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THE BUSINESS REVIEW
THIRD FEDERAL
PHILADELPHIA
RESERVE DISTRICT
AUGUST i, 1914
By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent
FEDERAL RESERVE BANK of PHILADELPHIA
BUSINESS CONDITIONS IN THE UNITED S T A T E S
Production o f basic commodities and factory employ
ment showed further large declines during June. Trade,
both at wholesale and retail, also decreased during the
month and was in smaller volume than a year ago.
The Federal Reserve Board’s index o f production in
basic industries, adjusted to allow for seasonal varia
tions, declined about 9 per cent
Production
in June to a point 22 per cent
below the level of the first two
months of the year. Iron and steel and cotton manu
facturing industries continued to show the most marked
curtailment o f activity, and decreases were general in
other industries. Factory employment decreased 3 per
cent in June, the metal, automobile, textile, and leather
mdustries reporting the largest reductions in forces.
The value of building contracts awarded in June was 8
Per cent smaller than in May, though 4 per cent larger
that in June of last year.
The condition of the corn crop on July 1, as reported
by the Department of Agriculture, was the lowest on
record for that date and indicated a probable yield
about 500,000,000 bushels less than last year. The con
dition of the cotton crop was reported less satisfactory
than month earlier, while forcasts for wheat and oats
were larger than in June.
Railroad shipments decreased in June and were about
15 per cent less than a year ago, owing to smaller load
ings of all classes of freight exTrade
cept grain and livestock. Whole
sale trade showed a further
slight decline in June and was 11 per cent smaller than
a year ago. Sales of hardware, drugs, shoes, and dry
goods decreased, while sales of groceries and meat
increased slightly. Sales of department stores and
chain stores showed more than the usual seasonal de
crease during June and were smaller than last year.
Mail order sales in June showed less than the usual
seasonal decline and were larger than a year ago. De
partment stores further reduced their stocks of mer
chandise and slightly increased their outstanding orders.
*n dex o f 22 b a s ic c o m m o d it ie s co r re cte d fo r season a l va ra tion (1919100). L a test figu re— J u n e , 94.
In d ex o f U. S. B ureau o f L a b or S ta tistics (1913-100, b ase a d o p te d b y
B u re a u ). L a test figu re— J u n e , 145.
2
T he
B usiness
A ugust
R eview
FACTORY
EM PLOYM ENT
PER CENT
PE R CENT
ID O
1PU
to o
- \
50
0
0
1919
W e e k ly
figu res
fo r
12
F ed era l R eserve
J u n e 23.
B a n k s.
L a test figu re—
Wholesale prices, as measured by the index of the
Bureau of Labor Statistics, declined more than 1 per
cent in June to a level 5 per cent
Prices
below the high point for this year.
Prices of all groups o f commodi
ties, except clothing, showed declines and decreases
were particularly large for building materials. During
the first three weeks of July quotations on wheat, corn,
and hogs advanced sharply, while prices of sugar, cotton
goods, and iron and steel products were lower.
Commercial loans at member banks in leading cities
during June and the first two weeks o f July remained
at a relatively constant level, conBank credit
siderably below the peak reached
in April, while investment hold
ings and loans secured by stocks and bonds increased
rapidly and carried total loans and investments to the
high point for the year. Demand deposits, owing
In d ex o f 33
1920
1921
1922
m a n u fa c t u r in g in d u s trie s
J u n e , 90.
1923
(1919-100).
1924
L a te st figu re—
partly to the growth of bankers’ balances at financial
centers, advanced to a record level.
At the reserve banks there was a continued decline
in discounts and an increase in purchases of govern
ment securities in the open market. As a consequence,
total earning assets in the middle of July were only
slightly less than at the beginning of June. Member
bank reserve balances increased rapidly, reflecting a
return flow of currency from circulation and further
imports of gold; total deposits at the reserve banks on
July 16 were larger than at any time since the organiza
tion of the system.
Money rates in July were comparatively steady but
continued to show a somewhat easier tendency. Dis
count rates at the Federal Reserve Banks of Kansas
City and Dallas were reduced during July from
to
4 per cent.
TABLE OF CONTENTS
PA G E
Agriculture .................................................
30 Employment and wages .........................
Automobiles .................................................
18 Financial conditions ..............
Bankers’ acceptances ............................
6
Floor coverings ........................................
Building ......................................................
14 Flour ..........................................................
Business indicators ....................................
32 Foreign exchange ...................................
Cement ..........................................................
16 Groceries, wholesale ..............................
Cigars ...........................................................
30 Hardware, wholesale ..............................
Clothing, men’s wear .................................
23 Hides and skins ......................................
Coal, anthracite .....................................
19
Hosiery .......................................................
Coal, bituminous .......................................
19 Iron foundries ..........................................
Coke .............................................................
20 Iron and steel ........................................
Commercial paper ...................................
6
Jewelry, wholesale .................................
Cotton goods .............................................
21
Leather ...........
Cotton, raw .................................................
20 Lumber .......................................................
Cotton yarns .............................................
21
National summary ...................................
District summary .....................................
3
Paint ..........................................................
Drugs,, wholesale ........................................
11 Paper .........................................................
Drygoods, wholesale ..................................
10 Paper boxes .............................................
Electrical supplies, wholesale .................
11 Paper, wholesale .....................................
PA GE
3
5
26
12
8
12
11
27
25
18
16
10
27
16
1
15
29
29
11
PAGE
Retail trade ..............................................
Savings deposits ......................................
Securities ...................................................
Shirts .........................................................
Shoes .........................................................
Shoes, wholesale ......................................
Silk goods ................................................
Silk, raw ....................................................
Steel foundries ..........................................
Sugar, raw ................................................
Sugar, refined ...........................................
Summary, district ...................................
Summary, national .................................
Synopsis of business conditions ..........
Underwear ................................................
Wholesale trade ......................................
Woolen and worsted goods ....................
Woolen and worsted yarns ....................
Wool, raw ..................................................
8
6
6
24
28
9
24
24
17
13
13
3
1
7
26
9
23
22
22
SUMMARY OF BUSINESS CONDITIONS
IN THE
THIRD FEDERAL RESERVE DISTRICT
Business activity declined again in July, and hesita
tion in placing orders for future delivery and the per
sistence of small purchases continued. In June, pro
duction of basic commodities declined further, wholesale
commodity prices again fell off, and the distribution of
goods continued to slacken. At the same time, the
number of employees at industrial establishments
decreased.
Industries are almost unanimous in reporting little
change in the demand for goods during July. Iron and
steel continue to move sluggishly, and though here and
there inquiries have increased, little business has re
sulted. A slightly better feeling has developed in cer
tain of the textile products, notably in silk goods, raw
wool, and woolen and worsted yarns, but as a rule
conditions are said to be unsatisfactory. Orders are
for small amounts and generally require prompt ship
ment. Building materials have been in fair request,
and cement is selling even better than it was a year ago.
The estimated cost of building permits issued in this
district during June was only slightly below that of
May, and was greater by over $ 3,000,000 than that of
June, 1923.
Summer dullness is more pronounced than usual in
the paper trade, and paper boxes are in no better de
mand than they were a month ago. The call for bitu
minous coal shows no improvement and, as is usual at
this season, anthracite is moving slowly. Hides and
leather have shown a better tone recently and orders
for shoes have increased. Favorable weather during
recent weeks has improved the agricultural situation,
though all crops are late. It is believed that most
grain yields will be lower than those of last year, but
the fruit yield promises to be bountiful.
Distribution of goods, as measured by retail and
wholesale trade and by freight car loadings, continued
to decline. In June, sales at retail were 7.5 per cent
less than those of June, 1923. O f the eight wholesale
lines reporting to this Bank, all but one show smaller
sales than a year ago, and in only two lines were they
larger than those of May. Freight car loadings in the
Allegheny district, though larger than they were a
month ago because of seasonal factors, have been runnig over 15 per cent smaller than they were last year.
3
The number of employees at over 1,000 industrial
establishments in Pennsylvania, New Jersey and
Delaware declined 3.7 per cent between May and June,
while total weekly wages fell off 7 per cent. Reports
from over 500 establishments show that a similar move
ment continued in July, and according to preliminary
estimates the number of wage earners decreased 3.6
per cent, especially large declines taking place in the
building materials group.
In June, wholesale prices, as measured by the index
of the Bureau of Labor Statistics, fell from 146.9 to
144.6. The decrease was largely due to lower prices
for building materials and metals, though farm prod
ucts also declined. Since July 1, however, quotations
on farm products have recovered, prices of wheat, oats,
rye and corn rising to the highest point of the year.
The volume of commercial loans extended by re
porting member banks in this district is $ 11,000,000
larger than it was a month ago and $17,000,000 greater
than in July, 1923. Interest rates have continued to
decline, and prime commercial paper in Philadelphia is
selling at 3^4 Per cent, as compared with 3j^-3j^ dur
ing the latter part of June.
E M PLO YM EN T A N D W A G E S
Reports received by this Bank from over 1,000
manufacturing establishments in Pennsylvania, New
Jersey and Delaware, and summarized on page four,
show that the number of wage earners declined 3.7
per cent between May and June. At the same time
total weekly wages decreased 7.0 per cent and average
weekly earnings were 3.4 per cent smaller. These
changes were a continuation of the movement that
started in March.
O f the 48 industries reporting, all but four showed
reductions in working forces, the largest declines being
in the metal manufacturing and textile products group.
Three of the four industries reporting gains in em
ployment were in the food products group, where an
increase in the number of employees was due to sea
sonal factors. The increase in lumber and planing
mills was wholly caused by the greater number of
wage earners at one mill.
For the first time this year the number of employees
T he
4
B usiness
A ugust
R eview
EM PLO YM ENT AND W AGES
IN PENNSYLVANIA, NEW JERSEY AND DELAWARE
Group and Industry
All industries: (4 8 ).................
Metal m anufactures:
Automobiles, bodies, and parts
Gar construction and repair.. .
Electrical machinery and appa
ratus......................................
Engines, machines, and machine
tools.......................................
Foundries and machine shops. .
Heating appliances and appa
ratus......................................
Iron and steel blast furnaces ..
Iron and steel forgings............
Steel works and rolling mills. .
Structural iron works..............
Miscellaneous iron and steel
products................................
Shipbuilding.............................
Non-ferrous metals..................
Number
of plants
reporting
Number of wage earners—
week ended
June
15, 1924
May
Per cent
15, 1924 change
Total weekly wagesweek ended
June
15, 1924
May
15, 1924
Average weekly earnings—
week ended
Per cent
change
June
15, 1924
May
Per cent
15, 1924 change
7.0
$25.21
$26.10
3.4
1,009
365,668
379,850
3.7
$9,220,269
$9,913,397
343
22
14
172,924
6.401
15,057
181,432
6,714
15,071
_ 4.7
— 4.7
— 0.1
4,527,760
176,885
436,404
5,019,985
193,979
422,425
9.8
— 8.8
+ 3.3
26.18
27.63
28.98
27.67
28.89
28.03
5.4
4.4
+ 3.4
42
17,252
18,255
5.5
421,369
447,520
5.8
24.42
24.51
0.4
35
73
11,399
12,512
11,882
12,995
4.1
— 3.7
312,324
338,614
336,664
370,546
7.2
— 8.6
27.40
27.06
28.33
28.51
3.3
5.1
16
10
13
46
11
5,465
13,707
4,595
43,471
2,874
5,514
14,092
4,927
46,927
2,888
_
—
—
—
—
0.9
2.7
6.7
7.4
0.5
166,156
375,580
107,422
1,055,532
78,221
170,486 _ 2.5
401.400 — 6.4
17.0
129,453
1,290,800 —18.2
78,185 + 0
30.40
27.40
23.38
24.28
27.22
30.92
28.48
26.27
27.51
27.07
1.7
3.3
11.0
11.7
+ 0.6
46
9
6
25,477
11,141
3,573
27,036
11,432
3,699
_ 5.8
- 2.5
_ 3.4
656,376
301,479
101,398
755,601
315,821
107,105
_ 13.1
— 4.5
— 5.3
25.76
27.06
28.38
27.97
27.63
28.96
-
7.8
2.1
2.0
1,312,722
71,117
102,107
112,059
134,843
308.461
216,247
187.181
140,129
40,578
1,393,286
75,129
106,586
108,967
141,614
325.904
230,467
208,731
152.234
43,654
— 5.8
— 5.3
— 4.2
+ 2.8
— 4.8
— 5.4
— 6.2
— 10.3
— 8.0
— 7.0
20.40
25.55
18.32
23.07
21.67
18.89
19.47
19.25
24.45
20.04
20.68
23.02
18.02
21.34
21.98
19.68
19.05
20.61
26.55
20.63
1.4
+ 11
17
+ 8.1
1.4
40
+ 2.2
6.6
7.9
2.9
22.85
25.93
22.20
20.49
27.72
31.32
15.42
22.91
0.3
26.64
2.7
21.52 + 3.2
21.11
2.9
28.15 _ 1.5
31.16 + 0.5
15.03 + 2.6
-
_
Textile products:
Carpets and rugs.....................
Clothing ...................................
Hats, felt and other.................
Cotton goods...........................
Silk goods.................................
Woolens and worsteds.............
Knit goods and hosiery...........
Dveing and finishing textiles. .
Miscellaneous textile products.
232
13
16
7
24
69
32
46
17
8
64,348
2,783
5,574
4,857
6,222
16.328
11,105
9,723
5,731
2,025
67,365
3,264
5,914
5,107
6,442
16,561
12,098
10,130
5,733
2,116
— 4.5
—14.7
— 5.7
— 4.9
— 3.4
— 1.4
— 8.2
- 4.0
— 0
4.3
Foods and tobacco:
Bakeries....................................
Canneries..................................
Confectionery and ice cream ..
Slaughtering and meat packing
Sugar refining...........................
Cigars and tobacco..................
88
20
8
21
12
4
23
25,791
4,655
2,412
5,363
2,505
4,308
6,548
26,055
4,650
2,754
5,165
2,476
4,316
6,694
— 1.0
+ 0.1
— 12.4
+ 3.8
+ 1.2
— 0.2
— 2.2
589,431
120,698
53,550
109,868
69,440
134,932
100,943
596,972 — 1.3
123,884 — 2.6
59,254 — 9.6
109.023 + 0.8
69,710 — 0.4
134,489 + 0.3
100,612 + 0.3
Building m aterials:
Brick, tile, and terra cotta prod
ucts........................................
Cement.....................................
Glass.........................................
Pottery.....................................
78
25,554
26,169
-
712,864
764,711
-
6.8
27.90
29.22
4.5
24.66
29.94
26.02
31.96
26.11
30.18
28.46
32.50
0.8
8.6
1.7
—
22
14
26
16
4,885
6,316
9,333
5,020
4,957
6,344
9,739
5,129
__
—
—
—
1.5
0.4
4.2
2.1
120,472
189,129
242,847
160,416
129,404
191,463
277,135
166,709
_ 6.9
— 1.2
— 12.4
— 3.8
1.5
2.7
1.7
1.8
0.5
7.5
887,386
197,349
65,116
37,071
559,135
28,715
900,592
204,275
66,571
38,816
558,796
32,134
1.5
— 3.4
— 2.2
— 4.7
+ 0.1
—10.6
30.11
26.19
26.30
26.84
33.07
24.46
30.09 + 0.1
26.38
0.7
26.43
0.5
27.59
2.7
32.88 + 0.6
25.32
3.4
2.7
1,190,106
1,237,851
— 3.9
25.02
25.32
2,113 + 25.8
3,029 — 9.9
8,872 — 1.6
7,857 — 7.5
353 — 4.8
5,236 — 7.3
5,486 — 0.5
3,630 — 0.3
5,415 — 1.3
2,926 — 5.8
3,978
3.7
48,052
65,716
240,481
183,221
6.805
86,358
136,000
116,515
145,599
63,195
98,164
43,643 + 10.1
74,293 — 11.5
242,839 — 1.0
199,772 — 8.3
6.995 — 2.7
95.235 — 9.3
139,138 — 2.3
117,208 — 0.6
145,464 + 0.1
67,855 — 6.9
105,409
6.9
18.07
24.07
27.55
25.22
20.25
17.80
24.92
32.20
27.26
22.93
25.64
12.5
20.65
24.53 _ 1.9
27.37 + 0.7
25.43
0.8
19.82 + 2.2
18.19
2.1
25.36 _ 1.7
__
0.3
32.29
26.86 + 1.5
1.1
23.19
26.50 — 3.2
Chemicals and allied products:
Chemicals and drugs...............
Explosives.................................
Paints and varnishes...............
Petroleum refining...................
Coke..........................................
74
41
10
12
8
3
29,476
7,536
2,476
1,381
16,909
1,174
29,934
7,743
2,519
1,407
16,996
1,269
—
—
—
—
—
Miscellaneous industries:
. Lumber and planing mill prod
ucts .......................................
Furniture..................................
Musical instruments................
Leather tanning.......................
Leather products.....................
Boots and shoes.......................
Paper and pulp products........
Printing and publishing..........
Rubber tires and goods...........
Novelties and jewelry..............
All other industries.................
194
47,575
48,895
—
7
22
6
34
7
28
23
24
18
11
14
2,659
2,730
8,729
7,265
336
4,852
5,458
3,619
5,342
2,756
. 3,829
2.4
.
...
"
-
1.2
T
1924-
hi rd
F ederal
R eserve
whose wages were reduced exceeds those that re
ceived increases.
Thirty-three firms reported ad
vances in wages ranging up to 25 per cent and affectlng 1050 employees, while 19 firms reported decreases
for 2456 employees. In some cases these wage changes
concern only a small number o f employees in a given
factory and consequently are of little significance. In
other instances, however, wage changes affected practi
cally the entire working force of a given factory. It
will be noted, however, that the number affected by
changes in wage scales amounted to only 3,506 or less
than 1 per cent o f the total number employed at re
porting establishments.
The decline in average weekly earnings was due in
many cases to shorter working hours. In certain of
the textile industries increased weekly earnings were
probably caused by the release of lower-paid work
men.
D istrict
5
investments, with the result that the total of loans
and investments moved up from 949.9 millions on June
18 to 973.6 millions on July 16. Larger deposits and
reserve balances at the Federal Reserve Bank are also
to be noted, as well as the fact that these banks were
able to make additional loans and enlarge their invest
ments with little recourse to the reserve bank for fur
ther accommodation.
BANKING STATISTICS
Third Federal Reserve District
All figures, except reserve ratio, in
millions of dollars
Changes in course of
July 16,
1924
Four
weeks
One
year
Debits to individual account, as reported by 18 cities
m the Third Federal Reserve District for the week
ended July 16, surpassed the corresponding week of
1923, but figures for the four weeks ended on the
same date show a slight decline in comparison with
those of the previous year. The decline, however, was
smaller than that in the preceding period. This was
to be expected, for business in 1924 reached its peak
m February, whereas in 1923 exceeding activity also
prevailed in March and April. Conditions in July of
both years were more nearly alike than in the month
of June. Debits by weeks are given below:
All figures in millions of dollars
Week of—
July 1G................
9 .....................................
2...........................
June 25..................
1923
1924
501
486
500
516
511
402
557
513
Total four weeks..................... 2,003
Excess
1923
Excess
1924
10
1,983
June 18..............
11....................
4.............................
May 28............
585
468
528
405
450
434
463
Total four weeks..................... 1,986
+
3.0
+
7.6
372.9
+ 12.0
+
16.2
Total loans...............................
656.2
+15.0
+23.8
U. S. securities ow n ed................
Other securities owned...............
94.8
22 2.6
-4 .5
+13.2
-27.5
+37.8
Total investments...................
317.4
+
Total loans and investments. . . .
Total deposits..............................
Borrowings from F. R. Bank.. . .
973.6
870.1
7.4
+23.7
+27.4
+ 1.4
+34.1
+56.4
-33.2
Federal Reserve Bank:
Bills discounted...........................
Bills bought.................................
U . S. securities.............................
Municipal warrants.....................
26.1
1.7
29.7
1.3
+
.2
.5
1.3
-41.3
-18.9
+ 12.3
+ 1.3
58.8
-
1.2
-46.6
Federal reserve note circulation .
Total deposits..............................
Cash reserves...............................
180.0
126.8
268.0
+
+
5.6
7.6
5.4
+
Reserve ratio...............................
87.4%
8.7
1.8
+ 1.3%
+
10.3
-25.3
6.4
+33.0
+15.3%
84
57
3
36
18
94
1,896
58
A strong upward movement during recent weeks in
aU other” (largely commercial) loans of reporting
member banks brought this item up to 372.9 millions—
a point higher than any since 1921, 8.9 millions above
the previous high level for this year, and 16.2 millions
above the corresponding figure a year ago. This in
crease in loans was accompanied by a large gain in
283.3
Total earning assets................
FINANCIAL CONDITIONS
Reporting member banks:Secured loans...............................
All other (largely commercial)
loans..........................................
The earning assets of the Federal Reserve Bank of
Philadelphia changed very little in the four weeks
ended July 16. Note circulation declined, but deposits
and cash reserves increased. The reserve ratio on
July 16 was 87.4 per cent as compared with 86.1 per
cent on June 18, and 72.1 per cent a year ago.
Call money in the New York market ruled at 2 per
cent during the last half of June. Early in July the
rate advanced to 2J per cent, but settled again in the
/>
following weeks to the 2 per cent level. On July 21
commercial paper was quoted at 2 l to
>
A
per cent,
and 90-day bankers’ acceptances were offered at 2 to
2}i per cent, as compared with ?>y to 3j4 per cent
2
and 2 J to 2}i per cent, respectively, a month ago.
4
At this time (July 23) Minneapolis is the only Fed
eral Reserve Bank at which the discount rate is 4y2
T he
6
B usiness
per cent. The Boston, New York, and Philadelphia
banks have a 3p2 per cent rate, and the others— 4 per
cent.
Fostered no doubt, by the prevailing ease o f money,
prices of stocks advanced sharply during the month.
Gains o f 5.49 per cent in industrial stocks, and of 3.92
points in railroad stocks were recorded by the DowJones averages. Bonds, too, advanced; the average of
4 Liberty bonds is now $4.04 above that o f a year ago.
Averages of the various groups of securities are given
in the table:
SECURITY PRICES*
July 21,
1924
June 21,
1924
Jan. 2,
1924
Average of—
20 industrial stocks............. $99.02 $93.53 $95.65
80.79
20 railroad stocks................
89.15
85.23
85.97
10 first grade rail bonds... . 89.81
89.05
87.41
10 second grade rail bonds. . 87.95
82.27
89.50
85.21
10 public utility bonds....... 90.80
93.49
94.67
10 industrial bonds............. 94.64
98.66
4 Liberty bonds................. 102.20 101.63
Julv 21,
1923
$9,139
80.75
86.61
82.91
86.19
93.01
98.16
* Dow-Jones averages, except that of 4 Liberty bonds.
Ninety-seven banks in the Third Federal Reserve
District report an increase o f 0.5 per cent in savings
deposits during June, 1924. If
Savings deposits
the interest credited to these
accounts be omitted, a net excess
of deposits over withdrawals of 0.1 per cent is indi
cated. Percentage changes by cities follow :
SAVINGS DEPOSITS
Third Federal Reserve District
Cities
Number
of banks
Per cent increase or decrease July l, 1924, comparec1with
June 1,
1924
Julv 1,
1923
Allentown.....................................
Altoona.........................................
Bethlehem....................................
Chester.........................................
Easton..........................................
Harrisburg....................................
Johnstown....................................
Lancaster......................................
Philadelphia.................................
Reading........................................
Scranton.......................................
Trenton.........................................
Wilkes-Barre.................................
Williamsport.................................
Wilmington....... .......................
York..............................................
Others...........................................
9
5
4
5
6
4
4
3
9
3
6
6
5
4
5
5
14
+ 1.2
—
.6
+ 1.1
—
.3
+ 6.9
—
1.2
—
.3
+ .4
.0
+ 2.7
+ 1.9
+ .2
+ .5
+ .4
.0
+ 1.9
+ 1.4
+ 8.5
+ 15.6
+ 13.1
+ 4.5
+ 16.3
+ 1.2
+ 6.6
+ 15.0
+ 6.3
+ 10.1
+12.4
+ 3.5
+ 16.2
+ *4
+ 6.9
+ 19.6
+ 6.9
Totals....................................
97
+
.5
+ 7.6
A ugust
R eview
During the last week in June the rate for the choicest
names declined to 3}4 per cent and since that time a
fair amount of paper has been
Commercial
sold in this market at that rate,
paper
..
autumn maturities moving espe
cially well. The bulk of the present offering by
dealers is of notes maturing in January and a number
of the banks hesitate to buy paper extending over the
end of the year at such a low rate. Banks in the
New York and Chicago Federal reserve districts, how
ever, are purchasing freely and some names are now
held as low as 3 per cent.
Business in July though fair will probably fall con
siderably short of the June total, not because of a
lack in the supply, however, for dealers state that new
notes are coming to them in increasing volume.
The rapidity at which rates declined during June
may be judged from the reports of five dealers in
this market. They made sales at from 5j4 per cent
down to 3*4 per cent; the higher rates were realized
during the early part of the month and the lower ones
at the end of the month. The amount sold at 4 p2
per cent and over, however, was only slightly more
than 2 per cent of the total and the great bulk of the
transactions was at from Zl 2 to 4 per cent. The total
/
sales were larger than in any month since May, 1922,
when our reports started, reaching $12,822,500. This
compares with $9,835,000 in May and $7,940 000 in
June, 1923. City banks were the principal buyers,
taking $10,035,000 against $2,787,500 by out of town
institutions.
Very little business in bankers’ acceptances was
transacted in this district by dealers during the four
D ,
t
weeks ended July 9. A minor
Bankers
sale to ^he Federal Reserve Bank
accep ances
was the only sale reported, and
purchases within the district averaged low. The offer
ing rate for 90-day bills is now 2 per cent, as com
pared with 2J4 per cent a month ago. Comparative
statistics of sales and purchases follow :
TRANSACTION IN BANKERS’ ACCEPTANCES
Sales in Third District
To others
Purchases
in Third
District
9 ............................. $ 19,000
11.............................
305,000
14.............................
488,000
$ 19,000
68,000
$ 77,000
165,000
269,000
11.............................
1,919,000
292,000
464,000
16.............................
2,599,000
138,000
489,000
Weekly average for period ending —
1924—
July
June
May
1923—
July
1922—
July
To Federal
Reserve
Bank
SYNOPSIS OF BUSINESS CONDITIONS
Compiled as of July 22, 1924
Business
Automobiles
Demand
Fair
Third Federal Reserve District
Prices
Unchanged
to higher
Finished
Stocks
Fair
Unchanged
Poor to fair
Sufficient
Unchanged
Fair
Heavy
Sufficient
Unchanged
Fair
Moderate
Sufficient
Unchanged
Fair
Moderate
Sufficient
Unchanged
Fair to good
Plentiful
Unchanged
Moderate
Cigars
Fair
Unchanged
Moderate
to light
Moderate
Moderate
to heavy
Poor
Coal, bituminous
Poor
Coke
Poor to fair
Cotton goods
Poor to fair
Lower
Unchanged
to higher
Unchanged
to lower
Unchanged
to lower
Unchanged
to higher
Fair to good
Unchanged
Unchanged
Fair
Collections
Wages
Sufficient
to plentiful
Sufficient
to plentiful
Plentiful
Fair to good
Coal, anthracite
Supply
Moderate
to heavy
Cement
Clothing
Labor
Cotton yarns
Poor to fair
Unchanged
Drugs, wholesale
Drygoods, wholesale
Dlectrical supplies,
wholesale
Fair
Fair
Lower
Lower
Moderate
to light
Moderate
Moderate
Fair
Unchanged
Moderate
Floor coverings
Poor to fair
Unchanged
Flour
Fair
Groceries, wholesale
Fair
Hardware, wholesale
Fair
Unchanged
to higher
Higher
Unchanged
to higher
Unchanged
to lower
Hosiery, fullfashioned
Fair
Lower
Hosiery, seamless
Fair
Fair
Fair
Fair
Fair
Moderate
Sufficient
Unchanged
Light
Sufficient
Unchanged
Fair
Fair
Moderate
Fair
Moderate
Fair
Moderate
Sufficient
Unchanged
Poor to fair
Lower
Moderate
Sufficient
Poor to fair
Moderate
Moderate
Moderate
Moderate
Moderate
to heavy
Sufficient
Unchanged
to lower
Unchanged
Sufficient
Sufficient
Unchanged
Unchanged
Fair
Fair
Fair to good
Fair to good
Hon and steel
-Jewelry, wholesale
Feather belting
Feather, heavy
Poor to fair
Fair
Fair
Fair
Lower
Unchanged
Unchanged
Unchanged
Leather, upper
Poor to fair
Unchanged
Lumber
Fair
Paint
Fair
Paper
Poor to fair
Paper, wholesale
Fair
Unchanged
to lower
Unchanged
to lower
Unchanged
to lower
Unchanged
to lower
Paper boxes
Poor to fair
Lower
Shipbuilding
Poor to fair
Shoes, manufacture
Fair
Shoes, retail
Fair
Shoes, wholesale
Fair
Silk goods
Poor
Unchanged
to lower
Unchanged
to lower
Unchanged
to lower
Unchanged
to lower
Unchanged
to lower
Sugar
Fair
Lower
Fnderwear, heavy
__ weight
Underwear, light
_ weight
_
Woolen and worsted
__goods
Woolen and worsted
yarns
Poor
Unchanged
to lower
Poor
Fair to good
Sufficient
Unchanged
Fair to good
Moderate
Sufficient
to plentiful
Unchanged
Fair to good
Moderate
Sufficient
Unchanged
Fair to good
Moderate
Plentiful
Unchanged
to lower
Fair
Moderate
Fair
Moderate
Plentiful
Unchanged
to lower
Fair
Some scarcity
Moderate
Unchanged
Fair to good
Sufficient
Unchanged
Fair
Moderate
Fair
Moderate
Fair
Heavy
to moderate
Moderate
to light
Sufficient
Unchanged
Fair
Sufficient
Unchanged
Good
Moderate
Plentiful
Unchanged
Fair
Lower
Moderate
Plentiful
Unchanged
Fair
Poor
Unchanged
Moderate
Plentiful
Unchanged
Fair
Poor
Unchanged
Light
Plentiful
Unchanged
Fair
8
T he
B usiness
A total of $3,767,000 of acceptances was executed
by the twelve reporting banks in this district during
the month ended July 10.
This compares with
$2,827,000 in the previous month, and $3,757,000 a
year ago.
Factors creating more than usual interest in the
foreign exchange market during the past month were
the conference in London for
Foreign
the consideration of the Dawes
exchange
Plan, the withdrawal o f funds
by European interests incidental to the lower interest
rates in this country and, in South America, the rise of
a revolution at Sao Paulo, Brazil. Sterling has appre
ciated in value, and on July 14, was quoted at $4.3851,
a gain of over 7 cents from the figure listed on June 14.
French francs, on the other hand, declined, and on
July 21 were listed at $.0517, a loss of 24 points from
the quotation on June 21. Belgian francs have not
been as active as French francs though they, too, have
declined during the month. On July 21 they were
quoted at $.0462. Swiss francs at $.1829 on July 21
were higher than they have been for many months
and the rise is attributed to a resumption o f the move
ment of capital to Switzerland and to the successful
tourist season. Italian lire are higher than they were
a month ago. They declined to $.0426 during the
early part of July; later, however, they recovered
somewhat and on July 21 were quoted at $.0433. The
movement o f funds to Holland, where higher rates
prevail than in either New York or London, caused
an increase in the value of guilders and on July 21
they were listed at $.3823, a higher point than has
been touched since last November. On the other hand,
Spanish pesetas have declined and on July 21 they
were quoted at $.1330, a loss of 13 points from the
figure listed a month previous. Norwegian kroner
have depreciated somewhat but quotations for Swedish
kroner are higher than they were a month ago, though
in neither case is the difference great. On July 21,
the former were listed at $.1342, and the latter at
$.2662.
Argentine pesos have fluctuated during the past four
weeks but are now at very near the levels quoted a
month ago. On July 21 they were listed at $.7385.
Since July 1, quotations for Brazilian milreis have
declined substantially and the market is unstable. On
July 21, the currency was marked at $.0970, a loss of
more than one cent from the quotations on June 21.
Chilean pesos have also declined during the past four
weeks and on July 21 were quoted at $.1010.
Japanese yen are at lower levels than they were a
month ago, but Chinese currency has appreciated. On
July 21 the former were quoted at $.4070, and the
latter (Shanghai tael) at $.7167. On the same date,
Canadian dollars were listed at $.992754, as compared
with $.984178, on the corresponding date in June.
A ugust
R eview
FOREIGN EXCHANGE RATES
Noon cables
Par
London................. SI.8665
Paris.....................
.1930
Antwerp...............
.1930
Milan...................
.1930
Vienna..................
.2026
.4020
Amsterdam..........
Copenhagen..........
.2680
Stockholm............
.2680
Madrid.................
.1930
Berne....................
.1930
Buenos Aires........
.9648
Shanghai..............
.8051
July 21,
1924
June 21,
1924
July 21,
1923
84.3884
.0517
.0462
.0433
.000014
.3823
.1612
.2662
.1330
.1829
.7385
.7167
$4.3304
.0541
.0469
.0431
.000014
.3742
.1689
.2655
.1343
.1774
.7400
.7139
$4.5973
.0594
.0499
.0438
.000014
.3927
.1750
.2658
.1433
.1773
.7762
.7009
RETAIL TRADE
Cool weather and intermittent rains in many parts
of the district have been unfavorable for retail trade
and increasing unemployment in industrial centers has
reduced the volume of consumer buying. Advance re
ports from the majority of stores indicate that retail
sales will not be as large as in July, 1923. Some stores,
especially women’s apparel shops, which have conducted
heavy price-slashing sales, have succeeded in main
taining or exceeding their July, 1923, volume of sales,
illustrating the fact that the consumer is looking for
bargains. Nearly all retailers agree that the public is
buying cautiously and is giving special attention to
quality and price.
The general trend of prices on all apparel and housefurnishings, except rugs, is still downward. Silk
hosiery, silk dresses, shoes, voiles, yardsilks, fancy
dressgoods, summer dresses and suits, ginghams, mus
lins, ribbons and men’s ready-to-wear suits are cheaper
than they were a month ago. Many grades of furni
ture, household utensils, tires and tubes are also lower.
But some grades of rugs have advanced slightly.
Retail sales in this district during June were 7.5 per
cent smaller than those of June, 1924, and were con
siderably less than those of May. Women’s apparel
stores were the only group whose sales exceeded those
of June, 1923, the increase being 7.8 per cent; but their
June sales were 11.4 per cent less than those of May.
Department store sales were 8.2 per cent less, men’s
apparel, 17.7 per cent smaller and credit houses, 10.1
per cent less than in June, 1923. Sales for the first
six months of 1924 were 1.8 per cent greater than for
the same period of 1923. For the first half of 1924
department store sales showed an increase of 0.6 per
cent, men’s apparel stores a decrease of 1.4 per cent,
women’s apparel stores a gain of 15.4 per cent, and
credit stores an increase of 2.1 per cent over the same
period of 1923. The cities of Chester, Johnstown, Al
toona, Williamsport, Trenton, Harrisburg and W il
mington all showed declines in the volume of retail
T hird
T924
F ederal
R eserve
D istrict
9
RETAIL TRADE
Third Federal Reserve District
Comparison of stocks
Comparison of net sales
Index Number
(Per cent of 1923
monthly
average)
June, 1924,
with
June, 1923
Jan. 1 to
June 30, 1924,
with Jan. 1 to
June 30, 1923
+ 1.8%
+ 3 .2 “
+ 2.1 “
- 4.1 “
-13.1 “
- 0 .5 “
- 9 .9 “
+ 1.3“
+ 0.1 “
+ 0 .7 “
- 1.0“
+ 6 .1 “
- 3 .9 “
- 0 .6 “
All reporting firms.........................................
I irms in— Philadelphia.................................
—Allentown, Bethlehem and Easton
—Altoona........................................
— Chester.........................................
—Harrisburg...................................
— Johnstowm....................................
— Lancaster.....................................
— Heading........................................
— Scranton.......................................
— Trenton........................................
—Wilkes-Barre................................
— Williamsport................................
— Wilmington..................................
— Y ork.............................................
— All other cities.............................
9S
98
95
91
95
96
85
92
82
97
94
109
96
102
92
109
- 7.5%
- 6 .4 “
- 8 .4 “
-1 4 .6 “
-31.3 “
- 9 .3 “
-16.2 “
- 8 .8 “
-1 8 .2 “
-1 0 .6 “
-1 4 .6 “
- 1.1“
-11.1 “
-11.6 “
-12.7 “
- 1.2“
All department stores...................................
Department stores in Philadelphia..............
Department stores outside Philadelphia... .
97
-
8 .2 “
7.6“
- 9 .4 “
All apparel stores........................................
■Men’s apparel stores...............................
—in Philadelphia.......................
—outside Philadelphia........................
Women’s apparel stores......................
—in Philadelphia.................................
— outside Philadelphia..........................
101
94
Credit houses.................................................
Shoe stores.....................................................
— ----*
June 30, 1924,
with
June 30, 1923
June 30, 1924,
with
May 31, 1924
Rate of turnover*
Jan. 1 to Jan. 1 to
June 30, June 30,
1924
1923
0.8%
0 .2 “
1.2“
6 .2 “
- 6.4%
- 7.2“
- 7.1“
- 6 .1 “
3.3
4.1
2.2
2.6
3.4
4.2
2.4
3.9
6 .2 “
+ 2 .8 “
+ 2 1 .0 “
- 1.6“
- 2 .1 “
- 2 .1 “
- 8 .2 “
+ 9.1 “
- 0 .5 “
+ 2 .0 “
+ 0.2“
+ 5.1 “
- 8 .9 “
- 5 .6 “
- 3 .5 “
- 3 .7 “
- 6 .3 “
- 3 .7 “
- 7.6“
- 5.3“
- 3 .8 “
- 3 .6 “
+ 2.7“
2.3
2.5
2.6
2.1
3.0
2.8
3.1
2.1
1.9
2.6
2.5
2.5
3.3
2.6
2.2
3.3
3.0
3.1
2.3
1.9
2.6
2.5
+
+
0 .6 “
1.4“
- 0 .6 “
+
-
0.1 “
1.3“
+ 2 .7 “
- 6.6“
- 7.4“
- 5.0“
3.3
4.0
2.6
3.4
4.0
2.8
- 3 .3 “
-1 7 .7 “
-15.2 “
-20.5 “
+ 7 .8 “
+ 13.4 “
-15.1 “
+ 9 .5 “
- 1.4“
- 2 .5 “
- 0.2 “
+15.4 “
+ 18.5 “
- 0 .2 “
+ 6 .5 “
+ 12.1 “
+ 13.3 “
+ 10.9 “
+ 4 .8 “
+ 6 .3 “
+ 0 .1 “
-
6 .6 “
6 .3 “
7.1 “
5.4“
8 .0 “
8 .5 “
6 .5 “
4.4
2.3
2.6
2.0
6.5
7.3
3.6
4.5
2.6
3.0
2.2
6.1
6.8
3.8
81
-10.1 “
+ 2.1 “
+ 0 .3 “
-
3 .2 “
3.6
3.6
118
- 2.5“
+ 1.5“
+ 4 .3 “
-
5 .9 “
2.4
2.6
109
+
0
+
+
+
* Times per year based on cumulative period.
trade for the first half of 1924 as compared with 1923.
Philadelphia, Allentown, Bethlehem, Easton, Lancaster,
Reading, Scranton and Wilkes-Barre all showed gains,
while business in York was exactly equal to that for
the first half of 1923. Wilkes-Barre showed the largest
^crease and Chester the greatest decrease in retail
trade.
WHOLESALE TRADE
During July trade at wholesale in most of the re
porting lines continued dull. A slight improvement,
however, is noticeable in business since the middle of
the month. Prices have again declined except in the
grocery trade, in which quotations on cereals advanced.
During June sales in all o f the eight lines, except
jewelry and groceries, were smaller than they were in
May an(j were ajso ]ess {}ian jn July, 1923, except in
drugs, which were practically unchanged. Stocks de
creased in June as compared with May but those of
drygoods, groceries, hardware, jewelry and paper were
Drger than in July, 1923. Collections are again slower
than they were either last month or a year ago, the
only exception being that payments for jewelry during
June were slightly better than in May.
The chart on page 10 indicates the trend of col
lections, as shown by the ratio of accounts outstanding
to sales in five wholesale lines. The periods of slowest
collections appear to be at the opening and towards the
close of the year.
Retailers continue to buy with great caution and
their orders for replacement are very small ones; they
have, however, placed some busiShoes
ness for early autumn delivery
but this is less than it was on this
date of last year. July billings will probably run be
hind those of July, 1923, but wholesalers are becoming
more optimistic regarding future business as reports
from their salesmen indicate that stocks on retailers’
shelves are small and that they will have to enter the
market shortly. Some wholesalers state that they have
been able to buy at slightly lower prices and that they
have reduced selling figures accordingly. Others, how-
T he
IO
B usiness
A ugust
R eview-
WHOLESALE TRADE
Third Federal Reserve District
Percentage of increase or decrease in
Net sales
June, 1924, compared
with
Stocks
June, 1924, compared
with
Accounts outstanding
June, 1924, compared
with
Ratio of accounts
outstanding to sales
May, 1924
Boots and shoes...........
Drugs.............................
Drygoods .......................
Groceries........................
Hardware.......................
Jewelry..........................
Paper.............................
Electrical supplies........
June, 1923
May, 1924
June, 1923
May, 1924
June, 1923
June, 1924
May, 1924
-1 2 .9 %
- 3 .4 “
- 8 .5 “
+ 1.9“
- 6 .3 “
+ 5 .2 “
-1 6 .9 “
- 5 .8 “
-2 0 .1 %
+ 0.1 “
-2 0 .7 “
- 6 .9 “
- 9 .1 “
-16.3 “
-22.6 “
-20.5 “
-
- 3.2%
-1 3 .5 “
+ 3 .0 “
+ 2.1 “
+ 8 .5 “
+ 1.6“
+ 2 .4 “
-18.2 “
-1 1 .2 %
+ 0 .2 “
- 6 .6 “
+ 4 .9 “
+ 0 .9 “
+ 3 .6 “
- 2 .6 “
- 2 .3 “
- 1 0 .0 %
- 1.3“
- 9 .5 “
- 2 .9 “
+ 4 .6 “
+ 5.8“
-11.1 “
-1 1 .0 “
301.6%
146.9 “
268.8 “
108.5 “
178.1 “
345.8 “
162.2 “
165.8“
296.9%
142.3 “
263.4 “
106.6“
166.4 “
350.9 “
138.4 “
160.0 “
5.1%
0 .7 “
2 .9 “
3 .6 “
5 .1 “
0 .1 “
3 .5 “
5 .1 “
ever, report that they have neither received nor given
concessions. Like retailers, the wholesalers have been
buying much smaller quantities than they did a year
ago but they have purchased somewhat more freely
during the present month than they had previously.
During June sales were smaller by 12.9 per cent than
in May and by 20.1 per cent than in June, 1923. Stocks
too have been declining and on June 30 were lower by
5.1 per cent than on May 30 and by 3.2 per cent than
on June 30, 1923. Collections are slowrer, as is shown
by ratio of accounts outstanding to sales, which was
301.6 on June 30, 296.9 on May 31, and 265.1 on June
30, 1923.
June, 1923
265.1%
146.3 “
235.5 “
102.6 “ ~
154.6 “
275.0 “
141.2“
148.1 “
Prices of drygoods at wholesale continued to decline
during the month and reductions were made in the ma
jority of the lines sold. Hosiery,
Drygoods
both of silk and cotton, knit
underwear for fall, muslins and
nearly every description of cotton goods are included
in the list of articles reduced. Sales were small during
early July and in most cases were less than in June or
in July, 1923. During the past two weeks, however,
some improvement is noted and it is stated that retailers
are buying more freely for the early fall trade, though
it is still true that the bulk of orders received call for
prompt shipment and are for summer goods. The out
standing orders of wholesalers are smaller than they
were a year ago, the decrease ranging in some cases
as high as 40 per cent.
During June sales were 8.5 per cent less than in May
and decreased 20.7 per cent from those of June, 1923.
Stocks on hand on June 30 were 2.9 per cent lighter
than on May 31 but were 3.0 per cent heavier than
June 30, 1923. Collections have become slower, the
ratio of accounts outstanding to sales being 268.8 on
June 30, 263.4 on May 31, and 235.5 on June 30, 1923.
G r o ce ry c o lle c t io n s vary less a n d sh oes m o re th a n d o th e o th e rs .
V a ria tion s in cr e d it term s a n d th e e x te n t o f sales flu ctu a tio n s
have a m a rk ed effe ct u p o n th e p ercen ta g es o f a c c o u n ts
t o sales.
Source—Federal Reserve Bank of Philadelphia
Business in wholesale jewelry, as is usual in July, 1
5
rather dull. Sales for autumn delivery are somewhat
smaller than they were a year
Jewelry
ago but, as more salesmen start
out in August with autumn lines,
it is expected that transactions will be larger. The
outstanding purchases of wholesalers, too, are smaller
than they were a year ago. Sales for prompt delivery*
w
’hich constitute the bulk of present orders, differ but
little from those of last year though probably slighth
smaller, with watches, diamonds, wedding rings, and
remountings for old stones in best demand. Prices
generally are unchanged.
During the first four months of the year sales at re
1924
T hird
F ederal
tail throughout the country, as indicated by the tax
paid to the Treasury Department, were approximately
$5,000,000 larger than during the corresponding period
of 1923.. Exports-of jewelry, also, are larger than they
were a year ago, according to figures issued by the
Department of Commerce, the gain in May being 120
per cent.
Sales at wholesale in this district during June were
5.2 per cent larger than they were in May but
were 16.3 per cent smaller than in June, 1923, and
sales for the first half of 1924 were 7.6 per cent lower
than for the same period in 1923. Stocks on hand on
June 30 were 0.1 per cent smaller than on May 31 but
were 1.6 per cent larger than on June 30. 1923. The
ratio of accounts outstanding to sales was 345.8 on
June 30, 350.9 on May 31, and 275.0 on June 30, 1923.
The net sales o f 30 wholesale hardware firms in the
Third Federal Reserve District were 6.3 per cent
smaller in June than they were in
Hardware
May and 9.1 per cent less than
during June, 1923. Our sales
index based on the average monthly sales in 1923, stood
at 95 in June, a loss of 6 points from the figure in May
and 15 points under the number at the end o f June,
1923. According to reporting firms, present demand
is only fair and not as strong as it was a month ago.
Builders and general contractors continue to be the
largest purchasers though farmers and manufacturers
are taking sizeable quantities of fencing and tools.
Sporting goods, too, are in fair request.
Prices, as a whole, are much the same as they were
at this time last month, though quotations on some
grades of merchandise are lower and the general ten
dency appears to be downward. Almost every dealer,
moreover, states that prices are lower than they were
a year ago. Stocks on hand, according to our reports,
were 5.1 per cent smaller in June than in May but 8.5
Per cent larger than they were at the end o f June,
1923. Collections are only fair. The ratio of ac
counts outstanding to sales was 178.1 in June, as com
pared with 166.4 in the preceding month and 154.6 in
June o f last year.
A slight decrease in business as compared with June
ls reported by most wholesalers, but sales compare
favorably with those of July,
Drugs
1923. Insecticides, toilet articles,
and staples are at present the
best sellers. The botanical drug market is quiet and
pnees are lower than they were a month ago. Drugs
and fine chemicals are also lower than they were at
Bje close o f June, although the demand continues fair.
I be following table shows the price indexes of 40
botanical drugs and of 35 drugs and fine chemicals as
compiled by the “ Oil, Paint and Drug Reporter.”
In June wholesale drug sales were 3.4 per cent
smaller than in May, but 0.1 per cent larger than in
R eserve
D istrict
11
Price index of 40 botanical Price index of 35 drugs and
drugs
fine chemicals
1924
June 23.............
June 30.............
July 7.............
Julv 14.............
July 21.............
1923
1924
1923
131.8
129.1
126.6
123.8
123.6
138.4
131.0
132.1
131.3
131.3
199.5
197.8
197.0
196.1
196.1
186.4
185.8
186.3
185.8
185.8
June, 1923. Stocks at the end of June were a trifle
lighter than at the close of May, but considerably
smaller than at the end of June, 1923. The ratio of
accounts outstanding to sales was 146.9 in June, as
compared with 142.3 in May and 146.3 in June 1923.
Sales of wholesale electrical supply dealers report
ing to us were 5.8 per cent smaller in June than they
Flectrical
were
durin£ the PrecedinS
/•
month, and were 20.5 per cent
SUPplieS
less than in June, 1923. Present
demand is no better than fair though nearly all dealers
say that it is much the same as it was a month ago.
Most of the deliveries have been to contractors and
to firms engaged in the installation of fixtures in new
buildings. Sales of radio equipment have decreased,
principally on account of the summer season.
Prices are unchanged from those prevailing at this
time last month though they are lower than they were
a year ago. Stocks in the hands of reporting firms
on June 30 were 5.1 per cent smaller than at the end
of the preceding month and 18.2 per cent smaller than
on June 30, 1923. Collections are fair. The ratio of
accounts outstanding to sales on the last day o f June
was 165.8, as compared with 160 at the end of May and
148.1 on June 30 of last year.
The majority of distributors report that July sales
show a slight decrease from those of June and a big
decline from those of July, 1923.
Paper
Business continues to be hardly
fair, with newsprint the only
important grade that is in good demand. Since the
middle of the month the printing trade has been buying
more actively and the demand for book and fine papers
has somewhat improved, but is still below normal.
Wrapping and kraft papers have been moving slowly
and price cutting has been quite noticeable. Building
papers, boxboards and building boards also are in
rather poor request and prices of these are weak. In
general, paper prices are unsteady, book papers and
newsprint being about the only grades that are really
firm. Jobbers’ stocks are slightly smaller than they
were a month ago, but a trifle heavier than in July,
1923. Collections are fair and much the same as in
June.
June sales were 16.9 per cent smaller than those of
May and 22.6 per ‘cent less than those of June. 1923.
12
T he
B usiness
The ratio of accounts outstanding to sales was 162.2 in
June, as compared with 138.4 in May and 141.2
in June, 1923.
Groceries are in fair demand and sales at wholesale
are much the same as in June. Beverages, sugar,
olives, pickles, sardines, preservGroceries
ing jars and jar goods, cereals
and canned goods form the bulk
of the present demand. The trend of prices is upward
and more items have advanced in price than have
declined. Flour, rice, syrup, corn starch, rolled oats,
chicken feeds, lard, coffee and canned tomatoes are
higher than they were a month a g o; only sugar, canned
milk and soap are lower. Jobbers report that they
are contracting for less merchandise for next autumn
delivery than they did in July, 1923, as the retailers
are very cautious in making future commitments. Stocks
held by wholesalers are slightly smaller than they were
a month ago, but larger than they were in July, 1923.
Wholesale grocery sales in June were 1.9 per cent
larger than in May, but 6.9 per cent less than in June,
1923. The ratio of accounts outstanding to sales
increased from 106.6 in May to 108.5 in June.
FLOUR
Despite the advance in grain and flour prices, con
sumers have not departed from their hand-to-mouth
buying policy. Consequently the domestic demand
for flour continues only fair, being about the same as
in May and June, but somewhat heavier than in July,
1923. The export market is very quiet and foreign
buyers show little inclination to purchase at present
prices. Millers in this district report that practically
their entire output is going into domestic consumption.
For several weeks wheat has been going up in price
and, as a result, flour prices also have advanced.
Number 2 red winter wheat on July 22 was selling at
$1.41 y2 per bushel in New York, as compared with
$ 1.22p2 on April 22 and $1.26 on January 23. Spring
patent flour for prompt shipment on July 22 was
quoted at $7.15 to $7.65 per barrel in car lots, as com
pared with $6.00 to $6.50 on April 22. New crop
flour will soon be coming into the market and con
sumers expect prices to decline when it arrives, which
accounts for their refusal to buy ahead in the present
advancing market. In some parts of the district by
product feeds such as bran, middlings and gluten are
not selling as well as a year ago, because o f abundant
pastures. Flowever, mills in other sections where
pasture is not so abundant report that their sales of
feeds compare favorably with those of last month
and o f July, 1923. Prices of feeds, too, have advanced
sharply and are about 12 per cent higher than at the
beginning of June.
Grinding at the mills is still far below capacity, and
few of them are operating at more than 60 per cent.
For this reason the finished stocks at the majority of
A ugust
R eview
mills are light. Warehouse stocks are much smaller
than they were a year ago and are lighter than they
have been at any time this year. On July 1, the sup
ply o f flour held at public warehouses in Philadelphia
was 9 per cent smaller than on June 1 and 36 per cent
less than on July 1, 1923. The stocks of corn and
oats were lighter, but those of wheat and rye were
considerably larger than those of a year ago.
PUBLIC WAREHOUSE STOCKS AT PHILADELPHIA*
Flour
barrels
Date
July 1, 1924.
June 1. 1924.
July 1, 1923.
Wheat
bushels
Corn
bushels
111,332
759,888
122,007 1,016,560
317,622
173,027
46,217
48,871
172,503
Oats
busnels
Rye
bushels
46,728
93,637
818,908
125,192
76,290
24,830
♦Compiled by the Commercial Exchange of Philadelphia.
Exports of flour from the port of Philadelphia dur
ing the first six months of 1924 showed a decrease of
28 per cent from those of the first half of 1923. Dur
ing the first quarter of 1924 flour exports were greater
than those of the first quarter of 1923, and although
exports in June exceeded those of last June, the sharp
declines during the month of March, April and May
caused the total for the first 6 months to fall below
that of 1923. Grain exports from this port for the
first six months, with the exception of rye and barley,
were also smaller than in the corresponding half of
1923. Wheat exports declined 23 per cent, corn 60
per cent and oats 40 per cent; but exports of rye
increased 25 per cent and of barley 38 per cent.
Export sales of flour during this month have been
small, as foreign buyers are not disposed to meet the
present asking price, and the total volume for the
month will probably be considerably less than that of
July, 1923. The British Isles and Germany were the
largest buyers in the Philadelphia market.
EXPORT OF FLOUR AND GRAIN FROM
PHILADELPHIA*
Commodity
First six
months of
1924
First six
months of
1923
Flour (barrels). . . .
179,883
247,976
Wheat (bushels). . 16,131,612 20,236,691
Corn (bushels). . . .
1,689,903 4,185,731
261,680
Oats (bushels). . . .
436,789
615,687
Rye (bushels). . . .
769,005
116.245
24,935
Barley (bushels) . .
June,
1924
June,
1923
20,295
30;106
648,101 1,559.926
236,942
10,000
71,661
156,000
♦Compiled by the Commercial Exchange of Philadelphia.
Receipts of flour, wheat, corn and' oats at Philadel
phia during the first half of 1924 were much smaller
than for the corresponding period of 1923, but receipts
of rye and barley were larger. The enormous decrease
T hird
1924
F ederal
R eserve
in flour receipts for the six months period shows that
domestic consumers took an average of 60,000 barrels
of flour less each month of this year than they bought
in the same m onth'of last year. Domestic buyers also
bought smaller quantities of wheat, corn and oats dur
ing the first half of this year than they purchased in
the first six months of 1923. The increase in rye and
barley receipts was due chiefly to the heavier export de
mand for these grains.
D istrict
13
to July 1, as reported by the National City Bank of
New York, was 4,043,179 tons, as compared with a
total output of 3,582,464 tons up to July 1, 1923, an
increase of 460,000 tons. Since exports from Cuba for
the first six months of 1924 were slightly smaller than
in the first half of 1923, the balance of the supply of
sugar in Cuba on July 1 was considerably greater than
it was on July 1, 1923. As the following chart shows,
the balance of supply was nearly the same in size as on
July 1, 1922.
RECEIPTS OF FLOUR AND GRAIN AT
PHILADELPHIA*
Commodity
First six
months of
1924
First six
months of
1923
Flour (barrels). . . .
1,154,018 1,587,234
Wheat (bushels). . 15,046,517 19,678,569
Corn (bushels). . . .
2,291,983 5,908,290
Oats (bushels). . . .
914,941 2,506,847
Rye (bushels). . . .
859,114
639,163
Barley (bushels). .
32,619
121,483
Increase
Decrease
433,216
4,632,052
3,616,307
1,591,906
219,951
88,864
*Compiled by the Commercial Exchange of Philadelphia.
SUGAR
Although the demand for raw sugar has been fair
during the month, large offerings of duty-free sugars
have served to force prices down,
Raw sugar
and raw sugar is from T to %.
Y
cent per pound lower than it was
at the beginning of the month. Because of the fact that
consumers have shown little interest in new orders for
refined sugar, the refiners have been reluctant to buy
raws, except as needed or at a concession in price. On
June 27 Cuban raw sugar for prompt shipment sold at
cents, c & f, on the New York Sugar Exchange;
but considerable offerings of Porto Rican and Philip
pine sugar in nearby positions since then have caused
the entire market to weaken slightly. On July 22
Cuban raw sugar for prompt shipment was sold at 3j4
cents, c & f. Porto Rican and Philippine sugars sold
at 5.02 cents, delivered, which was equivalent to
Cents, c & f, for Cuban. The purchases of duty-free
sugars (Porto Rican and Philippine) by eastern re
finers have been large and considerably exceed those of
July, 1923.
European buyers, especially English refiners, have
been purchasing considerable quantities o f Cuban sugar
at prices equivalent to those prevailing on the Sugar
Exchange. The demand for refined sugar in Great
Britain is reported to be good, and since most of the
Santo Domingan sugar has disappeared from the mar
ket, the British refiners have turned to Cuba for their
supplies.
dhe grinding season in Cuba is nearly over, as only
four mills are still operating. The output of sugar up
Raw sugar receipts at the ports of Baltimore, Phila
delphia, New York and Boston for the first three weeks
of July were larger than in the same period of 1923.
The following table shows how receipts in the same
periods of both years compare:
RECEIPTS OF RAW SUGAR AT ATLANTIC PORTS*
June 27 to
July 18, 1924
June 29 to
July 20, 1923
Cuba...............................
Porto R ico......................
Philippine Islands..........
other countries...............
167,408 tons
54,050 “
21,745 “
89,064 tons
4,000 “
10,645 “
79 “
Total receipts...................
243,203 tons
103,788 tons
Tons (2240 lbs.)
From
From
From
From
♦American Sugar Bulletin.
Although there has been no heavy buying of refined
sugar, such as marked the third week of June, refiners
report that a fair amount o f new
Refined sugar
business has been received and
that withdrawals on contracts
made in June have been satisfactory. The bulk of the
14
T he
B usiness
fruit crop is yet to be harvested, so refiners are confi
dent that heavy buying will begin as soon as the large
supplies contracted for in June have been delivered to
the consumers. Prices of refined sugar have declined
in sympathy with those for raw and are now 35 to 50
points lower than they were at the beginning of the
month. On July 1 quotations for fine granulated at
the various eastern refineries ranged from 6.75 to 7.00
cents per pound, but now prices at the same refineries
range from 6.40 to 6.50 cents. Offerings by second
hands during the month have been very small and
the prices asked were only slightly below the refiners’
highest prices.
During the first half of the month the export demand
for refined sugar was moderately heavy; Spain,
Brazil and the Levant being the principal buyers. In
the latter part of the month, however, export inquiry
has been light and European buyers, although purchas
ing considerable quantities o f raw, have shown prac
tically no interest in refined sugars. Probably the
facts that very little second hand sugar is available,
and that refiners show little disposition to shade their
prices, explain the lack of foreign interest.
R eview
A ugust
price and they have lowered their quotations only as
raw sugar dropped in price.
Meltings for the first three weeks of the month at
the refineries in Baltimore, Philadelphia, New York
and Boston amounted to 206,000 tons, as compared
with 115,000 tons for the same period of July, 1923,
an increase of 80 per cent.
BUILDING
During June 3,652 permits were issued in fifteen
cities in the Third Federal Reserve District, represent
ing a total estimated cost of $16,301,548. Though the
number o f permits was smaller by 702 than the figure
in May, the estimated cost was almost as great, the
Refiners’ stocks at Atlantic ports on July 1 were
smaller than they have been on that date in any year
since 1920, so it is clear that the refiners’ statistical
position on July 1 was strong. As will be seen in the
accompanying chart, prices on July 1 were consider-
T h e in crease in th e n u m b e r o f o p e ra tio n s d u rin g th e past fe w years
d o e s n o t a p p ear excessive in view o f th e p re -w a r tre n d . I n L. It creased co s ts o f b u ild in g a c c o u n t la rgely fo r th e
e x tre m e rise in value.
k
Source— Bureau of Building Inspection, Philadelphia
decrease being less than $63,000
Both the number
of permits granted and the estimated cost were greater
than in June, 1923, during which month 3,471 permits
were reported with a total value of $13,070,171. In
Philadelphia, 1,561 permits were issued at an esti
mated cost of $11,108,880, a decline of 174 in the
number of permits but an increase of $168,505 in total
value as compared with the figures for May.
R e fin e rs’ s to c k s o n J u ly 1 w ere s m a ller th a n at a n y tim e o n th a t
d a te s in ce 1920. R efin ed su ga r is ch e a p e r th a n it has b een
sin ce F eb ru a ry , 1923, a n d raw su ga r is low er th a n
it has b een sin ce O c to b e r, 1922.
Sources— American Sugar Bulletin, and Weekly Statistical Sugar
Trade Journal
ably stronger than on June 1, which further empha
sized the lightness of refiners’ stocks. Consequently
refiners have not been pressed to sell at concessions in
In none of the reporting cities was the number of
permits issued in June as great as in the preceding
month, though in Camden, Lancaster, Atlantic City,
Trenton, Reading and York the estimated cost was
greater. On July 1, the index figure computed by the
Aberthaw Company and based on material and trans
portation costs, stood at 198, a decline o f one point
from the number on June 1.
T hird
!924
F ederal
R eserve
D istrict
BUILDING PERMITS
Third Federal Reserve District
June, 1924
Permits
Allentown..........
Altoona..............
Atlantic City.. . .
Bethlehem.........
Camden.............
Harrisburg.........
Lancaster...........
Philadelphia. . . .
Heading.............
Scranton............
Trenton.............
Wilkes-Barre...
W llliamsport. . . .
Wilmington.......
^ork... .
Total..........
Operations
95
233
175
48
145
59
103
1,561
309
195
171
141
94
152
171
132
238
175*
48*
176
70
103
2,040
318
195*
231
141*
94*
152
171
3,652
4,284
1924
June, 1923
Estimated cost
Permits
$299,610
334,936
756,464
242,500
288,735
107,000
218,405
11,108,880
598,695
461,325
649,844
425.907
193,197
304,990
311.060
105
201
321
43
118
88
89
1,334
301
174
164
128
165
101
139
133
203
321*
43*
146
105
106
1,742
315
174*
187
128*
165*
101
139
3,471
4,008
$16,301,548
Operations
Estimated cost
$314,100
227,221
668,418
175,910
512,750
321,100
390,345
8,370,875
413,525
266,470
578,866
374,498
113,354
241,359
111,380
$13,080,171
1923
Number
Estimated cost
Number
Estimated cost
583
1,131
996
271
740
505
590
8,328
1,588
970
1,147
835
578
684
1,033
$2,802,910
1,972,657
3,226,033
924,080
2,350,494
3,772,665
2,798,710
72,568,485
3,548,022
2,651,050
3,145,683
2,192,429
743,624
2,345,692
1,329,939
550
1,038
1,635
242
542
533
535
7,314
1,720
800
889
614
531
597
878
$3,080,720
1,846,523
5,833,025
920,272
4,836,937
4,617,275
1,945,805
75,179,095
3,089,430
1,978,230
3,918,934
1,587,712
'723,036
1,974,974
1,327,135
19,979 $106,372,473
18,418 $112,859,103
* Operations not reported
NEW BUILDINGS AND ALTERATIONS
1924
1923
Alterations
New buildings
Permits
Allentown........
Altoona........
Camden..
Harrisburg.......
Lancaster.........
Philadelphia. ..
Heading.
Jrenton. . .
™illiamsport.. .
Wilmington... .
^ ork..
62
91
56
43
45
824
86
154
48
108
71
Operations
Estimated
cost
Permits
Operations
Estimated
cost
99 $251,200
318,568
96
87
214,805
51
87,775
189,750
45
1,287 10,036,865
493,900
95
582,658
214
183,608
48
231,432
108
71
285,085
33
142
89
16
58
737
223
17
46
44
100
33
142
89
19
58
753
223
17
46
44
100
$ 48,410
16,368
73,930
19,225
28,655
1,072,015
104,975
67.186
9,589
73,558
25,975
The call for paint is fair, and though reports vary
somewhat, the average opinion is that it is much the
same as it was at this time last
Paint
month and in July, 1923. Since
the middle of the month an in
crease in the number of inquiries for dry colors and a
better demand for colors in oil have resulted in some
°Ptimism among manufacturers. Nearly all of the
Paint purchased has been for practically immediate use;
consequently orders on the books of all manufacturers
reporting to us are for delivery either at once or
'within sixty days.
Prices in several instances are a trifle lower than
they were a month ago, but are generally firm. Quo
tations for lead pigments have not changed since the
reductions which occurred last month, and prices of
htharge and lithopone are holding up well. Slight con
Alterations
New buildings
Permits
76
68
63
75
46
686
88
151
102
70
50
Operations
Estimated
cost
Permits
Oper*
ations
Estimated
cost
104
70
91
90
58
1,063
102
174
102
70
50
$216,100
163,001
461,125
278,200
329,710
7,763,405
293,650
549,621
107,654
226,976
51,850
29
133
55
13
43
648
213
13
63
31
89
29
133
55
15
48
679
213
13
63
31
89
$ 98,000
64,220
51,625
42,900
60,635
607,470
119,875
29,245
5,700
14,383
59,530
cessions have been granted in some instances in quo
tations for dry colors, but in no case have they been
excessive. Lately linseed oil has risen from 4 to 5
cents per gallon in price and on July 21 was quoted
at from $1 to $ 1.01 per gallon, car lots in cooper
age. Stocks of finished goods are moderate and sta
tionary. Supplies of raw materials, too, are stationary
and are from moderate to heavy.
Manufacturers reporting to this Bank are operating
at an average rate of about 63 per cent of capacity.
Full running time is variously considered to mean from
54 to 126 hours per week. Orders now being filled
will insure the continuance of present operating sched
ules for from 3 days to not longer than one week.
The supply of both skilled and unskilled labor is in
all cases sufficient and no wage changes have occurred
during the month.
T he
i6
B usiness
A ugust
R eview
PRODUCTION OF PORTLAND CEMENT*
Month
Production
1924
Production
1923
Stocks
1924
Stocks
1923
April...................................................................................... 11.726,CC0 barrels 11.359.000 barrels 17.159.000 barrels 11.463.000 barrels
12.910.000
16.403.000
“
10.144.000
M ay....................................................................................... 13,777,CC0
“
12.382.000
“
14.905.000
June............................................................................... •.... 13,538,000
9,168,000
* Estimated by the Geological Survey.
The demand for cement is fairly good and is better
than it was at this time last month and a year ago.
Orders now on the books are
Cem ent
rather evenly divided among
thirty, sixty and ninety day de
livery dates, though one manufacturer states that
orders for immediate delivery comprise the major part
of his bookings.
Prices of finished cement are firm and have not
changed from those prevailing in June. However, ac
cording to one informant there is an increasing tend
ency on the part of some firms to grant small con
cessions, especially when large orders are involved.
Stocks of finished goods are heavy in some cases and
light in others, but the majority of manufacturers re
porting to us classify them as moderate and decreas
ing. Stocks o f raw materials, too, are moderate and
are not as heavy as they were a month ago.
An analysis o f reports received by this Bank dis
closes the fact that the average rate of operations is
close to 95 per cent of capacity, which is the same as
the average rate in June. As high as 168 hours per
week is spoken of by several producers as signifying
full running time, which represents continuous oper
ation. The supply of both skilled and unskilled labor
is either sufficient or plentiful and practically no wage
changes have occurred during the month.
During the second quarter of this year output of
Portland cement reached a high total of 39,041,000
barrels. Mill stocks, too, were extremely heavy, but
they are decreasing, as is customary at this season.
The table above gives production and stock figures for
each of the last three months and for the correspond
ing months in 1923.
Collections are from fair to good and, though
much the same as they were at this time last month,
are not as satisfactory as in July, 1923.
The call for lumber is barely fair and both manu
facturers and dealers say that, though recently it has
improved to some extent, it is
Lum ber
not as strong as it was either a
month or a year ago. The in
crease in demand occurred principally in the soft wood
market and has brought about a better feeling in the
trade. North Carolina pine is in better request than
it was a month ago and a better movement is reported
in supplies of white pine and in yellow pine timbers
and heavy floorings. O f the hard woods, plain and
quartered white and red oak, beech, ash, hickory and
walnut are in best demand. The call for spruce and
hemlock is light.
Prices of finished lumber are, in most instances,
weak and dealers reporting to us say that, as a result
of concessions in prices, several of their quotations
are lower than they were a month ago. On some
grades of lumber, especially on cypress, prices show
a considerable range. Quotations on timbers, accord
ing to manufacturers, are not particularly strong and
in one instance are from 5 to 10 per cent lower than
they were a month ago. Some resistance to present
prices is being met with, especially in the higher grades
of hardwood. Both manufacturers’ and dealers’ stocks
are moderate, but, though the former are increasing,
the latter are becoming lighter. Supplies of timbers
are moderate and stationary.
Mill owners reporting to the Bank are operating
their plants at an average rate of about 80 per cent
of capacity, which is nearly the same as it was a month
ago. Operating at capacity is variously estimated to
mean from 48 to 60 hours running time per week.
Orders on hand will insure the continuance of present
working schedules for from two days up to and be
yond four months. The average period is computed
to be approximately seven weeks.
The supply of skilled labor is adequate and that
of unskilled workers is plentiful. No wage changes
have been reported during the month. On June 15,
2,659 employees were on the payrools of seven lumber
and planing mills in this district, as compared with
2,113 workers employed on May 15, an increase of
25.8 per cent. During the same period, total week
ly wages rose from $43,643 to $48,052, an advance
of over 10 per cent. Collections are generally fair
and are much the same as they were at this time last
month. On the other hand, they are not as prompt
as they were a year ago.
IRON AND STEEL
General conditions in the iron and steel market con
tinue to be much the same as they were during June.
Intervals of buying during the past month, particularly
since the Fourth of July, have strengthened the belief
T924
T hird
F ederal
in some quarters that demand is slowly but surely
improving. Whether or not this occasional activity
presages an approaching revival in the industry is,
according to many close observers, still a matter of
conjecture. In this market the call for pig iron has
been light. Decreased production and concessions in
price have seemingly offered no inducements to pur
chasers and, aside from the usual tentative inquiries
and a few orders for moderate tonnages, there have
been no new developments so far this month in this
branch o f the industry. Demand for iron and steel
castings, too, is light and is not as strong as it was
a month ago. Oil companies and architectural iron
plants are taking most of the deliveries. Orders for
!ron bars are not as numerous as they were during the
previous month, neither are those for crude steel; but
requests for structural steel have increased in this
market and inquiries are in greater volume, partly on
account of the requirements for the Delaware River
bridge. Sales o f scrap steel have improved, which is
regarded as an encouraging sign, and the demand for
sheets, though still classified as poor, is somewhat
better than it was four weeks ago. The market for
steel bars, however, is inactive and current orders have
been almost wholly confined to small lots. Railroads
as yet have failed to come extensively into the steel rail
market; consequently the call for this product, too,
bas been little better than poor. Wire rods and
kindred products were moving somewhat more briskly
about the middle o f the month, but this was believed
to be the result of an accumulation o f orders during
a recent shutdown in the Pittsburgh area, rather than
to any actual increase in demand. The call for light
and heavy hardware is fair and is much the same as
it was at this time last month. Most of the orders
received have been from automobile houses, electrical
and public utility companies. Supplies of machinery
and tools are moving in only fair volume and sales
are not as good as they were a month ago. There has
been little change in the demand for cast iron pipe,
chains, cables, and general miscellaneous articles and
m no instances is the call for any o f these characterized
as better than fair.
Since the latter part o f June, prices of many iron
and steel products have declined and quotations for
several others, though continuing unchanged, have been
considerably weakened by the granting o f concessions,
bi Philadelphia on July 21, 2X pig iron was quoted at
$21.26 per ton and though this price has prevailed
Dr several weeks, it is not thought to be particularly
firm. Quotations for nearly all of the standard brands
of pig iron are from $5 to $7 per ton below those
listed at this time last year. On July 15, the com
posite price o f finished steel, as computed bv the ‘‘Iron
A ge,” was 2.589 cents per pound, a decline o f .014
cents from figure calculated on June 17. During the
R eserve
D istrict
i7
same period the composite price of pig iron fell from
$20.13 to $19.29 per gross ton, a loss of 84 cents.
The figures on July 17, 1923, stood at $25.93 per
gross ton.
For the third consecutive month, production of both
pig iron and steel ingots continued to decline. During
June, output of the former totaled 2,026,221 tons, as
compared with 2615,110 tons in May, a reduction of
over 20 per cent. Production of steel ingots declined
from 2,628,261 tons in May to 2,056,466 tons in June, a
decline of 571,795 tons. During no month since Janu
ary, 1922, has the daily rate of output been smaller.
Generally speaking, there has been no note-worthy
change in the rate at which the industry as a whole is
operating, though in this district 7 additional furnaces
were blown out and none blown in. O f the 61 fur
naces situated in this locality on June 30, only 18
were in blast. Unfilled orders of the United States
Steel Corporation again decreased. On June 30, they
totaled 3,262,505 tons, a decline of 365,584 tons from
the figure on May 31. Compared with the unfilled
tonnage on the books at the end o f June, 1923, the
loss amounted to 3,123,756 tons.
The supply of both skilled and unskilled labor is
sufficient and in only one instance coming to our atten
tion has any wage change been made. On June 15,
12,512 employees were on the payrolls of 73 foundries
and machine shops in this district as compared with
12,995 workers employed in identical plants on May 15.
During the same period the average weekly wage fell
from $28.51 to $27.06, a decline of 5.1 per cent. Col
lections are, in general, fair but are not quite as prompt
as they were a month ago.
In our third month’s survey of the steel foundry
industry in this district, comparative figures are given
in the accompanying table for
Steel foundries
the principal operating features
of five identical companies with
a total monthly steel making capacity of 5,350 tons.
STEEL FOUNDRY OPERATIONS
Third Federal Reserve District
May
June
Change
5,350 tons
3,195 “
2,613 “
$365,506
4,792 tons
$849,714
5,350 tons
3,372 “
3,077 “
$496,566
3,180 tons
$583,211
0
+5.5%
+ 17.8“
+35.9 “
-33.6 “
-3 1 .4 “
Raw stock:
Pig iron............................. 1,529 tons 1,913 tons
7,912 “
Scrap................................. 6,909 “
615 “
558 “
Coke..................................
+25.1 “
+ 14.5“
- 9 .3 “
Capacity of furnaces...........
Production of steel castings..
Shipments.............................
Value of shipments..........
Unfilled orders.....................
Value of unfilled orders . .
T he
i8
B usiness
Output during June was 5.5 per cent greater than in
May and a substantial increase of nearly 18 per cent
in tonnage shipments was reported. The value of
castings shipped during the month was more than a
third greater than that in the preceding month. On
the other hand, unfilled orders, both in tonnage and
value, were considerably smaller than they were in
May. The value of shipments per ton was calculated
to be $161.38 in June as compared with $139.88 in
May, a gain of $21.50 per ton. Stocks o f scrap steel
and pig iron increased during June but supplies of
coke were not as heavy as in May.
Reports received from 43 iron foundries in the
Third Federal Reserve District show that production,
unfilled orders, shipments and
Iron foundries
value o f tonnages delivered were
smaller during June then they
were in the preceding month. Output during June
was 9.1 per cent less than in May, the largest decline
being reported by gray iron foundries. Stocks of pig
iron fell but little from the tonnages on hand a month
ago, but a substantial decrease of more than 13 per
cent occurred in supplies o f scrap. Stocks of coke
alone showed a small increase over that in the previous
month. Shipments o f gray iron castings by 27 iden
tical firms manufacturing this product exclusively
amounted to 3,701 tons, valued at $516,122 in June,
as compared with 3,418 tons, valued at $465,659,
during May. Using these figures as a basis for cal
culation, the average value per ton was $139.45 in June
as against $136.24 during May, a difference of $3.21
per ton. The table below gives the totals for May and
June and presents statistics relative to the various
operating items for the 43 reporting foundries having
a total monthly capacity o f 17,944 tons.
IRON FOUNDRY OPERATIONS
Third Federal Reserve District
May
Capacity of furnaces...........
Production of castings........
Malleable iron..................
Gray iron..........................
Jobbing.........................
For further manufacture
Shipments of castings..........
Value of shipments..........
Unfilled orders.....................
Value of unfilled orders.. .
Raw stock.............................
Pig iron.............................
Scrap.................................
Coke..................................
June
17,944 tons
7,708 “
962 “
6,746 “
4,335 “
2,411 “
5,218 “
$ 884,543
6,001 tons
$1,078,351
17,944 tons
7,004 “
923 “
6,181 “
3,926 “
2,255 “
5,062 “
$ 837,534
5,738 tons
$1,017,055
9,574 tons 9,304 tons
3,360 “
3,881 “
2,458 “
2,555 “
Change
-
9.1%
4.1 “
8 .4 “
9 .4 “
6 .5 “
3 .0 “
5 .3 “
4 .4 “
5 .7 “
- 2 .8 “
-1 3 .4 “
+ 3 .9 “
A ugust
R eview
AUTOMOBILES
Nearly all dealers reporting to us are agreed that
demand for both new and used cars was better dur
ing the second quarter than in the first three months
of this year, notwithstanding the slowing up of pro
duction activities in the automotive and other indus
tries during the latter period. In almost every case,
however, sales of both passenger cars and trucks dur
ing April, May and June were less than those of the
second quarter of last year. An encouraging factor
in the present situation, according to some dealers, lies
in the fact that, even though business is usually quiet
at this time, sales thus far in July have been greater
than those during the same period in the previous
month. Others, however, report that the demand is
not as good as it was a month ago. The ever growing
custom of taking in used cars in trade and the conse
quent resale problems have been the subject of con
siderable comment in automobile circles throughout
the country; but in Philadelphia, at least, dealers have
the situation well in hand and most of them state that
second-hand cars are moving out of salesrooms about
as fast as they are received. Indeed, one well known
dealer informs us that he has fewer used cars on hand
now than at any time in several years. In a few in
stances difficulty is being encountered in obtaining de
liveries of new cars, especially of seasonable models
such as touring cars and roadsters, but in general ship
ments are satisfactory. Stocks of cars in the sales
rooms are probably somewhat heavier than is usual at
this season, though in no case are they regarded as
excessive.
Prices are generally unchanged, no revisions worthy
of note having occurred since the last price announce
ments were made on April 1; but the few changes that
have been made are said to be upward.
Production has declined since the beginning of the
second quarter, as will be seen in the table below in
which are given figures representing output of both
passenger cars and trucks in the entire country. It
will be noted that output is substantially less in each
month of the present year than it was in the corre
sponding months of 1923.
PRODUCTION OF AUTOMOBILES*
1924
1923
Month
Passenger
cars
April..
May . .
June . .
Trucks
Passenger
cars
Trucks
336,968
279,385
217,845
34,977
32,326
27,040
343,793
350,073
337,048
36,786
42,373
39,945
* Compiled by the Federal Reserve Bank of Chicago.
r924
T hird
F ederal
R eserve
A chart showing production of both classes o f auto
mobiles is presented below from which can be seen the
output for each month since June, 1922.
Collections are in the main satisfactory, although
one firm has been doing more financing than usual.
D istrict
i9
PRODUCTION OF ANTHRACITE*
Week ending
1924
1923
June 21...........................
June 28...........................
July 5...........................
July 12...........................
1.923.000 tons
1.918.000 “
1.296.000 “
1.871.000 “
2.042.000 tons
2.105.000 “
1.580.000 “
2.051.000 “
* Compiled by the Geological Survey.
Though some mines in this district are either shut
down, or are operating at reduced schedules, most of
them are continuing to work at capacity in anticipa
tion of the customary autumn demand. The supply
of miners and miners’ helpers is sufficient and no labor
disturbances have been reported during the month.
r ,ng M a rch o f th is year, o u t p u t o f pa ssen ger cars an d tru ck s was
clo se t o th e re c o rd levels o f M ay, 1923. E ach su cce e d in g
m o n t h b r o u g h t a d e clin e in p r o d u c tio n , a n d th e to ta l
o u t p u t in J u n e was s m a ller th a n it has b een in
a n y m o n t h sin ce J a n u a ry , 1923.
Source— Department of Commerce
COAL
For seasonal reasons and because o f the general
disinclination to buy for other than immediate needs,
the demand for anthracite has
Anthracite
decreased noticeably during the
month. Stove sizes are probably
moving better than any other o f the domestic grades,
With egg coal second in request. The call for steam
c°al is poor and considerable tonnages of these sizes
are going into stocks.
Prices are from 10 to 15 cents higher than they
^ ere a month ago, according to company circulars.
^°me independent operators, however, have made no
advances in their quotations. On July 21, in this
Market, stove coal was priced at from $8.95 to $9.10
Per ton and barley grades were listed at $1.50 per ton.
. Production declined considerably in the week endlng July 5, which, o f course, was on account o f the
observance of Independence Day and because many
the miners did not resume work on the following
day. With the exception of the strike year of 1922,
output during the week in question was the smallest of
any corresponding week on record. In the following table
gures are given showing output in tons for each of the
Past four weeks and for the corresponding four weeks
of 1923.
Occasionally during the past month there have been
indications that the worst of the depression in the
bituminous market has been
Bituminous
passed, then, again, the activity
ceases and little or no improve
ment can be seen. In this district the present demand
is, if anything, less than it was a month ago and public
utilities rather than railroads and industrial plants are
the largest consumers. On the other hand, one large
operator states that orders from steel companies have
been responsible for an increase in the demand for his
product and that the call is now better than it was dur
ing June.
The usual difference exists between contract and spot
prices, and though very little change is manifest in the
latter, the tendency seems to be downward. In Phila
delphia on July 21, Pool 10 coal was quoted at from
$1.65 to 1.90 per ton, as compared with from $1.70 to
$2.00 per ton on June 30. Stocks are heavy and are
continuing to increase.
Production has been fairly well maintained at around
seven million tons per week, with the exception of the
week including the Fourth of July, during which output
declined to the extremely low level of 5,755,000 tons.
Since then, however, production has recovered and is
now about as high as it was during the latter part of
June. Figures are given in the table below showing
output in tons for each of the past four weeks and for
the corresponding four weeks of last year.
PRODUCTION OF BITUMINOUS*
Week ending
1924
1923
June 21...........................
7,202,000 tons
7^371,000 “
5,755,000
7,455,000 “
10.422.000 tons
10.458.000 “
8,742,000 “
10.925.000 “
July 12...........................
* Compiled by the Geological Survey.
T he
20
B usiness
Most mines are operating far below capacity; indeed,
many are shut down entirely. The average rate at
which operators reporting to this bank are running
their collieries is not over from 30 to 40 per cent of
capacity. There is a surplus of miners and, as a result
of continued inactivity in the bitumnious areas, many
of them have gone into other occupations.
No improvement has occurred in the coke market
during the past month, and no increase in demand is
looked for until conditions in the
Coke
iron and steel industry change
for the better. Furnace grades
are readily obtainable at the spot price of $3.00 per ton
at the ovens, and, in some instances, in which sharp
competition has obtained, concessions to as low as $2.75
per ton have been made. The foundry coke market is
in a somewhat better condition and recently the price
was advanced from $4.00 to $4.25 per ton at the ovens,
though the latter quotation is by no means firm.
Output of beehive coke is now as small as it has been
at any time in the last two years. During the week
in which Independence Day occurred production fell
to the almost unprecedented low level of 95,000 tons,
and though it increased again in the succeeding week,
the total was less than in the week ending June 28. Out
put in tons for each of the past four weeks and for the
four corresponding periods of 1923 are given in the
table below.
DOMESTIC CONSUMPTION AND EXPORTS OF
AMERICAN COTTON*
(linters excluded)
In bales
June,
1924
11 months
ending
June 30,
1924
June,
1923
11 months
ending
June 30,
1923
Domestic consumption... 326,137 .542,026 5,317,300 6,203,438
Exports............................ 217,598 212,949 5,453,229 4,654,781
* Figures compiled by Department of Commerce.
On July 18, with only two weeks of the old crop
year remaining, the visible supply of American cotton
was slightly more than 1,000,000 bales and was about
50,000 bales larger than it was a year ago. This is
shown in the accompanying table.
SUPPLY AND TAKINGS OF AMERICAN COTTON*
In bales
Season of
1923-1924
Season of
1922-1923
Season of
1921-1922
Visible supply, American, at
end of previous season
(July 3 1 )...........................
869,968 1.968,159 4,112,651
Crop in sight, American on
(Julv 18)........................... 11,162,795 11,010,307 10,661,506
Total............................. 12.032,763 12,978,466 14,774.157
Visible supply, American, on
961,715 2,169,825
(July 18)........................... 1,010,407
PRODUCTION OF BEEHIVE COKE*
Week ending
1924
1923
June 21...............................
June 28...............................
July 5 ...............................
July 12...............................
131.000 tons
126.000 “
95,000 “
105,000 “
398.000 tons
399.000 “
376.000 “
366.000 “
* Compiled by the Geological Survey.
Production o f by-product coke during June totaled
2,403.000 tons, as compared with 2,786,000 tons in May
and 3,166,000 tons in June, 1923.
COTTON
During the past month the cotton market has been
influenced very largely by the weather in the cotton
growing states, and by the two
Raw cotton
Government crop reports which
have been issued. The buying
by domestic mills has been small, as in most cases
their reduced requirements had been covered previ
ously. Exports during June were slightly larger than
in the corresponding month o f 1923, but their influ
ence on prices was comparatively slight. The accom
panying table shows the domestic and foreign cotton
takings for the month and crop year to date.
A ugust
R eview
World’s takings on American
to Julv 18......................... 11,022,356 12,016,751 12,604,332
* Figures compiled by the New York Cotton Exchange.
During the last week in June the market was strong,
spot cotton advancing from 29.15 cents on June 23 to
30.90 on July 1. But on the publication on July 2
of the Government report, which showed a condition
as of June 25, of 71.2 per cent, a gain of 5.7 per cent
during the month, and an estimated acreage o f
40,408,000, the market broke sharply to 29.90 cents.
Both the condition and acreage figures were larger
than had been anticipated in the trade. For several
days after that, cotton was weak but the declines were
not important and, on July 7, the market reached the
low point of the move, 29.60 cents. This further de
cline was because of the belief that since June 25 the
weather had been favorable, but this condition changed
and after July 7 the market moved almost steadily
upward until, on July 19, spot cotton was 32.50. Then
on July 21 the first of the newly inaugurated semi
monthly reports of the Department o f Agriculture was
issued. In it the condition of the crop on July R
was placed at 68.5 per cent. This report was as much
t 924
T hird
F ederal
below the general expectation as the former report
had been above it, and the market rose rapidly, spot
cotton after the report selling at 33.40 cents. The
greatest advance, however, was in the new crop op
tions; October rose 2 cents and closed at an advance
° f more than 1.4 cents per pound. On July 22 spot
cotton rose to 33.95 cents the highest figure since
February 6.
The accompanying chart shows acreage planted and
production o f cotton during the past 15 years, and
also estimated condition at the time o f the first two
Government reports in those years. The production
%ure for 1923 is not the final one, as that is not yet
available and the acreage for 1924 is a preliminary
estimate.
. Although the acreage planted in the last two years
| the largest on record, the bumper crops were grown
s
ln fbe four years 1911-1914 inclusive. In recent years
damage by the boll-weevil has greatly reduced the
yield.
COTTO N
j
^
P R O D U C T IO N
y
years sin ce 1910 ha s th e c o n d it io n o f th e c r o p b een low er o n
" e 25 th a n o n M a y 25. In n e ith e r o f th ose years, 1919 a n d 1923,
a * “ large c r o p p ro d u c e d a lth o u g h th e acrea ge p la n te d , espe
c ia lly in 1923, was o f g o o d size. O n th e o th e r h a n d , in th e
tw o years, 1914 and 1920, in w h ic h th e J u n e c o n d it io n
w as co n sid e ra b ly h ig h e r th a n t h a t o f M a y, as it
a lso is th is year, th e cr o p s p ro d u c e d were
la rge, th a t o f 1914 b e in g th e la rgest o n
re c o rd .
urces
Department of Commerce, New York Journal of Commerce
and Dun's Review
The market for cotton yarns has been very unsatisactory during the past month, and prices have been
generally weak. Because o f the
G offon yarns
continued lack o f sufficient or
ders for goods, the consumption
°:.y a rn s has been almost at a standstill. Buying,
^hich has been greatly restricted, is principally for
current requirements, and, while numerous inquiries
are being received for fall delivery, few orders are
P aced even at price concessions. Although recently
R eserve
D istrict
21
sales of combed yarns have been more frequent than
during the first part of the month, they are said to be
in small lots and only for immediate delivery. This
is largely due to the fact that large mercerizers con
tinue to keep out of this market, claiming that the
demand for their product is unusually dull. Trading
in carded yarns, too, remains at a low level and prices
are still weak, although lately it is reported that they
are tending slightly upward.
Because of the sluggish demand and low prices,
spinning mills have continued to curtail their produc
tion rather than accumulate stocks. Most of the
orders are for delivery during the next sixty days,
and the unfilled orders will not insure mill operation
beyond thirty days. Supplies of both finished prod
ucts and raw materials are moderately light and they
are decreasing as compared with last month. Labor
is plentiful, and wages are unchanged. Collections
are not as satisfactory as they were last year, but on
the whole they are fair.
Although recent advices show that quotations on
yarns have advanced since about the middle of July,
. prices still remain below the average level maintained
in January. Fairchild’s average price and index num
ber, which on January 19 was 53.29, dropped to 43.31
on July 19, a decrease of 19.5 per cent. The average
price of raw cotton for the same period dropped from
33.64 to 31.84, a decline of 5.4 per cent. But the
present trend of prices for raw cotton is upward.
During late June and the first week in July the
market for cotton goods continued to be dull but after
that it improved somewhat in
Cotton goods
sympathy with the increased
strength in raw cotton. Some
mill agents report an increased call for gray goods,
sheetings, napped goods and damasks, and prices for
these are advancing. This improvement, however,
does not appear to have been shared by all and there
fore the market may be characterized as spotty. Senti
ment is more optimistic as it is becoming more evident
that goods are wanted by the retail trade. Mills that
have been holding goods against orders have received
shipping instructions and in some cases these ship
ments have been ordered direct to retailers.
Other branches of the trade do not appear as yet
to have participated in this betterment; makers of
automobile fabrics, furniture coverings, curtains and
upholsteries complain that business is poor and has
decreased since last month. Unfilled orders are
smaller and prices are weak and in many cases lower.
The survey of employment and wages made by
this bank shows that in 24 plants making cotton goods
the number of employees decreased 3.4 per cent be
tween the week of May 15 and that of June 15, and
that total wages paid were 4.8 per cent less in the
latter period. Average weekly earnings, however,
22
T he
B usiness
were only 1.4 per cent lower. A month previous the
decrease in employment was 9.0 per cent.
Collections are well maintained and in nearly every
report are stated to be either fair or good.
WOOL
During the latter part of the past month, slightly
greater activity has been noted in the local market for
raw wool, prices remaining comRaw wool
paratively steady. Several deal
ers report that, in addition to
many inquiries for wool of all grades, a number of
actual sales have been made to spinners, calling for
fine delaines and fleeces ranging from quarter-blood
up. Notwithstanding the fact that many mills con
tinue to operate on reduced schedule, manufacturers
are said to show more interest in wool than they did
last month, probably owing to somewhat lower prices;
but conservatism is general and advance orders are
limited. The market for carpet wool continues
slugggish, carpet makers still remaining inactive. There
is a noticeable demand for noils at firmer prices, but,
owing to the curtailed operations in worsted mills, they
continue scarce.
Although local stocks of wool are rather light, deal
ers state that they can be easily replenished in case of
increasing demand. According to recent estimates, be
tween 75 and 80 per cent of the new domestic clips
have been sold already to Eastern buyers, outright sales
being more frequent than consignments. In conse
quence, the Western field of operation is now narrowed
down practically to Montana, where about 50 per cent
of wool clips still remains unsold. Local dealers who
have their buyers out in the field report that resistance
to prices still continues on the part of Western growers.
The July colonial sales in London and Brisbane re
ceived only slight attention from the American buyers,
quotations being higher than they were willing to pay.
While good merinos maintained a fairly firm position,
inferior grades of wool declined as compared with the
May auctions. French, Japanese and, to some extent,
German buyers were among the principal supporters of
this market. Toward the end of the sales much of the
offering was withdrawn to be held over until the next
auction in September. Re-exports of wool held in bond
here have been somewhat smaller than last month, and
imports for June amounted to 16,397,418 as compared
with 18,916,140 pounds for May and 30,129,497 a year
ago.
Quotations continue on a lower level than they were
a year ago, although one or two dealers report that
buyers are not resisting prices as they were last month.
According to Dun’s average o f ninety-eight quotations,
prices for raw wool were 73.30 cents per pound on
July 12, as against 81.93 cents per pound last year.
Collections in the local market are reported to be
fairly good.
A ugust
R eview
Aside from a slightly more confident tone regarding
the future, the market for woolen and worsted yarns
has continued inactive over the
Woolen and
greater part of the past month,
worsted yarns ^
prices have remained weak.
Inquiries as to prices and offerings have been fairly
numerous and some sizeable sales have been reported
in a few instances, including single warp and filling
yarns for dress goods, as well as two-ply yarns for
men’s wear, but current orders for future delivery have
been very limited, buying being chiefly for immediate
requirements. The majority of dealers report that
their orders are largely for delivery within 60 days,
although some have orders for delivery beyond that
period. Except for specialties, trading in wool spun
yarns has been quiet, owing to a poor demand for
cloakings, coatings and knitting goods. Sales of carpet
yarns for Axminsters have continued unusually small)
though prices remained unchanged.
During the past month most spinners in this district
have curtailed their production drastically, and mills
are operating on a considerably reduced schedule. As
is indicated in the accompanying chart, in May the
percentage fo active woolen spindles throughout the
United States dropped to 79.3 per cent as compared
with 82.2 per cent in April and 89.6 per cent a year
ago, while activities of worsted spindles declined to
64.6 per cent in May as compared with 71.6 per cent
in April and 94.1 per cent last year. The consumption
of wool in this district, as shown by returns from 78
establishments, was about 18 per cent smaller in June
than in May, whereas wool consumption in the United
States was about 16 per cent smaller during the same
period, as reported by 499 establishments.
WOOL
ioo
1919
1920
1921
1922
1923
1924
D u rin g th e p a st yea r a n d a h a lf th e c o n s u m p t io n o f w o o l ha s he
d e c lin in g , a n d in M a y was a t th e low est p o in t sin ce J an u a ry .
1921. T h e a ctiv ity o f w o rste d sp in d le s ha s fa lle n off
t o a greater e x te n t th a n th a t o f w o o le n s p in
d les d u r in g th e past year.
Source—Department of Commerce
r924
T hird
F ederal
R eserve
Labor, both skilled and unskilled, is plentiful, and
total weekly wages as reported to this bank by 32
woolen and worsted establishments declined 6.2 per
cent between Majf 15 and June 15, though average
weekly earnings increased 2.2 per cent during the same
period.
With a few exceptions, stocks o f yarns and supplies
of raw material continue moderately light, and the
latter arq said in some cases to be decreasing. Quota
tions are for the most part unsatisfactory, being slightly
lower than last month, although prices of raw ma
terials are reported to be comparatively firm. Collec
tions are fairly good.
D istrict
23
refused, it is reported, to purchase in advance of cur
rent requirements. As a result, at present about onehalf of the orders on the books are for delivery within
the next sixty days, and the remainder within the
succeeding month, few mills having orders for deli
very after ninety days. Because of its staple character,
manufacturers o f blue serge report that they are doing
a fair amount o f business in spite of the current
depression. Requests for popular priced lines of top
coats has also been noticeable.
Mills are utilizing on the average about 50 per cent
of their plant equipment, as compared with 75 per
cent a year ago. At the present rate of production,
Considering the past month as a whole, the market
business on hand will insure operation in most plants
for woolen and worsted goods has continued exceedfor about sixty days. Stocks of finished products are
1r *
1
.
ingly quiet, and prices have been
for the most part moderate, and they are either sta
° ° e n f inJ
weak. Manufacturers report that
tionary or increasing. This is perhaps due to the fact
0
owing to general conditions and
dull demand, practically all business on the books has that the shipment of fall suitings has begun only
been for immediate delivery. And, since the usual recently. Supplies of piece-goods are moderately light,
spring opening of men’s suitings and topcoatings has but reports vary as to whether they are increasing
been delayed, present operations are confined primarily or decreasing. The supply of labor is plentiful. As
to old orders that were booked in advance. Duplicate* is indicated by the accompanying chart, the total
business has been small, although producers of bolivias
weekly wages paid by 27 clothing establishments in
and other pile fabrics are still utilizing most of their Pennsylvania and New Jersey have steadily decreased
equipment apparently without overstocking their sup since January, and are now lower than they were at
ply of finished goods. This is also true of most manu any time during the past year and a half. Since
facturers of cassimeres, whose mills are said to be
March the number of employees has also declined
running about 60 per cent of plant capacity, although
below the lowest level recorded this or last year.
the request for their product has been rather poor.
As a result of the unfavorable market conditions,
Production has been further curtailed, and the majority
° f firms are working only against orders in hand. In
consequence, stocks of both finished products and raw
Materials remain comparatively light, save in one or two
distances. As a matter of fact, at the present rate of
Production, unfilled orders fail to insure mill operations
beyond the period of sixty days.
While prices of finished goods are for the most part
below the level of last month or a year ago, quotations
for raw materials are holding firm, though in a few
cases they are said to be lower than last month. Buyers
continue to offer resistance to prices on nearly all lines,
ruore especially in the woolen cloth trade. The supply
° f labor is plentiful, and wages for the woolen and
worsted industry are generally unchanged. As a rule,
collections are fair, though not as satisfactory as they
were last year.
CLOTHING
Constantly decreasing demand, continued curtailuient of production, increased unemployment, weak
prices and slow collections have
M en's wear
generally featured the market
for men’s apparel in the district
during the past month. Retailers have continually
" J * w e e k l y w ages Have d e clin e d 27 per c e n t, a n d n u m b e r o f e m p lo y e e s
20 per c e n t s in ce th e ir resp ective h ig h p o in ts in 1923.
Source—Federal Reserve Bank of Philadelphia
Although several manufacturers state that quota
tions are firm, most of them report that prices are
weak, and in some instances are about 10 per cent
lower than they were last month. Resistance to prices
T he
24
B usiness
R eview
A ugust
has been noticeable in all lines of men’s wear. Most of
the manufacturers reporting to us find collections poor.
Business in shirts continues quiet. Largely because
o f the fluctuations in the raw cotton and raw silk
markets, together with general
Shirts
dullness in demand, retailers are
cautious in making future com
mitments, and are buying only to cover their im
mediate requirements. The majority o f orders are for
quick delivery, mostly within less than sixty days.
With a few exceptions, as in novelties, duplicate busi
ness has been relatively poor, but cancellations have
been no greater than usual. Although in one or two
instances stocks o f finished goods are said to be de
creasing, most producers report that they are rather
heavy. Supplies o f raw materials are moderately
light.
As a rule, production has continued restricted, mills
running from 50 to 60 per cent o f single shift plant
capacity. A t this rate of production, the unfilled or
ders will insure operation for a period o f from two
weeks to one month. The supply o f labor, both
skilled and unskilled, is plentiful, and wages are
unchanged.
Quotations are as weak as they were last month,
and buyers continue offering resistance to prices in all
grades. Collections are generally poor.
SIL K
Although prices for raw silk in the domestic market
recovered slightly during the first part o f the month,
mainly because o f strength in the
Raw Silk
primary market, the advance was
not accompanied by any pro
nounced activity on the part o f buyers. Nor has the
fact that there has been a somewhat better feeling in
finished goods trade in any way fostered a desire among
manufacturers to enter the silk market for their re
quirements at the new price levels. In consequence of
this hesitation, the demand for raw material has been
rather slack. The trend of prices for raw silk has been
upward. On July 22 Kansai double-extra cracks were
quoted at $5.80 per pound, as against $5.55 per pound
on June 30, but this quotation is still 29.7 per cent lower
than that o f last year. The accompanying chart illus
trates this fluctuation in price, and also shows the de
cline in deliveries to mills, which in June reached the
lowest point since Februry, 1922.
Stocks o f raw silk in the principal New York ware
houses have diminished considerably, reaching the low
est point since July, 1923. Final figures for the silk
season, as compiled by H. L. Gwalter & Co., Inc., give
shipments from Japan to June 30 as 288,050 bales, of
which 265,200 bales were made to America and 22,850
bales to Europe, as compared with a total o f 314,051
B e ca u se o f re d u c e d o p e ra tio n s in p la n ts m a k in g silk go o d s , d eliveries
to m ills have d ecrea sed to th e low est p o in t sin ce F eb ru a ry , 1922;
w h erea s q u o t a t io n s on raw silk in J u n e w ere a t th e low est
level s in ce 1916.
Source—Silk Association of America and Journal of Commerce
bales last year, of which 296,392 bales were shipped
to this country and 17,659 bales to Europe. Stocks
amount to 21,000 bales at Yokohama and 2,000 bales
at Kobe, as against a total carry-over of 17,000 bales
a year ago.
Except for a slightly better sentiment regarding fu
ture business in silk piece-goods, unsatisfactory de
mand, weak prices and curtailed
Silk Goods
production have continued to
characterize the market for
broadsilks in this district during the past month. Sales
have been limited, prompt delivery featuring almost
every order. As a result of the warmer weather, man
ufacturers of shirtings and dress goods have enjoyed
to some extent repeat business in summer fabrics, plain
weaves in satin crepe and crepe de chine comprising the
bulk of trade, with scattered calls for silk canton, charmeuse and satin canton crepes, but buying as usual
has been only against orders in hand. But so far
there has been virtually no recovery from the slump
in the silk trade that started in May, 1923.
The opening of fall lines continues to indicate a
somewhat lower level of prices than those of last year,
and such few a'dvance orders as are being received,
call chiefly for corded silks, embracing faille crepes,
bengalines, silk and wool poplins, and brocaded effects.
Despite price concessions, the market for ribbons has
been almost at a standstill, jobbers and retailers defer
ring their orders because of lack of confidence in the
future. The few orders received by mills have been
as usual for a narrow variety, although there seems to
be a brighter feeling in regard to wide ribbons f° r
millinery purposes. In consequence of this slow move
T924
T hird
F ederal
R eserve
ment of silk goods, extreme caution continues to pre
vail among both buyers and manufacturers, the for
ward commitments being unusually small, sufficient
°nly to insure mill operations for about thirty days at
the present rate of production.
Some factors report that prices on finshed products
are lower than they were either last month or a year
ago, while others state that they remain unchanged as
compared with last month. Because of a somewhat
strengthened condition in the raw silk market early in
July, quotations on yarns continue firm, even higher
than during the previous month. In most cases buyers
appear to ofifer a determined resistance to prices in all
lines, more especially in georgettes, crepe de chine, and
ribbons.
While supplies of raw materials are rather light,
stocks o f finished goods range from heavy to mod
erate, exceeding those o f last month. The supply of
labor, both skilled and unskilled, is plentiful, and
with one or two exceptions, wages remain unchanged.
Collections are generally fair, though some firms find
them slower than they were last year.
HOSIERY
Conditions in the hosiery trade are similar to those
° f a month a g o; some mills making specialties continue
to take orders for fair quantities, but the demand for
staple lines is, if anything, smaller than it was then.
Reports indicate, too, that production schedules are
lower than they were in June. Quotations for silk,
D istrict
25
silk and fibre, mercerized and cotton hosiery, for both
men and women, have in most cases decreased since
that time, but these reductions do not appear to have
stimulated the demand.
Several manufacturers of children’s and infants’
hosiery have opened their lines for 1925. In some
cases goods were shown, but no quotations given, orders
being solicited to be priced at the market at the time of
sale; in others, prices have been named and these are
about the same as they were a year ago at the opening.
The amount of business booked so far on these lines
does not appear to be important.
Total production of 337 identical establishments rep
resenting 429 mills in the United States, as is shown
in the table on page 26, decreased in May as com
pared with April, though a slight increase was recorded
for women’s hosiery. Both orders booked during the
month and unfilled orders at the end of the month
were also smaller.
In this district reports from 113 identical mills com
paring operations in June with those in May, which are
summarized in the accompanying table, show a de
crease in most of the important items. Cancellations
increased and amounted to 7.7 per cent of the pro
duction.
Thrown silk is somewhat higher than it was last
month, but after advancing sharply, buying slackened
and prices have lost some of the gain. Cotton and
mercerized yarns have been in poor request and prices
have been sagging.
HOSIERY INDUSTRY*
Third Federal Reserve District
Men’s
In dozen pairs
Full-fashioned
1 May
production...............................................
rapments during month.............................
unshed product on hand at end of month
oers booked during month.......................
TTnfiu atji°ns received during month..........
nulled orders on hand at end of month . .
June
24,721
20,366
19,833
28,633
245
48,401
26,860
24,449
17,201
23,852
200
48,743
Boys’ and
misses’
May
production....................................................
‘ upments during month.............................
uushed product on hand at end of month
ders booked during month.......................
T nfiM j t‘ons received during month..........
T
niled orders on hand at end of month . .
Preliminary report compiled by the Bureau of the Census.
Women’s
June
22,185
30,755
56,434
16,628
2,615
10,151
20,533
22,855
71,649
21,250
Seamless
Seamless
Full-fashioned
May
June
May
June
290,156
261,607
533,405
220,449
14,858
348,071
239,928
215,553
530,713
185,571
11,360
314,536
289,943
302,451
377,718
219,922
5,863
933,278
262,335
222,292
433,654
171,163
25,339
867,580
Children’s and
infants’
May
June
100,740 70,002
147,028 95,993
254,077 209,931
67,956 44,884
11,516 16,848
13,047 124,858 73,712
May
241,527
237,823
250,212
234,233
13,799
246,907
Athletic and
sport
May
4,206
6,358
13,082
3,799
1,235
1,471
June
June
246,538
239,078
252,111
181,833
12,990
171,297
Total
May
June
2,419 973,478
868,615
3,698 1,006,388
823,918
15,788 1,504,761 1,531,047
3,763
791,620
632,316
300
50,131
67,037
1,321 1,713,537 1,490,596
26
T he
B usiness
Stocks of finished hosiery are described in most cases
as either moderate or heavy and comparatively few
manufacturers state that they are lower than they were
a month ago. Wages generally are unchanged, but
in a few mills in country districts, reductions of from
5 to 10 per cent have been made in wages of skilled
labor. Collections are not as good as they were last
month and are called either fair or poor by most
manufacturers.
HOSIERY INDUSTRY*
United States
In dozen pairs
Production:
Full-fashioned, men*.....................
Seamless, men...............................
Full-fashioned, women.................
Seamless, women..........................
Boys’ and misses’ , all styles........
Children’s and infants’, all styles
Athletic and sport, all styles.......
Total production..........................................
Total shipments during month.. . ..............
Total finished products on hand, end of
month........................................................
Total orders booked during month............
Total cancellations received during month.
Total unfilled orders on hand, end of month
April
77,741
1,723,901
606,354
1,037,103
508,184
440,648
18,303
May
67,297
1,588,555
619,416
1,076,120
460,517
418,490
20,198
4,412.234
4.351,163
4,250.593
4,041.353
8,948.488
4 351,825
211,174
7,451,406
8,816 968
3,376,322
218,433
6,442,928
* Compiled by the Bureau of the Census.
UNDERWEAR
During the past month the market for underwear
has undergone a new development so far as prices are
concerned. After a long period of stagnation, largely
because of straggling duplicate orders for lightweights,
dull request for heavyweights and continued resistance
to values on the part of buyers, many large manu
facturers have lowered their prices for heavyweight
underwear. In some cases this reduction was as much
as 10 to 15 per cent below last December’s quotations,
according to the report of the National Association of
Hosiery and Underwear Manufacturers.
It is very difficult to offer an adequate explanation
for this action by manufacturers, since no reason is
given for the reduction. Very likely one of the strong
est causes has been a desire on the part of producers to
diminish their stocks, although, except for the few in
stances where supplies are reported to be moderately
heavy, stocks as a rule are said to be light, both of
finished goods and raw materials.
The fact that
extensive curtailment of production in the underwear
industry has been going on for some time seems to
minimize the strength of the argument that the drop in
prices is due to overproduction. Mills are utilizing on
the average about 52 per cent o f their plant equipment,
R eview
A ugust
though a large number of firms decreased their opera
tions as compared with the previous month.
While the effect of the revision of prices on jobbers
is reported to be favorable, extreme caution and con
servatism continue to guide local buyers, particularly
owing to the daily variation in the market quotations
for raw cotton. So far as can be ascertained, otferings of 1925 lightweight merchandise will not be opened
before the latter part of August. In the meantime,
mills, through lack of orders, are compelled further
to curtail their output for the time being.
The supply of labor is plentiful, and wages are un
changed. According to the returns from 46 establish
ments making knit goods and hosiery in this district, the
total weekly wages declined 10.3 per cent from May 15
to June 15 and the average weekly earnings for the same
period decreased 6.6 per cent. Collections are reported
to be fairly satisfactory, though in some cases they are
not as prompt as they were last year.
FLOOR COVERINGS
The demand for carpets and rugs is poor and has
shown but little improvement during the month. This
season of the year, however, is usually a time of small
sales, both in the wholesale and retail carpet and rug
trades, but the large furniture sales held in August and
September usually include a considerable quantity of
floor coverings. Producers, therefore, are more op
timistic regarding the near future.
The only changes in quotations are small advances
by several large manufacturers of Axminsters. These
increases have brought prices back to about the level of
the May openings, but so far have failed to stimulate
buying in this branch of the industry.
Mills in this district are operating at a low rate, and
the few changes reported during the month have been
towards a further curtailment of output. Manu
facturers of Wiltons appear to be working on a some
what heavier production schedule than do others, but
all are endeavoring to make only as much as they are
selling and thus prevent a further increase in their
stocks. Reports received by this Bank state that ex
cept in a few cases stocks of finished carpets and rugs
are either stationary or lower than they were a month
ago.
Carpet wools and yarns have been selling very poorly
as manufacturers are buying only for their immediate
needs. Prices, however, have held remarkably fin1
1
under the circumstances, but are slightly lower than
they were a month ago.
The accompanying chart shows that both the totaj
weekly wages and the number of employees in
identical representative mills in this district were ap'
proximately the same in March of 1923 and 1924, but
T hird
t 924
F ederal
1M I PNVADWS
4ILNNLNANJ E
L ESA NEEY
S YI
R
wk we
el as
ey g
EM PLO YM ENT A N D
ey
he
le
os
W A G E S I N CARPET A N D R U G M I L L S
TSS
HN
OD
U
A
DA
OR
LS
L
OF
5
4
8
0
PP
"]
H 7 0
3mM ■ H i l l 111 n if1I 7*6
h7
m4
m p u e f m e it
H | Nboepysyill1if W
P
r l eJ,
o
// 0
Y
'
2 H tillIfm ittillm it V‘ 4
mP
Ifif
H i
P
p
Y
fry; ft 1in 1 ■ 2
1 //s
1
p 0
m B
it
H
1 y wm i
l'
1 1 y AM M
mm
OP AM
J PM JJASO 5JFM J
N
lOO
■
■
#
|
■
1923
1924
r° m M a rch to J u n e , 1924, w ages d e clin e d 30 p er c e n t a n d u n e m p lo y
m e n t 22 p er c e n t. In c o m p a r is o n w it h th e h ig h p o in t o f 1923,
th e J u n e figu res sh o w d e clin e s o f 33.5 p er c e n t a n d
24.S p er c e n t, resp ectiv ely .
Source— Federal Reserve Bank oj Philadelphia
that conditions in the month of June of those years
were vastly different.
For linoleums the demand continues fair Manu
facturers of felt base goods are producing more than
ln any previous year and sales are scarcely as large as
putput. Makers of all grades of linoleums, plain,
J
nlaid and printed, report that their plants are running
0n full time and that stocks are small. Prices are
Practically unchanged both for raw materials and for
hnished products. For some of the former, however,
certain sellers are talking of higher figures.
Collections in the floor covering trade are fair, and
With the exception of some parts of California, all
sections of the country are maintaining their payments.
LEATHER
After a period of dullness extending over several
weeks the market for packer hides has become active.
June hides were purchased freely
Hides and skins
on the same price level as had
I
prevailed for about a month, and
y hides, which are of better quality, were then
*fght at an average advance of ]/z cent per pound
. ^
ater at a further rise o f
cent, making a total
^ain of 1 cent jn about two weeks. The stock o f
cattle hides as reported by the Bureau of the Census
a&ain decreased during May. This was the twelfth
consecutive monthly decline. Stocks shrank from
o,346,769 hides on May 31, 1923, to 4,121,777 hides
°n May 31, 1924, a decrease of 35 per cent. It is in
teresting to note that in spite o f this situation the price
° i hides is slightly below that of a year ago.
Chicago packers’ calf skins also have advanced some
R eserve
D istrict
27
what, owing in part to an export demand. Packers
are asking 21J4 cents as compared with sales a month
ago at 20 cents. Last reported sales were at 21 cents,
but, as stocks were sold up closely to July 1, the sellers
are in a strong position.
Quotations for sheep and goat skins are lower. The
latter are in poor request because of the curtailed pro
duction of, and light demand for, kid leather.
Throughout the past month the demand for leather
has been only moderate, but some tanners report that
it has been increasing since the
Leather
beginning of the third week in
July. Export as well as domestic
orders for both heavy and upper leathers are increasing.
Though prices in many cases still favor the buyer, they
have been more strongly maintained than in recent
months. This is especially true of heavy leathers and
their position has been helped not only by an active and
advancing raw hide market, but also by the continued
reduction in the stock of finished leather. Patent
leather is in fair request, and calf leather, both in men’s
and women’s weights, is selling better.
The accompanying table shows that in May produc
tion of most leathers was again smaller than it was in
the previous month, and that, as compared with the
output of May, 1923, the change was quite marked.
Stocks of finished leathers are showing the effect of
this curtailment, as the figures indicate. A notable
exception to this is kid leather, of which fhe stock is
considerably larger than it was a year ago, despite a
large reduction in output.
HEAVY AND UPPER LEATHERS*
Production dur
ing May com
pared with
April,
1924
May,
1923
2.2% - 31.4%
Backs, bends and sides...
Belting butts.................. + 9.4 “ -2 0 .1 “
Offal................................. — 3.5 “ - 40.0 “
Cattle, side, upper.......... + 1.5 “ -4 1 .8 “
Calf and kip.................... — 5.9 “ - 32.0 “
.9 “ - 27.5 “
Goat and k id ................. —
19.0 “ - 13.2 “
Cabretta...........................
Stocks at end
of May com
pared with
April,
1924
- 1.8%
+ .6 “
+ 1.5 “
- 2.9 “
- 2 .1 “
+ 1.3 “
- 2 .1 “
May,
1923
+
+
-
7.7%
3 .0 “
14.6 “
1 .7“
16.2 “
12.4 “
17.6 “
* Compiled from figures furnished by the Bureau of Census.
According to our survey, employment and wages in
the tanning industry in this district have again de
creased. For the week ending June 15, the number
of wage earners declined 7.5 per cent, total wages paid
fell 8.3 per cent and average weekly earnings 0.8 per
cent, as compared with those of the week ending
May 15.
T he
28
B usiness
During the first week in July a number of shoe fac
tories in this district were, as usual, closed for inven
tory, repairs and holiday. Since
Shoes
this time, business, though dull,
has improved and the majority of
manufacturers reporting to this Bank state that unfilled
orders have increased. It is also stated that shoe fac
tories in New England have booked fair-sized orders
and have increased their operations. Prices of highgrade shoes for both men and women vary from un
changed to slightly lower, but larger reductions have
been made in the medium and lower grades of footwear.
Oxfords are said to be on the increase in the new orders
for women, but at this time of year, when shoes for
autumn are being bought, this is quite usual. It may
be, however, that since the pump has been in vogue for
several years, manufacturers have pretty well exhausted
the styles and can produce more novelties in oxfords.
Calf leather in black and the lighter shades of tan and
patent leather are the leading materials used.
R eview
A ugust
In the Third Federal Reserve District production
during June, as reported by 113 identical factories, was
11.5 per cent less than in May. The preceding table
gives the details of this production.
Employment and wages in 28 factories in this dis
trict were lower on June 15 than on May 15; employ
ment dropped 7.3 per cent, total weekly wages paid
decreased 9.3 per cent, and average weekly earnings
2.1 per cent. In the following chart is depicted the
course of employment and wages in 25 factories sit
uated in Pennsylvania and New Jersey from January,
1923 to June, 1924. The high point in employment
corresponds with the peak of production in March,
1923, but wages continued to rise until August. Col
lections are fair, the number of reports of poor collec
tions being the smallest for a number o f months.
PRODUCTION OF SHOES*
United States
In pairs
1922
1923
January...........................
February.........................
March.............................
April................................
May.................................
25,119,911
24,551,253
29,350,306
26,851,512
26,227,462
30,743,740
30,300,606
35,836,219
31,867,776
30,926,004
26,497,156
26,831,908
28,864.463
27,846,844
25,090,447
Total....................... 132,100,444 159,674,345
135,130,818
1924
* Figures compiled by Department of Commerce.
Production of shoes in the United States continues
to fall behind that of last year, but compares favorably,
except in March and May, with that of 1922, as the
above table proves.
BOOT AND SHOE PRODUCTION*
Third Federal Reserve District
Number of pairs
June
Boots and shoes, total................................. 1,446,065
High and low cut (leather) total................ 1,328,878
Men’s ......................................................... 109,703
Boys’ and youths’ ..................................... 171,026
Women’s .................................................... 217,622
Misses’ and children’s .............................. 463,820
Infants’ ...................................................... 366,707
All other leather or part leather footwear f 117,187
May
1,633,802
1.502,671
116,375
174,461
269,930
481,669
460,236
131,131
* Preliminary report compiled by the Bureau of the Census,
t Includes athletic and sporting shoes (leather), shoes with canvas, satin,
and other fabric uppers, slippers for house wear, and all other leather or part
leather footwear.
E m p lo y m e n t in J u n e , 1924, w as 14.3 p er c e n t b e lo w th e h ig h leve.
a tta in e d in A u g u s t, 1923. W ages d e clin e d m o r e d ra stica lly ,
h o w e ve r, b e in g 24.9 p e r c e n t b e lo w t h e p ea k o f
M a rch , 1923.
Source—Federal Reserve Bank of Philadelphia
Business at wholesale continues to fall behind that
of a year ago. Sales in June were smaller than in
May or in June, 1923, as is shown on page 10.
At retail, sales are holding up well, and, though they
cannot be expected to be as large as those in June, they
probably will compare favorably with those of July*
1923. Special sales are being held and are producing
satisfactory results. Retailers report that they are able
to obtain concessions ranging from 2 to 10 per cent on
recent purchases and some firms have been buying
more freely for the early autumn trade. At the present
time, white shoes for both men and women have been
selling well, and patent and satin for women and tan
calf for men are in good request. For women, cut-outs
are losing their popularity and comparatively few arc
being bought for autumn, colonial and strap pumps ana
oxfords being more desired. Sales during June were
T hird
j 924
F ederal
R eserve
larger than in May or in June, 1923, and stocks were
smaller than they were in the previous month, but
slightly larger than on June 30, 1923.
RETAIL SHOE TRADE
Third Federal Reserve District
b
NET SALES (in terms of dollars):
June, 1924, as compared with M a y , 1 9 2 4 .....................
June, 1924, as compared with June, 192 3 .....................
2.
D istrict
29
pre-war year of 1914. Our exports of newsprint for
the first half of 1924 were only 1/3 as large as for
the same period of 1914, those of book paper about J4 as
large as in the first half of 1914, and exports of wrap
ping paper about twice as large as in that period. As
the following chart shows, the exports of these three
grades of paper reached their highest point in the
first six months of 1920 and then slumped severely
in the years following.
+ 5 .8 %
-2 .5 “
STOCKS (selling price):
June, 1924, as compared with M a v , 1 92 4 .....................
June, 1924, as compared with June, 1 92 3 .....................
3* RATE OF TURNOVER (times per year based
on cumulative period):
January 1 to June 30, 192 4 .................................................
January 1 to June 30, 192 3 .................................................
- 5 .9 %
+ 4.3“
2.4
2.6
A umber of stores reporting above items:
on
PAPER
The majority o f paper manufacturers report that the
summer dullness is more pronounced than usual and
that on the whole business is not as good as it was in
June. The demand is characterized as being fair or
P°or and much lighter than it was in July, 1923. Book
aud fine papers which, until June, were selling in fair
volume, are now moving rather slowly. There has
been little change in the request for wrapping and kraft
Papers and most mills are producing only about 65 per
cent of their capacity output. Toilet tissues and crepe
towels continue to sell in fair volume, the production of
the mills being unchanged at about 75 per cent. Wall
Paper manufacturers have booked many orders for
their fall goods, but the orders received are not as
arge as they were a year ago. Most factories making
WaH paper are operating at close to capacity. The de
mand for building papers, building boards, and boxcards is poor and lighter than it was last month.
Glazed papers are in fair demand and so are blue
Papers. Envelope makers state that business is fair
Dr this season of the year, although their factories
are operating at only 60 per cent. The majority of
Paper mills in this district have only a few days’ busiuess on hand and they are operating at only about
per cent of capacity. A few have nearly thirty
^ays’ business ahead, but these are exceptions.
Distributors report that their sales are smaller than
those of July, 1923, and that the demand at present is
barely fair. As is shown in the table on page 10
wholesale paper sales in June were smaller than those
of June, 1923.
Paper export statistics show that our trade with
foreign countries has not increased from that of the
E xports o f p a p er fo r th e first h a lf o f 1924 s h o w a b ig d ecrease fr o m
th o s e fo r th e first six m o n t h s o f 1920 a n d n e w sp rin t exp orts were
b a re ly o n e -t h ir d as large as in th e first h a lf o f 1914.
B ook paper exp orts are a b o u t o n e -h a lf th o s e o f
1914, b u t w ra p p in g p a p er s h ip m e n ts
are n ea rly tw ice as large.
Source— Department of Commerce
Except on wrapping paper, mill prices are generally
firm and only distress lots in the open market are
offered at concessions. Some weakness is apparent
in prices of wrapping papers, but it is not very marked.
Mechanical and chemical pulps are firm in price and
are selling at the same quotations as in June.
Both finished stocks and supplies of raw materials at
the mills are moderate in size and show little change.
Skilled and unskilled labor is plentiful and a slight
trend downward in wages is apparent. Collections are
fair and practically the same as last month.
PAPER BOXES
Although some box makers report that the demand
is fair, the majority state that it is poor and below
normal for this season of the year. The volume of
orders booked is smaller than that of June and con
siderably less than that of July, 1923. The candy
trade, which normally begins placing orders for the
Christmas trade in the early summer, has as yet made
practically no commitments and consequently candy
box makers have little business on hand. Knitted goods
lines, such as hosiery and sweaters, and the shirt in
dustries are buying lightly. Hardware and electrical
T he
30
B usiness
A ugust
R eview
that it is not as strong as it was at this time last month
or a year ago. Most of the orders now on the books
are for delivery within 60 days, though a substantial
volume is for up to and beyond 90 days. Manufac
turers reporting to this Bank consider from 44 to 5a
hours per week as full running time, and on this
basis the average rate of operations is calculated to
be about 60 per cent of capacity. On the other hand
a few producers are not operating at all, either because
of no orders or on account of their ability to supply
customers with cigars from stocks on hand.
Quotations, in general, are firm though one producer
reports that price cutting is not uncommon and that
this practice has caused some resistance to present
prices. In practically every instance, however, listed
quotations for both finished goods and raw materials
are the same as they were a month ago. Stocks are
from light to moderate and are decreasing. The sup
ply of all classes of workers is either sufficient or
plentiful and no wage changes have been made so
far this month. Reports to this Bank from 23 cigar
factories, located in Pennsylvania, New Jersey, and
Delaware, showed that the number of employees de
clined 2.2 per cent between May and June, but that dur
ing the same period total weekly wages increased 0.3
per cent and average weekly earnings 2.6 per cent.
Collections are fair but are not as prompt as they
were at this time last month or in July, 1923.
supply manufacturers are purchasing from hand-tomouth only and are taking fewer boxes than they
have for months. The foodstuffs, soap and perfume
industries are at present buying sizeable quantities and
they are the principal buyers of news and chipboard
boxes. The demand for folding boxes is lighter than
in any previous month o f the year. An average of
the reports made to this bank shows that the news and
chipboard box factories are operating at about 60 per
cent of capacity. Producers of corrugated boxes and
fibre shipping containers state that the call for their
products is poor or fair. Corrugated box plants are
operating at about 55 per cent and fibre box plants at
80 per cent. The latter are principally engaged on
orders from canners. The majority of box makers
have less than thirty days’ business on hand and many
are working on a day-to-day basis.
Price cutting is severe in all branches of the industry
and consequently box prices remain weak. Although
the majority of box makers report that their prices
are the same as a month ago, a few state that they
have lowered their quotations. Nominally quotations
on newsboard, chipboard, strawboard, jute liner, and
container board are unchanged, but buyers are able to
obtain concessions on all of these grades.
Supplies of raw materials are moderate, while stocks
of finished boxes vary from light to moderate and are
stationary. Both skilled and unskilled labor is plen
tiful. Wages of skilled labor are unchanged, but a
few manufacturers report a reduction o f 10 to 20 per
cent in the wages of unskilled help. Collections are
fair and about the same as a month ago, but slower
than in July, 1923.
AGRICULTURE
Favorable weather and good growing conditions in
most parts of the district have improved crop develop
ment considerably, but all crops are late. However,
in many of the elevated, heavy soil counties of Penn
sylvania, notably Clearfield, Huntingdon, Northumber
land, Berks, and Clinton counties, excessive rainfall
has prevented proper cultivation and the fields are
very weedy. The proper curing o f hay has been
CIGARS
Reports received by us regarding the demand for
cigars are very evenly divided between the classifica
tions o f good, fair and poor, but most o f them agree
CROP YIELDS
State
Pennsylvania.
New Jersey. .
Pennsylvania
New Jersey. .
Pennsylvania
New Jersey. .
Pennsylvania
New Jersey. .
Pennsylvania
New Jersey. .
Pennsylvania
New Jersey.
Condi
tion
per
cent
normal
July 1
Crop
Com
U
Winter wheat
u
a
Oats
U
Rye
U
White potatoes
U
U
Tobacco
Sweet potatoes
73
74
86
89
87
88
91
93
84
88
78
80
Production (ooo’s omitted)
1924
Estimated
from July 1
condition
1923
10 year
average
52,948 bushels 61,640 bushels 64,928 bushels
8,134
10,673
9,440
20,692
24,356
24,168
1,480
1,333
“
1,523
32,780
39,062
33,930
1,632
1,968
2,202
3,908
3,655
3,313
1,203
1,157
1,096
26,145
22,546
24,573
9,442
10,940
“ '
7,600
52,800 pounds 58,950 pounds 56,105 pound*
2,232 bushels 2,196 bushels 2,417 bushels
1924
T hird
F ederal
R eserve
D istrict
3i
FRUIT PRODUCTION
Production (000’s omitted)
rr
Crop
State
Pennsylvania.........................................................................
Delaware.
New Jersey........
Pennsylvania.........................................................................
Delaware.................................................................................
New Jersey.......................
Pennsylvania.........................................................................
.............................
Delaware.......
New Jersey.............................................................................
1924
Estimated
from July 1
condition
Apples (Commercial crop) 1,256 barrels
369
“
“
“
“
U
It
u
609
“
Peaches............................. 1,856 bushels
U
239
“
((
2,641
Pears.................................
U
363
“
l(
707
“
1923
1922
1,266 barrels
340
“
470
“
1,907 bushels
225
“
2,642
“
370
662
“
“
552 barrels
2,000 bushels
405
“
Elberta varieties. The peach crop should be larger
difficult in these regions and although the cuttings
have been heavy, some o f the crop may not be fit than in 1923 and much greater than an average crop.
for feeding purposes. Farm bureaus report that the A big pear crop, which will exceed that of 1923 in
Per acre yields of winter wheat, rye and oats will size, is also indicated. Except for the early varieties,
compare favorably with those o f last year and the
which do not promise as large a yield as last year, the
ten-year average. But production is not expected to apple harvest will be heavy and larger than that of
equal that of 1923, because the acreage planted to
1923 or an average crop.
these grains is smaller than it was last year. The
Tame hay is in excellent condition and judging
harvest of these crops began about ten days late and
from the prospects on July 1 a bumper crop should
Wlll probably not be completed until the end o f July;
be harvested this year. The stand and growth on
the quality of that grain which has been harvested is July 1 was above the average for that date during
Rood. The condition of the corn crop on July 1, the past ten years and nearly twice as good as on
throughout the district, was the poorest it has been July 1, 1923. Pastures are bountiful and grazing
0 that date at any time in the past ten years. It was conditions are almost ideal. To the dairying industry
11
about three weeks behind normal development and in these are factors of prime importance, as most mill
many districts the stand was poor and uneven. Pota
feeds have recently advanced sharply in price and
toes, although late, too, show a good stand and healthy
abundant roughage and pastures will allow dairymen
growth; from the condition on July 1 the yield per to reduce their feed rations. This in turn means a
acre should be larger than it was last year. Garden better return to dairy farmers.
truck crops, especially tomatoes and lima beans, will
In most parts of the district dairy cattle, sheep and
n°t be as plentiful as last year, because of the poor
lambs, and hogs are now in normal condition for this
start at the beginning o f the season and poor seed
season o f the year. Calves and heifers, and horses
germination. Sweet potatoes in New Jersey have been
and colts are slightly below normal, but they are de
considerably injured by black rot which has developed
veloping rapidly because of the fine grazing now
raPidly, being favored by excessive moisture.
prevailing. The number of hogs on the farms of
The estimated yields of the important grain and this district is now probably 5 per cent less than it
truck crops, based upon condition on July 1, are given
was a year ago.
Harvest hands and farm laborers are more abun
V
ta^ e on Page 30, and it will be noted that only the
New Jersey oats and white potato crops are expected
dant than they were in July, 1923, although in a few
t° be larger than in 1923. In general, the grain and counties some scarcity is still reported. Farm wages
truck crops of this district will not be as large as they are fully 10 per cent lower than they were a year ago
Were last year.
and our reports from New Jersey farm bureaus state
Tush fruits, especially raspberries and blackberries, that it is now possible to secure day laborers at 35 cents
afe plentiful and county agents estimate that the crop per hour, whereas in last July men could be secured
Melds will be 10 per cent larger than in 1923 and above only with difficulty at 40 and 45 cents per hour.
the average. A very heavy peach crop is in prospect
Despite the indicated smaller yields of many impor
tant crops, the agricultural outlook in the Third Fed
and growers have been obliged to thin out the fruit
°u the trees severely, especially on the Carman and eral Reserve District is, in general, good.
C O M P IL E D AS O F J U L Y 22. 1924.
T he
32
B usiness
A ugust
R eview
BUSINESS INDICATORS
Third Federal Reserve District
Latest com pared with
The following data refer to the Third Federal Reserve District
except where otherwise noted
June, 1924
Latest month
May, 1924
Month ago
June, 1923
Year ago
Previous
month
Year
ago
Retail trade—net salesf (151 stores)........................ 823,235.000
818,713,000
Apparel (45 stores).................................................. $3,132,000
$546,000
Shoe (22 stores).......................................................
$844,000
Credit (21 stores)....................................................
$24,090,000
819 044 000
$3,432,000
$516,000
$1,098,000
$25,115,000
820 377 000 1
$3,239,000
$560,000
$939,000
- 3.5%
- 1.7“
- 8 .7 “
+ 5 .8 “
-23.1 “
- 7.5%
- 8.2“
- 3.3“
- 2 .5“
-10.1 “
Wholesale trade—net sales (167 firms)..................... $10,637,308
$318,700
Boots and shoes (13 firms)....................................
Drugs (15 firms)...................................................... $1,409,464
890S.011
Drvgoods (19 firms)................................................
8496.915
Electrical supplies (7 firms)....................................
Groceries (57 firms) ............................................... $4,191,973
Hardware (30 firms)................................................ $2,132,854
$426,603
Jewelry (14 firms)....................................................
$752,788
Paper (12 firms)......................................................
$11,045,857
$366,070
$1,459,673
$991,841
$527,293
$4,113,423
$2,277,194
$404,691
$905,672
$11,909,895
$398,826
$1,407,710
$1,145,492
$625,342
$4,504,417
$2,346,614
$509,444
$972,050
- 3.7 «
-12.9 “
- 3 .4 “
- 8 .5 “
- 5 .8 “
+ 1.9“
- 6 .3 “
+ 5 .4 “
-16.9 “
-1 0 .7 “
-20.1 “
+ 0.1 “
-2 0 .7 “
-20.5 “
- 6.9“
- 9.1 “
-1 6 .3 “
-22.6 “
Production:
(113 factories!.............................................
Pig iron.....................................................................
Trnn ca stin g s
(43 foundries')...................................
Cement.....................................................................
Anthracite................................................................
Bituminous coal (Central district— percentage of
full-time output)..................................................
Active cotton spindles (Pennsylvania and New
Jersey) ..................................................................
1,446.065 prs.
147,746 tons
868.615 doz. prs.
7,004 tons
3,372 tons
3,301,000 bbls.
7,704,000 tons
1,633,802 prs.
188,246 tons
973,478 doz. prs.
7,708 tons
3,195 tons
3,463,000 bbls.
7,745,000 tons
41.0%
4,842,948 lbs.
42.3%
5,915,531 lbs.
530,468
Distribution:
Freight car loadings (Allegheny district—weekly
186,884
average)................................................................
Tonnage of vessels—foreign trade (port of Phila1,250.000
delphia).................................................................
1,078,000
‘ Exports of wheat (from port of Philadelphia)........
6,109.000
Exports of flour (from port of Philadelphia)........
Imports of crude oil (into port of Philadelphia). . . 12,264,000
-45.9 “
+ 4 .6 “
-11.1 “
- 3.1 “
-18.1 “
64.6%
-3 6 .5 “
tons
bus.
lbs.
gals.
583,615
- 4 .7 “
- 9.1 “
1S4.020
General:
$1,773,844,000
Debits (18 cities).....................................................
81
Commercial failures................................................
$1,323,953
Commercial failures—liabilities.............................
Building permits (15 cities)................................... $16,301,548
Building contracts awarded (Philadelphia district) $40,247,900
Emplovment—number of wage earners (1,009
plants in Pennsylvania, New Jersey and Dela365,668
Average weekly earnings (366,000 wage earners in
$25.21
Pennsylvania, New Jersey and Delaware)........
3,155.000 bbls.
8,665,000 tons
-1 1 .5 “
-2 1 .5 “
-1 0 .8 “
- 9.1 “
+ 5.5 “
- 4 .7 “
.5 “
556,593
Financial:
Loans, discounts and investments of member
banks (weekly average)...................................... $949,400,000
Bills discounted held bv Federal Reserve Bank of
Philadelphia (daily average).............................. $30,117,000
Acceptances executed (12 banks for month ended
10th of following month).................................... $3,767,000
Bankers’ acceptances sales (5 dealers—weekly
average for period ended middle following
$19,000
month)..................................................................
$12,822,.500
Commercial paper sales (5 dealers).......................
Savings deposits (97 banks)................................... $53.3,806,000
* Bureau of Census preliminary figures,
t Estimated.
273,231 tons
226,123
+ 1.6“
-1 7 .4 “
-10.3 “
-60.4 “
+66.6 “
+ 10.8 “
-1 6 .5 “
-1 8 .8 “
+55.3 “
-63.5 “
1.394.000
2,722.000
3.667.000
11,068,000
tons
bus.
lbs.
gals.
1.497.000
1.328.000
3,934.000
33,568,000
tons
bus.
lbs.
gals.
$947,400,000
$937,500,000
+ 0 .2 “
+ 1.3“
$32,946,000
$70,473,000
- 8 .6 “
-57.3 “
$2,827,000
$3,757,000
+33.3 “
+ 0 .3“
$324,000
$9,835,000
$531,125,000
$2,211,000
$7,940,000
$495,924,000
-94.1 “
+30.4 “
- 0 .5 “
-99.1 “
+61.5“
+ 7 .6“
$1,894,928,000
55
$1,283,641
$16,363,575
$44,687,800
379,850
$26.10
$2,083,113,000
60
$1,074,915
$13,080,171
$23,779,900
- 6 .4 “ -1 4 .8 “
+47.3 “ + 35.0“
+ 3.1 “ +23.2 “
.4 “ + 24.6 “
- 9 .9 “ + 69.3“
- 3 .7 “
-
3.4 “
@FedFRASER