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BU SIN ESS AND FINANCIAL
CONDITIONS
THIRD FEDERAL
PHILADELPHIA
RESERVE DISTRICT
APRIL 2, 1923
By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent
FEDERAL RESERVE BANK of PHILADELPHIA
SUMMARY OF BUSINESS CONDITIONS
IN THE UNITED STATES
Continued active business is indicated by the main
tenance o f a high rate of industrial production, increases
in freight traffic and employment, and a large volume of
retail and wholesale trade.
The Federal Reserve Board’s index of production in
basic industries for February was at the same high level
as in January. The index number for
Production
these industries is now approximately
equal to the highest point reached in
the past. Since the low point in July, 1921, there has
been an increase of 61 per cent. The volume o f new
building projected in February was exceptionally large
for the season, particularly in western districts. Rail
road freight shipments have been increasing and the
car shortage, which was somewhat relieved in Decem
ber and January, became more marked in recent weeks.
A continued increase in industrial employment has
INDEX OF PRODUCTION IN BASIC IN D U STRIES
C O M B IN A T IO N
CO RRECTED
-ENT
OF 2 2 IN D IV ID U A L S E R I E S
FOR SEA SO N A L VARIATION
1919 - lOO
n s
140
120
1 00
00
60
40
20
0
1919
1920
12
91
1922
1923
been accompanied by further advances in wage rates
in a number of industries. Many New England woolen
mills announced a wage increase of 12^2 per cent.,
effective April 30. A shortage of women workers has
been reported in the textile, rubber, and garment indus
tries, and there is a shortage of unskilled labor in many
industrial centers.
Wholesale and retail distribution of goods continued
at a high level during February. Sales of both whole
sale and retail concerns reporting to the FedTrade
eral reserve banks were well above those of
a year ago, but the increase was relatively
more pronounced in wholesale trade. Mail order and
chain store business was almost as large in February
as in January despite the shorter month, and sales of
five- and ten-cent stores were actually larger than in
January.
BANK CREDIT
BANK CREDIT
ALL
FED ERA L
RESERVE
600 M E M B E R
BANKS
The Bureau of Labor Statistics index o f wholesale
prices advanced slightly during February. Prices of
metals, building materials, and clothing
Wholesale
increased, while prices o f' fuels and
prices
farm products declined. Building ma
terials and metals during the past year have advanced
more than any other groups of commodities and are
now about 25 per cent, higher than in March, 1922.
Recent increases in industrial and commercial activity
have been reflected in a larger volume of loans by mem
ber banks for commercial purposes, espeBank
dally in the New York, Chicago and San
credit
Francisco districts. Loans of this character
by reporting member banks are now approximately
$500,000,000 larger than at the end of December. This
increase has been accompanied by a reduction in hold
ings o f investments; so that there has been only a mod
’
erate net increase in total loans and investments.
The larger demand for funds has not led to any
B A N K S IN LEADING
C IT IE S
increase during the past month in the total volume of
credit extended by the reserve banks. Total earning
assets and loans to member banks on March 21 were
approximately the same as four weeks earlier.
Bor
rowings by member banks in the interior increased,
particularly in the Chicago district, but borrowings by
member banks in the New York district decreased.
Since the end of February there has been a small decline
in the volume of Federal reserve note circulation, which
is now at approximately the same level as six months
ago.
Other forms of currency in circulation, however,
have recently increased.
The market rates on commercial paper advanced fur
ther to a range of 5 to 5% per cent., and the rate on
bankers’ acceptances remained steady at about 4 per
cent.
There has been a slight increase in the yield of
short term Treasury certificates as well as of Govern
ment and other high-grade bonds.
TABLE OF CONTENTS
PAGE
Agriculture ................................................
Bankers’ acceptances ..............................
Bricks, building ........................................
Building ....................................................
Cigars and cigarettes................................
Coal ............................................................
Coal, anthracite ........................................
Coal, bituminous ......................................
Coke ............................................................
Commercial paper ....................................
Confectionery ............................................
Cotton goods ............................................
Cotton, r a w ................................................
District summary .......... . . . . .................
Drugs, wholesale ....................................
Drygoods, wholesale ................................
Electric fixtures ........................................
Employment and w a g e s ..........................
Financial conditions ................................
28
8
IS
14
27
17
17
17
18
8
13
19
19
3
10
10
17
5
7
Special Article:
PAGE
Floor coverings ........................................
Foreign exchange ..........................
Gas and electric fixtures ........................
G la s s............................................................ •
Groceries, wholesale ................................
Hardware, wholesale ..............................
Hides and s k in s ........................................
Hosiery ......................................................
Iron ............................................................
Leather ......................................................
Leather goods ..........................................
Lumber ......................................................
National summary......................................
Paint ..............................■
..........................
Paper ..........................................................
Petroleum ..................................................
Printing and publishing..........................
Real E sta te ................................................
Retail t r a d e ..................................................
24
8
17
16
11
10
25
22
14
24
25
15
1
16
26
18
26
14
9
PAGE
Savings deposits ......................................
S ecu rities....................................................
Shoes ..........................................................
Shoes, wholesale ......................................
Silk goods ..................................................
Silk, raw ....................................................
Silk, thrown ..............................................
Steel ............................................................
Sugar ..........................................................
Sugar, r a w ..................................................
Sugar, refined ..........................................
Summary, district ....................................
Summary, national ..................................
Synopsis of business conditions............
Underwear ................................................
Wholesale t r a d e ........................................
W ool, r a w ..................................................
W oolen and worsted goods ..................
W ool yarns ..............................................
How the Federal Reserve System is Organized
2
32
7
7
24
11
21
22
22
14
12
12
13
3
1
4
23
10
20
21
21
SUMMARY OF BUSINESS CONDITIONS
IN THE
THIRD FEDERAL RESERVE DISTRICT
G
E N E R A L business in the Third Federal Re general level of wholesale prices, as reported by the
serve District has continued to expand dur Bureau of Labor Statistics, increased .6 per cent in
ing March, but not all industries have shared February as compared with January, the index num
in the improvement to the same extent. The de bers for the respective months being 157 and 156. This
mand for some commodities has grown steadily, but general index, however, does not reflect the large ad
in the case of others there is strong evidence that the vances that were made in some of the commodity
ever-mounting price level is acting as a check; in groups. The index of building material prices rose
fact, the volume of orders booked by several indus from 188 to 192, that of metal and metal products from
tries has declined since last month. But even in these,
133 to 139, and the cloths and clothing group advanced
sales are still large, and business as a whole continues from 196 to 199. The fuel and lighting group declined
from 218 to 212, and farm products fell from 143 to
to he exceptionally good.
142. It will be seen that the prices of manufactured
As a result of the large number of orders already
on the hooks and still being received, production is products expanded considerably, and reports received
from manufacturers indicate that this movement has
proceeding at a high rate. Indeed, the volume of pro
duction today is larger than at any time since May, continued during March. These reports are substan
1917. But operations would he even greater were it tiated by the index of the prices of twenty basic com
not for the shortage of labor and the difficulties result modities compiled by the Federal Reserve Bank of
ing from the transportation situation. Although sev New York. On March 3 that index stood at 159.6,
eral of the freight embargoes have been lifted, general on March 10 at 160.1, and on March 17 it had risen to
160.6. As pointed out above, resistance to the increas
transportation has improved but little since last month.
ing price level is already apparent in some lines, and
The labor problem is one of the biggest with which
manufacturers must contend at this time. The short manufacturers fear that this resistance will become
stronger as the price level rises.
age of labor has now reached considerable proportions,
and it is expected to become more acute with the re
As has been the case for several months, business
expansion has been greatest in the iron and steel in
sumption of outdoor activity. There has been much
bidding among employers for help, and as *a result dustry. In fact, the demand for iron and steel products
wages have risen during the past two months. Some of all classes has been so large that many manufactur
indication of present labor conditions is found in the ers have been forced to refuse much of the business
employment statistics compiled by this hank. These offered. Pig iron especially has shown great improve
show that the number of workers in thirty-one industries ment, for in addition to the increase in the domestic
in the Third Federal Reserve District during February demand, exports are steadily growing. To judge by
was 1.7 per cent larger than that in January, and that present demand, production in the iron and steel in
average wages increased 4.6 per cent in February. Fur dustry should be at capacity, but it is doubtful whether
ther evidence is found in the report on unemployment operations total more than 80 per cent. This is due al
issued by the Pennsylvania State Department of Labor most entirely to the scarcity of both skilled and un
and Industry. That bureau estimates that the num skilled labor. The labor situation in these industries
is becoming very acute, and no relief is in sight. Prices
ber of unemployed in the five cities o f Harrisburg,
Johnstown, Philadelphia, Reading, and Scranton was of iron and steel products have continued to rise, but
12,590 on March 15— a decrease o f 5.9 per cent as the increases have as yet had no effect upon the demand.
The call for building materials is second only to that
compared with the number on March 1. and of 20.7
for iron and steel products. Sales of paint, lumber, and
per cent with that on January 1. Practically none of
bricks are steadily increasing, and in the case of the
the unemployed were industrial workers.
The price situation is still causing concern. The latter two materials, the demand is so large that deal-
SYNOPSIS OF BUSINESS CONDITIONS
Compiled as of March 23, 1923
Business
Demand
Third Federal Reserve District
Prices
Labor situation
Finished
stocks
Supply
Bricks
Cigars
Coal, anthracite
Coal, bituminous
Coke
Confectionery
Cotton Goods
Drugs, wholesale
Dry Goods, wholesale
Floor coverings
Gas and
electric fixtures
Good
Good
Good
Fair
Good
Good
Excellent
Fair
Good
Excellent
Firm
Firm
Firm
Declining
Firm
Firm to higher
Higher
Firm
Higher
Firm to higher
Light
Moderate
Light
Increasing
Light
Moderate
Light
Moderate
Moderate
Light
Good
Increasing
Moderate
Glass
Excellent
Increasing
Groceries, wholesale
Fair to good
Light
Sufficient
| Some scarcity
Some scarcity
Sufficient
Some scarcity
, Some scarcity
| Sufficient
|
Collections
Wages
Unchanged
Fair to good
Few increases Fair to good
| Unchanged
Unchanged
Unchanged
Increasing
Fair
Very good
Fair to good
Fair
Unchanged
Good
Some scarcity
Unchanged
Fair
Some scarcity
Some
increases
Good
Hosiery,
full-fashioned
Fair
Upward trend Moderate
Firm or
Moderate
increasing
Firm to
Moderate
slightly lower
Hosiery, seamless
Fair
Firm to higher Moderate
Iron and steel
Good
Increasing
Light
Leather, belting
Good
Firm
Moderate
Leather, heavy
Good
Firm to higher Heavy
Leather, upper
Fair to good
Firm
Lumber
Good
Increasing
Oils, crude
Good
Increasing
Oils, refined
Good
Good
Good
Firm
Good
Firm to higher
Sufficient
Unchanged
Fair
Some scarcity
Unchanged
Higher for
skilled
Fair to good
Hardware, wholesale Good
Paints
Paper
i
Sufficient
Some scarcity
j Scarce
Some scarcity
Fair to good
Fair to good
Fair to good
Good
Moderate
Sufficient
Unchanged
Good
Light
Some scarcity
Unchanged
Fair to good
Moderate
Sufficient
Unchanged
Increasing
Moderate
Sufficient
Unchanged
Firm or
increasing
Moderate
Sufficient
Unchanged
Light to
moderate
Some scarcity
Fair to good
Firm
Fair to good
Firm to higher Moderate
Shoes, wholesale
Good
Silk goods
Silk, thrown
Sugar, refined
Underwear, heavy
weight
Underwear, light
weight
Woolen and
worsted goods
Woolen and
worsted yarns
Fair to good
Poor to fair
Fair
Higher
Higher
Declining
Good
Firm to higher Light
Some scarcity
Good
Firm to higher Light
! Some scarcity
Fair
Unchanged
Shoes, retail
Fair to good
j
Sufficient
Printing
and publishing
Shoes, manufacture
Good
_
Unchanged
to higher
! Unchanged
to higher
Some
increases
Unchanged
to higher
Firm
Higher
Higher
Moderate
Light to
moderate
Light
4
Good
\Few increases Fair to good
Scarcity skilled
Fair to good
Fair but
becoming
slower
Moderate
Moderate
Light
Moderate
Good
;
j Some scarcity
Scarce
j Some scarcity
Satisfactory
Some increases Good
Unchanged
Fair to good
to higher
j Unchanged
Fair to good
to higher
Higher
Fair to good
Some
advances
Good
ers and manufacturers are unable to meet it. The glass
industry is receiving unprecedented orders, with auto
mobile manufacturers and construction industries com
peting for the available supplies.
In the textile industries, advancing quotations during
the past few weeks have had considerable effect upon
the demand. This is especially true in the case of
yarns. Sales of worsted yarn, cotton yarn and thrown
silk, although still fairly large, have declined since last
month, as manufacturers of fabrics have been unwilling
to contract for further supplies at the prices quoted. This
is true in spite of the fact that fabrics have continued
to be in good request. Sales of broad silks have in
creased, and prices have advanced. Cotton goods have
sold very well, but the goods that have risen most
vapidly in price are now in somewhat lessened demand.
Woolen and worsted goods have been in good request,
but total sales for fall delivery have not been as large
as was anticipated. This is attributed almost entirely
to the rising prices. The hosiery industry has not
shared in the expansion of business to the extent that
most industries have. Indeed, difficulty has been ex
perienced in obtaining business at prices that pre
vailed six months ago when yarn values were much
lower than they are today. Only in the case of a few
specialties has there been any advance in hosiery prices.
The underwear market has not been especially active
during the month. Most of the business for spring
delivery had previously been placed and the total of
repeat orders has not been large. Many manufacturers
of fall underwear report that they had previously
booked all the business they cared to accept in view
of the existing price situation, but others state that
they have been unable to obtain additional fall business
at the new prices. Manufacturers of floor coverings
report that the demand is heavy and shows no signs
of slackening; and they expect even greater business
upon the opening o f the fall lines early in April. Sales
of linoleum have continued to increase, and production
J now at the highest point in the history of the indus
s
try.
As was expected, the volume of orders for shoes
declined somewhat during March. This was because
practically all o f the business for Easter delivery had
been placed during the previous months and retailers
have delayed the placing of orders for shipment after
Easter until the results o f the Easter trade should be
known. In the leather market the demand for the
heavy leathers has continued active. The staple upper
leathers have been in somewhat smaller request, but
sales o f the specialties have increased. Manufacturers
° f leather goods report a large increase in demand at
Prices about 10 per cent above those of this time last
year.
Book, magazine, and wrapping papers have been in
steadily increasing demand during the month. Opera
tions in paper mills are proceeding at capacity, but in
spite of this fact stocks that accumulated during Janu
ary and February are decreasing. Prices of paper and
chemical pulps have shown practically no change dur
ing the past five weeks, but mechanical pulp has de
clined from $3.50 to $6 per ton during that time.
Wholesalers of paper report a very heavy call for kraft
paper, and they are having difficulty in meeting it,
owing to the paper strike in Sweden. The demand in
the printing and publishing industry has increased dur
ing the month and is larger than it was in January
and February. Price cutting in the printing trades has
disappeared, and in some cases advances of from 5 to
10 per cent are reported.
In the cigar industry, too, the demand has increased
since February, and production is proceeding at about
85 per cent of capacity. Confectionery manufacturers
report that the call for their products is considerably
ahead of that of March, 1922, with both staples and
specialties for the Easter trade in large demand. Prices
have increased since the first of the year and are now
about 8 per cent above the level at that time.
Activity in the bituminous market has continued to
decline, and prices have fallen off from 50 cents to
$1.00 a ton during the month. The demand for anthra
cite, however, is still very heavy, and production con
tinues at two million tons weekly. There has been no
change in anthracite prices. The call for coke for
household use has been smaller, but total sales have
been sustained by the increased needs of the iron and
steel industry.
EMPLOYMENT AND WAGES
Employment and wages in the manufacturing indus
tries of the Third Federal Reserve District during Feb
ruary continued the strong upward trend which was
manifested during the preceding month. Our revised
E M P L O Y M E N T A N D W A G ES
T H IR D
FED ERAL
RESERVE
DISTRICT
Em ploym ent and wages in 479 m anufacturing establishments expressed
as index num bers with 1922 averages equal to 100.
Source— Federal Reserve Bank of Philadelphia
5
employing 192,512 operatives, is now represented in
the index. Twelve new industries were added during
the month, so that thirty-one of the most important
groups of manufacturing plants are now included. The
geographical distribution is such that separate employ
ment reports for twenty-two cities in the district are
shown. Nearly every manufacturing industry which
employs more than 3000 employees in the Third Fed
eral Reserve District, or which manufactures products
with an annual value of more than $ 20,000,000, is now
included. The total employment of the thirty-one in
dustries now comprising the index is close to 65 per
cent of the total industrial employment in the district,
and the annual value of the product of these industries
is over 70 per cent of the total for the district. Hence,
it is evident that the index numbers published below
should be accurate indicators of the trend of wages and
employment in the manufacturing industries. The in-
index of employment was 118 in February, as com
pared with 116 in January and 100 for the average of
the year 1922. Average weekly wages advanced from
109 in January to 114 in February. Although the ma
jority of the industries took part in the general advance,
certain groups such as iron and steel plants, foundries
and machine shops, and locomotive and car construction
shops, accounted for the major portion of the gain. In
a few instances, notably in the clothing, cotton goods,
tobacco, and boot and shoe industries, employment de
clined somewhat. The chart on page 5 shows the ad
vance that has occurred in employment and wages in
January and February as compared with the averages
for 1922. The two tables give the detailed figures for
separate industries and separate cities respectively.
During the past month we have been able to extend
the scope of these employment and wage statistics to
such a point that a total of 479 manufacturing firms,
Wages and employment
Third Federal Reserve District
Weekly wages
Industry
1Number of
reporting
firms
Index numbers
Average 1922=100
January
All industries (weighted index)
Automobiles and parts...................................
Locomotive and car construction and repair.
Foundries and machine shops ....................
Electrical machinery ....................................
Iron and steel products .................................
Shipbuilding ...................................................
Carpets and r u g s ............................................
Clothing ..........................................................
Cotton goods .................................................
Felt hats .........................................................
Knit goods .....................................................
Silk goods ...................................... ................
Worsteds and woolens ..................................
Bakeries ...........................................................
Canneries .........................................................
Confectionery and ice cream........................
Slaughtering and meat packing....................
Sugar refining ................................................
Cigars and tobacco ........................................
Leather ............................................................
Boots and s h o e s.............................................
Cement ............................................................
Glass ................................................................
Pottery ............................................................
Chemicals and paints . , ...............................
Petroleum refining ........................................
Rubber tires and g o o d s .................................
Paper and pulp .............................................
Printing and publishing ...............................
Furniture .........................................................
Musical instruments .....................................
479
18
8
36
18
31
5
12
20
17
4
26
39
22
14
6
19
10
3
13
28
17
15
7
9
16
4
10
13
20
16
3
February
Employment
Actual
Index numbers
Average 1922 = 100
February
January
February
|
Actual
j
February
109
114
$24.53
116
118
192,512
110
112
111
115
125
99
100
106 103
98
103
108
97
106
79
107
104
99
108
109
105
122
126
80
114
108
100
116
108
104
96
110
120
118
117
128
102
103
117
106
103
124
113
102
106
77
104
105
98
115
111
104
114
119
81
111
113
104
111
108
106
99
26.05
28.51
25.02
23.46
27.36
25.86
26.48
20.99
22.32
25.52
23.20
18.97
20.61
28.09
15.09
18.66
28.77
26.42
16.14
24.07
18.51
25.14
31.60
24.90
27.88
25.77
24.29
23.69
33.77
23.44
25.53
122
169
114
101
120
112
110
99
104
119
103
106
102
100
114
100
104
88
102
104
106
103
95
83
123
104
106
106
100
114
109
126
179
124
103
121
118
112
98
103
121
105
106
102
101
115
101
104
102
96
104
103
104
108
86
126
106
109
106
105
114
109
6,741
23,826
5,953
2,869
20,136
11,169
3,024
3,142
7,039
4,802
5,656
17,464
9,160
2,369
2,417
4,438
1,321
2,361
5,955
8,306
2,597
7,080
880
1,255
4,812
5,866
4,085
2,719
4,646
2,583
7,841
6
.
Banking statistics—Third District
000,000’s omitted
Four
weeks
ago
Eight
weeks
ago
00
Reporting member banks:
Loans and discounts:
Sec’d by U. S. securities... . i
Sec’d by other stocks and
bonds .................................
All others (commercial). . . . .
Latest*
■
m
elusion of twelve new industries necessitated a change
in the system of weighting and, in some cases, a re
vision o f the index numbers for January. In the future
we hope to retain a fixed number of reporting firms
whose reports will be available early enough each
month to be included. Hence, the index numbers from
now on should be rarely, if ever, revised.
$ 20
$ 20
262
332
237
334
242
330
Total ..................................! $612
302
Investments .............................
Total deposits...........................
795
$591
306
777
$592
318
783
$ 58
26
29
$ 41
26
29
$113
205
116
225
70.0%
$ 96
197
121
242
76.0%
Employment in reporting plants in principal cities
Third Federal Reserve District
Index numbers
iNumber of
reporting
firms
Cities
Average 1922=100
■
January
Philadelphia . . . .
Camden .............
Allentown .........
R eading..............
Wilmington .......
Chester ...............
Trenton .............
Williamsport .. . .
Harrisburg .......
Hazleton ............
Scranton ............
York ..................
Lancaster ...........
Bridgeport .........
Bloomsburg.......
Easton ...............
Pottstown .........
Wilkes-Barre ...
Lebanon .............
Columbia ...........
Norristown ..*...
Bethlehem .........
All oth ers...........
Total ...............
184
16
19
17
12
6
15
12
8
3
13
17
7
3
4
7
4
5 *
4
3
3
4
113
117
107
104
121
109
108
98
108
111
120
96
102
112
103
113
99
109
102
113
89
112
112
112
Number
employed
February
February
121
108
105
128
109
125
101
100
109
123
93
112
106
107
111
100
114
103
113
105
110
114
111
479
87,086
15,902
8,278
8,255
5,121
5,077
4,532
2,541
2,480
2,413
1,992
1,929
1,903
1,778
1,418
1.347
1,256
1,017
952
686
626
513
35,410
192,512
FINANCIAL CONDITIONS
Investments and commercial loans of member banks
in Philadelphia, Camden, Scranton, and Wilmington
declined slightly in the four weeks ending March 14,
but secured loans and deposits advanced considerably.
In a period of equal length ending March 21, the Fed
eral Reserve Bank of Philadelphia reports an increase
in discounts from 58 to 61 millions, and in purchased
bills from 26 to 28 millions. Holdings of United States
securities changed but little. Federal reserve notes in
circulation declined, but an increase in deposits and a
large falling-oft in total reserves carried the reserve
ratio from 70 per cent on February 21 to 68.1 per cent
on March 21. Comparative figures are given in the
table:
Federal Reserve Bank:
Discounts .................................
Commercial paper....................
L^nited States securities...........
$ 62
28
29
Total earning assets......... ! $119
Federal res. note circulation .. ■ 198
Total deposits........................’..!
119
Total reserves.........................
216
Reserve ratio...........................
68.1%
!
* For reporting member banks March 14; for. Federal Reserve Bank
March 21.
The average of twenty industrial stocks attained a
new high point of 105.38 on March 20, as against 103.56
a month ago. Bonds and railroad stocks
Securities declined, however, and the average of
forty bonds is now 5.64 points below the
peak of 92.12 on September 14, 1922. Sales of both
stocks and bonds are smaller in volume than they were
last month. Comparisons of price averages and sales
follow.
March 20,
1923
Securities (average prices):
20 industrial stocks................
20 railroad stocks....................
10 first-grade rail bon ds.......
10 second-grade rail bonds .. .
10 public utility bonds.............
10 industrial bonds..................
4 Liberty bonds......................
$105.38
89.60
84.49
81.27
87.25
92.90
97.86
Month
ago
$103.56
90.17
87.25
84.04
88.25
94.61
98.62
Two
months
ago
$97.85
85.33
87.17
83.72
87.78
94.88
98.56
A further increase in savings deposits during Febru
ary is reported by eighty banks in this district. Records
since the beginning of 1920 show that
^a n8s
y
such increase is usual at this season of the
eposi 8 year^ hut the gain this year, from $442,083,000 to $446,773,000, is larger than it has been here
tofore. O f the total increase of $4,690,000, only
$621,807 was due to the payment of interest. Com
parison of deposits on March 1 with those on the same
date in previous vears shows the following changes:
1922, + 5 .1 % ; 1921, + 6 .9 % 1920, + 1 7 .1 % . Detailed
changes by cities follow :
the middle west, however, sales at 4j£ per cent are in
considerable volume.
The total purchased by Philadelphia institutions is
small, but the present range of prices is proving at
tractive to a number of country banks that have not
been buyers of commercial paper during recent months.
Dealers’ lists are as a rule fairly full, and the demand
for money in the open market, although not commen
surate with the expansion in business, is good.
In February, sales by six reporting firms in the Third
Federal Reserve District were $6,825,000, as compared
with $9,477,000 in January. Even though it is consid
ered that there were only twenty-two working days in
February as compared with twenty-six in January, this
decrease in sales is large. Philadelphia institutions
purchased only $2,760,000, while out of town sales
totaled $4,065,000. More than half of the transactions
wr
ere at 4% per cent, and nearly all the rest were about
equally divided between 4l 2 and 5 per cent, although
/
early in the month a few sales were consummated at
4J4 per cent. In February, 1922, five dealers sold
$4,697,000, and the same firms in February, 1923, sold
$5,170,000, a gain of 10 per cent.
The past month has been a rather uneventful one in
the foreign exchange markets, and most of the rates
.
have fluctuated within narrow limits.
foreign
The v0]ume 0f commercial transactions
exchange
is normally small at this time of the year,
and speculative trading has been limited by the uncer1
tainty in the political situation on the Continent. Ster
ling, which on February 21 advanced to a high point of
$4.7219, or 97 per cent of par, following the funding
of the British debt to the United States, has since weak
ened slightly.
During most of the past month the
pound has been selling within a few points of $4.70.
French and Belgian francs and Italian lire have been
sluggish, pending an adjustment of the situation in the
Ruhr. Lire have been quite steady, selling on March
20 at approximately the same levels as on February 2 0 ;
but French francs have strengthened during the past
few days, rising to 6.51 cents, as compared with 6.09
cents a month ago. Belgian francs also advanced in
sympathy with French exchange.
The currencies of the former neutral countries have
also been quiet and steady, although most of them ex
perienced fractional losses. German marks have been
comparatively strong, in spite of the situation in the
Ruhr and the continued expansion of the already enor
mous Reichsbank circulation. The strength in marks
is generally attributed to government support of the
market. Probably the most pronounced exhibition of
strength in the foreign exchange market was that ex
hibited by the Hongkong dollar and the Shanghai tael.
The latter advanced from $.7135 to $.7590, and the
former from $.5298 to $.5581, during the month end
ing March 20. These exchanges, of course, reflect the
upward trend in silver prices.
Savings deposits in the Third Federal Reserve District
Number
of
reporting
banks
Altoona ................
Chester .................
Harrisburg ...........
Johnstown ...........
Lancaster .............
Philadelphia ........
Reading ...............
Scranton ..............
Trenton ................
Wilkes-Barre ----W illiam sport.......
Wilmington .........
York ....................
Others ................
Total.................. ,|
5
5
4
Per cent increase or decrease
March 1, 1923, compared with—
February
1923
March
1922
+13.6
+ 6.1
+60.9
+ 5.4
+32.5
+ 4.0
+ 8.0
+ 1.4
+ 9.2
— 3.7
+11.8
+16.9
+14.8
+ 2.7
+3.1
+ 1.4
+2.5
+1.8
+2.6
6
3
9
3
6
6
5
4
5
5
14
+3.5
+2.3
+2.3
80
+1.1
+ -4
— .4
+3.4
+1.3
+1.8
+ -8
March
1921
+ 12.7
— 10.2
+105.3
1+5.1
i
+
-5
+
+
+
+
+
+
+
+
+
+
43.3
4.6
8.8
13.6
6.2
11.7
13.5
17.8
23.1
10.2
+
6.9
A falling off in acceptance transactions for the four
weeks ending March 11 was reported by five dealers
_
,
,
operating in this district. Sales averan ers.
aged $2,606,000 weekly, as compared
accep fln c e s wjtj1 $2,950,000 in the previous period,
and with $2,617,000 a year ago. Offerings are lim
ited, and rates are still at 4 and 4p6 per cent. The re
ports o f the dealers are summarized below :
Sales
--------------------------------------- ' Purchases
To F. R. bank
Toothers
Weekly averages for period:
1923
!
;
’ j
Feb. 12 to Mar. 11..................$2,424,000
$182,000 $642,000
Jan. 15 to Feb.12................... 2,815,000
135,000
299,000
Dec. 17 to Jan. 14 .................. 2,237,000
236,000
861,000
1922
Feb. 13 to Mar. 12.............. 1,842,000 j 775,000 j 420,000
Twelve accepting banks in the district report the total
acceptances executed in the month ending March 10 as
being $3,513,000, as against $3,764,000 in the previous
month, $2,365,000 a year ago, and $5,325,000 two years
ago. W ool, cotton, silk, coffee, paper, tobacco, skins,
hides, and flour are among the commodities covered by
acceptances executed locally.
Rates at which sales of commercial paper have been
made have advanced about J4 Per cent since the middle
. j of February. The minimum rate at
°pap^rCia which banks will now buy is 4 % per
cent, and at that figure very few sales
in this district are reported. Transactions at 5 per cent
form the bulk of the business, but some sales outside
the city have been made at 5J4 and
per cent. In
8
In some cases, however, sales have not come up to ex
pectation, and for this the poor weather is held respon
sible. But on the comparatively few clear and warm
days the volume of business done has been extremely
satisfactory.
Prices in nearly all lines continue to advance, and as
is usual on rising markets, purchases have increased
and more contracts have been made for future deliv
ery than at this period of last year. Except in a com
paratively few lines, however, these purchases are for
spring and summer merchandise, and delivery is to be
made during the next three months. The retail mer
chant at present appears to be very conservative and not
easily carried away by the perhaps over-enthusiastic
salesmen of manufacturers and wholesalers.
During February, sales throughout the district gained
13.2 per cent as compared with February, 1922. This
improvement was not as large as in January, but
nevertheless showed a decided increase in purchasing.
Women’s apparel stores outside Philadelphia, however,
showed a decrease of 9.5 per cent as compared with
February, 1922, and was the only division of the trade
that did not show an increase in sales.
Foreign exchange rates
Noon cables
Par
value
London ................ $4.8665
Paris ....................
.1930
A ntw erp............... .1930
M ilan....................
.1930
Berlin ..................
.2382
V ienna.................. .2026
Amsterdam .........
.4020
Copenhagen .........
.2680
Stockholm ...........
.2680
Madrid ................
.1930
Berne ....................
.1930
Buenos A ir e s .......
.9648
Shanghai ............ .7082
March 20,
1923
$4.6923
.0651
.0563
.0485
.000048
000014
.3949
.1918
.2661
.1546
.1853
.8404
* .7590
February 20,
1923
March 20,
1922
$4.7154
.0609
.0536
.0483
000042
.000014
.3968
.1931
.2665
.1568
.1891
.8425
.7135
$4.3796
.0897
.0843
.0507
.003357
.000148
.3789
.2119
.2621
.1553
.1949
.8318
.7183
RETAIL TRADE
Each month the sales at retail show a gain as com
pared with the corresponding month of 1922, and
March business should show a considerable increase
in sales as compared with March of last year, for in
1922 the majority of the pre-Easter buying fell in April.
Condition of retail trade during February, 1923
C o m pa r is o n of N et S ales
C o m p a r is o n of S t o c k s
:
Jan. 1 to
Feb. 28, 1923
with
Jan. 1 to
Feb. 28, 1922
Feb., 1923
with
Feb., 1922
2.9
3.7
2.8
3.6
10.7%
10.9 “
+ 5.4 “
— 3.5 “
+ 7.7 “
+16.8 “
2.3
2.3
2.0
2.3
10.8 “
+27.1 “
+ 9.5 “
+ 6.3 “
+ 9.4 “
+12.7 “
+ .8 “
+11.2 “
+ 8.9 “
+ 6.8 “
+ 1.8 “
+10.2 “
+12.5 “
+ 4.5 “
+ 7.3 “
+ 7.1 “
+22.1 “
+ 8.5 “
+14.2 “
+16.5 “
+ 5.9“
+15.5 “
+ 3.6 “
2.5
3.0
2.2
2-0
2.8
2.5
2.5
2.1
1.5
2.2
1.6
2.6
2.6
1.9
1.8
2.7
2.3
2.6
2.3
1.3
1.9
1.6
12.1 “
+13.7 “
+14.6 “
+12.6 “
+ 8.8 “
+ 8.6 “
+ 9.1 “
+ 7.8“
+ 6.0 “
+10.3 “
2.9
375
2.3
2.8
3.5
2.2
11.7“
12.2 “
10.7“
+10.1“
+10.7 “
+ 2.5 “
+14.2 “
3.1
3.0
6.4 “
+ 1 5 .3 “
+15.3 “
+ 1 4 .9 “
+ 17.0 “
+16.5 “
+ 3.8 “
— 2.2 “
+10.7 “
2.7
1.7
2.7
1.6
12.2 “
+15.0 “
— 9.5 “
+13.9 “
+ -1“
— 6.6 “
+ 1 2 .0 “
+20.6 “
+18.3 “
6.2
3.0
4.9
3.2
6.5 “
7.5 “
+31.8 “
+29.6 “
+ 6.7 “
2.3
1.9
3.0 “
+ 10.4 “
+ .7 “
+67.0 “
+13.7 “
+24.3 “
+11.7 “
+18.9 “
+14.1 “
+ 7.1 “
+18.8 “
+ -5“
+ 8.8 “
+16.9 “
+ 9.4 “
+15.1 “
+ 7.8“
+49.1 “
+15.0 “
+24.1 “
+18.1 “
+19.1 “
+14.0 “
+10.7 “
+11.8 “
+ 1.9“
+14.4 “
+ 1 7 .6 “
+ 8.1 “
All departm ent s to r e s ...........
Department stores in Phila.......1
Depart, stores outside Phila....
+ 1 2 .6 “
+13.7 “
+11.2 “
All apparel stores....................
Men’s apparel stores
—in Philadelphia.......
u
—outside Philadelphia
Women’s apparel stores
— in Philadelphia.......
—outside Philadelphia
Credit h ou ses.........
+37.1 “
1
1
Times per year based on cumulative period.
Feb. 28, 1923
with
Jan. 31, 1923
+ 8.9%
+ 7.9 “
+14.0%
+ 13.7 “
—Harrisburg .............
—Johnstown ..............
—Lancaster ...............
—R eadin g..................
—Scranton ................
—Trenton ..................
—Wilkes-Barre ........
—Williamsport .........
—Wilmington ...........
—Y o r k ........................
—All other cities.......
|
Percentage of
orders outstand
ing Feb. 28,
i
1923, to
■Jan. 1 to Jan. 1 to total purchases
|
Feb. 28, Feb. 28,
in 1922
1923
1922
+ 7.6%
+ 6.6 “
+13.2%
+ 13.3 “
i
All reporting firms
Firms in—Philadelphia ...........
—Allentown, Easton
and Bethlehem ...
—Altoona ..................
Feb. 28, 1923
with
Feb. 28, 1922
R a te of T u r n o v e r *
9
16.4 “
9.4 “
4.2 “
WHOLESALE TRADE
In spite of the fact that sales in wholesale hardware,
groceries, dry goods, and drugs, as figured in dollars,
were smaller in February than in January, sales in all
five reporting wholesale lines, showed a remarkable in
crease as compared with those of February, 1922. In
fact, the gains range from 9.9 to 36.7 per cent. The
decline in February was due rather to the shortness
of the month than to any falling off in the volume of
business, and March trade has been generally good.
It is customary in most wholesale lines for the ratio
of accounts outstanding to sales to increase in February,
but wholesale collections in all lines except drugs and
groceries are more prompt than they were a year ago.
In fact, drugs is the only line in which collections are
slower.
Aided for the time being by rising values of raw
materials, the demand for wholesale drygoods has been
so well maintained that sales in February,
Drygoods though it was a short month, were only
3.4 per cent smaller than those of January.
In comparison with the figures for February of last
year, when orders were slack, this year's sales show a
gain of 24.6 per cent. The demand at the moment may
be described as being from fair to good. Since only
about half of our reporting firms are offering fall mer
chandise, a large part of the orders being booked by
wholesalers are for spot delivery. Although in a few
cases more than 50 per cent of the orders on the books
are for shipment further ahead than May, the majority
of wholesalers have taken but little business beyond that
date.
Our reports concerning inventories are conflicting.
Half of them indicate that wholesalers are making
slight additions to their stock, as is their custom; but
others report no increases.
During the past month, prices quoted by whole
salers were raised 10 per cent on some articles in order
to take care of higher costs. However, since some mer
chandise has not been advanced at all, the average in
crease was not more than 3 or 5 per cent.
Collections are fair. The February ratio of accounts
outstanding to sales, of 228.5 per cent, was higher than
the ratio of 212.4 per cent for January; but in March it
may be expected to decline again.
The February sales of drugs at wholesale were de
cidedly smaller than those in January, for the latter
were increased by the influx of orders after
Drugs
retailers had taken inventory; but thev were
9.9 per cent heavier than the sales of Febru
ary, 1922. In March, which is considered the best
winter month in the wholesale drug business, the de
mand is reported to have been fair. Orders were larger
in volume and included a greater variety of items.
However, our reports regarding March orders are not
uniform, some firms having experienced an increase
over the business booked in February, whereas others
reported a decrease. Since the first of the year, the trade
in some items has been stimulated by the sickness that
has been prevalent, but business was lost in both Janu
ary and February by delays in freight shipments.
Prices generally have continued firm, as is shown by
the index of forty crude drugs compiled by the ‘‘Oil,
Paint and Drug Reporter.” For the week ending
March 19, this index was 152.3, as compared with 150.1
the month before. Supplies of many items are low, and
quotations on importations are strengthened by the high
rate of sterling exchange. Since the Government sur
plus of phenol was disposed of, its shortage has been
increasing, and the price has risen from about 12 cents
to 45 cents a pound.
Collections are fairly good, but the ratio of accounts
outstanding to sales was 146.9 for February, as com
pared with 136.3 for January. February collections
were also slower than those of a year ago.
Total sales of hardware at wholesale in this district
during February were considerably in excess of those
of February, 1922 and 1921, but were
Hardware
slightly less than in January of this year.
This decline is, of course, largelv at
tributable to the smaller number of business davs in
February. The thirty-five firms reporting to this bank
showed a decrease of 5 per cent in net Sides, and our
index of hardware sales fell from 92 in January to 89
Condition of wholesale trade during February, 1923
Percentage of increase or decrease in—
Number of
reporting
firms
Net sales
Feb., 1923, compared
with—
Jan., 1923
Boots and shoes.......
Drugs ........................
Dry goods .................
Groceries ..................
Hardware ................
13
15
21
64
35
outstanding to
sales
Accounts outstanding
Feb., 1923, compared
with—
Feb., 1922
Jan., 1923
Feb., 1922
+3.9%
—7.9 “
—3.4 “
— 1.8 “
—5.0 “
+36.7%
+ 9.9 “
+24.6 “
+17.1 “
+28.1 “
+4.4%
+3.5 “
+3.9 “
— 1.2 “
+1.7 “
+ 17.5%
+22.8 “
+ 5.5 “
+18.9 “
+24.2 “
10
Feb., 1923 Jan., 1923
! 317.7%
! 146.9“
228.5 “
116.7“
I 198.2“
291.4%
136.3 “
212.4 “
114.4 “
183.1 “
Feb., 1922
408.1%
136.3 •
•
272.2 “
116.2“
202.3 “
in February. That this falling off is usual at this sea
son is evident from the accompanying table, which gives
index numbers of hardware sales in January and Febru
ary of each of the past five years. In each year, Febru
ary sales were somewhat smaller than those of January.
Index of hardware sales
(Monthly average 1922=100)
Dollar sales
February
January
1919.............................
1920.............................
1921.........................
1922.............................
1923.............................
69
107
87
71
92
.
65
93
84
68
89
Estimated
physical volume
January
48
75
70
77
84
February
47
60
70
76
78
The accompanying chart also shows the marked sea
sonal fluctuation in the wholesale hardware business.
Upward trends are evident in the spring and fall, and
declines in winter and mid-summer. The solid line on
the chart shows the trend of the monthly volume of
sales in dollars reported by the 22 firms whose figures
comprise the index. The broken line indicates the esti
mated physical volume of these sales in each month, as
compared with the monthly average for 1922. In other
words, it shows what the dollar sales would have been
each month if average 1922 prices had prevailed during
the entire period. The Bureau o f Labor Statistics’
index number of wholesale metal products prices was
nsed in arriving at this estimate. Although this index
number does not represent wholesale hardware prices
been accompanied by a corresponding shrinkage
in the actual am ounts of goods sold.
Source— Federal Reserve Bank of Philadelphia.
perfectly, it is a fair indicator of their general move
ment. Hence, the broken line shows approximately
the variation in the actual volume of goods sold. It is
significant that, although dollar sales were much larger
in 1919 and 1920 than in the succeeding two years, the
difference between the physical volume of sales in 1919
and 1920 and in 1921 and 1922 was much smaller. The
above table, showing the index of sales in January and
February, figured in dollars, also gives an index num
ber of the estimated physical volume of sales in the
same months.
Reports received during the first two weeks of March
indicate a marked recovery from the low level of sales
in February. That a decided upward movement usually
occurs in this month is evident from the accompany
ing chart. Although it is too early, as yet, to estimate
the total volume of March business, it is probable that
it will equal or exceed that of 1922 and 1921. Builders’
hardware is in exceptionally good demand this spring,
and agricultural supplies such as tools and wire net
ting are also selling in large quantities.
Collections, however, have not been entirely satisfac
tory. The volume of accounts outstanding was larger
in February than in January, in spite of the decline in
net sales.
Wholesale shoe dealers report that a fair volume of
business has been booked for April shipment, but that
because of the lull usual after Easter they
Shoes
expect billings to be lighter in that month
than in March. If shoes now on order and
due from New England factories arrive in time to be
re-shippecl by wholesalers during March, that month
will show an unusually large increase as compared with
March, 1922. But traffic conditions in New England
are still very poor, and great difficulty is experienced in
getting shipments through.
Some dealers report that collections are slower than
they have been for some months, but others state that
they are fair or good. During February, sales by the
reporting firms in this district increased 3.9 per cent
as compared with January, and 36.7 per cent as com
pared with February, 1922. The ratio of accounts out
standing increased from 291.4 per cent in January to
317.7 per cent in February, and is to be compared with
408.1 per cent, the figure for February, 1922.
Although wholesale grocery sales for February were
1.8 per cent smaller than those of the previous month,
they were 17.1 larger than the sales of
Groceries
February, 1922. Using the average of
1922 as a base, the index number of
wholesale grocery sales for February was 107 as com
pared with 110 for January. In March, the demand
for spot delivery ranged from fair to good. A few
wholesalers reported the demand to be somewhat poor,
but the remainder of the returns were almost equally
divided between “ fair” and “ good.” In the past, March
sales have averaged much heavier than those of Febru-
11
arv. Some firms are not yet offering 1923 pack vege
tables for fall delivery, but the majority of those that
are taking orders reported the fall business to be fairly
satisfactory. In some cases, however, it has failed to
reach the volume anticipated, largely on account of local
conditions.
The spot demand has been well distributed over a
general line of merchandise. But it is of interest to
note that the demand for canned fish, which ordinarily
is heavy during Lent, has been lighter than usual. The
goods in greatest request have been canned goods,—
such as peas, tomatoes, asparagus tips, corn, and
fruits,— sugar, dried fruits, dry beans, coffee, milk, and
Lenten articles. The first items listed were the most
active. Flour has been selling slowly.
As is usual at this time of year wholesale grocery
stocks are decreasing, and stocks that were heavy at
the first of the year may now be described as moderate.
In many cases, however, supplies on hand have dimin
ished but little, and others have not decreased at all.
On the whole, prices have been tending upward, but
California dried and canned fruits, prunes, raisins,
eggs, butter, and cheese declined. The most conspicu
ous advances during the past month were on sugar,
soaps, coffee, salt, and peanut butter.
The increase of the ratio o f accounts outstanding to
sales, from 114.4 per cent for January to 116.7 per cent
for February, was to have been expected, but accord
ing to past experience the ratio should decline in
March. Nevertheless, there are many complaints that
collections are lagging and failing to improve.
British refiners have been more active in the market
than in any previous month of this year. The United
Kingdom refiners are reported to have paid the
equivalent of 5.40 cents, and the French refiners 5.50
cents, per pound, f. o. b. Cuba. Canadian refiners pur
chased some Santo Dominican sugar at 5.78 cents,
c. i. f. St. John.
Two Cuban centrales have already closed for the
season. They are the Central Los Canos in Oriente
Province and the Central Union at Matanzas. The
grinding period at Central Los Canos lasted only thirtyeight days, and the output of Central Union was only
69,000 bags, as contrasted with an estimated production
of 90,000 bags. Five other centrales, however, started
operations, two of which were not expected to open
this year. The weather in Cuba has been generally
favorable for grinding and good rains have fallen in
many sections, benefiting the late cane. In Camaguey
Province, the crop is reported to be exceptionally good,
but in Oriente Province the yield is rather disappoint
ing.
The total receipts of sugar at Cuban ports thus far
this year are very much larger than they were for the
corresponding periods of 1922 and 1921, but slightly
smaller than in 1919-1920, when the crop produced was
3,730,077 tons. The following table, based on figures
compiled by the “ American Sugar Bulletin,” shows the
receipts of new crop sugar at Cuban ports, the amounts
exported, and the balance of the supply, on March 10,
1923, and on March 31, 1922 and 1921.
SUGAR
Cuban sugar statistics
Despite only moderate buying by both refiners and
operators, raw sugar prices have held very firm dur
ing the month. On March first refiners
Raw
bought considerable quantities of Cuban
sugar SUgar at 5^ and $y2 cents> c & f, equivalent
to 7.16 and 7.28 cents per pound, duty paid. Before
the close o f the day, however, the price advanced to
5^i cents, c & f, equivalent to 7.41 cents, duty paid.
Slight reactions occurred in the days following, and
price dropped to 5j4 or 5l2 cents, c & f. However,
/
they remained at this level for only a few days, when a
recovery set in and Cuban sugars for March shipment
returned to the 5
cents, c & f, level. A few sales
were even made at 5 21/32 cents, c & f. Sales of
Porto Rican sugar were made at prices ranging from
7.15 to 7.41 cents per pound, delivered. On March 21
the price o f Cuban raw sugar fell to 5 7/16 cents, c & f,
for both March and April shipment, but refiners showed
no disposition to buy except at
cents, c & f.
United Kingdom and French refiners have purchased
fair quantities of Cuban sugars during the month, and
N ew
C rop
(In tons— 2240 lb s.)
Figures to March 10, 1923
(Estimated)
1922-23 to 1921-22 to 1920-21 to
March 10 March 31 March 31
Receipts total ...............................
Balance of crop ...........................
P ro d u ctio n , total crop..................
Stock, this date .............................
Consumption, to date ..................
Exports to date .............................
Balance supply, including all sugars
Centrales grinding (March 1 7 )...
1,552,529 1,049,022
2,647,471 2,947,365
4,200,000 3,996,387
497,944 595,966
10,000
30,000
1,044,585 433,056
3,145,415 3,875,886
179
177
1,149,554
2,786,486
3,936,040
612,551
30,000
517,003
3,463,552
191
Exports from Cuba thus far this year to the United
States are about 150.000 tons less than they were dur
ing the same period of 1922. And data compiled by
the “ American Sugar Bulletin” show that Cuban ex
ports to France, Great Britain, Canada, and the Far
East are-also smaller than they were in the first two and
a half months of 1922.
9.00 cents respectively. On March 22 all refiners estab
lished their price at 9.00 cents per pound, with the
exception of the two mentioned above, who quoted 8.90
and 8.75 cents respectively.
The Atlantic port statistics, compiled by the “ Ameri
can Sugar Bulletin,” show that meltings for the first
two and a half months of this year are over 100,000
tons less than for the same period of 1922. Refiners’
stocks, too, are smaller than at this time last year.
Cuban exports
(Estimated)
Tanuary 1 to
March 10, 1923
Destination
Tanuary 1 to
March 11, 1922
^Atlantic ports ...........................
734,163 tons 869,032 tons
New Orleans ...........................
99,050 “
103,656 “
Total United States ................
885,031 “
1,032,166 “
United K in gdom ........................
54,200 “
142,085 “
France ........................................
21,121 “
40,153 “
Other European countries . . . .
17,485 “
22,799 “
Canada ........................................
20,527 “
25,410 “
Far East ....................................
None
45,781 “
Total, including old crop........... 1,003,678 “
1,303,080 “
Amount, old crop ....................
874,817 “
None
* Boston, New York, Philadelphia and Baltimore.
The demand for refined sugar has not been heavy,
and indeed, at times during the month, has been very
light. Advances of fifteen points in refiners’
Refined prices caused a flurry of buying at the time
Sugar
the advance, but this soon subsided and
on the whole purchasing has been moderate. The large
purchasers— bakers, confectioners, and grocers— are
buying sparingly and from hand to mouth only. The
housewife, too, is apparently heeding the advice of re
finers not to hoard sugar, and the tendency in this direc
tion, which had been noted, has now halted.
The export demand for refined sugar, which last
year was very heavy, has been extremely light; in fact,
the total exports so far this year are only 18 per cent
of those for the same period of 1922. The relatively
high prices that have prevailed since the beginning of
February apparently have already curtailed both domes
tic and foreign consumption.
Atlantic port refiners, with the exception of two New
York refiners, quoted 9.15 cents per pound for fine
granulated at the beginning o f the month. Later the
nominal quotations advanced to 9.30 cents at all re
fineries except these two, which quoted 8.90 cents and
*Atlantic port statistics
(Estimated)
In tons— 2240 lbs.
Stocks (initial) ...............................
Receipts, raw (total) ......................
Supply (total) ...................................
Meltings (total) ...............................
lo tr a d e .............................
Requirements ...................................
Stocks (final) ..... ............................
Stocks (refiners) .............................
Stocks (importers) .........................
Exports ................
—
------
January 1 to
January 1 to
March 16, 1923 March 17, 1922
36,449
771,242
807,791
636,500
5,747
642,247
165,444
156,520
8,924
33,000
Boston, New York, Philadelphia, Baltimore.
34,276
934,925
969,201
757.000
11,349
768,349
200,852
173,308
27,544
178.000
CONFECTIONERY
The demand for Easter specialties has been excel
lent, and the staple lines of candy and confections are
in good request. Manufacturers report that sales are
greater than they were during January and February
and considerably larger than in March, 1922. Some
state that so far this year their sales run from 25 to 30
per cent above those of the same period last year.
Makers of hard candies report that the demand is ex
cellent and that the orders received for their greatest
Easter specialty, jelly beans, are larger than ever before.
Manufacturers of chocolates, marshmallows, chocolatecoafed and soft candies state that the demand is good
and far greater than it was in the early months of 1922.
This is partly accounted for by the fact that retailers
had only small stocks left over from the Christmas holi
days this year, whereas in 1922 their stocks were
heavy. Producers of bar chocolate, marshmallow whip,
cocoa, and chocolate coating report a heavy demand
from the grocery and baking trades. All but about 10
per cent of the orders on the books of manufacturers
are for immediate delivery, and the uncertainty of prices
of raw materials is such that many manufacturers are
accepting no orders for future delivery. The average
of factory operations, in this district, is about 85 per
cent of capacity.
Prices of candies and sweet chocolates are from 4 to
8 per cent higher than on January 1. Sugar is about
30 per cent higher, and glucose has advanced. Cocoa
beans, nut meats, milk and other raw materials have not
increased in price, and a few items used in candy manu
facture have declined slightly. But candy boxes are
from 10 to 15 per cent higher than on January 1. The
chart on page 14 shows the monthly prices of cocoa,
glucose, and sugar since 1914.
Stocks of finished goods at most of the factories are
moderate and are decreasing. Because of the uncer
tainty of prices, the majority of manufacturers are
carrying only light stocks of sugar and glucose; but
their supplies of other materials are fairly heavy.
Several candy makers, chiefly in Philadelphia, report
that skilled workers are scarce, and some are having
difficulty in getting unskilled help. Girl workers, even
apprentices, are especially scarce. A few manufactur
ers have recently increased wages about 5 per cent, but
the majority have made no changes.
13
The quotations shown are those on the closing days of each m on th
except for cocoa beans, which are quoted at the average annual
price. Cocoa beans are cheaper than they were before the
war, and glucose is only slightly higher than in 1914.
The period of steady sugar prices in 1918 and 1919 was
due to control of the industry by the Sugar
Equalization Board.
Sources— Frank G. Alden, Inc,, “ Dun’s Review,” “ Sugar”
and “ N. Y. Commercial.”
Delays in freight shipments are still a matter of con
cern to manufacturers, and several complain that slow
freight deliveries have caused them some losses of or
ders. Though New England is the chief center of con
gestion and delay, shipments to the South and West are
still moving slowly.
Collections vary from poor to good.
IRON AND STEEL
So heavy has been the demand for certain classes of
iron and steel products that mills in many cases have
been forced to refuse further business. This is espe
cially true o f bars, plates, and shapes. It is impossible
to obtain quick delivery on these products, and in some
instances order books are filled for the second quarter.
The pig iron market has taken on considerable strength,
and inquiries have been received even from England,
although but recently we were importing pig iron from
that country. Manufacturers of iron and steel castings
have had large orders from automobile and locomotive
works and from various other mills and factories. Rail
roads and mines are taking iron bars in large lots, and
the scrap market is exceedingly active, with supplies
becoming scarce. Sheets also are moving well, and
manufacturers of machinery and machine tools have
been busy on orders from paper mills, mines, and gen
eral industrial plants. In fact, there is no branch of
the iron and steel industry that is not busy. This con
dition is reflected in the unfilled orders of the United
States Steel Corporation, which on February 28
amounted to 7,283,989 tons, or 373,213 more than on
January 31. This is the largest tonnage o f unfilled
orders on the books of the corporation since January,
1921, at which time it was 7,573,614.
To meet the heavy demand, operations have been in
creased as much as the available labor supply will per
mit, and the average percentage of operations is over
80. That output has been at a high level is shown by
production figures for pig iron and steel ingots. Dur
ing February, pig iron production was at a daily rate
of 106,935 tons, the highest on record for that month,
and the largest for any month since March, 1920, at
which time the daily rate was 108,900 tons. On March
1 there were 278 furnaces in blast, as against 262 on
February 1, and preparations are being made to blow’ in
additional furnaces, some of w
’hich have not been
operated in over two years. Steel ingot production
during February, by the thirty companies which in 1921
made 87.50 per cent of the total for the country, was
2,919,017 tons, the largest total for February since
ingot statistics became available six years ago. Al
though this is less than the January output of 3.251,694
tons, the daily average was 121,625 tons, as against
120,433 tons in January.
The shortage of both skilled and unskilled labor is
becoming more acute, and in only a few cases is the
supply adequate. As a rule, labor is more plentiful
in the smaller towns, but this depends largely upon local
conditions. Numerous manufacturers during the month
have granted wage increases of from 5 per cent upward.
Transportation conditions vary with location, but many
complaints are made of embargoes to New’ England,
shortage of cars, and slow movement of freight.
Under the conditions numerated above, prices have of
course been strong, and many products have advanced.
Philadelphia 2X iron is quoted at $33, an increase of
$4 from last month, and numerous semi-finished and
some finished steel products are higher. Iron bars can
not be obtained at less than 2.725 cents; this compares
with 2.475 cents on February 13. The “ Iron A ge"
composite price for finished steel on March 20 was 2.710
cents a pound, as against 2.631 cents on February 20.
The same journal’s composite price of pig iron ad
vanced from $27.38 to $30.86 during the same period.
Collections as a rule are unchanged, but certain man
ufacturers consider them more prompt than they were
last month.
REAL ESTATE AND BUILDING
Operative builders report more activity this spring
than last year in the construction of houses, those sell
ing from $5,000 to $7,500 being in the greatest demand.
The majority of the present operations are being un
dertaken for sale. Prospective home owmers them
selves are building but little, and practically no houses
are being constructed for renting purposes. There is
a great demand for houses renting for less than $50,
and a considerable scarcity has developed in residences
14
o f this type. Houses that rent up to $80 are also in
good request, and there is some demand for apartments.
The majority of new buildings are residences, especially
two-story houses. Although some apartments are be
ing built, they are in the minority. Business and in
dustrial construction is somewhat greater than it was
last year, and new buildings are being rented without
difficulty. The estimated value of permits issued dur
ing February in fourteen cities of the Third Federal
Reserve District was slightly higher than it was in
January, in spite o f the shorter month, and as shown in
the table below, it exceeded the value of permits issued
in February, 1922, by $1,602,074.
Construction costs are estimated at from 15 to 25 per
cent above those o f last spring, and prompt deliveries
of many kinds of building materials are hard to obtain.
The trend o f prices is upward on practically all classes
o f materials used, and some builders fear that the rising
costs will curtail operations and purchases. In fact, in
some instances construction has been postponed because
o f higher costs. In many cases builders find it difficult
to obtain contracts for supplies for future delivery, as
dealers are uncertain about future costs and are re
luctant to make commitments.
No difficulty in general is found in placing first mort
gages, and trust companies are willing to lend from 50
to 60 per cent o f the value set by their own appraisers.
Six per cent is the ruling interest rate. Several reports
have been made, however, of a scarcity of funds with
building and loan associations, and second mortgages
in many instances are difficult to obtain.
Builders and contractors have* continued to place
heavy orders for building bricks, especially in the
vicinity of Philadelphia. As a result, most manufactur
ers have orders on their books that will keep their
plants running at capacity for several
Bricks
months. In some instances orders have
been placed for delivery beginning next fall,
but many sales are also being made to cover immediate
requirements. Reports are received of Philadelphia con
tractors inquiring in nearby cities for bricks, in the hope
of obtaining earlier delivery.
During the past two months many plants have been
closed, either for repairs or because of the weather, but
the majority of these have now resumed operations.
In practically all cases operations are at capacity, but
except in a few instances stocks are still light because
of the heavy sales. Although lack of labor has not
affected production materially, shortages here and there
have developed, and a few wage increases have been
granted. Prices are very firm at $22 in Philadelphia
and at slightly lower figures in other cities of the dis
trict.
Some reports state that collections are slower, but
they still average from fair to good.
The demand for all grades of lumber has continued
at such a high rate that some dealers are unable to meet
it. Although numerous orders for future
Lumber
delivery have been placed, the majority
of sales are for immediate and rush ship
ment. Not only are retailers and contractors buying
heavily, but increasing industrial activity has brought a
strong demand for the low-grade woods for crating and
general factory purposes. The steadily advancing
prices have apparently had little or no effect on the
demand, and buyers are anxious to fill their needs at
prevailing quotations.
Building permits issued and their estimated cost—February, 1923
Third Federal Reserve District
January to February, inclusive
1922
1923
1922
1923
Permits Operations Estimated cost
Allentown .................
A ltoon a ......................
Atlantic C ity .............
Camden......................
Harrisburg ...............
Lancaster ..................
Philadelphia .............
Reading ....................
Scranton ....................
Trenton ....................
Wilkes-Barre ...........
W illiam sport.............
W ilm ington...............
York ..........................
34
32
218
44
29
25
768
120
40
59
37
24
57
86
Total for February
1,573
36
32
218*
54
37
25
1.295
122
40
106
37*
24
91
86
2,203
Permits
$91,500
27.685
718.900
106,663
74.825
122.900
6,799,960
209,605
120.255
723.349
115,712
25.580
545.748
194,730
34
63
224
48
33
32
1,242
148
37
45
66
33
47
29
$9,877,412
Operations Estimated cost
Estimated cost Permits
Estimated cost
15
53
93
391
95
' 66
53
1,515
248
80
108
79
37
123
118
$199,225
168,985
1,863,464
658.461
226,750
361,525
13,304,060
555,530
308,210
807,532
216.645
44.685
695,034
234,450
54
94
460
120
52
55
2,218
233
53
95
96
43
87
44
$218,000
117,099
1,342,089
633,865
598.075
155.500
9,792,755
363,201
177,355
163,780
341.760
60,760
1.150,387
39,235
$8,275,338 , 3,059
2.081
...........
Do not report operations,
Permits
$19,644,556
3,704
$15,153,861
$151,100
80,737
439,262
294,855
165,450
80.800
5,381.435
221,551
116,430
67.920
247,898
47,550
951,770
28.580
Mills continue to operate at capacity in the majority
of cases, but weather conditions have tended to curtail
production somewhat. Stocks vary considerably. In
most instances mills and wholesalers have very light
supplies, and some grades are almost unobtainable.
Retailers in general have laid in rather heavy stocks in
preparation for the spring demand, but in certain cases
they have made such heavy sales that stocks are light.
Steadily mounting prices for nearly all grades of
lumber have caused some dealers to fear that the mar
ket was entering a run-a-way stage, and strenuous
efforts have been made to hold quotations in check.
Certain grades are considerably out of line, some
rather low-grade woods bringing nearly as high prices
as those of better quality.
Transportation conditions show little improvement
since last month. Indeed because of recent storms it
has been even more difficult than before to ship to New
England and northern New York. Incoming freight
from Canadian points is tied up because of the difficulty
of obtaining cars in Canada to move across the border.
There is no serious labor shortage in lumber mills in
this district, and in most- instances wages are un
changed. But a survey of wages by the Southern Pine
Association shows that on January 1, 1923, average
wages were 4.9 per cent above those of last January,
and that the wages of common labor were 6.4 per cent
higher.
Several reports have been made of slower collections
during the past month, but collections are said to be
better than they were a year ago, and in general are
from fair to good.
Window glass has been in good request during the
past month, and owing to unusual circumstances the
demand for plate glass has been exceptional.
Glass
The growing popularity of closed automo
biles has brought the automobile trade into
the market for large amounts during the past year, and
it is expected that during 1923 it will take about onehalf of the entire output. Certain automobile manufac
turers have purchased plate glass factories, and this ac
tion has taken a considerable amount of glass from the
general market. This, together with the heavy de
mand from builders and furniture manufacturers, has
brought about a shortage. As a result, prices have
soared, and at present there are really no market quo
tations. Large importations of Belgian glass have been
made, but they have not been sufficient to satisfy the
demand. Common window glass, on the other hand,
has remained unchanged in price since last fall, and sup
plies are sufficient to meet present requirements. Sales
of window glass, as a rule, come at a time when build
ing operations are nearing completion, and although the
present season is normally a slack one, this year, owing
to the continued building, they are heavier than usual.
In general, operations are at capacity, but stocks are
light and are decreasing. The labor supply is adequate
in this district, but there is some shortage in certain
plants in the Pittsburgh region, where glass factories
compete in the labor market with steel mills. Embar
goes to northern points have caused difficulties as they
have in other industries, but otherwise transportation
is adequate. Collections are good.
Paint manufacturers report a steady increase in de
mand. In several instances sales during January and
February were the largest for those months
Paint
in several years, and orders have continued
to come in during March. After the in
crease in prices that took place in ready-mixed
paints in January and February, dealers were given an
opportunity to place one order at the former prices,
and since that time many additional orders have been
placed at the new quotations. Not only are retailers
stocking up for the spring trade, but industrial users
are continuing to buy heavily. Stocks of raw materials
vary from normal to heavy, and all raw materials ex
cept linseed oil and lead are easy to obtain. Linseed oil
is being shipped to the western states, which is an un
usual procedure, and this is one reason for its scarcity
here and for the advancing prices. The supply of pig
lead is inadequate to meet the demand, and prices of
this product are also mounting. The ratio chart printed
below shows quotations on linseed oil and pig lead since
1919. It will be noted that lead is now nearly twice as
high as it was at this time last year, and is nearly up to
the peak reached in 1920. Linseed oil, though still
considerably below the high quotations of 1919, has
been steadily rising since January, 1922.
The majority of the plants in this district are operat
ing at capacity, and some factories making white-lead
are running night and day. The labor supply is in
general adequate, and no wage increases are reported.
Some difficulty has been caused by the embargoes to
The upward m ovem ent in the prices of linseed oil and lead reflects
the increased activity of paint manufacturers.
Sources— “ Dun’s Review” and "Iron Age.”
16
New England, and in certain instances orders in that
district have been cancelled because of the impossibility
of making delivery.
Collections are improving, both over those o f last
month and over those of a year ago, and may be classed
as good.
Gas and electric fixtures have been in good demand
during the past month, and although the majority of
orders have been for immediate re'J<*s .a ]r f lec“ quirements, some sales have been made
T
trie fixtures £
. r
n
-a
for delivery in the spring. Consider
able improvement in demand is noticed as compared
with the same period last year, and manufacturers are
optimistic regarding the coming season. Stocks of raw
materials are about normal, and no difficulty is encoun
tered in obtaining them. Quotations on these, how
ever, are rising steadily, especially on copper and cop
per products. Finished stocks in general are normal,
and an attempt is being made to increase them for
spring business. Hence, operations are at as high a
percentage of capacity as the labor supply will permit,
and they average approximately 80 per cent.
Prices have not changed during recent weeks, in
spite o f the rising cost of raw materials. The general
trend, however, is upward. The transportation situa
tion has presented no great difficulty, although a few
customers complain of slow deliveries. Collections are
rather slow and during recent months have not changed.
COAL
No slackening has been noticed in the demand for
prepared sizes of anthracite during the past month, but
it is said that retailers are ordering for
Anthracite
shorter periods, as sales to domestic
users from now on will depend to a
great extent upon the weather. Steam sizes too have
been moving well, although lower prices for compet
ing bituminous coal and slightly less difficulty in ob
taining domestic sizes of anthracite for household use
have reduced sales somewhat. Only in a few cases,
however, have operators commenced to store steam
sizes, and in general those sizes have been moved as
rapidly as they came from the mines.
Production has been maintained at about 2,000,000
tons a week, except in the week ending February 24,
when, because of Washington’s Birthday, output fell
to 1,828,000 tons. Estimated production for the past
four weeks, together with output for the correspond
ing weeks of 1922, is shown below.
1923
Feb. 17........1,828,000
Feb. 24..‘. ..1,838,000
March 3..2,104,000
March 10. .2,048,000
nettons
“ “
“ “
“ “
1922
Feb. 16.......... 1,703,000 net tons
Feb. 23.......... 1,701,000 “
“
M arch-2 ... 1,913,000 “
“
March 9. . . 1,982,000 “
“
The majority of mines are operating at capacity, and
as usual lack of cars has had practically no effect upon
production. Scarcity of labor in some parts of the
Schuylkill region and a few local strikes have curtailed
output there to some extent, but the effect of these two
factors has not been great, as is shown by the produc
tion figures.
Prices for prepared sizes have been unchanged since
last month, and although in general the same is true of
steam sizes, one or two independents have reduced quo
tations somewhat on rice and barley.
The bituminous market has continued to decrease in
activity during the past month, and buyers are taking
only immediate requirements. AlBituminous though some contracts are being made,
purchasers as a rule prefer to wait
until after April 1, at which time they expect condi
tions to be more stabilized. Industries in general are
the most active buyers, and those located in New Eng
land especially are in the market. Embargoes that are
in operation in that section, however, prevent deliveries,
and this has of course tended to lessen sales. Recently
many inquiries have been received from France and
other European countries regarding coal for export,
and some shipments have been made. But these sales
have not been large in this district. The accompany
ing ratio chart shows the monthly exports of bitumi
nous coal and coke since 1919. It will be noted that
exports of coal have increased steadily since August
of last year, and a continued improvement is expected,
owing to the situation in the Ruhr.
Mines in this district continue to operate at only a
fraction of capacity, varying from 15 to 60 per cent.
As has been the case during recent months, the cause
of curtailed production is lack of transportation. In
spite of this difficulty, output for the country as a whole
averages between ten and eleven million tons weekly.
in shipments to France.
Source— Department of Commerce
Production for the past four weeks, as estimated by the
United States Geological Survey, was as follow s:
February 17 .................................................... 10,431,000
February 24 .................................................... 10,324,000
March 3 ......................................................... 10,946,000
March 10 ......................................................... 10,609,000
net tons
“
“
“
“
“
“
There is a sufficient supply of miners for the pr isent
rate of operations, but in some instances it is reported
that if demand and car supply were sufficient to permit
maximum operations, there would be a shortage. Be
cause of the light demand, spot prices have continued
to soften and they now average from 50 cents to $1
below those of a month ago. Pool 10 coal on March
12 was quoted at $3.20, as compared with $3.70 on
February 19. Low-grade steam coals have been espe
cially weak. Declining prices have caused certain
mines to stop operations, but total production has not
been affected perceptibly.
Coke sales have held up during the past month, and
although sales for household purposes are now prac
tically nil, the activity of the iron and steel
Coke
industry has been responsible for substantial
orders. Several inquiries for furnace coke
have been received from France, and because of the
situation in the Ruhr, dealers are looking forward to
considerable export business. The chart on page 17
shows exports of coke since 1919. Especially notice
able is the increase since last August. Although not a
little coke has been imported into this country since that
month, the greater part of it was ordered before the end
o f the bituminous miners’ strike.
Estimates of the production o f beehive coke for the
last four weeks for which figures are available are given
below.
February 17 ......................................................... 378,000
February 24 ......................................................... 371,000
March 3 ............................................................ 402,000
March 10 ............................................................ 366,000
net tons
“
“
“
“
“
“
Production of crude oil in the country as a whole has
been at a high rate. The American Petroleum Insti
tute estimates daily average production at 1,795,400
barrels for the week ending March 3, as compared with
1,784,700 for the previous week, and 1,420,050 for the
week ending March 4, 1922. Practically all of this
increased production, however, has been in the Califor
nia district. Output in the Appalachian field is about
10 per cent above that of a year ago and is varying but
little from month to month. It is estimated that pro
ducers’ stocks of Appalachian crude oil are about 25
per cent above those of last year, but taking into con
sideration the increased consumption, the stocks on hand
in terms of days’ supply, are about the same. Some
California crude oil has been brought to this district by
tankers, and although it is attractive in price, its yield
in lubricating oil is low, and in some cases nil. A l
though the present rate of crude oil production is run
ning ahead of consumption, the quality of the oil for
refining purposes is lower than in past years, and stocks
of refinable oil are really not so large as the figures
would indicate. Because of this and of the recent com
paratively heavy demand for this season, quotations
have continued to advance. Pennsylvania crude is now
quoted at $4 a barrel, as against $3.65 a month ago and
$3.00 in March, 1922, and mid-Continent and western
crudes, with the exception of California, have also ad
vanced. Quotations on refined products are also
advancing, following the increase in crude petroleum.
The accompanying chart shows the price range of
Pennsylvania crude oil since 1919. It will be noted
that present quotations are the same as those main
tained through the greater part of 1919, but are con
siderable below the high point of $6.10 reached in
1920.
Prices were steady from the middle of February
until the second week in March, at which time furnace
coke advanced from $7 to $7.50, partly because of the
foreign inquiries. Foundry coke is quoted at $8.50,
Connellsville, and is firm at that price.
PETROLEUM
The demand for kerosene and gasoline changed but
little during the past month, showing a slight tendency,
perhaps, to increase. Sales of fuel oil, however, have
been affected by lower prices for bituminous coal, and
as compared with those of January, have fallen off con
siderably. Industrial users have taken large quantities
o f lubricating oils and sales of these are about double
what they were a year ago. In fact, the demand for all
refined products, except wax, showed a large increase
over that o f last year.
18
COTTON
O f great significance to the cotton trade are the heavy
domestic consumption and the rapidity with which
stocks are decreasing. Not only was the
Raw
February consumption the largest ever re
cotton
ported in that month, but the number of
active spindles also reached a new high figure. In
comparison with the figures for 1922. the increase in
cotton consumed by mills in this country from this sea
son s crop more than counterbalances the decrease in
exports. The trend o f domestic consumption during
the last six years is shown by the chart of cotton, wool,
and silk consumption on page 21. Although the sup
plies held by consuming establishments at the end of
February were almost half a million bales larger than
they were a year before, stocks in storage and at com
presses were over 677,000 bales smaller.
The strong demand and the growing scarcity caused
spot cotton to reach a new high price for this season, of
31.25 cents a pound. As illustrated by the chart below,
quotations advanced much more rapidly on the old crop
than on the new, so that the margin between May and
October contracts grew from 2.03 cents on January 2
to 4.50 cents on March 2. From now on, prices, par
ticularly those on this season’s crop, will be more and
more influenced by southern weather reports.
A M E R IC A N CO TTO N
Although the total consum ption of American cotton reached its high
point in 1911, domestic consum ption continued to increase until
1916. Largely because of the decrease in exports, total con
sum ption has decreased since 1911. From 1870 to 1899,
the trend of prices was downward, but after 1900 it rose
until it reached its highest point— 43.75 cents
a pound— in 1920.
Sources— Department of Commerce, ‘ ‘Journal of Commerce” and ‘ ‘ Cotton
Facts.”
This chart is a complement to a similar one showing
prices and production for a century, which was pub
lished last month.
The history of the 1922-1923 crop to date is- shown
by the following table :
Supply and takings of American cotton*
In bales
Season of
1922-1923
Season of
1921-1922
Season of
1920-1921
Visible supply, American, at end
of previous season (July 31) 1.968,159 4,112,651 2,943,882
Crop in sight, American, to
March 23 ............................... 9,945,562 8,581,832 8,514,821
Total ................................... 11,913,721 12,694,483 11,458,703
Visible supply, American, on
March 23 ............................. 2,470,438 3,728,100 4,537,554
W orld’s takings of American
cotton to March 23..............
9,443,283 8,966,383 6,921,149
* Compiled by New York Cotton Exchange.
Source— “Journal of Commerce.”
As shown by the following chart of the price and
consumption of cotton for the last fifty-two years, the
deliveries to American mills have steadily increased.
Exports likewise gained at a fairly regular rate, until
the peak was peached in 1911; but since that date, ex
ports from this country have tended to decline. This
decline was accelerated by the world war and the high
prices. It will be noticed that in the four years pre
ceding the war, exports were the largest on record.
Cotton goods, in general, have been more active dur
ing the period covered by this report than in the month
preceding. Staple cotton goods, though
C orron
somewhat duller than they were last
® °° s
month, are still in excellent demand, and
orders are being booked for distant deliveries. For
some merchandise, such as flannels, orders have been
taken for shipment in September, but owing to their
fear of cancellations, manufacturers generally are un
willing to accept orders for delivery later than July..
Tapes and narrow fabrics have been selling actively, and
the call for mohair plush and heavy draperies has been
good. Tapestries, however, have only been in moderate
demand, and the volume of orders for towels has been
small.
Except in the case of towels and tapestries,
orders have reached a much larger total than they had
at this time last year.
The stimulation caused by the continued advance of
raw cotton raised the price of cloths, especially of the
heavy fabrics. As was to be expected, however, heavy
cotton goods advanced less rapidly than raw cotton. As
may be seen from the table below, the margin between
the cost of the raw cotton and the price per pound of
brown sheeting was decidedly reduced between January
3 and March 17.
have pegged their prices so high that dealers feel they
cannot handle it at the figures asked, for manufacturers
are offering strong resistance to further advances. As
a result, the contracting done in the west has been
small.
The chart printed below gives the relative im
portance of the commercially important sources of wool.
In 1921 and 1922, production in Europe and in Africa
was slightly greater than the pre-war average, but in
Australia and South and North America it decreased
decidedly on account of heavy killings.
WOOL PRODUCTION
Prices of cotton, raw and in cloth*
i mmmm
■ ■ Austro!jo
Jan. 2, Jan. 2, Jan. 3, Mar. 17 Mar. 23
1914
1920
1923
1923
1923
V //////////////A - E3 N olsw
eu& :'
FU R O R E
■ i United Kingdom
t//A Remainder
Spot cotton ........................ 12.50c. 39.25c. 26.45c. 31.30c. 30.20c.
SOUTH AMERICA
27" print cloth, 64 x 60, 7.60
yards
3.75 14.50
8.25
Price per yard..............
Price per pound........... 26.25 101.50 57.75
Margin over spot cotton 13.75 62.25 31.30
36" brown sheeting, 56 x 60,
4 yards
Price per yard..............
Price per pound...........
Margin over spot cotton
per pound ................
■Bi Argentina
EZ3 Remainder
8.25 8.75
62.70 61.25
31.40 31.05
V /A
AFRICA
■H
6.25 25.00
25.00 100.00
12.75
51.00
13.75
55.00
13.75
55.00
12.50 60.75
24.55
23.70
24.80
300
Stocks of finished goods are light, and supplies of
raw cotton held by manufacturers are moderate.
Collections are very good, and a fair proportion of
bills are being discounted when the invoices are re
ceived. Payments are much more prompt than they
were a year ago.
WOOL
The trend o f prices rather than the state of the de
mand has been the chief interest in the wool trade during the month just past, for mills are well
K<wo l
suPP^ed and therefore the demand has re
mained quiet. At sales in London, Brisbane,
and Melbourne during the early part of March, wool
values showed a tendency to weaken; but when the
Sydney sales opened later in the month, prices strength
ened again. However, the uncertain situation in for
eign markets did not shake the determination of our
western growers to sell their clip at prices higher than
the levels prevailing at Philadelphia and Boston. Firm
in their belief that wool is in a strong statistical posi
tion, growers of Territory wool, in many instances,
400
M IL L IO N S
500
OF
British South Africa
USA
Remainder
600
700
800
PO UN DS
In comparison with the pre-war average, the wool clip of Europe and
South Africa has increased. The heavy killing of sheep in Australia
and in South and North America has greatly decreased the
production in these sources. The total yield from these
five sources, which furnish a large part of the world’s
supply, was 2,270,737,000 pounds in 1922, as com
pared with 2,354,735,000 pounds in 1921 and
2,545,565,000 pounds for the average of
1909-1913.
* New York Journal o f Commerce.
NORTH AM ERICA
U n ited Sta te s
R em ainder
Source— Department of Commerce
The second chart shows that in common with silk and
cotton, the quantity of wool entering into manufacture
has increased at a fairly steady rate since the begin
ning of 1921. The 1922 consumption of the 616 mills
that report their figures to the Department of Com
merce totalled 654,126 pounds, and since several large
establishments did not report, it has been estimated that
the consumption of all American mills was over
800,000 pounds. By referring to the chart on wool
production, it will be seen that last year this country
used 2.5 times as much wool as it produced.
It is small wonder, then, that stocks of domestic wool
in the hands of dealers were almost entirely exhausted
before January 1. As a result of the lack of domestic
wools, importations have been heavy and dealers’
stocks are moderate.
Like other wools, carpet wools have been in less
request because large mills have covered their require
ments for the time being.
20
T E X T IL E
The excellent demand for spring fabrics for both
men’s wear and dress goods has kept mills busy in the
attempt to ship these goods before
oo en and
Easter. So far this has been diswors e goo s tjnctjy a worsted year, but the de
mand for fall lines, though fairly good, is not as strong
as might have been hoped for after the remarkably good
worsted business this spring. Some manufacturers of
worsteds have noticed that the cheaper qualities are sell
ing more readily than the finer. Like last season, pile
fabrics are in vogue for coatings and cloakings, and the
demand for them is very strong.
Chief among the difficulties at the present time is the
growing scarcity of skilled men for weaving, and of
women for mending. In many mills, a considerable
number of looms are idle on account of the lack of help,
and this difficulty does not seem likely to decrease, for
looms must now be put on heavy weight goods. The
percentages of operations reported to us average 91.
The majority of mills have advanced the wages of
skilled help, the average increase being 10 per cent, and
many have raised wages of unskilled labor from 5 to 10
per cent.
Stocks of finished goods are only moderately light,
but they are decreasing. In active periods like the
present, the quantity of goods in process tends to in
crease. Supplies of raw materials are moderate, and
mills seem to have only partially covered their require
ments. These stocks are naturally decreasing. Prices
tend to advance slightly, and in some cases quotations
are higher than they were a month ago.
Collections are fairly good, and are more prompt
than they were either last month or at this time in 1922.
C O N S U M P TIO N
MILLIONS
POUNDS
500
400
300
,r
Row Cotton
V
•
•\ .......A > V * —
200
#
’
V
1OO
Raw Wool
!
50
40
30
\- /
V
20
I
V —.
V
i
10
!
1
WW v
f
Raw Silk
5
4
3
Z T v '’
J ------ 7
i
2
11
97
11
98
V
\ ,\ .<
V ;
............... ............ 1
............... 11
99
1920
12
91
12
92
12
93
The consum ption of raw cotton, wool, and silk shows the fluctuations
in textile activity. Down to July, 1920, the silk line represents
average imports for each fiscal year. After July, 1920,
it represents deliveries to m ills.
Sources—Department of Commerce and Silk Association o f America.
The demand for worsted yarns is good, and that for
woolen and merino yarns may be termed fair. How
ever, the demand for worsted yarns has be
Wool
come more quiet than it was early in Febru
yarns
ary, because mills manufacturing men's wear
have already covered their initial requirements. But
the demand from weavers has been so good during the
past few months that some spinners have orders for as
long as seven months ahead. From 50 to 100 per cent
of the orders booked are for future delivery. Manu
facturers of sweaters were also heavy buyers of yarns
during much of the winter, but the demand from this
source is now quiet. The hosiery trade likewise is
buying comparatively little.
Although the general trend of yarn prices is still
upward, quotations have changed but little during the
month. It is reported that mill prices have tended to
become more uniform, but it is also said that a few
spinners whose production was not fully sold have
offered slight concessions in order to attract business.
The orders on the books are sufficient to raise the
average production to almost 100 per cent of capacity.
The most serious difficulty at present is the inability to
make freight shipments to inland points in New Eng
land. Our reports are equally divided as regards the
scarcity of skilled labor. The supply of unskilled help
is adequate. Many mills have increased the wages of
skilled employees, the advances averaging 10 per cent.
Stocks of y^rns continue to be light, but supplies
of raw wool are moderately heavy and in the majority
of plants are decreasing. Collections are good and are
more prompt than they were either last month or at
this time a year ago.
SILK
The improvement felt in the silk industry in the past
few months has continued during March. The demand
is much better than it was a year ago, and
1
,
may now be said to be from fair to good.
®
Both canton crepes and fancy printed fabrics,
for which crepe-de-chine and georgette are used as
grounds, are in excellent request. In fact, the demand
for print goods has been so strong that printers cannot
turn them out as rapidly as desired. Although skeindyed goods are still in much less demand than crepes,
taffetas are selling vsomewhat more readily. Ribbons,
too, have been affected by the stimulation in buying, and
after two years of extreme dulness, their use for sashes
and millinery has caused orders for fancy ribbons to in
crease. Although some mills have not booked any
future business, many report that from 60 to 70 per
cent of their orders are for delivery in the future. How
ever, customers have to some extent held back future
orders, in the hope that the raw silk market might be
come lower.
In the majority of plants finished stocks are diminish-
21
ing, and those goods that are in the best demand are
moving very rapidly. Stocks of finished goods are
moderate, and those of raw materials range from
moderate to light. Some mills are increasing the quan
tity of raw silk on hand, but most of them are letting
their stocks diminish on account of the high level of
present prices.
During the past month, quotations on broad silks
have increased, but not in proportion to the advances
on raw silk. Manufacturers are anxious not to raise
the prices on their products as long as they have sup
plies of raw material bought at prices lower than the ex
isting level. They feel that if raw silk prices would
remain stable, this year’s volume of business would be
very good.
With the exception of ribbon looms, of which less
than half are in operation, silk looms are running at
about 75 per cent of capacity. Operations are curtailed
in many sections by the scarcity of skilled labor, but
except in a few instances unskilled help is reported to be
sufficient. Wages of the former have been raised, the
advance in most cases being 10 per cent; and a few
mills have also increased the wages of unskilled help.
Collections are fairly good and are becoming more
prompt. They are much better than they were a year
ago.
After February 15, orders for thrown silk increased
decidedly, and the volume of business booked was en
couraging. During this period, both weavThrown ers ancj patters placed orders, but after
Sl
quotations on raw silk rose early in March,
the demand for thrown silk became quiet. In com
parison with last year, the current demand is much
stronger. Silk yarns and fancy twists are in great de
mand for shipment as soon as possible. On these prod
ucts quotations tend to advance, and stocks are light.
Production schedules o f throwsters are still low, and
the keen competition has tended to force throwing prices
downward. But prices of thrown silk have advanced
on account of increases in raw silk.
Since freight routings are delayed, mills are now
shipping almost exclusively by express at an additional
expense. Collections are satisfactory.
Early in March raw silk prices advanced sharply and
have since remained steady in spite of a very quiet mar
ket. Although mills are refraining from buy
Raw
ing at the present high levels, the consumption
silk of silk in February was heavy. How February
deliveries compare with those of other months is shown
by the following table. On March 1, stocks on hand in
American warehouses were about 2,500 bales less than
on February 1. In Yokohama, stocks are reported to
be very low.
The chart on page 21 shows that the imports of silk
into this country, which are a safe indicator of con
sumption have increased steadily since January, 1921.
The consumption of raw materials reflects the present
activity in all three textile lines.
Silk imports, stocks and deliveries to American mills*
Imports
during
month
Deliveries
to American
mills
Storage
at end
of month
Bales
1923
February .............................
January ................................
Bales
Bales
33,750
32,593
36,231
34,680
44,615
47,087
1922
December .............................
November ...........................
October ...............................
February .............................
January ................................
33,057
36,733
. 46,569
19,950
40,177
31,042
35,467
37,471
22,107
33,842
49,174
47,159
45,893
28,982
31.139
1921
February .............................
January ................................
12,794
9,499
16,725
22,176
27,928
31,859
1920
February .............................
January ................................
27,076
14,405
30,071
24,000
65,026
68,021
* Silk Association of America.
Although our use of Chinese silk has increased but
little during the last seventeen years, our imports of
Japanese silk have increased about 300 per cent. The
comparative importance of these two sources of silk is
indicated by the accompanying chart.
SILK
Exports from Japan
_ _ _ Exports from China
Clttn W o rld 's production
1905 1906 1907 1906 1909 1910 1911 1912 1913 1914 1915 1916 1917 1913 1919 1920 1921
The world’s production of raw silk continued to grow steadily until it
reached the total of 60 m illion pounds in 1913, but since that time
it has attained this level only during years of peak production.
Japan first surpassed China as an exporter of silk in 1909,
and since that tim e has rapidly forged ahead. Exports
are for calendar year and production for period
from July 1 to June 30.
Sources— “ Boston Evening Transcript,” Silk Association of America
HOSIERY
Conditions in the hosiery trade are somewhat out of
line with the general business situation, the improve
ment during the past months having been much less
rapid than in other industries. Some mills are working
22
at capacity, but others are only running at from 30 to 50
per cent of capacity. Prices, too, are unsatisfactory,
most of our reports showing that in the face of heavy
advances in the prices of raw materials, quotations for
hosiery have for the most part remained stationary. A
few manufacturers have made slight advances on cer
tain special numbers, but some have actually reduced
prices. Labor, both skilled and unskilled, is reported
to be in meagre supply, and wages have been advanced
in a number of cases.
The demand for silk hosiery, both full-fashioned and
seamless, is in nearly all instances for prompt shipment,
and comparatively few orders specify delivery beyond
sixty days. Chiffon hosiery is one of the most popular
of silk lines, and the few mills which are able to pro
duce this are well supplied with orders. Some further
business in wool mixtures for shipment in July, August,
and September has been taken, but these orders are
somewhat fewer than those booked in the previous
month. Prices of all yarns, with the exception of mer
cerized cotton yarn, have advanced considerably during
the month. Collections are reported by many to be
good, but some firms find them slower than they were
last month.
Reports received from manufacturers in the Third
Federal Reserve District, tabulated below, show that
during February production by firms selling to the
wholesale trade decreased 17.3 per cent, and that that
of firms selling to the retail trade increased 3.5 per cent,
as compared with February, 1922. As compared with
During March, sales by underwear manufacturers
have been rather small. The bulk of the spring busi
ness had been placed previously, and although dupli
cate orders are numerous, they are for the most part
small, and the total of new business is only fair. Mills
in some cases are reported to be late in making deliv
eries, and jobbers and retailers who were attempting to
operate with light stocks have found themselves short
of certain lines. Some mills report the receipt of addi
tional orders for fall, and some have booked all they
wish to contract for. Others find that buyers are hesi
tating to pay the advance in price which they ask.
Prices of raw materials continue their upward course,
and higher quotations on the manufactured product, al
though not universal, are fairly general. The labor
situation is unchanged. In some localities a sufficient
supply is reported, but in others a shortage exists and
higher wages are being paid.
Collections are in most cases said to be satisfactory.
Some manufacturers, however, report an increasingslowness in payments.
Returns from manufacturers in the Third Federal
Conditions in the hosiery industry
Conditions in the underwear industry
In terms of dozens o f pairs
January, 1923, the production of firms selling to the
wholesale trade increased only .1 per cent and that of
firms selling to the retail trade decreased 37.7 per cent.
The difference of three days in the length of the two
months was probably partly responsible for this latter
large decline.
UNDERWEAR
[February, 1923, February, 1923,
compared with compared with
I January, 1923 February, 1922
In terms of dozens
Firms selling to the wholesale
trade:
Summer underwear:
Number of reporting firms— 14
Number o f reporting firms— 33
Product manufactured during
February .....................................
Finished product on hand Feb
ruary 2 8 ......................................
Orders booked during February. .
Cancellations received during
February .....................................
Shipments during February.........
Unfilled orders on hand Febru
ary 2 8 ..........................................
+
.1%
Product manufactured during
February .................................... i
Finished product on hand Feb
ruary 2 8 .................... .................
Orders booked during February..
Cancellations received during
February ....................................
Shipments during February.........
Unfilled orders on hand Febru
ary 2 8 .................... , ....................
v
— 17.3%
+ 3.0 “
— 13.3 “
+ 35.1 “
+103.0“
+20.4 “
+ 6.3 “
—
— 3.1 “
+ 26.0 “
+
64.1 “
2.8 “
—38.3%
—29.0 “
—34.7 “
+ 2 6 .4“
+90.6 “
— 6.7“
’ —5.5“'
—12.0 “
+17.2 “
+55.8%
+38.6%
+63.6 “
—51.4“
+54.9 “
—29.0 “
+13. i “
+ 11.2 “
+ 4.3 “
+91.0 “
Number o f reporting firms— 9
Number o f reporting firms— 12
8.6 %
—
Winter underwear:
Firms selling to the retail trade:
Product manufactured during
February .....................................
Finished product on hand Feb
ruary 2 8 ......................................
Orders booked during February. .
Cancellations received during
February .....................................
Shipments during February.........
Unfilled orders on hand Febru
ary 28 ..........................................
February, 1923, February, 1923,
l compared with j compared with
i January, 1923 [February, 1922
Product manufactured during
February.................. .................
Finished product on hand Feb
ruary 2 8 ......................................
Orders booked during February..
Cancellations received during
February ....................................
Shipments during February.........
Unfilled orders on hand Febru
ary 2 8 ..........................................
3.5%
—37.7%
+
+ 4 1 .5 “
+ 14.8 “
—
+ 5.8“
+27.8 “
+ 8.7“
+ 28.5 “
+ 6 1 .0 “
+ 33.8 “
9.5“
+ 15.5 “
23
size of their Easter business, for sales at retail during
the first half of March were not large. Prices of shoes
have changed only slightly. A few manufacturers,
especially of cheaper lines, have made some advances,
largely because of the advance in the price of offal,
sheep skins, and cotton goods; but most makers are
willing to take orders at former prices. Much stress
is being laid upon the economic aspect of the novelty
shoe business by many manufacturers, wholesalers,
trade journals, and even the daily papers. They all
point out that the increased cost of making novelties
necessarily raises the price to the consumer. H ow
ever, no change in this branch of the trade has taken
place and styles are fully as numerous as they have
been at any time in the past. White leathers and suede
in grey and sand color are among the leading leathers
in high grade shoes for late spring. In lower priced
lines patent leather is still very popular. In shoes of
all grades a great number of color combinations are
being made and sold.
The Department of Commerce reports that the pro
duction of shoes during January was 29,994,248 pairs.
This total was exceeded last year only in October,
when 31,093,296 pairs were made, and in December,
when the figure was 30,608,948. In January, 1922,
the production was 25,119,911 pairs, so that this year
January shows a gain of 4,874,337 pairs, or nearly 20
per cent.
In the Third Federal Reserve District the produc
tion of shoes by reporting firms decreased 3.7 per cent
in February, as compared with January, and increased
10 per cent as compared with February, 1922.
Reserve District tabulated on page 23 show that produc
tion of summer underwear during February decreased
38.3 per cent and that that of winter underwear in
creased 38.6 per cent, as compared with February, 1922.
Orders on hand at the end o f February were 17.2 per
cent greater in the case of summer goods, and 91 per
cent greater in the case of winter goods, than at the
same time a year previous.
FLOOR COVERINGS
The demand for carpets and rugs shows no signs of
slackening but continues heavy, and many of the manu
facturers will have a considerable number o f unfilled
orders on their books at the end o f the season in April.
These orders, at the option o f the buyer, will then be
either replaced at the new season’s prices or cancelled.
The supply o f wool Wiltons, which has been short
since the strike of two years ago, appears to be better
than it was and more nearly equal to the demand.
Worsted Wiltons, however, remain somewhat scarce.
Axminsters promise to be in larger supply, as some
mills, both in this district and elsewhere, have increased
the number of their looms. Prices of raw materials are
higher, and worsted yarn is reported to be in short
supply. The largest producer has announced that he
will offer his new lines for the fall o f 1923 on April 2.
A number o f other large houses also have fixed that
date for their openings, and one manufacturer has al
ready named his prices, very few of which remain un
changed. The advances made vary from 2 to 8 per
cent. Further increase in the demand for linoleum,
despite higher quotations, has featured the trade during
the past month, and both production and orders are at
the highest point on record for this season o f the year.
Freight embargoes still hamper deliveries to some
northern and eastern points, but as the season advances
and better weather arrives the movement o f freight is
expected to improve.
Collections are reported to be good by nearly all man
ufacturers o f floor coverings.
Conditions in the boot and shoe industry
(In terms of pairs)
Number of reporting firms— 38
Production ...................................... ..
Shipments ........................................ . •
Orders b ook ed ................................. .
Orders on hand ............................. ..
Cancellations ..................................., .
Stocks ............................................. .
Number o f operatives on payroll.., .
LEATHER
In a number of shoe factories in this district most
of the orders booked previous to March were for de
livery before April 1. As work on
Shoes
these progressed steadily, and as in
some cases the new business booked
during March has not been sufficient to keep the cut
ting rooms busy, the factories as a whole have not been
running on as full a schedule as they did in January
and February. However, the number of shoes to be
finished in March will in most cases be limited only by
the productive capacity of the fitting rooms. Sales
men on the road have been sending in orders for April
and May shipment in fair volume, but some retailers
are postponing buying until they get some idea of the
February, 1923, February, 1923,
compared with compared with
January, 1923 February, 1922
3.7%
+ 18.5 “
— 45.9 “
— 8.8“
— 61.5 “
— 1.7“
+ 1.4“
—
-f
+
—
+
10.0%
13.1 “
26.2 “
52.3 “
— 20.7 “
+ 7.0“
Wholesale shoe houses report that their March bill
ings are much larger than were those of 1922. But
they are experiencing considerable difficulty in obtain
ing deliveries, because of late shipment by factories and
slow railroad movement, especially from New Eng
land points. Therefore, some of their outgoing ship
ments are delayed. From the table printed on page
10 it will be seen that sales at wholesale in February
increased 3.9 per cent, as compared with those of Jan
uary, and 36.7 per cent as compared with those of
February, 1922.
24
Sales of shoes at retail during the first half of March
were small, except on the few clear and warm days;
but since the middle o f the month they have increased
and as the week before Easter is always a time of
large sales, they will probably exceed those of March,
1922, by a considerable amount. During February, as
shown in the following table, sales decreased 19.2 per
cent as compared with January and increased 1.2 per
cent as compared with February, 1922.
Retail shoe trade
creased production, stocks in most lines are still de
creasing.
Stocks
Production
+12.2
— 4.2
Belting butts ................................
Offal, so le and b e lt in g ....................
— 2.7
Cattle side, upper........................
+ 14.4
Calf and kip..................................
+ 5.0
Goat and kid.................................
{ * + 6.6
Cabretta .......................................
}
— 1.0
+2.1
—4.2
— .5
+1.8
—2.2
— 1.6
* Production figure not separated.
(In terms of dollars)
1.
Net
(a)
(b)
(c)
2.
Stocks (selling price):
(a) Feb., 1923, as compared with Jan., 1923.......
(b) Feb., 1923, as compared with Feb., 1922.......
3.
sales:
Feb., 1923, as compared with Jan., 1923.... — 19.2%
Feb., 1923, as compared with Feb., 1922___ -f- 1.2“
Jan. 1 to Feb. 28, 1923, as compared with
Jan. 1 to Feb. 28, 1922................................ + 5.8“
Rate of turnover (i. eM times per year based,
on cumulative period):
(a) January 1 to February 28, 1923 ....................
(b) January 1 to February 28, 1922....................
Number of stores reporting above items :
1................ 30
2a and 3a................. 27
2b and 3b................ 26
+ 8.5%
— 10.8“
2.6
2.2
Heavy leathers have been active, and sales are in
good volume. Shoulders and bellies have been in
especial demand in the domestic markets,
Leather
and a better export business in offal is
also reported. Prices, too, are higher.
Butts are in continued request, and the price is firm at
75 cents for best quality. Finding-leathers, however,
are dull, as repair work on shoes has fallen off.
During March the call for upper leathers has cen
tered so largely on specialties that black and brown calf
and black kid have been in decreasing demand. Shoe
manufacturers have been buying these only from hand
to mouth, for until further reports are received from
their salesmen on the road, it is impossible to form any
idea of the quantity of each kind of leather that will
be needed.
Patent leather in the higher grades is said to be less
active, but a strong demand exists for the medium and
lower grades. Sheep leathers are in good demand,
and prices have been advanced from 2 to 5 cents per
foot. This has considerably affected the cost of in
fants’ shoes o f the cheaper grades.
The following table shows the percentages of in
crease or decrease in the production and stocks of the
principal leathers in January as reported by the De
partment of Commerce. In the face of generally in
Leather belting sales continue to be excellent, and
although not all presses are in operation, most plants
are running as many as they can in view of the short
age of labor. Prices for belting are fairly well main
tained, although some price cutting is still reported.
Freight movement to and from New England con
tinues to be slow and is still hampering business.
The demand for traveling bags, suit cases, and small
leather goods, such as toilet cases, pocket-books, etc.,
has increased considerably, and plants
Leather
manufacturing these are running at
goods
about capacity. Prices as a rule are
about 10 per cent higher than at this time a year ago.
Raw materials also have advanced, and skilled labor
is reported in short supply. Although the majority of
orders call for prompt delivery, more future business
has been booked than at this time a year ago, some
orders being for delivery as far ahead as September.
The trunk business is just entering its heaviest sea
son, and orders already booked are considerably larger
than at this time last year. The demand is principally
for medium-priced articles, but the more expensive
lines show improvement also. Prices are from 7 to 10
per cent higher than they were last season, and all raw
materials, including leather, lumber, iron and steel, and
cotton goods, are considerably higher.
Harness leather has become much more active since
the opening of the year, and the volume of business is
satisfactory. Prices have not changed during the past
six months, but are higher than they were a year ago.
Collections in nearly all leather goods lines are re
ported as being slow.
The market for packer hides suddenly became active
about the middle of March, and approximately 300,000
hides of February and March salting were
Hides and qUickjy disposed of. It is reported that
skins
a jarge proportion of the total was pur
chased by the largest independent tanning interest.
Sales were principally of branded hides and of heavy
and light native steers and are said to be for manu
facture into sole leather. The price of branded hides
remained firm, but natives fell 1T cents per pound
/z
below that of previous sales. Heavy natives brought
only a half cent per pound more than heavy Texas and
butt-brands,— an unusually small difference in price.
These sales have removed from the market the largest
part of the remainder of the poor season’s hides, and
the prices obtained are considered to indicate consider
able strength.
The Buenos Aires market is firm, and is active.
Prices are about as high as they have been this year.
Calf skins are dull, and quotations are somewhat un
der those of a month a g o ; but tanners show little
desire to buy skins of the present season. Goat skin
prices are strong, although tanners appear to be buying
sparingly. Chinas remain scarce, and though the ex
port duty was reduced in March, Indias show little
change. Sheep skins are still advancing, and sales,
although not large, are reported as fair.
PAPER
On the whole, the demand for paper is very good,
being even better than it was last month and much
stronger than in March, 1922. Paper manufacturers,
with only a few exceptions, are operating at capacity
on orders booked. Magazine and book papers are in
heavy request, now that text-book publishers are be
ginning their busy season, and mills making these
papers have a fair quantity o f orders for future de
livery. Wrapping papers, too, are in very good de
mand, but nearly all business is for immediate delivery.
Wall-paper manufacturers are now working at full
capacity on spring business, and they state that the
call is much heavier than it was a month ago and than
in March, 1922. February 1 was the closing date for
the shipping of fall wall-paper orders, and the demand
during February was rather dull, as that is a betweenseason month. Makers of toilet paper, however, do
PAPER
P R O D U C T IO N
not find business so good and report that the demand
shows a decrease from that of last month and that of
March of last year. Toilet-paper mills are running at
from 50 to 75 per cent of capacity. Paper wholesalers
report that the demand is very good, notably for fine
papers and for book, wrapping, and kraft papers.
Their average daily sales slightly exceed those of the
two preceding months of this year and are from 15 to
25 per cent greater than in March, 1922.
The preceding chart, compiled from statistics gath
ered by the Federal Trade Commission, shows the ex
tent of the recovery of prosperity by the paper industry
during the past six months. In January of this year
the production of book and wrapping papers exceeded
that of any month in the history of the industry, and
fine paper output equaled the previous high monthly
record. Only newsprint production did not equal pre
vious records.
Paper prices have remained practically stationary
during the month, at the advanced levels established
during February. The costs of raw materials, too,
are unchanged, with the exception of mechanical pulp,
which is from $3.50 to $6 per ton, or approximately 10
per cent, cheaper than it was a month ago. The partial
thaws that occurred early this month replenished the
water supplies and permitted several mills to resume
grinding. Consequently, mechanical pulp is not quite
so scarce as it was a month ago, although it is by no
means plentiful yet.
Finished stocks at the mills are either light or mod
erate and are remaining about stationary. Most mills
now are working only on orders, so the building up of
stocks has practically stopped. The majority of paper
manufacturers have moderate supplies of raw mate
rials on hand and have contracted for their needs up to
August 1. Several are now placing long contracts for
coal.
There is a scarcity of both skilled and unskilled work
ers at some plants, but at most mills the labor supply is
adequate. The majority of manufacturers are paying
the same wages as were in effect a month ago, although
some manufacturers have made slight advances during
the month to bring their rate up to those paid by other
mills.
Transportation delays are not so serious as they were
two months ago, and on the whole freight shipments
are improving in despatch. Collections are from fair
to good. They are more prompt than they were in
March, 1922, and about the same as in February.
PRINTING AND PUBLISHING
The majority of printers and publishers report that
the demand for their products shows considerable im
provement over that of the early months of 1922. Pub
lishers of magazines, periodicals and trade journals
state that their sales of advertising space and of sub-
T he quantity of paper being produced now by American m ills is equal
to or greater than the m onthly output in 1920, the record
year. Production of book and wrapping paper in
January, 1923, was larger than in any pre
vious m onth in the history of the
industry.
Source—Federal Trade Commission
26
scriptions are highly satisfactory, and that although
their monthly sales have remained stationary during
the past three months, their total business for this
quarter is from 10 to 15 per cent greater than it was
for the first quarter of 1922. Publishers of books are
well supplied with orders, and one large firm that pub
lishes biblical works and textbooks reports difficulty in
meeting the demand, even though it is operating at
capacity night and day. Job printers find the demand
better than it was a year ago, despite the fact that not
quite so much spring catalog business has as yet been
offered as at this time last year. One large firm of job
printers reports that in the month of January it had
the greatest number of production hours in the firm’s
history, and March production is expected to equal that
of January. Advertising folders and pamphlets are in
good request from all lines of industry. Lithographers
state that window display advertising is in excellent
demand and is being bought heavily by the food and
food-products industry and by rubber and tire manu
facturers. Most of the orders booked by printers and
lithographers are for immediate shipment and little
future business has been offered. Plant operations vary
from 60 per cent to capacity, and the average is 80 or
85 per cent.
' Although some price cutting is still apparent, it is
not so evident as it was three months ago. Indeed,
because o f the increased cost of paper, most printers
have been obliged to advance their prices from 5 to
10 per cent. Some firms have adopted a policy of mak
ing all estimates subject to acceptance within ten days,
because of the uncertainty of paper prices, which are
from 10 to 15 per cent higher than on January 1. How
ever, paper is the only item in printing costs which
has increased recently.
The supply of skilled labor is adequate to meet the
present requirements of the industry, although some
firms report that good compositors are scarce. Wages
remain unchanged, and the labor turnover in printing
plants is negligible. Magazine publishers, however,
state that they are having considerable difficulty in hold
ing girls in their mailing departments and unskilled
labor in their shipping rooms. In these departments
the labor turnover is large and is growing.
Collections are generally reported as fair.
PRODUCTION OF CIGAR5 AND CIGARETTES
(
Cigarettes
(sm all)
la rg e )
V7ZA February, 1922
H I February, 1923
5 ,0 0 0
3 ,0 0 0
\ 2,000
1 ,0 0 0
Total
Class‘A’
Class'B'
(5$ or less)
( 5 i$ + o 0 $ )
Class'C
( 6 i t to I5()
Although the production of cigars and cigarettes in February, 1923,
did not equal that of the m onth of January, the output was
considerably larger than in February, 1922. The short
num ber of working days in February is the
chief reason for the decline in produc
tion as compared with Jan
uary.
Source— Commissioner of Internal Revenue.
the agricultural districts of the northern states and
Canada are still below normal, but manufacturers at
tribute this to weather conditions and they look for
more orders from these regions with the coming of
spring. Class C cigars continue to be the most popular,
but the demand for Class B and for five-cent cigars is
also very good. Several makers and jobbers report
that a large volume of -orders for future delivery has
been booked, but the major part of the commitments
throughout the industry are for immediate delivery.
Production in the large factories varies from 80 per
cent to capacity, and in the small factories from 50
to 100 per cent. The demand for American cigarettes
continues to be strong; but that for Turkish cigarettes
shows no improvement and is only fair.
The chart shown above, based upon sales of internal
revenue stamps, shows that in February, 1923, the
production of large cigars and small cigarettes was con
siderably greater than in February, 1922.
Prices of cigars are firm and unchanged, but a few
manufacturers who have found business dull have o f
fered a slight concession by paying part of the freight.
Cigarette prices, too, are firm, and the sharp price cut
ting which was so apparent among retailers some
months ago has practically disappeared. The better
grades of wrapper leaf still show an upward trend;
but fillers and binders have stopped advancing, and
indeed some grades of the latter have shown a slight
softening in price. At the first two sales of Sumatra
tobacco at Amsterdam, Holland, prices for the grades
of wrapper desired by American manufacturers were
from 20 to 25 per cent higher than in the first two
sales of 1922. Some of the large cigar makers, who
are heavy consumers of Sumatra wrapper, refrained
CIGARS AND CIGARETTES
The dull season of the year in the cigar industry is
drawing to a close, and the majority of manufacturers
report that their orders are bigger than they were a
month ago. The large producers of cigars find the de
mand excellent' for this time of the year, and they
report that sales are from 10 to 25 per cent greater
than in March, 1922. The small manufacturers state
that business has been rather dull since February 1,
though better than it was a year ago. Purchases by
I MILLIONS
C ig ars
27
from buying at these auctions, in the hope that prices
will be easier at the later sales.
Stocks of cigars at many factories are moderate and
are increasing, particularly at Class A and Class B fac
tories; and Class C stocks are heavier than they were
a month ago. Manufacturers are not alarmed over this
accumulation, however, as they confidently expect their
stocks to diminish during the spring and summer.
Some cigar makers have been forced to curtail pro
duction slightly because of the lack o f humidor space.
In general, the stocks of leaf tobacco held by manufac
turers are moderate.
The labor supply is sufficient at most factories, al
though at some a scarcity of skilled workers is noted.
In Philadelphia, at present, the supply of operatives is
sufficient, but in cigar-making centers outside of the
city the supply is somewhat scarce, because o f an in
crease in the number of factories. As a result, some
outside manufacturers have recently advanced wages
about 10 per cent. The majority, however, have made
no wage advances during the month.
Collections are better than they were a month ago
and are from fair to good.
and smallest in milk cows. The foregoing chart shows
that the numbers of hogs, milk cattle, and other cattle
on the farms of this district is greater now than it has
been since January 1, 1920, but that the number of
horses and sheep is smaller. The farm animals census
in the years previous to 1920 was reported by govern
ment bureaus as of April 15 instead of January 1, and
therefore it is difficult to ascertain whether the total
of livestock is now above or below the ten-year average.
April 15 figures are not comparable with those of Janu
ary 1, on account of the large numbers of young ani
mals born in the spring.
At a conference of agronomists and fertilizer manu
facturers in Baltimore, fifteen fertilizer formulas were
agreed upon and adopted as meeting all soil require
ments for the seven Middle Atlantic States,— New
York, Pennsylvania, New Jersey, Delaware, Maryland,
Virginia, and West Virginia. The selection of a limited
group of high-grade fertilizers, all of which are recom
mended by soil experts of the section concerned, is a
long step forward toward establishing the use of a
small number of high-grade fertilizers, instead of many
brands of low-grade fertilizers. There are, at present,
about two hundred different grades of mixed fertilizers
sold annually in the Third Federal Reserve District.
Many of these contain much less than 14 per cent of
total plant food, the minimum amount that a good ferti
lizer should contain.
The following grades were the standards adopted by
the conference:
AGRICULTURE
The Department o f Agriculture’s census of the num
ber of animals on the farms of Pennsylvania, New Jer
sey, and Delaware shows that on January 1, 1923, the
number o f all animals, except horses, was slightly
greater than on January 1, 1922. The figures for New
Jersey show no decrease of horses in that state during
the year, but in Delaware and Pennsylvania the num
ber has declined. The increase was greatest in hogs
Standard fertilizer formulas
nitrogen
Per cent
phosphoric
acid
ANIMALS ON FARMS
0
2
2
2
P E N N S Y L V A N IA , N EW J E R S E Y AND D ELAW ARE
thousand: "
3
3
3
—
—
—
—
—
—
—
12
12
12
10
8
10
8
Per cent
potash
_
—
—
—
—
—
—
Per cent
nitrogen
4
6
4
4
4
4
3
5
6
8
5
6
6
2
7
Per cent
phosphoric
acid
—
—
—
—
—
—
—
—
12
8
8
12
8
10
8
6
Per cent
potash
—
—
—
—
—
—
—
—
0
4
6
4
5
5
4
5
In addition, four other formulas were selected
meet special soil requirements:
Special fertilizer formulas
Per cent
nitrogen
0
0
On account of the good prices that have prevailed for m ilk during the
past four years, the num ber of m ilk cows has increased. Rela
tively cheap corn has resulted in an increase of hogs and cat
tle for fattening. The horse on the farm is being displaced
to some extent by the tractor, and sheep raising in
the East cannot economically compete with that
in the W est.
—
—
10 —
1 0 —
4
10
Per cent
nitrogen
Per cent
phosphoric
acid
4
—
1 0 —
8
5
Per cent
potash
—
—
10
0
Estimates of the stocks of corn, wheat, oats, and
barley on the farms of the United States, on March 1,
Source— Department of Agriculture
Per cent
Per cent
phosphoric
potash
acid
28
computed by the Department of Agriculture, show that
there is less corn, but slightly more wheat, oats and
barley, than on March 1, 1922. As compared with
March 1, 1921, the stocks of all grains are smaller, as
is shown by the Department’s figures:
and less than the average on March 1 for the past ten
years. The quantity of oats held by Pennsylvania farm
ers is greater than last year and also than the average
for the past ten years. There were more bushels of
wheat on March 1 this year than last, but they were
less than the ten-year average.
Grain stocks on farms of United States
Grain stocks on farms of Pennsylvania
March 1, 1923
March 1, 1922
March 1, 1921
March 1, 1923
C o r n ___ 1,087,412, OOObus. 1,305,559,000 bus. 1,564,832,000 bus.
Wheat ..
153,134,000 “
124,253,000 “
217,037,000 “
Oats ___
421,511,000 “
411,934,000 “
683,759,000 “
Barley ..
43,592,000 “
42,294,000 “
65,229,000 “
* March 1, 1921 only.
The wholesale prices of red clover and timothy seed
are lower than they were last year, but higher than in
1921. Seed wheat is cheaper than for the past two
years, and as the accompanying chart shows, seed barley
and seed oats are cheaper than on March 1, 1921, but
higher than on March 1 of last year.
Exceptionally mild weather early this month brought
joy to the early truck farmers of southern New Jersey
and southeastern Pennsylvania, but apprehension to
the fruit growers of the district. Some spring plowing
was done on the sandy soil farms in the first week of
the month, but operations were brought to an abrupt
halt by the return of cold weather. The fruit buds,
however, were prevented from opening, and the danger
of the killing by frost of much of the fruit crop was
avoided. Most of the hot-bed seeding has been accom
plished, and some early truck crops are appearing above
the ground, under glass. Truck farmers are preparing
their cold-frames for the process of hardening plants
preparatory to setting them in the field. Heavy rain
throughout the district has proved a boon to grain and
cover crops and the stands in the fields are better
than had previously been estimated.
WHOLESALE PRICES OF FIELD SEEDS
Timothy
Vbeot
Barley
Oats
The yields of the crops and their prices at the time of harvest have a
direct effect on the prices of the seeds. The 1922 hay crop was
larger than that of the year before and the price per ton was
lower; hence tim othy and clover seeds are cheaper now
than they were last spring. For the same reason seed
wheat, seed barley, and oats are lower than in 1921.
Source— Department of Agriculture.
COMPILED AS OP MARCH 23, 1923
This business report will be sent regularly without charge to any address upon request
March 1
10 yr. average
Corn .................. 29,761,000 bus. 32.034.000 bus. 30,109,OOObus*
Wheat .............. 6.085.000 “
5,906,000 “
6,245,000 “
O a ts.................... 16.909.000 “ 14.466.000 “
16,075,000 “
Barley ...............
61,000 “
84,000 “
63,000 “
In Pennsylvania the stocks of corn are smaller than
they were on either March 1, 1922, or March 1, 1921.
Barley stocks are lighter than they were a year ago
Red Clover
March 1, 1922
29
THE THIRD FEDERAL RESERVE DISTRICT
Population of district..............................................
6,753,690
Population o f 20 leading cities.............................
3,160,386
Number of industrial workers in district........... .
925,393
Number of industrial workers in 20 leading cities.
549,959
Value of manufactures in district..........................$5,375,118,000
Value of manufactures in 20 leading cities......... $3,398,068,000
Twenty largest cities of the Third Federal Reserve District
Population
County
City
Pennsylvania:
Philadelphia . Philadelphia ...................
Harrisburg ...
Wilkes-Barre .
Allentown ....
Johnstown . . . .
Lancaster . . . .
Bethlehem ....
York
Williamsport .
Norristown ...
Dauphin .........................
Luzerne .........................
Lehigh ............................
Cambria .........................
Blair ...............................
Delaware ........................
Lancaster ........................
Lehigh and Northampton
Vork ...............................
Lycoming .......................
Northampton .................
Montgomery ..................
Luzerne ..........................
1920
Number of industrial workers
Increase
since
1910
1919
Increase
since
1914
Value o f manufactures
1919
Increase
since
1914
1,823,779
137,783
107,784
75,917
73,833
73,502
67,327
60,331
58,030
53,150
50,358
47,512
36,198
33,813
32,319
32,277
17.7%
6 1“
12 2 “
18.3 “
10.0 “
41.6“
21.3 “
15.7 “
50.6 “
12.5 “
53.5 “
6.2 “
13.6“
18.5 “
15.9 “
26.8 “
281.105
14,467
29,122
10'522
9,408
14,812
12,855
12,800
18,677
9,444
14,961
33,368
8,566
4,672
3,534
3,815
11.9%
15 2 “
20 7 “
32.1 “
16.0“
8.2“
5.6 “
19 3 “
196.7 “
6.6“
20.8 “
23.2 “
42.4 “
15.0“
*10.7 “
39.0 “
$1,996,481,000
54,630 000
141,561 000
52,153,000
41.986,000
90,834,000
90,469,000
53,946,000
951949^000
48,026,000
102,567,000
59,589,000
41,659,000
27,012,000
18,334,000
14,830,000
119,289
116,309
50,707
23.2 “
23.0 “
9.9“
24,547
40^906
958
23.8 “
81.5“
4.4 “
122,478,000
218,165,000
6,359,000
123 4 “
203.7 “
114.0 “
110,168
26.0 “
21,420
42.3 “
121,040,000
207.2 “
154.5%
90 ? •
•
165 9 “
176.4 “
150.9 “
167.8 “
77.5 “
138 8 “
356 4 “■
140.0“
133.3 “
1704“
162.6 “
160 8 “
117.7 “
165.1 “
New Jersey:
Mercer ...........................
Camden ........ Camden ..........................
Atlantic City . Atlantic ..........................
Delaware:
Wilmington ... New Castle .....................
* Decrease.
30
HOW THE FEDERAL RESERVE SYSTEM IS ORGANIZED
The reserve banks, from a legal standpoint, are private
corporations, owned by the national banks o f the country
and by such state banks and trust companies as have be
come members o f the Federal reserve system. Their net
earnings, however, after the payment of 6 per cent dividends
and such additions to surplus as are provided by law, pass
into the treasury of the United States for certain restricted
uses. They also perform a number o f operations for the
Government, such as those connected with the sale and han
dling of Government bonds and notes, and the furnishing of
an elastic currency. But otherwise the reserve banks have
many characteristics in common with national banks. Both
are chartered by the Federal government under acts o f Con
gress and are conducted under the direction and control of
their own boards of directors. Both issue currency which is
redeemable on demand at the Treasury Department in Wash
ington. Both are under Federal supervision—national banks
under the supervision o f the comptroller of the currency and
reserve banks under the supervision of the Federal Reserve
Board. The supervision exercised by the Federal Reserve
Board, however, is of a different nature from that which the
comptroller exercises over the national banks, as will appear
below.
The composition of a reserve bank’s board of nine direc
tors recognizes the various elements o f the country’s popula
tion, which the reserve banks serve in their
^ d i r e c t o r manifold daily operations.
Six o f the nine
directors are elected by the member banks.
Of these, three, known as class A directors, are representa
tive of the member banks. They may be bank stockholders,
bank directors or bank officers. The other three, known as
class B directors, are representative o f business in its
broadest sense; they must be engaged in commerce, agri
culture or some other industrial pursuit. They may be bank
stockholders, but not bank directors or officers. Three other
directors, making the total of nine, are known as class C
directors, and represent the Federal Reserve Board at Wash
ington by whom they are appointed. They must be residents
o f the district and may not be bank stockholders, directors
or officers. One of them is chairman of the board o f direc
tors. He is also Federal reserve agent, and as such is the
representative at the Federal reserve bank of the Federal
Reserve Board.
For voting purposes the member banks are divided into
three groups, the largest banks in one group, the middle-sized
banks in a second group and the smallest in a third. Each
group votes for two directors, and no bank may vote out of
its group. This method of election, together with the condi
tions o f eligibility which the Federal Reserve Act imposes,
makes the board o f directors truly representative and also
serves to prevent any one interest from controlling the poli
cies and action of a reserve bank to the prejudice of any
other interest. In a still broader sense, it insures that the
reserve bank shall be responsible to all the people o f the
country, in all of their capacities and all o f their activities.
to producers and consumers alike, subject only to the restric
tions o f law surrounding their operation.
Specifically, the services which a reserve bank performs for
the banks and through them for the people o f the country in
clude the supply of credit to banks which in
Reserve bank
turn enlarges their power to lend to their
services
customers, the collections o f checks and notes
through a nation-wide organization, and the transfer of
funds throughout the country by telegraph without cost.
Allied with these services and that of furnishing an elastic
currency are many others which result in the safer, more
economical and more rapid despatch o f private business.
The conduct of these operations is in the hands of the offi
cers o f the reserve banks, who are appointed by the boards
of directors o f the respective banks. The compensation of
officers and employees is fixed by the directors, subject to the
approval of the Federal Reserve Board.
The Federal Reserve Act gives to the Federal Reserve Board
at Washington a power of “general supervision” over the
reserve banks. It does not give to the
^ R eservelio a rd Federal Reserve Board “ control” over the
reserve banks; that term is used in the
Act only to describe the duties of the directors of a
reserve bank. Nor is the Federal Reserve Board an operat
ing body. The relations, however, between the reserve
banks and the Federal Reserve Board are close. As has been
indicated above, three o f the directors of a reserve bank are
appointed by the Federal Reserve Board. Thus, instead of
the kind of supervision exercised by the comptroller o f the
currency over national banks, which is largely critical and
takes place after the fact, the Federal Reserve Board through
its representatives on the boards of directors o f the reserve
banks has a share in the development of policies before they
bear fruit in performance. The Federal Reserve Board, also,
has the right to suspend or remove any officer or director
of a reserve bank for cause; it has the right to review and
determine rates of discount established by the directors of
a reserve bank; it may require one reserve bank to lend
to another reserve bank; it has the power of examination
o f reserve banks and to it must be reported in detail their
operations. But the Reserve Board has no power to require
a reserve bank to make or not to make loans to any particu
lar member bank; the actual lending is left to the reserve
banks themselves.
When the Federal Reserve Act was passed one of the pur
poses of Congress was to establish a system which within the
restrictions of the law should meet the
e e Darius needs both o f the various sections of the
reserve
country and o f the country as a whole.
Consequently, the framework of the system provides for
twelve separate institutions, each controlled by its local board
o f directors, particularly qualified by local knowledge to serve
a district’s local needs, but all joined together through the
Federal Reserve Board for the flow o f credit from one dis
trict to another, and for such purposes as require unity of
policy and practice.
32
@FedFRASER