The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT FEBRUARY i, 1928 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA B U SIN E SS C O N D IT IO N S IN T H E U N IT E D S T A T E S Industrial activity continued in Decem ber at a relatively low level and railroad distribution of commodities declined fur ther, while the general level of prices re mained unchanged. Holiday trade at re tail stores was in somewhat larger vol ume than in the previous year. Production. Production of manufac tures remained in practically the same volume in December as in November, while output of minerals, when allow ance is made for usual seasonal changes, showed a slight increase. Activity in the textile, shoe, and tobacco industries was reduced in December, while the output of steel, non-ferrous metals, and petroleum increased. Production of automobiles continued in small volume during Decem ber, but increased considerably in Janu ary, and within recent weeks there has been also a further increase in the ac tivity of steel mills. Building contract awards were slightly larger in December than in November, but smaller than in December of the two preceding years. Total awards for the year 1927 in 37 eastern states, as reported by the F. W . Dodge Corporation, were valued at about $6,300,000,000 which is slightly less than the 1926 total of $6,380,000,000. December awards for residential and commercial buildings were larger than in December, 1926, while those for industrial buildings and public works were smaller. During the first three weeks of January contract awards were in approximately the same volume as dur ing the corresponding week of last year. Trade. Retail sales of department stores and mail order houses increased slightly more than is usual in December and were somewhat larger than a year ago. Inventories of merchandise carried by department stores were reduced in December and at the end of the year were slightly smaller than at the end of 1926. Wholesale trade in nine leading lines continued smaller than in the corre sponding month of last year. Stocks of groceries, shoes, hardware and furniture carried by wholesale firms were smaller at the end of December than a year earlier and stocks of dry goods and drugs were slightly larger. Freight car load ings declined further in December and were in smaller volume during that month and the early part of January than at any time in four years. The de crease in loadings occurred in practically all groups of commodities. Prices. The Bureau of Labor Statis tics Index of wholesale commodity prices remained practically unchanged in D e cember and was at the end of the year about one per cent lower than a year ago. Prices of grains, hide, and leather prod PERCENT Index number of production of manufactures and minerals, combined, adjusted for seasonal variations (1923-25 average = 100). Latest fig ure, December, 99. ucts, non-ferrous metals, and rubber in creased in December, while prices of live stock, cotton and lumber declined. In the first three weeks of January, there were increases in prices of iron and steel, grains, and wool, while prices of cattle, hogs, and cotton declined. Bank credit. At the reserve banks the seasonal demand for currency, after reaching its peak on December 24, was followed by a return flow of money from circulation, which amounted to about $440,000,000 between December 24 and January 18. This decline in the demand for currency, which was approximately the same as a year ago, was reflected in a decrease for the same period of about $360,000,000 in bills and securities of the reserve banks. Loans and investments of member banks in leading cities declined during the first half of January, but were still at a higher level than at any time last year. The decline of about $200,000,000 between January 4 and January 18 reflected a decrease of about $280,000,000 in the volume of loans on securities, offset in part by a considerable increase in the banks’ investment holdings. Call loan rates showed the usual sea sonal decline at the turn of the year but other money rates were slightly firmer. The rate on bankers’ acceptances in- PERCENT Index of United States Bureau of Labor Sta tistics (1926 = 100, base adopted by bureau). Latest figure, December, 96.8. M onthly averages of daily figures for 12 Fed eral reserve banks. Latest figures are aver ages of first 23 days in January. Page One Latest figure compared with BUSINESS IN DICATORS Philadelphia Federal Reserve District December, 1927 Year ago Previous month R etail trade — estimated net sales (130 stores)..................... Department stores (6 1 ).......................................................... Apparel stores (2 9 ).................................................................. Shoe stores (2 4)........................................................................ Credit stores (1 6 ).................................................................... $38,514,000 $32,832,000 $3,507,000 $881,000 $1,294,000 + 3 6 .4 % + 3 6 .4 “ + 3 8 .8 “ + 2 6 .4 “ + 3 2 .1 “ + + - sales (130 firm s).................................. B oots and shoes (6 )................................................................ Drugs (1 4 )................................................................................. D ry goods (1 7)......................................................................... Electrical supplies (5 )............................................................. Groceries (4 3 )........................................................................... Hardware (2 4 ).......................................................................... Jewelry (1 1 ).............................................................................. Paper (1 0)................................................................................. $9,864,558 $192,469 $1,610,775 $757,957 $822,635 $3,214,196 $1,737,706 $963,659 $565,161 - 0 .5 “ + 2 .2 “ - 0 .2 “ -2 1 .7 “ + 9 .7 “ - 5 .6 “ - 2 .2 “ + 5 9 .1 “ - 6 .3 “ - 6 .1 -2 1 .9 - 2 .9 -1 7 .2 - 7 .0 - 3 .9 -1 0 .7 + 3 .8 - 4 .2 268,764 $6,909,120 prs. 1,279,142 doz. prs. 1,289,221 lbs. 5,790,906 87,471,560 tons 243,617 tons 3,371 tons 4,759 tons 6,032 tons 10,181,000 bbls. 2,941,000 K W H 464,186,000 - 2 .2 “ - 1 .1 “ - 0 .3 “ -1 2 .1 “ -1 9 .5 “ + 3 .4 “ - 3 .0 “ -1 3 .4 “ + 2 .6 “ -1 2 .6 “ + 5.1 “ -1 2 .1 “ + 5 .5 “ -1 0 .9 “ -1 3 .2 “ - 6 .7 -2 0 .9 -3 0 .6 -4 5 .2 -1 9 .3 -3 2 .8 + 2 .3 + 2 .5 165,835 3,451,382 -1 2 .4 “ + 4 .3 “ -1 2 .6 “ -1 4 .7 “ + 1 4 .5 + 3 .5 + 2 4 .7 -1 0 .8 + 2 .9 “ 8 .5 u -2 0 .1 “ + 0 .5 “ W h o le sa le trad e— net M oney in circulation data are averages of firstof-m on th figures and reserve bank credit data are m onthly averages of daily figures. Latest figures, January, partly estim ated. creased during the second week of Janu ary from 3% to per cent and there was also a slight advance in rates on time money in the open market. 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 S E R V E D IS T R IC T Some signs of improvement in business in the Philadelphia Federal Reserve Dis trict have appeared since the first of the year, although industrial and mercantile transactions have continued in reduced volume. December sales of reporting stores were over 3 per cent less than those a year previous while the total volume for the year fell nearly 4 per cent behind that of 1926. Exceptions to the general downward tendency were found in shoe and women’s apparel stores which reported larger sales in December. Stocks of retailers showed a decline almost cor responding to that in sales but accounts receivable were heavier than a year earlier and collections somewhat slower. Since January 1 retail business has experienced usual seasonal quiet. Wholesale trade in December also was substantially less than a year earlier, as was the case in prac tically every month of 1927. Declines occurred in every line but jewelry, which showed a slight gain, and, except in drugs, stocks also were smaller than a year earlier. Railroad freight shipments in the Allegheny district in recent weeks have been lower than last year, the de cline being only parti}" attributable to the coal strike. Factory employment in Pennsylvania continued to decline and, in December, was 11 per cent lower than a year earlier. Leather and textile industries, however, showed considerable strength, the metal manufactures being chiefly responsible for recent declines. Production of iron and steel products and anthracite and bitumi nous coal was substantially less in Decem ber, 1927, than a year earlier. Building contract awards in December also were smaller than in 1926, although the total for the year was over 8 per cent above the previous year. December real estate transactions in Philadelphia were in much larger volume. Iron and steel operations in the dis trict are still severely curtailed, but de mand has improved recently, as evidenced Page Two 3 .3 % 3 .8 “ 0 .2 “ 6 .8 “ 4 .5 “ “ “ “ “ “ “ “ “ “ Productive activity — Employment— 830 plants in P enna.................................... W age payments in above plants.......................................... Shoe production* (94 factories)........................................... Hosiery production* (130 m ills).......................................... W ool consumption* (78 m ills)............................................. A ctive cotton spindle hours (Penna. and N. J .) .............. Pig iron production................................................................. Iron casting production (31 foundries).............................. Steel casting production (10 foundries).............................. Anthracite................................................................................. Bituminous coal— P enna....................................................... C em ent...................................................................................... Electric power output (13 system s).................................... “ “ “ “ “ “ “ “ D istribu tion— Freight car loadings (Allegheny district— weekly average) Tonnage of vessels (Port of Philadelphia)......................... tons Financial an d credit— Debits (17 cities)..................................................................... Savings deposits (95 banks).................................................. Bills discounted held b y F. R. B. of Phila. (daily average) Acceptances executed (9 banks for month ended Jan. 10) Bankers’ acceptances sales (4 dealers— weekly average for period ended Jan. 16).................................................. Commercial paper sales (5 dealers)..................................... Commercial failures— number.............................................. Commercial failures— liabilities........................................... $ 2,859,726,000 $673,363,000 $48,580,000 $4,250,000 “ “ “ “ $2,820,000 $6,283,500 82 $2,287,165 + 6 .3 “ -3 3 .0 “ + 13.9 “ -j-53.8 u -1 3 .5 -1 0 .3 + 7 .9 + 5 5 .7 $8,881,653 $29,615,950 -2 3 .0 “ + 3 .2 “ -6 4 .3 “ - 4 .5 “ 5,254 $33,793,849 + 6 .9 “ + 12.7 “ + 14.6 “ + 4 4 .2 “ $95,798,000 $550,216 $1,476,489 + 2 8 .4 “ -1 9 .3 “ - 4 .4 “ -1 0 .6 “ - 0 .3 “ + 5 4 .1 “ “ “ “ “ B uild in g and real estate — Building permits (16 cities)................................................... Building contracts awarded (Philadelphia district)........ Number of real estate deeds recorded (Philadelphia co u n ty ).................................................................................. Value of mortgages recorded (Philadelphia co u n ty ). . . . M isc e lla n e o u s— Sales of life insurance (Penna., N. J., and D e l.)............. Retail sales of automobiles (10 distributors).................... Wholesale sales of automobiles (11 distributors)............. * Bureau of Census preliminary figures. by the large increase in the Steel Cor poration’s unfilled orders and some strengthening of pig iron prices. A dull market and reduced operations charac terize both the anthracite and bituminous coal industries as a result of continued mild weather and restricted industrial operations. The building industry is fairly active, though in somewhat smaller volume than a year ago. Indeed, this branch of in dustry during the past year has been relatively more active in the Philadelphia district than in the United States as a whole. The year’s volume of contracts showed a considerable gain for this dis trict, but a slight decline for the United States. Seasonal slackness now prevails in building materials and some price re ductions have been reported. Leather and shoe industries report im provement in the market. Demand for hides and leather is active and prices have advanced, while local shoe manu facturers also report larger sales and higher prices. The silk industry after months of dull ness has now shown some signs of im provement. Sales have increased some what and raw silk prices are stronger since the first of the year. The wool market has been more active with higher prices for raw and finished products. After a fairly active fall season operations in the cotton industry recently have slack ened considerably. Seasonal quiet pre vails in the clothing, hosiery, and carpet and rug industries. C O M M O D IT Y P R ICE S The general level of wholesale com modity prices has displayed a slight up ward trend in the last two weeks of January. Fisher’s index, based on the 1926 average, rose to 95.7 on January 20 from 95.0 on January 5. Prices were practically unchanged from November to December, but compared with a year before, the December level was 1.1 per cent lower. Farm products remained at about the same level as in November, grains advancing and beef steers, hogs, and lambs declining sharply. Cotton and potatoes also were lower, while poultry, eggs, and tobacco were higher. Prices of foods declined slightly, but hides and leather rose sharply. Small increases also occurred in metals and metal products, building materials, and miscellaneous commodities. The textile group, fuel and lighting materials, and chemicals and drugs showed slight de creases in the month. Retail food prices, as measured by changes in the index numbers, increased 1 per cent in Philadelphia and Scranton from November to December. In the country, however, the retail food index declined one-third of one per cent but was over 3.7 per cent below the level of a year earlier. December, 1927, compared with December, 1926 CITY CON DITION S Philadelphia Federal Reserve District Allentown Harrisburg Johnstown Philadelphia Reading Scranton Trenton Wilkes-Barre Williamsport Wilmington York a re a ... u u “ .. a u “ u .. “ .. Em ploy ment - 4 .4 % + 1.3 -1 8 .8 — 0 .2 - 1 1 .7 - 7 .2 -1 6 .8 -1 7 .7 -2 4 .4 - 2 .7 -1 0 .2 - 6 .2 “ “ “ “ 8 “ “ “ 8 “ 8 W age payments - 1 .9 % - 2 .7 -2 8 .8 - 5 .6 -1 1 .0 -1 2 .5 -1 1 .4 -2 2 .2 -2 0 .8 + 1 0 .5 - 8 .8 - 8 .7 “ 8 “ “ “ 8 8 8 8 “ 8 Value of building permits Debits + 7 6 .2 % -6 7 .2 8 -2 5 .6 8 -3 2 .3 8 + 1 5 6 .6 “ -6 8 .5 “ + 4 2 .0 “ -4 4 .1 “ -5 6 .8 “ -4 6 .1 “ + 7 0 .3 “ -8 1 .8 “ + 4 6 .1 “ + 5 .5 % + 1 .5 8 -1 9 .0 8 -1 0 .4 8 + 6 .7 8 + 4 .2 8 + 2 .8 8 - 5 .2 8 + 0 .2 8 - 1.4 8 + 8 .0 8 + 11.1 8 + 11.5 8 a re a ... Allentown u . . Altoona a . . Harrisburg a ., Johnstown u Lancaster “ . . Philadelphia u . , Reading Scranton u ... “ .. Trenton Wilkes-Barre “ . , Williamsport “ . . u ., Wilmington York - 2 .0 % + 2 .9 8 + 0 .2 8 - 7 .7 8 + 1.1 8 - 2 .6 8 - 0 .8 8 + 3.1 8 - 1.9 8 -1 8 .4 8 + 2 .6 8 + 1 .2 8 - 5 .3 8 - 1 -5% - 2 .2 8 - 2 .7 8 + 1.1 8 - 1.9 8 + 0 .6 8 - 3 .4 8 + 7 .3 8 + 1 .2 8 -1 2 .6 8 + 5 .5 8 + 4 .7 8 - 1.6 8 PRICES OF C O M M O D IT IE S Jan. 18, 1928 F o r P h ila d e lp h ia banks....................... $15,800 F or banks in 19 other large cities.............. 8,700 For banks outside of 20 cities................... 12,600 T o ta ls.................. $37,100 Dec. 21, 1927 Jan. 19, 1927 + 6 .8 % + 9 .0 8 + 1 8 .3 8 + 4 .3 8 + 2 .1 % + 0 .9 8 - 5 .7 8 -1 2 .3 8 + 2 .4 8 - 3 .4 8 + 1.4 8 - 2 .6 8 - 8 .6 8 - 4.1 8 - 2 .7 8 - 3 .3 8 - 4 .0 8 + 6 .2 % * -1 3 .7 8 + 3 .7 8 + 2 .0 8t + 11.3 8 + 4 .6 8 + 4 1 .0 8 + 11.9 8 + 8 .5 8t § § - 4 .9 8 + 1 2 .8 8 + 1 0 .0 % + 7 3 .1 8 + 5 0 .7 8 + 6 4 .4 8 + 6 6 .2 8 + 3 9 .0 8 + 7 4 .6 8 + 2 7 .0 8 + 6 4 .7 8 + 4 7 .4 8 + 7 0 .1 8 + 7 4 .3 8 + 6 8 .6 8 + 0 .4 % * + 10.7 8 + 5 .5 8 + 5 .5 8t - 0 .9 8 + 7 .7 8 + 5 .6 8 + 1 0 .3 8 + 2 .6 8f § § - 0 .7 8 + 8 .4 8 + + + + + 9 .9 8 .6 5 .4 6 .9 8 .2 8 8 8 8 8 + 6.1 8 + 7 .8 8 - 8 .2 % -4 6 .6 8 -5 6 .9 8 -5 4 .1 8 + 8 5 2 .1 8 + 1 .8 8 + 5 0 .3 8 -1 3 .7 8 -7 2 .4 8 - 7 .3 8 -9 6 .8 8 -4 2 .9 8 -6 6 .5 8 Latest + 1 7 .0 % + 1 .8 8 + 7 .6 8 + 0 .5 8 + 2 .8 8 + 14.4 8 + 1 3 .5 8 + 4 .9 8 + 2 7 .2 8 + 1 3 .0 8 + 2 5 .3 8 + 2 9 .7 8 + 2 1 .9 8 + 1 .7 % - 1.1 8 + 0 .4 8 + + + + 4 .2 2 .7 12.6 0 .4 0 .8 8 8 8 8 8 + 0 .4 8 - 0 .3 8 t Production (not sales), M onth ago Year ago t Includes Camden area. Source of quotation W holesale F IN A N C IA L C O N D IT IO N S (Figures in thousands) Retail trade sales December, 1927, compared with November, 1927 * Includes Wilkes-Barre and Williamsport areas, § Included in Allentown area. Federal reserve bank. From 61 per cent on December 21, the reserve ratio of the Federal Reserve Bank of Philadelphia receded to 55.4 per cent on January 4, although the combined note and deposit liabilities decreased 7 millions. Cash reserves fell from 174 to 154 mil lions, mainly as the result of a loss of 26.5 millions in the transit clearings with other districts. In the following two weeks, which ended on January 18, a gain of 23.2 millions occurred in the tran sit clearings, cash reserves increased 25.2 millions, and liabilities against which re serves are computed declined further, so that the reserve ratio advanced from 55.4 to 67.3 per cent. In the four weeks there was a strong return movement of currency, although the effect of this was countered some what by the withdrawal of 14 millions of Government funds from depositary banks. Bills discounted for member banks increased from 49.1 millions on Electric power sales Savings deposits Fisher’s weekly index (1926 = 1 0 0 ).............. Purchasing power of the 1926 d ollar. . cents U All commodities, index (1926 =100) Finished steel, average...................... ........ lb. Pig iron, average............................... Pig iron, 2 X Phila............................. . . . . “ Copper, electrolytic........................... ........ lb. Lead....................................................... . . . . “ Cotton, N. Y . middling sp o t............ . . . . “ Y a rn s................................................. . . . . “ G ood s............................................... . . . .yd. W ool, domestic, ra w .......................... ........ lb. Foreign.............................................. . . . . * .. “ Tops, a v............................................ W orsted Y a rn s................................ Silk, raw (av. of 6 grades)................. .........lb. G ood s....................................Index number 8 R ay on ......................................... a Construction costs (1913 =100) 8 Lumber, yellow p ine.......................... 1000 ft. Oak, plain......................................... . . “ “ Cement, Phila., carloads.................. . . .bbl. Bricks, com m on................................. . .1,000 Fuels: bituminous coal, index (1926 = 100) ton Anthracite (1926 = 1 0 0 )................. . . . . “ Coke, furnace.................................. short 8 Petroleum, Pa. crude................... . . .bbl. Gasoline, tankwagon, P hila......... . . . .gal. Hides, packer, 1, native ................. .........lb. Rubber, 1st latex crepe..................... . . . . “ Paper, news r o ll.................................. 100 lbs. Tobacco, medium ............................... Corn, 2 yellow .................................. Wheat, 2 red ...................................... . . . . “ Flour, M in n , patent......................... . . .bbl. Food products..................................... 9 5.7 95.9 104.5 104.2 9 6.8 96.7 9 7.9 2 .314 ji 2.314*! 2.439*! $17.67 $17.54 $19.39 $20.26 $19.76 $22.26 14.00 14.00*! 13.25*! 6.48*! 6.50*! 7.50*! 19.30*! 19.50*! 13.60*! 36.20*! 35.44*! 29.09*! 13.36*! 11.54*! 13.46*! $1.04 99.42*! 94.18*! $1.19 $1.16 $1.09 $1.10 $1.04 $1.02 $1.71 $1.71 $1.68 $4.91 $4.79 $5.47 119.92 119.39 130.08 $1.50 $1.50 $1.45 203.9 203.9 211.5 $63.00 $63.00 $63.00 $115.00 $115.00 $119.00 $2.21 $2.21 $12.50 $13.50 $17.90 9 7.4 9 7.8 107.9 9 6.8 9 6.9 98.8 $2.75 $2.75 $3.50 $2.80 $2.75 $3.40 15.00*! 15.00*! 18.00*! 26.5*! 25.0*! 15.5(4 31.75*! 40.00*! 30.00*! $3.25 $3.25 $3.25 12.00*! 12.00*! 15.00*! $1.09 $1.04 95.38*! $1.56 $1.51 $1.56 $7.05 $7.00 $7.50 $3.34 $3.35 $3.49 Prof. Irving Fisher Prof. Irving Fisher B. of L. Statistics Iron Age Iron Age Iron Age D un’s Review D un’s Review Journal of Commerce Fairchild’s Fairchild’s Fairchild’s Fairchild’s Fairchild’s Fairchild’s Fairchild’s Fairchild’s Fairchild’s Eng. News Record D un’s Review D un’s Review D un’s Review D un’s Review B. of L. Statistics B. of L. Statistics D un’s Review Oil, Paint and DrugRep. Oil, Paint and DrugRep. D un’s Review D un’s Review D un’s Review D un’s Review D un’s Review Dun’s Review Journal of Commerce Bradstreet’s Retail $24,200 $10,400 10,800 10,800 14,100 16,600 $49,100 $37,800 Food, index number (1913 = 1 0 0 ). . Cost of living Philadelphia (Dec. 1914 = 1 0 0 ) ... United States (1913 = 1 0 0 )........... 155.9 156.5 161.8 B. of L. Statistics 178.3 172.0 178.0* 173.4* 182.3 175.6 B. of L. Statistics B. of L. Statistics *June, 1927. Page Three December 21 to 58.7 millions on January 4, but fell to 37.1 millions on January 18, and members’ reserve deposits increased from 133.9 to 142.6 millions in the four weeks. A distribution of borrowings is given in the accompanying table. The total of borrowing has changed little in the year, but holdings of pur chased paper have increased nearly 10 millions and of United States securities close to 22 millions. Member banks. According to the re ports of 116 member banks in twenty-one of the larger cities of the Philadelphia Federal Reserve District, loans and dis counts increased 10.6 millions from 999.9 to 1010.5 millions in the five weeks from December 14 to January 18. Investments expanded 14.5 millions, net demand de posits 11.3 millions, and time deposits 12.4 millions. The increase in loans and discounts, in the case of 33 Philadelphia banks, amounted to 4.9 millions, the re sult of an advance of 21.6 millions in amounts loaned on the security of stocks and bonds, which was partially offset by a decline of 16.7 millions in other loans and discounts. In comparison with January 12, 1927, the loans of 116 banks on January 18 this year were nearly 14 millions smaller, owing to a decline of 23.2 millions in the loans of Philadelphia banks and an in crease of 9.3 millions outside of the city. The change in Philadelphia reflected chiefly a decline of 20.6 millions in loans other than those secured by stocks and bonds. As in recent months, a large in crease in investments in comparison with a year earlier also was reported by Phila delphia banks. Commercial paper. Sales of com mercial paper in this district, as reported by five dealers, declined from $9,380,800 in November to $6,283,500 in December, owing to a falling off in purchases of both city banks and those outside. Compared with a year before, December sales were smaller to city banks and larger to out side institutions. Statistics fo llo w : Sales to Citybanks 1927 Total sales Outside banks $2,471,000 3,503,300 4 ,3 3 0,00 0 $3,812,500 5,877,500 4,337,500 $6,283,500 9,380,800 8,6 6 7,50 0 3,441,500 3,564,900 7,0 0 6,40 0 1926 Fifty-five per cent of the sales in De cember, according to the reports of three dealers, were made at 4 per cent, 19 per cent at 3$4 per cent, and 26 per cent at 4 % or 4J/2 per cent. In November, more than three-quarters of the sales were at 3J4 or 4 per cent, and in December, 1926, all of the sales were at 4 % per cent or higher. Page Four Other T otal loans loans and and discounts discounts Invest ments Net demand deposits Time deposits + 1 3 ,41 7 + 1,037 + 7,908 + 3,353 + 7,151 + 5,248 + 2 1 ,904f - 1 3 ,3 4 3 t + 10,625 + 14,454 + 11,261 + 12,399 Changes from Jan. 12, 1927, to Jan. 18, 1928: Philadelphia (33 ban ks).......................... - 2,651 -2 0 ,5 6 3 - 2 3 ,2 1 4 Outside (83 ban ks)................................... + 5 ,1 2 3t + 1,233+ + 9,296 + 6 3 ,0 6 8 + 18 ,79 9 + 2,906 - 3,061 + 2 6 ,6 5 0 + 25,991 + 81 ,86 7 155 + 52 ,64 1 C hanges in condition of banks (All figures in thousands of dollars) Loans on securities Changes in five weeks to Jan. 18: Philadelphia (33 ban ks).......................... + 2 1 ,6 5 8 - 1 6 ,7 1 0 + 4,948 Outside (83 ban ks)................................... + 246* + 3,367* + 5,677 Total (116 ban ks)................................ Total (116 b an ks)................................ + 2,472§ —19,330§ - 1 3 ,9 1 8 * 69 banks; f 102 banks; J 61 banks; § 94 banks. Debits to individual account. Dur ing 1927, check payments, as reported by clearing houses in seventeen of the larger cities of the district, totaled $30,150,000,000, an increase of 3.4 per cent over 1926. Twelve out of seventeen cities par ticipated in this increase. For the three weeks ended January 18, check payments were 7.1 per cent larger than in the corresponding weeks last year. Philadelphia shows an increase of 9.7 per cent, three cities in the anthracite area show a gain of 6.6 per cent, and thirteen other cities in total have de clined 2.5 per cent. Bankers’ acceptances. Nine banks in Philadelphia report that outstanding acceptances on January 10 totaled $14,092,000, as compared with $13,543,000 a month earlier. In the month ended Janu ary 10, $4,250,000 of acceptances were executed by them, as against $4,767,000 in the preceding month and $4,228,000 a year before. D IS T R IB U T IO N Railroad shipments of merchandise and miscellaneous commodities in the Alle gheny district in the four weeks ended January 7 were about 4 per cent smaller than in the corresponding period last year. Freight car loadings of these com modities during 1927 were about twotenths of one per cent below the volume of 1926. Last year failures of trading firms in Pennsylvania, New Jersey, and Delaware increased over 3 per cent in number and 13 per cent in the amount of liabilities involved, as compared with 1926. In the United States similar liqui dations rose 5 per cent in number and 13 per cent in liabilities. Wholesale trade. Trading at whole sale generally is between poor and fair. Sales are smaller than four weeks ago in all lines except drugs and paper. Wholesale quotations for shoes, gro ceries, and to some extent hardware have advanced somewhat during the month, while prices of other lines have remained practically unchanged. The dollar volume of wholesale busi ness continued to decline in December. Sales of jewelry and electrical supplies showed the largest gains from November, while dry goods, paper, and groceries registered the greatest losses. Compared with a year before, declines occurred in all lines but jewelry. W ith the exception of drugs, inventories held by dealers were reduced from the total of a year earlier. Five out of eight lines reported a smaller amount of collections in D e cember than in the like month of 1926. Retail trade. Business at retail is moving quietly, as is usual at this sea son. Several reports indicate that clear ance sales have been fairly satisfactory. With the exception of a few changes, retail prices continue steady. December sales, while increasing sea sonally, were 3.3 per cent below the total of a year before, and in the year as a whole they declined 3.9 per cent from the volume attained in 1926. Declines in the month occurred in department, credit, and men’s apparel stores, while business of women’s apparel and shoe stores in creased appreciably over the total of a year earlier. Inventories at the end of the month were, as usual, considerably under those at the end of November. Compared with a year before, stocks were smaller, ex cept in women’s apparel, men’s apparel outside of Philadelphia, and to some extent in shoes. The rate of turnover was a trifle smaller last year than in 1926. Receivables at the end of the month increased 3.2 per cent over a year before. Collections in December were 2.4 per cent below those in the same month a year earlier. Automobile trade. Sales of passen ger cars to dealers by eleven distributors, while smaller in December than in N o vember, showed a substantial gain over the number and value of a year before. Retail sales of new automobiles, on the other hand, were smaller than a month and a year earlier. Business in used cars also declined in the month and was less in value, though not in number, than the volume in December, 1926. Deferred payment retail sales decreased sharply both in number and value as compared with a month and a year before. Stocks of both new and used cars at the end of the year were appreciably greater than those on the same date in 1926. IN D U S T R IA L C O N D IT IO N S Manufacturing operations as a whole naturally show signs of some improve ment after the turn of the year and the completion of inventory listing. In recent weeks, increased activity in the steel and automobile industries has been particu larly pronounced, following a prolonged period of curtailed operations. Factory employment in Pennsylvania declined 2.2 per cent and payrolls 1.1 per cent from the November totals. In New Jersey, the number of workers de creased 0.6 per cent but wage payments increased 2.9 per cent between November and December. Delaware plants showed gains both in employment and in wage disbursement, owing chiefly to the in creased activity in the foundry and ma chinery group. Industrial consumption of electric power, though slightly smaller than in November, was 7.2 per cent ahead of the total in December, 1926. Total sales of electricity were 5 per cent greater than in November and 6 per cent larger than a year before. The output of electric power by 13 central stations also in creased in the month and was 2.5 per cent above that of a year earlier, as shown by the accompanying table. Failures of manufacturing firms in Pennsylvania, New Jersey, and Dela ware during 1927, as compared with 1926, decreased 5 per cent in number and 14 per cent in the amount of liabilities in E L E C T R IC P O W E R Philadelphia F ed eral R eserve D istrict 13 sy stem s Rated generator ca p a city......... Generated output....................... H ydro-electrie......................... Steam ........................................ Purchased................................. Sales of electricity...................... L ighting.................................... M unicipal............................. Residential and commercial P ow er........................................ M unicipal............................. Street cars and railroads. . Industries............................. All other sales......................... volved. In the country, on the other hand, similar failures increased about 5 per cent in number and almost 34 per* cent in liabilities. Iron and steel. The iron and steel industry shows signs of seasonal expan sion, although reporting firms indicate that demand is still unsatisfactory. Prices in the main have remained steady during the month, and recently have shown somewhat greater strength. Philadelphia foundry pig iron has advanced 50 cents a ton since January 10. The average price of pig iron in the country also has ad vanced steadily since the first of the year, but that of finished steel has remained practically unchanged. Several firms reporting to this bank state that their operations are somewhat lower than a month ago. W age pay ments by manufacturers making metal products in Pennsylvania, New Jersey, and Delaware increased measurably be tween November and December, although employment in Pennsylvania and New Jersey showed a slight decline. The daily output of pig iron in this district decreased about 6 per cent in December and was almost 21 per cent below that of a year earlier. Similarly, production in the country declined 7 per cent from the November daily total and nearly 13 per cent from that of December, 1926. Unfilled orders of the United States Steel Corporation were 518,430 tons, or 15 per cent, greater than in November and ex- (Daily production figures in gross tons) Pig iron— output— 9,498 10,823 Phila. Res. D is .. 99,315 107,040 United States. . . Steel ingots — out put— 150,920 138,395 United S ta tes.. . Unfilled orders— U. S. Steel Corp. 3,960,969 3,972,874 Sales of used cars....................................................... Stocks of used cars.................................................... Retail sales, deferred paym ent............................... Dec., 1926 Nov., 1927 + 4 .5 % + 2 .5 “ + 7 9 .8 “ - 8.7“ + 3 5 .6 “ + 6.0“ + 9 .3 “ + 7 .5 “ + 9 .6 “ + 5.5“ + 2.1 “ + 0 .4 “ + 7 .2 “ + 2 .0 “ - 0 .2 % + 5 .5 “ + 10.3 “ + 3. 6 “ + 1 0 .8 “ + 5.1“ + 11.6 “ + 8 .7 “ + 12.0 “ + 3.1 “ + 0 .4 “ + 15.8 “ - 0 .2 “ + 3 .9 “ WHOLESALE TRADE Philadelphia Federal Reserve District Boots and shoes... D ru gs..................... Dry good s............. Electrical supplies. Groceries............... Hardware.............. Jewelry................... P ap er...................... December, 1926 Dec., 1927, with Dec., 1926 Net sales, Dec., 1927, compared with November, 1927 Value Number Value + 5 3 .4 % - 1 .7 “ + 11.0 “ + 1 3 .7 “ + 18.8 “ -4 2 .9 “ + 5 4 .1 % - 0 .3 “ + 8 .0 “ - 5 .7 “ + 2 3 .9 “ -4 5 .8 “ - 2 .6 % -1 9 .6 “ + 1 5 .1 “ - 6 .6 “ - 0 .8 “ -3 2 .3 “ - 4 .4 % -1 9 .3 “ + 1 3 .4 “ -1 9 .9 “ - 5 .8 “ -3 3 .5 “ Stocks, Dec. 31, 1927, compared with 3 .3 % - 3 .9 % - + + + + + - 3 .8 4 .2 3 .0 0 .2 7 .0 8 .9 3 .8 4 .9 4 .8 5 .6 6 .8 4 .5 + + + + - 4 .2 5 .0 2 .2 0 .3 7 .2 8 .4 5 .8 4 .5 4 .2 5 .9 2.1 8 .7 - 3 .3 - 4 .5 - 0 .3 + 6 .7 - 4 .6 -1 2 .2 + 6 .6 + 2 2 .0 + 2 1 .2 + 2 5 .8 + 0 .5 - 8 .4 “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ 2 .7 % “ “ “ “ “ “ “ “ “ “ “ “ Accounts out standing, Dec. 31, 1927, compared with Collections, Dec., 1927, compared with Ratio of ac counts out- Dec., 1926 N ov., 1927 Dec. 31, 1926 N ov. 30. Dec. 31, 1926 1927 N ov. 30, 1927 ing to sales, Dec., 1927 Dec., 1926 N ov., 1927 -2 1 .9 % - 2 .9 “ -1 7 .2 “ - 7 .0 “ - 3 .9 “ -1 0 .7 “ + 3 .8 “ - 4 .2 “ + 2 .2 % - 0 .2 “ -2 1 .7 “ + 9 .7 “ - 5 .6 “ - 2 .2 “ + 5 9 .1 “ - 6 .3 “ ...........% + 7 .0 “ - 4 .1 “ - 6.1“ - 6 .4 “ - 7 .7 “ -1 2 .7 “ - 1.1 “ ...........% + 0 .4 “ -1 0 .1 “ -1 7 .6 “ - 6.1 “ - 5 .2 “ -2 5 .9 “ - 7 .2 “ - 7 .2 % - 8 .7 “ -1 0 .2 “ + 2 .3 “ + 0 .7 “ - 4 .1 “ - 0 .3 “ - 4 .1 “ - 8 .3 % - 4 .9 “ -1 2 .3 “ + 2 .2 “ - 6 .3 “ - 8 .3 “ + 17.0 “ - 5 .3 “ 3 4 5 .7 % 147.3 “ 242.6 “ 110.0 “ 116.8 “ 182.1 “ 253.2 “ 143.3 “ + 4 .2 % - 3 .9 “ -1 4 .1 “ + 2 0 .7 “ - 8.1“ - 7 .4 “ + 2 .9 “ - 0 .6 “ + 3 3 .3 % + 7 .1 “ + 14.0 “ + 2 5 .8 “ + 2. 0 “ + 7 .0 “ + 7 6 .8 “ - 1.4“ Jan. 1 to Dec. 31, 1927 Dec. 31, 1927, with Jan. 1 to with with Dec. 31, 1926 Dec. 31, 1926 N ov. 30, 1927 - 8 .3 Number Comparison of stocks Department stores..................... Credit stores................................ - + 0 .3 December, 1927, change from All reporting stores.................... W om en’s apparel stores........ -1 2 .2 - 7 .2 * December totals. Jan. 1 to Dec. 31 Apparel stores............................. Per centage change 1927 December, 1927, change from AUTOMOBILE TRADE Philadelphia Federal Reserve District 11 distributors Comparison of net sales RETAIL TRADE Philadelphia Federal Reserve District 1926 Outstanding Accounts at end of month compared with year ago at end of month compared with year ago during month compared with year ago 1926 1927 -1 6 .2 % 3 .52 3 .4 0 -1 3 .5 % + 3 .2 % - 2 .4 % -1 6 .7 -1 6 .1 -1 8 .2 -1 4 .2 -1 6 .0 -1 3 .4 -1 9 .6 -1 1 .8 - 8 .2 -2 5 .6 -1 2 .1 -1 2 .7 3.51 3.72 3.02 4.32 2.81 2.94 2 .6 0 6.35 6.56 5.32 2.87 3.09 3.41 3.61 2 .96 4 .17 2.67 2 .9 3 2.32 5.97 6 .17 4 .96 2 .7 8 2.64 -1 8 .0 “ + 4 .4 - 5 .5 + 4 .5 + 1 5 .0 + 1 3 .1 + + 2 .8 4 .0 2 .9 3 .9 0 .0 “ “ “ “ “ “ “ “ “ “ “ “ + 1 7 .2 “ + 2 2 .7 “ “ “ “ “ “ “ “ “ “ + 1 3 .1 “ + 1 5 .2 “ 0 .0 + 4 .5 “ + 2 3 .1 “ + 2 .3 “ - 1 .0 “ + 1 6 .2 “ 0 .0 - 7 .7 * Page Five ceeded the volume of a year before by 0.3 per cent. Among items responsible for the December gain in advance steel business were rail bookings, tinplate con tracting for the present half-year, large orders for sheets, and the usual quar terly contracts in bars, shapes, and plates. Production, shipments, and unfilled tonnage of foundries making steel cast ings increased between November and December but did not measure up to the volume of a year before. Activity of iron foundries, on the other hand, de clined noticeably from the level of a month and a year ago. Source: Iron Age Textiles. Cotton yarn dealers report a fair volume of business, while fabric makers are passing through a rather quiet season. Prices of finished products have declined a little in recent weeks, reflecting mainly a drop in quotations for raw cotton. Plant operations have de creased noticeably, and unfilled orders are below the volume at the same time last year. Stocks of yarns have decreased a little in the month but those of piece goods are appreciably larger than four weeks ago. Compared with a year ago, there is practically no change in the volume of supplies of cotton yarns and fabrics. Cotton consumption in the country was 23 per cent smaller in D e cember than in November and was about 10 per cent below the total of a year before. The volume of cotton exported was about one-half of that in December, 1926. Conditions in the silk industry show signs of improvement, after a period of curtailed operations prevailing during the greater part of last year. While the de mand is still unsatisfactory, some in creases in sales are reported. Factory employment and wage disbursements in creased appreciably from November to December, although in the first week of January plant activity declined season ally. Prices of silk goods continued to R a w silk * (Figures are monthly averages and in bales) 1925 1926 1927 Im ports....................... S torage........................ M ill takings............... 40,803 44,819 41,779 42,017 36,814 41,796 46,037 46,768 45,948 * The Silk Association of America. Page Six about the same as a month ago and orders now on the books will permit operation for a little more than a month. From November to December employment at hosiery plants in Pennsylvania increased .5 per cent, but payrolls declined 1 per cent. Most of our carpet and rug manufac turers report poor business, sales being smaller than a month and a year ago. Unfilled orders are reported as smaller than a year ago, and will insure opera tion, on the average, for about one month. The number of wage earners in the in decline in December and on January 1 were lower than at any time in the past nine years. This is a reflection of lower quotations for raw silk, although in re cent weeks prices of raw silk have turned upward. Business of local dealers in raw wool has been fairly active in the month, sales exceeding the volume of four weeks and a year ago. The demand for woolen and worsted yarns and piece goods, however, has been only fair and in somewhat smaller volume than at the same time last year. Prices of finished goods have risen further in sympathy with higher quota tions for raw wool. Unfilled orders for raw wool are greater while those for fabrics are smaller than a year ago. Practically no change is reported in the volume of advance business in yarns. Plant operations con tinue at about the same rate as that pre vailing four weeks ago. Factory employ ment and payrolls declined seasonally be tween November and December. W ool consumption in this district was 19.5 per cent less and in the country 10 per cent smaller in December than in Novem ber. Last year mill takings of raw wool in this district exceeded the total of 1926 by more than 7 per cent. Stocks of raw materials and finished products are from moderate to light and are smaller than those of a year ago. Business in clothing is seasonally quiet, and sales are smaller than a year ago. Prices generally have eased off somewhat in recent weeks. Plant operations con tinue fairly well sustained, owing mainly to the recent increase in the manufac ture of women’s clothing. Advance orders generally are appreciably below the vol ume of a year ago. Stocks have de creased slightly in the month and are about equal to those on the same date last year. There is a fair and decreased demand for women’s full-fashioned silk hosiery and the demand for men and women’s seamless continues fair or poor. There was little change in prices in the month, though some decreases in women’s fullfashioned silk were noted. Moderate stocks of finished goods show little change from last month but are smaller than those of a year ago. Plant operation is dustry increased .8 per cent from N o vember to December, while weekly wages showed a 3.7 per cent advance. Prices in general are unchanged, though a few de creases are noted in some lines. Manu facturers of linoleums and felt base goods report an encouraging volume of business, with little change in prices. Leather. The packer hide market is firm and strong, heavy native steers gain ing one cent in the past month. Supply continues to be sold up to production. The goatskin market is firm, with prices high and advancing. Black kid is in good and unchanged demand while the fair demand for colored kid shows a slight increase over that of a month ago. A few price increases are reported. Stocks of finished goods show little change in the month. There is a moderate demand for sole leather and prices have advanced. A fair and decreased demand for leather belting is reported, while prices have in creased. Demand for shoes is reported as slightly better than a month ago. Larger sales also compare favorably with those of last year. Stocks of finished goods have varied little in the month, but are smaller than those of a year ago, while unfilled orders are larger. Many firms report higher prices. Unfilled orders assure operation for about two months. B uilding. Construction is moving forward at a moderate pace, although the volume is substantially smaller than at the same time last year. Contract awards in this district increased a little over 3 per cent between November and December but were 4.5 per cent below the total of a year before, eastern Pennsyl- vania and Southern New Jersey being re sponsible for this drop. The estimated cost of building under permits in 16 cities declined 23 per cent from November to December, and was a little over one-third of the record volume attained in Decem ber, 1926. Construction costs continue unchanged, though appreciably below last year’s level. The value of mortgages recorded in Philadelphia in December was the largest of any month since last February and exceeded that for the same month in the three years before. Comparisons of building activity in the past year follow : Building Activity (Figures in thou sands of dollars) 1926 1927 Philadelphia Fed. Res. District Contracts, total $ 421,216 $ 456,686 171,302 187,530 Residential. . . . 208,600 180,021 Permits,16 cities United States Contracts, total 6,335,406 6,304,343 Residential. . . . 2,672,200 2,568,630 P e r m i t s , 168 cities.............. 3,574,816 3,166,265 Per centage change + 8.4 + 9 .5 -1 3 .7 - 0 .5 3 .9 -1 1 .4 Sources: F. W . Dodge Corp. and Federal Reserve Board. The demand for building materials con tinues sluggish, sales of lumber, cement, paint, and electrical supplies being smaller than four weeks and a year ago. Several price reductions have been noted, although the general level remains un changed. Plants manufacturing brick, tile and pottery, lumber, cement, glass, paints, and varnishes curtailed their operations during December, chiefly be cause of seasonal slackness. The output of cement in this district and in the coun try during 1927 reached a record volume. With the exception of cement, stocks are said to be moderate and somewhat lighter than a year ago. Sources: W. F . Dodge Corp. and Federal Reserve Bank of Philadelphia F lou r. Business in flour is fair and slightly more active than four weeks a g o ; but sales do not equal the volume in the same period last year. The market for middlings, bran, and other feed by-prod ucts is moderately brisk, exceeding sales o f a year ago. Prices remain steady. Little change is reported in mill opera tions. Supplies of flour are moderate and lighter than on the same date last Number of wage earners— week ended E M PLOYM EN T AND W AGES in Pennsylvania plants report ing Dec. 15, 1927 Per cent change from month ago T otal weekly wages— week ended Dec. 15, 1927 Per cent change from month ago Dee. 15, 1927 Per cent change from month ago All industries (55)............................... 830 268,764 - 2.2 $6,909,120 1 .1 $25.71 + 1.2 Metal products.................................... Blast furnaces.................................. Steel works and rolling mills........ Iron and steel forgings................... Structural iron w ork...................... Steam and hot water heat, app . . Stoves and furnaces....................... Foundries.......................................... Machinery and parts..................... Electrical apparatus....................... Engines and pum ps........................ Hardware and tools........................ Brass and bronze products........... Jewelry and novelties.................... 240 10 44 10 10 19 9 40 39 17 10 19 9 4 101,846 2,265 53,819 1,785 3,607 4,738 991 7,440 8,644 7,191 3,124 6,283 479 1,480 + + + + - 1.5 0 .2 2.2 1.9 5 .0 0 .4 8.5 0 .3 2 .6 2.3 3 .9 1.0 2.2 1.7 2,759,427 69,108 1,450,616 47,524 107,064 137,880 27,848 205,728 256,701 180,743 81,076 148,432 13,058 33,649 + 1.2 + 7.5 - 1 .2 + 3.2 + 4 .6 + 5 .8 - 1 1 .9 + 2 .7 + 4.2 + 5.1 + 6 .7 + 5.4 + 1.8 - 2 .0 27.09 30.51 26.95 26.62 29.68 29.10 28.10 27.65 29.70 25.13 25.95 23.62 27.26 22.74 + + + + + + + + + + + + - 2 .8 7 .7 1.0 1.2 10.1 5.4 3.7 2 .4 1.5 7.5 11.1 6 .4 4.1 0 .4 Transportation equipment................. Autom obiles..................................... Automobile bodies and parts. . . . Locom otives and c a r s ............... .. . Railroad repair shops..................... Ship building.................................... 42 7 12 13 7 3 30,109 3,756 6,140 14,315 3,789 2,109 + + + - 0 .6 7.1 3 .4 3 .9 1.4 4 .7 874,131 119,972 201,998 388,166 103,248 60,747 + 2 .5 + 1 4 .1 + 8.3 - 3 .0 + 4 .2 - 1.5 29.03 31.94 32.90 27.12 27.25 28.80 + + + + + + 3.2 6 .5 4.7 1.0 2.8 3 .4 Textile products.................................. Cotton good s.................................... W oolens and worsteds................... Silk good s......................................... Textile dyeing and finishing......... Carpets and rugs............................. H a ts................................................... H osiery.............................................. Knit goods, other........................... M en’s clothing................................. W om en’s clothing........................... Shirts and furnishings................... 167 14 16 40 10 9 5 28 15 11 9 10 57,820 3,998 6,692 18,108 1,942 2,805 3,890 12,022 2,896 1,801 1,242 2,424 + + + + + + + - 0 .0 2.3 7 .0 2.3 0 .9 0 .8 1.2 0 .5 2.8 3 .4 8.0 1.2 1,324,405 95,117 148,595 373,197 48,695 74,882 103,982 327,406 55,801 36,963 19,147 40,620 + + + + + + 0 .5 3 .5 6.3 5 .9 1.1 3 .7 2.5 1.0 0.3 1.3 9.3 0 .8 22.91 23.79 22.20 20.61 25.07 26.70 26.73 27.23 19.27 20.52 15.42 16.76 + + + + + + + + + 0 .4 5 .6 0 .7 3 .5 2 .0 2 .9 3 .6 1.5 2 .6 2.1 1.2 2.1 Foods and tob a cco .............................. Bread and bakery products.......... C onfectionery.................................. Ice cream .......................................... Meat packing................................... Cigars and toba cco......................... 102 29 14 11 13 35 22,055 4,362 4,727 1,141 2,111 9,714 - 6.1 - 0 .5 + 1.7 - 4.2 + 0.2 - 1 3 .0 465,658 127,649 88,727 36,597 62,494 150,191 - 4 .5 + 0.1 + 0.2 - 3 .6 - 1 .0 - 1 1 .9 21.11 29.26 18.77 32.07 29.60 15.46 + + + + 1.7 0 .6 1 .4 0 .6 1 .2 1.2 Stone, clay and glass products........ Brick, tile and pottery................... Cem ent.............................................. Glass................................................... 63 27 13 23 17,619 4,542 6,368 6,709 - 7.0 - 3.3 - 5 .8 - 1 0 .5 454,159 103,887 192,702 157,570 - 1 2 .4 - 4 .2 - 7 .4 - 2 2 .0 25.78 22.87 30.26 23.49 - 5 .8 - 1.0 - 1.7 - 1 2 .9 Lumber products................................. Lumber and planing mills............. Furniture.......................................... W ooden b oxes.................................. 44 19 19 6 4,903 2,254 1,945 704 - 3 .2 - 7.3 + 7 .8 - 1 5 .1 105,987 48,945 46,273 10,769 - 2 .0 - 7.3 + 9.3 - 1 7 .3 21.62 21.71 23.79 15.30 + 1.2 - 0.1 + 1.4 - 2 .7 Construction and contracting........... Buildings, commercial, industrial, and residential............................. Street and highw ay........................ General.............................................. 32 4,342 - 2 2 .5 116,424 - 2 7 .2 26.81 - 19 3 10 1,381 973 1,988 - 1 4 .9 - 4 2 .4 - 1 3 .2 41,894 26,341 48,189 - 1 2 .6 - 5 1 .4 - 1 6 .7 30.34 27.07 24.24 + 2 .7 - 1 5 .7 - 4 .0 Chemical products.............................. Chemicals and drugs...................... C ok e................................................... E xplosives......................................... Paints and varnishes...................... Petroleum refining.......................... 35 15 3 3 9 5 10,689 1,206 2,681 565 1,059 5,178 + + 4+ - 0.2 0.3 3 .2 4 .4 4 .2 0 .8 309,205 32,469 78,780 13,326 29,626 155,004 - 1.0 - 1.6 + 3.1 - 1 0 .8 - 1.9 - 1.8 28.93 26.92 29.38 23.59 27.98 29.94 - 1.2 - 1.9 - 0.1 -1 4 .6 + 2 .4 - 1.0 Leather and rubber products........... Leather tanning.............................. Shoes.................................................. Leather products, other................. Rubber tires and good s................. 50 17 22 7 4 11,436 5,876 3,935 686 939 - 1.1 - 1.8 - 0.1 - 5 .0 + 2.3 258,670 148,299 67,520 15,162 27,689 + 0 .8 - 2.2 - 0 .0 + 5.1 + 2 0 .2 22.62 25.24 17.16 22.10 29.49 + + + + Paper and printing.............................. Paper and wood pu lp ..................... Paper boxes and bags.................... Printing and publishing................. 55 12 6 37 7,945 3,200 796 3,949 0 .2 0.2 3.2 0 .4 241,054 93,556 12,236 135,262 + - 0 .6 0 .5 4 .6 0 .9 30.34 29.24 15.37 34.25 - 0 .4 + 0 .7 - 1.5 - 1.3 year. Supplies of flour in Philadelphia warehouses, though increasing since last month, were about 23 per cent smaller on January 3 than a year before. Stocks of wheat, on the contrary, were nearly twice as large as at the same time last year. Paper. The demand for paper is fair, although sales do not compare favorably + - Average weekly earnings— week ended 6.1 1.9 0 .4 0.1 10.6 17.5 with the volume of a year ago. Paper and pulp prices have declined slightly in the month. Several plants show some seasonal curtailment, although most of them continue to operate at unchanged rates. Stocks of finished products are a trifle lower than on the same date last year. The output of newsprint paper by United States mills was nearly 12 per Page Seven cent less in 1927 than in 1926, whereas Canadian mills showed a gain of almost 11 per cent. Stocks of newsprint paper in both countries at the end of the year were nearly twice as heavy as on the same date in 1926. Coal. The market for anthracite re mains greatly hampered by the continu ance of mild weather this winter. Prices of domestic sizes have declined slightly while those of steam sizes remained fairly stationary during the month. Reports on colliery operations during the first fort night of January show little change from the December rate, when wage disburse ments were about 12 per cent under N o vember and almost 17 per cent below the level of a year before. In the period from March to December inclusive, the total of wage payments of reporting mines was 15.7 per cent smaller than in the corresponding months of 1926. Output in the four weeks ended January 14 was 3 per cent greater than in the preced ing four weeks. Conditions in the soft coal industry continue unsatisfactory, the demand be ing generally poor. Prices have declined a little further. Collieries showing re duced operations outnumber those report ing gains in production. The output in the four weeks ended January 14 was 3 per cent larger than in the previ ous four weeks. ' Cigars. Business in cigars is more than seasonally slow, sales lagging be hind those of a year ago. Plant opera tions are considerably under the level prevailing at the same time last year, although some betterment has occurred in the last fortnight. Unfilled orders, however, are smaller than a year ago, as are stocks of finished products. Prices show little change. BUSINESS CONDITIONS IN THE PHILADELPHIA FEDERAL RESERVE DISTRICT P rices Dem and Unfilled orders com pared w ith a year ago R etail trade ................. W h o le sa le trade . . . . D rugs .......................... D ry goods ................. E le ctrica l supplies . G roceries ................... H ardware ................... Jew elry ....................... Paper .......................... Shoes ........................... W o o l .......................... C otton yarns ............. Iron and steel p rod ucts .......................... Cotton .............................. Silk .................................. Little change Seasonally Unchanged Unchanged Some decreases Slightly higher Little change Unchanged Little change Higher Higher Lower Some advances F a ir; increased Fair to poor, decreased Fair, though less active Fair, though less active Fair to p o o r ; decreased Fair, though less active Fairly g o o d ; increased Fair Fairly good Fair Fair to p oor; some im provement Fair to poor Less than fair; though improving Spot delivery Spot delivery Spot delivery Spot deliver',* Spot delivery Spot delivery Spot delivery Spot delivery Larger Slightly smaller Larger W o o l ................................ C lothin g .......................... H o sie ry ........................... Higher Slightly lower A few decreases C arpets and rugs . . . . Shoes ............................... Leather b eltin g ......... Little change Higher Higher Only fair; decreased Slow Fair in full-fashioned; fair or poor in seamless Poor Fair Fair Leather— kid ................. Some advances Fairly good L eather— sole ............... P aper .............................. Cigars and t o b a c c o . . . Paint .............................. Cement ............................ F lou r .............................. Higher Slight decline S'ightly lower Generally unchanged Generally unchanged F irm ; unchanged Fair Fair Hardly fair Only fair, declined Only fair, declined F a ir; slightly increased Smaller Smaller Smaller than a month ago Smaller Larger Slightly smaller than a month ago Smaller than a month ago Little change Smaller Smaller Unchanged Smaller B u ildin g Construction changed ......................... C oal— anthracite .......... C oal— bitu m inou s .... Some decline Lower for good s; higher for raw silk Smaller Smaller Slightly larger Smaller Smaller Smaller Smaller Smaller Smaller Number o f losses offset gains Lower Higher in December but lower first week in January Declined Little change Unchanged Smaller A trifle smaller Moderate Larger Larger Smaller Slightly smaller M oderate; little change Decreased Slightly larger Declined Smaller Slightly smaller Larger Little Little change change Slight increase Little change Smaller Smaller Heavier Increased, but smaller than a year ago Slight decrease Little change Little change A trifle lower Lower Little change Only fair Larger than year ago Poor Output Larger than year ago Slow Dom estio sizes declined; steam sizes unchanged Lower Smaller quiet Value o f December con tracts increased, but under a year ago A little higher un Page Eight costs S tock O perations Value o f December per mits declined little larger
@FedFRASER