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BU SIN ESS AND FIN A N C IA L
CO N D ITIO N S
IN THE
THIRD FEDERAL
PHILADELPHIA
RESERVE DISTRICT
AUGUST I, 1922
By RICHARD L. AUSTIN, Federal Reserve Agent and Chairman
FEDERAL RESERVE BANK of PHILADELPHIA
GEN ERAL SUM M ARY
CONTENTS
For summary of Federal Reserve Board on business conditions
throughout the United States, see pink slip inserted in this report
PAGE
Agriculture ...................................................................................................... 27
Bankers’ acceptances ...................................................................................
5
B u ild in g .......................................................................................................... 11
Cement .............................................................................................................. 12
C ig a rs ................................................................................................................. 26
Coal, anthracite ............................................................................................. 14
Coal, bitum inous.......................................................................................... 15
Coke ................................................................................................................. IS
Commercial paper ......................................................................................
5
Cotton goods .............................................................................................. 18
Cotton, raw ................................................................................................. 16
Drugs, wholesale ............................................................................................
8
Dry goods, wholesale.....................................................................................
8
Financial conditions .....................................................................................
4
Floor coverings .......................................................................................... 23
Foreign exchange .........................................................................................
6
Groceries, wholesale .....................................................................................
7
Hardware, w h o lesale.................................................................................
8
Hides and skins ........................................................................................ 25
H o siery............................................................................................................ 22
Jron and steel...............................................................................................
9
L e a th e r............................................................................................................ 24
L um b er............................................................................................................ 11
F a in t ................................................................................................................ 13
Paper .............................................................................................................. 25
Paper boxes ................................................................................................. 26
plumbing supplies ...................................................................................... 14
Pottery ............................................................................................................ 13
Retail t r a d e ...................................................................................................
7
gavings dep o sits..........................................................................................
6
g e c u ritie s .......................................................................................................
5
gooes .............................................................................................................. 23
guk g o o d s...................................................................................................... 20
guk, raw ........................................................................................................ 21
gteel .................................................................................................................
9
Tobacco l e a f ................................................................................................. 27
u n d erw e ar..................................................................................................... 22
wholesale t r a d e ..........................................................................................
7
Wool, raw .................................................................................................... 20
Woolen goods and worsted goods......................................................... 18
Woolen yarns and worsted yarn s......................................................... 19
N spite of the deterrent effects of the coal, rail
way, and several minor strikes now in progress
and of the usual mid-summer influences, business during the past month in the Third Federal ReSerye District has continued active, and the large
rnajority of industries report further gains. In only
I
a very few has there been a decline in buying, and in
these cases the falling off may be attributed almost
entirely to seasonal conditions. In the coal regions,
of course, the volume of both wholesale and retail
sales has decreased materially.
The situation
throughout the district, however, is better, although
the rate of improvement has unquestionably been
slower than would have been the case but for the
strikes. These have affected industry as a whole
almost entirely on the production side. They have
influenced sales only insofar as they have caused
many manufacturers to refuse orders for delivery in
the future, owing to the uncertainties both as to sup
ply and the prices of coal. Already many firms have
reported the depletion of their reserve stocks and
their inability to obtain coal of the grades desired.
As a result of the rapidly dwindling reserves, the
coal market has been very active in recent weeks.
During June the demand was small, because of the
expected settlement of the strike and the anticipated
freight-rate reduction effective July i.
But as
prospects of a settlement grew more remote and as
the need for coal became imperative, buying on a
larger scale revived. Ordinarily, coal sales decline
at this period of the year, but the present unusual
circumstances have caused a marked increase. Since
present stocks of coal are about one-third what they
were on April I, and since current consumption is
far in excess of production, the effect that a long con
tinuance of the strike would have upon industry and
commerce is apparent.
The iron and steel industry, perhaps, has been
most adversely affected by the labor situation. The
S Y N O P S IS O F B U S I N E S S C O N D IT IO N S
THIRD FEDERAL RESERVE DISTRICT
Demand
Business
Prices
Finished
stocks
Cement
Cigars
Coal, anthracite
Coal, bituminous
Coke
Excellent
Good
Good
Good
Good
Increasing
Firm
Firm
Higher
Higher
Light
Very light
Light
Light
Light
Cotton goods
Light
Firm
Fairly heavy
Cotton yarns
Increasing
Higher
Decreasing
Firm
Decreasing
slightly
Firm
Firm
Poor, but slightly
Drugs, wholesale
improved
Fair
and
Dry goods, wholesale
increasing
Floor coverings
Excellent
Groceries, wholesale
Raw material or
merchandise situation
S upply
Collections
Price
Higher
Fair
Fair
Poor
Fair
Fair
Firmer
Fair
High and
fluctuating
Fair
Higher
Fair
Normal
Firm
Fair
Firm
Good
Slightly
higher
Light
Sufficient
Below normal;
Easily
obtainable
decreasing
Light and
increasing
Steel higher
Fair
Firm
Light
Easily obtainable
Firm
Good
Firm
Higher
Easily obtainable
Firm
Higher
Good
Fair
Plentiful
Firm
Good
Searce
Higher
Good
Easily obtainable
Higher
Good
Light
Adequate
Firm
Rising
Higher
Fair
Good
Fair
Higher
Fair
Easily obtainable
Coal shortage;
clay easily
obtainable
Higher
Fair
Slightly improved Few changes
Coal badly needed Firmer
Adequate
Scarce
Fine counts
scarce
Scarcer
Fair
but
Hardware, wholesale Good
decreasing
Hosiery,
Fair
full-fashioned
Hosiery, seamless
Poor
Iron and steel
Good
Fair and
Leather belting
improving
Firm
Leather, heavy
Good
Higher
Leather, upper
Good
Higher
Lumber, building
Paint
Paper
Firm
Firm to higher
Higher
Firm
Light
Plumbing supplies
Excellent
Excellent
Good
Fair (slight
improvement)
Excellent
Normal
Light
Heavy but
decreasing
Heavy but
decreasing
Heavy but
decreasing
Light
Light
Normal
Firm to higher
Light
Pottery
Excellent
Firm to higher
Light
Shoes, manufacture
Fair and
improving
Fair
Poor but
improving
Firm
Normal
Easily obtainable
Higher
Fair
Easily obtainable
Unchanged
High
Fair
Fair and
improving
Paper boxes
Shoes, retail
Silk
Firm
Light
Firm
Fairly heavy
Heavy
Fair
Tobacco
Fair
Wrappers
higher
Fillers lower
Underwear,
heavy weight
Underwear,
light weight
Fair
Firm
Normal
Easily obtainable
Firm
Good
Fair and
increasing
Good but
decreasing
Fair and
increasing
Fair
Light
Higher
Normal
Easily obtainable
Firm
Good
Higher
Light
Plentiful
Good
Lower
Light
Plentiful
Good
Firm
Firm
Light
Light
Woolen goods
Worsted goods
Woolen yarns
Worsted yarns
2
Slightly lower
Slightly lower
Fair
Fair
demand for practically all products has increased con age of labor. Although raw materials are easily
siderably, and buyers have attempted to order for obtainable, prices have been advancing recently, and
future delivery. Large orders have come from rail the trend of finished building materials is therefore
roads, oil producers, automobile manufacturers, the upward. But actual quotations have been raised in
structural industries, and to a lesser extent from only a very few cases.
In the textile industries, the most encouraging
manufacturers of machinery and machine tools. But
producers have been forced to reject much of this development of the past month has been the increased
business, because of the serious production difficulties demand for worsted cloth and silk goods, both of
with which they are confronted. There is a growing which have been especially inactive for a number of
scarcity of both skilled and unskilled labor, and months. The hosiery demand has declined sharply,
wages in many quarters have been increased. This but this is largely a seasonal condition. Aside from
shortage is in part due to the hot weather, causing these, there have been few important changes. The
laborers to seek outdoor work, and in part to the call for cotton goods and woolen and worsted yarns
higher wages paid in the building trades. In fact, has been light, and that for wool cloth, somewhat
the tremendous boom in construction in this district smaller than during the past two months; but the
has taken laborers from many 'industries. Another underwear industry has reported a slight improve
check upon production is the fact that the present ment in demand. Although silk manufacturers have
supply of raw materials is limited because of the received a large number of orders, the improvement
coal strike, and prices are advancing rapidly. This has not been reflected in increased activity in the raw
has resulted in steadily increasing iron and steel silk market. Prices have eased off somewhat, but the
quotations. Operations in the iron and steel industry carry-over is small and therefore any radical decline
uow average about 65 per cent, but on the basis of in price is improbable. Carpet and rug manufacturers
the volume of business offered, most plants could have continued to receive a large volume of orders,
run at very close to capacity.
and many report they have sufficient business on hand
Building activity in the district has expanded to assure capacity operations during the remainder
materially during the past month, reflecting the in of the producing season. Linoleum demand, too,
creased value of permits issued during June. There is heavy. Stocks have been completely disposed of,
was a seasonal decline in permits issued in May, and and several producers are unable to guarantee ship
d was expected that a further decrease would be ments within the desired dates. In the textile in
shown in June. But, on the contrary, the value of dustries, also, labor shortages are reported.
the permits issued in fourteen of the larger cities in
Considerable improvement is found in the shoe
this district during that month was $18 ,177,759 , as industry. Fall orders in large volume have been re
against $13,84 4,813 in May, $17,022,500 in April, ceived during the month, and operations have been
and $ 14 ,116 ,2 9 2 in March. The number of houses increased to about 65 per cent of capacity, and are
being built is exceptionally large, as is that of office still expanding. No changes have been made in shoe
buildings also. Although the construction industries quotations, but they are stiffening, and few, if any,
have drawn from many others for their labor supply, concessions are being made. As a result of this im
there is still a shortage in many sections, and this is proved situation, there has been betterment in the
Particularly true in Philadelphia. A s a result of this leather business. All grades of upper leathers are in
Activity, manufacturers of building materials have increased demand, and the heavy leathers too are
enjoyed exceptionally good business and report selling well. Export business has increased con
general improvement during July. In fact, the de siderably, and since the leather industry in so large
mand for several products is so good that they are a measure depends upon its export business for real
Unable to supply it. Sales of building lumber, al prosperity, this improvement is especially encourag
though slightly smaller than in June, have been ex ing. Leather prices are advancing. Production
cellent. Reports of better business have been re schedules in the industry average about 70 per cent
ceived from manufacturers of pottery, bricks, cement, of capacity, and manufacturers report that more hides
Pamt, and plumbing supplies. The cement industry and skins are being put into process every day. The
ls now operating at capacity, the paint industry at hide and skin markets, also, are in better position.
^ery close to capacity, and the potteries at about 80 Supplies are small, the demand is heavy, and prices
Per cent. Stocks of all building materials are low are advancing.
The paper industry reports a widespread improve
and are decreasing, and manufacturers report short
3
ment, and this in spite of the fact that a seasonal de
cline was anticipated. Newsprint is in especially
active request as a result of the increased size of the
metropolitan dailies. Book papers too, have sold well.
Paper prices are stiffening; no concessions are being
granted, and price guarantees have been withdrawn.
This betterment in the industry is attributable in part
to the lessening of foreign competition. Paper box
manufacturers report improvement, but owing to the
severe competition within the industry, prices have
not advanced, although chipboard has risen $5 a ton.
The cigar industry is still another that has
strengthened its position during recent weeks. The
demand for several of the nationally advertised, high
grade brands is so great that manufacturers are un
able to make immediate deliveries, and the large
companies manufacturing these brands are operating
at capacity. The cheaper grades of cigars are not
moving in as large quantities, and production of these
is proceeding at about 70 per cent of capacity.
Tobacco prices, especially those of the high grade
wrappers, have advanced slightly, but cigar quota
tions are unchanged.
In view of the increased production schedules in
practically all industries, and of the reports of labor
shortages that have become so common of late, there
is of course, no unemployment problem. This is
well shown in the estimates of the Pennsylvania
State Department of Labor, which reports only 82,400 unemployed in the six cities of Altoona, Harris
burg, Johnstown, Philadelphia, Scranton, and
Williamsport. This is a decrease of 11.6 per cent
as compared with the figure for June 30, of 20.8
per cent as compared with the number on June 15,
of 33.4 per cent with that on May 30, and of 66.1
per cent with that on January 1, 1922. The im
proved business situation is also reflected in the
statistics on failures. R. G. Dun and Company report
that in the United States during June there were 1,740
failures, with liabilities of $38,242,450, as compared
with 1,960 and liabilities of $44,402,886, in May.
In this district there were 57 failures in June, 87 in
May, and 78 in April. Further evidence of better
conditions is found in the debits to individual ac
counts. For the four weeks’ period ending Ju ly 19,
debits in this district totaled $409,606,000, and for
the similar period ending June 2 1, the figure was
$ 399 >o7 Looo.
The various agencies that compile wholesale com
modity price index numbers report further increases.
The Bradstreet number rose from 11.9 039 in May,
to 12.1069 in J llne> ° r i-7 per cent, and the number
of R. G. Dun and Company from 169.997 to 173.743,
or 2.2 per cent. The revised index number of the
Bureau of Labor Statistics increased from 148 to
150. As was to be expected in view of the coal strike
and of the large volume of building activity through
out the country, the greatest increases in prices oc
curred in the fuel and lighting and building material
groups. Food articles advanced 1.4 per cent, but
farm products declined .8 per cent. The following
table gives the index numbers of the Bureau of Labor
Statistics for May and June, 1922, and for June,
19 2 1, by commodity groups.
INDEX NUMBERS OF WHOLESALE PRICES, BY
GROUPS OF COMMODITIES
(1913=100)
Farm products.................... .........
Food, etc.............................. .........
Cloths and clothing.............. .........
Fuel and lighting................. .........
Metals and metal products... .........
Building materials .............. .........
Chemicals and drugs............ .........
House-furnishing goods...... .........
Miscellaneous ...................... .........
All commodities ................. .........
1921
June
114
137
172
191
133
163
133
196
125
142
1922
May
132
138
175
216
119
160
122
176
116
148
1922
June
131
140
179
225
120
167
122
176
114
150
F I N A N C I A L C O N D IT IO N S
The Federal Reserve Banks of San Francisco and
Dallas have lowered their rates of discount during
the month just past, and at present the rate of three
of the reserve banks stands at 4 per cent, that of
seven at 4^2 per cent, and of two at 5 per cent. In
the open market a larger proportion of the commer
cial paper sold has been moving at 4 per cent, and we
are informed that one moderate-sized block changed
hands in New Y ork at 3 ^ per cent. For a time,
dealers offered acceptances at 2^6 per cent, but no
purchases were made at that rate in this district. The
prevailing rates here on this class of paper are 3 mid
3 Vk per cent.
Holdings of discounted bills by the Federal re
serve banks have fluctuated during the four weeks
from June 21 to July 19, but the result is an increase
from 422 to 443 millions of dollars in this item. T °
this must be added an increase of 28 millions in pur
chased paper, and there must be deducted 13 mil
lions, representing a decline in the holdings of
United States securities. The net result is a gain
of 35 millions in total earning assets. Deposits have
risen from 1,854 to 1,942 millions, and total reserves
from 3,148 to 3,169 millions. Following a sharp
increase over the holidays, the Federal reserve note
circulation resumed its downward trend, and now
stands at 2 ,13 2 millions, as compared with 2,126
millions on June 2 1, and 2,194 millions on July 5.
The reserve ratio declined from 79.1 per cent to 77.8
per cent in the course of the four-week period.
The statements of the reporting- member banks in
the principal cities of the country show conflicting
tendencies, depending on whether the latest state
ment is compared with that of the previous week or
that of the previous month. This is shown in the fol
lowing table, which also includes figures for the first
of the year.
REPORTING MEMBER BANKS—UNITED STATES
Ju ly 12,
1922
*
_
■Loans and discounts:
Sec’d by U. S. securities..
Sec’d by other securities..
All other (commercial)...
Week
Month Beginning
ago
ago
of year
(000’s omitted)
$271 $286
3,537 3,551
7,031 7,001
$309
3,526
7,109
$499
3,184
7,523
Total * .......................... $10,839 $10,838 $10,944 $11,206
Investments:
U. S. securities.................. $2,081 $2,090 $1,997 $1,469
Other securities .................. 2,291 2,310 2,272 2,096
Total .............................. $4,372
$4,400 $4,269 $3,565
Total deposits ....................... $14,783 $14,680 $14,730 $13,684
Includes rediscounts with Federal reserve banks.
It will be observed that in comparison with con
ditions existing at the beginning of the year, there
has b em a large decrease in loans secured by United
States securities, and in “ all other” loans and dis
counts, which consist chiefly of accommodations for
business purposes. In contrast with these, loans se
a re d by other stocks and bonds, and investments in
fecurities by these banks, are much higher. The
mcrease in deposits gives evidence of the accumula
t e of funds. The latest week under review, however, exhibits tendencies the reverse of some of these,
Plough whether this reversal will continue cannot yet
be determined. Business activity on an increasing
^eale would ultimately call for an expansion in loans,
. ut thus far better business has manifested itself more
n the payment of old debts than in the assumption
°I new obligations.
S e c u r it ie s
Although the past month has been marked by quiet
fading in the security markets, stock prices have re
i n e d the ground lost in the last three weeks of
4Une, and bond prices have resumed the upward
evem en t which was halted for a short time during
month. A withdrawal of funds from New
°rk occasioned a temporary rise in the rates for call
money early in July, but since that time there has
been a return to the rates prevailing in the middle of
June, when the renewal rate varied from 3 to
per cent.
A comparison of the latest security prices with
those of previous periods is given below :
Points increase or decrease compared with
Ju ly 19, Month Beginning Year
1922
ago
of year
ago
Average of—
20 railroad stocks ............$86,82
20 industrial stocks .......... 96.69
10 first-grade railbonds... 91.20
10 second-grade railbonds. 87.06
10 public utility bonds....... 87.90
10 industrial bonds ....... 95.26
4 Liberty bonds ...............100.72
-{-4.20
-j-3.67
-f-3.11
-j-1.77
-j- .55
-j- .81
-j- .63
-f-13.34
-j-17.78
-j- 6.20
-j- 5.94
-j- 7.23
-j- 3.72
-j- 3.84
-{-15.23
-j-28.48
-{-15.16
-f-13.82
-j-15.00
-f-11.04
-j-12.60
C o m m e r c ia l P a p e r
Sales of commercial paper in this district during July have not been large, and reports of the deal
ers differ considerably. Brokers who handle the paper
of the large nationally known firms and corpora
tions have been able to dispose of a fair amount of the
large banks at 4 per cent. But the country and
smaller city institutions, which are usually buyers of
paper bearing higher rates of interest, have pur
chased only in a very small way. Therefore, the
notes of smaller and less well known borrowers have
sold poorly, and the dealers whose principal business
is in this class of notes have reported an extremely
dull market.
The supply has increased slightly, some new
names appearing that have not been in the open
market recently. Such names have sold readily. The
demand in New Y ork has been good, and many of
these new and very desirable names have been bought
up so quickly there that our local buyers have fre
quently missed the opportunity of purchasing.
Sales of six reporting firms in the Third Federal
Reserve District during June total $7,372,000, as
compared with $9,588,000 in May, and are almost
exactly the same as in June, 19 21. Of the total June
sales, 50 per cent were in the city and 50 per cent
outside. About half the total sold at 4% per cent,
nearly 30 per cent at 4 per cent, 15 per cent at 4 y2
per cent, and less than 7 per cent at over ^ l/ 2 per cent.
B an k er s’ A
cceptan ces
Transactions in bankers’ acceptances in the Third
Federal Reserve District have been on a smaller
scale recently. The Federal Reserve Bank continues
to be the principal purchaser of these bills. A few
are being bought by other banks in Philadelphia, but
out-of-town institutions are purchasing to only a very
limited extent. An analysis of the reports of five deal
ers is given below. In this table the figures have
been reduced to weekly averages, as the original re
ports in some instances cover four, and in others
five, weeks.
AVERAGE WEEKLY TRANSACTIONS IN THIRD
FEDERAL RESERVE DISTRICT AS REPORTED BY
FIVE DEALERS IN BANKERS’ ACCEPTANCES
(000’s omitted)
Period
covered
Feb. 13-Mar.
Mar. 13-Apr.
Apr. 17-May
May 15-June
June 12-July
Purchases
12 $420
16 530
14 790
11 827
16 489
Sales
To other banks
To
To
F. R. Bank Local Out-of-town others Total
$1,842 $220
2,548 417
2,208 361
2,949
46
2,599 114
$555
22
48
15
24
0 $2,617
0 2,987
$35 2,652
0 3,010
0 2,738
The supply of bills has been fair. According to
the reports of twelve accepting banks in this district,
the acceptances executed during the months preced
ing the dates given were as follows: July io— $2,895goo ; June 10— $4,612,000; May 10—$3,274,000.
The export of cotton and grains; the import of silk,
sugar and coffee; and the warehousing of sugar,
figure prominently in the transactions which have
given rise to acceptances recently offered in this
district.
Little change has occurred in rates, although bills
are selling more freely at 3 per cent than heretofore.
Dealers have offered bills at 2% per cent, but have
not been able to dispose of paper at that rate in this
district.
S a v in g s D epo sits
Savings deposits as reported by 80 banks in this
district show an increase during June of 0.3 per cent,
but this is due in large part, if not altogether, to the
crediting of interest by many of the banks. In the
city of Scranton, in the heart of the anthracite coal
region, this factor is responsible entirely for the in
crease. Of the six banks in that city, four reported
smaller deposits on July 1 than on June 1, and of the
two which did not, one writes that it credited inter
est to the amount of almost $73,000. This sum, if
deducted from the totals for July 1, would show a
net decrease during June for that city. The declines
reported by the banks in Johnstown, Altoona, and
Wilkes-Barre, and by a number of the banks in
cluded under the heading “ Other,” are directly
ascribable to the coal strike. Better industrial con
ditions and employment account for higher totals in
the cities which report increases.
The table following shows the changes in savings
deposits by cities:
Number
of
reporting
banks
Per cent increase or decrease
Ju ly 1, compared with
June 1,
Ju ly 1,
Ju ly 1,
1922
1921
1920
Altoona ............
Chester ..............
Harrisburg........
Johnstown ........
Lancaster ..........
Philadelphia . . . .
Reading ............
Scranton ..........
Trenton ............
Wilkes-Barre ...
Williamsport __
Wilmington .......
York .................
Other ................ ...
5
5
4
6
3
9
3
6
6
5
4
5
5
14
— .5%
— 2.5 “
+14.0 “
— .8“
+ 4.3 “
— .3 “
+ 1.5“
+ .1 “
+ 2.5 “
— 1.3“
+ .3 “
+10.0 “
+ .4 “
— .7 “
4- 6.2%
— 9.9 “
+64.1 “
— 4.9 “
‘+20.8 “
+ 1.2“
+ 8.7“
+10.6 “
+ .4 “
+ 4.4 “
+ 4.1 “
+11.8 “
+ 7.9“
+ 1.9“
+ 18-7%
— 9.6“
+110.3 “
+ 1.2 “
+ 33.0 “
+ 6.0“
+ 20.3 “
+ 31.9“
+ 4.8“
+ 26.5 “
+ 19.5“
+ 17.1 “
+ 50.9“
+ 16.7“
Totals ........ ...
80
+
+ 2.6%
+ 10.1%
.3%
F oreign E x c h a n g e
The pound has displayed its usual strength during
the past month and advanced nearly three cents,
reaching $4.45 on July 18. But most of the other
European currencies have experienced violent and
erratic fluctuations. Trading in francs has been
especially active, and this currency fell rapidly dur
ing the early part of July, reaching a low point of
7.80 cents on July 8, but subsequently recovering to
8.41 cents. Belgian francs and Italian lire also
weakened during the early part of the month, and
later recovered most of their losses. Marks have
been especially weak, being quoted at .18 cents on
July 8, the lowest level in their history. The fluctua
tions in Continental rates are still attributable largely
to the political situation in Europe and to the discus
sions over the settlement of the reparations problemThe currencies of the former neutral countries
have generally been stronger, however, following
the lead of sterling to higher levels. Swedish
crowns have been especially steady and strong, re
flecting the general improvement in the trade of that
country and in its banking and financial position.
The accompanying table shows the foreign ex
change rates on the principal financial centers on July
20, on June 20, and on July 20, 19 21.
FOREIGN EXCHANGE RATES—NOON CABLES
Ju ly 20,
1922
June 20,
1922
Ju ly 20,
1921
$3.592375
London ................... ........... $4.4531
$4.4236
.077#
Paris ......................... .................0841
.0865
.07553
Antwerp ................... .................0794
.0822
.04502^
Milan ......................... .................0460
.0489
.012955
Berlin ........................ .................001988
.003144
.001353
Vienna ...................... ................ 000034
.000068
.3161
Amsterdam .............. .................3886
.3834
.1532
Copenhagen ............ .................2161
.2123
.2086
Stockholm .............. .................2602
.2552
.1292
Madrid .................. .................1555
.1555
.1646
.1894
Berne ........................ .................1919
•6370,
.8034
Buenos A ire s ........... .................8189
.656/3
Shanghai ................. .................7736
.7832
R E T A IL "T R A D E
W H O LESA LE TRAD E
Sales in retail trade during July appear to be al
most equal to those of July, 19 2 1, except in districts
affected by the coal and railroad strikes. Stores in
both the hard and soft coal sections of the district
reported a very large decrease in June business, and
July sales continued to fall rapidly, as compared with
the same periods of 19 2 1. The longer the strikes
last, the scarcer money becomes, and naturally pur
chases are limited to the bare necessities. In Phila
delphia, although there is a feeling of caution engen
dered by the continuance of strike conditions, par
ticularly on the railroads, it is difficult to trace the
actual results of this hesitancy as far as retail pur
chases are concerned. Sales in women’s apparel
stores in the city are not as close to the totals of July,
192i, as are those in department and men’s apparel
stores. Many of the articles usually bought by
Women at this time of the year are particularly dull.
Among these are ribbons, neckwear, veilings and
ginghams, of which latter, stocks are above normal.
On the other hand, hosiery, gloves (especially of
fabric), and all white garments, including hats and
shoes, have been selling freely. In the men’s depart
ments tropical weight suits, hosiery, shirts and un
derwear are all being sold in normal quantities. Fur
niture, floor coverings and other household wares are
already feeling the effects of the increases in residen
tial building.
Collections in all except the coal mining districts
are reported as good.
During June, net sales of both dry goods and
groceries increased, but sales of drugs and hardware
declined. The seasonal lull in wholesale hardware,
which is normally expected in mid-summer, was has
tened by the coal strike. In all the wholesale report
ing lines, orders placed by retailers are conservative,
and with the exception of canned goods for fall,
there is an almost total lack of future buying. In all
but a few isolated cases, such as sugar, wholesale
prices have remained unchanged. Price advances
are strenuously resisted by retailers because of the
moderate size of the demand from consumers.
W h o l e sa l e G ro ceries
That the demand for groceries is slowly increasing
is confirmed by the decided improvement in June
sales, which were 9 per cent larger than those for
May and 1.7 per cent heavier than the sales of last
June. In many cases this increase may be attributed
to the lively demand for sugar for preserving and
canning, but retailers are buying generally though
conservatively. The most active sellers are staples,
coffee and canned goods such as peas being in re
quest. The call for luxuries is very limited. For
example, raisins are extremely dull, and California
canned fruits, which sold freely last season because
of the destruction by frost in this section, are not
now in demand. This dulness, however, had been
anticipated, because this year’s fruit crop is about
normal. It is also reported that sales of dried fruits
RETAIL TRADE
Comparison of N et S ales
J an. 1 to
June, 1922,
June, 30, 1922,
with
with
Jan. 1 to
June, 1921
June 30, 1921
J une 30, 1922,
with
June 30,1921
of
S tocks
J une 30, 1922,
with
May 31, 1922
Percentage of
orders outstand
ing June 30,
1922, to
total purchases
Jan. 1 to
in 1921
June 30, 1922
R ate
of T urn
over*
Tf tN.
3.1
3.8
7.3%
7.6“
— 5.8%
— 4.1 “
—22.7 “
— 1.5“
—10.0 “
— 3.8 “
— 2.4 “
— 5.4 “
—13.1 “
— 42%
— 6.8 “
—Harrisburg....................
—Lancaster.......................
—Reading..........................
—Trenton ........................
—Wilmington ...................
—All other cities..............
— 1.9%
+ .7“
—12.7 “
— 1.1 “
— 9.1 “
+ 1.0“
+ 1.6“
+ 1.9“
—12.2 “
1 1
reporting firms (104)................
•^rms in—Philadelphia...................
C omparison
+ 5.6“
— 4.9 “
+ 4.7 “
— .4 “
—17.3 “
+ 2.3 “
— 2.8 “
— 3.6 “
— 1.4“
— 3.4 “
+ .3 “
— .8 “
2.7
2.5
2.0
2.7
1.8
2.5
^11 department stores.....................
pCpartment stores in Phila..............
ePartment stores outside Phila...
— 1.0“
+ 3.8“
— 8.7 “
— 5.2 “
— 2.3 “
— 9.8 “
— 3.2 “
— 6.5 “
+ 1.8“
— 6.2 “
— 9.1 “
— 2.0 “
3.0
3.6
2.5
8.5 “
10.0“
6.0 “
aPparel stores...........„v...............
len s apparel stores—
—in Phila...........................
—outside Phila...................
°rnen’s apparel stores—
—in Phila...........................
—outside Phila...................
— 8.3 “
— 9.8 “
— 6.9 “
— 3.3 “
3.6
3.7 “
+ 5.2 “
— 7.7 “
+ 1.3“
—12.5 “
+ 1.8“
— 1.6“
+
+
.7 “
.4 “
3.0
1.5
19.9 “
—14.6 “
+ 3.9 “
—15.5 “
— 7.9 “
— 7.7 “
+ 1.1 “
— 7.1 “
— 6.5 “
5.4
4.0
2.8 “
redit houses...................................
+21.5 “
+12.5 “
-
— .1 “
2.4
4.7 “
Times per year, based on cumulative period.
7
8.2 “
12.9 “
8.2 “
4.3 “
5.3 “
and canned tomatoes are small, but that future or
ders for canned goods are being placed for delivery
in the fall. However, the great majority of orders
in the wholesale grocery business are for immediate
delivery.
On the average, prices are unchanged, but sugar,
cheese, beans, coffee, sardines, canned meat, and but
ter are higher. The most striking advance was in
the price of sugar, which rose because of the active
seasonal demand. Flour quotations first increased
and then declined, and raisins also are now lower.
Stocks are somewhat below normal, and show a
tendency at this time of year to decrease. Though
they are lower than the “ normal” of the war period,
they are heavier than the “ normal” of pre-war times.
Because of a light pack of peas last year, supplies of
them are very low, and wholesalers are finding diffi
culty in obtaining all their requirements both of June
peas and of sugar.
Collections are only fair, and have not improved.
The coal strike has not only reduced the volume of
business, but has made collections slower in that
region, because retailers find it difficult to obtain
money. In June, accounts outstanding showed a
io per cent increase.
W h o l e s a l e D r y G oods
During June, sales of wholesale dry goods in
creased 8.3 per cent. On the whole, the Ju ly demand
has improved, especially for seasonable merchandise
and staple white goods for immediate delivery. A r
ticles for women and children seem to move more
rapidly than those for men, and customers generally
desire substantial goods. Near the coal regions, the
volume of sales has been diminished about 20 per
cent by the strike. For the same reason, merchants
are experiencing difficulty with slow payments in
this area, but in other districts collections have im
proved.
The majority of stocks are about normal, and
since last month have become slightly larger. No
change has occurred in the general level of dry goods
prices, but there have been minor changes downward,
for at the present time price is a most important fac
tor in the selling of goods.
W h o l e sa l e D rugs
Although the demand for wholesale drugs has im
proved somewhat since the period of stagnation early
in July, it is still light, and sales during June showed
a decrease. Retailers had become so accustomed to
falling prices that the strengthening of quotations be
cause of scarcity has had little effect in stimulating
orders, except in a few items like gums and saffron
flowers, stocks of which are very low.
In spite of a firmer tendency, the general level of
prices is nevertheless almost unchanged, although
botanical drugs have advanced because the produc
tion, both foreign and domestic, threatens to be cur
tailed by higher costs of collection. Supplies in the
hands of wholesalers are of almost the same size as
they were two months ago, but they have decreased
slightly except where new lines have been added.
Some retailers are failing to take advantage of dis
counts offered. The ratio of accounts outstanding
to sales, in June, was 130.4 per cent, whereas in May
the ratio was 124.7 Per centW h o l e sa l e H ardw are
During June the volume of sales reported by
twenty-five hardware firms in this district showed a
material decline from that of the previous month.
Indeed, the majority of firms report a decrease in the
value of sales as compared with that of the same
month last year, although the total was slightly
greater. That this decline during June is not in ac
cord with the usual experience of these firms is
shown by the accompanying chart, giving the aver
age percentage of annual sales in each month of the
year during 1920 and 19 2 1. Sales increased during
early spring and reached a maximum for the year in
April, then declined in May, and recovered again in
June. Ju ly apparently is normally a dull month in
the wholesale hardware trade, and in its first ten days
has already witnessed a further shrinkage in sales.
This slackening during June and July is probably
largely attributable to the almost total cessation of
purchasing by coal operators during the suspension.
Building activity is still chiefly responsible for what
demand there is, the call being especially good for
CONDITION OF WHOLESALE TRADE DURING JUNE, 1922
No. of
reporting
firms
Drugs ...
Dry goods
Groceries
Hardware
...1 5
Percentage of increase or decrease in
Net sales
Accounts outstanding
June, 1922, compared
June, 1922, compared
with
with
May, 1922
June, 1921
May, 1922
June, 1921
-5 .5 %
+ 3.6%
+ 1.6%
+ -9%
+8.3 “
—l w
— 3.3 “
— 1 0 .3 “
+ 92 “
+ 1 .9 “
+ 10 .0“
+ 7 .1 “
—7.5 “
+ .5 “
— 1.2“
0 .0 “
8
Ratio of accounts
outstanding to w*es
June, 1922
130.4%
244.3 “
100.8 “
164.4 “
only have given way to a market distinctly in the
sellers’ favor, to stiffening quotations, and to sales for
delivery in the third and fourth quarters. More
over, despite the fact that a seasonal decline in the
volume of sales is to be expected at this time, most
manufacturers in the district report further better
ment in business during the past thirty days. But
congestion is becoming acute in some plants, as
orders continue to be received in large volume while
production and shipments are being delayed by the
lack of adequate fuel supplies. After nearly four
months of the strike, fuel supplies are becoming
dangerously low in some cases, and replenishment is
possible only with difficulty and at much higher
prices. Added to the curtailed production of fuel
the strike of railroad workers has resulted in many
delays in delivery of both raw materials and finished
goods. Furthermore, scarcity of labor is now be
coming a serious problem. In practically all localities
in the district a shortage of skilled mechanics is re
ported, and increasing difficulty is being experienced
in obtaining even common labor. The building
boom, which has attracted many laborers away from
the iron and steel industry, is partly responsible for
this shortage; and the warm weather has led many
workers to seek employment on outside work during
VAholesale Hardware Sales
A v er a g e P ercentage ofT otalS ales
OCCURRING in EACH MONTH I9 2 0 and1921
Per cen t ----------------------------------------------------------------- P ercent
■ 1 1 1
m n rr
yJUl/
I vU
I IUI
I WJ
UVA/
\{
w
jpUBCE -FEOteBAMKcrPHILX
plumbing materials, tools, paints, and builders’ hard
ware. Steel companies and railroads are also buylng more freely.
Manufacturers report a generally improved de
mand from dealers and a more pronounced tendency
°n their part to replenish and enlarge their nearly
depleted stocks. Furthermore, sales for future de
livery are being made more easily than hitherto.
Although prices are still from io to 20 per cent lower
than they were last year, there have been many advances during the past few weeks, especially on bolts,
nuts, screws, and other steel goods.
Collections are reported by hardware manufactur
e s as good and as improving. But dealers find them
° nly fair. Indeed, the June report showed an inleasin g ratio of accounts outstanding to sales,
^hich indicates slower collections.
Em p lo y m e n t ,m Philadelphia MetalTrades
Ma m - H o u r s
ex p r essed m
J uly 1920 - tooji
80
^ -S
\
60
h ip y a r d s
\\
/ o u n d r ie s
__
\
//F
Machines . \
Tools, etc—* S »
f
AO
Hap DWADE*
^
20
IR O N A N D S T E E L
Many local manufacturers whose sole concern, a
ew months ago, was to sell enough of their product,
e^en at unprofitable prices, to enable them to operate
.e*r Plants, are now faced with serious production
^fuculties which are delaying shipments. A buyers’
Market, low prices, and orders for immediate delivery
w o r k e d ea ch Month
Percentage of J uly , 1920
1921
Source- Phiul Net/u. MmAmiATion
9
\
; T otal
/
\1
1922
the summer. Operations, however, have generally dependent upon the fuel situation, as demand is still
increased since last month, but the increase has by very good. Steel ingot output during June was
no means been equal to the increase in sales. A wide 2,634,477 tons for the 30 companies reporting to the
diversity in rate of operations still exists. A few American Iron and Steel Institute. Although this
firms report capacity production, but the majority are figure is slightly less than the total for May, 2 ,7 11,still operating at from 50 to 75- per cent of maximum. 14 1 tons, the daily average was over 1,000 tons
A fair picture of the local situation in several greater, owing to the fact that there was one more
branches of the iron and steel industry is shown in working day in May than in June.
the accompanying chart. This gives the fluctuations
In spite of the high rate of operations maintained
in man-hours worked by certain groups of firms re by the Steel Corporation, orders continue to be
porting to the Philadelphia Metal Manufacturers’ received at a rate in excess of current production.
Association. All values are expressed in percentages Unfilled tonnage on the books of the corporation
of man-hours worked in July, 1920, when activity amounted to 5,635,531 on June 30, or 381,303 tons
was very great in practically all metal manufacturing more than the total on May 3 1. This is the largest
industries.
tonnage reported since April 30, 19 2 1, when orders
In spite of difficulty in obtaining coke, pig iron for 5,845,224 tons were on hand.
production during June was heavier than in any
One of the most encouraging factors in the present
month since January, 19 2 1, when 2,414,753 tons situation from a sales standpoint is the diversity of
were produced. June output amounted to 2,356,418 the demand. Orders are not confined to one class of
tons, as compared with 2,309,348 in May, and only buyers, but are coming from nearly all groups of
864,642 in July, 19 2 1. On the last day of June, 190 steel consumers. Extraordinary activity in auto
blast furnaces were active, as against 175 one month mobile production has resulted in an active market
previous. The accompanying chart shows the extent for sheets, and structural shapes are being taken in
to which production of pig iron has recovered from large quantities by builders. Industrial users are
coming into the market more generally, and railroads
the low point reached last year.
Whether a further increase will occur in July is have increased their orders for cars and parts and
rails, especially since the strike, which has reduced
their own manufacturing operations. An improved
market exists for machinery and machine tools, and
heavy stocks of tools are being gradually reduced.
Oil producers are especially active buyers, and large
sales of wire rope are being made to them. The
shipyards are the only large consumers which are not
buying in satisfactory quantities at the present time.
Prices of iron and steel products have generally
been firm or have advanced slightly during the past
thirty days. Of late, however, some recessions have
occurred in certain grades of pig iron. The chart
showing production of pig iron also shows the
average price of a number of grades during the same
period. Increasing production generally has been
accompanied or followed closely by higher quota
tion. Prices of certain standard iron and steel prod
ucts are given in the following table :
July 18,
1922
June 20,
1922
Philadelphia No. 2X pig iron,
per ton ................................ $27.64
$27.32
Valley furnace No. 2 pig iron,
per ton .................................
24.00
24.00
Basis valley furnace pig iron,
per to n .................................
24.00
25.00
Iron bars, Philadelphia, per lb.
.01925
.0196
Tank plates, Pittsburgh, per lb.
.0170
.0160
Sheets, black, No. 28 Pittsburgh, per lb........................
.0315
.0315
Wire nails, Pittsburgh, per lb.
.0240
.0240
$21.85
19.50
19.00
.0210
.0180
.0325
.0275
B U IL D IN G
The building boom continues almost without
slackening in most of the cities of the Third Federal
Reserve District, although a large portion of this
activity is confined to construction for which permits
were issued earlier in the year. Residential building
continues to preponderate, but the erection of large
office buildings and hotels, especially in Philadelphia,
is proceeding at a more rapid rate than hitherto.
Indeed, although in most cities of the district a
natural seasonal decline occurred in the estimated
cost and number of operations for which permits
were issued, in Philadelphia a very marked increase
was recorded, as is shown in the accompanying table.
In May, 1,483 permits were issued for 2,288 opera
tions, at an estimated cost of $8,872,050, whereas in
June, 1,492 permits were issued for 2,461 operations,
estimated to cost $13,190,220.
This increase of 7.6 per cent is all the more sur
prising in view of the usual seasonal distribution of
building operations which is shown in the accom
panying chart. This chart gives the average per cent
of the total yearly operations for which permits were
issued in each of the months of the year. The values
obtained are averages for each month of the five-year
Period from 19 17 to 19 2 1. It is apparent that a
normal increase in operations occurs between January
and April, and that a steady decline takes place durmg the remainder of the year, except in October when
there is a slight increase.
Building costs are mounting, owing to increasing
Prices of materials and to scarcity of certain classes
° f building mechanics. , Building material manu
facturers report a heavy demand for practically all
Products, and this demand has brought higher prices
°n numerous items, which have been reflected in
higher construction costs. Lumber, both softwood
S easonalTrend ofBuilding Operations
Philadelphia
Percent
P ercent
14
14
12
12
Source- BureauofBuildup Inspection- Phila.
and hardwood, has advanced, and bricks and some
paints are also up. Higher prices, however, have not
as yet been a deterrent to building, as is evidenced
by the steady activity in nearly all parts of the district.
L um ber
Demand for soft woods and all types of general
construction and building lumber has been especially
good all spring. The majority of the firms report a
slight decline in orders during July as compared with
June, but still say that their business in these lines is
BUILDING PERMITS ISSUED AND THEIR ESTIMATED COST
Number
Allentown..............
•^Itoona .................
^tlantic C ity........
^-aniden .................
I^arrisburg..........
Lancaster ..............
jh ’ladelphia ........
Reading.................
^cranton ...............
Afenton.................
^ es-B arre .......
liamsport .......
VoJkmgt0n .........
Total ...
,...
85
130
532
133
100
78
1,492
273
195
152
124
106
86
1922
J un e
Est. cost
Number
1921
J anuary
Est. cost
Number
1922
to
J un e ,
inclusive
Est. cost
Number
1921
Est. cost
$228,900
356,426
348,058
378,428
402,116
259,930
13,190,220
368,300
1,065,572
508,638
581,324
58,683
215,998
215,166
68
184
237
114
45
33
1,406
278
64
134
77
36
84
113
$207,968
243,947
1,096,770
183,507
426,395
106,795
4,587,395
297,250
206,019
149,731
94,975
63,945
172,640
38,302
485
1,000
2,208
592
529
476
7,244
1,730
752
771
745
572
483
748
$1,497,075
1,444,228
4,406,344
2,286,904
2,041,571
1,246,625
52,428,645
2,578,771
2,384,355
2,215,331
2,356,289
965,683
1,829,791
633,613
361
963
1,134
478
274
303
6,422
1,608
342
752
426
250
490
619
$768,393
846,450
2,306,579
1,023,546
1,233,445
499,258
16,617,010
1,242,675
1,045,219
1,947,593
830^276
1,016J72
720,758
529,992
$18,177,759
2,873
$7,875,639
18,335
$78,315,225
14,422
$30,627,366
11
from 25 to 40 per cent ahead of what it was during
the same period in 19 21. Spruce, hemlock, and both
short-leaf and yellow pine have been in exceptional
demand.
The call for hardwoods on the other hand is still
erratic, and though orders are increasing, they are
still far below normal. Within the last month, the
demand from certain types of industries requiring
well-seasoned, high-grade hardwoods has shown an
increase, and hardwoods for interior finishings and
for the manufacture of textile spindles and auto
mobile bodies have been most active. But the furni
ture industry is still very dull, and its requirements
are much below normal. Mills are still experiencing
difficulty in disposing of their lower grades of hard
wood lumber, though there are some reports that the
increased business in the machine and other in
dustries has caused an improved demand for these
grades for use as crating.
The majority of the mills are operating at about
80 per cent of capacity, and in spite of heavy
rains which impeded logging operations in certain
sections of the south, they are experiencing no dif
ficulty in filling all their orders. Mill stocks are
normal and are showing some tendency to increase.
Manufacturers are hesitant, however, about running
ahead of demand, and seem unwilling to build up any
large reserves. Stocks of well-seasoned hardwoods
are in general low, though a few wholesalers have
unusually large supplies on hand.
Stocks of building lumber are small throughout
the industry and this is especially true of the regular
sizes of long and heavy lumber. Reserves held by the
sheeting mills, however, are large. This does not
represent a discrimination in demand, but means
merely that an unusually large number of sheeting
mills are in operation at this time.
Prices of the better grades of hardwoods have ad
vanced $5 a thousand within the last month. This
is mostly accounted for by the increased demand
and the general shortage of well-seasoned stocks.
Short-leaf pine has, however, fallen off from $ 1 to
$2 a thousand during the same time. A drop in
demand during recent weeks accounts for this in
part, but it is also attributable to the competition of
Pacific Coast lumber. Freight rates of $ 1 2 a thou
sand have been granted on recent shipments by water,
as compared with the all-rail rate of $20 a thousand.
The present rate controversy has led to a quotation
as low as $ 10 a thousand. The arrival of large ship
ments has on several occasions during recent months
glutted the New York and Boston markets and
seriously deranged general price levels. In spite of the
fact that this trade is new and far from well organ
ized, it has offered serious competition in coast cities
to Southern pine and other building lumbers. The
ability of the Pacific Coast manufacturers to supply
the longer lengths at the same price as the shorter
lengths has been an added point in their favor.
Wages in the hardwood industry, which employs
mountaineer labor, have increased slightly, and now
average $3.50 a day. Mills employing negro labor
report that there is a shortage of men at this time,
which is very largely due to the heavy demand for
workers in the cotton fields. Ever since the war,
when so many colored laborers migrated to the
northern industrial centers, there has been a general
shortage of lumbermen in certain sections.
Collections are fair, but fail to show any improve
ment. There seems to be a tendency on the part of
the owners of lumber yards to advance large credits
to the contractors who buy from them. The con
tractor as a rule does not pay his lumber bill until he
can secure some return on the money he has invested
in his building operations. In the meantime the
retailer must wait on him and the mill on the retailer.
This system has been very hard on some mill owners,
who have experienced difficulty in financing them
selves during the interim.
C em ent
The cement industry has been very active during
the last three months and demand is still exceptionally
good. Only the month of June fell below anticipa
tions, and that was largely due to the extremely wet
weather which prevailed throughout the month and
seriously handicapped open air construction. Some
manufacturers report an increase in demand of from
8 to 12 per cent over that of the period from May
to July of last year. In the cement industry the year
1920 was the greatest ever experienced, but contrary
to the experience of business in general, 1921 was
almost as good, and 1922 bids fair to surpass them
both in output. There was a falling off in orders dur
ing the last two weeks of June in anticipation of the
reduction of freight rates, which went into effect c>n
July 1 ; but this decline has been partially overcome,
and large orders are being booked for both immediate
and future delivery. The majority are for immedi
ate delivery, and as most of the firms already have a
large number of orders under contract and are mak
ing regular monthly deliveries on these, shipments
during the last two weeks have been on the increase.
Stocks vary, but the general impression seems to
12
be that they are slightly less than normal and are de
clining rather rapidly. Some firms have increased
prices 20 cents a barrel to meet the increasing costs
of fuel and labor, but this does not hold true through
out the industry. The various types of rock used in
the manufacture of cement, with the exception of
gypsum, are generally mined on the companies’ prop
erties, and only coal is difficult to secure. The fuel
demands of the cement industry are very large, and
the recent increase of $2 a ton in the price of coal will
seriously affect it. Several of the plants report that
their supply of coal is limited and that unless they
meet with greater success in their efforts to secure a
regular supply, they will be compelled to close down.
Such coal as they are able to get, even at the higher
prices, is proving to be of poor quality and highly
unsatisfactory.
Wage costs have also increased, most of the mills
reporting a rise of approximately 10 per cent. There
is a tightening up of labor throughout the industry,
and some firms are experiencing difficulty in securing
workers even at the increased wages.
Collections are from fair to good, but are failing to
show any great improvement.
size have been forthcoming. Stocks on hand in most
plants are light, though there is a tendency to manu
facture as rapidly as possible for the fall demand.
Supplies of raw materials are adequate and easily
obtainable. All the plants reporting are operating
at from 80 to 100 per cent of capacity. The price
of white lead in oil has increased a quarter of a cent
a pound. Prices of paint materials on Ju ly 10, 1922,
as compared with prices on July 10, 19 2 1, were as
follows:
T,
Ju ly 10
Ju ly 10
1921
Linseed oil, per gal.......................................... 87c.
Turpentine, per gal.......................................... 58c.
White lead in oil, per lb................................ 12j^c.
The only increase in the price of ready mixed paints
has been that of ten cents a gallon on paint retailing
at $2.50 a gallon, which represents an increase of
only 3 J 4 per cent. This increase has been inaugurated
by some of the largest New York houses, but up to
the present time competition has been too keen to
permit any of the Philadelphia houses to follow their
lead. It is significant in that it shows the trend of
prices rather than for any material effect it will have
upon the industry. Paint manufacturers, following
the lead of their national association, are apparently
bending every energy to hold prices to their present
levels in an effort to remove every impediment to the
continuance of the present building boom.
Labor conditions at the present time are satis
factory, although some plants report slight difficulty
in securing efficient workers at the present rates of
pay.
Collections are generally found to be good, but
some firms note a falling off, and one manufacturer
finds his the poorest in several months.
P a in t
Conditions in the paint industry are entirely satis
factory as regards demand and supply. Though
most of the firms report a slight decline in orders
during Ju ly as compared with June, they ascribe this
entirely to seasonal fluctuations, and to the fact that
they have filled and are now filling the large orders
received in April, May, and June. With one excep
tion, all of the firms have caught up with the demand
ar*d are now able to fill orders as rapidly as they come
ln- All firms report an increase in business, for both
June and July, of from 20 to 40 per cent, as com
pared with the corresponding months of 19 21.
figures compiled by the National Paint, Oil and
Garnish Association, covering the sales of 150 manu
facturers, show that “ Ninety-four per cent (94% ) of
the firms reported an equal or increased tonnage for
this year up to June first, as compared with the same
Period in 19 2 1. Fifty-six per cent (56 % ) reported
f n equal or greater tonnage than for the same period
111 the paint industry’s greatest year, 1920. Tonnage
t°tals show that the first six months of 1922 showed
au increase of 28 per cent over those of the same
Period in 19 2 1.”
Industrial demand is still very low, and it has only
een within the past three weeks that orders of any
1922
,90c.
1.32c.
.1224c.
P o ttery
13
Manufacturers of sanitary ware are encouragingly
active, and report considerable increases in business
over that of two months ago and large and decided
increases over that of a year ago. The sanitary
pottery industry consists almost entirely of the manu
facture of patented specialties, which makes each
manufacturer’s business very largely a law unto itself.
The industry as a whole, however, is dependent upon
the building trades, and a very active period of con
struction, such as that prevailing at the present time,
is bound greatly to increase the demand. A close
analysis of the business shows that a complete revolu
tion has been brought about within the past five
years and that where formerly there was one bath
room, modern homes now contain from two to
three. The quality of the fixtures installed has also
shown a decided improvement.
A s regards operations there is a wide discrepancy
among the various plants, the percentage varying
from 25 to 100. The average for all the plants is
about 80 per cent. Manufacturers report that as it
requires eight weeks to complete the product after it
has been started through the processes of manu
facture and that since they operate almost entirely
on builders’ specifications, it is unwise to attempt to
build up any stocks except in a few staple lines. Stocks
of finished goods on hand at the present time are low
and are decreasing. The bulk of orders are for im
mediate shipment, which means delivery in from two
to three months, and the majority of the plants have
sufficient orders to keep them going for the next three
months.
Raw materials are plentiful and no difficulty is
reported in obtaining either foreign or domestic clays.
Heavy rains slowed up operations in some of the clay
pits, but only temporarily. Prices of both the finished
product and raw materials, with the exception of coal,
remain unchanged.
No change has occurred in the wages paid the
skilled workers, and the wage agreement, which runs
to November 1, guarantees to them the same wages
as they received at the peak of prices. Common labor
has been reduced from 54 to 40 cents an hour. In
the larger industrial centers, particularly Trenton,
New Jersey, both skilled and unskilled laborers are
plentiful.
Collections are improved, and as demand becomes
greater, the slow accounts are gradually being elimi
nated by the credit departments.
P l u m b in g S u p p l ie s
The demand for plumbing and heating goods has
increased since June and shows a great improvement
over that of last July. Indeed, several plants report
that their orders are 50 per cent greater than they
were a year ago. All types of brass and iron fittings,
and large amounts of both wrought iron and cast
iron pipe, are much sought after.
Demand is for immediate delivery, but many firms
report that they are unable to accept orders for ship
ment in less than 90 days. Of the plants reporting
their percentage of operations, only three are running
at less than capacity. Stocks of finished products
throughout the industry for the most part are light
and are declining. Raw materials, on the other hand,
are plentiful and show only a slight upward trend in
price. Increases in the price of the finished product,
which were expected to result from the increase in
demand, were in some cases not effected. Manu
facturers, instead, absorbed the 10 per cent decrease
in freight rates and kept prices at their old levels.
Some plants are experiencing considerable difficulty
in securing sufficient coal, and report reductions in
output on that account. The railroad strike, how
ever, has not seriously affected shipments.
There is a growing scarcity of both skilled and un
skilled labor, and some plants report that the shortage
of moulders has greatly curtailed their production.
Collections are much improved and are now rated
as fair.
COAL
A n t h r a c it e
The continuance of the suspension of operations
in the anthracite field and the apparent failure of the
Government’s attempts to bring about a settlement,
coupled with the fear of the possible effects of the
railroad strike, have led many domestic consumers to
enter the market for prepared sizes. Dealers report
that there has been a considerably larger number of
inquiries during the past thirty days for domestic
sizes. But dealers’ stocks are so nearly depleted that
they have been able only partially to fill these orders
or have been compelled to refuse them altogether.
Indeed, reserves of all grades of anthracite, except
pea coal, have nearly disappeared except in the yards
of a few retailers in country districts. Operators
stocks also are practically exhausted. Buckwheat is
in fair demand, and on this, increased prices have
been received by some of the independent operators.
Pea coal has also been moving in better quantities to
industrial consumers, following the depletion of
stocks of the finer sizes. A ready market has been
found for the fine coals being dredged from rivers in
the anthracite district, and production of these has
risen steadily to a weekly total of 23,000 tons in the
week ending Ju ly 8.
The suspension of work in the anthracite region
has continued to be complete, as all of the mine work
ers except maintenance men are still out. No coal
has been mined since April 1, and the only produc
tion has consisted of the few thousand tons of steam
sizes dredged from rivers. All attempts to settle the
differences between operators and workers have been
unsuccessful, and there is now no apparent prospect
of an early resumption of mining. Large withdraw
als of savings from banks in the anthracite regin11
and lessened retail sales there indicate a considerable
reduction in the mine workers’ purchasing power.
Many workers have left the mining districts; others
have obtained employment in building trades, as
construction is very active in those regions.
Dealers report that collections from retail con
sumers are becoming slower and are poor at the
present time. Collections from industrial consumers,
however, are said to be fair.
June. This loss in production is not attributable to
an extension of the strike nor to labor difficulties in
non-union fields, but to a local congestion of traffic
resulting indirectly from the strike of railway shop
men.
Virtually no change in the strike situation has oc
curred, and there has been but little change in the
number of men out. The President’s attempt to ad
just the differences between the United Mine Work
ers and the soft coal operators by arbitration has been
unsuccessful, and he has invited the operators to re
sume operations with the assurance of state and gov
ernment protection from any possible attempts at vio
lence. A s in the case of the anthracite industry there
is no present indication of an early settlement of the
differences between operators and mine workers.
B it u m in o u s
Since the first of July, when the railroad freight
rate reductions became effective, demand for all
grades of bituminous coal has increased materially.
The railroads have been the most urgent buyers, as
their stocks have grown considerably smaller since
April i. Some of the larger industrials which have
been operating at a high rate, notably steel and
cement plants, are also buying more actively. Their
stocks have been almost depleted in some instances,
but many small industrial plants still have three or
four months’ supply on hand. Public utilities are
also buying, but less freely, as their reserves are be
lieved to be heavier than those of other bituminous
consumers. High grade steam coals are in the best
demand, but many consumers are experiencing con
siderable difficulty in obtaining coal of satisfactory
quality and have been forced to accept inferior
grades. High grade gas coals are also reported as
being difficult to obtain.
Prices of spot coal, especially in the higher grades,
have strengthened considerably since the first of the
ftionth. Quotations on high volatile and gas coals
n°w range from $3.50 to $4 per ton, and the better
grades of low volatile coal in the Central Pennsylvania field have been selling at from $4.25 to $4.50.
during the first few days of July the Coal Age aver
s e of spot prices advanced and on July 3 reached
$ 3-5 1, as against $3.44 on June 26. In most instances
°Perators are now receiving the “ maximum fair
Price” established by Secretary Ploover’s conference.
Production, which had been increasing fairly
steadily during May and June, has suffered an abrupt
decline in the present month. After reaching a
^ x im u m during the strike, of 5,363,000 tons in the
'Veek ending June 24, output declined to 5,226,000
t°ns in the following week, and fell off sharply to
3>f>78,ooo tons in the week ending July 8. Although
Production was slightly higher in the following week
""~4,1 14,000 tons— it was still more than a million
°ns less than the maximum weekly output during
C oke
The high rate of iron and steel operations has re
sulted in a continued heavy demand for furnace and
foundry coke. Prices have increased rapidly, and
Connellsville furnace coke was quoted at $ 11.0 0 per
ton, and foundry at the same price, on Ju ly 18, as
compared with $6.50 and $7 respectively on June 20.
Supplies of spot coke are very scarce and difficult to
obtain, even at the advanced prices established dur
ing the past few weeks. This is true in spite of the
fact that production has increased considerably, as
most of this increase has been made by furnace inter
ests for their own consumption. Difficulty in obtain
ing sufficient supplies of beehive coke, owing to
greatly curtailed operations in the Connellsville field,
has been responsible for a much greater demand for
and increased production of by-product coke.
During June the output of by-product ovens
reached 2,580,000 tons, a total even greater than the
monthly average for 1920, 2,565,000 tons. The
June total was over five times as large as the produc
tion of beehive coke in the same month, although this
showed a substantial increase over the output for
May. The accompanying table, giving monthly pro
duction of beehive and by-product coke during the
first six months of this year, illustrates the prepon
derance of the latter product.
1922
January ................................................
February ...............................................
March ...................................................
A p ril......................................................
May .......... ...........................................
June ......................................................
15
Beehive
(tons)
By-product
(tons)
496,000
549,000
732,000
528,000
432,000
458,000
1,879,000
1,795,000
2,137,000
2,208,000
2,537,000
2,580,000
past 15 years has been pretty constantly decreasing,
which may be largely ascribed to the activities and
spread of the boll weevil.
CO TTO N
R a w C otton
Of the two forces, supply and demand, which must
ultimately determine the price of cotton, public inter
est is at present centered in the supply, because it is
the more uncertain. Not only has our domestic con
sumption maintained its previous level, but since the
first of June has even increased, and to such extent
that the takings approximate the weekly average of
domestic consumption for the whole season, which
is about 123,000 bales. The June consumption, ac
cording to the Census Bureau, was 507,869 bales of
lint, which was about 12,000 bales in excess of the
consumption in June, 19 2 1. In other words, the
present demand seems to be fairly constant at a level
which is unusually high for this time of the year. It
is believed by cotton men that price changes within
the limits of 2 1 and 25 cents would not greatly affect
cotton goods prices, and therefore would not appre
ciably curtail our domestic consumption of cotton.
Exports, though they fluctuate violently from week
to week, and in general are below the average, have
been fairly heavy, as may be seen from the figures for
the week ending July 7, of 168,709 bales, or about
50,000 bales in excess of the weekly average. The
most uncertain element affecting the demand is the
political and financial future of Germany, because an
upheaval there would greatly decrease her consump
tion, which heretofore has been heavy.
Since the demand at present is fairly steady, we
must look to the coming crop for features of com
manding interest. When on July 3 the Department
of Agriculture estimated the condition of the crop on
June 25 at 7 1.2 per cent of normal, trading became
very active and cotton quotations sharply advanced.
Private estimates had placed the condition on the
same date at about 73 per cent, and the government
forecast was more bullish than the market had antici
pated. A t the same time, this year’s estimated
plantings were announced to be 34,852,000 acres,
which, as compared with the 31,673,000 acres
planted last year, is an increase of 10 per cent. A s
suming an average yield of 160 pounds per acre, this
year’s crop was predicted to be 11,065,000 bales.
That 160 pounds per acre is a conservative forecast
is seen by comparing it with the ten-year average
from 19 12 to 19 2 1, which was 169.3 pounds, and
with the average of the five years preceding 1920,
which was 16 1.2 pounds per acre. However, the
following table shows that the yield per acre for the
16
TEN-YEAR AVERAGES OF THE COTTON YIELD
Average yield of
lint per acre
(in lbs.)
Period
189818991900190119021903190419051906190719081909191019111912-
190.4
187.9
184.9
182.6
186.3
186.7
187.5
187.8
1862
181.6
179.6
176.1
176.8
177.6
169.3
1907
1908
1909
1910
1911
1912.
1913.
1914,
1915.
1916.
1917.
1918.
1919.
1920.
1921.
After the sudden rise following July 3, the quo
tations fluctuated according to the weather reports.
The price even declined somewhat, on account of
favorable weather, on account of the quietness of the
Liverpool market, which remembered that last year’s
forecast was too low, and on account of the decline
of the German mark. However, it is generally be
lieved that a crop of at least 12,000,000 bales will be
required to fill the world’s needs; and though such a
yield is possible with very favorable weather, cotton
men think that the odds are against its realization.
Only rarely has the condition of the crop improved
during July. Moreover, since the boll weevil is very
prevalent, a few days of excessively wet weather
would do severe damage. Consequently, the all-im
portant factor is the extent to which the crop may be
destroyed by the weevil.
STOCKS IN BALES AT SIX INTERIOR TOWNS
weeKoi
,, vw -Ju ly
Dallas ___
Shreveport
Little Rock
Memphis .
Augusta ..
Houston ..
21, 1922 July 21, 1921
5,920
5,000
19,117
70,886
66,542
47,335
38,244
64,047
56,128
263,804
100,021
218,363
From the above table it is evident that as com
pared with last year, stocks in the southern towns
have greatly decreased. Though an actual shortage
before the new crop arrives is no longer anticipated,
it is apparent from the following figures of the New
York Cotton Exchange that the carry-over will be
very small.
SUPPLY AND TAKINGS OF AMERICAN COTTON
rs
Season of
Season of
Season of
(bales)
(bales)
(bales)
1921-1922
Visible supply, American, at
end of previous season
(July 31) .......................... 4,112,651
Crop in sight, American, to
July 21 of each season.... 10,673,820
1920-1921
2,943,882
1919-1920
3,213,937
11,295,591 12,052,069
Total .......................... 14,786,471 14,239,473 15,266,006
Visible supply, American, on
July 21 of each season__ 2,171,013 4,166,837 3,000,050
World’s takings of American
to July 21 of each season.. 12,615,458 10,072,636 12,265,956
On chart number i is shown a comparison of stocks,
prices and production, which illustrates the smallness
of the total stocks remaining at the end of the present
season, and the price fluctuations since 19 17.
Should consumption during the next season continue
at the present rate, it will exceed the Government’s
estimated yield, and the resulting deficit must neces
sarily be supplied from the diminutive carry-over
from this season.
Since June 15 the demand for cotton yarns has ;
whole slightly improved, and underwear compani
Trend
AND
of P roduction , Stocks
P r ic e s o f A merican C otton
Cents
PEB
Pound
40
30
20
10
1917
1918
1919
1920
1921
1922
1923
* World Takings o f American
Cotton fob each Cotton Year
or Census
Chart Number One
17
are beginning to place orders. However, before
July 4, the call for mercerizing yarns greatly de
creased, as a result of quietness in the hosiery indus
try and the seasonal lull which is normal at that
period. After the stimulation caused by the first
rise in raw cotton, buyers became cautious, and fur
ther advances, instead of increasing the demand,
served to curtail it. As a result of this conservatism,
orders, though fairly numerous, became small in size,
for customers purchased only enough to cover their
sales of finished products. An order for 20,000
pounds would now be considered large. With the
exception of those coming from mills on strike, 75
per cent of the orders are for delivery immediately or
in the near future, because the yarn consumers cannot
secure future orders for their own product.
Southern cotton mills are producing actively, and
about 85 per cent of their spindles are turning; but
in this district the average of operations is much
less, because several mills are shut down completely.
The number of active hours per spindle in New
England, Pennsylvania, and the South is represented
on chart number 2. The declining activity in Pennsyl
vania is attributed to the fact that, in comparison
with the South, wages are higher and the working
July, and now consumers are apparently wary of the
cotton fluctuations. Tissues, swisses, dotted goods
and denims are in request; and fine goods and ging
hams are being sold, but at low prices. The flannel
business, though spotty, has improved, and the de
mand for furniture coverings, especially mohair
plush, is fair. However, percales, sheetings, and
gray goods seem to be unwanted. In short, the tone
of the market is dull, and as advances of raw cotton
prices no longer stimulate demand, the volume of
sales is very small, for customers refrain from buy
ing and refuse to place future orders.
Prices, although advancing, are still low, and in
order to obtain business, many lines of cotton cloth
must be sold on a close margin of profit. Stocks of
goods are moderately plentiful, and in some cases
they are heavy. The plush mills are operating at
about 85 per cent, but firms making other cotton
products are less active. Reports indicate that
skilled labor is scarce.
Collections are fair, and most of the mills are be
ing discounted.
A C omparison of C otton S pindle G r o w n
IM THE
P rim cipal Cottom S p in n in g S ta tes
W OOL
W oolen
Sou QCE-U-S. BugEALIor CENSUS__________________
Chart Number Three
hours per week are fewer. Although the same rea
sons may be fundamentally responsible for the de
creased productivity in the New England mills, the
immediate cause is, of course, the strike.
The comparative importance of the great spinning
centers, as contrasted with this district, and the gains
in the number of cotton spindles from 19 14 to 19 19
is shown on chart number 3. The largest increase of
spindles occurred in North Carolina, and the gain in
Georgia, although actually less than in Massachu
setts, was relatively greater.
Most counts of cotton yam are easily obtainable,
but stocks have been decreasing, and fine-count yarns
are scarcer because of the shortage of long staple cot
ton. Most of the distress stocks have disappeared
from the market, and therefore concessions are
found less frequently. Prices have become much
stronger, and spinners are holding firmly to their
asking prices.
Collections are fair and are improving.
C otton G oods
Extreme quietness has been the distinguishing fea
ture of the cotton goods business during the past
month. Trading was halted by the holiday early in
18
and
W orsted G oods
The demand for worsteds is still poor, but since
June 15 the requests for these goods have shown a
noticeable increase, especially in semi-novelties. Pro
ducers of woolen goods, however, report that during
the past month the demand for their product has
fallen off. But in spite of this, woolens are still sell
ing in much larger volume than worsteds. The
business in cloakings and fancy-back coatings, which
was exceedingly good a month ago, is now reported
to have declined, and doubtless this fact is responsi
ble for the lessened demand for woolens. Moreover,
the early July trading both in men’s wear and dress
goods was interrupted by the holidays and by the
hesitancy which preceded the opening of the spring
lines. Although the reports received are conflicting,
the majority of orders are for future rather than im
mediate delivery, and the proportion of future orders
is considerably larger than it was at this period last
year.
The percentage of operations in the worsted mills
of the district has increased since last month from
40 to 50, but the activity of the woolen mills has de
creased, and these are now running at 80 per cent of
capacity. Most of the blanket looms in this district
have been stopped by the auctions of the heavy stocks
of Government blankets.
Stocks of finished goods- in the mills are light and
are decreasing, and some mills are keeping no stock
because they are working only on order.
More
over, retailers and jobbers, fearing the uncertainty of
the raw wool market and being dubious regarding
the strength of the demand from consumers, are
holding small supplies. Although there is little uni
formity in the size of the stocks of raw material
owned by the manufacturers, perhaps the majority
are below normal. These yarns are easily obtain
able, but they now cost at least 50 per cent more than
they did last year. Although the prices of the goods
have not kept pace with those of the raw material,
they have increased about 15 per cent since April,
and in spite of the fact that many quotations have
been merely nominal, the market has become
stronger.
Since the quotations of the American Woolen
Company have often served as a guide for the rest
of the trade, its announcement on July 17 of prices
°n spring goods is of importance. The opening
prices were somewhat higher than those of last year,
but lower than the quotations announced in June.
The previous level of woolen quotations was main
tained, but prices of worsteds and serges, which have
not been selling so readily, were reduced. For example, 3192 Fulton serge, which is typical of the
whole line of goods, is now $2.50, as compared with
$ 2 .4 2 ^ last year and $ 2 .6 7 ^ in June.
Collections are much improved and are now fairly
good.
W orsted
an d
W oolen Y a r n s
The inactivity that existed in the worsted yarn
Market last month still continues. This lack of busi
e s is due largely to two causes, the present uncer
tainty regarding both the amount of duty which will
imposed on wool and the date when the tariff bill
Will be passed, and the difficulty of selling goods at
Pnces based on current wool quotations. Neither
knitters nor weavers are buying actively. Only
scattering orders are being placed by knitters, al
though there is a little demand for specialty yarns
r°m hosiery manufacturers; and, with the exception
° f novelty yarns for women’s wear, weaving yarns
also are in small request.
Likewise, woolen yarns as a whole are selling but
P°0rly, because orders for yarns for cloakings and
coatings ceased about the last of June. Moderate
Quantities, however, are being sold for hand knitting
^nd for summer sweaters. Sales of carpet yarns for
Xrninsters and Wiltons continue to be heavy.
19
the past month has slightly increased, the ratio of
active worsted spindles to the total number does not
exceed 55 per cent in this district. For the entire
country, however, the figures of the Bureau of Cen
sus for June 1 show a somewhat greater production,
the percentage of active spindle hours to the total
reported being 65.3 for worsted spindles, and 88.6
for woolen.
Most of the orders received are for delivery in
two or three months. Because of the uncertainty
of the raw wool market, most spinners are working
only upon order, and consequently stocks of finished
goods are low. However, since a three months’ sup
ply is usually maintained, the quantities of raw wool
held by manufacturers are fairly large.
Though still firm, yarn prices are now about sta
tionary; but until Ju ly 1, when the quotations for the
raw material had ceased to advance, yarn prices were
constantly rising. However, the prices of yams did
not strengthen as rapidly as those of raw wool, and
at times yam quotations were more than 25 cents
less than the replacement costs as based on the raw
wool prices of that date. The trend of the market is
illustrated by the accompanying chart, which shows
the actual price changes of both weaving and knit
ting yarns. It is notable that whereas during 19 18
and 1920 the advances of weaving yarns were rela
tively much greater than those of knitting yarns, the
price increases of the past spring, although actually
greater for weaving than for knitting yarns, have
been relatively the same.
Collections are fair, but are becoming slower be
cause the finished product is not being consumed.
Washington have sold from 80 to 90 per cent of their
clip. But the Texas and New Mexico wools are not
selling rapidly, because the buyers and sellers cannot
reach an agreement as to prices.
Owing to a decreased demand from the woolen
mills, and an increased output by the worsted mills,
the supply of noils, which previously had been low,
has now increased. Evidence of this fact may be
seen in the reduction of more than 10 cents per
pound in the quotation on noils.
R aw W ool
The feverish buying which characterized the raw
wool market in May has subsided, and trading is now
extremely quiet. The present dulness is the natural
reaction from the rapid price rise during the period
of activity, and it has been accentuated by the fact
that manufacturers think it impossible to sell at a
profit goods made from wool bought at current quo
tations. These causes, together with the uncertain
tariff situation and the normal mid-season lull, re
sulted in a cessation of purchases at the moment
when manufacturers felt that the price was not likely
to advance further. No increase in business is ex
pected by the trade until there is a renewed demand
from worsted and woolen mills after the results of
the openings of the spring lines become known.
In spite of the slowness of the trading, prices have
not materially declined, but in all quotations there
have been some recesssions. That the price level has
not been lowered to a greater extent must be at
tributed to the inherent strength which the market
derives from insufficiency of the existing supplies to
meet a world-wide increase in consumption. Though
a real scarcity seems to exist when the world’s sup
ply and demand are considered, there are sufficient
quantities of wool in the hands of dealers in this dis
trict for business to be transacted if manufacturers
wished to order. In fact, since the market became
inactive, arrivals, both domestic and foreign, have
caused the stocks of dealers to increase. Fine wools
continue to be scarce, and some manufacturers, such
as those making light-weight worsteds, are finding it
more profitable to take their cheaply purchased wools
out of bond in the face of the emergency duty rather
than buy wools suited to their needs in the open mar
ket. Since approximately 86,000,000 pounds of
wool were held in bond on June 1, the effect which
the influx of this wool would have upon prices, in
case the duty were materially reduced, has added to
the uncertainty which will exist until the duty is ac
tually fixed. It is estimated that farmers in the
northwestern states of Idaho, Montana, Oregon and
S IL K
S i l k G oods
The trade in broad silks, which jobbers have car
ried on this spring with stocks of goods bought sev
eral months ago at prices considerably below the
present level, has at last been reflected in more or
ders for the mills. During June, the demand for
broad silks increased over that of the preceding
months this year, and it was 50 per cent better than
the demand of last June. White is the popular color.
However, this activity is confined largely to the
crepes and piece-dyed fabrics. Skein-dyed goods are
selling with great slowness, and silk men cannot re-
20
member a time when taffetas and messalines were as
little in demand as they are today. However, rib
bon manufacturers are somewhat more optimistic re
garding the future, for their business during June in
creased slightly. Orders continue to be of the “ fillin” type, approximately one-half of them being spot
orders and the rest for delivery in the near future.
It is significant that purchasers no longer place or
ders for six months in advance, but limit their future
buying to a period of one or two months.
Because of the slightly better demand, production
during last month somewhat increased, the present
percentage of activity averaging 50.
The supply
of crepes shows a tendency to exceed the demand.
Although a large proportion of the machinery is idle,
the shift from the light, soft fabrics of the past to the
heavy goods of the present has tended to prevent the
consumption of raw silk and the value of the finished
product from diminishing.
From the accompanying chart drawn from the
census figures, it is evident that although between
19 14 and 19 19 the number of plants increased 52
per cent, the number of wage earners increased only
l 7 per cent. This means that the average size of the
silk establishments decreased much more than can be
accounted for by the more efficient use of machinery.
Moreover, in the same period the amount of work
done on order increased almost 200 per cent. All
this points to a condition of affairs that detracts con
siderably from the stability of the industry.
On account of the lack of demand, stocks of finished goods in the hands of manufacturers have be
come very burdensome. Since the cheaply bought
supplies held by jobbers were adequate to supply the
retailers’ needs, producers’ stocks increased in spite
° I the curtailment of production. However, the
Quantity of raw silk owned by the mills is small, and
because quotations on the raw material have been
advancing during 1922, the prices of finished goods
have been somewhat strengthened. But the slight
!ucrease is not shared alike by the piece-dyed and
yarn-dyed silks, for when compared with the pro
duction costs, the prices of the latter are much the
lower.
Since the stocks of jobbers are moving, collections
arc improving, but current bills are being paid more
Promptly than accounts of long standing.
R a w S il k
When the silk year ended on June 30, prices of raw
Sllk were gradually rising, for the Japanese stocks
had been well liquidated. But this increase in quo
tations caused a lull in buying, which, after Ju ly
10, resulted in a decline equivalent to the previous
advance. In spite of the fact that manufacturers are
receiving orders from the jobbers, they feel that
prices obtainable for the finished goods will not jus
tify the purchase of raw silk at the high quotations of
early July, and they are filling present orders with
silk bought at more favorable prices. The recent
decline was the result of the cessation of buying
rather than of any inherent weakness in the market,
for the Japanese carry-over was small. It is of in
terest to note that the Bank of Japan has withheld ac
commodation to manufacturers of raw silk in order
to lower the price of cocoons, for it realizes that silk
exports will be materially decreased if the quotations
are too high.
As indicated by the accompanying chart giving a
comparison of the trend of raw silk prices with Bradstreet’s index, the price of silk has fluctuated widely
since 19 13 , being at present considerably higher.
That the American consumption had already fallen
off in June is shown by the following table compiled
by the Silk Association of America.
BALES
1921
1st of month
J u n e ...................
1922
Storage
Janu ary..............
February ...........
March ................
April .................
May ...................
J u n e ...................
Imports
Storage
end of month Consumption
20,541
26,172
15,521
31,192
24,804
31,139
28,928
22,077
19,268
20,826
40,177
19,950
18,641
21,438
34,842
35,598
31,139
28,982
22,077
19,268
20,826
26,895
33,842
22,107
25,546
24,247
33,284
29,529
As a result of heavier imports and smaller deliveries
to mills during the month, the silk in storage in
creased over 6,ooo bales.
Although the decreased consumption has made the
market inactive, the present level of prices is high,
and this is thought to be due to a real scarcity of raw
silk. An idea of the smallness of the Japanese carry
over may be gained from the following table:
has been most difficult to get any business at an ad
vance, though many manufacturers claim it is im
possible to manufacture at the old prices except at a
loss.
In some parts of the district a slight reduction in
wages has been made, but this is by no means gen
eral. Collections, except in a few instances, are re
ported as good.
Reporting firms in the Third Federal Reserve
District summarize their business for the past month
as follows:
OPERATIONS IN THE HOSIERY INDUSTRY
(In terms of dozens of pairs)
Number of firms reporting—36
June, 1922,
compared with
May, 1922
Firms selling to the wholesale trade:
Product manufactured during June
Finished product on hand June 30.
Orders booked during June..........
Season
Exports from Yokohama
Stocks (bales)
ending
to America
to Europe
Japanese
Cancellations received during June
June 30
(bales)
(bales)
Yokohama
Syndicate
Shipments during June..................
1918 .........
224,071
33,305
7,000
.........
Unfilled orders on hand June 30..
1919 .........
221,951
22,292
6,000
............
Number of firms reporting—13
1920 ............
241,418
12,079
23,000
............
Firms selling to the retail trade:
1921 .........
162,554
18,899
20,000
43,000
Product manufactured during June
1922 ............
279,200
30,700
8,000
4,500
Finished product on hand June 30.
Orders booked during June...........
There is little actual information regarding the exact
Cancellations received during June
Shipments during June..................
amount of silk in Japan. But the heavy stocks held
Unfilled orders on hand June 30..
last year by the Imperial Raw Silk Syndicate have
been gradually absorbed by a rising market at a con
siderable profit to the Syndicate. The liquidation of
these stocks removes some of the uncertainty which
formerly existed as regards prices.
— .8%
— 3.6 “
+10.4 “
—45.3 “
+ 6.1 “
—16.4 “
-)-l3.3%
— 8.4“
-(-14.8“
—16.9“
-j- 8.7“
—
(-19.8 “
June, 1922,
compared with
June, 1921
+19.3%
+28.1 “
+10.1 “
+25.2 “
+ 6.7 “
+31.2%
+38.3 “
+
.6 “
—29.2
UN D ERW EAR
The event of major importance in the underwear
trade has been the opening of Balbriggan and ribbed
lines for the spring of 1923. Before the opening a
H O S IE R Y
conference of manufacturers and jobbers was held,
A decided reduction in new business during July at which the manufacturers explained that owing to
is noted in most lines of hosiery. Of full-fashioned the increased cost of yarns it would be impossible to
silk hosiery some mills had previously sold their out sell their products at the same prices as were made
put for the balance of the year, and all had a con at the opening last year. To this the jobbers replied
siderable portion of their production for the next that they considered it an extremely poor time to inthree months under contract. This branch of the crease prices and that they believed the consumei
industry is therefore not affected by the present dul- would not pay an advance. The result appears to have
ness. A somewhat similar condition exists in those been that an increase was made which was so small
mills making woolen hosiery, and wool and artificial that it could be absorbed by the jobber and the retailer
silk mixtures. Sales of these had been so large ear and not passed to the consumer. On this basis, it lS
lier in the year that many factories are booked to reported that contracts of considerable size were
capacity for August, September and October deliv placed, and the opening proved much more auspicious
ery. Manufacturers of seamless silk and artificial than was thought possible.
silk hosiery are now feeling the reduced demand most
Orders for fall weights continue to be received by
keenly, because few of them had received any con the mills, and prices for these are firm and in most
tracts except for delivery within six or eight weeks, cases somewhat above the opening prices of laS*
and many have now almost finished filling these and January.
are curtailing production.
The following table shows the output of the report
Prices for hosiery show very little change. The ing manufacturers in the Third Federal Reserve
advance in yarns has stopped all reductions, and it District
22
C O N D IT IO N S IN T H E U N D E R W E A R IN D U S T R Y
(In terms of dozens)
Number of reporting firms—IS
June, 1922,
compared with
May, 1922
Summer underwear:
Product manufactured during June
Finished product on hand June 30
Orders booked during June..........
Cancellations received during June
Shipments during June..................
Unfilled orders on hand June 30..
—40.4%
-f- 8.3“
-j-32.8 “
............
—32.1 “
-(-51.7“
June, 1922,
compared with
June, 1921
—55.0%
+13.8
—56.5 “
-4 7 .0 “
Number of reporting firms—8
Winter underwear:
Product manufactured during June
Finished product on hand June 30
Orders booked during June...........
Cancellations received during June
Shipments during June.................
Unfilled orders on hand June 30..
LEATH ER
-|-18.0%
—
j-23.2 “
-j-89.1 “
............
+ 65.6“
+10.4 “
F L O O R C O V E R IN G S
The majority of the mills making Wiltons and
Axminsters have booked orders sufficient to enable
them to operate at full capacity for the balance of the
season. Manufacturers of velvets and tapestries,
however, are not so fortunately placed; of these,
some report that their plants are working at capacity
and are sold ahead, but others state that since the first
of July business has slackened considerably and that
production will be curtailed unless there is an early
change in the situation. Although this diminution
in orders is considered to be largely seasonal, manu
facturers appear to be loath to make merchandise for
stock. Wool fibre goods show little activity, and
plants in which they are made are producing only a
small part of their possible output.
Skilled labor is reported as being scarce, and the
men now seeking employment are for the most part
unsatisfactory. Weavers are on strike in two of the
Philadelphia mills, but it is said that a number of
fhem have already returned to work.
Prices of rugs and carpets are generally unchanged,
but raw materials continue to advance, and cotton
yarn is 8o per cent higher than at the opening of the
season.
Manufacturers of linoleum are still operating at
Opacity, and are well supplied with orders. Since
the first of Ju ly the orders received have been fewer
than those of a month ago, but this is not unexpected,
as July is usually one of the smallest months in the
year in this industry. Some manufacturers have
0rders on hand sufficient to keep production at the
maximum until well into the autumn, and nearly all
are now behind in deliveries. A s with carpets, prices
° f raw materials are higher, but finished products
are unclianged.
The labor turnover is reported as increasing, be
cause of the growing activity in other lines, particu
larly the building trades. In these a shortage of
labor exists, and this is causing certain building
firms to offer very attractive wages in an attempt to
secure the necessary men.
In all lines of floor coverings collections are good.
S
hoes
Orders for shoes for early autumn delivery are
now being placed with considerable freedom, and
factories in this district are better supplied with busi
ness than they have been for several months past.
Prices have become stable, the decline has ceased, and
in some cases advances have been paid. The fear of
style changes is still causing some buyers to hold
back, but now that the big event of the season for
which many were thought to be waiting is a thing of
the past— the National Shoe and Leather Exposition
and Style Show, at Boston— there can be little left
to be shown in the way of novelties. A great variety
of two-color effects in pumps,— black, brown and
gray, being the most used colors,— appear at the
moment to be the leaders, but many plainer shoes of
black or brown in calf and kid leathers are also beinpc*>
shown. High boots, which it is predicted will come
back with the longer skirt, have not so far been
ordered in any quantity.
The Department of Commerce reports that 26,901,540 pairs of shoes were manufactured during
May, as compared with 27,193,801 in April and 29,686,011 in March, the latter being the largest output
for this year. The strikes that for several months
have closed the factories in Rochester and Cincinnati
continue, and production in those centers is very
small. Production of shoes in the Third Federal Re
serve District during June, as shown herewith, de
creased 8.6 per cent as compared with that in May,
1922. This, however, is quite usual at this season of
the year. In comparison with production in June,
19 21, the decrease is 14.7 per cent.
CONDITIONS IN THE BOOT AND SHOE INDUSTRY
(In terms of pairs)
Number of reporting firms—46
Production ...................................
Shipments .....................................
Orders booked ............................
Orders p n hand............................
..
..
..
..
..
Stocks on hand.............................. . .
Number of operatives on payroll.. . .
June, 1922,
compared with
May, 1922
June, 1922,
compared with
June, 1921
— 8.6%
— 9.8 “
+ 17 .0 “
+ 15.0“
—33.5 “
+ 1.0“
+ .4 “
-14 .7%
— 6.3 “
+25.3 “
—35.1 “
+54.6 “
— .6 “
The Bureau of Business Research of the Harvard
University School of Business Administration has
published the result of its exhaustive investigation
into the cost of carrying on business in shoes at retail
and finds that the operating expenses in 1921 were
27.8 per cent of sales.
Retail sales in this district during June show a gain
of .7 per cent over those of the previous month and,
except in sections suffering from strike conditions,
must be considered as satisfactory. Stocks continue
to decline and at the end of June, 1922, were 14.1
per cent less than at the same time in 19 2 1.
R E T A IL S H O E T R A D E
(In terms of dollars)
1. N et S a l e s :
(a) June, 1922, as compared with May, 1922... -)- .7%
(b) June, 1922, as compared with June, 1921... — 7.2“
(c) Jan. 1 to June 30, 1922, as compared with
Jan. 1 to June 30, 1921.......................... —13.3“
2. Stocks (selling price) :
(a) June, 1922, as compared with May, 1922...
(b) June, 1922, as compared with June, 1921__
3. Rate
of
— 7.9%
—14.1 “
Turnover (times per year based on
cumulative period) :
(a) Jan. 1 to June 30, 1922 .................................
(b) Jan. 1 to June 30, 1921.................................
2.9
3.1
Number of stores reporting above items:
la ---- ....26
lb .... ....26
lc ---- ....26
2a.... ....22
2b.... ....22
3a---- ....22
3b.... ....16
L eath er
The change for the better in the entire leather trade
noted by us last month is now proved to have been
the opening of a season of considerable activity.
Sales have continued to increase in both domestic
and foreign markets, and prices have either advanced
or are being maintained more firmly. In heavy
leathers, all lines are higher in price than they were a
month ago, from two to three cents per pound being
the average increase. With the advancing markets,
sales have increased, so that although stocks in some
cases are heavy, the trade as a whole views the situa
tion much more optimistically than at any time for
some months. Leather belting sales are showing a
gratifying increase each month, and although the
volume of business is not yet normal and stocks are
still heavy, prices are much more firmly held, and
the improvement in general business is shown in the
purchase of belting by many different industries.
Calf leather, especially in the heavier weights
suitable for men’s shoes, is in much better demand,
sales are larger, and prices have advanced from 5 to
8 per cent. Browns are selling particularly well, but
the orders for black also show a considerable increase.
Kid leather, which up to last month was in very poor
demand, has had a remarkable recovery both in the
domestic and foreign markets, and stocks are re
ported to have been reduced materially. Many tan
ners are oversold on certain grades, and production,
which had been decreasing because of the poor de
mand and the heavy stocks, has begun to increase.
Those tanners who had hesitated to purchase raw
stocks for importation have been obliged to buy quite
heavily from dealers’ spot stocks in order to meet the
increased business offered them. Patent leather sales,
although good, have not increased.
Chart number 1 shows the course of prices in three
standard leathers since January, 1916. Chart num
ber 2 illustrates the fact that exports are returning to
more nearly normal conditions. The total value of
leather exports in May, 1922, was $4,369,35 L an
increase of $825,169 over the previous month, and
the largest of any month since September, 1920. In
quantity, the shipments during May amounted to
about 89 per cent of the average monthly shipments
for three years prior to the war.
Chart number 3 indicates the price fluctuations
in packer heavy native steers, Chicago City calf
skins and Patna goat skins from the beginning of
19 16 to Ju ly 1, 1922. A t the latter date prices for
all three of the above standard selections were very
little above the lowest during this entire period of
seven and a half years.
PAPER
The demand for paper has continued its upward
trend, and the majority of firms report increased
business. Some, however, have experienced the usual
seasonal decline, although to a less degree than was
anticipated. Demand for the coarser grades of wrap
ping and kraft paper is still erratic, but it is showing
a gradual improvement. The better grades of fine
papers are in excellent request, and several houses
report an increase in sales of from 5 to 10 per cent
over June sales, and an increase of from 30 to 50
per cent over those of Ju ly a year ago. Newsprint is
still the most active among papers and the National
Association of Paper Manufacturers reports that the
mills making it are operating at 100 per cent capacity,
Chart Number Two
H id e s
and
A Comparison of th e T rend
OF
op
*
•;\
:
:
2£0
5
- i
r
•
•
1
•
•
:
:
»
•:
1.50
£00
pir a
Skin
.50
•
•
:
t
•
i n
\
•
i
: * ::
1.00
.
/
X
J
• ~ 1
•
•
•
♦
•
hic ago Cr d
•
kim
•
C a l i•
•
p*
C
t
1.00
h
S
POUNDsl
f
POUND
S
^Pa
tma
: Go at S ki M 3
•
j/ '
r
#
•
r
v
1 *
'•A
M
n
f\
1
y1
V
.50
Silf
3ackeg
H
S
eavy
teeg( H
iA T I V E
P E ft POUND
___ .....
1916 1917
id e
6
1918 1919 1920 1921
Sousa: •Cons
Chart Number Three
25
Dollars
pep
1
per cent
per cent
per cent
per cent
POUND
SKIN
~
attle hides—decreased .......................................... 3.4
G ,e.eP anc* lamb sk*n—decreased............................5.9
G 1 and kid—increased............................................6.5
a* and kid—increased........................................... 4.6
Dollars
per
op
P rices
Packer H eavy Na t iv e S teer H ides ,
C hicago C it y Half A dkins ,
and Patna G oat Skins
S k in s
During the past month prices for all kinds of hides
and skins have steadily advanced. This has been
caused by the increase in the demand for all leathers.
Tlie stock of native hides has been reduced to a very
low point by purchases of both packer and country
hides. Under such circumstances the strength of the
Market is readily understood, and prices are being
easily maintained, even though the advance has been
h°th rapid and of good proportion. Seventeen and
a half cents per pound has been paid for packer
heavy native steers, and the asking figure is 18 cents.
Calf skins have risen even more rapidly than hides,
and 22 cents is asked in Chicago for best selection.
Goatskins have been purchased freely both from
stock in warehouse and for shipment from abroad,
and prices have advanced from 10 to 20 per cent
above those of early June.
The report issued by the Department of Commerce
shows that changes in the stocks of raw hides and
skins during May were as follows:
of
1922
1923
k in
as compared with a general average throughout the
industry of 92 per cent.
There is a belief on the part of some wholesale
distributors that retailers and printers are at present
selling largely from stocks which they have on hand,
and are refraining from buying now in order that
they may stock up at the lower prices which they
anticipate. Wholesalers are of opinion that the first
advance in prices will cause heavy purchasing and
seriously jeopardize prompt deliveries.
The scarcity of coal has not materially affected
production as yet. Indeed, in spite of the scarcity,
several manufacturers have paid the higher prices and
increased their output, in expectation of an increase
in the price of paper. Several manufacturers to date
have been seriously inconvenienced by the strike of
railroad employees; others do not anticipate any
serious stoppage of shipments in the immediate
future.
Foreign competition, which was the bugbear of
the paper industry several months ago, though still
of some importance, has almost disappeared. Canada,
of course, will always be the source of a large amount
of our pulp and newsprint, and importations from
that country have been increasing. But from Europe,
manufacturers anticipate relatively little competition
that will be effective. There have been several large
importations of newsprint, and also of kraft, from the
Scandinavian countries and more recently from Fin
land, but deliveries are so uncertain that up to the
present time the effect on the general market has been
of slight importance. Casein, used in coated book
papers, has advanced five cents a pound, and in con
sequence, this grade of paper has risen one-quarter
cent a pound.
Newsprint has advanced $5 a ton within the past
month. Stocks of paper held by mills and wholesalers
are normal throughout the industry, but those of the
majority of the retailers and printers are low. Can
cellations of present mill quotations have been
general, and manufacturers have stopped accepting
orders for future delivery which will require over
thirty days to bill. This leaves them in a position to
adjust prices without long notice.
The labor situation is on the whole satisfactory,
though some difficulty has been experienced during
the past month in securing competent workers at
present wages. Wages in this section are reported
to be lower than those paid in several western cities.
Collections have failed to show any improvement,
and some manufacturers note a slight decline.
PAPER BO XES
Opinions among manufacturers vary as to the
situation in the paper box trade, but all are agreed
that a more wholesome atmosphere pervades the in
dustry. Severe competition has been the rule in late
years, especially since the war. Prices have been
quoted which could not under any circumstances net
the manufacturer a profit, and both large and small
manufacturers have been compelled to take severe
losses, according to the trade. But in the last six
wreeks manufacturers have much more generally come
to accept the view that prices must be maintained at
levels which will assure a reasonable profit, and the
result is that the severe price cutting of the last ten
months is on the decline. Moreover, there has been
a rather widespread increase in the business in
specialties, and the decrease reported by several firms
engaged in the general trade may be accounted for
by seasonal conditions.
Because of the increase in the price of raw ma
terials, purchasers of paper boxes are entering the
market more actively, and orders, though still small,
are becoming more plentiful. Chip board, the staple
indicator of prices in the industry, has advanced $5 a
ton in the last six weeks and is now variously re
ported as selling at from $37.50 to $40.00. The
price of jute container liner has increased approxi
mately 10 per cent during the same period. Despite
the fact that the summer months are very poor ones
for the manufacturers of candy boxes, several firms
report that they are working on future orders for the
fall and holiday trade.
Stocks of raw materials, though higher, are plenti
ful at the new prices, and no manufacturer reports
difficulty in securing an adequate supply. This 15
largely accounted for by the fact that during the war
and immediately after its close the productive capac
ity of the country was very largely increased.
There is some shortage in the supply of skilled
workers, but this is an item which varies with the
locality, and labor conditions in general are satis
factory. The bulk of the industry still pays wage5
almost as great as those it paid during the war.
Collections remain unchanged and are described
as being from fair to good.
TO BACCO
C ig a r s
26
There is considerable difference of opinion among
cigar manufacturers as to conditions in the industn
at the present time, but the prevailing impression is
that business is showing a continuation of the June
increase. The larger firms, and particularly those
located in Philadelphia and having a national dis
tribution, report that their business has shown a de
cided improvement. Demand during the summer
months is stimulated by a large vacation trade in the
better grades of cigars. Manufacturers whose busi
ness is largely in the coal mining districts report a
falling off in orders, and those catering to the steel
and farming sections report an increase. Orders are
still very largely for immediate delivery, but there is
a growing tendency on the part of jobbers and whole
salers to order ahead and to return to the old practice
of placing orders for regular weekly shipments.
The larger companies have increased operations
decidedly and are now running at from 80 to ioo per
cent of capacity. Three firms report the opening of
a total of six new plants during the last month.
Operations by smaller companies vary from 20 to 70
per cent of capacity, and average about 50 per cent.
Prices of cigars have not changed within the last
month, but two firms report that they plan to manu
facture a five-cent cigar. Prices of domestic filler
and wrapper tobaccos have declined slightly, but
foreign wrappers have increased. Stocks of finished
cigars are almost universally light, as most manu
facturers, though keeping apace with demand, refuse
to go ahead of it. Stocks of raw materials are
adequate, and the lower grades of domestic tobacco
in particular are very plentiful.
Skilled labor is becoming scarcer. A few increases
m wages are reported, but they do not in any case
amount to more than $ 1 a thousand.
Collections are satisfactory, but show little if any
Jmprovement; and some firms find them slower.
L e a f T obacco
No changes of importance have occurred in the
domestic leaf market within the last two months.
The demand for old tobacco of the 1920 and earlier
Crops is good, but the supply of this is limited, and
fbere have been no large purchases. The 1920 crop
ls almost entirely out of the growers’ hands, with the
exception of a certain amount packed by a few co°perative farmers’ organizations.
During the past month, there has been a drop in
Price of from two to four cents a pound. For
standard Pennsylvania tobacco the price at present is
around 22 cents. This is in contrast to the increase
sho\vn by Java and Sumatra tobaccos, which have
advanced sharply above the prices that prevailed a
year ago. Both Porto Rico and Havana tobaccos,
which dropped earlier in the year, have also stiffened.
The 1922 crop of Pennsylvania tobacco is reported
to be in excellent condition, and bids fair to be of
much better quality than last year’s. It is still too
early to gauge accurately the size of the crop, but
reports received from the tobacco growing sections
show that a larger yield per acre is in prospect. The
Government forecast, however, predicts that in
Pennsylvania, Wisconsin, and the New England
states, the crop will be smaller than in 19 2 1. This
is to be accounted for by a decrease in the acreage
planted.
A G R IC U L T U R E
Weather conditions during the months of June
and Ju ly have on the whole been very favorable
throughout the district, and crops have made splen
did progress. Some sections have suffered from too
much rain, but the damage done has been very small,
although some difficulty was experienced in getting
the wheat harvested and a portion of the hay was
put up under conditions not conducive to the best cur
ing of the product. Agriculturists are of the opinion
that if early August brings settled weather condi
tions, the potato and other crops will escape without
any appreciable amount of damage due to rot.
The Bureau of Statistics of the Pennsylvania De
partment of Agriculture estimated the condition of
the wheat crop of the state on July 1 to be 96 per
cent of normal, and indicated a yield of 19.2 bushels
per acre and a total production of 25,328,600 bush
els, as compared with 25,271,600 bushels last year,
and with an average production of 24,079,87obushels
for the past ten years. Lancaster County reported
on July 10 that though none of the wheat had been
threshed at the time, their inspection indicated that
the crop in that particular district would be about 10
per cent less than normal, owing to disease and im
perfect pollination. The average estimate of coun
ties reporting throughout the district was between
90 and 100 per cent of normal.
According to one agriculturist, this spring has been
the best for the hay crops within the last ten years.
Conditions throughout the district seem to be un
usually good, and excessively heavy yields of clover,
timothy, and alfalfa are reported. Corn has shared
the benefits of the excellent growing weather, and
most districts report their stand to be almost uni
formly good. In some places, however, there has
been such an excess of rain as to drown out the com
in the lower levels. The condition of the Pennsyl
vania crop on July i, as indicated by the State De
partment of Agriculture, was 95 per cent of normal,
but as there is an increase of over three per cent in the
area planted this year, and as an average of 45 bush
els per acre is predicted, a total production of
60,142,500 bushels is looked for. Oats, rye, and
buckwheat are all in good condition, and satisfactory
yields are anticipated. The potato crop is large this
year and is well matured. A tendency toward rot
ting, however, has been noticed in some localities,
which is due to the long periods of heavy rainfall.
The tobacco crop of the district is at least 10 per
cent ahead of its normal growth for this season of
the year, and prospects are excellent. The fruit crop,
however, is only fair. Both the peach and apple
crops are short, and the prospects are for a yield of
from 50 to 70 per cent of normal. This represents a
great improvement over last year, but conditions in
the industry are still not entirely satisfactory. The
berry crop has been good this year, and prevailing
prices have on the whole been higher than they were
a year ago.
Vegetables are well advanced, and though it is
still too early to predict the yield of some of the
trucking operations, the condition of the crops at
this time gives every evidence of an excellent return.
Both wholesalers’ and canners’ stocks are low, and
those canneries which have opened report that they
are paying higher prices than last year. The tomato
growers were under a disadvantage early in the
month, when their product had to compete with large
shipments of southern tomatoes which arrived on the
New Y ork market far behind schedule. Prices were
much lower than a year ago, and the New Jersey
product at one time sold on the New York market
for from $2 to $2.50 a crate, as compared with prices
of from $3.50 to $4 last year. This, however, was
only a temporary derangement, and prices have re
cently stiffened.
Because of the long rainy spring, plant pests are
slightly more numerous this year than last. Scale
and scab have been causing some damage to the apple
crop, and rust and mould to the wheat crop. The
Colorado potato beetle has also made its appearance
in great numbers this year and caused serious dam
age in some sections.
Prices of butter, eggs, and poultry have held up
well throughout the past year, and farmers, finding
greater profits in these lines, have begun actively to
develop them. The Pennsylvania Department of
Agriculture reports that the number of laying hens
is approximately two per cent greater than usual,
and that the number of chicks hatched is over four
per cent greater than normally. Government sta
tistics compiled by the Bureau of Markets show radi
cal fluctuations in the price of farm products during
the first six months of 1922, and a decided decline
since July, 19 2 1, in all products except potatoes. It
is to be noted, however, that there has been substan
tial recovery since January, 1922.
ESTIMATED VALUE OF FARM PRODUCTS IN
PENNSYLVANIA
July,
June, May,
Apr., Mar.,
Feb.,
Jan.,
July,
1922
1922 1922
1922
1922
1922
1921
1922
Wheat ......... $1.09 $1.25 $126 $1.25 $122 $1.07 $1.04 $1.29
C o rn ..................71
.69 .65
.64
.60
.58 .58 .76
R y e ....................91
.94 .90
.92
.85
.92 .87 1.13
O a ts .................. 51
.51 .50
.48
.46
.47 .46 .55
Buckwheat . 1.01
.96 .81
.86
.81
.87 .79 1.07
Potatoes . . . 1.28 1.13 1.23 1.23 1.30 1.32 124
.55
Hay ........... 15.70 18.00 16.75 16.70 16.25 15.50 15.00 15.60
E g g s..................26
2 4 23
22
.34
.42 .55 28
B utter................36
.38
.41
.39
.41
.43 .49 .35
Source, Weather Crops and Markets.
A very noticeable improvement has occurred in
the quality of the live stock imported and produced
within the district during this last spring. Several
large shipments of thoroughbreds have been noted,
and especially in the dairy industry the quality of the
herds is showing rapid improvement. This move
ment in the interest of better stock has been fostered
in many communities by the publicity and financial
assistance given by the banks. Pig raising clubs
throughout the district have done much to increase
and foster the production of hogs, and several coun
ties very distinctly show the impress of this move
ment both in the number and quality of their droves.
Sheep are on the decline in some counties because of
unfavorable conditions and the ravages of dogs, but
over a period of the last three years there has been
relatively little change in their number.
Interesting statistics compiled by the United
States Department of Agriculture and the New Jersey Department of Agriculture, show that though m
the country as a whole there was a radical decline m
the number of beef cattle, sheep and swine between
the years 1920 and 1922, in New Jersey the only de
crease was in the number of swine. It is interesting
further to note that in New Jersey, the average
price per head of all varieties of farm animals was
considerably higher than the same averages for the
whole country. This is in part due to the excellent
quality of the New Jersey stock and in part to the
advantageous position of New Jersey in relation to
New York and Philadelphia markets.
STOCKS OF FARM ANIMALS
Compilation by the United States and New Jersey Department
of Agriculture
N ew J ersey
Value per
head
Number
U nited S tates
Value per
head
Number
Horses. .Jan. 1, 1922
1921
1920
72,000
72,000
73,000
133.00
144.00
153.00
19,099,000
19,208,000
19,766,000
70.48
84.31
96.51
Mules ......... ...1922
1921
1920
6,000
6,000
6,000
151.00
161.00
172.00
5,436,000
5,455,000
5,427,000
88.26
116.69
148.42
Milk Cows . ...1922
1921
1920
151,000
148,000
148,000
86.00
110.00
128,00
24,028,000
23,594,000
23,722,000
50.97
64.22
85.86
Other Cattle ...1922
1921
1920
31,000
30,000
31,000
37.60
47.70
55.10
41,324,000
41,993,000
43,398,000
23.78
31.36
43.21
Sheep ......... ...1922
1921
1920
10,000
10,000
10,000
7.40
10.50
11.00
36,048,000
37,452,000
39,025,000
4.80
6.30
10.47
Swine ......... ...1922
1921
1920
132,000
126,000
139,000
17.00
20.00
25.20
56,996,000
56,097,000
59,344,000
10.06
12.97
19.07
Source, Department of Agriculture.
The accompanying chart shows the relative prices
of hogs, sheep, and cattle as reported by the United
States Department of Commerce and indicates their
fluctuations during the past three years.
This year has been most favorable for dairying.
Pastures are in good condition, and the yield of milk
has been high. Price agreements have held up quo
tations, and with the decline of the seasonal surplus
the milk market will be in balance again. Present
efforts of the distributors are bent on maintaining
consumption throughout the summer vacation
months. Prices in New York have advanced a
cent a quart to the producer, but the Philadelphia
market, which was higher than the New York mar
ket, has remained stationary, and prices in the two
markets are now approximately equal. Stocks of
butter are low, but production is increasing. Owing
to an increased demand in Europe, there have been
fewer importations into the United States, and prices
have advanced two cents a pound during the last
month.
29
RESOURCE AND LIABILITY ITEMS
of Member Banks
In Philadelphia, Camden, Scranton and Wilmington
(000’s omitted)
CHARGES TO DEPOSITORS’ ACCOUNTS
other than banks’ or bankers’, as reported by Clearing Houses
July 12,1922
June 14, 1922
July 13, 1921
At the close of business
July 12, 1922 June 14,1922 July 13, 1921
33,209,000
Altoona................ 33,347,000 33,385,000
4,096,000
4,693,000
4,078,000
Chester................
7,765,000
7,447,000
6,853,000
Harrisburg...........
4,791,000
4,826,000
4,962,000
Johnstown............
5,268,000
5,099,000
4,390,000
Lancaster.............
Philadelphia......... 324,151,000 320,087,000 289,668,000
7,994,000*
7,998,000*
10^855*000
17,474,000
12^920,000
Scranton..............
10,552,000
10,701,000
Trenton................ 11,992,000
8,578,000
7,046,000
Wilkes-Barre........
6,808,000
4,263,000
4,295,000
4,380,000
Williamsport........
6,998,000
7,132,000
8,098,000
Wilmington..........
3,428,000
4,368,000
3,717,000
York....................
Loans and discounts:
Secured by U. S. securities
Secured by other stocks
and bonds.................
All other.......................
Investments:
United States bonds. ...
U. S. Victory notes.......
U. S. Treasury notes....
U. S. certificates of in
debtedness .................
Other bonds, stocks and
securities...................
Totals............... 3398,819,000 3387,993,000 3364,908,000
*Not included in total.
316,032
322,939
369,410
225,121
315,246
219,546
315,186
192,948
370,144
54,467
8,523
19,708
54,814
11,440
15,402
46,993
6,330
9,271
10,796
6,353
7,976
182,953
178,268
157,711
Total loans, discounts
and investments.... 3832,846
Demand deposits............
684,436
51,086
Time deposits.................
Borrowings from Federal
13,442
Reserve Bank..............
3823,948
667,954
50,324
3860,783
625,106
41,316
14,811
76,504
BUSINESS INDICATORS
STATEMENT
Federal Reserve Bank of Philadelphia
(000’s omitted)
Percentage Increase or
decrease compared with
Ju!yl7, 1922
RESOURCES
July 12,1922 June 14,1922 July 13, 1921
3211,677
7,533
3221,144
7,739
3206,565
3,019
3219,210
Total reserve..........
Discounts—secured by U.
29,628
S. securities.................
9,859
Discounts—all other.......
19,711
Purchased bills................
34,491
U. S. securities................
3228,883
3209,584
32,567
9,287
19,857
32,123
83,388
33,055
2,538
28,457
393,689
50,123
1,935
393,834
55,304
2,018
3147,438
56,826
1,492
3364,957
3380,039
3415,340
Gold reserve...................
Other cash......................
Total earning assets..
Uncollected items...........
All other resources..........
Total resources........
LIABILITIES
38,991
17,945
4,440
107,305
1,171
38,613
17,564
1,200
101,613
1,417
Total deposits.......... 3109,100
Federal Reserve notes....
180,087
Federal Reserve Bank
5,138
notes...........................
42,329
Deferred availability items
1,355
All other liabilities..........
3112,916
178,776
3104,230
223,653
5,633
54,427
1,351
9,345
48,487
3,448
3380,039
3415,340
Total liabilities........
3364,957
3663,090,000
681,635,000
Year ago
+ -3% - 1.5%
+ 2.1% + 12.6%
97.3%
99.0%* 111.2%*
338,181,198
77.3%
4^ %
4-4^%
-2 0 .7 % -6 7 .5 %
80.5%* 65.4%*
sy2%*
4M%*
+4 H%*
Percentage Increase or
decrease compared with
June, 1922
Previous
month
Year ago
Bank clearings:
In Philadelphia........ 31,953,627,000 + 6.9% + 10.4%
Elsewhere in district.
117,393,641 -5% + 4.6%.
Total.................... 32,071,020,641 +6.4% + 10.1%
Building permits,
Philadelphia............
13,190,220 +48.7% + 187.5%
Post Office receipts,
Philadelphia............
1,281,446 - 3.8% + 10.0%
Commercial failures
in district (per
71*
37
Dun’s).....................
87*
Latest commodity in
dex numbers:
Annalist (food prices
only)....................
193.672
+5.8% + 15.5%
173 741
Dun’s......................
+2.2% + 8.7%
Bradstreet’s .............
12.1069 + 1.7% + 12.8%,
•Actual figures.
July 12, 1922 June 14,1922 July 13, 1921
39,003
17,945
1,703
106,053
1,344
Capital paid in................
Surplus...........................
Government deposits. . . .
Members’ reserve account
Other deposits................
Philadelphia banks:
Loans......................
Deposits..................
Ratio loans to de
posits ...................
Federal Reserve Bank:
Discounts and col
lateral loans.........
Reserve ratio.............
90-day discount rate..
Commercial paper___
Previous
month
_
30
COMPILED AS OF JULY 24, 1922
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31
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