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Business C onditions Report o f the Federal Reserve Bank o f Philadelphia April 1, 1920. T H E severe winter weather, which so thoroughly tied up trans portation during February, is still having its effect on the move ment of cars. Shipments are moving slowly and holding up many manufacturers, due to the shortage of fuel and materials. This condition is particularly true in the iron and steel lines, which have been receiving orders and inquiries in large volume. Pro duction of goods is proceeding as rapidly as circumstances will permit. In some of the textile lines there has been a quieting of the frenzied demand which was a feature of earlier dealings. Retail trade has been fairly brisk and somewhat ahead of last year insofar as the volume of business in dollars is concerned. It is to be doubted whether the actual bulk of the sales is as large, however, as the increase of prices probably more than ac counts for the increase in the value of the sales. Bad weather conditions and sickness have held many purchasers at home. It is reported that in some cases objection is raised to price increases and that there is a partial shifting in demand from luxury goods, such as silk shirts, to cotton shirts. Prices do not yet show signs of a decline and little hope is held out by retailers until the fall season has passed. In conformity with the suggestion of the Federal Reserve Board, the Federal reserve banks have initiated a program which is designed to secure actual figures or percentages on certain items such as sales, stocks, etc., in all lines of industry and trade. Composite percentages for all reporting firms are worked up at this bank from the individual reports. Retail trade, as manifested 1 by the reports of department stores, has been the first subject of inquiry, inasmuch as it is an indicator of fundamental purchas ing power. The table below gives the results of our investi gation for the months of January and February: R E TAIL T R A D E OF D E PA R TM E N T STORES January 1920 Net sales: February 1920 For month named compared to same month, 1919 + 22.2% - f 16.8% For period Jan. 1 to end o f month named, com pared to same period last year...................... + 22.2% + 20.1% Compared to same month, 1919............................ + 5.2% + 16.6% Compared to previous m o n th ................................ — 3.4% + 6.8% Stocks at end o f month named: Ratio o f average stocks at end o f each month for period from Jan. 1 to date, to average monthly sales for same p eriod ............................................................... 253.2% 276.1% Ratio o f outstanding orders at end o f month named, to total purchases during year 1919.......................... 24.4% 31.2% Clothing Clothing manufacturers report that they are running at full capacity, and that operations average about 25 per cent ahead of last year. Difficulty is experienced in securing supplies of cloth and the various raw materials entering into production. These difficulties are due not so much to the transportation situation as to the curtailed production of mills manufacturing cloth. Prices of raw materials have been trending steadily upward. The gen eral demand centers on products of the higher qualities. It is to be understood, of course, that the attitude of the purchasing public will in the end exercise an important influence upon actual prices to be charged, and in this connection the following ex cerpts from a letter received from a large manufacturer are of interest: “ We are unquestionably approaching the point of saturation far more quickly than we have been for the last few years. In other words, production is fast approaching the level of demand in our line. “ However, that is not due to any change of heart on the part of the worker. Production per capita is just about where it was a few months ago. The changed situation is due to the refusal of the buying public to pay the prohibitive prices clothing man ufacturers and retail merchants are compelled to ask. “ You will recall when we last spoke on this subject, I ad vanced the theory that as prices became prohibitive, demand 2 would decrease. The realization of that forecast has come more quickly than I thought it would. “ We are already hearing from many of our retail friends that the buying public, rather than pay present retail prices, are refus ing to buy and making their present apparel do for an indefinite period.” Coal Production of bituminous coal is still seriously hampered by shortages in cars but production is gradually recovering. Many consumers have suffered from the diverting of fuel con signed to them during the past months and in some quarters the policy of the Government has been regarded as unjust and has caused much complaint. There appears little likelihood of any decline in the price of bituminous coal as there is at present a considerable shortage. Because of the large output of which the bituminous mines are capable when operating under favorable conditions, it is very possible that a shortage at this time may be overcome before the year is out. The anthracite situation is now complicated by the necessity of entering into a new wage agreement with the miners on April 1. The present trend of prices is upward, and increases in wages, if agreed on at that time, will probably be reflected in still higher prices. The production of anthracite is not capable of so much expansion as is the case with bituminous coal, and care must be exercised to prevent any undue delays in operations. Shipments over the nine principal coal carrying roads during February totaled 4,913,664 tons, as compared to 5,713,319 tons in January, and 3,871,932 tons in February, 1919. Cotton The demand for cotton has not been so brisk lately, and the low exchange rates prevent free buying from abroad. The lack of buying by domestic concerns can be traced to the fact that most mills are supplied for the next two months, and they are somewhat hesitant in making purchases at a time when it is felt that there is a possibility of lower prices in the future. Whether this hope will be realized is a question, inasmuch as reports in dicate a small crop and reduced acreage in the south, and the acute labor situation is making the picking of cotton an expensive operation. Spot cotton is being tightly held, and the good grades are scarce and high in price. 3 Southern yarn spinners are said to be averaging about 65 to 70 per cent of normal production and they are having difficulties in shipping their product north because of the freight congestion. Prices of yarns hold firm, and it would appear that they will con tinue so during the spring and summer. A leading manufacturer gives it as his opinion that the high point will be reached in the spring; unrestricted and thoughtless buying he regards as a thing of the past. Manufacturers of cotton goods report that they are run ning nearly to capacity and somewhat in excess of a year ago. They find it possible to secure raw material, though at high prices. The orders on hand will maintain operations during the next few months, but there has been a quieting down in the mar ket of late. Jobbers are buying conservatively, as recent bad weather has curtailed trade in some markets, and they do not wish to assume heavy obligations created by lines of goods which may not command a ready market at a later date. Iron and steel The partial failure of transportation facilities has seriously affected operations in the iron and steel industry. The demand for pig iron is strong and prices have advanced considerably, due in part to the difficulty in securing shipments of this material for immediate use. Inability to secure deliveries of limestone, coke, and other materials used in the manufacture of pig and then, in turn, inability to ship the finished product, is accentuat ing the difficulties under which the industry is operating. Some producers hesitate to book orders far ahead and deprecate the raising of price levels to unreasonable heights. The entry of the railroads into the market will probably insure good business, and it is thought by some that the supply of low-phosphorus pig iron will not be sufficient to satisfy the demand. Scrap iron is being firmly held. Generally speaking, plants engaged in the production of many products of iron and steel, such as bars, shapes, structural steel, etc., are operating at about the same rate as in February— somewhat below capacity due to transportation difficulties which hold up fuel and material supplies. Operations are larger than a year ago. Prices are holding firm or exhibit an upward ten dency. A large manufacturer of malleable iron fittings reports oper ations at about 80 per cent of capacity. Production is impeded 4 by car shortage. The demand for such products seems to be far beyond the ability of the producers to fill it and comes from both foreign and domestic sources. The demand for open hearth steel castings is increasing, and prices have ceased their downward trend and are now going higher because of the high cost of materials and labor. The next few months are expected to bring in considerable new business. Manufacturers of electric-furnace steel castings have been en joying a steady demand from the automobile trade and expect much work in the future from the railroads. Agricultural implement manufacturers report that they are behind on orders, not because of the extraordinary volume, but due to the difficulties in securing materials, which are curtail ing plant operation. The spring demand for such implements may perhaps be somewhat diminished by recent price increases, but a large wholesaler gives it as his opinion that it will be in excess of supply. The export trade has been practically stopped by the present low rates of exchange. A few manufacturers have been fortunate in their labor prob lem and report a tendency on the part of operatives to give a fair day’s work in return for the higher rates of pay that have been awarded them. This is by no means the general report, however, and indifference to output and a tendency to work only part-time appear to be outstanding features. An interesting study of production costs conducted by a large company develops the fact that, in the hardware line, the average advance in labor cost in January, 1920, as compared to 1909, was 189 per cent; raw materials, fuel, etc., are said to have increased 150 per cent; and in addition to these items, which make the product more costly, we must add the manifold taxes which have been levied during the past few years. Castings which cost 6 cents a pound in 1909, allowing 10 per cent for profit, now cost 16.5 cents when yielding the same percentage profit; 10 cents per pound castings have increased to 27.5 cents; 20-cent castings to 56.2 cents. K n it goods High prices and the agitation for reduction have had some effect on operations of knit goods mills, though they are for the most part still busily engaged in filling back orders. Jobbers have not been active lately, but values have shown no downward tendency. At a later date prices may increase due to the firm 5 ness of material markets, high labor costs, and the comparatively low state of production. Brisk demand for underwear for fall delivery was in evidence up to a short time ago, but appears to be diminishing of late. During the summer demand is expected to pick up, as merchants are not heavily stocked. There is some question whether this expectation will be realized as many jobbers are manifesting a tendency to hold off in their purchases as long as possible, think ing that prices are too high to assure the movement of stock. Hosiery buying for the second quarter has been somewhat disappointing. The wholesale trade is rather adverse to buying silk and fine cotton hosiery until the demands of the retail trade force them to do so. Prices of hosiery generally are said to be about 20 to 25 per cent above a year ago, and unless the popular demand does not materialize, further increases are in evidence. Yarns of the higher counts are scarce and expensive. Consumers do not yet realize the high prices which knitgoods retailers will be forced to ask later in the year, and uncer tainty as to their action under the circumstances is holding back many orders. Laces Lace mills are operating nearly to capacity and somewhat in excess of the production in February. A large mill, whose buyers have just returned from the road, reports that orders received were 50 to 100 per cent beyond their capacity, and that it will be necessary to apportion the output among the purchasers. This condition seems to be general in the industry, and practically all sections of the country have furnished an active demand for lace with the exception of a few districts in which weather conditions have held back trade. The high levels of cotton yarn prices have had their effect in raising the prices of the finished materials, and further ad vances are predicted in some quarters. Many mills use imported yarns, which are particularly difficult to secure at this time. Leather Leather tanneries are operating at capacity and have been doing so for some time past. The hide market has eased up notice ably of late, but leather prices will not be affected for a long time to come, as the material going into the leather now being turned out was purchased long since. Sole leather prices are higher 6 than a year ago, and little hope is held for reduction in the future. Belting leather is in steady demand. New business offered during the past few months has been rather small in volume, but larger purchases are expected soon. Stocks of leather on hand are not large, and strengthening in foreign exchange rates would probably give rise to a foreign demand which would raise prices. The glazed kid industry is running at capacity where sup plies of raw materials are on hand. The raw material markets are exceptionally high. The China market has practically been cleaned up and the supplies from India and South America are small, according to a large manufacturer. Domestic hides are somewhat lower but the material being offered is of rather poor quality. Prices of the finished product are high and hold fairly firm; much of the speculation which existed last year has dis appeared. Paints The demand for paints whose basic material is oxide of lead is exceedingly heavy, and manufacturers report operations on as large a scale as the material and labor situation will permit. Shortages of pig lead and slow deliveries are curtailing produc tion of some concerns. At present the demand is far in excess of supply, and orders have been booked for quite a time ahead. The high cost of lead and linseed oil is acting as a strong factor in forcing up prices of finished products. Shirts Shirt manufacturers have all the orders on hand that they can care for, and it is reported that their output is far below the demand in the better qualities. Piece goods, which constitute the raw material used, have been in fair supply. The inefficiency of labor has held back pro duction and added materially to the cost of the commodities. A leading manufacturer states that since last March labor costs have advanced 33 per cent, and the cost of materials 100 per cent. The stocks of retailers appear to be low, and the strong retail demand makes the spring outlook excellent. Shoes The shoe situation presents some conflicting trends. The demand so far has been good and many manufacturers expect no 7 reduction in business for quite a time to come. On the other hand, some manufacturers do not hesitate to say that consumers are manifesting a tendency to avoid higher-priced shoes and that in the future there is a strong possibility that they will be even more careful. It is reported that eastern buying has slowed up somewhat, but western and southern demands are still strong. Prices have not changed materially during the last six months, but are con siderably in excess of a year ago. The labor supply is not yet sufficient to enable full-time production in many plants, but has improved lately. Inefficiency as a factor in curtailing operations and increasing costs is emphasized. Silk Operations of silk mills are on about the same scale as a year ago. During the last month there has been some slackening in demand but mills are steadily engaged in filling back orders. Prices are exceedingly high, due to the excessive cost of raw silk. Recently the price of the raw material has declined, and manufacturers generally have been buying cautiously as they do not wish to be caught with large stocks on hand if prices should fall to lower levels. Retail demand for silks is only for the higher grades. W ool The wool market has been dull and trading is limited. Man ufacturers are fairly well stocked, and the prevailing high money rates impel many to postpone purchasing so that the financial burden of carrying the raw wool may rest with the present hold ers. In many quarters, too, it is felt that it is now time for con servatism in making commitments. With the exception of the merino wools, market prices favor the buyer. Cross-breds have eased off during the prolonged dull period, and the large quantity of foreign cross-breds pressed for sale both here and abroad has had its effect on better grades. Merino wools still command very high prices, and in the London market record prices have been attained due to scarcity and con centrated demand. The prices of fabrics made from fine wool hold firm at levels much in excess of a year ago, and may go still higher. Fabrics of medium and low grade wools are off in price and are said to have a tendency to lower levels at this time. Mills are engaged 8 in the production of high-grade products and are operating to capacity, with the exception of some cases in which they are unable to obtain material or secure labor. No material change in business is expected for the next few months due to the small stocks of woolens and worsteds on hand. Financial Inquiries among the banks and dealers in commercial paper as to the tendencies exhibited by the financial statements of con cerns for 1919 as compared to 1918 elicited some interesting replies. The prevailing opinion indicates that the statements as a whole are not quite as liquid due to the need for borrowing larger amounts of money to conduct business at higher prices. The cash position of the concerns does not appear to exhibit much change. Inventories are generally larger, but the consensus of opinion is that they are valued conservatively and that orders on hand will consume them at a profit. Profits have varied con siderably, according to the line of business. Automobile, rubber, leather, tobacco and many other businesses have prospered, but iron and steel and meat concerns generally report lower profits. Many businesses have set up substantial reserves to care for pos sible deflation in prices. There has been comparatively little in crease in fixed assets, the bulk of earnings having gone into quick assets. The discount market in this district has been quiet for some time past and country banks are practically the only customers for commercial paper. The use of the trade acceptance does not seem to be expanding. Bank acceptances are moving slowly be cause the discount rate plus the banker’s commission raises the rate above that of commercial paper. Loan and discount operations of the Federal Reserve Bank during February were $571,916,000, as compared to $656,620,000 in the previous month. Average daily earning assets increased from $239,284,000 in January to $243,612,000 in February. Federal reserve notes in actual circulation at the end of January were $223,585,000; at the end of February the figure was $242,258,000. The reserve ratio remains unchanged around 40 per cent. Operations of the transit department in February were some what lower than in January, the average amount of checks handled daily decreasing from $53,180,000 to $44,409,000. Discount rates quoted by the Philadelphia banks hold firm at 6 per cent. 9 STATEMENT Federal Reserve Bank o f Philadelphia RESOURCES March 18, 1920 Month ago Year ago $137,393,744 492,524 Legal tender, silver, etc.. $134,491,033 466,596 $127,817,471 270,294 $137,886,268 $134,957,629 $128,087,765 $162,735,396 49,237,182 5,590,873 31,988,400 $154,512,890 54,491,670 7,205,696 32,305,900 $169,965,103 11,462,529 1,777,063 15,164,900 $249,551,851 $248,516,156 $198,369,595 $13,441,675 638,192 $13,780,135 278,479 $12,629,315 643,735 A1 oth er resou rces.......... 1 76,030,875 2,742,168 91,519,410 2,462,714 78,251,900 84,395,107 2,356,051 Total resources........ $480,291,029 $491,514,523 $504,733,468 LIABILITIES March, 1920 Month ago Year ago Bills discounted,members: Secured by Government war Bills bought in open market United States securities.. Total earning assets Mutilated and fit notes on hand: Federal reserve notes.......... Federal reserve bank notes. Due from d e p o s i t a r y banks—war loan deposit $8,129,650 8,805,132 7,076 2,725,632 $7,577,400 2,608,344 Government deposits . . . . Due to members—reserve account............................ Collection item s................ $8,198,300 8,805,132 14,047 16,016,055 94,837,197 70,239,144 107,925,799 84,926,422 110,097,018 55,210,771 Gross deposits.......... $181,092,396 $195,577,853 $177,705,530 Capital paid i n .................. Surplus................................ G overnm ent deposits— special accou n t............. Federal reserve notes outstanding.......................... Federal reserve bank notes outstanding.................... All other liabilities........... Total liabilities........ 12,397,741 $82,828,137 $256,484,850 $249,374,750 218,569,400 22,344,000 3,352,304 26,952,000 2,668,062 13,460,000 1,984,657 $480,291,029 $491,514,523 $504,733,468 10 RESOURCE AND LIABILITY ITEM S o f member banks in Philadelphia, Scranton, Camden and W ilmington At the close of business Mar. 12, 1920 Feb. 13, 1920 Mar. 14, 1919 Tin thousands of dollars— 1 i.e., J k i ooo’s omitted. United States bonds to secure circulation.. ___ $11,097 $11,097 $11,597 37,938 38,822 38,010 Other United States bonds and n otes.......... Certificates o f indebtedness............................ . . . . 45,895 49,900 140,744 Total United States securities owned . . . . $94,930 $99,819 $190,351 Loans secured by United States securities. . . . . 78,405 79,818 142,916 All other loans and investments.................. . . . . 759,605 744,646 614,739 Total loans and investm ents.............. . . . . $932,940 $924,283 $948,006 Reserve with Federal Reserve Bank.......... 69,642 59,838 67,219 Cash in v a u lt ................................................... 17,244 17,916 19,400 Net dem and deposits on w hich reserve is com puted............................................... ___ 674,734 665,604 666,588 Time deposits ................................................. ___ 25,769 26,070 21,822 Government deposits....................................... ___ 1,568 5,899 48,681 56 56 56 Number o f banks reporting.......................... CHARGES TO D EPO SITO R S’ A C C O U N T S other than banks’ or bankers’ , as reported by Clearing Houses Weeks ending Mar. 17, 1920 $3,457,000 A itoon a............................. .................. Feb. 18, 1920 $3,101,000 Mar. 19, 1919 $2,446,000 C hester............................. .................... 5,271,000 4,775,000 4,035,000 Harrisburg ...................... .................. 4,240,000 2,720,000 3,750,000 Johnstow n........................ .................. 3,423,000 3,626,000 3,117,000 Lancaster ........................ .................. 5,926,000 5,341,000 4,603,000 Philadelphia.................... .................. 385,555,000 331,070,000 304,806,000 R ea d in g ............................ .................. 6,059,000 5,711,000 4,155,000 Scranton .......................... .................. 12,442,000 12,068,000 9,005,000 T r e n to n ............................ .................. 11,713,000 11,188,000 8,566,000 W ilk es-B a rre.................. .................. 8,358,000 8,722,000 5,998,000 W illiam sport.................... .................. 4,501,000 3,805,000 3,312,000 W ilm ington...................... .................. 10,326,000 9,356,000 9,985,000 Y o r k .................................. .................. 4,333,000 4,094,000 3,380,000 T o ta ls ..................... ................... $465,604,000 $405,577,000 $367,158,000 n BUSINESS IN D IC A TO R S Percentage increase or decrease com pared w ith Mar. 22, 1920 Previous month Philadelphia banks: L o a n s..................................................... D eposits................................................. Ratio o f loans to deposits.................. $818,624,000 $683,951,000 119 % Federal Reserve Bank: Discounts and collateral loans.......... Cash reserve......................................... 90-day discount rate............................ $204,271,000 41 6 % % Commercial paper.................................... 6 % Year ago + 5 + 3 117 % % %* % %* %* + 9 41 %* 6 + % %* 40 6 + %* 2 % 2 120 — 1 <fc W Percentage increase or decrease com pared w ith Feb. 1920 Previous month Year ago Bank clearings: In Philadelphia..................................... Elsewhere in district............................ $1,776,627,073 107,368,662 — 18 — 21 22 -f 22 °b % Total clearings................................. $1,883,995,735 — 18 % 22 % Building permits, Philadelphia............. Post office receipts, Philadelphia.......... Commercial failures in district (per Bradstreet’s ) ................................ $6,918,090 1,049,778 96 22 % % 506 0 % 36 33 Latest commodity index figures: Annalist (food prices o n ly )................ Dun’s ..................................................... Bradstreet’s ........................................... 298.094 $253,016 $20.7950 ♦Actual figures. + 12 % + — — 3. 0% 0. 3% 0. 4 % * % 26 2. + + 16. + 20. 9 % * ON THE HORIZON In a recent address, Richard S. Hawes, president of the Am er ican Bankers’ Association, outlined succinctly the principal ele ments, favorable and unfavorable, in the present business situa tion. The factors, as stated by Mr. Hawes, were as follow s: Favorable 1. More equitable adjustments of controversies between capital 2. 3. 4. 5. 6. 7. 8. and labor. Scientific study of the railroad problem. Curtailment o f extravagance. Greater economy and efficiency in Government. Decrease o f speculation. Increase o f immigration. Large stock of gold. Gradual recession to normal prices. Unfavorable 1. Enormous increase in prices has produced speculation, waste and extravagance. 2. Inflated currency of all the leading nations of Europe has been accompanied by danger to the gold standard. 3. Possibility of decreased European exports. 4. Increased demands from labor. 5. The Presidential election campaign. 6. Heavy demand for capital, especially by the railroads and the public utilities. 7. Increased and unscientific tax methods. V Under a recent decision of the Supreme Court, the Interstate Commerce Commission has been instructed to take into consider- 13 ation the present replacement cost in valuing railroad property. This will probably be accepted as a precedent for property valu ations under the new Esch-Cummins Act, in which even traffic rates are certain to be substantially increased. Replacement value exceeds book value by many billions of dollars. The indus trial controversy boards are in the process of formation. Certain roads have announced that they do not desire the protection of the Federal guaranty which has been extended for six months. The entire railroad situation is rapidly improving. 72 The cash reserves of the United States, including the total stock of gold and silver, increased less than $200,000,000 during the war. From January 1, 1914, until February 10, 1920, gold imports exceeded exports by $643,000,000, but during the same period, silver exports exceeded imports by $463,000,000, leaving a net gain of $180,000,000. Gold imports may be increased in the near future through shipment of the new Transvaal production. No improvement to the credit situation, except in a negative sense, can come from this movement, since it cannot exceed $15,000,000 monthly whereas our gold exports are nearer $50,000,000 monthly. England and France must arrange payment of the Anglo-French Loan of $500,000,000 in October, and will prob ably be obliged to ship gold in partial payment. Unless the movement of gold in and out of the United States is regulated, similiarly to the manner adopted in the other leading nations, in the very near future, our entire credit structure will be en dangered. 72 The January foreign trade balance of the United States showed an excess of exports amounting to $257,000,000. If the European trade were not considered, the balance would have been unfavorable to the extent of $97,000,000. Exports to South Amer ica, Oceania and Africa decreased nearly one-half in comparison with January of last year. Imports increased 400 per cent from Europe, 100 per cent from South America, 200 per cent from Asia, and 1,000 per cent from Africa. The trend in our inter national trade is therefore distinctly unfavorable. As our favor able trade balance with Europe will decline during the current year, our unfavorable balance with the other continents seems likely to increase. The importance of stimulating our export 14 trade throughout the world cannot be overestimated if we desire to remain permanently a creditor nation. In the course of a recent address to a group of bankers, Henry A. Moehlenpah, of the Federal Reserve Board, summarized the benefits of the system in the following words: “ 1. It is an insurance policy, assuring to you complete con fidence in your ability to serve your communities and to care for your depositors under every stress and strain. “2. It is a guarantee to your community that any program for development or production can be safely and continuously car ried out. “3. It is a guarantee to you as a conservative banker that you can receive deposits with the assurance of security and contin uous service to business interests. “4. It insures the independent relationship of your bank as to its dependence upon any other bank. “5. It is not a fictitious reserve, but a real reserve. For the first time in the history of our country we are able to assemble the wealth of our people into the credit structure. “ 6. You are able to transfer funds without cost. You are able to collect checks at par either going or coming. You are able to ship currency either way, insured and all charges paid, without any expenses to your bank. “ 7. You have the benefit of the advice of business experts of the country not only on financial matters, but upon the conduct of your business in particular. You have the privileges of redis counting eligible paper. This is particularly important at this time, because of the need of increased product of the articles you produce in this section. “ 8. The system has in the short period of its existence brought about better banking methods. You have heard criticism as to the necessity for making reports, etc., but it was well that under the National Banking Law a careful examination of banks was adhered to; that when the stress of war was upon us we had little to clean up or remove, but we could go immediately at our job. Bankers now are becoming real bankers and trusted guard ians of the people’s money. 15 “ 9. It has given to every member bank the prestige, because of the things I have enumerated, and it is reflected in the con fidence of the depositor, which is above all absolutely neces sary.” Steamships operating on regular schedules from Philadelphia at the present time touch a greater number of ports in widely scattered parts of the world than ever before. Sailings have been made much more frequent and shipments can be made to South America, points in the Mediterranean, the British Isles and the continent of Europe with a greater degree of economy than from New York. The Corn Exchange National Bank of this city draws attention to the freight differential in favor of Philadelphia as a factor that has been seriously neglected by interests here in attracting business to this port. They use the case of cement shipments from the Lehigh Valley region as an illustration. “ By way of the Lehigh Valley and Philadelphia & Reading the rate per net ton, when the cement is for trans shipment by water, is $1.40. For domestic transportation in Phil adelphia the rate per net ton is $1.90. By contrast, shipments into New York involve an extra lighterage charge of sixty cents a net ton, which brings up the total cost of delivering cement there to $2. This lighterage charge is really misleading, as the service is said to be so careless that many shippers use lighters of outside companies which charge $1.10 a ton. “ Naturally, the difference in favor of Philadelphia is based on the lower mileage to this port. Applying this differential to other lines of goods, the argument for attaching business is manifest.” A Philadelphia shipping man has declared that he will meet any shipping rate quoted by New York. This port has great possibilities and the present city adminis tration is evidently backing it up as much as possible. If busi ness men will co-operate, there is no reason why it should not undergo great expansion. This business report 'will be sent regularly to any address upon request. 16
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