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BUSI NESS A N D F I N A N C I A L
CONDITIONS
IN THE
RESERVE DISTRICT
JANUARY 2. m t
THIRD FEDERAL
PHILADELPHIA
By RICHARD L. AUSTIN, Federal Reserve Agent ar.d Chairman
FEDERAL RESERVE BANK of PHILADELPHIA
GENERAL SUMMARY
clining demand and reduced operating schedules.
Retail trade, however, has been good, owing to the
F o r sum m ary o f F e d e ra l R eserve B oard on business conditions
usual Christmas buying, and advance reports indicate
th ro u g h o u t th e U n ite d S tates, see pink slip in serted in this report.
P age
that the holiday trade this year will compare favor
B an k e rs’ a c c e p ta n c e s ............
.. 6
B ricks ........................................
11
ably with that of 1920. But wholesale business has
10
B uilding m a t e r i a l s ................
C hristm as savings c lu b s .. . .
.. 7
been poor, and general manufacturing activity low.
.. 12
Coal, a n th ra c ite .......................
. . 13
Coal, b itu m in o u s.....................
It must be remembered, of course, that in these fields
. . 13
Coke ...........................................
.. 6
C om m ercial p a p e r..................
December is normally a month of relative dulness
. . 23
C o nfectionery .........................
. . 14
C otton g o o d s...........................
because of the taking of inventories. But the desire
C otton, ra w .............................
. . 15
F in a n c ia l s itu a tio n ................
.. 5
to show small inventory figures on financial state
F lo o r co v erin g s.......................
. . 18
F o reig n e x ch a n g e ..................
.. 8
ments is more pronounced this year than ever before,
G eneral s u m m a ry ..................
..
1
Glass ...........................................
12
and as a result there has been little ordering for im
G roceries, w h o lesale..............
.. 22
H a rd w are, w h o lesale...........
.. 12
mediate delivery. Future buying, too, has been ab
H id es an d s k in s ....................
.. 2
0
H o s i e r y ......................................
. . 16
normally low. There is much in underlying con
Iro n a n d s te e l.........................
.. 8
L e a th e r ....................................
. . 19
ditions to indicate that general business may soon
L e a th e r g o o d s.........................
.. 2
0
L u m b e r ......................................
11
resume its movement toward recovery, but it is also
P a in t .........................................
11
P a p e r ........................................
.. 21
true that little, if any, improvement has been made
P a p e r b o x e s.............................
. . 18
P e tro leu m ................................
. . 14
during December.
P rin tin g a n d p u b lis h in g ...
. . 22
R etail tr a d e .............................
.. 8
The reaction in the iron and steel industry has been
Savings d ep o sits....................
.. 7
S ecu rities ................................
more severe perhaps than in any other. In the
.. 6
Shoes ........................................
... 20
Silks ...........................................
latter part of November the demand began to fall
. 15
Tobacco, c ig a rs ......................
. . 24
Tobacco, le a f ...........................
off, and today the amount of business being trans
. . 25
U n d e rw ea r .............................
. . 16
W ool, ra w ..................................
acted is very small. Production has been further
. . 18
W oolen a n d w orsted goods.
. . 17
W oolen a n d w orsted y a rn s
curtailed, and the industry is operating at a rate but
. . 18
little above that of the exceptionally inactive period
O N T IN U IN G the reaction which began early of last summer. But even at the low rate now being
in November after three weeks of marked maintained, production exceeds consumption, and
improvement, business conditions in the stocks are accumulating. There is much unevenness,
Third Federal Reserve District have been exceed however, both in sales and in production schedules,
ingly dull during the past month. A ll industries, for several firms, particularly those manufacturing
with the exception of two,— and these were relatively special machinery, have reported the receipt of fair
minor in scope,— have passed through a period of de sized orders. But the industry in general has had a
CO N TEN TS
....
..
..
..
C
poor month, and the firms in this district have suf
fered rather more than those in other iron and steel
centers.
The coal industry, too, has been adversely affected.
The market for bituminous coal is practically stag
nant ; in fact, the demand is so small that in spite of
greatly curtailed production, stocks continue to grow.
Prices have declined, especially on coal from union
mines, the present level being about 16 per cent be
low that of July. T o this result the importation of
British coal has been a contributing influence. A n
thracite coa- ccnd-tions are littie better. The cooler
weather of die past month slightly stimulated retail
sa1es, but consumers have not laid in their entire
winter’s supply, and tlie rcsu:t is that thus far the
season’s volume of sales has been discouraging both
to retailers and operators; so much so, indeed, that
several firms have already closed their mines, and
others contemplate doing so if a substantial buying
movement does not soon develop.
In several of the textile industries also, much of the
gain made in the early fall has been lost. The de
mand for cotton goods, both for immediate and
future shipment, has dropped considerably, opera
tions have been curtailed and prices have declined.
The call for cotton yarns has been much smaller and
there has been little purchasing of raw cotton. The
final government cotton crop estimate of 8,340,000
bales was more than 1,800,000 bales greater than
that previously reported, and the prospects of a larger
supply have had the usual effect on the demand.
Although the raw wool market has maintained much
of the activity it displayed during the last three
months, sales of carpet wools being particularly good,
the demand for woolen and worsted goods has de
clined sharply. Recent business in the men’s clothing
industry has been slight, and as a result, the call for
woolen goods from this source has been negligible.
The garment makers’ strike in New York has also
aided in curtailing sales of woolen and worsted cloth.
The demand for broad silks, however, has improved
somewhat, but that for raw and thrown silk is still
small.
The hosiery industry is one of the very few that
have maintained their position during the month.
The demand for heather hosiery has been excep
tionally good, owing to fashion’s having decreed an
other low shoe winter, and manufacturers have had
difficulty in supplying it. For silk hosiery, too, the
call for immediate delivery has been large, but owing
to the marked advance in raw silk quotations and the
uncertainly as to their future trend, the placing of
forward delivery orders has been checked. A fair
volume of business has been transacted in infant’s
and children’s cotton stockings, but orders for men’s
and women’s cotton hosiery have been small. The
underwear industry has received a few repeat orders
for heavy-weight goods for immediate shipment.
General showings of heavy-weight lines for next
fall will not be made until January, but already
some orders have been booked. V ery little business
has been done, however, in light-weight underwear,
jobbers being disposed to wait until the raw cotton
market becomes settled.
General conditions in the shoe industry have not
improved. Firms manufacturing the cheaper grades
have received a fair amount of business, but the
demand for shoes of the better quality has fallen off.
Especially is this the case with respect to women’s
shoes, owing to the uncertainty as to colors and styles
for next spring. It is true, however, that a rather
large number of orders for white shoes has already
been placed. The leather markets have reacted to
conditions in the shoe industry. Glazed kid manu
facturers have caught up with the demand for the
finer grades, and some stocks are therefore accumu
lating. But because of the increased call for cheap
shoes there has been a larger demand for the medium
and lower grade kids. This is equally true of calf
leathers. Although the domestic demand for leather
in general has fallen off considerably, exports have
increased and have relieved the market of many dis
tress stocks.
No betterment in conditions has been reported by
the paper industry. The demand has been less than
it was in November, as consumers at that time sup
plied their needs for the balance of the year and there
has been little ordering for 1922 delivery. Paper
prices have been firm, with the exception of those on
newsprint and box board, which have declined. The
printing and publishing industry has also reported
a falling demand, and, as a result, there has been a
renewal of price cutting. The cigar industry has
received a fair volume of repeat orders during the
month, as early buying by dealers was conservative
and retail sales of Christmas goods have been larger
than was anticipated. This has been true also of the
confectionery demand. Wholesale grocers report a
falling off in the call for all goods, with the exception
of those required for the holidays.
Industrial activity in this district during the latter
half of 1921 may be measured by the accompanying
tables, compiled from 517 replies to a questionnaire
on labor conditions. It will be seen that the number
T A B U L A T E D S T A T IS T IC S O N E M P L O Y M E N T C O N D IT IO N S IN T H E
T H IR D F E D E R A L R E S E R V E D IS T R IC T
T ab le no. i
A s obtained from 517 questionnaires
Number
of reporting
firm
s
INDUSTRY
B U IL D IN G
AND
STEEL
Percentage of increase or
decrease in number of employees
December 1,1921, com
pared with
June 1, 1921 September 1, 1921
June 1, 1921
Sept. 1, 1921
9
9
4
4
12
6
3
47
1,210
3,163
926
521
2,676
820
122
9,438
1,038
3,340
981
422
2,437
791
119
9,128
—14.2
+ 5.6
+ 5.9
—19.0
— 8.9
— 3.5
— 2.5
— 3 3
1,136
2,413
1,242
561
2,527
789
138
8,806
— 6.1
—23.7
+34.1
+ 7.7
— 5.6
— 3.8
+ 13.1
— 6.7
+ 9.4
—27.8
+ 26.6
+ 32.9
+ 3.7
— .3
+ 16.0
— 3 5
3
2,979
412
1,105
664
1,852
1,291
385
5,498
1,007
1,325
2,051
8,958
9,733
596
5,302
43,158
+25.2
—26 7
—15.6
— 5.0
— 5.8
—10.6
— 5.9
—12.2
— 4.7
— 4.3
—23.8
— 1 .9
—35.5
+274.8
+ 2.9
—13.2
1,886
562
1,154
740
1,816
1,514
441
5,742
1,021
l'296
2+63
8'731
7'762
657
5,808
41,593
—20.7
6
3
19
3
6
35
3
3
13
4
4
4
6
116
2,379
562
1,310
699
1,966
1,444
409
6,263
1,057
1,384
2,691
9,128
15,094
159
5,151
49,696
—11.9
+ 5.9
— 7.6
+ 4.8
+ 7.8
— 8.3
— 3 4
— 6 4
— 8.5
— 4 3
—48 6
+313.2
+ 12.8
—16.3
—36.7
+ 36.4
+ 4.4
+ 11.4
— 1.9
+ 17.3
+ 14.5
+ 4.4
+ 14
— 2 2
+20 1
2 5
20
+ 10 2
+ 9.5
— 3.6
29
5
10
44
4,073
488
1,495
6,056
4,900
500
1,704
7,104
+20.3
+ 2.5
+ 14.0
+ 17.3-
5,774
'520
1,973
8,267
+ 41.8
+ 6.6
+ 32.0
+36.5
+
+
+
+
3
5
8
941
3,901
4,842
981
4,250
5,231
+ 4.3.
+ 8.9
+ 8.0
' 992
4,402
5,394
+ 5.4
+ 12.8
+ 11.4
+ 1 1
+ 3.6
+ 3.1
29
5
16
10
14
22
13
13
23
18
164
5,532
1,193
6,084
423
2,401
8,050
3,581
1,070
4,616
7,025
39,975
5,999
1,351
6,436
492
2,619
8,239
3,225
1,186
4,100
6,815
40,462
+ 8.4
+ 13.2
+ 5.8
+ 16.3
+ 9.1
+ 2.3
— 9.9
+ 10.8
—11.2
— 3.0
+ 1.2
6,379
1+86
6+36
574
2,987
7,763
2,906
1+53
3,662
7,704
41,650
+ 15.3
+ 16.2
+ 14.0
+ 35.7
+ 24.4
— 3.6
—18.8
+ 26.4
—20.7
+ 9.7
+ 4.2
+ 6.3
+ 2.6
+ 7.8
+ 16.7
+ 14.1
— 5.8
— 9.9
+ 14.1
—10.7
+ 13.0
+ 2.9
23
3
9
15
7
6
17
24
7
19
6
3
139
517
2,080
960
1,226
6,923
1,360
458
1,955
3,697
919
1,407
892
1,734 >
23,614
133,^18
2,247
+ 8.0
2,079
+ 116.6
— 9.6
1,108
— 1.0
6,852
+ 16.6
1,586
+ 10.5
506
— .3
1,949
— 1.3
3,648
885
— 3.7
1,468 - ___ .
+ 4.3
853
4.4
1,946
> 42.2
25,127
+ \ +
130,210
* — 2\6
2,462
2,270
1,248
7,107
1,711
495
2,220
3,934
944
1,522
917
1,728
26,558
132,268
+ 18.4
+ 136.5
+ 18
+ 2.7
+ 25.8
+ 8.1
+ 13.6
+ 6.4
+ 2.7
+ 8.2
+ 2.8
— .3
+ 12.5
— 1.0
+ 9.6
+ 9.2
+ 12.6
+ 3.7
+ 7.9
— 2.2
+ 13.9
+ 7.8
+ 6.7
+ 3.7
+ 7.5
—11.2
+ 5.7
+ 1.6
PRODU CTS
Automobile parts.
Ball bearings..
Bars.......
Bolts, nuts and rivets
Castings and forgings. . .
Engines, pumps, boilers, tanks. .
Hardware . . . .
Machinery and tools . .
Pig iron.................
Pipes and tubes.................
Plates..........................
Railway equipment.................
Shipbuilding...............................
Wire and wire products............
Miscellaneous.............................
Totals.................................
LEATH ER
Percentage of increase Number of
or decrease in num
ber employees
of employees Septem December 1,
ber 1, 1921, com
pared
1921
with June 1, 1921
M A T E R IA L S
Brick..............
....
Cement............
Gas and electric fixtures.............
Glass. . . .
Lumber (mill work)....................
P aint........
Plumbing.
Totals........
IR O N
Number of employees
4
0
PRO DU CTS
Leather.................................
Leather belting............................
Leather—shoes.................
I otals......................
17 8
40
15.8
16.4
M IN IN G
Coal—anthracite.......................
Coal—bituminous.......................
1 otals.............................
T E X T IL E A N D A L L IE D PR O D U CTS
Carpets and rugs........
Clothing................
Cotton goods........
Cotton yarns............
Hosiery................
Silk goods...............
Silk yarns................
Underwear..............
Woolen goods.........
Woolen yarns...........
Totals........................
M IS C E L L A N E O U S
Boxes—paper............................
Canned goods..............................
Chemicals....................................
Cigars and cigarettes..................
Confectionery..............................
Flour............................................
Furniture.....................................
Paper............................................
Pottery........................................
Printing and publishing..............
Rubber goods..............................
Rubber tires................................
Totals...................................
Grand totals.........................
GF 3PK1r SELPH1A
N
20?8
Ns................
THE
T A B U L A T E D S T A T IS T IC S O N E M P L O Y M E N T C O N D IT IO N S IN
T H IR D F E D E R A L R E S E R V E D I S T R I C T
As obtained from 517 questionnaires
T ab le no. 2
(Number of workers who were employed on December 1, 1921, divided according to hours of employment.)
Number
of firm
s
reporting
Number
of firms
reporting
than
ore than
Full time M time Less time
half
half
Total
584
Brick......................
Cement.................. 2,021
Gas and electric fix
tures ................... 1,242
561
Glass......................
Lumber (mill work) 2,525
741
P aint.....................
115
Plumbing...............
469
371
1,136
2,413
9
9
Coal—anthracite.
Coal—bituminous
992
245
4,113
44
992
4,402
1,242
561
2,527
789
138
4
4
12
Totals..............
1,237
4,113
44
5,394
1,256
14
7,789
913
8,806
47
5,109
1,386
6,787
536
2,961
5,029
2,450
1,280
6
29
5
16
31
262
6,379
1,386
6,936
574
2,987
7,763
2,906
1,353
3,662
7,704
885
41,650
163
2,462
2,270
1,248
23
3
9
7,107
1,711
495
15
7
6
17
24
7
INDUSTRY
83
21
2
48
23
time
More than
half time
Less than
half time
Total
T E X T IL E AN D A L
6
3
L IE D
PRODU CTS
914
531
551
631
31
162
341
441
1,886
'562
1,154
253
397
90
740
1,134
101
1,816
127
257
1,514
441
3
6
1,723
627
1,082
1,729
2,435
6,379
3,899
385
182
503
6,181
1,325
5,742
1,021
l'296
2,463
8,731
7,762
35
3
3
13
4
4
1,747
2,268
1,219
713
‘ 29
7,107
1,592
458
1,874
3,019
377
119
26
346
643
565
1,483
522
1,728
37
388
23,394
2,866
560
”9
10
14
22
13
13
23
18
19
1,387
184
6,316
2,888
” ‘3
3
581
34,449
Totals..............
3
4
6
6,023
Boxes—paper. . . .
Canned goods.. ..
Chemicals............
Cigars and
cigarettes.........
Confectionery.. . .
Flour....................
Furniture.............
Paper...................
Pottery................
Printing and pub
lishing..............
Rubber goods. . . .
Rubber tires........
PRODU CTS
i43
38
23
2,174
456
64
743
1,419
Totals..............
104
Carpets and rugs.
Clothing..............
Cotton goods
Cotton yarns
Hosiery................
Silk goods............
Silk yarns............
Underwear..........
Woolen goods.. . .
Woolen yarns. . . .
IR O N A N D S T E E L
Automobile parts..
Ball bearings........
Bars.......................
Bolts, nuts and
rivets.................
Castings and forg
ings....................
Engines, pumps,
boilers, tanks. . .
Hardware..............
M achinery and
tools...................
Pig iron.................
Pipes and tubes. ..
Plates.....................
Railway equipment
Shipbuilding..........
Wire and wire
products............
Miscellaneous........
Full
M IN IN G
B U IL D IN G M A T E R IA L S
Totals................
INDUSTRY
M IS C E L L A N E O U S
519
5,210
Totals................ 24,105
120
9
32
231
115
58
138
507
91
657
5,808
4
6
15,859
1,629
41,593
116
Leather.................. 5,614
451
Leather belting. . .
Leather—shoes---- 1,745
129
69
228
31
5,774
520
1,973
29
5
10
7,810
426
31
8,267
11
2,220
272
2
2
7
3,934
944
1,522
917
1,728
19
26,558
139
6
44
L E A T H E R PRO DU CTS
Totals................
298
3
GRAND SUM M ARY
Full time
Number of Percentage
of total
employees
More thar half time
Number of
employees
Less than half time
Percentage Number of
of total
employees
Number of firms
Percentage
of total
Total
Reporting
7,789
24,105
7,810
1,237
34,449
23,394
88.4%
58.0%
94.5%
22.9%
82.7%
88.1%
913
15,859
426
4,113
6,316
2,866
10.4%
38.1%
5.1%
76.3%
15.2%
10.8%
104
1,629
31
44
885
298
1.2%
3.9%
•4%
•8%
2-1%
1-1%
8,806
41,593
8,267
5,394
41'650
26*558
T otal.........................
98,784
74.7%
30,493
23.0%
2,991
2.3%
132,268
4
47
116
44
8
163
139
517
39
37
35
4
118
105
83.0%
31.9%
79.5%
50.0%
72.4%
75.5%
O
O
Building materials...........
Iron and steel products...
Leather products.............
Mining..............................
Textile and allied products
Miscellaneous...................
Working on Percentage
full time
on full time
65.4%
of employees on the pay roll of the reporting firms
on December i,— 132,268— was 1 per cent less than
that on June 1, but 4.5 per cent larger than that on
September 1. The figures substantiate the unemploy
ment estimate of the Pennsylvania State Department
of Labor. That bureau reported 176,155 unem
ployed in the six cities of Altoona, Harrisburg,
Johnstown, Philadelphia, Scranton and Williams
port, on June 1, 211,577 011 September 1, and 197,132 on December 1. Employment information con
cerning individual industries and groups of industries
is disclosed in the subtotals and details of the tables.
Additional evidence of the fact that industrial activity
has been declining in recent weeks is found in the
latest report on unemployment by the Pennsylvania
Department of Labor. On December 15, the number
of unemployed in the cities mentioned above in
creased 9.4 per cent over that of December 1. The
largest part of this increase is accounted for by the
closing of the coal mines in the Scranton district,
where unemployment increased 66.5 per cent.
Conflicting tendencies are again exhibited by sta
tistics indicative of general conditions. The unfilled
orders of the United States Steel Corporation were
4,250,542 tons on November 30,— a decrease of 36,287 tons, as compared with those on October 31, and
less than one half of those on hand November 30,
1920. However, both pig iron and steel ingot pro
duction increased. In fact, pig iron production
during November— 14,415,481 tons— was larger than
that of any month since March. Steel ingot produc
tion during November,— 1,660,001 tons— was the
largest since February. The estimated cost of build
ing permits issued in the Third Federal Reserve
District during November was $9,290,556, a de
crease of 4.2 per cent as compared with the cost of
those issued in October. It should be noted in this
connection that although a large number of permits
have been issued, but little actual construction is
being done, owing to the approach of winter and to
the uncertainty as to costs of building materials and
labor. Too much attention cannot be directed to the
fact that the number of commercial failures in the
United States, and especially in this district, has been
rapidly increasing. There were 102 failures of over
$5,000 in the Third Federal Reserve District in
November, 77 in October, and 63 in September, as
reported by R. G. Dun & Company. In the countrv
as a whole there were 1466 failures in September,
1713 in October, and 1988 in November.
Distinctly encouraging as measuring the volume
of business transacted in the United States are the
figures showing debits to individual accounts. The
average debit in the country as a whole for the four
weeks ending December 14, was $8,177,177,000 as
compared with $7,701,789,000 for the same period
ending November 16. For the Third Federal Re
serve District the respective figures were $371,613,000 and $351,901,000. Then, too, the volume of new
securities issued in November was more than twice
the volume issued in October. The wholesale com
modity price index numbers have changed but
slightly. The Bradstreet number fell from 11.3514
in October to 11.3127 in November. The Dun index,
however, continued its upward trend, the number for
October being 163.665 and that for November 164.531. The index number of the Bureau of Labor
Statistics again declined, the number for November
being 149, compared with 150 for October and 152
for September.
FINANCIAL SITUATION
Changes in the monetary and banking situation
were not as marked during the period from Novem
ber 16 to December 14 as in the previous month, but
such as they were they indicate further improvement.
The only Federal Reserve Bank to lower its rate
was that of Richmond, which had not previously
done so. Bankers’ acceptances are generally quoted
at 4^8 per cent, a decrease of from 4 to 4 of one
per cent from a. month ago. Commercial paper is
offered at a discount of from 5 to 5 4 per cent, but a
larger number of names are selling at the lower
yields than hitherto. The issue of 6-month United
States certificates of indebtedness, dated December
15, bore 4 4 per cent,— the same rate as the issue of
November 1.
A further decline of $45,000,000 in the holdings
of bills discounted by the Federal Reserve Banks was
reported, but this decrease was smaller in amount
than it has been in other recent months. In the sum
mary presented herewith, figures are given for some
of the principal items in the statements of the Federal
Reserve System (ooo’s omitted in dollar figures) :
Dec. 14, N ov. 16,
1921
1921
P eak
Bills discounted.. $1,153 $1,198 $2,826
Total earning as
sets ...................
1,483
1,482 3,422
Members’ reserve
deposits ............
1,646
1,674 1,923
Total d ep o sits....
1,743 1,737 2,101
Fed. Res. note cir
culation ............
2,394
2,398 3,404
Total reserv es...
3,002 2,969 3,002
5
D ate of % o f decline
peak
from peak
11/5/20 —59%
10/15/20 —57“
1/2/20 —14“
2/27/20 —17“
12/23/20 —3 0 “
12/14/21
C ommercial P aper
The ratio of reserves to notes and deposits increased
from 71.8 to 72.6 per cent between November 16
and December 14. The Reserve banks in some of the
agricultural sections, however, report more material
gains than this would indicate. If we eliminate redis
counting transactions between Federal Reserve banks,
we find that the reserve ratio of Richmond increased
from 38.3 to 46.1 per cent; of Atlanta, from 35.6
to 4 1; and of Minneapolis, from 47.4 to 56.4. Bor
rowing between the Federal Reserve banks amounted
to only $1,000,000 on December 14.
The total loans, discounts, and investments of more
than 800 reporting member banks throughout the
country on December 7 were $14,759,000,000, a de
crease of $2,524,000,000, or 15 per cent, from the
high point on October 15, 1920. These figures are
inclusive of borrowings from the Federal Reserve
banks.
The supply of commercial paper has not increased
during the month and in some respects is inadequate
to meet the requirements of the market. In particu
lar, several dealers report difficulty in securing paper
of high grade. One of the reasons advanced for this
is that many borrowers wish to avoid increasing their
outstanding bills prior to their taking inventory.
Rates quoted vary from 5 to 5 J4 per cent, but the
great majority of sales are at 5 and 5
Per cent.
Quality is given much more consideration by most
buyers than the yield, and it is becoming increasingly
difficult to sell names whose last statement— and the
last statement must be of recent date— does not show
quick assets of at least double the amount of pay
ables. Brokers report that not in many years of
experience have they seen buyers scrutinize the fi
nancial status of drawers so closely.
S ecurities
B ankers ’ A cceptances
Although the first two weeks of December have
been quieter in the bond and stock markets, securities
are still moving in good volume, and new issues are
readily absorbed. The monthly record of bond sales
maintained by the W all Street Journal shows that
sales of bonds in November were $397,945,000. and
in October, $336,426,000. The November figure
was the highest since December, 1920, when sales
were particularly heavy because of the efforts of se
curity owners to establish losses to be deducted in
computing income taxes.
The December 15 issues of Treasury certificates of
indebtedness were largely oversubscribed. Subscrip
tions received amounted to $1,183,102,000, and final
allotments to $308,447,000. The Philadelphia Fed
eral Reserve District subscribed to the amount of
$254,263,500, but was allotted only $29,595,500.
Treasury certificates are quoted at a premium, and
both stocks and bonds have increased in price during
the last month. The following table gives compara
tive prices of certain groups of securities:
Dec. 14, 1921
A verages:
20 industrial stocks..
20 railroad stocks . . .
40 bonds .....................
4 Liberty Bonds___
N ov. 16, 1921
Dec. 16, 1920
$81.04
74.08
83.82
97.45
$77.13
74.08
81.64
95.06
Four dealers in acceptances operating in the Third
Federal Reserve District report sales during No
vember totaling $16,743,000, as compared with $9,980,000 in October, and $9,093,000 in November,
1920. Three of these, who also give country-wide
figures, report an increase of only .5 per cent over
October, and a decline of 15 per cent from November,
1920. O f five dealers, only one states that the supply
is not sufficient to meet the demand. A t present the
high rates for call money and the more attractive
yields on bonds have diverted a portion of the funds
which are usually invested in acceptances.
Twelve banks in the Third Federal Reserve
District executed $3,564,000 of acceptances during
the month ending December 10, which is a marked
decline from the November figure of $6,325,000.
Acceptances of these banks outstanding on December
10, however, were not much lower than on Novem
ber 10, the decrease being from $11,824,000 to
$ 11,231,000.
Exports of grain, flour, cotton and meat products,
imports of sugar and coffee, and the warehousing of
cotton and tobacco were the principal transactions
that gave rise to acceptances executed recently. Dol
lar exchange operations were also of importance.
T w o of the largest dealers give the following esti
mates of the relative importance of the various types
of transactions in connection with acceptances of the
past month:
$70.26
72.53
74.83
86.99
New security issues increased from a low point of
$103,149,000 in October, to $255,938,000 in No
vember. In November, 1920, new securities were
issued to the amount of $176,700,000.
6
D ealer no. 1
20%
50 “
20 “
W areh o u sin g .............
Exports and imports.
Domestic shipments..
Dollar exchange.......
20%
60“
19 “
1“
10“
Selling rates in effect in the middle of the months
of December, 1921, November, 1921, and December,
1920, follow:
Dec., 1921
M em bers:
30 to 90 days.................
180 d a y s .........................
Non-members:
30 to 90 days.................
180 d a y s .........................
N ov., 1921
4%
4/$-4jH$
4J ~ ^
4 4
4/ - 4H
4/-4;H5
4^— ^
4-’
B anks re p o rtin g N um ber of A m ount of A verage
no club having club depositors
deposits
deposit
1920:
National banks. 309
State institutions 186
227
182
145,411 $5,433,160 $37.36
239,817 9,494,388 39.59
Totals .......... 495
1921:
National banks. 282
State institutions 169
409
385,228 $14,927,548 $38.75
254
199
169,913 $6,354,066 $37.40
272,398 10,416,064 38.24
Totals .......... 451
453
442,311 $16,770,130 $37.91
D ec., 1920
45/8-5
6
-
6%
6 /-6 /
S a v in g s D e p o s it s
Data on the deposits in Christmas Savings Funds
received from 70 per cent of the banks in this district
show that approximately one-half of the banks were
carrying funds of that kind. Deposits increased from
$14,927,000 in 1920 to $16,770,000 in 1921. The
number of depositors, however, increased in greater
ratio, and the average deposit decreased from $38.75
to $37.91. Figures in detail are given herewith:
CH RISTM AS SAVINGS CLUBS
D ealer no. 2
In the 1921 totals given above, the reports of 29
banks which were incorporated during the past year
are not included. They report 11,780 depositors,
deposits of $414,567, and an average deposit of
$35.19.
Deposits in 24 savings banks again decreased
during November. This decline, however, was due
to the five Philadelphia banks, the 19 banks outside
that city reporting a slight increase.
SAVINGS D E PO SIT S
In
P h ilad elp h ia
1921—December 1 . . . .
November 1 . . . .
October 1..........
September 1 . . . .
1920—December 1 . . . .
7
O utside
P h ilad elp h ia
T otals
$247,457,000 $52,293,000 $299,750,000
248,286,000 52,282,000 300,568,000
249,117,000
52,435,000 301,552,000
250,088,000 52,670,000 302,758,000
243,507,000 50,516,000 294,023,000
FOREIGN EXCHANGE
and that merchandise of medium price and of good
value is chosen by most buyers. The departments
selling phonographs and similar articles report that
business is far below that of recent years, and it
would seem that this is one line in which the demand
was largely satisfied during the era of prosperity.
Our report of November business of firms outside
of Philadelphia shows a reduction in net sales of
4.6 per cent, as compared with those of November,
1920. W e feel that this figure needs some explana
tion, because one of the reporting firms shows an in
crease of 83 per cent for the same period. A year
ago this firm was rebuilding and putting through im
portant changes that have greatly increased its busi
ness. Leaving out the figures of that store, the
showing for November would be 12.7 per cent. Busi
ness in those sections in which the iron and steel in
dustries predominate continues to run further be
hind last year’s than does the business in the other
parts of this district.
The past month has seen a further remarkable
recovery in nearly all of the foreign exchanges. A s
seen in the accompanying table, all foreign currencies,
— with the exception of those of silver standard
countries, which decline in sympathy with the falling
price of silver— were quoted on December 20 at
levels considerably higher than those of November
20. A s this display of strength is quite unusual for
this period of the year, when exchanges normally
decline, it is probably attributable in large measure to
favorable political developments. The material prog
ress made by the Washington conference, and the
somewhat closer approximation to a settlement of the
Irish difficulties, as well as the discussion by the Allies
of a moratorium on reparations payments, are
generally accepted by financial interests as being con
structive factors in the foreign situation.
FO R EIG N EX CH A NG E RA TES
Dec. 19
Nov. 19
N et change
London ..................... $4.1998 $4.0021 $ + .1977
Paris ................................. 0802
.0722
+.0080
A n tw e r p ...........................0772
.0699
+.0073
C o p e n h ag e n ....................2093
.1840
+.0253
Stockholm ........................2493
.2337
+.0156
M adrid ............................. 1485
.1376
+.0109
Amsterdam ......................3656
.3522
+.0134
Buenos A ir e s .................. 7558
.7436
+.0122
S h a n g h a i......................... 7636
.7721
—.0085
.1882
+.0066
B e r n e ............................... 1948
M il a n ............................... 0452
.0417
+.0035
Berlin ............................... 005361 .003693 +.001668
Vienna ............................. 000402 .000359 +.000043
P e rcen tag e
change
R E T A IL TRA D E
+ 4.9%
+11.1 “
+ 1 0 .4 “
+ 1 3 .8 “
+ 6.7“
+ 7.9“
+ 3.8“
+ 1.6“
— 1.1 “
+ 3.5“
+ 8.4“
+ 45.2“
+ 1 2 .0 “
C o m p a r is o n
Firms in Philadelphia ( 14) . . .
Firms outside Philadelphia(35)
All reporting firms (4 9 )..........
N e t S ales
Ju ly 1 to
N ovem ber 30, 1921,
w ith
Ju ly 1 to
N ovem ber 30, 1920
—10.5%
— 4.6“
— 8.9 “
—8.9%
—8.8“
—8.9 “
C o m p a r is o n
of
S tocks
N ovem ber 30, 1921, N ovem ber 30, 1921,
w ith
w ith
N ovem ber 30, 1920 O ctober 31, 1921
Firms in Philadelphia............
Firms outside Philadelphia...
All reporting firms.................
RETAIL TRADE
—9.7%
—5.4“
—8.7“
+ .1%
+ 1 .8 “
+ .5 “
P ercen ta g e
The unusually warm weather during the latter part
of November was partly responsible for a decrease
in retail trade which, according to reports from Phila
delphia firms, was larger than any recorded in re
cent months, and the continuance of the same weather
conditions during early December caused the holiday
trade to get a later start than usual. However, dur
ing the past two weeks business has increased satis
factorily, and our advance information indicates that
the December volume of sales will be approximately
up to that of last year.
Heather hosiery and silk hosiery will probably
prove to be the “ best sellers” of this season, the de
mand for these having been very heavy. There is
an increased call for articles that are useful, both in
personal apparel and in household goods. H ow
ever, jewelry is selling surprisingly well. In all de
partments it is noted that the highest priced articles,
such as were demanded two years ago, are neglected,
of
N ovem ber, 1921,
w ith
N ovem ber, 1920
of
A verage S to ck s
Ju ly 1 to N ovem ber 30, 1921, to
average sales Ju ly 1 to
N ovem ber 30, 1921
Firms in Philadelphia.....................
Firms outside Philadelphia............
All reporting firms...........................
P e r c en ta g e
360.3%
502.9“
395.5“
of
O rders O u t s t a n d in g
N ovem ber 30, 1921, to total
purchases in 1920
Firm s in Philadelphia......................
Firms outside Philadelphia............
All reporting firms...........................
7.4%
4.8“
6.8“
IRON AND STEEL
The iron and steel industry in this district has suf
fered a most decided reaction during the past thirty
days from the improvement which occurred during
the early fall. Indeed, many reports indicate that
the present stagnation in the trade is even more pro
nounced than that which existed during August.
One reporting firm states that “ Conditions now pre
vailing are even worse than they have been at any
8
time since the beginning of the present depression.”
Demand for pig iron is especially poor, and local
sales of this product have shrunk to almost negligi
ble proportions. Uncertainty as to future freight
rates and the desire of merchants to carry only mini
mum stocks during the inventory period are largely
responsible for the present dullness in the market for
pig iron as well as in the market for finished prod
ucts. In fact there is already evidence that the new
year will bring at least a moderate revival in busi
ness, as many inquiries have been received for deliv
ery during the first quarter of 1922. And, in the
case of pig iron, a few actual orders have been placed.
Demand for finished products, especially castings,
pipe and sheets, is somewhat more encouraging than
that for pig iron, but in all cases present orders are
for immediate delivery to fill imperative needs. Rail
roads are buying small quantities of material for car
repair work, and oil interests are still buying tank
plates for storage of their excess production. A ny
thing in the nature of large additions to stocks or
additions to plant equipment, however, is being with
held until after the first of the year.
Consumers’ stocks, as a rule, are at a minimum,
and it is quite probable that a considerable replenish
ment demand will develop during the early part of
1922. Producers’ stocks of finished material are
also, in general, quite low, and are decreasing in
size, although some plants are manufacturing for
stock in anticipation of expected future demand.
Manufacturers’ supplies of raw materials are also
decreasing, for very few new purchases are being
made in spite of further price reductions. Con
sumers of pig iron, have been offered No. 2 plain pig
for spot delivery at as low as $19 f*
t> furnace,
.
and at from $20.50 to $21.00 on the same grade
for delivery in the first quarter of I 9 22> prices
which compare very favorably with the lowest quo
tations recorded during the summer. One manu
facturer reports purchase of distress furnace coke at
as low as $2.65, in spite of the ruling contract price
of $3.00. Iron ore, of course, is unchanged in price,
although lower quotations are expected next year.
Finished products are also weakening in price in
face of the declining demand. Neither the larger
producers nor the small are adhering to the formally
9
announced quotations on standard products. F org
ing billets, for example, have declined from $35 per
ton to $32 since the early part of November, and
wire rods have, more recently, fallen from $40 to
$38 per ton. Plain wire and barbed wire are also
somewhat lower than they were in November. Old
material, notably car wheels and steel scrap, have
dropped from 50 cents to $1.50 per ton during the
past month.
Present operations in this district still exhibit
great unevenness. Whereas some plants have been
entirely closed down for several months, others are
operating at from 80 to 90 per cent of capacity,
although such activity is rare. In general, firms in
this district are averaging from 20 to 40 per cent of
capacity. Employment has shown little change dur
ing the past month, but a few further wage reduc
tions have been made. One large Philadelphia foun
dry reduced founders’ wages about 15 per cent in
the early part of December. Common labor in
some cases is receiving as low as 20 cents per hour,
and the average for this class of labor is not more
than 25 cents per hour. It is evident that with
lower operating costs, cheaper raw materials, and
the widespread liquidation of stocks which has oc
curred during the past few months, manufacturers
in this district will be able to meet the reviving de
mand on a much more profitable basis than would
have been possible at any time during the past year.
Production reports for November indicate that the
recent reaction has been more severe in the Third
Federal Reserve district than in the country as a
whole, and, especially than in the Pittsburgh district.
The output of pig iron in November showed a sur
prisingly large increase over that of the previous
month. Total production for the month amounted
to 1,415,481 gross tons, or 47,183 tons a day, as
compared with 1,246,676 tons, or 40,215 tons per
day, in October. This is the fourth consecutive
monthly increase and is the largest tonnage reported
since March of the present year. No furnaces were
blown out or banked during the month, and the total
number of active furnaces increased from 96 on No
vember 1 to 120 on December 1. Though this is
encouraging, the rate maintained was evidently
greater than the current rate of consumption, as the
production of steel ingots, although larger, did not
increase proportionately. According to the report
of the American Iron and Steel Institute, production
of ingots by 30 companies making 84.2 per cent of
all the country’s total, was 1,660,001 tons, as com
pared with 1,616,810 tons in October. Hence, pig
iron is probably accumulating somewhat, in antici
pation of further increases in consumption next
year. Although orders received by the Steel Cor
poration during November were in fairly large vol
ume, shipments were quite heavy, and the total of
unfilled orders reported on November 30 amounted
to only 4,250,542, as compared with 4,286,829 tons
on October 31,— a net decrease of 36,287 tons during
the month. This is but further evidence that the
present rate of production of the basic steel products,
in the country as a whole, is, perhaps, slightly in ex
cess of the current rate of consumption. Whether
operations will be curtailed to meet actual demands
depends, of course, upon the extent of the purchas
ing expected next year.
BUILDING MATERIALS
In spite of the near approach of winter the esti
mated cost of construction for which permits were
issued in Philadelphia during November showed a
surprising increase over the estimates of the preced
ing month, and a most marked gain over those of
November, 1920. Permits were issued for 1198
operations at an estimated cost of $5,796,695, as
against permits for 1529 operations, at a cost of
$5,533,225, during October, and permits for only
847 operations, at a cost of $2,303,445, during No
vember, 19:20. In the district as a whole, the esti
mated cost of construction for which permits were
issued shows only a slight decline, although the num
ber of operations contemplated is very much smaller.
This decided increase in the average estimated cost
for each operation indicates that a larger number of
high-priced building projects are being contem
plated. Although this showing is an exceptionally
good one for November, it represents, to a large ex
tent, not actual construction but contemplated con
struction. A large number of contracts have been
placed tentatively, but commencement of work has
been delayed until spring owing to present uncer
tainty as to the wages of building workers and as to
prices of materials. In fact, actual building activity
has declined somewhat during December, and a fur
ther decline is expected during the coming winter
months.
The major portion of present building in Philadel
phia and other cities of this district continues to con
sist in the construction of dwellings and garages and
in the making of repairs, alterations and additionsThe larger contracts in nearly all instances are being
delayed until early spring, when it is expected that
costs will be definitely known. Such a standardiza
tion of building costs, at a level satisfactory to in
vestors, must be achieved before there can be any
great increase in the volume of construction during
the coming spring.
In the country as a whole a similar situation
exists. A large volume of contracts have been
placed and permits have been issued, but construction
is being delayed. Although a building boom is pre
dicted by many contractors and building material
manufacturers, it is undoubtedly true that unless
building costs are low enough in relation to rents
to allow a satisfactory return on investment build
ing, little actual construction will be commenced.
L umber
In accord with the better feeling evident in build
ing circles and with the increased activity during the
early fall months, the lumber industry experienced
a healthy revival at that tim e; but with the termina
tion of the usual building season, demand has fallen
off. The decline has been made greater by the un
certainty that exists as regards prospective building
and as to future freight rates, and also by stock
taking, which is done in most yards at the end of the
year. According to statistics compiled by the N a
tional Lumber Manufacturers Association, the vol
ume of lumber cut by members of all associations
was slightly less during November than during Octo
ber, but shipments fell off about io per cent, and
orders nearly 20 per cent. Shipments, however, still
exceed production, as they have for many months;
consequently stocks have been depleted. In Decem
ber orders were below shipments for the first time
since July, which obviously points to a further de
cline in the latter. The decrease in orders, shown by
these statistics, substantiates the above statement
that customers are curtailing purchases in order to
prevent stocks from accumulating.
Under the impetus of the improved demand, lum
ber prices rose considerably during the autumn. Re
cently, however, certain grades of construction lum
ber have fallen in price, particularly the better qual
ity Southern pines. For example, a standard speci
fication of roofers, which went up to $30 a thousand
during the recent increase, is now quoted at as low
as $26, which corresponds to the quotations dur
ing the depression of last summer. Hardwoods
and other lumber, however, have been firm, and some
grades have in fact tended to rise.
Collections are not so favorable, and are reported
by the various firms as being either slow or fair.
Paint
The paint industry is now in the midst of its usual
period of winter inactivity, and demand is conse
quently light. Some firms called salesmen from the
road during the month, partly for the purpose of
planning next year’s policy, but partly because few
orders can be booked at this time. Dealers are re
ducing stocks in anticipation of inventory-taking at
the end of the year. Purchasing therefore is only
for immediate requirements, but some orders for
spring delivery are expected after the first of the
year. No one feels the need of ordering for the
future, as prices are not expected to rise and manu
facturers are now able to fill all orders promptly.
Operations are being continued upon the same
basis as heretofore, and stocks are being accumulated
in preparation for spring business. This is the cus
tomary policy of the industry, as ordinary produc
tion is not sufficient to meet the demand which comes
every year at the opening of the painting season.
This procedure also provides regular employment for
workers and makes for a better feeling between em
ployers and employees.
One New Y ork manufacturer recently reduced
quotations on certain grades of paint approximately
10 per cent, but other firms have not followed this
lead, and therefore prices in general are steady.
White lead has been guaranteed until February at
12^4 cents a pound in oil, and 7% cents dry. P ig
lead has recently increased slightly but is still con
sidered to be cheap, • and some manufacturers are
purchasing rather extensively. Linseed oil has
fluctuated less than usual during the month, and the
domestic product continues to be quoted at 67 cents
a gallon. Foreign competition is keeping it down to
that figure. Turpentine has recently risen in price.
W ages have not been changed.
Collections are only fair.
B ricks
A few manufacturers of building bricks report a
slight increase in demand, but the change in the in
dustry as a whole has been so small as to be negligi
ble. Business is still well below normal even for
this period of the year, in spite of reports regarding
activity in building construction. Production in
most cases just about equals sales, and in general
averages less than 60 per cent of the possible output.
In other instances stocks are already beginning to
accumulate, and unless manufacturers cut down
operations in accordance with demand, this situation
11
will no doubt soon exist in all yards. One manufac
turer has stated that it will be his policy to reduce
output, as stocks are already large enough and he
does not desire to increase them.
Prices have not changed in Philadelphia, although
a slight downward trend is reported from other
cities in the district. Raw materials are firm, and
wages, which are the chief item of cost, have not been
reduced since early in the year. Collections are
from slow to fair.
The situation among manufacturers of fire bricks
is described as being the worst in twenty years.
There is practically no demand at all, and plants
either are entirely closed down or are operating at
less than 25 per cent of capacity, whereas under nor
mal conditions they would be running full at this
time of the year. Efforts are being made to keep
stocks down to a minimum. Prices are gradually
falling.
G lass
Local glass dealers report that business has held
up well since sales began to increase in October.
A s glass is one of the last materials used in the
construction of a building, it would naturally be in
demand later than most other materials. Some evi
dences of the beginning of winter inactivity are now
becoming noticeable, but this was to be expected, and
it has not prevented dealers from being generally
optimistic over prospects. In addition to the better
demand from builders, purchases by railroads and
furniture manufacturers are said to be increasing
slightly. Few orders are being received for future
delivery, but in view of the large volume of build
ing permits issued, many requests for bids on large
contracts are expected after the first of the year.
Prices of plate glass have been reduced about 25
per cent within the past month, which brings cur
rent quotations down to approximately one-third of
the 1920 maximum. The price of window glass has
not changed further. Prices on wire glass, which has
also been selling well recently, are firm. Stocks of
practically all grades are low, and operations, though
greater than they were last summer, are much below
normal.
Collections are satisfactory.
W holesale H ardware
Although the local hardware trade, both retail
and wholesale, has been stimulated somewhat by
holiday buying and by purchases of seasonable goods,
the present volume of transactions is far from satis
factory. Retailers are unwilling to increase their
stocks before the first of the year, and they are
purchasing only those goods for which there is an
immediate and active demand from consumers.
Prices are unsettled, although the general trend is
still downward, especially on iron and steel products.
Indeed, the possibility of further reductions on Janu
ary 1 is another deterrent to purchasing by retail
dealers at the present time.
The accompanying table shows that sales for No
vember were considerably less than those of the
previous month, and less than those of November,
1920. This decline has continued during the past
month and is a normal seasonal development. A l
lowing for the decrease in values, the physical volume
of current business is probably just as great as it
was in 1920. However, dealers state that profits
have .shrunk considerably, owing to the severity of
present competition.
Collections, generally, are reported as being satis
factory.
W H O LESA LE H A RD W A RE TRADE
N um ber o f re p o rtin g firm s— 25
N ovem ber, 1921, N ovem ber, 1921,
com pared w ith
com pared w ith
O ctober, 1921 N ovem ber, 1920
Net sales during November..........
—11.1%
—24.1%
Accounts outstanding November 30 — 2. 9“
—28.6“
Ratio of accounts outstanding to sales:
November, 1921................................................. 180.2%
October,
“ ..................................................164.7 “
September, “ ...................................................179.8“
August,
“ ...................................................181.0“
July,
“
189.4“
June,
“
167.5“
COAL
A nthracite
Domestic demand for anthracite coal has been
almost as disappointing during the past two months
as has industrial demand for steam coals. Through
most of this period, purchasing was checked by the
continued warm weather, and though the cold snap
occurring before Christmas acted as a considerable
stimulus to the retail market, consumers refused to
purchase more than sufficient for their immediate
requirements. Prices are being firmly maintained
in most cases, but there have been several instances
in Philadelphia lately of slight reductions. Dealers’
stocks are very heavy in the majority of grades, and
even the most popular sizes, stove and nut, are ac
cumulating. Steam sizes are still a drug on the
market, although buckwheat is in rather better de
mand because various smaii dyeing and textile plants
have expanded operations.
In spite of sluggish consumption, mines have con
tinued to operate on practically full time, although
the total output has been somewhat reduced because
of holiday shut-downs. For the week ending De
cember io it was 1,703,000 tons, as compared with
1,845,000 tons in the preceding week, and 1,910,000
tons in the week ending November 19. The ship
ments of anthracite by the nine principal carriers,
during November, amounted to only 5,314,014 tons,
as compared with 5,872,783 tons during the pre
ceding month.
A large part of the present production is being
stored by the operators, and their storage capacity
is now so limited that many of them contemplate a
shut-down of several days over Christmas and New
Y ear’s Day. In fact, many of the independents have
already closed their mines, and, in frequent instances,
have liberally shaded company prices on steam sizes,
and greatly reduced their premiums on domestic
sizes.
Collections are considered satisfactory, and in
most cases have improved since the summer months.
B ituminous
A survey of conditions in the bituminous industry
shows a most discouraging reaction, during the past
two months, from the activity manifested in Septem
ber and October. The rapid expansion in demand,
which pushed production from a daily average of
less than 1,200,000 tons in July, up to a daily total
of more than 1,800,000 tons in the latter part of
October, has been followed by an even more rapid
decline; and the daily average production for the
week ending December 10 was only 1,206,000 tons,
which is 35 per cent less than the peak, and nearly as
small as the low total recorded during the summer.
The recent report of the Geological Survey, show
ing consumers’ bituminous stocks as of November 1,
proves conclusively that a large proportion of the
increased production of September and October went
into storage piles. Production of bituminous coal
reached a peak of 43,733,000 tons, in October, as
compared with 34>538,ooo, in August, and 35,127,000, in September. Thus, an excess tonnage of
9>784-000 was mined during September and October
over that which would have been produced had the
August rate continued during these months. But of
this amount approximately 6,300,000, or nearly 65
per cent, went into the storage piles of consumers—
a reflection of the fear of a railroad strike rather than
of increased industrial demand. The total stocks
held by all consumers, on November 1, were 47,000,000 tons, an amount sufficient for 43 days’ re
quirements at the average rate of consumption main
tained during the three months ending November 1.
Hence, it is evident that practically all sections of
the country, especially N ew England and the North
west, are well fortified against the possibility of a
shortage during the coming winter.
The effect of this accumulation of reserves is seen
not only in steadily declining production and waning
demand during the past month, but also in a marked
shrinkage in prices. The Coal A g e index was only
84, on December 8, as compared with 86 the week
previous, and with 100 on July 1. Most of this de
cline is the result of further reduction in the product
of union mines. Competition of non-union coal and,
more recently, of British coal, brought over as ballast
and offered at seaports at prices less than domestic
quotations, has forced union operators either to sell
their product at a sacrifice or to close down their
mines. Indeed, many operators have chosen the lat
ter course, and others have curtailed working time
and discharged many of their forces. It is not sur
prising, in view of these conditions, that little opti
mism is evident in the trade. Increasing industrial
activity is not to be expected during the winter
months, and heavy stocks are a sufficient protection
to consumers, even if mine activity should cease.
Collections are reported as improving, even the
railroads making prompter settlements than hitherto.
Coke
The lessened activity of iron and steel manu
facturers during December has been reflected in re
duced purchasing of coke and in a weakening of
quotations. In fact, the market has experienced little
activity since the strike flurry in October, when con
sumers accumulated stocks of both coal and coke.
A t present, there is little or no future business, al
though contracts for spring delivery are usually
placed during December. H igh freight rates and the
possibility of freight rates being readjusted are
probably preventing consumers from entering the
market at this time.
Production of coke, however, is being well main
tained, at least as compared with the output during
the summer. For the past two months, the weekly
output has been at a rate of over 100,000 tons,
whereas the low record of the year was less than
35,000 tons. Cumulative production of beehive,
however, is only slightly more than 5,000,000 tons—
13
approximately one-fourth that of the same period
of 1920. By-product ovens are also somewhat more
active than they were during the summer, but the
present activity in this branch is at a rate not more
than 50 per cent of capacity.
Indications of over-production are seen in the
weakness of spot prices. Furnace coke has been sold
at as low as $3 lately, as compared with $3.15 and
$3.25 last month, while foundry coke is now quoted
at from $4 to $4.50 per ton.
PETROLEUM
In spite of the existence of heavy stocks of crude
petroleum and the continuance of a high rate of pro
duction, the price of all grades is being maintained
at a level well above the low point reached in October.
Although this advance from the low quotations of
the year has been uneven, practically all grades have
risen from 50 to 100 per cent in the last three months.
Pennsylvania crude is now quoted at $4.00 per bar
rel, as compared with $2.25 in September and $6.10
in January, 1921. The present price of Oklahoma
crude is $2.00, which is double what it was in Septem
ber; and yet, the present storage of crude oil is esti
mated at over 170,000,000 barrels, and the daily
rilLLKi
X
BRES
ARL
45
40
35
30
25 l
20
15
10
5
0 hn
P
e t r o
l e u
m
production and Prices
Dllar
o s
Brrel
a
PER
OF
9
!__1___________ 5
National), #
\ J P ro duct 106
7
- —
6
\ P r ice of P e n n a .
\ C rude a t V/ells
5
...............
4
/
\ A
3
r
\
2
1
0
Jan
July
/
----- .
Juy
l
1920
COTTON
C otton Goods
During August and September when prices on
cotton goods were advancing rapidly, buyers pur
chased heavily in anticipation of future needs. Re
cently, however, demand has fallen off to such an
extent that dealers are encountering great difficulty
in disposing of these stocks. Some of this decline
1921
Sources -D un's l Gtoa S urvey or u s
average gross production, as estimated by the Am eri
can Petroleum Institute, was 1,327,880 barrels for
the week ending November 26, as compared with
1,156,600 barrels for the week ending October 1.
Imports from Mexico have also increased, and there
is little evidence of any decline in the available supply
in the near future.
Refinery demand for crude oil has, however, slack
ened considerably as a result of a decided falling off,
during the past month, in the consumption of nearly
all of the refined products. Prices of refined prod
ucts, which advanced along with the advance in crude
oil, have perceptibly weakened of late. Declining
consumption of motor oils and gasoline is, of course,
to be expected during the winter months, and stocks
of these are again accumulating in the hands of
dealers. Gasoline is now quoted at from 12 to 14
cents in tank cars at the refinery, but the service
station price to the consumer is still 29 cents— 5 or
6 cents above the low quotation of late summer.
Further decrease in industrial activity has been re
flected in a lessened demand for gas oil, fuel oil and
lubricating oils, and prices of these products have
also been lowered. There is little demand for wax
or for steam cylinder oils, and these products are like
wise being stored in large quantities. Kerosene is
somewhat more active than the other refined oils,
but the improvement is purely seasonal.
Small
quantities are being shipped into the agricultural
districts, and export inquiries have also increased,
although but few actual orders have been received
from this source.
Refinery operations have, as a rule, been well main
tained in spite of the necessity of storing large quanti
ties of most products; but it is doubtful if the present
rate of production can be continued. Many refiners
feel that the price of crude oil is too high in view
of the weakening prices for refined products, and
hence they hesitate to continue operations on the
present scale.
Collections are reported as being good in this
district, but they are slow in the middle West.
14
R a w C otton
may be attributed to the approach of the inventory
season, but a large part of it is undoubtedly because
the cotton crop has proved to be much larger than
was estimated. Manufacturers, however, expect a
revival of business after the first of the year, when
spring and surnmer stocks are usually purchased.
Reports of operations vary widely. Manufacturers
of some lines of branded goods and gray goods are
able to maintain production at about the usual rate.
But in no instance do any firms report a sufficient
number of orders to insure operations for more than
three months. Stocks are kept at a minimum, and
at this time of the year, especially this year, the de
sirability of having a small inventory is not over
looked. The fact that the stocks of practically all
firms are small should stimulate business early next
year. Prices of cotton goods are stationary, no
change being reported in the past month. Statistics
compiled from 16 reporting firms show that on June
i, the number of employees was 6084; on Septem
ber 1, 6436, and on December 1, 6936. O f this last
number 6787 were working full time on December 1;
143 on half time or somewhat better, and only 6 on
less than half time.
•
Collections are generally good, but a number of
firms report them to be slow.
The outstanding feature of the ray cotton situa
tion at present is the new government cotton report,
forecasting a total crop of 8,340,000 bales. This is
in marked contrast with the previous forecast of
6,537,000 bales. Before this report was released
there was much uncertainty in the raw cotton market,
owing to the falling off in demand and the lowering
of prices on some lines of cotton goods. A t present,
the demand for raw cotton is not increasing, spin
ners showing no inclination to buy raw materials in
sizeable quantities. It is thought, however, that
those manufacturers who lack a sufficient stock to
meet their requirements for the spring and summer
trade, will resume buying after the first of the year.
Stocks are generally low, and now that the estimated
supply is approximately 1,800,000 bales greater than
was supposed, it is unlikely that stocks will be heavy
for some time.
Immediately after the crop report was issued, the
price of cotton dropped from 75 to 112 points per
pound, and cotton which sold at as high as 18.12
cents before the report, sold for as little as 16.95
cents. H eavy selling was in evidence in some mar
kets. The tendency now is for prices to remain firm.
But some dealers expect them to rise after the first
of the year. Collections are reported as being slow
and show no improvement since last month.
The pink boll worm is a very disturbing factor in
determining the supply of cotton next year. In some
parts of the south, particularly Texas, Oklahoma and
Louisiana, the situation is so acute that the elimina
tion of the pest is essential to future production; and
since the only sure means of ridding the country af
fected is to plant no cotton for a period of two years,
the output of cotton in those sections next year may
be greatly reduced. The devastation wrought by the
boll weevil this year was the greatest in history. The
mild winter last year is said to be the cause of ex
isting conditions, as the weevils survived in unpre
cedented numbers, and long before any effort could
be made to stop them, they were spread over all the
old and over much of the new territory. It is esti
mated that more than half of the loss of cotton was
caused by the weevil.
COTTOM P r ODUCTIOH
Un i t e d
S t a t e s
JIlLUQIt
or
OF
[B
ales
16
14
'
12 ■
Bales
1
16
I
14
n
10 n
12
r
m
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10
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1 1
a
6
1
6
4
1
4
2
1
2
0
1 0
1910 1911 19121913 1914 1915 19)6191719161919 19201921
SILK
Conditions in the silk industry are unsettled. The
almost unprecedented rise of raw silk prices during
the past two months has continued, and they are now
S o u r c e - D cP A g T M E rrr o r A fiB ir.u i t u p f .
15
Although orders for silk hosiery show a slight
decrease, there is enough business in sight for spring
to keep busy the mills making it. The advance of
more than $1 per pound in silk parn, if maintained,
is expected to be reflected in higher prices for stock
ings. Manufacturers of infants’ and children’s wear
are busy and have orders that will carry them well
into the spring. New orders, however, are coming
in slowly, as prices made in early autumn cannot be
duplicated because of the higher cost of cotton yarn
at this time. Those who did not place orders early
enough to secure the lower prices are holding off until
the last moment, hoping that conditions may change
and that they can obtain goods at the figures pre
vailing at the opening of the season. Other lines of
cotton and mercerized hosiery show little improve
ment, and very few mills producing these are able to
run on full time. Some of the southern mills, how
ever, are exceptions.
at the highest point of the year. This increase has
caused a falling off in demand, and buying is chiefly
from hand-to-mouth. Manufacturers of broad silks
especially have shown a disinclination to replenish
their stock of raw material. A ll buyers, however,
are following closely the trend of the market, and
most of them are of the opinion that the rise has been
entirely too rapid to be healthy. Some attribute it
to speculation.
Broad and fancy ribbons are more active than they
have been recently, but the narrower ribbons are
still the most popular. The demand for broad silks,
has improved slightly and manufacturers have raised
their prices somewhat because of the advances made
in raw silk. Spring business is developing steadily.
Taffetas, crepe de chine, canton and messalines, are
some of the most popular fabrics for spring, and
bright blues, purples, lavenders and oranges are the
predominating colors.
Stocks of silk goods are
pretty well depleted, and this, in a measure, accounts
for the activity in all lines. Manufacturers are oper
ating at about 80 per cent of normal, and practically
all orders are for immediate delivery.
Silk yarns, on the other hand, are not doing so
well. Practically all present orders are for immedi
ate delivery, the volume of future orders being only
sufficient to insure operations for about six weeks.
The average rate of production in the plants report
ing to us is 63 per cent of normal. This falling off
in demand and curtailing of operations is directly
attributable to uncertainty in the raw silk market.
Collections in the entire industry are only fair,
there being no improvement noted during the past
month.
O PE R A T IO N S IN T H E H O SIERY IND U STRY
(In term s of dozens o f p a irs)
N um ber o f re p o rtin g firms— 30
F inns selling to the wholesale trade:
Product manufactured during
November ...............................
— 3.5%
Finished product on hand No
vember 30 ...............................
+ 5.1 “
Orders booked during Novem
ber ......................................
—59.4“
Cancellations received during
November ...............................
+54.5 “
Shipments during N ovem ber..
—10.0“
Unfilled orders on hand No
vember 30 ...............................
— 2.2 “
Firms selling to the retail trade:
Product manufactured during
November ...............................
Finished product on hand No
vember 30 ...............................
Orders booked during Novem
ber ...........................................
Cancellations received during
November ...............................
Shipments during Novem ber..
Unfilled orders on hand No
vember 3 0 ................................
HOSIERY
Heather hosiery of all descriptions has been one
of the best selling articles, if not the very best, in the
retail stores, although silk hosiery was not far behind
it in the demand of holiday buyers. Stocks of both
in retail stores are consumed rapidly, and rush orders
are being received by jobbers and mills. A s cold
weather is beginning the natural demand is for
heather hosiery, and mills that produce this are run
ning at capacity. One manufacturer reports that fine
yarn made from imported wool is becoming scarce
and that his production of heathers has been limited
by his inability to secure supplies. A s orders con
tinue to be received for the fall trade of 1922, it is
clear that their popularity is well established. This
fact is attracting new mills into this field, and the
output for next year is expected to be larger.
N ovem ber, 1921, N ovem ber, 1921,
com pared w ith
com pared w ith
O ctober, 1921
N ovem ber, 1920
— 17.3%
+ 222.1%
—
12. 6 “
+ 63.6“
+ 190.5“
+528.2 “
+ 297.5%
+ 14.2 “
— 40.0 “
+421.3 “
— 13.6“
— 19.2 “
UNDERWEAR
Colder weather has brought an increased demand
for heavy-weight underwear,— which bears out the
statements that have ben made from time to time
that retailers’ stocks were small, and that the first
cold spell would necessitate the placing of orders
with wholesalers and mills. Although the general
opening for heavy weights for the fall of 1922 will
not take place until after the New Year, and although
a number of manufacturers have not named prices,,
16
there are reports that considerable business has been
transacted. The break in cotton yarns, after the
Government increased its estimate of the cotton crop
by 1,800,000 bales, has temporarily unsettled the
market, and it may be that little further business will
be done until the general opening.
Comparatively few orders are coming in for light
weight underwear. Those who did not buy at the
opening before the autumn advance, are holding
back, hoping that by waiting they may be able to
obtain their stock at the prices that prevailed before
the rise. The recent decline in cotton and yarns has
confirmed them in their position.
CO N D ITIO NS IN T H E U N D ER W EA R IND U STRY
( I n term s o f dozens)
N um ber of re p o rtin g firm s— 14
N ovem ber, 1921, N ovem ber, 1921,
com pared w ith
com pared w ith
O ctober, 1921
N ovem ber, 1920
Sum m er underwear:
Product manufactured during
November ...............................
— 7.6%
Finished product on hand No
vember 30.................................
+ 35.2“
Orders booked during Novem
ber ..........................................
— 62.1 “
Cancellations received during
November .....................................................
Shipments during N ovm ber...
— 18.2“
Unfilled orders on hand No
vember 30.................................
— 9.0“
+ 355.6%
+ 114.8 “
+ 224.3 “
+ 242.i “ *
moderate priced fabrics for their 1922 schedules, and
this in turn has led to the utilization of coarser wools.
Furthermore, the labor disturbance in the clothing
industry has retarded the woolen and worsted in
dustry considerably. Thus far there has been very
little call for woolen and worsted goods for the
spring of 1922, and the number of current orders
for immediate delivery is small. No change is ex
pected until after the holidays, and even then it may
be somewhat delayed. Several mills are now oper
ating at only 25 per cent of normal and have only
enough orders to keep them running three or four
weeks. The average rate of operations of twelve
plants in this district is 45 per cent.
Stocks in most plants are now accumulating, al
though two firms report a decrease. One manu
facturer is carrying the largest stock in the history
of his business, and is filling 35 per cent of his orders
from stock. On the other hand, another firm, which
is operating at 75 per cent of normal, has no stock
on hand and has a sufficient number of orders to
continue operations at that rate for at least six weeks.
Prices of finished goods have changed little, if any,
during the past month. Collections are slow, ex
tensions being frequently asked for and granted.
N um ber o f rep o rtin g firm s— 9
W inter underwear:
Product manufactured during
November ...............................
Finished product on hand No
vember 30.................................
Orders booked during Novem
ber ............................................
— 5.6%
+ 307.0 %
— 6.2“
—
.5“
Cancellations received during
November ...............................
Shipments during N ovem ber..
Unfilled orders on hand No
vember 30.................................
-{-129.3 “
— 16.7“
+ 412.5 “
+ 260.6 “
_ 4 7.3“
WOOL
W oolen and W orsted G oods
Trading in woolen and worsted goods is in general
still very inactive. A few orders are being placed
or dress goods for the current season by buyers who
ia not purchased enough to meet the present de
mand, but these are simply filling-in orders and are
not numerous. Most clothing manufacturers have
covered their requirements adequately.
The market for piece goods, especially in men’s
wear, continues to be very uncertain, and this is
attributed largely to the unsettled condition of the
clothing industry. The demand of consumers for
moderate priced clothing has had a pronounced effect
upon the wool trade in general. Clothing manu
facturers in attempting to meet it are calling for
17
W oolen and W orsted Y arns
The demand for yarns has not improved, and a
few firms even report a decline in the number of in
quiries for their product. For weaving yarns of all
grades the demand is very poor; indeed, some manu
facturers say that it has never been worse in the past
twenty-five years. Knitting yarns, on the other hand,
are in a much stronger position, the chief trade in
these being confined to manufacturers of bathing
suits, sweaters, etc. Hand knitting yarns are not as
active as they were during the early fall.
Notwithstanding the rather mixed state of de
mand, a number of the larger mills report that they
are operating at capacity, and that their present
operations compare favorably with the rate of pro
duction at the same time in normal years.
The prices of most yarns advanced during the
month. Collections are reported as being from fair
to good, some firms noting an improvement in the
past month.
R aw W
ool
The tone of the Philadelphia wool market is very
favorable, and the market is in a healthy condition.
During the war the consumption of wool was con
fined chiefly to the better wools of all grades, and, of
course, the preference is still naturally for the better
wools. But the increasing scarcity of these has
helped the sale of the poorer wools. This is exempli
fied in the increased demand for
blood wools on
account of the shortage in
blood wools. Carpet
wools are in good demand, as the carpet industry is
once more active. In fact, one firm reports that it
cannot manufacture carpets rapidly enough to supply
its customers promptly. Low grade wools are being
sold readily and in sizeable quantities.
The stocks of wool in sight, excluding manu
facturers’ stocks, have decreased considerably in the
past year. Consigned wools and the 1921 clip have
been well taken up, and there is no large supply of
good wool in any grade unsold. The scarcity in
some grades is apparent.
In keeping with the present practice, the Govern
ment will hold the next wool auction in Ford Hall,
Boston, on Thursday, January 5, 1922. Seven mil
lion pounds of wool will be offered for sale. A t each
of these auctions, the prices have been higher than
at the previous one, and it is expected that the rise
will continue in the coming auction. The present
Government stock is approximately 18,000,000
pounds, which is to be disposed of at stated intervals.
Prices are advancing steadily, especially on the
better wools in each grade. The lower wools are
also commanding a better price.
Collections are not as good as they might be, but
are improving.
FLOOR COVERINGS
Mills making rugs and carpets, of whatever de
scription, are busy, having booked satisfactory orders
at the opening of their spring lines. During the last
month, orders in moderate amount have been re
ceived, and these, when added to former orders,
assure operation of most factories at or near capacity
production for several months. Makers of velvet
and tapestry rugs are not quite so well placed as re
gards the amount of business booked as are the mills
making Wiltons and Axminsters.
No recent changes are reported in carpet prices,
but the price for carpet wools has advanced sharply.
According to the accompanying table of prices, sup
plied by one of the largest houses in the country,
carpets and rugs increased in value, between No
vember, 1914, and the time they reached their highest
point,— which in some cases was in October, 1919,
and in others in November, 1920,— from 250 to 330
per cent. A t present, prices are from 150 to 210 per
cent above those of 1914.
Producers of linoleum and oil cloth are enjoying
the same measure of success as the makers of other
floor coverings, and their plants are running at ca
pacity with orders that will keep them busy for
several months. Collections throughout the trade
are uniformly reported as good.
W H O LESA LE PRICES O F RUGS AND CA RPETS
November October November November
1914
1919
1921
1920
Wilton Rugs:
27" x 54" ........... ......... $4.60
$12.10
$10.50
$8.30
6' x 9' ............. ......... 27.45
72.45
49.30
62.65
9' x 12' ............. ......... 45.50
117.00
79.50
101.00
Axminster R u g s:
27" x 54" ........... .........
1.75
3.70
4.85
5.00
19.80
6' x 9' ............. ......... 10.50
26.10
26.95
9' x 12' ....................... 18.00
33.50
46.25
45.00
Velvet R u g s:
2.60
27" x 54" ........... ......... Not made
3.55
3.55
“
“
6' x 9' ............. ___
19.50 Not made 14.25
“
“
27.00
9' x 12' .............
37.75
37.75
Tapestry Rugs:
27" x 54 ............ .. Not made Not made Not made Not made
9.60
6' x 9' ............. . . .
15.80
14.80
6.25
17.50
9' x 12' ............. . .. 11.25
30.00
28.25
Wilton Carpet Y yd.
2.45
6.45
6.70
4.80
Axminster Carpet
Y yd.........................
1.40
3.55
4.05
2.90
Velvet Carpet Y\ yd..
.95
2.80
3.15
1.95
Tapestry Carpet
.65
18
LEATHER
Prices of heavy leather are firm and in some cases
higher than they were last month. Tanners state
that it is impossible to pay the price asked for hides
and to sell the resulting leather profitably at present
market figures. The demand is not so great as it
was during the autumn, but it is by no means poor
for this season of the year, a time when many buyers
reduce their purchases to a minimum on account of
taking inventory. The almost universal call for a
cheap shoe has resulted in increased inquiries for
cheaper grades of sole and other heavy leather. Belt
ing leather shows very little change. A few orders
have been received from railroad sources, and this is
an encouraging feature, but as a whole the same dull
ness prevails as has existed all year. Export demand
for heavy leather has increased somewhat, largely by
reason of the improvement in foreign exchange.
Am ong the upper leathers, side leather is selling
freely, owing to its suitability for a shoe of low cost,
and some of the accumulated stock has been disposed
of. Calf leather in No. i grade (the best) is sell
ing slowly, and concessions in price are being m ade;
but No. 2 and No. 3 grades are meeting with rela
tively better demand, and prices are steadier than
they are for the top grade. Glazed kid, although
not selling in as large a volume as in October and
early November, is still active. The same condi
tions are present in this line as in calf leather; i. e.,
high grades which previously had been oversold are
now of slower sale, and with some tanners top grades
are beginning to accumulate. In the medium and
lower grades there is a good demand, and prices are
well maintained. Export orders are increasing. A
large proportion of the so-called “ distress” leather,
held for account of banks or for insolvent tanners,
has been sold for shipment abroad. Great Britain
has been the largest foreign buyer, but purchases
have been made also by Belgium and several other
Continental countries.
Tanners of sheepskins report that business is in
good volume but that prices are somewhat lower.
Chamois and hat leather have sold well, and skivers
19
also; but glove leather, although in a little better
demand than it has been, is still going but slowly.
those of a year a g o ; these reductions have been possible largely because of the lower prices of leather.
H ides and S kins
S hoes
The market for hides is firm, offerings are light,
and what offerings have been made have been taken
quickly. The diminution in the slaughter of ani
mals as compared with a year ago is having its effect
in maintaining prices and in stimulating the demand.
Calfskins, on the contrary, are slow of sale, stocks
are increasing, and the tendency of prices is down
ward. Goatskins, after easing off in price for sev
eral weeks, have become firmer, and tanners are re
ported again to have entered the market for a con
siderable number of skins. Large lots have been
sold of new season China and of all descriptions of
East Indias. On goods offered for shipment the
advance in exchange rates has made the cost, landed
here, substantially higher. Sheepskins are weak
and show little or no improvement, notwithstanding
the fact that stocks in some of the large markets are
decreasing.
The shoe factories in this district, taken as a whole,
are not as busy as they were during the summer
months, when they were working on orders for the
autumn, for advance orders for the spring, though
better than they were a year ago, are not large. The
factories that make cheap shoes are busier than
others and are receiving orders in increasing volume.
There are some factories making special lines that
are also well supplied with orders, but makers of
high grade shoes generally are running their plants
on part time. W ith these, winter orders are about
over, and the styles for spring have not been suffi
ciently determined to encourage the placing of many
orders for future delivery. The convention of the
retail shoe trade to be held in Chicago early in Janu
ary will, it is believed, be the pivotal point in the
trade. In connection with the convention a style
exhibition will be held, for which displays have been
planned by nearly all the leading shoe manufactur
ers. A s it will then be late for spring business, it is
felt that orders will quickly be placed for large quan
tities, since otherwise it would be impossible for
manufacturers to make deliveries within the season.
Already considerable business has been done in white
shoes for the coming year. This is because all the
shelves of jobbers and retailers were bare of this
stock at the close of last summer. But even here
there is doubt as to style. Is it to be all white, or,
as last year, white with a mixture of color? Patent
leather is also to be one of the favorites, and orders
for shoes made of this leather have been placed in
good numbers. But when it comes to colors, the
trade, from tanner to retailer, is at sea. The im
pression is that the styles this year will not be so
varied or extreme as they were last, and that though
perforations and straps will be used, perforations
will not be so elaborate and straps will be single.
The far-seeing shoe manufacturer and buyer are al
ready considering what is to be worn in the autumn
and winter of 1922. On the one hand, the orders
already placed for heather stockings for 1922 would
indicate that short skirts and low shoes will again be
the vogue. On the other hand, it is argued that the
Paris fashion of longer skirts is sure to be here in
another year, and that that will mean the return of
the high boot.
In the Philadelphia district the new wage scale,
L eather G oods
The demand for trunks, especially of the more ex
pensive kinds, has been poor. Although manufac
turers have been running their plants at less than
capacity, sales have failed to keep pace with produc
tion. A s a result, their stocks on hand are more
than sufficient to meet immediate needs, and further
curtailment of operations is anticipated. Dealers
are carrying unusually small stocks, one of the larg
est department stores in the count!*}'- having about
one-third its usual supply of the product of one of
our principal manufacturers. On this account it
had been hoped that the holiday demand would
necessitate the placing of a large number of fill-in
orders. Some orders of this description have been
received, but they have not been up to expectation.
Leather bags, in the larger sizes, have sold in very
much reduced numbers, but smaller articles such as
over-night and week-end cases have gone fairly well.
Leather specialties for the Christmas trade have been
in good request, and manufacturers of these report
that their autumn business has been satisfactory.
Now, however, orders are falling off, and those on
the books are practically all for immediate delivery.
Some of the novelties of the year include articles
made of ostrich, codfish and sharkskins, all of which
have found an active market.
Prices, as a rule, are from 25 to 30 per cent below
20
effective December i, is in the hands of an arbitra
tion committee. It is generally felt that there will
be a reduction, but the exact amount has not been
finally determined. The consensus of opinion is that
it will be about' io per cent. This would be on the
average of about io cents per pair, and manufactur
ers have in many cases reduced their prices by that
amount.
For the shoe wholesaler the year 1921 has been a
trying one. The beginning of the year found him
with unusually large stocks, composed in good part
of high shoes which the mildness of the winter made
unsalable; and to add to his discomfiture the market
was falling rapidly. This stock it was necessary to
close out when opportunity offered, very often at a
heavy shrinkage in price. The losses incurred in
the early part of the year have been made up in part
during the late months, but there are few who can
show a satisfactory profit for the year.
The supply of skilled labor in the fitting room is
inadequate, but in the other departments labor is
plentiful. Collections have improved and are now
normally good. The following table show's the con
dition of the factories in this district for the month
of Novem ber:
that November sales were about 15 per cent below
those of October. Although a few firms report bet
ter business in December, due probably to the fact
that some customers had previously under-estimated
their needs, the general opinion is that sales during
December will be no larger than they were in N o
vember.
Coarse papers are still the most active of the mar
ket, although the demand for these grades also has
fallen off. Manufacturers of towels and toilet papers
report that sales have dropped noticeably during the
past month. Bags and wrapping paper are also in
less demand since consumers have supplied their
Christmas needs, but some evidences of a recent in
crease in orders for the former have been reported.
Statistics published by the Newsprint Service Bureau
give the following information received from 44
newsprint manufacturers in the United States and
Canada:
(In T o n s)
Production .............................. 143,474
Shipments .................................. 142,393
Stocks ..........................................
40,630
CO N D ITIO NS IN T H E BOOT AND SH O E IN D U STRY
_
N u m b er o f re p o rtin g firms— 45
( I n term s o f p a irs)
p ro d u ctio n .........................................
gnipments ..........................................
Orders booked..................................
Orders on hand................................
Stocks on hand................................
Number of operatives on payroll.
N ovem ber, 1921, N ovem ber, 1921,
com pared w ith
com pared w ith
N ovem ber, 1920
O ctober, 1921
— 7.0%
—18.0“
+ 3 0 .3 “
+ 1 8 .0 “
+ .5 “
— 1.8“
+ 17.8%
+ 9 .1 “
+ 99.9 “
+105.8 “
—
12.0 “
+ 23.1 “
PAPER
Manifestations of a weakening paper market, re
puted last month, have become more numerous, and
F is now evident that the usual winter slump has be
gun. But as the decline is usual, the industry is
n°t discouraged over recent developments. The
customary fall spurt, held back to a certain extent by
uncertain business conditions, was on the other hand
made necessary by the fact that dealers and con
sumers had purposely allowed stocks to become low,
and were forced to buy to meet seasonal require
ments. When they felt that their needs had been
they curtailed orders. This curtailment began
ctween the first and fifteenth of November and
recently has been hastened by the desire to have
mventories as low as possible at the end of the year.
ms falling off in orders has occurred among both
merchants and manufacturers. The former report
S eptem ber
1921
21
O ctober
1921
N ovem ber
1921
156,844
165,365
31,990
159,855
158,406
32,044
It will be seen that whereas production in November
was 2 per cent greater than in October, shipments
were 4 per cent less. Stocks consequently increased
in November. Am ong manufacturers of book and
writing papers, orders and shipments reached a max
imum about the last of October and have been slowly
falling since.
Curtailment in operations in all branches of the
industry has lagged slightly behind the falling off in
shipments, but nevertheless some has been effected.
Production of wrapping paper is down to from 65 to
70 per cent of normal, as compared to over 80 per
cent in October. Certain manufacturers of towels
and toilet paper in this district, who ran their plants
at practically full capacity all fall, have cut opera
tions down to about 85 per cent. Production of book
and fine papers has fallen from a maximum of 75 or
80 per cent of normal to about 65 per cent. The
failure of production to contract in the same ratio
as shipments has caused manufacturers’ stocks to in
crease, but only slightly; they are still much smaller
than they were three or four months ago. Mer
chants’ stocks were replenished during the fall, as in
many cases some lines had been allowed to become
greatly depleted, but they are now by no means ex
cessive. In fact, most dealers report that they con
sider their supplies on hand to be about normal for
this season.
Prices are the subject of much discussion in the
industry, largely because of speculation as to the pos
sible result of the recent rise in sulphite pulp to 5
cents a pound. This increase of three-fourths of a
cent was first announced by a large producer of
bleached sulphite to become effective December 1,
and then other pulp manufacturers followed suit.
The importers of European unbleached grades also
raised their prices, keeping them, however, at a
relatively lower level than domestic quotations.
Paper prices have not yet been raised because of this
increase, but they are firmer than they have been for
some time, particularly on wrapping paper and on
the book and writing grades. Some unofficial re
ports were received of an increase in the price of
kraft, but it has evidently not been general. The
waste paper market has continued to be weak, and
prices have fallen slightly. Rags are also a little
cheaper. Box-board quotations were raised slightly
in the local market about the middle of December.
Important among developments of the past month
were the counter announcements of a Canadian and
of an American manufacturer regarding reductions
in newsprint prices for 1922. The Canadian com
pany first announced that its price would be $75 a
ton on newsprint rolls for the first quarter of 1922.
The Ameriacn firm, however, a few days later quoted
$70 a ton on contracts for delivery at any time dur
ing 1922, offering the customer the alternative of
contracting for six months’ supply at $70 with the
privilege of renewal for the last six months at a
price of not over $75 a ton. The Canadian company
immediately reduced its quotations to $70. This
new price represents a drop of $60 a ton from the
maximum of $130 which prevailed in the last quarter
of 1920. The last reduction has been made in face
of the fact that the market price of ground wood is
up to about $40 a ton and that the supply of this
commodity is relatively scarce because low water
at the northern mills this summer prevented ordinary
production. Lower wages and foreign competition
are given as contributing factors that made possible
and necessary the lower price, despite the high market
quotations on one of the principal raw materials.
W ith some variations, collections are generally
considered to be fair.
PRINTING AND PUBLISHING
Improvement noted in the printing and publishing
industry early in the fall continued until some time
in October, and then orders began to fall off. Since
that time business has, in general, continued to de
cline, although some small establishments report a
slight increase since November 15. Small orders
for necessary job work make up the greater part of
the present demand, and the larger industrial adver
tising still offers little business. Lithographing
firms report a decline in orders.
Operations range from 50 to 75 per cent of
capacity in various shops, and average about 60 per
cent. This is less than the average of last year, and
in some cases is less than that of last month. Other
shops report that although orders have fallen off
within the past 60 days, they are still operating at
the same rate on business received prior to that time.
In only a few instances are plants running at capac
ity. Because of reduced operations, the labor sup
ply is sufficient, although the local typographical
union is still nominally on strike. Only a few firms
report that they are unable to secure enough com
positors, but the skill of those available is not all that
may be desired.
In the costs of doing business there has been little
change within the past 60 days. Book paper is
firmer in price than it has been for months, although
price lists have not been raised. Printers are not
stocking up for future needs as they do not expect
any material increase in price and are always able to
get orders filled promptly. Other materials have
not changed to any appreciable extent recently.
W ages, in the opinion of some firms, must be ad
justed before normal conditions can be expected;
but there are many who express doubt as to the ad
visability of such a step. The industry as a whole in
Philadelphia is now conducted on an open shop
basis, and a few shops have reduced wages of feed
ers and of certain unskilled workers; but there has
been no concerted action in this regard by any group
of firms.
Although costs are not any lower, charges are be
ginning to be reduced. This is not due to any com
mon agreement among printers, but to the fact that
prices are being forced down bv competition. Mairy
complaints are received regarding the severe pricecutting being done within the trade, Such pricecutting is made possible largely by the attitude of
consumers who, according to one firm, “ desire to
buy on the basis of price rather than quality,” and
consequently usually give the order to the lowest
bidder.
WHOLESALE GROCERIES
Considering that this is ordinarily a season of
brisk demand, the wholesale grocery trade reports
that business is not satisfactory. Sales during the
22
latter part of November and early December were
confined largely to holiday goods, but the demand
even for these lines was not up to normal. The
trade is buying conservatively and in many cases is
curtailing purchases in order to avoid the risk of
carrying over unsold holiday specialties. There
has been no single tendency in the movement of
prices, as some are rising and others falling; but
niost commodities are steadier than they were a few
nionths ago. The current situation presents a strik
ing contrast with that of a year ago when prices
were uniformly falling. In regard to particular
commodities, flour has fallen from 25 cents to $1 a
barrel since December 1, reflecting dullness in the
wheat market. Butter and eggs are also cheaper.
Dried fruits are reported to be selling particularly
well, owing no doubt to the holiday demand, and
prices are firm. Am ong fresh vegetables, onions and
cabbages have all fall brought much higher prices
than they did last year. The demand for canned
goods is light, and quotations are weaker in spite of
the fact that this year’s pack was unusually small
and the carry-over from last year was supposed to
have been well absorbed by the buying activity early
ln the fall. A standard grade of canned corn, for
example, is selling for 85 cents a dozen, as com
pared with about $1.20 last December.
The sugar situation deserves special mention. All
refiners reduced their quotations early in December
from 5.30 cents a pound to 5.20 cents, which was the
first change since October. The reduction was ex
pected because of certain developments in the raw
sugar market, and it failed to stimulate demand.
Consequently, the price was later lowered to 5.10
Ceuts, and on December 22, to 5 cents. Raw sugar
° f the new Cuban crop is now on the market and
has been sold for January delivery at as low as
two cents a pound, equivalent to 3.61 cents, duty
Paid. The previous sale of old crop raws effected
fiy the Cuban Sugar Finance Committee was at
4 -11 cents.
Later in the month the committee re
duced quotations to a basis equivalent to 3.86 cents,
duty paid. On December 22, a long-expected decree
" a s issued by the President of Cuba abolishing the
Sugar Finance Committee on the first of January,
this will leave the sugar market open and uncon
trolled. There is a large supply of old crop sugar
still in Cuba, which must be disposed of, and the new
cr°p now entering the market serves to further com
plicate the situation. As the trade was expecting
some such developments, the market was inactive
during the month.
23
The following table gives the trend of sales and
accounts in the wholesale grocery trade of the Third
Federal Reserve District during November. It will
be noted that sales were less in that month than in
October. The comparison would be even more
unfavorable were it not for the fact that the figures
for one large firm, contrary to the general tendency,
increased about 18 per cent during November. A
decline of 23.7 per cent is shown to have occurred
since November, 1920, whereas October sales were
only 19.1 per cent below those of the previous Octo
ber. This difference from last year is largely ac
counted for by the decline in prices, particularly of
sugar, which was selling at 9 cents last November.
One firm, for example, reports that in November,
1920, sugar sales made up 35 per cent of the total,
whereas this year they accounted for less than 15 per
cent.
The figures for accounts outstanding might well
be viewed with concern, for they are decreasing less
than are sales, and the proportion of accounts to
sales has been increasing rapidly since August. Re
flecting this situation, complaints in the trade are
almost universal that collections are slower.
W H O LESA LE GROCERY TRA D E
N um ber of rep o rtin g firms— 48
N ovem ber, 1921, N ovem ber, 1921,
com pared w ith
com pared w ith
O ctober, 1921
N ovem ber, 1920
Net sales during November..........
Accounts outstanding November
30 ............................'......................
—3.7%
—23.7%
—2.7“
—13.5“
Ratio of accounts outstanding to sales:
November, 1921................................................. 112.6%
October,
“ ...................................................108.3“
September, “ ...................................................105.8“
August,
“ ................................................ 98.3 “
July,
“
102.6“
June,
“
96.5“
CONFECTIONERY
Confectionery manufacturers as a whole have done
a rushing holiday business this year, which compares
favorably with that of previous years. Because of
doubt as to the extent of the prospective Christmas
demand, and remembering the return of unsold goods
by dealers last year, many manufacturers urged
dealers not to over-estimate needs, and many of the
latter of their own accord refrained from purchasing
large supplies. Consequently factories were kept
busy later than usual filling rush orders by mail and
supplying the demands of local dealers. The volume
of business will, in general, compare favorably with
that of the same period last year, although this is
not true in the case of all firms. One large manu
facturer reports that his November sales were 22 per
cent above those of November, 1920; but this is an
exceptional case. A ll grades of candy and confec
tions are sharing in the good demand, and to prac
tically the same degree.
Orders placed in December, it is true, have prac
tically all been for immediate delivery, and a variety
of opinions have been expressed as to the prospects
for the first few weeks of next year. A pronounced
slump began in the trade last January, when, dis
covering that they had over-estimated their holiday
needs and were left with a surplus supply of candy
on their shelves, dealers stopped buying and in many
cases returned unsold goods to the manufacturers.
This year buying has been done more carefully, and
dealers’ stocks at the beginning of the holiday season
were smaller than last year. Manufacturers’ stocks
are also small, and hence many of them have found
it necessary to increase production materially by
enlarging the force of employees or by working over
time. Operations during November and most of
December were in most cases at capacity.
The question of prices for next year is one that in
some cases still remains to be settled. Certain re
ductions were made early in this year in spite of the
fact that most manufacturers had large stocks of
sugar on hand, bought at from 17 to 22 J4 cents a
pound, and were under contract for more, while the
market price had fallen to 8 cents or lower. Other
reductions were made during the year, but practi
cally no changes have occurred for several weeks,
although a little price-cutting is reported on some
grades. Bulk goods are now nearly 50 per cent
cheaper than last year. In package stuff, pre-war
prices have again appeared, but the packages are not
as large as they were formerly. The individual sizes
of penny candies have also been increased. Fine con
fections, however, have not come down to the same
extent as other lines. Raw materials are much
cheaper. Sugar is down nearly to 5 cents, and the
large stocks of it bought at high prices have been
consumed. Cocoa beans, although firmer recently,
are below their pre-war norm al; and corn syrup, tin
and wooden pails, and paper boxes have all come
down considerably. On the other hand, wages
which have not been reduced to any appreciable ex
tent, as it is claimed that they were never before high
enough, and the possibility of a sales tax, are factors
which must be considered in the determination of
prices for next year.
Opinions vary regarding collections. Many con-
24
sider them to be slow, but most of the larger firms
find them good.
TOBACCO
C igars
The Christmas demand for cigars has held up
well this year and in general has been satisfactory,
at least to the manufacturers in the Third Federal
Reserve District. Business has had a firmer and
more substantial tone than in previous years, as
jobbers have purchased more cautiously, taking care
not to over-estimate requirements. Manufacturers
have encouraged this policy, for they wish to avoid
the cancellation of orders and the return of unsold
goods which would result after the holidays, should
the dealers be unable to dispose of the stocks they
purchased for holiday requirements. The trade feels
that such a possibility has been avoided this year.
Indeed, instead of ordering in excess, many dealers
failed to purchase enough cigars and at the last
minute were obliged to place rush orders for ad
ditional supplies.
Consequently, many manufac
turers had more business than they had expected.
Later in the month, however, requests for deferred
shipments began to come in, though not in large
numbers. These requests came from dealers who
wished to have stocks as low as possible at the close
of the year when inventories are taken, and they
were not unexpected by manufacturers. A slump in
business is customary in the latter part of December
and the first of January, but this year there will prob
ably be less of a decline than there was last December
and January, when sales of cigars fell off 30 per cent,
for dealers’ and manufacturers’ stocks are lower and
the general demand for cigars is better.
In this connection the accompanying table is given
showing sales of internal revenue stamps on the dif
ferent classes of cigars for certain months.
1920
September ..
October ---November ..
December ..
1921
January ---July .............
August ........
September ..
October . . . .
N um ber of C igars U pon W hich Stam ps W ere Sold
C ollector of In te rn a l R evenue
(000’s om itted)
_
.
_
_
Class E
T otal
Class A
Class B Class C
Class D (o v er
large
(u n d e r 6c.) (6c.-8c.) (9c.-15c.) (16c.-20c.) 20c.)
cigars
145,713
152,258
154,274
119,334
206,225
203,664
192,539
148,355
307,327
326,143
295,793
217,745
13,059
16,727
18,147
16,653
6,316
6,007
7,307
4,040
678,640
704,799
668,060
506,127
127,046
176,746
201,630
201,074
205,161
147,317
153,840
170,686
168,818
167,235
176,891
223,123
236,473
231,024
248,419
9,718
9,136
11,155
11,101
11,888
1,826
1,753
2,095
2,411
3,104
462,798
564,598
622,039
614,428
635,808
It will be noted that the totals for September and
October of this year are still well below those for the
corresponding months in 1920— approximately 10
per cent in both cases. Substantial decreases oc
curred in the succeeding months last year, however,
and sales in January, 1921, were the lowest on record.
The most interesting feature of the table is its in
dication of the changes that have taken place in the
sales of the individual classes. Comparing the class
totals for September and October in 1920 and 1921,
it will be seen that whereas the sales of Class A
cigars were much greater this year than last, those of
all other classes were very much smaller. This illus
trates the manner in which the cigar industry met
the demand for cheaper products without making any
material reductions in existing prices. The constant
increase in the sales of Class A cigars can be a ttrib
uted in part to reductions on certain brands that had
risen to a Class B level during the period of high
prices; but it is chiefly due to the entirely new brands
° f five-cent cigars that have been placed on the mar
ket to meet the popular demand for cheaper goods.
Manufacturers making these sizes report that the
demand seems to be insatiable. Sales of Class B
C1gars have fallen nearly 30 per cent within the year,
and of Class C almost 25 per cent. Comparisons
°I figures of Class C sizes mean very little, as this
class covers a wide range of popularly priced cigars
among which a shift in demand has occurred. For
example, ten-cent cigars are selling practically as well
as they did last year, whereas the fifteen-cent sizes,
in the same class, are not so popular. The expensive
cigars in Classes D and E have fallen off con
siderably.
Collections are generally considered to be satis
factory, but few firms report that they are slow.
L eaf
The leaf tobacco situation in Philadelphia shows
no change, and local dealers are consequently dis
couraged. Manufacturers are not yet buying to any
appreciable extent, except in the cases of a few firms
who are doing a big business and who consequently
need tobacco and are able to pay for large quantities.
Some of the local manufacturers were active pur
chasers of 1920 Pennsylvania leaf during the past
month. Other scattered purchases are reported from
the growing regions, but the new crops as a whole
have not as yet been sold by the farmers. W hat the
prices for this year’s crops will be is still problema
tical. The import grades are meeting with better
demand than the domestic, in some cases because
prices have been reduced, and in other because of
the scarcity of good tobacco available.
C O M P IL E D A S O F D E C E M B E R 20, 1921
25
RESOURCE AND LIABILITY ITEMS
of Member Banks
In Philadelphia, Camden, Scranton and Wilmington
(000’s omitted)
CHARGES TO DEPOSITORS’ ACCOUNTS
other than banks’ or bankers’, as reported by Clearing Houses
Dec. 14,1921
Nov. 16, 1921
Dec. 15, 1920
At the close of business
Dec. 7, 1921
Nov. 9, 1921
Jan. 7, 1921
353,628
354,724
376,385
198,231
338,880
198,261
350,830
198,983
406,702
48,581
9,721
5,990
46,367
10,148
7,717
45,283
11,342
7,189
11,448
12,447
159,500
158,246
154,363
Total loans, discounts
and investments... . 3821,720
Demand deposits.............
627,831
Time deposits...................
44,741
Borrowings from Federal
49,065
Reserve Bank...............
33,939,000
Altoona.................
S3,108,000
33,089,000
5,355,000
Chester..................
3,686,000
4,129,000
7,451,000
Harrisburg............
6,395,000
6,978,000
5,966,000
4,392,000*
Johnstown.............
4,452,000*
5,040,000
5,573,000
Lancaster..............
4,728,000
Philadelphia.......... 295,669,000 305,167,000 367,788,000
8,639,000*
7,142,000*
7,736,000*
Reading.................
14,745,000
15,586,000
Scranton................ 15,414,000
11,601,000
11,589,000
Trenton.................
11,843,000
9,048,000
Wilkes-Barre.........
9,477,000
9,631,000
4,633,000
Williamsport.........
4,171,000
6,190,000
Wilmington...........
5,993,000
6,728,000
10,556,000
York......................
3,842,000
4,102,000
4,502,000
3837,741
630,800
44,698
3905,505
672,893
36,976
54,311
110,036
Loans and discounts:
Secured by U. S. securities
Secured by other stocks
and bonds...................
All other.........................
Investments:
United States bonds. . . .
U. S. Victory notes........
U. S. Treasury notes.. ..
U. S. certificates of in
debtedness ..................
Other bonds, stocks and
securities.....................
Totals................ 3371,842,000 3383,271,000 3448,414,000
*Different number of banks reporting. Not included in total.
BUSINESS INDICATORS
STATEMENT
Federal Reserve Bank of Philadelphia
(000’s omitted)
Percentage increase or
decrease compared with
Dec. 19,1921
RESOURCES
Dec. 14,1921 Nov. 16,1921 Dec. 17,1920
Gold reserve.....................
Other cash........................
3224,563
6,277
3214,299
6,181
3199,451
690
Total reserve...........
Discounts— secured by U .
S. securities...................
Discounts—all other.......
Purchased bills.................
U . S. securities.................
3230,840
3220,480
3200,141
66,405
19,225
8,665
14,291
63,932
26,177
7,846
15,631
125,197
41,877
13,620
32,935
Total earning assets. . 3108,586
57,431
Uncollected items............
1,730
All other resources...........
3113,586
64,076
1,647
3213,629
74,076
2,963
3398,587
3399,789
Philadelphia banks:
Loans.........................
Deposits....................
Ratio loans to de
posits .....................
Federal Reserve Bank:
Discounts and col
lateral loans..........
Reserve ratio..............
90-day discount rate..
Commercial paper___
3490,809
Total resources.........
LIA BILITIES
Dec. 14,1921 Nov. 16,1921
38,713
17,564
660
101,065
1,384
3103,109
200,725
22,527
53,931
6,015
3399,789
3490,809
Total liabilities.........
3398,587
105%
389,702,733
73.0%
4H%
4H%
Bank clearings:
In Philadelphia......... 31,697,000,000
Elsewhere in district.
150,062,000
T otal..................... 31,847,062,000
Building permits,
Philadelphia.............
5,796,695
Post Office receipts,
Philadelphia.............
1,281,584
Commercial failures
in district (per
Dun’s ).......................
102
Latest commodity in
dex figures:
Annalist (food prices
only)......................
164.246
Dun’s .........................
164.531
Brads treet’s ..............
11.3127
*Actual figures.
3107,961
278,821
4,582
60,281
4,815
- 1 - 4 % - 1 1 .5 %
- -7% - 9.5%
November, 1921
38,485
13,069
3,053
103,116
1,792
Total deposits........... 3101,928
Federal Reserve notes... . 203,767
Federal Reserve Bank
notes..............................
5,288
Deferred availability items
56,322
All other liabilities...........
4,982
3639,511,000
610,717,000
Year ago
106%*
107%*
+ 1.1% - 4 5 .3 %
74.0%*
56%*
4V f/ c *
6%*
4 H%*
8% *
Percentage increase or
decrease co mpared with
Dec. 17,1920
38,736
17,564
2,740
97,822
1,366
Capital paid in.................
Surplus..............................
Government deposits. . . .
Members’ reserve account
Other deposits..................
Previous
month
26
Previous
month
Year ago
- 1 .7 %
- 5 .2 %
- 2 .0 %
- 1 3 .7 %
—11-1%
- 1 3 .5 %
+ 4 .8 %
+ 151.7%
+ 2 .2 % 77*
4.4%
47*
+2.3% - - 1 9 .8 %
+ -5% - 2 2 .3 %
.3% -1 7 .0 %
nnuo(c'
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