volume on mill order books considerably. As a result,
mill operations in practically all districts were consider
ably curtailed and at the close of the month the rate of
production was about 20 per cent below the peak of
March. Although the placing of future orders for steel
was markedly light in April, immediate business, as in
March, was in fair volume. There was practically no ac
tivity in the pig iron market and prices were readily cut
by sellers in the attempt to obtain new business. Even
with the concessions, however, orders were few and the
tonnages small. Toward the close of the month, with
prices still receding, some slight gain in inquiry was no
ticed but nothing much in the way of actual buying de
veloped.
Reports from Chicago mills give evidence of much the
same situation as has obtained throughout the country and
recession in new business has been pronounced, although
it cannot be said that order books underwent any serious
depletion. Customers are drawing extensively on what
stocks they have, and orders, as they come in, invariably
call for prompt shipment. Some recession in steel prices
in this district occurred during April, but on the whole
fair strength was shown. Pig iron at Chicago declined
twice, 50 cents near the middle, and the same at the close
of the month.
Pig iron production in April was 3,233,428 tons, reced
ing 6.7 per cent from March; on the daily average basis the
falling off amounted to 3.6 per cent. In the Illinois and
Indiana district the recession was practically the same
as in the country as a whole. Production of steel ingots
was at the daily average rate of 130,241 tons, a decline of
1.9.1 per cent from the record figure of March. Unfilled
orders of the United States Steel Corporation declined 12.0
The upward trend, begun in February, continued in
April, and agricultural machinery and equipment sales in
that month reached the highest level attained so far in
1924, the total being slightly greater than in April, 1923.
Exports were greater than a year ago. Production de
clined from March, the rate being 61.5 per cent
of the theoretical normal for April. Twenty-four firms re
ported that dealers’ stocks were moving into farmers’
hands more rapidly than a month ago, but twenty-two of
the companies found no improvement. Collections con
tinued slow throughout the United States and especially so
in the southwestern, central western, and northwestern
parts of the country.
PRODUCTION AN D SALES OF FARM EQ U IPM EN T IN THE U . S.
Changes in April, 1924, from previous months
P er c e n t c h a n g e f ro m
M arch
A p r il
1924
Domestic sales .............. . ....+ 1.8
Sales billed fo r e x p o r t ........... .. +32.5
Total d o m e s tic a n d e x p o r t
sales ................................... ....+ 7.3
Production ............................. .. — 4.3
Sales based on dollar amounts.
C o m p a n ie s in c l u d e d
M arch
A p r il
1923
— 7.0
+96.6
1924
113
113
1923
113
113
+ 5.3
— 11.6
113
104
113
104
Production computed from employment.
SHOE MANUFACTURING, TANNING, AND HIDES
Factory shipments of shoes during April exceeded pro
duction by 7.3 per cent, and as a result inventories were
smaller on May 1 than at the beginning of the preceding
month. The recession in production and shipments was
seasonal, although the decline from March was less
marked in 1924 than in either 1922 or 1923. Twenty-three
of the companies reported unfilled orders sufficient for
nearly six weeks’ business, based on the rate maintained
in April. Inventories reported for May 1 by twenty-seven
companies were equivalent to 87.3 per cent of their April
shipments. Collections especially in the cotton belt states
continue slow.
CHANGES IN TH E SHOE M AN U FAC TU R IN G IN D U STR Y IN
APRIL, 1924, COMPARED W IT H PREVIOUS MONTHS
P er c e n t c h a n g e fr o m
M arch
A p r il
Production .............................
Shipments.................................
Inventories .............................
Unfilled orders .......................
1924
— 3.5
— 4.5
— 1.9
— 2.6
1923
— 6.0
+ 4.1
— 5.4
— 27.2
C o m p a n ie s in c l u d e d
M arch
A p r il
1924
35
35
33
34
1923
35
35
33
34
District production of leather was indicated as lower in
April than in either the preceding month or a year ago.
Prices generally are unchanged from those a month ago,
although calf leather is firmer.
Page 9 June
Packer green hide markets showed greater activity with
prices lower at Chicago during April than in March. Calf
skins in greater amount were sold in April than in the
preceding month but prices held firm. Sales of country
hides have been limited owing to firm asking prices by
dealers. The volume of green hides and skins shipped
from Chicago was somewhat less in April than in March.
FURNITURE
Furniture manufacturing in this district slowed down
during April, according to reports from seventeen firms
which showed that operations averaged 76.7 per cent of
capacity compared with 81.4 per cent in March.
According to figures reported by twenty firms, orders
booked declined 37.2 per cent and shipments 20.8 per cent
from the March level, and comparisons with a year ago
showed decreases of 23.8 and 11.2 per cent, respectively.
Unfilled orders, based on reports from eighteen manufac
turers decreased 22.7 per cent during April, leaving about
four weeks’ business on hand at the end of the month;
comparison with a year ago, according to figures for sev
enteen firms, showed a decline of 55.1 per cent. Collec
tions were reported slow in some sections of the country.
RAW W O O L AND FINISHED W OO LEN S
The continued inactivity in the domestic wool market
during the last month was reflected in further price de
clines.
According to reports, the principal inquiry during
the last few days of April was centered among the finer
grades, but this interest was insufficient to strengthen
prices for these grades.
The fact that foreign markets
remain strong has led to a continuation of the re-export
ing of bonded wools abroad in some volume.
Few pur
chases of the new clip were reported during April, dealers,
for the most part, being unwilling to buy at the prices
asked.
As May approached, however, buying in Western
primary markets became more general and sales of Utah
wools, as well as o f those from adjoining sections, were
effected at 42 cents a pound in the grease.
Conditions in the woolen goods trade remain very un
satisfactory, with little activity either in men’s wear or
women’s wear lines, the latter being affected not only by
slow demand, but by labor difficulties as well.
BUILDING MATERIALS AND CONSTRUCTION ACTIVITIES
April was a comparatively dull month in the lumber
trade. Sales of twenty-nine wholesalers in the Seventh
district were 10.9 per cent less than in the same month last
year, although there was an increase of 8.7 per cent shown
over March—a reflection of seasonal building activity. O r
ders received were for small amounts, and to cover im
mediate needs only, the majority of these coming from
retail yards, flooring, and sash and door factories. Demand
for hardwoods fell off considerably, owing to reduced oper
ations in the automobile industry. There was also a con
traction in orders from furniture manufacturers. The con
sequence of this dullness in trade was a general softening
in prices, especially of softwoods; also, stocks remained
stationary, and, if anything, were above those held last year.
Orders for common brick increased somewhat in Iowa,
but demand for both brick and cement remained quiet at
country points in that state during April, as farmers are
buying very conservatively. Fuller operations were re
ported in the Illinois brick industry, while Chicago manu
facturers were still having difficulty in keeping up with
orders. Weather conditions which delayed drying were
partly responsible for this situation. Cement production
for the entire country continued to expand and shipments,
although slightly less than in April, 1923, were 42 per cent
greater than in March this year, and compared favorably
with other years. There was a decrease of 5.8 per cent in
April stocks of cement from the preceding month, but they
are still at a very high point. There were no changes in
the prices of either cement or common brick in this district
during April.
Collections are slow in localities depending on the farmer
trade, especially in the southern part of Iowa. The ma
jority of the reporting firms in the above lines, however,
state that collections are about the same as last year and
term them satisfactory.
Page 10 June
CONTRACTS AND PERMITS
A gradual lessening in building activity was apparent
during April in the Seventh Federal Reserve district. April
is usually the seasonal peak month of the year and, al. though this year’s figures conformed to this trend, yet the
increases over the previous months were not so great as
in other years. Contracts awarded in this district increased
10.2 per cent over March in comparison with 25.7 per cent
in the corresponding period last year. They fell 11.5 per
cent below April, 1923, and the figures for the first four
months of the year were 1.3 per cent under those for the
same period last year. Of the five states included in the
district, Illinois alone showed a gain over last year in con
tracts awarded. Iowa showed the largest decrease, 46.2 per
cent, but reported a decided increase over March of this
year.
Statistics on prospective building revealed approximately
the same trend as did actual contracts let. Permits issued
by fifty cities in the Seventh district increased 15.6 per cent
in estimated cost over March, but were 23.1 per cent less
than those issued in April last year. Illinois figures, how
ever, showed a decided falling off from a year ago, owing
to the enormous volume of permits issued in Chicago in
April, 1923. This city surpassed all others at that time
in the increase of permits issued, the index number stand
ing at 711.9. Indiana was the only state in which the esti
mated cost of April permits was less than in the preceding
month, the result of generally lessened industrial activity
in that state. O f the five large cities of the district, build
ing expansion, as compared with last year, was greatest
in Detroit, the value of permits issued there in April
amounting to $20,128,862, an increase of 68.8 per cent over
April, 1923, and of 13.7 per cent over March this year.
Des Moines, also, showed a noticeable gain over a year
ago, but losses were reported for the other three cities. A l
though Chicago permits were much less in estimated cost
than last year, the number of permits issued there was un-
usually large and increased 27.8 per cent over April, 1923.
The major portion of building activity during April was
in residential construction. Contracts awarded for that
purpose increased over both the preceding month and a
year ago. Of the total amount of permits issued in thirtyone cities of the district, 56.5 per cent were for residential
building. Last year the ratio stood at 50.3. Permits were
also issued for a considerable amount of public building.
MERCHANDISING CONDITIONS
W H O LESA LE TRADE
April returns from reporting wholesalers in this district
indicate varied conditions among the different commodity
groups as well as among individual firms within each group.
As compared wT March, 1924, hardware reports present
ith
the only clearly defined trend, with April sales for all but
two firms heavier than during the preceding month. Gro
cery firms are divided, twice as many registering increases
as decreases, while drug and shoe dealers show a fairly
even distribution. In dry goods, smaller April sales for the
majority of firms resulted in an average decline, less marked
than corresponding changes in the three preceding years,
but only slightly offsetting the February-March decrease
peculiar to this year.
Sales comparisons with April, 1923, also are mixed, the
majority of drug and hardware firms showing more fre
quent gains, but for dry goods and groceries, declines pre
dominating. Total sales for the first four months of 1924
are less than in 1923 for more than half the firms in each
group except groceries.
Various stock trends likewise were apparent, grocery,
drug, and shoe inventories generally lower on April 30 than
a year ago, but dry goods and hardware both averaging 5
per cent increases. The last named group showed the only
net gain over March 31, 1923— the result, however, of stock
ing up during the month by half the firms.
In collections percentage changes from a year ago range
from 12 per cent decline for shoes to 6 per cent increase
in drugs, while comparisons with March, 1924, show in
creases in the cases of all but eleven firms, which reported
declines from the preceding month.
1923, however, stocks were generally larger this year, aver
aging for the district a gain of 11.1 per cent. A study of
average sales during the first four months of 1924 with
average stocks during the same period for forty-three
firms shows twenty-five inventoried proportionately higher
than in 1923, and twenty-three higher than in 1922. Out
standing orders continued the slightly downward trend
apparent since January, the average for April being 7.1
per cent of purchases during 1923.
SPECIALTY STORE TRADE
Marked expansion during April in wearing apparel sales
was apparent from reports made to this bank by women’s
specialty and men’s clothing stores, all of which showed
gains over the preceding month. Comparisons with a year
ago also are favorable. In general, inventories were re
duced during the month.
CHAIN STORE TRADE
Chain store sales during April vary in comparisons with
the preceding month, half the systems reporting regularly
to this bank showing increases over March, and half
decreases. For the majority of firms, sales were larger
than during the same month of previous years.
DEPARTMENT STORE TRADE
M AIL ORDER TRADE
April sales of Chicago’s two largest mail order houses
increased over March by 7.6 per cent, a contrast to the
usual decreases at this time, and largely the result of Easter
trading. Compared with the corresponding month in pre
vious years, combined sales were 10.2 per cent ahead of
last year, and 53.3 per cent and 48.1 per cent larger than
in 1922 and 1921, respectively. The gain of 9.4 over 1920
is the first noted this year.
With two exceptions, April sales of department stores
reporting to this bank exceeded the March volume of busi
ness. This expansion, reflecting the late Easter, compares
with a similar increase in 1922, and, though less, corre
sponds to the March gains in 1921 and 1923, in both of
which years Easter came early.
Eighty per cent of the firms reported increases also over
April, 1923, amounting on a daily average basis, however, to
only 5 per cent, the unseasonable weather this year tend
ing to postpone the usual spring stimulus to trade. Cumu
lative sales for the first four months of 1924 are 7.3 per
cent ahead of a year ago.
Collections for the same period average 45.0 per cent of
accounts outstanding, as compared with 46.7 per cent, the
1923 ratio, and 43.6 per cent two years ago. For April alone,
three-fourths of the stores reported heavier collections than
a year ago or during March.
With net inventory changes during the month about
evenly divided between decreases and increases, aggregate
stocks on hand for the group remained practically un
changed from the March 31 level. Compared with April 30,
TRANSPORTATION
Curtailment in commercial activity, as shown by reports
from industries generally accepted as indicators of cur
rent trends, is reflected in the course of freight carloadings.
After advancing to a peak on March 1 for the first quarter
of the year, traffic has since trended downward at prac
tically the same rate at which it increased during the cor
responding period of last year. An analysis, however, of
the cumulative freight carloadings since January 1 indicates
that this recession has not made the comparison unfavorable
with traffic conditions of a year ago. During thirteen con
secutive weeks of this year the cumulative volume of freight
carloadings exceeded that of the same period of 1923, al
though this condition was slightly reversed with the addi
tion of the report for the week ending May 3.
During the first quarter of 1924, orders were placed for
72,955 freight cars compared with 76,599 for the first quarter
in 1923. The increased number of surplus cars, idle be
cause of smaller carloadings, has brought about a reduc
tion in railroad buying from the exceptionally large pur
chases made during February.
Page 11 June
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 other
wise indicated. Where figures for latest month shown are partly, estimated on basis of returns received to date, revisions will be given the following
month. Data refer to the Seventh Federal Reserve district unless otherwise noted.)
lo. of April March April March
Mrms 1924 1924 1923 1923
Meat Packing— (U. S.)—
Sales (in dollars)1
................
Casting Foundries—
Shipments (in dollars).........
Stoves and Furnaces—
Shipments (in dollars).........
Agricultural Pumps—
(U. S . ) -
63
85.7
87.2
86.8
91.5
29
97.5
96.9
101.5
105.0
19
S9.4
97.0
86.4
98.6
20
99.6
103.2
100.0
105.8
131
131
131
114.6
176.8
124.1
112.6
133.5
115.7
123.9
91.0
119.0
125.7
68.6
117.2
Agricultural Machinery &
Equipment— (U. S.)2
—
*
Furniture5
—
Orders (in dollars)....
Shipments (in dollars}
23
23
89.3
130.9
142.2
165.2
120.7
148.6
162.2
168.4
Shoes4
—
Production (in pairs).
Shipments (in pairs).
36
36
146.8
153.1
152.1
160.3
158.6
152.5
179.1
189.7
Freight Carloadings—
(U. S . ) Grain and Grain Products....
Live Stock..............................
Coal .........................................
Coke ........................................
Forest Products ..................
Ore .........................................
Merchandise and
Miscellaneous ..................
Total ......................................
Iron and Steel—
Pig Iron Production:5
Illinois and Indiana.........
United States ....................
Steel Ingot Production—
(U. S.)s ..........................
Unfilled Orders U. S. Steel
Corp..................................
96.6
89.7
76.0
120.8
133.4
55.7
104.7
92.4
100.3
145.2
142.0
31.4
96.7
94.4
108.6
171.5
134.5
58.4
103.6
92.0
112.8
166.5
130.8
36.6
124.6
109.3
123.1
113.7
125.5
117.4
119.4
113.7
147.2
128.6
152.8
133.4
139.4
141.1
129.5
135.7
115.5
142.9
139.9
132.9
70.2
79.8
121.6
123.5
Automobiles— (U. S.)—
Production:
Passenger Cars ...............
Trucks ................................
243.9
135.3
252.1
127.9
248.9
142.3
231.3
131.8
Shipments:*
Carloads ............................
Driveaways ........................
Boat2 ..................................
236.1
93.3
119.6
260.2
105.9
14.6
220.3
154.1
148.2
215.0
160.5
56.3
Sales (7th District)—
New Automobiles ...........
New Automobile Trucks..
Parts and Accessories.....
166.0
70.9
74.9
177.1
56.5
60.3
91.0
44.7
81.2
133.6
50.7
69.9
140.8
148.2
333.1
351.2
39.4
28.9
44.7
52.9
Stamp Tax Collections'—
Sales or Transfer of Capital
Stock ..................................
Sales of Produce on
Exchange— Futures .........
No. of April March April March
Firms 1924 1924 1923 1923
Electric Energy—
Output of Plants (K W H )....
Industrial Sales (K W H )....
10
10
155.7
172.5
171.9
177.6
143.6
158.2
156.1
156.4
Wholesale Trade—
Net Sales (in dollars):
Groceries ............................
Hardware ..........................
Shoes ..................................
Drugs ..................................
Dry Goods ......................
40
21
7
14
13
71.8
117.8
70.5
100.7
82.7
69.5
106.1
58.1
100.9
89.1
79.1
115.9
59.1
100.6
84.2
73.1
114.7
86.5
111.2
104.8
Retail Trade (Department
Stores)—
Net Sales (in dollars):
Chicago ..............................
Detroit ................................
Des Moines ................ .....
Indianapolis ......................
Milwaukee ........................
Outside ..............................
Seventh District ..............
9 138.7
4 163.9
3 119.2
4 163.8
5
40 118.0
65 145.9
127.3
137.5
109.9
136.4
127.5
96.9
123.2
118.0
150.1
115.1
138.5
142.0
107.5
132.5
133.5
137.9
115.1
155.1
133.0
106.0
129.5
132
114
115
106
119
103
124
112
29 210
10 145
6 178
5 178
4
93
4 208
3 130
198
149
118
163
99
181
136
180
135
125
142
99
159
125
205
145
145
162
96
187
135
73.2
119.6
32.9
86.0
196.3
55.2
85.8
112.4
69.3
99.2
166.8
72.0
80.2
107.0
39.0
78.0
112.3
37.8
87.1
98.2
40.3
94.2
109.2
41.1
93.4
101.5
75.3
87.1
182.0
121.1
169.2
109.9
177.4
136.9
168.3
108.9
343.9
385.7
339.8
233.7
305.9
223.6
275.2
291.0
224.6
256.7
310.4
228.4
288.2
296.9
300.7 269.0
307.6 711.9
245.9 283.6
207.6 301.6
202.0 259.8
126.8 186.3
211.3 207.8
256.0 172.5
165.6 216.8
260.8 316.0
179.7 289.7
215.4 257.8
198.5 ' 252.2
256.8 386.3
243.5
349.8
231.6
284.1
160.8
193.2
178.9
243.0
154.3
123.6
152.7
188.4
172.4
253.2
Retail Trade— (U. S.)—
Department Stores ...............
Mail Order Houses................
Chain Stores:
Grocery ..............................
Drug .................. .................
Shoe ....................................
Five and Ten Cent.............
Music ..................................
Candy ..................................
Cigar ..................................
U. S. Primary Markets'—
Grain Receipts:
Oats ....................................
Corn ...................................
Wheat ................................
Grain Shipments:
Oats ....................................
Corn ....................................
Wheat ................................
Flour Production—
(In barrels)............................
Building Construction—
Contracts awarded
(in dollars):
Residential ........................
Total ....................................
Permits:
Chicago .............. Number
C ost.....
Indianapolis .......Number
C o st.....
Des Moines .........Number
C o s t.....
Detroit ................ Number
C o st.....
Milwaukee ...........Number
C ost.....
Others (45) .......Number
C o st.....
Fifty Cities...........Number
C o st.....
333
4
42
1. Monthly average 1920-1921=100; 2. Monthly average 1923=100; 3. Monthly average 1919-1920-1921=100; 4. Monthly average of mean of
production and shipments in 1919=100; 5. Average daily production; 6. Monthly average 1920=100; 7. Base figures (1920) partly estimated;
8. First Illinois internal revenue district; 9. Monthly average receipts 1919=100.
Page 12 June
@FedFRASER