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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA * RESERVE DISTRICT FEBRUARY i, i 9 z 6 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA B U SIN E SS Production and distribution of com modities was in larger volume in Decem ber than in November, and the volume of retail trade was larger than in any previ ous month. Wholesale prices declined to the level prevailing last spring, which was the low point for the year. Production., The Federal Reserve Board’s index of production in basic in dustries advanced 6 per cent in December to the highest level in ten months. The rise in this index has been nearly con tinuous since last August, when the vol ume of production was at the low point for 1925. In December the production of iron and steel and bituminous coal and factory consumption of cotton increased considerably and the production o f lum ber, cement, and copper was maintained at relatively high levels. The volume of factory employment and payrolls, after increasing during the late summer and autumn months, continued practically un changed in November and December with increases in some important industries off setting seasonal declines in others. Build ing contracts awarded during December were the largest recorded for that month and exceeded in value those awarded in November, although a seasonal decrease in building activity usually occurs at that time o f the year. PER CENT dU O W H O LESA LE C O N D IT IO N S IN T H E U N IT E D Trade. Sales at department stores and chain stores and mail-order houses in De cember indicated the largest volume of Christmas trade on record. Trade at wholesale declined seasonally, but con tinued larger than last year. Stocks at department stores showed less than the usual decline in December and were 4 per cent larger at the end of 1925 than a year earlier. Freight car loadings continued large during December with shipments of merchandise and miscellaneous commodi ties, coke and coal particularly heavy. STATES weeks of January quotations on hogs, coke, and hardwood lumber advanced, while prices o f corn, cattle and rubber declined. Prices. The general level of prices, as measured by the wholesale price index of the Bureau of Labor Statistics, declined by about 1 per cent in December and was at the end o f the year somewhat lower than a year earlier. The average of wholesale prices for the year 1925 as a whole, however, was the highest in five years and the changes in the price level during the year were smaller than in any year in more than a decade. Among agricultural commodities the prices of livestock and dairy products declined in December, while grain prices advanced. Among non-agricultural commodities the principal declines were in the prices of cotton goods, paper, and rubber, while somewhat higher prices were shown for silk, coal, and lumber. In the first three Bank credit. Changes in the demand for currency have been the principal fac tor influencing the volume of Reserve Bank credit in use since the middle of November. During the five weeks be tween November 18 and December 23 the Reserve Banks paid out into domestic circulation a net amount of about $320,000,000 of currency in the form of gold and gold certificates, Federal reserve notes, and other kinds o f money, and during the following four weeks the re turn flow o f currency from circulation amounted to about $430,000,000. These currency movements were reflected in corresponding changes in the volume of reserve bank discounts for member banks. At member banks in leading cities total loans and investments, which had increased almost continuously during 1925, reached the highest level on record at the end o f December, but declined by about $200,000,000 during the first two weeks of the new year. Both the in crease in bank loans in the latter part of December and the decline after the turn o f the year were largely in loans on Index of 22 basic commodities corrected for seasonal variation (1919 = 100). Lastest figure— December, 122. Index of sales of 333 stores in 117 cities (1919 = 100). Latest figures, DecemberAdjusted, 142: Unadjusted, 228 P R IC E S 150 lOO 50 1922 1923 1924- 1925 Index of U. S. Bureau of Labor Statistics (1913 — 100, base adopted by Bureau). Latest figure— December, 156. Page One securities, particularly at member banks in New Y ork City. These changes in the demand for loans at member banks were related both to the changes in cus tomers’ currency requirements and to endof-year disbursements by many indus trial and financial institutions. Conditions in the money market, which had become firmer in the last half of December, were easier in January. Rates on bankers’ acceptances increased follow ing the advance in the buying rate of the New Y ork Federal Reserve Bank effec tive January 8, while rates on commer cial paper showed little change during the period. B U SIN E SS C O N D IT IO N S IN T H E P H IL A D E L P H IA F E D E R A L R E SE R V E D IST R IC T Although business in many lines has experienced the usual end of the year recessions the general rate of activity continues to be well ahead of that of the same period a year ago. Christmas trade at the retail stores of the district was in record volume and was 3.5 per cent larger than in December, 1924. December whole sale business in electrical supplies and jewelry showed substantial gains over last year, but sales of shoes, dry goods and paper were smaller and the total vol ume of wholesale trade was slightly less than in 1924. Railroad freight ship ments continued their decline from the seasonal peak in October, but were 3.8 per cent ahead of last year. Debits to individual accounts also reached record totals in December, being 7.9 per cent higher than in the same month of 1924. Trade naturally has quieted down during January but the present business outlook continues favorable. The construction industry has con tinued to show up most favorably as compared with the year before. Build ing contracts awarded in the Philadelphia Federal Reserve District in December showed a 32.9 per cent gain over the previous year, and for the year 1925, contract awards in the district amounted to $406,470,037 as compared with $339,421,743 in 1924. Changes in manufacturing activity in the district are reflected in the reports on employment and wages collected by this bank. In December, 1,252 reporting plants showed an employment increase of 1.3 per cent and a gain o f 4.1 per cent in total wage payments. Preliminary reports received from a fraction of these firms, however, indicate that employment, after a steady increase since August, fell off slightly in January. Conditions among the industries of the district seem to be most satisfactory in the metal trades. Demand for steel prod ucts is good, with higher prices in a few lines and iron and steel production has continued to expand. Unfilled orders of the Steel Corporation were 451,584 tons Page Tzvo Latest figure compared with B U S IN E S S IN D I C A T O R S Philadelphia F ed eral R e se rv e D istrict December, 1925 Previous month salesf (148 stores)................................... Department stores (65)..................................................... Apparel stores (38)............................................................ Shoe stores (27).................................................................. Credit stores (18)............................................................... Year ago R etail trade — net $35,916,000 $29,199,000 $4,981,000 $752,000 $984,000 + 39.6 % + 42.4 “ + 28.0 “ + 24.9 “ + 33.5 “ + 3.5% + 1.0 “ + 21.2 “ + 10.9 “ - 1.8 “ W h o le sa le trade — net $11,444,657 $308,885 $1,661,784 $886,257 $996,177 $3,773,916 $2,121,359 $916,554 $779,725 + 5.0 - 6.0 + 7.6 -1 6 .6 + 34.9 - 3.7 + 7.7 +71.1 - 3.6 - 3.5 -1 5 .2 + 2.3 -1 6 .0 + 10.2 - 8.2 + 2.2 + 9.5 -1 2 .6 sales (150 firms)............................... Boots and shoes (11 firms)................................................ D ru gs (14 fir m s ) ................................................................ Dry goods (16 firms)......................................................... Electrical supplies (7 firms).............................................. Groceries (5f firms)........................................................... Hardware (29 firms).......................................................... Jewelry (10 firms).............................................................. Paper (12 firms)................................................................. “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ P rod u c tion : Pig iron............................................................................... Hosiery* (134 mills).......................................................... Iron castings (33 foundries).............................................. Cement............................................................................... Anthracite........................................................................... Active cotton spindle hours (Penna. and N. J .)............. Electric power (13 systems).............................................. prs. 1,138,158 tons 309,495 doz. prs. 1,147,960 tons 4,640 tons 6,838 bbls. 3,053,000 tons 224,000 tons 12,835,000 lbs. 7,476,853 132,674,087 KWH 281,725,000 + 0.6 “ + 4.2 “ - 4.1 “ - 0.5 “ + 14.7 “ -1 1 .7 “ + 4 8 .3 “ + 4 .7 * + 4.7 “ + 16.8 “ + 5.7 “ + 5.9 “ - 9 6 .9 “ - 7.9 + 2.0 + 18.4 + 18.0 + 54.7 + 3.8 - 2.4 - 2 8 .5 + 8.9 + 17.3 - 6.1 “ + 7.9 “ + 50.9 “ + 17.0 “ D istrib u tion : Freight car loadings (Allegheny district—weekly average) Tonnage of vessels (Port of Philadelphia)...................... Exports of wheat (from Port of Philadelphia)................ Exports of flour (from Port of Philadelphia).................. Imports of crude oil (into Port of Philadelphia)............ tons bus. lbs. gals. 185,728 3,001,235 3,186,153 7,187,805 19,757,165 “ “ “ “ “ “ “ “ “ “ F in a n cia l : Loans, discounts and investments of member banks (weekly average)............................................................ Bills discounted held by F. R. B. of Phila. (daily average) Acceptances executed (11 banks for month ended Jan. 10).......................................................................... Bankers’ acceptances sales (5 dealers— weekly average for period ended middle following month).................. Commercial paper sales (6 dealers)................................. Savings deposits (98 banks).............................................. $1,107,100,000 $59,411,000 + 0.4 “ + 11.3 “ $3,576,000 - 1 6 .7 * - 1 6 .5 “ $1,510,000 $7,840,000 $588,090,000 - 7 ,2 “ + 67.3 “ + 3.2 “ + 53.6 “ + 16.2 “ + 6.0 “ + 4.5 “ + 61.7 “ G e n e r a l: Debits (18 cities)............................................................... Commercial failures—number.......................................... Commercial failures—liabilities........................................ Building permits (16 cities).............................................. Building contracts awarded (Philadelphia district)....... Employment— (1,252 plants in Penna., N. J. and Del.:) Number of wage earners............................................... Total wages........................, .......................................... Average weekly earnings............................................... Sales of life insurance (Penna., N. J. and Del.)............. *Bureau of Census preliminary figures, $2,678,503,000 92 $2,649,331 $14,653,258 $23,781,181 + 19.3 + 87.8 + 162.0 -1 9 .8 + 4.9 “ “ “ “ “ + 7.9 - 7.1 + 46.2 + 14.7 + 32.9 “ “ “ “ “ 437,501 $11,753,503 $26.87 $87,944,000 + 1.3 + 4.1 + 2.7 + 14.7 “ “ “ “ + + + - “ “ “ “ 4.3 5.8 1.4 1.8 f Estimated. greater on December 31 than a month previous. Soft coal and coke are meet ing with increased demand at rising prices both from domestic and industrial consumers. The silk industry continues the most active among the textiles although cotton goods are also selling well. The call for wool goods is seasonally slack. The market for full-fashioned silk hosiery remains excellent but other grades are in only moderate demand. Conditions in the underwear trade are fairly satisfac tory, but clothing and floor coverings are experiencing mid-season dulness. De mand for shoes and most grades of leather has improved recently and is bet ter than a year ago. important cities with those of the previ ous month and of December, 1924. Fac tory wage payments, debits and retail sales, in all instances, showed seasonal improvement in December, and in nearly all of the cities increases also occurred as compared with the same month of 1924. Improvement is especially notice able in the Philadelphia, Wilmington and Trenton areas. In the Scranton and Wilkes-Barre areas debits and retail sales were smaller than they were last year, reflecting the effects o f the anthra cite strike, although in the latter city factory employment and wage payments were larger than in December, 1924. City conditions. The widespread im provement in business throughout the dis trict is shown in the accompanying table which compares December conditions in Loans at member banks in Philadel phia, Camden, Scranton and Wilmington were 9.5 millions higher on January 13 than on December 16. All o f this in- F IN A N C IA L C O N D IT IO N S crease was in loans on securities as a slight decline took place in commercial loans. In this same interval, net deposits increased 10.7 millions and investments were reduced by 3.1 millions. Commer cial loans are only very little higher than they were a year ago, but loans on securi ties have risen 97.1 millions and net de posits, 62.4 millions. Bills discounted held by the Federal Reserve Bank of Philadelphia on Janu ary 20 were 21.5 millions below the figure o f four weeks before, a development which is usual after the Christmas season. Federal reserve note circulation declined 25.7 millions, but total deposits gained 8.2 millions and a slight rise in reserve cash also occurred. The reserve ratio on January 20 was 76.8 per cent, as against 72.1 per cent on December 23 and 82.7 per cent on January 21, 1924. Commercial paper. Reports regard ing the market for commercial paper in Philadelphia are mixed, some dealers finding sales fairly good and others meet ing with little business. A 4^4 per cent rate is wanted in most instances and paper which yields 4j4 per cent attracts few purchasers. The supply of paper is smaller than is usual at this time o f .the year. The sales of six dealers amounted to $7,840,000 in December, 1925. as com pared with $6,747,500 a year before. Of the amount sold in the latest period $3,395,000 was purchased by Philadelphia banks. These reports also indicate that approximately 84 per cent o f the sales in that month were made at 4j4 per cent; 8 per cent were made at 4 % per cent and Comparison of stocks Comparison of net sales R E T A IL T R A D E Philadelphia F e d eral R eserv e D istrict Dec., 1925, with Dec., 1924 Jan. 1 to Dec. 31, 1925 Dec. 31, 1925, Dec. 31, 1925, with with with Jan. 1 to Dec. 31, 1924 Nov. 30, 1925 Dec. 31, 1924 Percentage of sales to average stocks from Jan. 1 to Dec. 31 1925 1924 All reporting firms............... + 3.5% + 2.1% + 2.1 % -1 6 .0 % 3.52 3.49 All department stores. . . . . . in Philadelphia................. outside Philadelphia........ + 1 .0 “ + 1 .0 “ + 1 .0 “ + 0.3 “ + 0.5 “ + 0.0 “ + 0 .1 “ + 2.6 “ - 4.0 “ -1 6 .1 “ -1 4 .3 “ -1 9 .1 “ 3.46 3.89 2.78 3.45 3.92 2.73 All apparel stores................. Men’s apparel stores........... in Philadelphia................. outside Philadelphia........ Women’s apparel stores. . . . in Philadelphia................. outside Philadelphia........ + 21.2 + 5.7 + 7.0 + 3.3 + 11.4 + 11.7 + 10.0 + 11.7 + 3.8 + 0.8 - 0.9 + 7.2 + 7.7 + 4.9 + 16.5 + 0.3 + 4.5 - 3.4 + 8.9 + 11.0 + 0.6 -1 7 .3 -1 2 .4 -1 2 .6 -1 2 .2 -1 9 .3 -1 8 .3 -2 3 .5 4.28 2.35 2.79 1.95 5.31 5.64 3.96 4.23 2.27 2.63 1.93 5.18 5.59 3.64 “ “ “ “ “ * “ Credit houses........................ - Shoe stores............................ + 10.9 “ 1 .8 “ - “ “ “ “ “ “ “ 0.5 “ +11.1 “ 8 per cent at rates varying from 4J4 to per cent. R E T A IL T R A D E Reports from retailers in this district indicate that January business is fairly satisfactory. The demand for heavy win ter merchandise, silk goods, linens, neck wear, toilet articles, women’s dresses, and house furnishings is active and clearance sales show good results. In women’s footwear, patent and tan leather, satin, silver and gold shoes and pumps are among the best sellers; men’s and chil dren’s oxfords also are in good request. December sales for this district exceeded the November volume by 39.6 per cent - “ “ “ “ “ “ “ 8.7 “ + 10.0 “ “ “ “ “ “ “ “ -1 3 .9 “ 2.89 2.82 - 2.54 2.42 8.6 “ and were 3.5 per cent greater than in December, 1924. Increases ranging from 1.0 to 21.6 per cent over the vol ume for December, 1924, are reported in all cities located in this district, except those affected by the hard cold strike, notably Scranton, Wilkes-Barre and, to some extent, Reading, which show de creases o f 10.1, 14.0 and 1.2 per cent, respectively. A ll department, apparel and shoe stores report marked increases in sales. But December sales at credit stores dropped somewhat bfelow those for the same month of 1924. A t present, price reductions are noted in several in stances, but, in the main, quotations re main fairly stable. W H O LE SA LE TRADE December, 1925, compared with November, 1925 C O N D IT IO N S P h iladelphia Federal R e se rv e D istrict Philadelphia area. . . Trenton area “ . . . Wilmington “ ... Reading “ ... Lancaster “ ... York “ . .. Harrisburg “ ... Allentown “ ... Wilkes-Barre “ . . . Scranton “ ... Altoona “ ... Johnstown “ ... Williamsport “ . . . Employ ment Wage payments Value of building permits + + + + + + + + - + + + + + + + + + + + + + -2 7 .5 % + 90.5 “ + 1.1 “ -1 9 .1 “ -7 1 .3 “ -4 1 .2 “ + 26.5 “ -6 2 .2 “ - 5.3 “ + 32.6 “ -5 6 .7 “ 0.7% 0.9 “ 4.8 “ 1.3 “ 1.6 “ 0.9 “ 1.8 “ 0.0 “ 1.5 “ 0.7 “ 4.3 “ 2.0 “ 1.8 “ 2.2% 4.6 “ 5.6 “ 2.6 “ 1.0 “ 5.1 “ 3.6 “ 1.6 “ 0.4 “ 3.5 “ 6.4 “ 3.8 “ 1.9 “ -7 9 .7 “ Savings deposits Debits + 45.5 % + 43.2 “ + 23.1 “ + 35.6 “ + 28.0 “ + 41.5 “ + 45.3 “ + 41.7 “ + 37.9 “ + 43.2 “ + 31.9 “ + 38.8 “ + 36.6 “ + + + + + + + + + + + 4.1% 2.3 “ 0.4 “ 2.7 “ 3.8 “ 2.1 “ 3.4 “ 2.4 “ 0.1 “ 5.8 “ 1.4 “ 0.1 “ 3.7 “ Electric power sales Retail sales + 28.9 % + 6.7% + 77.6 “ + 10.5 “ * + 57.5 “ + 7.1 “ + 73.5 “ + 0.9 “ + 66.7 “ - 1.9 “ + 70.8 “ - 1.7 “ + 4.1 “ + 68.0 “ + 65.2 “ - 2.2 “f + 57.8 “ ............... t + 50.9 “ + 10.1 “ + 90.6 “ + 7.0 “ +84.1 “ + 89.0 “ ............... t December, 1925, compared with December. 1924 Philadelphia a r e a . . . * . T r en to n W ilm in g to n “ ... “ . R eading “ Lancaster “ Y ork “ . H arrisburg A llentow n W ilk es-B arre “ Scranton u U W illiam sp or t + 3 .7 % + 6 .6 + 1 2 .7 “ + 1 .2 “ 0 + 9 .8 “ + 8 .4 “ + 8 .4 + 3 2 .5 “ - 7 .1 “ -1 0 .4 + 1 3 .5 a + 6 .3 % + 6 .1 “ + 2 .5 “ . + 1 .3 “ - 2 .4 “ + 1 2 .7 “ + 1 7 .5 “ + 1 6 .0 “ + 2 2 .4 “ -2 7 .4 “ -1 4 .8 + 1 4 .3 “ “ + 6 .1 % + 3 4 7 .6 + 3 5 .7 “ -6 0 .3 “ + 1 4 .9 “ + 9 8 .1 -2 9 .9 “ + 5 8 .1 “ -4 8 .9 “ -4 1 .1 “ —3 8 .3 u -4 4 .7 + 3 1 .1 % + 2 9 .0 “ + 3 7 .6 “ + 4 1 .4 “ + 2 5 .5 “ + 6 .5 + 4 0 .0 “ + 4 3 .5 “ - 0 .0 “ - 2 .1 + 1 8 .3 u + 3 7 .7 + 3 3 .5 1 1 u + 7 .1 % + 5 .5 “ + 5 .7 + 1 0 .7 “ + 1 4 .0 “ + 9 .7 “ + 1 7 .7 “ + 6 .7 “ + 0 .0 “ + 2 .9 “ + 1 4 .5 1 .4 u + 9 .3 u * Includes Camden area. f Includes Wilkes-Barre and Williamsport areas, t Included in Allentown area. + 4 .9 % a + 4 .6 u + 1 0 .5 1 .2 u + 9 .6 “ + 1 3 .7 + 0 .7 “ + 2 .8 “ -1 4 .0 “ -1 0 .1 “ + 3 .8 + 1 .2 U + 7 .8 u + 1 9 .0 % + 1 5 .1 + 5 5 .1 + 2 3 .6 “ + 2 0 .2 “ + 1 5 .1 U + 1 5 .7 - 2 .3 “ t ■t + 5 .3 + 2 1 .4 U a ..............t Wholesale trade in the Philadelphia reserve district, as indicated by the preliminary reports, continues but moderately active. Seasonable goods, such as hardware and dry goods, and fancy articles, as women’s shoes and dresses, are in good demand. Similarly, the call for drugs, paper, electrical sup plies and groceries, except in the anthra cite region, remains fair. Price ad vances and declines are reported in several lines, but wholesale quotations on the whole remain steady. December sales in drugs, electrical supplies, hardware and jewelry exceeded considerably those of last November and o f December, 1924, whereas in the other trades they registered marked declines. But stocks at the end of December were lower in most branches of the wholesale trade. Collections in December, though a trifle slower than they were last November, exceeded in promptness those o f December, 1924. Dry goods. Although business in dry goods generally continues quiet, the de mand for cotton fabrics, underwear, hosiery, gloves, novelty dress goods, Page Three blankets, laces and women’s and chil dren’s ready-to-wear has been fairly ac tive. About half of the present orders call for delivery within thirty days; the other half is divided between sales for shipment in sixty days and those for de livery after sixty days. Prices of silk hosiery are a trifle higher than they were four weeks ago, but quotations for nearly all cotton goods and some hosiery have declined. Jewelry. Following active trading in December, when sales exceeded Novem ber’s volume by 71.1 per cent and were 9.5 above those in December, 1924, the wholesale jewelry market has quieted down considerably. Nevertheless, such items as watches, brooches, platinum dia mond rings and bracelets, are in fairly good demand at the present time. Prices remain unchanged from those o f four weeks ago. Groceries. Trading in groceries throughout the greater part of the Phila delphia reserve district is somewhat more active than it was four weeks ago, the demand being good for canned foods and such staple items as cereals, flour, sugar, milk, syrup, molasses, fruits and vege tables. But in sections affected by the prolonged anthracite coal strike, buying by retailers has been drastically curtailed; consequently, the volume o f business at wholesale at present is greatly reduced. Since December 20, more advances than declines in prices have been reported. Paper. The wholesale paper market shows material improvement over that o f thirty days ago, and the volume of sales is from 5 to 10 per cent higher than it was a year ago. All grades of paper are selling well at fairly steady prices. With active demand and moderate stocks, manufacturers state that the outlook for the paper industry as a whole is favorable. At present, paper mills in this district are working at about 85 per cent o f capacity. Unfilled orders, however, show no upward trend. Price advances are reported in sulphate bond and wrapping papers, but newsprints recently have declined a little. Quota tions for paper and pulp for the United States generally were in December about 3 per cent below November levels, and were about 10 per cent lower than in December, 1924. Electrical supplies. Business in elec trical supplies has been somewhat more active than during the previous month or a year ago. Radios, electrical fix tures and appliances are now among the best selling items. December sales were considerably higher than those in Novem ber and in December, 1924. Since Decem ber 20, prices have remained virtually un changed and collections are satisfactory. Page Four W HOLESALE TRADE Philadelphia Federal R eserve D istrict Net sales, Dec., 1925, com pared with Nov., 1925 Boots and shoes. . . . - 6.0% + 7.6 “ Dry goods................ -1 6 .6 “ Elec, supplies........... +34.9 “ Groceries.................. - 3.7 “ Hardware................. + 7.7 “ Jewelry..................... +71.1 “ Paper........................ - 3.6 “ Stocks, Dec., 1925, com pared with Nov., 1925 Dec., 1924 -1 5 .2 % + 2.3 “ -1 6 .0 “ + 10.2 “ - 8.2 “ + 2.2 “ + 9.5 “ -1 2 .6 “ - Dec., 1924 Accounts out standing, Dec., 1925, com pared with Nov., 1925 8.8% -2 4 .0 % -1 0 .6 % —2 8 “ “ + 4.0 “ -1 1 .2 “ “ -1 7 .8 “ + 8.1 “ “ - 3.5 “ - 6.8 “ “ - 8.2 “ - 0.6 “ “ - 4.7 “ + 10.4 “ “ + 0.6 “ - 7 . 1 “ - 8.0 - 5.9 - 1.8 + 4.6 -2 3 .2 - 6.9 Hardware. The December hardware trade exceeded considerably both the November volume and that in December, 1924. Though improvement in sales since January 1, notably in such items as win ter goods, tools, factory, plumbing and heating supplies, building materials, radio and electrical supplies, is indicated by several reports, in general, demand has slackened somewhat. Except for small advances in brass goods and screw ma chine products and slight declines in cast fittings, building hardware, mops, elec trical plugs and heaters, boilers and radiators, prices remain at the same level as that o f four weeks ago. Drugs. Net sales during December exceeded materially November’s volume and were 2.3 per cent above those of December, 1924. At present, various drugs are in slightly more active de mand than they were in December. Despite small advances in several items, prices remain about the same as last month. Collections are fairly prompt. Shoes. Trading in boots and shoes is lagging somewhat behind last year’s rate o f activity. Although buying of spring lines is indicated by several reports, the majority of present orders are for imme diate requirements. In women’s foot wear, novelty pumps, patent leather with fancy trimmings, black satin and black velvet, together with tan calf oxfords, are selling most actively. Similarly, men’s and boys’ tan calf and dull calf oxfords are in good demand. Sales of misses’ and children’s shoes and pumps also continue moderate. Prices remain firm. Dealers state that increasing costs of raw materials, notably in fancy leathers, sole leather, welting and find ings, make reductions difficult. A U T O M O B IL E S Reports from 13 distributors in the Philadelphia Federal Reserve District show a marked seasonal decline in the number and value of new cars sold by them in December. In only one class of cars, those selling at more than $2,000, were either wholesale or retail sales larger than in November. The number and value of used cars disposed of, howT ever, showed a substantial increase in Ratio of accounts outstanding to sales Dec., 1924 Dec., 1925 Nov., 1925 Dec., 1924 + 9.0% + 14.2 “ - 1.4 “ + 0.6 “ - 6 .8 “ + 5 .5 “ + 8.3 “ - 6.1 “ 330.7% 158 8 “ 282.2 “ 105.4 “ 112.4 “ 174.5 “ 237.3 “ 140.8 “ 354.2% 175 3 “ 265.1 “ 131.5 “ 118.8 “ 190.1 “ 367.9 “ 146.1 “ 251.0% 141 6 a 240.5 “ 115.4 “ 108.8 “ 169.0 “ 239.8 “ 131.2 “ December. Stocks of both new and used cars were somewhat smaller on Decem ber 31 than they were a month previous. Dec., 1925, chang e from Nov. 1925 A U T O M O B IL E T R A D E Philadelphia F e d eral R e se rv e D istrict 13 distributors No. Value Sales, new cars, wholesale........ Cars under SI,000................ Cars SI,000 to S2.000........... Cars over S2.000................... -3 0 .5 % -3 7 .5 “ - 2 9 .2 “ + 27.8 “ -2 5 .2 % -3 7 .4 “ -2 7 .0 “ + 4.1 “ Sales, new cars at retail........... Cars under SI,000................ Cars $1,000 to $2,000........... Cars over $2,000................... - 2 1 .0 -2 2 .5 -3 9 .1 - 1.9 “ “ “ * -2 1 .4 “ -2 2 .4 “ -4 1 .4 “ -1 4 .7 “ Stocks of new cars.................... Cars under $1,000................. Cars $1,000 to $2,000........... Cars over $2,000................... + + - 0 .5 “ 0.5 “ 9.6 “ 8 .5 “ - 6 .0 “ + 0.4 “ - 2 .0 “ -1 2 .8 “ Sales of used cars..................... + 16.4 “ + 10.6 “ Stocks of used cars................... - 2 . 3 “ - 1 2 .8 “ Retail sales, def. payment....... -1 4 .6 “ -2 1 .8 “ E L E C T R IC P O W E R Output and sales of electricity by cen tral stations in the Philadelphia Federal Reserve District were larger in Decem ber than in November and were con siderably above the 1924 levels. Sales to street cars and railroads and to lighting consumers were seasonably larger in D e cember, but industrial consumption of electric power declined slightly from the November total. As compared with last year, however, December sales to all classes o f consumers were considerably larger. E L E C T R IC P O W E R Philadelphia F e d eral R eserv e D istrict Change from Nov., 1925 * C h an g e from D e c ., 1924f Rated generator capacity........ + 0.6% + 9.0 % Generated output..................... Hydro-electric....................... Steam..................................... Purchased.............................. + + + + Sales of electricity.................... Lighting................................. Municipal.......................... Residential and commercial.................................. Power..................................... Municipal.......................... Street cars and railroads. . Industries........................... All other sales....................... + 5.7 “ + 17.0 “ + 11.3 “ + 14.1 “ + 9.2 “ + 8.2 “ * 13 systems, t 12 systems. 8.8 0.2 9.2 6,7 + 11.6 + 2.1 + 2.1 + 9.9 - 0.4 + 17.9 “ “ “ “ “ “ “ “ “ “ + 14.0 + 75.0 + 10.8 + 35.5 + 15.2 + 14.3 + 10.0 + 10.8 + 15.6 + 49.2 “ “ “ “ “ “ “ “ “ “ EM PLO YM EN T AND W AGES A slight upward trend in factory opera tions was shown throughout Pennsyl vania, New Jersey and Delaware during the month o f December. Employment advanced 1.3 per cent and operations in creased 4.1 per cent. The metal group experienced the largest and most general increases, all o f them showing advances in employment with the exception of the automobile, electrical machinery and nonferrous metal industries. The decrease at electrical machinery plants was caused chiefly by the figures of one plant. The metal group as a whole reported an ad vance of 2.6 per cent in employment and 6.8 per cent in wages paid. The most decided advances among the individual industries occurred at heating appliance factories, iron and steel blast furnaces, shipyards and musical instru ment and leather product factories. The automobile, non-ferrous metal, woolen and worsted, lumber and planing and furniture industries reported notable de creases in both employment and wages. EM PLOYM ENT AND W AGES In P e n n sy lva n ia, N e w J ersey and D elaw are A ll industries (49) M e ta l m an u factu res: Automobiles, bodies, and parts.. . Car construction and repair......... Elec, machinery and apparatus . . Engines, machines, mach. tools . . Foundries and machine shops. . . Heating appl. and apparatus....... Iron and steel blast furnaces........ Iron and steel forgings................. Steel works and rolling mills........ Structural iron works................... Misc. iron and steel products. . . . Shipbuilding.................................. Hardware...................................... Non-ferrous metals....................... T extile products: Carpets and rugs........................... Clothing......................................... Hats, felt and other...................... Cotton goods................................. Silk goods.............................. .. Woolens and worsteds.................. Knit goods and hosiery................ Dyeing and finishing textiles....... Miscellaneous textile products. . . Fo od s and to b a c c o : P A PE R B O X E S The marketing o f paper boxes during the last four weeks has been, on the whole, satisfactory. Although sales do not compare favorably with those for the previous month, they are ahead of last year’s volume. Several plants report slight seasonal curtailment in production, but operations generally, at from 75 to 80 per cent of capacity, remain unchanged from those of thirty days ago. Advance business, however, is a trifle smaller. Supplies of raw materials and finished goods are not heavier than usual for this season. Prices continue unchanged at fairly steady levels. With a few excep tions, collections are prompt. B U IL D IN G Bakeries......................................... Canneries...................................... Confectionery and ice cream........ Slaughtering and meat packing . . Sugar refining................................ Cigars and tobacco....................... B uilding m a te r ia ls : Brick, tile, terra cotta products . Cement.......................................... Glass.............................................. Pottery.......................................... C hem icals and allied products: Chemicals and drugs..................... Explosives..................................... Paints and varnishes..................... Petroleum refining........................ Coke.............................................. M isce lla n e o u s in d u strie s : Lumber and planing mill prod.. . . 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....................... No. of plants report ing Number of wage earners—week ended Dec. 15, 1925 1,252 437,501 Dec. 15, 1925 Per cent change Average weekly earnings— week ended Dec. 15, 1925 Per cent change + 1.3 $11,753,503 + 4.1 $26.87 404 199,576 27 11,292 20 20,720 40 21,902 55 13,863 75 13,588 20 6,476 13 13,948 14 4,444 47 43,824 20 5,849 43 26,199 9 11,119 7 1,949 14 4,403 + 2.6 - 3.6 + 4.0 - 3.8 + 3.7 + 3.0 + 7.8 + 8.0 + 3.3 + 3.2 + 2.2 -f 2.5 +11.1 + 0.7 - 4.2 5,759,698 342,252 623,741 563,602 410,320 397,462 207,652 408,445 109,564 1,311,023 164,402 720,335 326,214 49,792 124,894 + 6.8 - 0.9 + 10.6 - 7.9 + 8.2 + 8.1 +20.1 + 15.0 + 7.6 + 11.2 + 2.6 + 4.6 + 13.0 - 4.0 - 1.2 28.86 30.31 30.10 25.73 29.60 29.25 32.06 29.28 24.65 29.92 28.11 27.49 29.34 25.55 28.37 + + + + + + + + + + + + + 6.4 4.2 4.4 4.9 11.4 6.5 4.1 7.7 0.4 2.0 1.7 4.7 3.1 265 14 43 10 31 70 26 42 22 7 83,567 4,233 6,758 5,141 9,928 24,136 9,173 13,781 8,950 1,467 - 0.2 + 2.5 + 1.6 0.0 - 1.2 - 0.0 - 7.1 + 1.3 + 1.9 + 4.5 1,910,880 119,189 125,291 129,508 223,794 506,019 200,978 330,343 243,987 31,771 + + + + + + + + + 2.0 6.2 4.4 3.3 1.0 1.1 3.7 3.9 2.8 4.4 22.87 28.16 18.54 25.19 22.54 20.97 21.91 23.97 27.26 21.66 + + + + + + + + + - 2.2 3.6 2.8 3.3 2.2 1.1 3.6 2.5 1.0 0.1 136 39 7 26 16 4 44 33,383 4,567 3,558 5,859 2,933 3,147 13,319 + + 0.0 1.4 0.5 2.5 1.4 1.0 1.8 715,207 135,357 75,787 119,959 84,813 99,044 200,247 + + + + - 0.1 0.8 1.4 1.3 0.4 2.8 1.1 21.42 29.64 21.30 20.47 28.92 31.47 15.03 + + + + + + - 0.1 2.3 1.9 1.2 1.0 1.7 3.0 97 39 15 28 15 28,356 5,477 7,899 10,050 4,930 + + - 0.3 1.8 1.3 0.0 1.7 840,276 142,505 246,760 290,910 160,101 + + + + + 3.2 3.5 0.4 4.9 4.0 29.63 26.02 31.24 28.95 32.47 + + + + + 3.5 1.6 1.8 4.9 5.8 87 48 12 17 7 3 33,732 8,703 3,556 1,620 18,760 1,093 + + + + - 0.7 0.7 1.6 0.4 0.8 2.7 998,374 237,597 94,910 43,671 589,287 32,909 + + 2.1 2.6 2.3 3.8 3.1 14.6 29.60 27.30 26.69 26.96 31.41 30.11 - 2.8 - 3.3 - 3.9 + 4.2 - 3.9 + 17.7 263 32 27 7 34 12 29 28 51 18 12 13 58,887 4,910 3,683 8,839 8,531 2,190 4,968 6,742 5,274 5,465 3,790 4,495 + 1.2 - 3.3 -1 1 .7 + 9.5 + 1.8 + 13.4 + 0.3 - 0.0 + 1.7 - 0.0 + 0.3 + 0.9 1,529,068 101,494 92,763 260,481 219,390 44,227 93,908 169,123 179,979 159,408 93,005 115,290 + 3.4 - 2.3 -1 4 .5 + 11.9 + 2.4 + 6.1 + 5.3 + 2.8 + 2.1 + 7.2 + 3.6 + 5.6 25.97 20.67 25.19 29.47 25.72 20.19 18.90 25.08 34.13 29.17 24.54 25.65 + + + + + + + + + + During December sixteen cities in the Philadelphia Federal Reserve District issued 1,665 building permits calling for a total expenditure o f $14,653,258, an in crease of 14 per cent over the estimated cost for December, 1924. As is indicated by contracts awarded in this district, the 1925 total construction, including indus trial, public, residential and public utility buildings, amounted to $406,470,037. This is an increase o f about 20 per cent over the 1924 valuation. According to the report made by the F. W . Dodge Cor poration, the 1925 construction volume in the United States was the largest on rec ord, its value being estimated at $6,600,000,000 as against the previous peak of $5,237,000,000 in 1924. demand is considerably quieter, owing principally to the fact that the season for new orders begins about March 1. Cement now manufactured is chiefly for shipment in spring and early summer. Most plants in this district are working close to capacity, although the average rate is about 80 per cent. A number of plants were closed down during the holi day for the purpose of taking inventories and o f effecting repairs. According to the Bureau o f Mines, December produc tion o f Portland cement for the United States increased over 3 per cent and ship ments rose more than 25 per cent, as compared with December, 1924. Cement. Business in Portland cement is fairly active and current sales at firm prices exceed last year’s volume. Com pared with four weeks ago, however, the Lumber. The lumber market, though slightly less active than it was four weeks ago, compares favorably with that o f last year. Affected by the Florida boom, Per cent change Total weekly wages—week ended + 2.7 4.1 2 .8 2.2 1.0 3.2 2.2 0.6 6.4 4.9 2.8 0.4 7.2 3.3 4.7 short leaf yellow pine is rather difficult to obtain, and this shortage has resulted in increased buying of soft woods from the West coast. Lack o f snow in the pine districts, however, hampers sleigh logging, and production, it is said, is about 20 per cent under January normal schedule. Present orders call for de liveries within from one to four months, the average being about seventy days. At present, lumber manufacturers in this district are working at about 85 per cent o f capacity, compared with 70 per cent in January, 1925. The lumber output of the United States in 1925 was the largest since 1916, according to esti mates by the National Lumber Manufac turers Association. It is stated that pro duction in 1925 totaled between 37,000,000,000 and 38,000,000,000 feet. Lumber prices recently have turned up- Page Five Ward. In December they rose about 2 per cent above November quotations and were 3 per cent higher than those for December, 1924. Paint. Conditions in the paint industry in the Philadelphia reserve district have improved considerably since December 25. The present demand exceeds both that of four weeks ago and of last year. Con servative buying, however, still prevails; most current orders call for prompt ship ments. Paint manufacturers in this dis trict are working at about 80 per cent o f capacity as against 60 per cent in January, 1925. Stocks are moderate. In view of the continued building activity, producers are hopeful of the volume of business in the first half o f 1926. A t present, prices are fairly steady, more advances than declines having been re ported for the month. Electrical supplies. Activity in elec trical supplies during the past thirty days has fallen below last month’s level, but the volume o f sales has been somewhat greater than that o f last year. Except for slight advances in such items as solder and fabric tapes, prices in the main remain unchanged from those of four weeks ago. No accumulation o f stocks in finished goods is reported. Nor are there new developments in manufactur ing; present operations average 75 per cent of capacity. Unfilled orders show a small increase in volume since Decem ber 23. IR O N A N D S T E E L Improved demand, steady prices, prompt collections, gain in unfilled orders, and relatively stable level of production have featured the market for iron and steel products in the Philadelphia reserve district during the past four weeks. Sales of iron and steel castings, scrap, hard ware, machinery and tools to construc tion companies, public utilities and other industries have increased considerably over those of preceding month. The call for plates, chiefly from builders o f loco motives, cars, boilers and tanks is fair, and buying o f freight and passenger cars, rails and track supplies continues mod erately active. In the pig iron trade com parative seasonal quiet prevailed during the month ended December 15, but since then the demand has been somewhat bet ter than is usual for this time. Owing principally to the increased activity in steel-using industries, notably automo biles, building, farm implements, ma chinery and tools, as well as to general betterment in business and financial con ditions, manufacturers of iron and steel products as a rule regard the outlook for the first half of 1926 as favorable. Stocks o f finished products and raw commodi Page Six Iron foun dry operations D ecem b er C hange from N o v ., 1925 AlthougH the total output of steel ingots in 1925 exceeded all previous records, wage payments and unfilled orders, while larger than in 1924, were consid erably below the 1923 average. ties generally are moderate. Nearly one half o f the iron and steel plants in this district are now working at from 75 to 100 per cent o f capacity, but operations as a whole average a trifle more than 65 per cent of capacity. Out of 59 furnaces in the Philadelphia reserve district, 28 were in blast during December as against 27 in November. Pig iron production in the United States in 1925, at 36,403,470 tons, exceeded the 1924 output by about 17 per cent and compared with 40,361,146 tons for 1923. Production of steel ingots in 1925 totaled 44,186,977, the highest on record. The following table shows ac tivity in production and unfilled orders in last Decem ber: In gross tons Production in U. S.— Unfilled orders—U. S. Steel Corp........ C h an g e from D e c ., 1924 Capacity.............. 10,449 tons 0 0 Production.......... 4,640 “ - 0.5% + 7.9% 505 “ - 2.9 “ - 9 . 5 “ Malleable iron. Gray iron........ 4,135 “ - 0.1 “ + 10.5 “ Jobbing........ 3,278 “ - 1 .0 “ + 10.6 “ For fu rth er mfr........... 857 “ + 3.4 “ + 10.3 “ 4,166 “ - 8 . 8 “ + 7.7 “ Shipments........... Value............... 8567,189 - 3.9 “ + 15.2 “ Unfilled orders. . . 3,422 tons -1 0 .3 “ + 2 2 .5 “ Value................ $522,112 + 2.3 “ + 30.1 “ Raw stock: Pig iron............ 5,773 tons - 2.1 “ - 5 . 0 “ Scrap................ 3,042 “ + 9.3 “ - 4.9 “ Coke................. 2,251 “ + 2.4 “ + 14.1 “ Steel foundries. A substantial gain was registered in December in steel foundry output, shipments and unfilled orders over the November volume. Unfilled orders in particular exceed greatly both the November amount and that o f Decem ber, 1924. Raw stocks at the end of December were lighter than those of last year. Steel foundry operations December Change from Nov., 1925* Change from Dec., 1924f 0 Capacity.............. 12,490 tons 0 6,838 “ + 1 4 .7 % -1 6 .6 % Production.......... 5,530 “ + 26.4 “ - 1.4 “ Shipments........... $902,295 + 26.2 “ - 8.4 “ Value............... Unfilled orders!. . 6,755 tons + 32.3 “ + 43.8 “ $1,009,929 +27.1 “ + 3 2 .8 “ Value!.............. Raw stock: 1,901 tons -2 0 .5 “ -4 3 .3 “ Pig iron............ Scrap................ 11,932 “ + 19.6 “ - 2 . 5 “ 1,774 “ -1 7 .0 “ - 9 . 3 “ Coke................ Nov., 1925 Dec., 1925 3,023,006 3,907,437 3,250,448 3,975,824 COAL 4,581,780 5,033,364 Activity in the soft coal fields continues at the same high rate as prevailed four weeks ago. Shipments have increased considerably since December 1, as is indi cated by the gain in car loadings in that region. Buying by householders of pre pared sizes of low volatile grades of bituminous coal, as a substitute for an thracite, is especially brisk. Industries, railroads and public utilities also remain active purchasers at firm prices. But new contracts for soft coal are not numerous, and spot prices appear to be a trifle below the quotations for coal sold on contracts. Advances in certain grades are reported in Boston, New York, Columbus and Cincinnati. In Philadel phia mine quotations also have risen above those of thirty days ago, Pool 10 selling at from $2.20 to $2.35 on January 18. This is an increase of about 27 per cent over last year’s level. The average rate of operation in the Philadelphia Federal Reserve District is 85 per cent of capacity. Notwithstanding the prolonged strike in the anthracite region, there is no surplus of miners in Except for some advances in crude steel, scrap, plates and shapes, machinery and tools, prices remain unchanged from last month’s quotations. Philadelphia 2X pig iron continues at $24.26 a ton. “ The Iron A ge” composite prices at $21.54 a ton for pig iron and 2.453 cents a pound for finished steel remain unchanged for the eighth consecutive week. Connellsville furnace coke quotations, however, rose from $5.00 a ton on December 22, 1925, to $9.00 on January 19. This in crease is due mainly to the stronger de mand since the failure of the anthracite strike parley in New York. Iron foundries. December activity in iron foundries, as measured by the pro duction o f castings, shipments and un filled orders, slowed down below the November level, but exceeded consider ably operations in December, 1924. Raw stocks are heavier than they were a year ago. *12 plants. omitted. |6 plants. ^Figures of one plant the bituminous field; on the contrary, some operators report a shortage of labor. Consequently, full tonnage is not being produced. Present supplies gen erally, however, appear to be ample to meet the current demand, and a few re ports indicate a slight accumulation of stocks. The total weekly production for the United States is as follow s: American cotton* (thousands of bales) Season Season Season ’25-’26 '24— ’25 •23-’24 Visible supply at end of previous season (July 31 )............................... 1,125 952 Crop in sight on Jan. 22 13,024 11,581 870 9,080 T otal....................... 14,149 12,533 Visible supply on Jan. 22 5,357 4,885 World’s takings tb Jan. 22 8,792 7,647 9,950 3,239 6,712 *Compiled by the New York Cotton Exchange. In thousands of net tons Week ended 1925-26 Dec. Dec. Jan. Jan. Jan. 19.......... 26.......... 2 .......... 9 .......... 16.......... 12,689 8,431 10,796 12,883 13,073 10,814 7,540 10,806 12,590 12,044 Per cent of change 1924-25 + + + + 17.3 11.8 0.1 2.3 8.5 T E X T IL E S Cotton. A fair amount of business has been transacted in cotton manufac tures during the past four weeks, when allowance is made for the usual dull ness at this season. Buying has been re stricted chiefly to small lots for imme diate requirements, although a few sales call for delivery during April and May. The demand for cotton yarns, though sluggish at present, compares more fa vorably with that of a month ago and of last year than does the call for cotton fabrics. During the last fortnight, how ever, sales in both gray and finished goods indicate a little improvement. Mill operations, at from 70 to 75 per cent of capacity, show a small decline in produc tion. This is due partly to the brief suspension of work for the purpose of compiling inventories, balancing books, making repairs and mechanical readjust ments in plants. Stocks of yarns and fabrics continue moderate. A fter slight recessions, prices recently have stiffened in sympathy with higher quotations for raw cotton. Compared, however, with last year’s level, such fabrics as print cloths and sheetings are from 3 to 6 per cent lower, and standard cotton yarns are from 10 to 17 per cent lower. Similarly, spot cotton, after fluctuating between 19.40 and 20.90 during the past thirty days, dropped from 23.55 cents a pound a year ago to 21 cents a pound on Janu ary 23. December cotton consumption totaled 630,972 bales, linters included, compared with 609,064 bales in November, 1925, and 581,527 bales in December, 1924. Mill and warehouse stocks on December 31 were 24.6 per cent greater than they were a year ago. Up to January 16 ginnings amounted to 15,488,230 bales as against 13,306,813 bales last year. The following table shows the position of American cotton. Silk goods. Business in silk goods continues active, manufacturers enjoying a strong demand for various staple fab rics for immediate delivery. Plant opera tions remain at about 95 per cent of capacity. Employment and machine hours, notably in spinning spindles and broad looms, are satisfactory and exceed those of a year ago. Unfilled orders will insure operation at the present rate for about seventy days. Stocks, though mod erate, are a trifle heavier than they were four weeks ago. In sympathy with the firmer quotations for raw silk, prices of finished merchandise show an upward trend. Fairchild’s index of average quo tations for silk goods, which stood at 122.9 on December 1 and 135.6 on Janu ary 1, 1925, rose to 131.4 on January 4, 1926. Raw silk prices have advanced about 2 per cent since December 1. The volume of imports and deliveries to mills during 1925 exceeded greatly that for any of the past five years. Activity in the United States for the past month is indicated in the table below. Raw silk* (in bales) Dec., 1925 Nov., 1925 Dec., 1924 Stocks....................... 45,495 49,824 42,484 49,238 46,824 41,848 39,978 61,533 33,961 *Silk Association of America. Wool. Seasonal quiet in demand, fluc tuation in prices and dearth of orders for future delivery have marked the wool in dustry in this district during the last four weeks. Pending the opening of varied lines in men’s wear for the fall of 1926, the present call is confined chiefly to sup plementary orders for quick delivery. The current trade in women’s wear is slugglish. W ool yarns also are in poor re quest, sales being less active than they were four weeks ago and at the same time last year. Makers of woolen and worsted yarns and cloth are now working at about 70 per cent of capacity, and the amount of unfilled orders, especially in wool fabrics, is slightly below that o f the previous month. Stocks are light. Prices of yarns and cloth are fairly steady, al though several reports indicate conces sions granted during the past thirty days. Indeed, suitings and overcoatings are said to be offered by several mills at prices ranging from 5 to 10 per cent below last year’s quotations. This drop is in accord ance with the further decline in quotations for raw wool. Since December 19, 1925, prices o f domestic wool have dropped 2 per cent and o f foreign wool 0.8 per cent, according to Fairchild’s index of average quotations. But prices o f tops generally have shown no changes. De cember wool consumption in the Phila delphia reserve district was about 5 per cent above the November volume. Im ports into the United States dropped from 25,169,525 pounds in November to 23,175,718 in December. P R IC E £ lo t b s A ll IN DICES and c o m ro c d it ic s A v e ra g e 1923 C lo th in g 1924 ig 3 - I O O 1925 1926 Although the prices of cloths and clothing have declined 9 per cent from the peak in 1923, they are, as compared with 1913, 20 per cent above the gen eral wholesale price level. Clothing. W ith the fall trade now virtually over, except for occasional duplicate orders, and with the spring de mand not yet fully developed, business in clothing and furnishings is only mod erate. The volume marketed during the past thirty days is somewhat below that of four weeks ago, but it is considerably above that for the corresponding month o f last year. Manufacturers have enough business on hand to insure their plant operations at the present rate, which is about 70 per cent of capacity, for nearly two months on the average. Stocks are not burdensome. Prices in the main are firm and unchanged from last month’s level. Collections are fair. Hosiery. Manufacturers o f mer cerized, cotton and wool hosiery state that the demand for their products is scarcely fair, but those producing fullfashioned women’s silk hosiery have met with good business. Chiffons, silk hosiery with lisle top and foot, and fan cies are in demand. Prices o f fullfashioned hosiery are strong but uncer tainty still persists in cotton lines. Orders for hosiery now on the books are mainly for prompt shipment. Stocks of finished hosiery are mod erate and about the same as a month ago. Operations at the full-fashioned mills are Page Seven close to capacity, but the average for those turning out seamless products is about 70 per cent of capacity. December production by 134 firms in this dis trict declined 4.1 per cent as compared with November. Underwear. Demand during the past month was fairly satisfactory notwith standing the usual holiday dulness. Orders now on the books of firms in this district are sufficient to enable them to maintain operations at the present rate for from two to three months. The average rate of operations o f reporting firms is now 76 per cent of capacity, and quite a number are working full-time. Reports are about evenly divided as to the acceptability of present prices, but few changes have taken place since last month. Stocks of finished goods are said to be light and stationary. Floor coverings. The holidays and inventory-taking have combined to slow up trade in carpets and rugs during the past month. The majority of reports state that demand does not equal that of a year ago. Purchasers are con fining their orders to immediate requirements. Some manufacturers an ticipate better business after February 1. Operations of reporting firms average about 66 per cent of capacity. Stocks are not burdensome and show some de crease since last month. Resistance to prices is noted but quotations are prac tically the same as they were last month. Seasonal slackness is affecting orders for linoleums and felt-base goods. Leather, Nov., 1925, as compared with Oct., 1925* Changes in Production Stocks Backs, bends and sides........ Calf......................................... -1 8 .5 % - 7.2 * - 8.1 “ -1 1 .5 “ — 7.0 “ -1 1 .7 “ + 1 7 .3 “ - 3 .9 % -6 .3 “ —2.0 “ + 5 .4 “ -2 3 “ + 0 .1 “ + 0 .9 “ *Bureau of the Census. pacity and in most instances orders on the books will permit them to continue at this rate for from six weeks to two months. Demand has improved recently and is said to be better than it was a year ago. Stocks on hand are moderate or light and the tendency is for them to decrease. Prices are firm and changed little during the month. According to preliminary reports, the output o f shoes in the United States was 0.7 of one per cent greater in December than in November. Figures for the Third District are given in the table: P R O D U C T IO N O F S H O E S * Dec. High and low cut (leather) total All other leather or part leather Per cent change from Nov. 1,138 1,120 101 160 189 393 277 + 0.6 + 2.4 + 10.0 — 3.2 —0 8 + 17.9 —11 4 18 Philadelphia F e d eral R eserve D istrict (in thousands of pairs) -5 2 .4 ♦Preliminary report— Bureau of the Census. L E A T H E R A N D SH O ES Packer hides showed strength during the latter part of December and early in January, but more recently weakness has developed again. Goatskins suitable for making colored kid are much in demand and prices o f these varieties have risen, but the market for skins adapted to the manufacture of black kid is quiet. The leather markets a month ago were slow, as shoe manufacturers were loath to purchase prior to taking their inven tories. At the shoe conventions much interest was manifested in shoes made of kid in the lighter colors, with the result that manufacturers of such leather have received a good volume of business. Busi ness in black kid is only fair. A steady market for calf is reported. Some improvement in sole leather has taken place and it is said that substitutes are in smaller demand. Stocks of leather at the end o f November were lower than they were a year before, this be ing particularly true of offal. In com parison with the preceding month some increases in stocks were reported, but in all descriptions except cabretta produc tion declined. Operations in the shoe factories of this district now average 75 per cent of ca- Page Eight SUGAR Buying o f raw sugar during the past thirty days has been fairly active and the volume purchased compared favorably with that of the previous month. Tak ings by American refineries in 1925 are estimated at about 7 per cent above the 1924 consumption. Owing to favorable conditions during the growing season gen erally and increased cane acreage, Cuban production in 1925-26 is reported to be from 5,150,000 to 5,500,000 long tons, compared with the 1924-25 output of 5,125,000 tons. Nevertheless production in the area from which the United States normally draws its supplies indicates a decrease of about 2 per cent below last season’s volume. On the other hand, the world’s production appears to be about 3 per cent above the 1924-25 level. Since January 2, prices of raw sugar have fluctuated between and 2%o cents a pound, cost and freight, or the equivalent of from 4.11 to 4.21 cents a pound, duty paid. Cuban raw sugar sold on January 23, 1926, at 2j£ cents a pound, or 4.14 cents, delivered, compared with 2 % and 4.65 cents, respectively, on January 23, 1925. Among the factors re sponsible for this decline are said to be 21:^2 the large carry-over of raw sugar in Cuba, bumper crops in nearly all sugarproducing countries, increasing stocks in the hands o f domestic refiners, uncer tainty in holdings of future options and slow movement of refined sugar to the consuming channels. During the two months ended Decem ber 20, the demand for refined sugar was active, but since then the market has been undergoing seasonal slackness. Thus, as a result of lessened distribution, melt ings recently have slowed down some what. Prices, though holding firm at from 5.30 to 5.50 cents a pound for granulated sugar during the fortnight prior to January 6, lately have dropped to from 5.20 to 5.30 cents a pound. TOBACCO Tobacco leaf. The demand for Penn sylvania tobacco is scarcely fair, and current buying is confined chiefly to large cigar manufacturers. Prices, though holding at levels unchanged from those of four weeks ago, are a trifle below last year’s quotations. The 1924 packed wrappers of good grade are quoted at from 18 to 25 cents a pound, according to quality. Prices o f 1924 fillers range from 5 to 8 cents a pound. Fancy 1923 wrappers that still remain on the market are sold at from 20 to 26 cents a pound. Growers’ quotations of 1925 Pennsylvania tobacco have not yet been definitely es tablished, as few of them so far have sold their crop. The quality of 1925 tobacco grown in Pennsylvania, Ohio, Wisconsin and Con necticut is up to the December estimate and compares favorably with that of the 1924 crop. The total output of Penn sylvania was 99.8 per cent of its 1924 crop. Last year’s tobacco production in the United States as a whole was about 9 per cent above that o f the previous year. On the other hand, according to reports received from 19 tobacco-growing countries, the 1925 yield dropped about 2 per cent below the crops produced in the same countries during the preceding two years, although it showed an increase of 38 per cent over the average for 1909-13. Cigars. Notwithstanding the fact that the present cigar market in this district appears to lag slightly behind that of a year ago, the volume o f current sales is reaching fairly satisfactory proportions. Although there has been no pronounced tendency recently toward ordering for future delivery, a number o f manufac turers have booked enough business to insure plant operations at the present rate of 70 per cent o f capacity for about three months. Supplies of both raw materials and finished products in the Philadelphia reserve district are not ex cessive. Prices generally continue firm and are unchanged from last month’s levels.
@FedFRASER