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BU SIN ESS AND FIN A N C IA L
CO NDITIO NS
IN THE
THIRD FEDERAL
PHILADELPHIA
RESERVE DISTRICT
JULY I, 1922
By RICHARD L. AUSTIN, Federal Reserve Agent and Chairman
FEDERAL RESERVE BANK o f PHILADELPHIA
GENERAL SUMMARY
CONTENTS
For summary o f Federal Reserve Board on business conditions
throughout the United States, see pink slip inserted in this report
PAGE
Agriculture ........................................................................................
Bankers’ acceptances ......................................................................
Bricks .........
B u ild in g ..............................................................................................
Cigars ..................................................................................................
Coal, anthracite ................................................................................
Coal, bituminous ..............................................................................
Coke ....................................................................................................
Commercial paper ............................................................................
Confectionery ....................................................................................
Cotton goods ....................................................................................
Cotton: r a w ........................................................................................
Urugs, wholesale ..............................................................................
i;.ry goods, wholesale........................................................................
financial conditions ........................................................................
cloor coverings ................................................................................
foreign exchange ............................................................................
Class ..................................................................................................
Groceries, wholesale ........................................................................
c»des and s k in s ................................................................................
llosiery .....................................................................
Iron and steel ..................................................................................
Leather................................................................................................
Leather goods....................................................................................
Cum ber................................................................................................
£ aint ..................................................................................................
paPer ..................................................................................................
nnting and Publishing..................................................................
Retail trade ......................................................................................
avings deposits ..............................................................................
?«9urities ..........................................................................................
Shipbuilding ......................................................................................
o ^ e s ..................................................................................................
29
7
25
o !lk- raw ............................................................................................
fr1 1 ....................................................................................................
^
cuderwear ........................................................................................
{rho esale t r a d e ................................................................................
Ur00 - r a w ..........................................................................................
w ° 0 en goods and worsted g o o d s ................................................
°olen yarns and worsted yarns ................................................
20
10
22
9
20
19
19
12
12
28
15
15
16
6
28
18
16
9
9
5
22
7
13
10
23
22
10
23
24
13
14
26
27
8
7
6
11
LTH O U G H June is normally a month of de
clining industrial activity, it has not proved
L to be such this year, and the betterment in
^eneral conditions first noted late in April has conUed. It is true, the gains made during the last
° nth have been smaller than those of May, but the
A
improvement has been marked. Several of the in
dustries that heretofore had not been affected by the
general upward movement have recently reported
considerably heavier sales, and this, coming at a time
when a decline was to be expected, is especially sig
nificant as indicative of the underlying trend of busi
ness.
Steady improvement both in demand and in pro
duction is reported by the iron and steel industry.
Large sized orders for delivery as far in advance as
90 days have been booked, but the great majority of
manufacturers are unwilling to accept future busi
ness, in view of the continued uncertainty as to the
duration of the coal strike. The market is distinctly
in the seller’s favor, and as a result prices are still
advancing. However, no rapid’ rises, such as those
of May, have occurred recently. Operations have
expanded, but the industry is now confronted with
several production difficulties, the most important
of which, perhaps, is the growing scarcity and the
advancing price of coke. There is also a shortage
of skilled labor, and in some quarters even of un
skilled labor. Thus far, the reduction in freight
rates, which is to take effect on July i, has had no
effect on the industry other than the delaying of ship
ments until that date.
The greatest improvement reported by any indus
try has occurred in the construction and building
material trades. The permits issued during May in
the Third District were slightly less than those is
sued during 'April, but were considerably in excess
of those of May, 19 21. In Philadelphia, however,
the increase has continued, the total number for May
SYNOPSIS OF BUSINESS CONDITIONS
THIRD FEDERAL RESERVE DISTRICT
B u sin ess
D em an d
P rices
F in ish e d
stocks
R a w m aterial or
MERCHANDISE SITUATION
C ollections
Bricks
Excellent
Increasing
Very light
Advancing in price
Good
Cigars
Good
Firm
Light
Foreign tobacco higher
in price
Domestic tobacco slightly
lower
Good
Coal, anthracite
Poor
Slightly higher
Light
Poor
Coal, bituminous
Good
Higher
Medium
Fair
Coke
Good
Unchanged
Light
Fair
Confectionery
Fair
Lower
Light
Advancing in price;
plentiful
Cotton goods
Improved
Advancing
Normal
Rapidly rising prices
Fair
Drugs, wholesale
Light
Unchanged
Normal
Plentiful
Fair
Dry goods, wholesale
Fair
Same
Light
Advancing prices
Fair
Good
Fair to good
Floor coverings
Excellent
Unchanged
Light
Advancing prices; supply
sufficient
Glass
Excellent
Higher and
increasing
Decreasing
Slightly advancing prices
Fair
Groceries, wholesale
Fair
Firm
Light
Ample
Fair
Hardware, wholesale
Good
Slightly higher
Light
Slightly advancing prices
Fair
Hosiery, full-fashioned
Good
Slightly lower
Light
Advancing prices; easily
obtainable
Good
Hosiery, seamless
Fair
Slightly lower
Normal
Advancing prices; easily
obtainable
Good
Iron and steel
Good
Slightly higher
Light
Scarce
Fair
Leather, belting
Fair and improving
Firm
Heavy but
decreasing
Firm in price; plentiful
Good
Leather, heavy
Fair and improving
Advancing
Heavy but
decreasing
Advancing; supply
decreasing
Good
Leather, upper
Fair and improving
Unchanged
Heavy but
decreasing
Firm in price; plentiful
Good
Lumber
Good
Advancing
Light
Paints
Good
Firm
Decreasing
Advancing in price
Fair
Good
Paper
Fair
Firm
Medium
Sufficient
Fair to good_
Shoes, manufacture
Fair and improving
Slightly lower
Normal
Firm in price; plentiful
Fair
Shoes, retail
Fair
Unchanged
Light
Slightly lower in price
Fair
Silk, manufacture
Poor
Firm
Heavy
Advancing prices
Fair
Underwear, heavy weight
Poor
Advancing
Normal
Advancing prices
Good
Fair
Unchanged
Light
Advancing prices
Good
Advancing in price
Fair
Underwear, light weight
Wool goods
Fair and improving Advancing
Above
normal
Worsted goods
P oor; improving
slightly
Advancing
Light
Advancing in price
Slower
W ool yarns
Fair
Stronger
Normal
Prices high and firm
Fair
Worsted yarns
Fair
Stronger
Light
Prices high and firm
Poor
—
2
_-
being 1,483, as compared with 1,4 15 for April, and
B 3 11 for May of last year. Operations are pro
ceeding rapidly as well on large structures as on
houses, and a scarcity of skilled mechanics is reported
by many contractors. Manufacturers of building
Materials report that business is better than at any
hme within the last two years, and price advances
have been common. The demand for bricks is far
ln excess of the supply, and is approximately double
that of last year. Prices have been raised from $ 1
to $2 a thousand, as a result of the increased cost of
c°al and of the higher wages now being paid by
ttiany manufacturers. The call for lumber, too, is
ln excess of present production, and there is a scarClty in certain grades. The seasonal demand for
glass began late in May, and in recent weeks sales
have increased rapidly. The call for wire glass,
chiefly for use in office buildings, is much better than
has been for many months. The paint industry,
ak°> reports large gains in the volume of business.
developments in the coal markets have been
largely the result of the conference called by Secretary Hoover late in May. Prior to the conference,
there had been a very rapid advance in spot quotahons for bituminous coal, and sales had been large in
sPffe of this rise. Immediately upon the calling of
the meeting, however, the price advance was
abruptly halted and sales fell off, as consumers ex
acted that the conference would result in lower quo
tations. A t the meeting a maximum price was es
tablished, and although in recent weeks quotations
ave advanced slightly, in no case have they reached
ais maximum. Sales too have been larger during
ne past few weeks, and are growing, as reserve
stocks in consumers’ hands dwindle. The productl0n of bituminous coal in non-union mines has in
c a s e d steadily since the latter part of April, and
Uring the week ending June 10 reached the
5»°°o,ooo ton mark for the first time. Consumphowever, exceeds production by from three to
^ Ur million tons a week, and stocks have therefore
en cut into very heavily. The stores of bituminous
C ab estimated at about 60,000,000 tons when the
°
strike was called on April 1, now probably total less
an half of that amount. With the exception of a
scattered purchases for next fall’s needs, the
Jket for the domestic sizes of anthracite is in1Ve- Sales of steam sizes, however, have incit ased, and prices have advanced. Stores of anthra,
coal, too, have been largely depleted, and proctj°n £or t^e present coaj year is more than
/>o°o,ooo tons behind that of the same period of
the last coal year. With operations increasing in
practically all industries, and with the available sup
plies of coal being reduced at a rapid rate, the coal
strike becomes an industrial problem of greater mag
nitude each day.
Moderate improvement is reported by the textile
industries. Buyers of cotton goods are still very
cautious, but sales have been stimulated by the ad
vance in raw cotton quotations. The call for the
heavier cotton goods has been greater than that for
the finer grades. Some few orders for future deliv
ery have been placed, but the demand is still mainly
for immediate delivery. Gray goods prices are
stronger, but have not reflected the full advance in
the raw material. With the exception of ginghams,
supplies of which are heavy, stocks of cotton goods
are generally reported to be normal for this time of
the year. Production schedules in the industry are
being maintained at about 85 per cent of capacity.
Raw cotton is very strong at this time, owing to the
small supply and to the increased demand in this
country, and for export to England and Germany.
The strength of prices is in large part attributable to
unfavorable weather conditions in the cotton grow
ing states, and to the early appearance of the boll
weevil.
Betterment in conditions is also reported by the
woolen cloth industry, but worsted goods manufac
turers find that the call for their products is still ex
tremely poor. In spite of this fact, however, prices
have again been advanced. Sales of both woolen
and worsted yarns have increased slightly, and
prices have strengthened. Stocks of yarns are not
heavy. The raw wool market has been somewhat
less active than during May, but sales have con
tinued large. Prices have not decreased, and a scar
city, especially of the finer goods, has developed.
Sales of the Ohio fleeces have been very good, as
these are being used to supplement the Australian
wools, which have not been imported to any extent
because of the high emergency tariff. The western
territory clip, with the exception of that of Montana,
has been almost completely bought up, and the de
mand for wools is so good that for the first time in
several years considerable wool has been contracted
for on the sheep.
After a slight reaction about June 1, raw silk
prices have again advanced and the market is fairly
active. Importations have increased materially, but
consumption has kept pace with them, and stocks
therefore have shown no change. Silk throwsters
report slightly increased business, hosiery manufac
3
past month, although there is evidence of a seasonal
decline in some lines. Wrapping paper is not in as
good demand as are the finer grades. There has
been some price-cutting on book papers, but prices in
general are firm. The printing and publishing in
dustry reports improvement during recent months,
because of the large increase in the volume of adver
tising. Some reaction has occurred during June,
but no general movement toward a decline in de
mand is noted. Price-cutting in this industry con
tinues.
Sales of cigars have increased materially during
the past month, and production throughout the dis
trict is greater. Confectionery manufacturers also
are experiencing good business, in spite of the fact
that this is normally a dull season. In some quar
ters price-cutting is indulged in, but quotations as a
whole are firmer as the result of a rising raw material
market.
Weather conditions in this district during the past
month have been most favorable for agricultural por'
poses, and crops have made excellent progress.
Judging by their present condition, the yield this
year will be large.
Perhaps the most striking evidence of the grow
ing strength of business conditions is found in the
continually decreasing number of unemployed.
the six cities of Altoona, Harrisburg, Johnstowm
Philadelphia, Scranton and Willamsport, there wefe
104,055 unemployed on June 15, as reported by the
Pennsylvania State Department of Labor, the low
est figure since December 30, 1920. This total does
not include the number of striking miners, as these
cannot be considered as among those who are unemployed through lack of work. This figure repre'
sents a decrease of 15.9 per cent from the estimate
for June 1, of 25.3 per cent from that of May i 5>an
of 32.8 per cent from that of May 1. In Philadel'
phia there were 56,100 unemployed on June *5’
69,600 on May 30, 82,600 on May 15, and 95,7° ° ° n
May 1.
The number of commercial failures in the Unite
States, as reported by R. G. Dun & Company, con
tinues to decline. In May there were 1,960 fal1'
ures, with total liabilities of $44,402,886, as con
trasted with 2,167 failures in April, with total ha
bilities of $73,058,637. In the Third Federal
serve District, however, the number of failures in
creased slightly during May, the figure for tha
month being 87, with liabilities of $1,568.262, an
for April, 78, with liabilities of $1,468,343.
From the standpoint of the business community’
turers being large purchasers of yarns. The call for
broad silks, however, has shown no improvement,
with the exception of that for crepes. Sales of can
tons and crepes de chine have been particularly good,
and at present the demand cannot be supplied.
Prices are slightly higher. Stocks of all other silks,
however, are large, and as a result the production of
silks averages only 40 per cent of capacity. Con
siderable business is still being taken by full-fash
ioned hosiery manufacturers, and many producers
are booked to capacity until September; others, until
the end of the present year. Seamless silk hosiery
is selling well, but shipments are confined mainly to
dates within five or six weeks. The cotton and
mercerized lines are inactive, with the exception of a
few kinds of infants’ wear. In the underwear in
dustry there has been some replacement business for
light weight goods, but few fall orders have been
forthcoming, because of the advances in yarn quo
tations. As a result of this rise, the formal open
ings of the spring lines have been delayed.
Activity in the floor covering industries continues
at a rapid rate, and orders are still being received in
large volume. The rate of gain has been relatively
greater in the lower grades, especially of tapestries,
velvets and ingrains, than in the finer qualities.
However, Axminsters and Wiltons are still selling
well, and many mills are booked to capacity. In this
industry, as in several others, a scarcity of skilled
workmen is noticed. The linoleum industry is still
operating at capacity and is finding it difficult to meet
the demand.
After several months of relative inactivity, better
conditions are reported by the shoe industry. Most
of the new business is confined to early deliveries, but
orders also have been received for shipment during
August and September. The total fall business thus
far booked, however, is small, since the buying sea
son has been so long delayed. Little change has oc
curred in prices, although raw materials are higher.
In the leather industries there has been marked im
provement. Heavy leathers have sold well, and
upper leathers also are in much better demand. Sales
of calf are large, and the increased call for kids is
marked. Stocks of leather had been exceptionally
heavy, but they have been reduced considerably, and
operations in a number of plants have expanded. Of
distinct encouragement to the industry is the large
increase in the volume of export business. The hide
markets, too, are in stronger position, and stocks are
small in both the domestic and foreign markets.
Sales of paper have increased slightly during the
4
considerable encouragement is to be found in the
turther rise in the wholesale commodity index numtars. The three numbers regularly reported in these
columns showed an advance for the month of May
0ver those for the month of April. The Dun figure
for the latter month was 168.096, and for May,
*69.997. The Bradstreet index number rose from
U.7044 to 11.9039. The Bureau of Labor Statis
t s has revised its series of index numbers, rcgrouplng many of the commodities, adding a large number
°f new articles, and using the 19 19 census data for
Weighting purposes in place of the 1909 data here-1
tofore employed. The revised figure for May was
*4o, an increase of 3.5 per cent over the figure for
^pril, and of 2.1 per cent over that for May, 19 21.
The following table gives the commodity group fig
ures for May, and those for April of this year and
f°r May, 19 21.
Re v i s e d i n d e x n u m b e r s o f w h o l e s a l e
PRICES, BY GROUPS OF COMMODITIES
(1913=100)
•
p
1921
May
1922
April
arm products.....................................
t ods ...................................................
p °ths and clothing.............................
uel and lighting.................................
fi mj- and metal products.................
S
uilding materials .............................
tj emicals and drugs............................
^ousefurnishing g o o d s ......................
T/.^ellaneous .......................................
1 commodities .................................
118
139
173
200
138
165
134
209
126
145
129
137
171
194
113
156
124
175
116
143
figure is of special significance. Although this is a
new high level, the rate of increase is decidedly less
than it has ever been since commodity prices in Ger
many began to mount so rapidly. The French index
number, too, increased slightly during May. The
table below gives the index numbers for the United
States and the principal foreign countries, and shows
their percentage changes during recent months.
F IN A N C IA L C O N D IT IO N S
1922
May
132 138 175 t
216 *
■
119 1
160 T
122
176 ♦
116
148
Of the more recent changes in foreign index numDers> the gain of only 3.6 per cent in the German
Notwithstanding the improvement in general
business, the statements of the reporting member
banks throughout the United States show a decline
in the amount of commercial loans outstanding.
The item “ all other loans and discounts,” which is
mainly representative of the borrowings of the busi
ness public, is now one per cent less than it was a
month ago and 13.3 per cent less than last year. In
dollars, the decline in the course of the year was
$1,086,000,000. The percentage decrease in loans
and discounts secured by United States obligations
is even greater, but the sum involved is not as large.
Offsetting these declines, we find an increase in the
loans secured by stocks and bonds, of 3.4 per cent
in the course of the four weeks ending June 14, and
of 16.5 per cent during the year ending on that date.
Total loans and discounts are now $934,000,000 be
low a year ago.
The increase in the amount of available funds has
been absorbed to some extent by larger investments
INDICES OF W HOLESALE PRICES
Base of 1913=100 unless otherwise noted
Country
Latest quotation
Peak quotation
Percentage
decline from
peak
j
Percentage change during
May
April
March
^WdStates!
g ederal Reserve Board......... .
p^reau of Labor Statistics**.
Lun’s ..................
rv ra-dstreet’s .......
br£at Britain:
Economist .........
t? Statist .
S
r ........: : ::: ::
iaP
an ....................
r ^ d a ....................
Sweden*.................
ch
a?n*hai
f)0rWay .
......... .
t a s * .............
158— May average
148— May average
141—June 1
129—June 1
162—May 30
158—Apr. 30
317—May 31
524— May average
197—Apr. average
* 167— May 15
164— May 15
150—Apr. 30
187—May 31
231—May 30
6809—June 1
179—June 1
159—Apr. 30
148—Apr. average
161— May 1
269—May,
247—May,
218— May
227—Feb.
310—Mar. 31. 1920
313—Apr. 30, 1920
588—Apr. 30, 1920
670— Nov., 1920
321—Mar., 1920
263— May 15, 1920
372— Dec. 15, 1918
150—Apr. 30, 1922
218—Jan. 31, 1920
425— Sept. 30, 1920
6809—June 1, 1922
403— Nov. 1. 1920
392—Year 1918
354— Feb., 1920
326—Jan. 1, 1920
41.3
40.1
35.3
43.2
+ -7
+ -7
— 1.4
— .8
- f 1.4
+ .7
+ -7
— 1.6
+
-f
+
-f
47.7
49.5
46.1
21.8
38.6
36.5
55.9
0
14.2
45.6
0
55.6
59.4
58.2
50.6
4- 1.3
- f 1-3
+ .3
— 5.2
— 1.5
— 1.8
— 1.2
+ 1.3
+ 1-7
— 5.1
4-25.1
— 2.2
0
— 9.5
— 4.7
— .6
4- .6
4- 2.3
— 1.1
— 2.0
0
4- .6
— 1.3
0
— 1.7
4- 7.7
— .6
— 1.9
— 3.3
— 1.2
4- 1.9
t Middle of 1914 = 100.
§ July, 1912, to June, 1914 = 100.
feli L I913 t0 Jon® 30,
t EnH er lndex number*.
nd O July. 1914 = 100 .
f
1920
1920
1, 1920
1, 1920
5
6.0
3.5
1.4
1.6
4- 1.0
— .6
4—
.6
.6
4—
-f
4-
2.7
2.1
3.6
1.1
during the past three weeks have averaged even less
than in the same period of May. The call money
renewal rate, however, reached a lower daily aver
age— 3.04 per cent— in the week ending June 14
than in any similar period since the beginning of
the year, and on June 2 1 was 2j 4 per cent.
Prices of industrial and railroad stocks have de
clined, as have likewise most of the classes of bonds,
although Liberty bonds and first-grade rails are an
exception. Comparative security prices follow :
in securities. The reporting banks increased their
holdings of securities by $251,000,000 in the period
from May 17 to June 14, and by $729,000,000 in
the course of the past year.
Borrowings from the Federal Reserve banks de
clined $66,000,000 during the period from May 24
to June 2 1. There was also a falling off of $40,000,000 in United States securities, and a gain of
$16,000,000 in purchased bills. The net decrease
in earning assets was $90,000,000. The amount of
Federal Reserve notes in circulation changed little,
but deposit balances declined $63,000,000 and total
reserves gained $12,000,000. The reserve ratio of
the Federal Reserve banks on June 2 1 was 79.1 per
cent, which was the highest since the early days of
the system.
Comparative statistics of all reporting member
banks in the United States and of the Federal Re
serve System appear below.
The market for bankers’ acceptances continues to
be limited, and the supply of this class of paper,
though small, seems to be sufficient to satisfy the
needs of purchasers. The same condition held true
in the commercial paper market during the first part
of June, but within the past week active buying
has reduced the holdings of dealers. Commercial
paper rates hold steady, and the general selling rate
is 434 per cent. In the case of bankers’ acceptances
the range over the past month was from 3 to 334
per cent, with the majority of sales at 334 per cent.
The rediscount rates of the Federal Reserve banks
of New York and Boston have been reduced from
434 to 4 per cent, the new rate being effective at the
former institution as of June 22, and at the latter, as
of June 23.
June 21,
1922
Average o f—
20 railroad stocks ...........
20 industrial stocks .........
10 first grade rail bonds..
10 second grade rail bonds
10 public utility bonds___
10 industrial bonds .........
4 Liberty bonds .............
May 24,
1922
June 22,
1921
$82.62
93.02
88.09
85.29
87.35
94.45
100.09
$85.94
94.70
87.67
86.32
88.02
94.74
99.90
$67.00
66.23
74.15
71.33
71.29
83.64
88.11
Commercial Paper
During June the commercial paper business has
resolved itself into a contest of rates between buycf
and seller. The result is that the volume of business
transacted has been small. Exceptional names have
been sold to a comparatively limited number of buy'
ers at 4 per cent, but the majority of the institutions
both in the city and outside have declined to pur'
chase at that rate, and the largest volume has been
at 4)4 per cent, with a fair volume at 434 per centIn an effort to prevent country buyers from pur'
chasing bonds and other investments not so liqul<3
as commercial paper, some brokers early in J urie
raised rates slightly, but the general tone of the
market has been a steady one throughout the month,
with little change in rates. Outside of this district,
Pittsburgh, which bought a considerable amount 0
paper during May, has become quiet, but New Yor
has bought heavily, particularly since the reduction
to 4 per cent in the discount rate by the Federal Re'
serve Bank of that district.
S ecurities
The security markets have not regained the ac
tivity which featured the middle of April, and sales
FEDERAL RESERVE SYSTEM
REPORTING MEMBER BANKS—UNITED STATES
June 21,
May 24, Ju 0, f
,ne
1922
1922
„ l9“ l
(In millions of dollars;
June 14,
May 17,
June IS,
1922
1922
1921
(In millions o f dollars)
Loans and discounts:
Sec’d by U. S. securities...
Sec’d by other securities...
All other (commercial) ...
309
3,526
7,109
329
3,411
7,176
657
3,026
8,195
Earning assets:
Bills discounted .................
Purchased bills .................
U. S. securities..................
422
121
555
487
105
596
Total ...............................
10,944
10,916
11,878
Total ...............................
1,098
1,188
U. S. securities owned...........
Other securities owned.........
1,997
2,272
1,797
2.221
1,463
2,077
Fed. Res. note circulation...
Total deposits........................
Total reserves ......................
2,126
1,854
3,148
2,128
1,917
3,135
2,639
1.697
2.620
Total investments .........
4,269
4,018
3,540
Total deposits........................
14,730
14,326
13,738
79.1%
77.5%
60.4#
Reserve ratio
6
1,754
39
289
2,0 82
’
The supply of commercial paper has increased but
little; it was sufficient, however, during the first three
Weeks of June for the demand. Since then brokers’
lists have been cut down and are now very small.
The expansion in business has so far not been re
flected in the demand for credit through the medium
°f commercial paper.
This would indicate that
Manufacturers and merchants have enough money
to take care of their present needs.
It may be
that some liquidation of securities bought with sur
plus funds during the period of business depression
has taken place and that this liquidation has supplied
the necessary funds.
Sales of six reporting firms in the Third Federal
Reserve District during May total $9,588,000. Of
this sum, $5,372,000 was sold to Philadelphia in
stitutions and $4,216,000 sold outside of the city.
Sales were 40 per cent greater than in May, 19 21.
These reports show that more paper was sold at 4 Y\
Per cent than at any other rate, but the amount sold
at 4 per cent was nearly as large. With the excep
tion of a comparatively small percentage sold at 4j4
and 5 per cent, the balance was at 4^2 per cent.
The exportation of grain, cotton and general mer
chandise, the importation of sugar and coffee, and the
domestic shipment of cotton are some of the principal
transactions involved in the acceptances which have
come into the market lately.
S avings D eposits
A further decline of 0.7 per cent during May in
savings deposits is reported by banks in this district.
As they now stand, these deposits are only 1.9 per
cent above the figures of a year ago. Apparently
the general increase in business has not yet been felt
either long enough or over a sufficiently wide area
to enable the people to add consistently to their sav
ings deposits except in a few individual cities. The
largest decreases during May are reported by Scran
ton and Wilkes-Barre, as was to be expected in view
of the coal strike. This strike also probably was a
factor in causing the decline reported by Johnstown.
The table below compares deposits on June 1, 1922,
with those on May 1, 1922, and on June 1 of the
two previous years:
Number
of
reporting
banks
B ankers ’ A cceptances
Sales of bankers’ acceptances in the Third Federal
Reserve District, as reported to this bank by five
dealers, for the four-week period ending June 1 1 ,
averaged higher than in the three preceding periods,
as can be seen from the table which follows:
v»r
weekly
From
From
M-om
U om
Purchases
averages
Feb. 13
Mar. 12
Apr. 17
May 15
for period—
to Mar. 12..............
to Apr. 16 ..............
to May 14...............
to June 11..............
Sales
$420,000
530,000
790,000
827,000
$2,617,000
2,987,000
2.652,000
3,010,000
however, this more favorable showing comes al
most entirely from larger purchases by the Federal
Reserve Bank, and the amounts sold to other bankinstitutions declined greatly in the last period.
la uy of the acceptances have been offered at 3 per
Cetlb but purchasers have been loath to bid less than
3^8 per cent, and show a preference for bills of the
shorter maturities.
. "hhe supply of acceptances is not large, but is suffilf nt to care for the present demand. In this disrict the amount created by the twelve reporting acCePting banks has been increasing over the past four
Months. The amounts executed for the preceding
°nthly periods were as follows: June 10—$4,612,w ° ; May iq —$ 3,274,000; April 10— $3,097,000;
arch 10— $2,365,000; February 10— $5,007,000.
Per cent increase or decrease
June 1, compared with
May 1,
June 1,
June 1,
1922
1921
1920
Altoona ..............
Chester ...............
Harrisburg ........
Johnstown .........
Lancaster ...........
Philadelphia .......
R eading..............
Scranton .............
T renton .............
W ilkes-Barre___
W illiam sport___
Wilmington .......
Y o r k ....................
Other .................. . . .
5
5
4
6
3
9
3
6
6
5
4
5
5
14
- f .5%
— .4 “
+1.8 “
— 1.6 “
+ 1 .4 “
— .4 “
+ 1 .5 “
— 1.9 “
+1.5 “
—3.7 “
+ .4“
— .2 “
— .2 “
— 1.4“
+ 6.0%
— 9.8 “
+42.4 “
— 5.9 “
+ 8.7 “
+ 1.0“
+ 6.4 “
+10.8 “
— 1.2 “
+ 6.1 “
+ 5.3 “
+ 1.1 “
+ 7.7 “
+ 2.5 “
4-18.5%
— 6.0 “
+76.2 “
+ 2.0 “
+30.1 “
+ 6.3 “
+21.8 “
+34.1 “
+ 4.0 “
+29.1 “
+22.0 “
+ 6.6 “
+54.7 “
+15.5 “
Totals ......... . . .
80
— .7%
+ 1.9%
+ 9.9%
F oreign E xchange
The outstanding feature of the last month in the
foreign exchange market has been the strength dis
played by sterling in the face of erratic fluctuations
on the part of the other European currencies. On
June 5, for the first time since July, 1919 , the pound
sold at above $4.50. Following that date, however,
sterling fell to $4.3961 on June 19, but later recov
ered a portion of this loss. Danish and Swedish
currencies and Dutch guilders also displayed unusual
strength, the latter currency rising to $.3909 on
June 6, the highest level since January, 1920. Dan
ish kronen rose to $.2208 on the same date, the
highest value in nearly three years. Most of these
currencies reacted violently following the failure of
the Paris Bankers’ Conference to arrange a loan to
Germany.
Practically all of the European exchanges, with
the exception of German and the eastern European
rates, have been consistently stronger during the
present year than during the corresponding period
of 19 21. The accompanying chart shows the fluc
tuations of English, French, Italian and German ex
changes during 1920, 1921 and 1922. It will be
seen that English and French currencies have been
especially strong during the present year and that
lire are in a much less favorable position. The posi
tion of the mark has steadily weakened, and the pres
ent quotations are much below those of the same
period of 1920 and 1921.
Comparison of Foreign Exchange Rates
on
E n g la n d , F rance , Ita ly aho G ermany
Percent
Percent
OF
^ 0F
Par
____________
E ng
Par
-A T lD
90
90
1921 ^
80
70 <
1920
„
N
V
------- 80
X
z
70
60
60
F d a s r .r
50
50
1921
40
y
>•
30 '
20
• X ..* .............
'
*»•_
*
- r v '
_ It ; L Y
_____ (S)20____
*
------
......... .
I9?0
..........1921___ j
0 ---------------- <9
epn
30
20
x«- —
G
FOREIGN EXCHANGE RATES—NOON CABLES
June 20,
May 19,
June 19,
1921
1922
1922
$3,786
$4.4494
London ........................ ............. $4.3961
.0816
.0908
Paris ........................... ....................0851
.0807
.0828
Antwerp ...................... ................... 0815
.1737
.2130
Copenhagen ................ ....................2130
.2249
.2571
Stockholm .................. ....................2553
.1337
.1578
Madrid ........................ ....................1552
.3335
.3878
Amsterdam.................. ....................3843
.6960
.8288
Buenos Aires ............. ....................8078
.6765
.8107
Shanghai ..................... ....................7865
.1702
.1912
Berne ........................... ....................1891
.0507
.0511
M ila n ........................... ................... 0482
.0144
.003355
B erlin ........................... ....................003022
.0021
.000104
Vienna ......................... ....................000069
X
* -------------------
'******f92i
JO
40
X
ANY
JO
- - -
.....................
12
*****••*•—
Jon Feb Mar Apr May June July Au$ Sep Oct Nov Dec
0
gains have been lost, however, and on June 19 prac
tically all European exchanges were considerably
lower than they were a month previous. Exchange
on Vienna and the eastern European financial centers
has been especially weak following the closing of the
Vienna Bourse. And French, Belgian and Italian
R E T A IL T R A D E
The improvement in general business and the con
sequent decrease in unemployment are beginning t0
have their effect on the buying in retail stores. Not
RETAIL TRADE
C o m p a r is o n
May, 1922,
with
May, 1921
A ll re p o r tin g firm s ( 1 0 0 ) ..............
F irm s in— P h i l a d e l p h i a ........................
— C h e s t e r ..................................
—H a r r is b u r g ...................
—L a n c a s t e r ......................
— T r e n t o n .........................
—W ilm in g t o n ..................
-1 %
1 -4 “
— 6.8 “
— .6 “
— 6.8 “
-f- .7 “
4 9.2 “
—All other cities.................
4
4
of
N et
S ales
Jan. 1 to
May 31, 1922,
with
Jan. 1 to
May 31, 1921
C o m p a r is o n
May 31, 1922,
with
May 31, 1921
S tocks
of
May 31, 1922,
with
Apr. 30, 1922
— 1 .5 %
— 1.1 “
— 1 .5 “
— 6.0 “
4 3.1 “
+ 2.5 “
— 19.0 “
— 4.8 “
— 5 .7 %
— 4.3 “
— 24.7 “
— .9 “
— 1 0 .7 “
— 3.0 “
— 7.4 “
— 10.2 “
—
.7 “
All department stores......................
Department stores in Phila..............
Department stores outside Phila___
— .2“
4 2.6 “
— 4.8 “
— 5.7 “
— 3.8 “
— 9.0 “
4
-1“
—
4-
All apparel stores.............................
Men’s apparel stores—
—in Phila.............................
—outside Phila.....................
Women’s apparel stores—
—in Phila.............................
—outside Phila.....................
-
4.4 “
— 9.6 “
-
-6“
.9“
7.5 “
4 3.9 “
— 3.2 “
— .8“
—13.3 “
—
+
.1“
.7“
— 5.8 “
— 1 0 .8 “
—15.6 “
—11.2“
—11.1“
+
4-22.6“
— 6.6
Credit houses ...................................
* Times per year, based on cumulative period.
— 2 .7 %
— 2.8 “
—
.5 “
+ 1 .7 “
— .5 “
— 2.0 “
4 -8 “
— 4.0 “
— 1.8“
— 1.4“
— 2.5 “
— 6.2 “
4
1 -6 “
R ate of T u rn over*
Jan. 1 to
May 31, 1922
3.1
3.6
P
ercen
tage of
Orders outstand
ing May 31,
1922, to
Total purchases
in 1921
6 .1 %
t>2
.9
2.9
2.5
2.6
1.7
2.4
3.0
3.4
2.5
3.6
10.8 “
3 -2 “
5.3“
7.1“
7.5
5.5“
3.0“
3.0
14
13.5“
5.4
2.3 “
...
“
— 5.0“
4 9.8 “
8
-
2.5“
2J
2.8 “
that money is being spent lavishly, but that every
day necessities are being purchased more freely.
Merchandise of the very highest and lowest grades
*s not selling to good advantage; the demand is for
medium priced articles. Men’s and women’s sea
sonable apparel is being bought, but very carefully,
and only after the value has been tested by inspection
of stock in a number of stores. Increase in the
number of new homes is expected to be reflected later
in heavy purchases of furniture, floor coverings and
other household articles, but as most of the new
dwellings will not be completed until late summer or
early autumn, this buying will not begin much before
August.
Prices have been stable, and it is estimated that
about 80 per cent of the number of articles handled
Jn department stores have ceased to decline. In many
^stances quotations have advanced. This hardenlng of prices is generally attributable to the advance
ln raw materials.
Purchases by stores for fall trade are heavier than
they were at this period last year, and although not
normal, indicate greater confidence in the future.
The table on page 8 shows that retail trade during
May in the Third Federal Reserve District was
-1 per cent larger than in May, 19 21.
In comparison with the totals both of the previous
month this year and of the same month a year ago,
wholesale drug sales during May showed a decided
increase. As reported by 16 firms, May sales were
6.3 per cent heavier than those of April, and 8.4 per
cent heavier than those of May, 19 21. These figures
refer to the value in dollars, and as drug prices have
declined since last year, the actual quantities sold
have increased even more. Yet, in spite of the satis
factory nature of May business, many wholesalers
are of opinion that since June 1, the demand has
weakened. It still compares favorably, however, with
the demand a year ago, and as yet the falling off has
not been sufficient to influence prices.
Wholesalers refuse to make concessions on account
of small fluctuations in demand, because they believe
that the supplies which they now hold have enough
intrinsic value to justify the current prices. Present
stocks are becoming lighter, and are perhaps a little
below normal.
Another favorable indication in the May reports
was the further decline from last month of 2.1 per
cent in the ratio of accounts outstanding to sales,
and a decrease of .6 per cent in comparison with the
same ratio for June, 19 21.
W H O LESA LE TRAD E
W holesale D ry Goods
Of the four reporting wholesale lines, all except
drugs have showed a steady improvement in demand
during the first three weeks of June. In dry goods,
sales in May were slightly less than those in April,
but in the other lines, appreciable gains were made.
Nearly all retailers, however, continue to buy cau
tiously, for they are both uncertain of the strength
°t the consumer demand, and fearful of possible
eductions in manufacturers’ prices. It is reported
that wholesale stocks are gradually decreasing.
Arices in all lines have remained fairly stable, and
5Veu in cases where striking advances have occurred
ln quotations on raw materials, the question whether
0r not the prices of the finished goods can be raised
^dl depend upon the attitude of the ultimate con
sumer.
In spite of the fact that the sales of dry goods in
May were only .4 per cent less than in April, the com
parison with May, 19 2 1, was disappointing, the de
crease being 17.8 per cent. This difference is prob
ably to be accounted for, in part, by the injurious
effect of the coal strike upon wholesale business in
this district. Many retailers located in the coal
districts are purchasing only from 25 to 50 per cent
of their normal requirements. Outside of the coal
regions, however, the demand has improved since
last month, and although ribbons and broad silks sell
very slowly, many other lines, especially tissues,
organdies, and ratines, are moving rapidly. This
quickening of demand has resulted perhaps from the
expanding purchasing power which has accompanied
the decrease in unemployment. Sales of wash goods,
W holesale D rugs
CONDITION OF W HOLESALE TRADE DURING MAY, 1922
Percentage of Increase or Decrease in
Accounts Outstanding
Net Sales
May, 1922, compared
May, 1922, compared
with
with
April, 1922
May, 1921
May, 1921
April, 1922
5rugs...............................
p y goods ............................
groceries . . .
.............
hardware .............................
dumber of reporting firm*.
(IS)*
(15)*
(50)*
(27)*
+ 8.4%
— 17.8 “
— 2.4 “
+ 9.0 “
+ 6.3%
— .4“
+17.4 “
+ 4.1 “
9
2 .1%
— 7.2 “
+ 4.0 “
+ 1 .2 “
—
—
.6 %
— 9.8 “
+ 1.4 “
— 1 .6 “
Ratio o f Accounts
Outstanding to Sales
May, 1922
124.7%
272.7 “
103.5 “
151.9 “
although still unsatisfactory, have been somewhat
stimulated by favorable weather.
Stocks held by wholesalers are low and have de
creased since last month. Retailers’ stocks are also
diminishing, because of cautious buying.
Failures and protested checks continue to be re
ported, and in some cases collections are somewhat
slower. Nevertheless, as compared with that of
April, the May ratio of accounts outstanding to
sales was 7.2 lower, and 9.8 per cent less than the
ratio for May of last year.
W holesale Groceries
The wholesale grocery trade has shown a gradual
improvement throughout the last month. May sales
increased 16.5 per cent over those of April, and were
only 3.2 per cent less than in May, 19 21. This increase
becomes more significant when it is remembered that
the general level of prices has been falling and that
the summer season is a dull one in the wholesale
grocery trade.
There is little buying for future delivery, though
orders are being placed for certain of the better grades
of canned goods and general staples. Wholesalers
report that those retailers who are ordering ahead are
exercising the greatest care in their selections.
Reports of stocks on hand are very conflicting, the
number of firms reporting reductions since May,
19 2 1, being practically the same as those who report
increases. The policy in this regard seems to vary
with the firm. Stocks held are low througout the
trade, and wholesalers seem to feel that the same
condition prevails in the retail trade. In the coal
mining regions business is reported especially slow
and stocks small.
Prices, with the exception of sugar, have shown
relatively little change within the past month. The
price of refined sugar has advanced from 5.40 cents
on May 10 to 6 cents on June 17. Stocks of sugar
held by jobbers have become quite low, and the
slightest concessions bring brisk buying. Moreover,
the seasonal demand is showing a decided increase,
and this tends to raise prices. Large purchases by
Europe, particularly Great Britain and France, have
decreased the Cuban stocks, and this fact, together
with the re-entry of American canners and preservers
into the market, accounts for the rise in price. Prices
of both dried and canned beans, of coffee, sugar
syrups, and dried fruits have risen slightly during the
month. Quotations on certain of the better grades
of canned fruits have also advanced, but canned
vegetables have declined.
Collections are fair and improving, except in the
coal mining districts, where they are becoming
slower.
W holesale H ardware
In the wholesale hardware trade conditions con
tinued to improve during May. Both net sales and
accounts outstanding were greater in value than they
were in April. Accounts outstanding showed only
a slight increase, and though they were slightly less
than in May of last year, sales were over 8 per cent
larger. Thus, in spite of much lower values this year,
business in the wholesale hardware trade has been
considerably better than last. Indeed, in view of the
price decline, the physical volume of sales is much
greater. The accompanying table shows the con
dition of the wholesale hardware trade in May as
compared with April and with May, 19 21.
Reports indicate that business has continued 111
good volume during June. Sales of hardware in the
coal-mining districts are, of course, considerably
lessened by the strike. During the past month, country
merchants have made increased purchases of farm
supplies, paints and building hardware. Automobile
accessories, fishing tackle and sporting goods are also
in increased seasonal demand. But purchasing con
tinues to be in small amounts and for immediate de
livery. Prices are firm in most instances, although
some advances have been made on nails, steel goods,
and pipe.
Collections have shown some improvement but
are still reported as being only fair.
IR O N A N D S T E E L
Steady improvement in nearly all branches of the
iron and steel industry is still evident in this district.
Although the coal strike has embarrassed some pro'
ducers, and the reduction of freight rates has in
some instances deterred buying, betterment has been
fairly continuous and widespread. Hesitancy has
again developed among buyers as regards future con
tracts for distant delivery, and producers likewise are
reluctant to accept contracts too far ahead, because
of the uncertainty of future fuel costs. Consumers
are pressing for immediate delivery wherever poss1'
ble. Coke, both furnace and foundry grades, lS
scarce, and a few producers have been forced to close
down or curtail operations on account of the shortage
and high cost of this material. Even those pr0'
ducers that use steam sizes of anthracite, in some
instances report difficulty in obtaining this fuel
sufficient quantities. Other raw materials, in general,
are easily obtainable, but at advanced prices.
One problem facing many producers, which may
Well prove to be a serious one, is that of obtaining
sufficient labor. Not only has unemployment ceased
to be a feature in this industry, but many firms are
experiencing great difficulty in securing skilled
mechanics. Even unskilled labor is scarce in some
localities, although higher wages have frequently
been offered. In nearly all instances plants have in
creased their working forces since last month and are
employing larger numbers than they did last year.
Improved demand has been reflected in widespread
expansion of operations. Although there are, of
course, some exceptions to the general trend, most
firms report an increase since last month and a very
marked betterment as compared with the same month
°f 1921. A few plants report capacity output at the
Present time, but the general average is probably not
above 60 per cent of maximum.
Blast furnace activity in this district has remained
approximately the same during the past month, and
sfill lags considerably behind that in other sections.
The best demand for pig iron is coming from manu
facturers of cast-iron pipe and building-trade sup
plies, but there is a good demand from steel manu
facturers, and for foundry iron from jobbing foundries- Stocks of the latter material are now very low,
as a large share of the tonnage delivered last month
bas been from stock. Manufacturers producing
parts for automobiles and trucks are especially active,
and demand for structural shapes is better than it has
been at any time during the present year. Railroads
and public utilities are still doing the bulk of the
Purchasing of structural steel, but there has been
s°me recession in the purchasing by the railroads in
fbe past month. Naturally, firms manufacturing coalUiming machinery and supplies have experienced a
Material falling off in business since the commencerrient of the strike. And export demand is still very
P°°r, as price competition from European producers
*s still almost prohibitive in the export market. Most
uyers are specifying immediate delivery.
^lthough the price trend is still definitely upward
° n iron and steel products, advances have been less
jP'unounced during the past month than previously.
Pe blast furnace company, which is well supplied
" lt;h business for the third quarter of the year, is
asking $26 for No. 2 plain, $27 for No. 2 X, and
J 29 for No. 1 X. But in most cases prices are still
/ 0rn $24.50 to $25.00 for No. 2 plain, from $25 to
26 for No. 2 X, and from $25.50 to $26.50 for No.
1 X. Plates, shapes, and bars are now established
at 1.70 cents, Pittsburgh, although 1.60 cents is
quoted when deliveries are at mill convenience.
Sheets are still quoted at 3.15 cents for black, 4.15
cents for galvanized, and 2.40 cents for blue annealed.
Nails and wire products are practically unchanged in
price.
In spite of the coal strike there was a greater gain
in production of pig iron during May than in April.
During the month there was a net gain of thirteen
furnaces in blast, and production amounted to 2,306,679 gross tons, or 74,409 tons per day, as compared
with 2 ,0 72 ,114 tons, or 69,070 tons per day, in April.
The output in May was the largest of any month
since January, 19 2 1, and contrasts with only 27,889
tons in August of last year. Production of steel
ingots also showed a similar increase during May.
Output by thirty companies producing 87 per cent
of the country’s total amounted to 2 ,7 11 ,1 4 1 tons,
according to a report of the American Iron and Steel
Institute. This is an increase of 266,628 tons over
the total for the preceding month, and is in contrast
with a low output of only 803,376 tons in July, 19 2 1.
Unfilled tonnage on the books of the United States
Steel Corporation also increased, despite the high
rate of activity maintained by steel producers during
May and a falling off in railroad purchasing. Un
filled orders on May 3 1 amounted to 5,254,228 tons,
as compared with 5,096,917 tons on April 30, and
5,482,487 tons on May 3 1, 19 21.
S H IP B U IL D IN G
Shipping and the shipbuilding industry are still
at a very low ebb, as compared with their prosperity
during the war and the post-war period. Both at
home and abroad, however, the volume of ocean trade
is increasing, and idle shipping space is again being
utilized. Exports of the United States have in
creased from $279,000,000 in January to $308,000,000 in May of this year, and in the same period
imports have increased from $217,000,000 to $254,000,000. The Port of Philadelphia has shared in
this revival. During May, arrivals and sailings of
vessels engaged in foreign trade numbered 337, with
a gross tonnage of 1,499,526— the largest total in
over a year. In the coastwise trade 537 arrivals and
sailings were recorded, which is a gain of 193 vessels
over the total for the same month in 19 21.
Improvement in shipping has been reflected in some
betterment in the shipbuilding industry, but this has
been slight. There is still only a very small amount
11
of new construction under way and few new orders
being placed in the Delaware River yards, but there
has been a noticeable increase in inquiries. The
volume of repair work in local yards has shown but
little change during the past year. In the absence of
orders for ship construction, local companies are en
gaging in general engineering work and, in one in
stance, in the manufacture of steel railroad passenger
cars. But only a fraction of capacity— from 5 to 30
per cent— is being utilized at the present time.
In spite of curtailed operations, however, the posi
tion of the industry is much better than it was last
year. Stocks of raw materials, which were exceed
ingly heavy when the depression arrived, have been
greatly reduced, and raw materials are now available
at a fraction of their cost during the post-war period.
Moreover, wages have been lowered from 30 to 50
per cent from the high levels prevailing after the war.
Thus, construction of ships at the present time is
possible at less than half the cost of a year or two ago.
B U IL D IN G
Both in number and value the building permits is
sued during May in the fourteen cities of the Third
Federal Reserve District showed a natural seasonal
decline from the totals of the two preceding months.
Even so, however, the total for the month— $13 ,844,813— was over twice as large as that for May,
19 2 1. For the first five months of the present year,
the total value of permits issued exceeded that of the
same period of last year by more than 160 per cent.
The accompanying table gives the building permits
issued in the fourteen principal cities of the district,
and their estimated cost, during the present year as
compared with 1921.
'Activity in construction has continued during the
past month. Building has been especially extensive
in Atlantic City and in Philadelphia and its suburbs.
Many building workers have been attracted to Atlan
tic City from Philadelphia, with the result that a
shortage of skilled workmen has occurred here.
Manufacturers of building materials report a large
and increasing demand, and prices have advanced
considerably on many items in the past two months.
B uilding B ricks
The great improvement which has been noted in
the brick industry during the last two months has
continued, and the volume of orders is still increas
ing. Manufacturers have disposed of practically all
of the stocks they had accumulated during the win
ter and are now seeking means of increasing their
output. Philadelphia, always one of the great
brick-manufacturing centers, is experiencing a short
age. Stocks are thoroughly depleted, and builders
are forced to depend on present production to sup
ply their demands. There is some complaint among
manufacturers, however, that they have difficulty m
disposing of their better grades of bricks, builders
seeming to prefer for the bulk of their work the
cheapest grades obtainable.
The decrease in freight rates has not made itself
felt as yet, but if the demand continues as heavy as
at present, it will be only a short time before up
state plants will be able, at the reduced rates, to sell
profitably in the city. Brick manufacturers report
that although they are anxious to keep prices at the
present level in order to avoid any reduction of build
ing operations, they have found it necessary to make
increases of from one to two dollars a thousand be
cause of the price of coal.
Labor is becoming scarcer, and one manufacturer
reports two wage increases within the last month and
BUILDING PERM ITS ISSUED AND THEIR ESTIM ATED COST
Allentown ........................ ................
Altoona ........................... ................
Atlantic City .................... ................
Camden ............................. ................
Harrisburg ....................... ...............
Lancaster .......................... ...............
Philadelphia..................... ................
Reading ............................ ...............
Scranton ........................... ................
Trenton ............................. ................
N ber
um
98
313
413
124
94
87
1,483
361
188
168
1922
E cost
st.
$397,900
424,296
943,114
184,016
319,075
157,195
8,872,050
532,400
619,052
651,294
M
ay
1921
Nm
u ber
E cost
st.
72
$255,450
305
172,888
267
111,674
86
166,908
49
223,555
67
124,399
1,430
3,569,890
312
367,750
77
131,545
145
645,631
Nm
u ber
400
870
1,676
459
429
398
5,752
1,457
557
W ilkes-B arre..................... .................
Williamsport ...................... .................
W ilm ington........................ .................
York ................................... .................
179
148
118
217
269,058
190,404
163,118
121,841
95
54
94
134
140,318
89,414
146,481
98,889
619
621
466
397
610
Total ............................... .................
3,991
$13,844,813
3,187
$6,244,792
14,711
ay
J uary to M , inclusive
an
1922
N ber "" E CA
um
st. C
E cost
st.
$560,4^
293
$1,268,175
602,503
779
1,087,802
1,209,809
897
4,058^86
840,039
364
1,908,476
807,050
229
1,639,455
392,463
270
986,695
12,029,615
39,238,425
5,016
94^,423
2,210,471
1,330
o0
n
839^^9
278
1,318,783
1,797,862
1,706,693
1,774,965
907,000
1,613,793
418,447
618
349
214
406
506
735,301
952.227
548,1^
491,69°
$60,137,466
11,549
$22,751,727
a half. Unskilled labor is now getting forty cents
an hour in some plants.
It is of interest to note that in both the brick and
paint industries national advertising campaigns have
been launched by the trade associations of these par
ticular industries in an effort to stabilize and in
crease the demand for their respective products. It
too early to secure definite information concernnig results, but the feeling in both industries is that
the new campaign is proving successful.
Collections show marked improvement and are
now reported to be satisfactory.
L umber
May was the best month that the lumber industry
has had since 1920, and, although there are evidences
that the peak has been reached, business continues at
Practically the same rate. Manufacturers, wholesalers, and retailers are all feeling the betterment.
The largest part of the demand is still for structural
lumber, but industrial users are also entering the
market again, particularly manufacturers of auto
mobiles. Furniture makers are not yet buying achvely. For these reasons, the soft woods, particularly the cheaper and medium grades of pine, which
£0 into the early stages of construction, have felt
greater improvement than the hard woods. The bet
ter grades of the latter, however, are moving more
^mely, but the poorer grades are still relatively inactive. As compared with last June, all lines have
^elt marked improvement.
Builders are now placing orders for sufficient
lumber to cover their operations. One retailer reP°rts that although the number of new orders re£eived has fallen off since early in May, those already
D
°°ked will assure him a large volume of deliveries
umil August. Some dealers, however, report that
Practically all of their business is for immediate delvery. Manufacturers show an inclination to refuse
utuTe orders, because of the trend of prices upward.
Most lumber mills are being operated at capacity
wherever possible, but floods in the South have made
necessary a material curtailment in production this
spring. Output for several weeks has been well bevv both orders and shipments, and the large stocks
la early in the season are being rapidly depleted.
ne yards also are disposing of their reserves, and
SllPplies of dry lumber are said to be light. Deal?Fs are, as a rule, building up their stocks of new
• ^ber.
js rep0rted that certain items are becomlng more difficult to obtain. Mills still have a sur
plus of the low grades of hardwood and are making
every effort to produce as little of these as possible.
Prices are steadily advancing under the impetus of
improved demand and diminishing stocks. In
creases of from 10 to 20 per cent have been made
within the last 60 days, the largest advances occur
ring in construction lumber, such as yellow pine
flooring. Quotations on maple and ash have also
risen, because of better demand from automobile
manufacturers. Fear is expressed in some quarters
that rising prices will be harmful to the lumber busi
ness by causing a curtailment in demand, and one
dealer reports that he is now buying less than he was
before the advances occurred. Freight rates have
long been named by lumber interests as a chief cause
of high prices, but it is now generally believed by the
trade that prospective reductions in this item of ex
pense will not be reflected in prices, because of the
present upward trend of the market.
Collections have improved somewhat, and in the
majority of instances are considered to be good.
Glass
The glass industry, except in those branches that
manufacture industrial glass, is doing a good busi-
13
ness. Orders are increasing, and both manufactur
ers and dealers report that the demand is excellent.
Many builders, contractors and glaziers who have
been holding off in anticipation of a further decline
in price, now find their buildings nearing comple
tion, and in the face of a firm and increasing market
are hastening to cover their needs at present prices.
The demand is very largely for glass for houses,
offices, schools and hotels. All the firms interviewed
report a much better business than at any time dur
ing the last two months, and two large houses find
their sales to be twice as heavy, in tonnage, as they
were a year ago.
An interesting situation has developed in the plate
glass trade. The revival of the automobile industry
has been such as to create a demand from that source
which bids fair to offer severe competition to other
classes of consumers, and may actually cause a short
age. The largest manufacturer of automobiles is
said to be in the market for approximately fifteen
million square feet, and others will consume ten mil
lion more. This represents a demand from this sin
gle industry equal to almost one half of last year’s
output of fifty-three million square feet. This year,
however, production will be close to seventy-five mil
lion square feet. In response to the unusual de
mand, prices have advanced approximately 14 per
cent within the last week, and some manufacturers
are reported as taking orders for future delivery
only upon the understanding that they will receive
the price current on the date of delivery.
Till quite recently there has been only a limited
demand for wire and other forms of industrial glass.
Wire glass factories are running at about eighty per
cent of capacity and report that they are selling one
half of their product and putting the rest into stock.
Window and plate gl^ss factories report full opera
tion.
Stocks in the hands of jobbers, though still high,
are rapidly becoming smaller. Collections have im
proved and are described as being from fair to good.
P aint
The improvement noted in the paint industry dur
ing the month of May has continued during June.
Manufacturers of both ready mixed paint and white
lead report increasing orders. The larger portion
of the demand, however, is for repainting, and it is
only within the last few weeks that the demand for
paint to be used on new construction has made itself
felt in the trade. Manufacturers report increased
shipments to the coal mining districts, which they ac
P r ic e T
rend
OF THE
Do l l a r s
P r in c ip a l I n g r e d ie n t s
o f
P a in t
Do l l a r s
PER
PER
G a llo n w
Po u n d
G a llo n o r
Round
500
$00
K
J N S E ED Oil
P E R lALLON
*V
j ’
1.00
i
\
(Kfi
J
r’"
50
\
\ r
\
f
- '~ j
1.00
V fA /1
O V
V
A 1
A . y VJ
.50
T u s f E N T I NE
PEG
GALLO N
W h i T E LE: a d
r*
10
f
05
Pi R
Pour
r
0
J/ --------V
.10
U -N --
r'
--------- V J \ j
05
.01
01
1914 1915 1916 1917 1915
1919
1920 1921 1922 1923
count for by the fact that the men are taking a d v a n
tage of their enforced idleness to paint their homes.
Good as was the demand at this time last year, it lS
better today, and most manufacturers report an mcrease of sales amounting to from 15 to 30 per cent
over those of the same period a year ago. Industrial
demand alone shows relatively little improvement
since last month. Factories using paints in their
manufacturing processes are still buying as sparing!)
as possible, and the railroads have not as yet entered
the market.
With two exceptions manufacturers report that
they are operating on full time. Stocks which had
been built up during the winter have been very
largely disposed of.
There has been no change in the price of ready
mixed paint. Both pig lead and white lead in oilhowever, have increased during the last month, an
in both instances by about one quarter of a cent a
pound. Pig lead has increased 23 per cent in pnce
since January, and white lead in oil, 2 per cent
Turpentine during the same period has advanced 1
per cent in value. Linseed oil has been subject to
violent fluctuations, and the price at this time
cents) represents a decrease of 4.5 per cent since
January. Manufacturers say that they are making
an effort to hold prices to present levels and will ad
vance them only as fast as they are compelled to do
so by increases in the price of raw materials.
Collections are becoming better and are reported in
most instances as being satisfactory.
COAL
A nthracite
Stagnation still prevails in the retail market for
domestic sizes of anthracite. The continuance of the
strike, however, has frightened some consumers who
had delayed purchasing in the expectation of lower
prices next fall, and a few have placed orders for part
° f next winter’s requirements. But dealers’ stocks of
domestic sizes are nearly exhausted, and there is little
activity of any kind in the retail trade.
In the steam market, however, buckwheat is in
noticeably stronger demand as a result of the in
creasing scarcity of bituminous coal. Prices on
buckwheat have advanced during the past month,
and most sales are now being made at $3-75 or $4
Per ton, and occasionally at $4.25.
Production in the anthracite district is still at a
standstill, and no coal is being mined. A few thou
sand tons of fine sizes are being dredged from the
Hvers weekly, and operators handling this product
are finding a ready market for it because of the
growing industrial demand for steam coal. But the
total amount dredged from rivers during the first
ten weeks of the present coal year was only 76,000
tons, an almost negligible quantity. Thus, in spite
° f the fact that the anthracite working year is well
a(Ivanced, output is over 17,000,000 tons less than
that of the corresponding period last year. Hence,
jt !s apparent that should the strike continue much
0nger, a stringency of supply may develop next fall.
At the present time, there is little prospect of an
curly settlement of the strike. The representatives of
*he miners refuse to accept the operators’ demands for
a decrease in wages, and they have also declined the
°Pcrators’ suggestion that differences be settled by
an arbitration board to be appointed by the Presienh Negotiations between the two groups have
cased, and a deadlock exists. Many mine workers
ave left the anthracite district, and banks report a
°nsiderable reduction in savings deposits since the
commencement of the strike.
on bituminous coal. Following Secretary Hoover’s
first conference with the soft coal operators, in the
latter part of May, the rapid advance in prices which
had occurred during that month was abruptly halted,
and quotations on most grades declined from 50
cents to $ 1 per ton. This fall in prices, however, is
attributable in part at least to a falling off in de
mand, as market prices in general have been some
what below the maximum level agreed upon at the
conferences. Buyers have exhibited less anxiety
since the conferences were held, and the announce
ment of the reduction in freight rates effective July
1 has also been a deterrent to purchasing. Increas
ing production in non-union fields is another factor
that has strengthened the position of purchasers.
During the last few days, however, demand has
again improved and prices have moved upward, but
not above the maximum levels voluntarily estab
lished. Present quotations in nearly all districts are
from $3 to $4 per ton at the mine, although a few
grades have sold above the latter figure. The Coal
A ge average of spot prices stood at $3.3 1 on June
19, as compared with $3.08 on June 5, and $2.05 be
fore the commencement of the strike. The accom
panying chart shows the fluctuations in this index
B ituminous
The third month of the coal strike has witnessed
Pher increases in production and lower quotations
15
of soft coal prices during the period from January,
19 13 , to June, 1922.
Production of bituminous passed the 5,000,000
ton mark, for the first time since the commencement
of the strike, in the week ending June 10. A s seen
in the accompanying table, giving weekly output of
bituminous coal during the first ten weeks of the
strike, production has shown an almost unbroken
increase since April 22. This has been due largely
to increased output in many non-union districts
which suffered from strikes during April and May.
In the Westmoreland district, for instance, loss due
to strikes has declined from 35.6 per cent of the
maximum possible output in the week ending April
29, to only 8 per cent in the week ending June 10.
The Somerset County field of Pennsylvania, another
non-union district, lost 56 per cent of its total operat
ing time on account of strikes in the week ending
May 6, and only 34.4 per cent in the week ending
May 27. The decline in the week ending June 3 was
due to the observation of Memorial Day.
Although no accurate measure of coal stocks has
been made recently, it is evident that they have been
reduced by at least one-half since April 1. Current
consumption is from 3,000,000 to 4,000,000 tons in
excess of weekly production, which necessitates a
considerable drain upon consumers’ reserves. Many
local consumers, however, report that they still have
several weeks’ supply on hand.
PRODUCTION OF BITUMINOUS COAL
(Weekly output during first ten weeks o f strike)
Week ending
Tons
April 8 ...
“
15...
3.835.000
3.656.000
3.575.000
4.175.000
4.164.000
4.433.000
4.481.000
4.889.000
4.616.000
5.134.000
“
22...
“
May
“
“
“
June
2 9 ...
6 ...
13...
20 . . .
2 7 ...
3 .. .
“
10.. .
C oke
Beehive coke is still in scant supply, in spite of
heavier production during the past month. Weekly
output has increased considerably since the first few
weeks of April, and is* now established at about
100,000 tons; but this is insufficient to meet the de
mands of iron and steel manufacturers, and existing
supplies are fast disappearing. Indeed, the spot
market has been almost non-existent of late, and
current quotations— $7 and $7.50— for furnace and
foundry are only nominal. But few future contracts
are being made by producers, owing to uncertainty as
to the future prices of coal. This scarcity of coke and
the inability to place contracts has prevented many
operators from blowing-in their furnaces, as it would
be extremely hazardous to attempt to operate with
only the spot market to depend upon. Many steel
manufacturers have been forced to rely largely upon
by-product ovens for their coke, and some are de
pendent upon them entirely. Hence, consumption
of by-product coke has greatly increased, and u1
some localities the heavy supplies which existed p n °r
to the strike have been nearly depleted.
By-product ovens have maintained a high rate of
activity in spite of the coal strike. Indeed, for sev
eral years now, the output of this product has far ex
ceeded that of beehive coke, as is shown by the ac
companying chart giving production of beehive and
by-product coke since 19 17.
CO TTO N
R aw
C otton
The price has been the center of interest in the raw
cotton market during the past month, because of its
phenomenal advance. Although some setbacks have
accompanied it, the rise has been fairly continuous
16
Although it is the world’s supply which influences
price, accurate data can be obtained only for that
part of it grown in the United States. As indicated
by chart No. i, our own production has been high
in comparison with the total crop, for in 1920 we
produced 68.4 per cent of the world’s cotton. There
fore the following figures, compiled by the New York
Cotton Exchange on June 9, showing the supply and
world’s consumption of the American crop of 19 2 11922, may be taken as a good indication of the cotton
situation over the world as a whole.
SUPPLY AND TAKINGS OF AM ERICAN COTTON
Season of
1921-1922
(bales)
Season of
1920-1921
(bales)
Season of
1919-1920
(bales)
Visible supply, American,
at end o f previous sea
son (July 3 1 )................. 4,112,651
Crop in sight, American, to
June 23 of each season.. 10,222,957
2,943,882
3,213,937
10,845,869
11,813,713
13,789,751
15,027,650
4,510,848
3,397,502
9,278,903
11,630,148
Total ........................ 14,335,608
Visible supply, American,
on June 23 of each sea
son .................................. 2,681,912
W orld’s takings of Ameri
can to June 23 of each
season ............................. 11,653,696
and at times very rapid. The general belief in a
cotton shortage, as a result of late planting, floods in
Texas, rainy weather, and the widespread appearance
° f the boll weevil in a year when it may be especially
destructive because the cotton plant had a late start,
caused a bullish sentiment, which has constantly
forced the market upward. Between April 21 and
June 23, spot cotton in New York rose 4.15 cents
a pound, and in the same length of time, October cot
ton increased from 17.58 to 2 1.70 per pound. Not
0rdy is it of interest to note the gain over the whole
Period, but also the sharp rise in the four days precedlng June 10, when the price jumped 1.95 cents a
Pound, or $9.75 a bale.
New York quotations for middling upland cotton
° n June 9 of each year have been as follows:
1912. -.11.65 cents
1913. -.12.75 “
1914 -.13.65 “
1915.! - - 9.65 “
1916..
1917..
1918..
1919..
..12.85 cents
..23.80 “
..30.05 “
..32.75 “
1920.. . .40.00 cents
1921.. ..12.70 “
1922.. ..22.55 “
As shown by the table above, this year’s price,
.though much lower than the war-time quotations,
about 75 per cent higher than last year’s price,
f he present advancing trend is the result of the conlct between a decreasing supply and an increasing
demand.
For the same reason, estimates regarding the prob
able yield of the crop now planted in the United
States are also of importance. On May 25, the con
dition of the present crop was reported by the De
partment of Agriculture to be 69.6 per cent of
“ normal.” In chart No. 2, which compares the
estimated condition and acreage on May 25- of each
year with the yield when the crop was picked, the
figure for the acreage planted this year has been taken
from the Journal of Commerce, since the government
estimate will not be announced until July. It will be
seen that there has been a striking correlation between
the acreage and the yield in I9 I 5> I92°> and I92 1 *
How large this year’s production will be can be pre
dicted only after considering both the increase in
acreage and the condition of the cotton.
The sufficiency of the cotton now being grown plus
the carryover from last season depends not only on
the quantity produced this season, but on the domes
tic and foreign consumption. In this country there
has been a lively demand, both speculative and com
mercial, and it is significant that the mill takings of
the last ten months have been about 23 per cent
greater than for the same period of last season. Of
the cotton used in the United States, the southern
17
Liverpool and Bremen are not increasing but are
being forwarded to spinners.
Cotton Goods
The rapid advance in the price of raw cotton has
strengthened the cloth market; but after a period of
activity as a result of this stimulation, trading has
again become more quiet. Those goods which were
most affected by the rise in the raw material were the
heavy unfinished goods, in which the cost of the cot
ton is large in proportion to the other expenses of
production. Thus, although converters and printers
made considerable purchases of gray goods, it is only
natural that the effect of the advance in the raw
material should have been less quickly felt in the
fine finished goods. Of the latter, however, voiles
and lawns are in some request. Also, after a period
of extreme dulness, the demand for both towels and
upholstery coverings has slightly improved; but
for sheets, pillow cases and ginghams it is light.
In spite of the quietness which is again evident,
the volume of sales from May io to June io ex
ceeded that of the previous month, and the business
transacted was quite satisfactory. Mail orders were
mills have been consuming about 70 per cent, but
now the New England mills are buying more heavily.
The May consumption of 496,000 bales was larger
than that for April by 50,000 bales, and the weekly
consumption rate has been constantly increasing.
The average total weekly consumption for the current
season has been about 240,000 bales, almost equally
divided between domestic takings and exports; and
if consumption continued until August at this average
rate, the present visible supply would be almost de
pleted.
Not only has our domestic consumption been in
creasing, but also our exports. Exports to both
England and Germany, as shown by chart No. 3,
have been rising during April and May, and foreign
spinners fear a shortage. Excepting the United States,
the largest consumers of American cotton are Eng
land, Japan and Germany, and the latter also handles
cotton destined for Czecho-Slovakia, Austria, Poland
and Finland. For the half year ending January 3 1,
1922, the total world consumption of American cot
ton was estimated at 5,803,626 bales, and the revival
of exportation to England and Germany indicates
that consumption during the remainder of the year
may be just as heavy, because the stocks kept at
18
increased by the rise in raw cotton, but the majority
of the orders from all sources were for immediate
delivery.
Notwithstanding a quiet demand, cloth prices
generally have strengthened during the month, and
are now firm at the new levels. As shown by the
chart No. 4, the relative increases were not as
great here as in the raw material. The advance
affected cotton goods of nearly every description
with the exception of towels, plushes, and a few
staple goods. In these lines the demand was too
light to stand an increase in price, and manufacurers
state that the prices of some finished goods, such as
ginghams and printed percales, are very low in com
parison with the costs of production.
With the exception of the plush mills, which are
operating at about 60 per cent, the cotton goods
production is 85 per cent of capacity. It is worthy
° f note that unemployment is apparently decreasing,
because calls for men no longer bring a quick
response of good applicants.
Although there are conflicting estimates regarding
the size of the stocks in the hands of manufacturers,
they are generally reported to be normal. However,
stocks of towels are heavy, and distributors hold
large quantities of draperies and ginghams.
Although in the cotton trade there have been some
failures, collections are fair, and in several cases the
number of delinquent firms is reported to be smaller.
W OOL
W oolen and W orsted Goods
Although business in worsted goods continues to
be poor in the extreme, sales of woolens for women’s
wear, especially for pile fabrics and fancy-back cloak
ings, have somewhat improved. But in men’s wear,
the fact that fall commitments have already been
made, and the further fact that repeat orders are
being checked by advancing prices, have caused
activity to decrease. What worsted business exists
is in either fancy goods or “ tropicals” for summer
wear, and whether this month has been more or less
active than the preceding has been determined for the
manufacturer of worsteds largely by his type of
product. All reports agree, however, that sales of
worsteds are at least 75 per cent lower than they were
at this time last year. The majority of the orders
are for immediate delivery.
The striking difference in demand between woolens
and worsteds has been reflected in the productivity of
the mills. Though the activity in the woolen trade
is 80 per cent, mills which make worsteds only are
running at 33 per cent of capacity.
Stocks of worsted goods held by manufacturers
are low, but the better demand for woolen cloth, to
gether with the advancing quotations on raw wool,
has led manufacturers to stock woolens in the ex
pectation of a speculative gain. Moreover, because
of the strength of the raw material, both woolen and
worsted prices have steadily advanced. The Ameri
can Woolen Company, for example, has raised its
worsted quotations three times this spring.
Collections are becoming slower and in some cases
are distinctly poor.
W oolen and W orsted Y arns
Although trading in woolen yarns during the
month was more active, the demand for worsted
yarns declined. Notwithstanding the advance in raw
wool quotations, worsted buyers continued to be in
different, and the effect of the rising market was de
pressing rather than stimulating. With the possible
exception of yarns for the knitting trade, staple yarns
have not been in request. But novelty yarns are re
ported to be selling more readily. Except in orders
for novelties, buyers are specifying deliveries in from
60 to 90 days.
19
R a w W ool
Regarding the size of stocks held by manufac
turers, our reports are conflicting, but many state that
supplies are low. Moreover, there are many spin
ners who operate only upon order, and these carry
no stocks except what are about to be delivered. In
such cases the percentage of operations and the
changes in demand are closely allied. The productiv
ity of spinners throughout the district averages 75
per cent. A s indicated by the accompanying chart,
showing the activity of worsted, woolen, and cotton
spindles, the number of worsted and woolen spindles
in operation is subject to changes which are relatively
much greater than the variation in the number of
cotton spindles. It is also significant that though
worsted spindles outnumbered woolen spindles up to
March, 1922, the latter now predominate.
Because of the constantly rising prices of the raw
material, yarn quotations for this month show a
general advance. Some spinners, however, who are
still working up supplies of low-priced wool, are
making concessions.
In those lines in which goods are moving, collec
tions are very satisfactory, but in those that are in
active they are slower.
20
Prices of raw wool are still firm, but the great
activity which characterized this market a month ago
has now subsided. Speculative buying has largely
ceased, and mills are purchasing only in order to
cover their needs. Eastern manufacturers are show
ing some tendency of late to resist the payment of
higher prices, and this has added to the quietness of
the market. Nevertheless, when compared with that
of the previous month, the volume of sales between
May 10 and June 10 showed a marked increase. The
demand for carpet wools is especially strong and as
all of these are of foreign origin, imports have been
heavy, totaling 65,258,000 pounds during the first
four months of 1922, as compared with 30,485,000
pounds during the same months of 19 2 1. In addition
to their use in carpets, these wools are now being con
sumed in the manufacture of rough woolen fabrics.
Much of the territory wool from the West, with
the exception of that from Montana, has already
been absorbed, and the Ohio clip is now moving
rapidly. Because they are being used to supplement
the decreasing supply of high-grade imported meri
nos, the Ohio delaine fleeces are commanding higher
prices than the territory wools. Ohio farmers are
receiving for fine clips, which shrink about 60 per
cent when scoured, prices as high as 57 cents a pound.
The present high level of quotations for all w ools
has been reached by continual advances, the average
price of 98 grades having increased between May 5
and June 9 from 59 to 72 cents per pound, or about
22 per cent.
Not only has this rising price trend reflected the
potential scarcity of wool in the world, but it has
made business increasingly difficult for the dealers
because of the additional risk and capital involved,
and their stocks have therefore been reduced. Sup
plies of the finer grades of wool are especially light iu
the eastern warehouses. Moreover, the advancing
market has caused cancellations to be prevalent, and
eastern dealers have signed contracts with western
farmers only to have them broken before delivery
was made.
Many customers who formerly requested extension
of time are now taking advantage of discounts, and
collections generally are reported to be good.
S IL K
R a w S ilk
After a sharp reaction in the early part of June,
silk prices have now regained the high level of May-
On June 12, Kansai double extra A was quoted at
$7.90, and Kansai No. i^at $7.35 a pound. The
previous reaction was the result of the liquidation by
the Japanese Syndicate of silk which had been dam
aged in storage. Although sold below the market
price, it was shunned by both American and Euro
pean buyers, for only a part of the amount sold was
suitable for export. Following its monthly custom,
the Syndicate has again released 2,000 bales of its
stock.
In comparison with the record of the preceding
three months, imports during May showed a marked
increase. However, since consumption also ad
vanced, from 24,247 to 33,284 bales, the quantity of
silk in storage gained but little. The present status
of raw silk in this country is indicated by the followlng figures of the Silk Association:
1922
Storage
1st o f month
Jan uary ........... 24,804
February .......... 31,139
M arch ............. 28,922
A p r il.................
M a y ..................
22,077
19,268
Imports
40,177
19,950
18,641
21,438
34,842
Storage
end o f month
31,138
28,982
22,077
19,268
20,826
gether with the price of Sinshiu No. 1, since Janu
ary, 1920. Although the price is far below the high
point of early 1920, the volume of imports during
last month was almost as great as that of the peak
month of last year, and much higher than the maxi
mum of 1920. A study of the price curve will show
the influence of the Silk Syndicate, which was formed
in 1920.
Silk throwsters are receiving increased business,
and many of their mills are running at 80 per cent of
capacity. Prices of thrown silk fluctuate with the
demand.
Silk Goods
With the exception of that for crepe fabrics, man
ufacturers continue to find the demand for broad
silks extremely light. Jobbers, on the other hand,
have a steady call for silk goods, as trade has been
stimulated by the warm weather and by the low
prices made possible by advantageous purchases of
goods when manufacturers liquidated their stocks.
The presence of these low-priced supplies in jobbers’
hands completely cuts off the manufacturer from the
effective demand, except in one class of goods,
namely, crepes. In these, heavy buying has caused
stocks to become depleted. Once again, manufac
turers are faced with the unfortunate situation of a
sharp demand for one line and .stagnation in all
others. For example, jobbers are forced to carry
broken color assortments of crepes and sport silks,
and this class of goods is more active than ever be
fore; but taffetas and messalines have not been so
dull for years. Moreover, this inactivity extends
also to the foulards and satin-faced weaves, and rib
bon makers find that the restrictive influence of price
makes the demand for their product unsatisfactory.
The season for spring silks now having passed, man
ufacturers are receiving a few attractive requests for
fall goods, but the major portion of the orders are
small in size and call for quick delivery.
Owing to the situation above described, the gen
eral rate of operations is not greater than 40 per
cent. Only those mills are running in which the
looms are adapted to the making of crepe weaves,
and the industry fears that if all of these looms were
operated on full time, even the crepes would be over
supplied. In spite of a slight increase in production,
the Paterson mills are now running at only 20 per
cent of capacity, as compared with a productivity one
year ago of 50 per cent.
We receive conflicting reports as to the supplies
of raw silk held by manufacturers, but their stocks
Consumption
33,842
22,107
25,546
24,247
33,284
On the chart below are shown the imports and
consumption of raw silk in the United States, to
21
of finished goods, although not increasing, are
heavy.
Very few continue to produce for stock,
since the price of the raw material is both high and
unsteady. Although the demand will not permit a
sharp advance, the rising silk market has somewhat
strengthened the price of the finished goods. But
silk men would welcome such a lowering of prices
for broad silks as would bring them more nearly in
line with cotton fabrics.
Collections are unchanged and continue to be sat
isfactory.
H O S IE R Y
Hosiery manufacturers report that there has been
no further increase in activity but that orders booked
are somewhat smaller than in the previous month.
Full-fashioned mills have made sales that will keep
them busy until the end of September and have some
orders for shipment over the balance of the year.
But seamless mills, generally, are working on orders
to be shipped within the next six weeks. However,
certain manufacturers have booked some August and
September business. All lines of cotton and mer
cerized hosiery, except infants’ wear, are extremely
dull.
Prices, as a rule, are about the same as they were
a month ago, although some orders have been taken
at reductions ranging from five to ten per cent. The
best selling hosiery is a full-fashioned silk stocking
for women to retail at about $2 per pair.
OPERATIONS IN TH E HOSIERY INDUSTRY
(In terms o f dozens o f pairs)
Number o f firms reporting— 44
May, 1922,
compared with
April, 1922
Firms selling to the wholesale trade:
Product manufactured during May
Finished product on hand May 31.
Orders booked during May.........
Cancellations received during May
Shipments during May..................
Unfilled orders on hand May 3 1 . .
+ 2%
— 4.5 “
— 50.3 “
—40.1 “
+ 6.6“
— 13.5 “
Firms selling to the retail trade:
Product manufactured during May
Finished product on hand May 31.
Orders booked during May.........
Cancellations received during May
Shipments during May..................
Unfilled orders on hand May 31. .
— 3.9%
—25.6 “
+32.8 “
+32.9 “
+ 4.5 “
+10.2 “
May, 1922,
compared with
May, 1921
UND ERW EAR
The continued advance in yarns has made the mar
keting of underwear increasingly difficult. Only
those manufacturers who bought yarn at lower prices
than now prevail and are willing to sell their finished
product at prices based on their purchases, are able to
secure a satisfactory volume of business.
Advances in price on either light or heavy weight
underwear are fought by both wholesaler and re
tailer, who reiterate the statement that the consumer
is in no mood to pay a higher price than he has been
paying. Nevertheless, the manufacturer is faced
with the actual high figures for yarn, which are
based on the strength of raw cotton and wool, and is
therefore unable to meet the buyers’ views. Some
fill-in orders for light weights are still being received,
but the advance demanded for fall goods, over the
opening prices of last January, has greatly reduced
the volume of business for autumn delivery. It wilfi
however, have the effect of stopping any intended
cancellations.
The opening of lines for the spring of 1923, which
was expected to take place at about this time, seems
to be held in abeyance because of the improbability
of the success of an opening at present. The output
of the reporting manufacturers in the Third Federal
Reserve District is shown by the following table:
CONDITIONS IN THE UNDERW EAR INDUSTRY
(In terms of dozens)
Number of reporting firms— IS
+27.7%
+38.5 “
—29.4 “
May, 1922,
compared with
April, 1922
Summer underwear:
Product manufactured during May
Finished product on hand May 31.
Orders booked during May.........
Cancellations received during May
Shipments during May..................
Unfilled orders on hand May 31..
+29.9 “
+15.3 “
+25.3%
+58.1 “
+31.6 “
—
+
+
—
—
—
11.4%
12.7“
36.7“
10.2“
21.4“
49.6 “
May, 1922.
compared w»tu
May, 1921
— 4.0%
—25.4 “
-2 0 .5 “
—90.8 “
Number o f reporting firms— 7
Winter underwear:
Product manufactured during May
Finished product on hand May 31.
Orders booked during May.........
Cancellations received during May
Shipments during May..................
Unfilled orders on hand May 31..
+ 1 8 .4 “
—20.4 “
All yarns, worsted, cotton and silk, have advanced sharply in sympathy with the strength of the
raw material markets. Sales of yarns at the new
quotations, however, have been small, for, as stated
above, prices for finished hosiery are lower rather
than higher. Therefore it is most difficult for mills
that are not fortunate enough to have on hand stocks
of yarns purchased on a lower market, to meet pres-
ent competitive prices. The table presented here
with shows the operations of reporting mills in this
district.
+ 7.2%
+ 23.5 “
—
j-140.5 “
.............
+ 19.0“
-j- 3.9“
F L O O R C O V E R IN G S
For some months past, the demand for carpets and
rugs has centered largely in the higher grades, Wij'
tons and Axminsters,— a condition that was &
marked contrast to the situation in many lines oi
22
business, for in most cases the reduced purchasing
power of the public had forced orders into medium
and low priced articles. Now, however, without
any reduction in the demand for the higher qualities,
a heavy buying movement has set in for the lower
grades, and manufacturers of velvets, tapestries and
mgrains are, in most instances, able to run their
plants at full capacity. For the first time since the
strike in the Wilton factories last year, supplies of
Wiltons appear to have caught up with the demand,
and orders for speedy delivery have become less
urgent. Rag rug makers have also had a good
spring and early summer trade, but orders are now
beginning to slacken, as is to be expected at this sea
son. Business, however, is still being booked at a
rate considerably higher than at the same period in
J92I.
Price changes have been infrequent and when
uiade have been very slight. Raw materials are
strong, cotton and wool yarns and jute having all
advanced in price.
When summer begins, the linoleum business
usually slackens, but this year there appears to be no
lessening of orders, and plants, although running at
capacity, are not only showing no accumulation of
stocks but are even behind on many of their deliv
eries. Linseed oil is lower in price than it was a
ruonth ago, but is considerably above quotations of
early spring. Jute, owing to the short Indian crop,
bas advanced sharply.
Collections in all floor-covering lines are good.
either in warehouses in this country or on ships
scheduled to arrive early. Sheep skins also are
firmer and have advanced from the recent low prices.
Stocks of hides and skins of cattle, calf, goat and
sheep, as shown by the accompanying chart, are all
much lower now than at the beginning of 19 21. The
decline in all of these, excepting goat skins, has been
fairly steady during the past sixteen months. Goat
skins decreased for the first ‘four months of 1921
very sharply, falling off about 4,000,000 skins, or
over one-third. They then increased for seven
months, gaining 3,500,000, and almost reached the
figure of January 1. From that point another sharp
decrease took place, and in four months’ time, or by
February, 1922, stocks were down again to about the
same point as in April, 19 21. Since February,
stock has increased. On April 30 of this year, the
stocks of cattle hides, sheep and goat skins were each
about 2,000,000 less than on January 1, 19 2 1, and
the stock of calf skins fell over 500,000 during the
same period. Because of these reductions, it is likely
that any further increase in the demand for finished
leathers will be promptly reflected in the price of
raw hides and skins.
LEATH ER
H ides and S kins
Sales of both domestic and foreign hides have inleased, as have also prices. Unsold stocks are re
torted to be small, and both packer and country mar
kets have been cleared of all desirable lots.
Calf skins are also active and higher. Heavy
^eights are in better demand than light weights, but
good selections in light weights also find ready sale,
-hiring the warm season, country skins, not as a rule
taken care of as well as skins from animals
slaughtered in the city, have to be marketed quickly
to avoid deterioration. Therefore, these skins have
n°t shown as great strength as the others.
Coat skins have ceased to decline. In fact, the
Primary markets have advanced from the low figures
several weeks ago. Some tanners have bought in
hese markets, though not largely; but other tanners
tvho were in need of stock preferred buying skins
23
L eather
The leather business in practically all its branches
has taken a turn for the better. In heavy leathers
the market is much broader. Whereas formerly cer
tain lines only were selling, there is now a demand
for all tannages and all parts. This has enabled the
tanner to reduce stocks where accumulation had been
heaviest. Prices, too, have improved, and the ad
vances have not in any way checked sales. Buyers
are more disposed to purchase for the near future,
not merely from hand to mouth as they have been
doing, and are thus showing confidence in the stabil
ity of present prices. Production has not increased,
and as sales were large during the latter part of May,
stocks on hand at the end of that month, when the
figures are published, are expected to show a decided
decrease. And as June billings promise to be fully
as large as those of May, it would appear that the
heavy stocks carried by tanners for the past eighteen
months are at last being steadily reduced.
Sales of belting butts and leather belting continue
to increase. The largest business for many months
in both of these was recorded in May, and since then
sales have been running at about the same rate.
Harness leather, however, is quiet, and prices are
somewhat lower. In the coal regions, owing to
strike conditions, orders have been noticeably
smaller.
Calf leather is much more active. Heavy skins
for men’s wear are selling particularly well, and
lighter skins, for women’s wear, also show improve
ment. Orders for black, although not so large as
those for browns, are increasing.
Kid leather, owing in part to the considerably
lower prices accepted by tanners, has been marketed
in larger quantity, and this leather is showing a gain
in popularity and is now being cut for fashionable
styles of women’s pumps. Sales of kid, however,
cannot be said to be large, but as the improvement
comes at a time when manufacturers had become
discouraged over the continued neglect of this prod
uct, it has created a much more cheerful sentiment in
the trade.
Sheep leather, in common with all the others,
shows a better tone, particularly as regards the de
mand from the hat and bag industries. Chamois
also is selling freely.
Patent leather, which for months has been the
leading upper leather, is still sought, but not so ur
gently as formerly. There is at the moment a let-up
in the demand. However, this is thought by some
to be only a temporary lull caused by the hot weather.
Stocks of most of the principal leathers decreased
even prior to May. On April 30 the report of the
Department of Commerce gave the figures as fol
lows :
Sole leather (backs, bends and sides).. .decrease
Cattle splits (equivalent sides)................ decrease
Goat and kid.................................................decrease
Sheep and lamb......................................... decrease
cent
“
“
“
The only increases of importance were :
Offal (sole and belting),...........................increase 0.9 per cent
Cattle side upper..........................................increase 2.9 “ “
One of the most satisfactory changes in the con
dition of the leather industry has been the improve
ment in export trade. The figures at bottom of page
show the changes in the principal items.
Since April, the figures are expected to show even
greater increases, as compared with those of the pre
vious year.
L eather Goods
Fancy leather articles, including small bags, have
sold much better during the past three weeks than
for several months. Improvement, however, is not
unusual at this period of the year, as many of these
articles are sold to travelers and tourists. Prices for
the most part are unchanged. In larger articles, too,
sales are better. This year foreign travel promises
to be the heaviest since 1914 , and luggage for that
purpose is in demand. The suit case is regaining
some of its popularity, replacing the traveling bag,
which during the last season or two has been the bet
ter seller. High grade trunks are still sluggish, but
medium priced lines are selling freely. The size of
the individual order in all leather goods business i5
very small, and it is evident that dealers are deter
mined not to stock up. This is emphasized by the
fact that maufacturers are receiving many orders by
telegraph asking for shipment immediately by
express.
April, 1922
Grain and finished splits (sq. ft.)
Calf and whole kip (sq. f t .) .........
Goat and kid (sq. f t .) ..................
Patent upper leather (sq. f t .) ___
Sole leather (lb s .)..........................
0.2 per
0.9 “
0.8 “
3.8 “
April, 1921
1,379,432
1,886,240
3,312,337
2,588,450
704,917
1396,453
1,105,422
1,069339
822,489
24
347,644
10 months ending
April, 1922
10 months ending
April, 1921
8,493,930
14,769,509
30,252399
6,978,147
7,612,503
27325,993
9,986,4'9
12,838,987
In both suit cases and trunks, however, very severe
price-cutting has been carried on, and the business
therefore is not in a satisfactory condition as far as
profits are concerned. Collections have improved
and are now considered to be fully up to normal.
S hoes
Manufacturers of shoes have recently been able to
secure more business than for several months. The
majority of these new orders are for shipment within
five or six weeks, but there is a decided increase in
the contracts made for delivery in August and Sep
tember. Several causes have contributed towards
this improved condition. First in importance have
been the increased sales during the second half of
May and the first half of June, by both wholesaler
and retailer. These sales depleted stocks, and re
placement orders became necessary. Those manu
facturers having stocks of desirable styles on hand
*’ere the most fortunate, as prompt delivery was
wanted. Another cause is that although small re
ductions have been made in some cases, the price of
shoes is becoming more stable and therefore one of
the risks of buying has been reduced. Further than
that, the second and possibly more important risk in
E
x p o r t s
OF
M
e n 's
,W
_
o m e n ’s a n d C h i l d r e n s
fr o m t h e U n it e d S t a t e s
.
Millions
°F
Pa ir s
1.400
_
S
h o e s
___________________________________M illio n s
the market, caused by the very radical and almost in
cessant style changes, shows signs of decreasing.
Not that new styles are not being brought out, but
that styles are less radical and changes somewhat less
frequent. The styles most in demand for immediate
use are one-strap pumps made of patent leather,
satin, and various white leathers, but kid pumps,
made of both black and brown, have gained some
what in popularity. For later delivery, patent
leather, although still called for, is not specified in
so large a percentage of shoes as before, and orders
for calf and kid are becoming more frequent. Fancy
brocades for evening wear by women also promise to
be used next autumn.
Exports, which according to the accompanying
chart had reached a low point early in the present
year, are improving, women’s shoes showing a better
position in April, as compared with the previous
year, than either men’s or children’s. During the
month of April, 1922, 209,307 pairs of women’s
shoes were exported, as compared with 16 1,08 1 pairs
in April, 19 2 1. Exports of both men’s and chil
dren’s shoes, on the other hand, decreased. Cuba
has recently been a very good buyer of children’s
shoes, and conditions in that market are reported as
being greatly improved.
Production of shoes in our local factories, as
shown herewith, increased 3.3 per cent, as compared
with April, 1922, and decreased 6.2 per cent as com
pared with May, 19 21.
OF
Pa ir s
1.400
CONDITIONS IN THE BOOT AND SHOE INDUSTRY
!
!
ft !l
— H t—f r
M e n s S h OES
!"
111 1
1
y
!" ! Ili'll 1 1
r >
n
! 111 M 1
III/ V
n
' H I 1 1
1 1
ij
1; 1 * 1M
i i !
.1
1/ •
i."
1 1
1200
1000
1
1
1
1
1
I
600 1
1
1 1
* 1
! n
600
"
“ J S ho es
l*
1
1
1 1
1 , 11 i
11
l
|/f\ A \ V,
400
r
V
200
\V r ,
vy
1
1
n
A >,
/
\
)
1!?
j
/
t
(C h i l d r h is Shoes
*
400
i
\
* ll
200
fV ^ T ?
w
>
•
0
0
1918
1919
..................
1920
,A
1921
1922
----------------------------—
May, 1922,
compared with
May, 1921
— 6.2%
+ 2.2 “
—34.7 “
—44.6 “
+61.0 “
— 2.9 “
Retail sales in this district during May, as
compared with April, 1922, show a loss of 15.4 per
cent, but this was caused by an abnormal sale in the
pre-Easter period of the first half of April. Com
pared with those of May, 19 2 1, sales were only 4.9
per cent less, notwithstanding the lower prices now
prevailing. Stocks have been reduced 7.3 per cent
since a year ago.
The strike which has kept Lynn factories closed
has been settled, the workmen agreeing to accept the
15 per cent reduction in wages suggested by the
State Board of Arbitration. All the factories are
600
1 <
1 »
1 »;:*
in
|
J
6 00
'LL
Ij1
'
May, 1922,
compared with
April, 1922
+ 3.3%
— 12.8“
+ 2.1 “
— 4.0 “
+43.5 “
Stocks on hand.................................. . — 7.3 “
Number of operatives on payroll.. . . . — 4.6 “
Production......................................... .
Shipments ...................................... .. ..
Orders booked .................................. .
Orders on hand................................. .
1.000
IT
UK
1 ,WOMENS
Number of reporting firms— 47
1.200
1923
-------------------
25
now starting up, but it will be some time before they
are back on a full production schedule.
1920, but it is quite usual for them to be greater in
the spring than at other times of the year.
Prices in general are fairly firm. Competition has
R ETAIL SHOE TRADE
resulted in some price-cutting, which has recently
1. N et S a l e s :
been more severe on book paper than on the other
(a) May, 1922, as compared with April, 1922... — 15.4%
(b ) May, 1922, as compared with May, 1921___ — 4.9“
grades. This is particularly true of large orders.
(c ) Jan. 1 to May 31, 1922, as compared with
Adjustments downward have been made in the wrap
Jan. 1 to May 31, 1921............................. — 14.5 “
ping paper market by certain manufacturers and on
2. S tocks (Selling price) :
(a) May, 1922, as compared with
April,1922... — 3.7% certain grades on which quotations were above the
(b ) May, 1922, as compared with
May, 1921_ — 7.3“
prevailing market prices. Little change has occurred
in pulp prices. There are indications that foreign
3. R ate of T urnover
(Times per year based on
cumulative period) :
manufacturers of pulp are planning to raise their
(a) Jan. 1 to May 31, 1922...................................
2.8
quotations, and some of them have in fact already
(b ) Jan. 1 to May 31, 1921...................................
3.1
done so. Collections have improved and are now
Number of stores reporting above items:
reported to be from fair to good.
la .... . . . . 2 6
2a.... ....22
lb .... . . . . 2 6
2b.... ....16
The question of foreign competition in the paper
lc___ ....26
3a. . . . . . . . 2 2
industry is not now discussed as much as it was a few
3b.... ....16
months ago, although imports this year have been
heavy. This country depends largely upon Canada
PAPER
for its supply of newsprint, and the greater part of
the increase in imports of this grade was from that
Since May i the demand for paper has continued
its upward trend, although within recent weeks country. Foreign wrapping paper is also coming in
seasonal factors have slackened the rate of improve in much larger quantities, but the amount imported
ment in some lines. These influences, however, have is relatively small and constitutes only a slight part
not been as great as usual, and the summer slump of the total consumption. Furthermore, exports
has not yet definitely begun. The fine-paper division
of the trade seems to be the most active, although
Imports
book papers are also selling well under the impetus
of betterment in the printing and publishing trade.
N ewsprint AN D C/pappimg Paper
U n it e d States
The demand for newsprint is excellent throughout M
M
Of
O
F
P
the country, as the size and circulation of newspapers P b U N 0 3
500
500
continue to increase. But the call for the coarse
grades of paper is erratic. Manufacturers report a
gradual improvement in the demand, but local job
Me ft/SPRINt Pa p e Q
100
100
bers state that their sales of these lines have been
v —■
\ t VV
-Av'V- V
much lighter in recent weeks. Orders in all divisions
50
50
of the trade are still for immediate delivery, and
though some dealers report a slight increase in the
size of individual sales, they are still small.
10
10
Mill operations in this distirct are as yet materially
reduced, and some firms are running at only 50 per
3
5
cent of capacity. In certain cases, the restricted out
Wr; PPIMG P a p e c
put is due to the scarcity and the high price of coal.
For the entire country and for all grades, production
AJ
1
1
W
is close to 80 per cent of capacity. Federal Trade
u l \
.5
5
Commission statistics show a decline of about 10 per
/l
cent in the production of all grades during April, as
compared with March, but an increase of 25 per cent
.1
.1
over the output of April, 19 2 1. Shipments did not
1916 1917 1910 1919 1920 1921 1922 1923
fall to so great an extent, and a reduction in stocks
on hand was affected. Stocks are still rather large
as compared with the small reserves held during
il l io n s
il l io n s
ounds
A[
26
practically offset imports., The injury done to domes
tic producers is said to be great not because of the
amount imported, but because of the numerous offer
ings of the same lots to many individuals at prices
below those on domestic paper. The trend of imports
of newsprint and wrapping paper since 19 16 is shown
on the chart on page 26. Imports of book paper,
not given on the chart, have declined materially
within the past year, and for the first four months
of this year totalled but 16 per cent of the aggregate
for the same period in 19 2 1.
Importers state that European paper is becoming
increasingly difficult to market because of irregularity
in shipments. Paper cannot be sold for delivery on
arrival at port, because no reliable estimates can be
made as to when it will arrive; and frequently the
importer has had to enter the market and purchase
paper for his customer. This situation makes it
necessary for him to carry large stocks in order to
insure prompt delivery. Another factor that will
Work against the sale of foreign paper is the danger
of a rise in prices. Foreign producers have threat
ened to increase quotations, and in some cases ad
vances have already been announced. Increases have
also been made on foreign pulp. These may be seen
in the following table showing monthly average im
port prices on certain grades of paper and on pulp.
M ON THLY AVERAGE IM PORT PRICES
Newsprint
(pound)
D20-April . . . . .. $.0413
December .. .0519
D2l-April . . . . .. .058
October . ... .0405
1922-January . .. .036
February .. .0346
March ... .. .035
April ___ .. .0341
Wrapping
(pound)
$.0679
.1005
.0644
.0365
.0357
.0361
.0364
.0372
Bleached
Book paper chemical pu
(pound)
(pound)
$.0692
.1188
.2844
.1007
.1057
.1205
.1156
.1605
$.0549
.0906
.0599
.0343
.0358
.0382
.0411
.0389
P R IN T IN G A N D P U B L IS H IN G
During the late spring months the printing and
Publishing business was much better than it was
^arlier in the year. Orders increased with the growIng volume of commercial advertising and with
enlarged demand for catalogues and various kinds of
Jpb printing. This improvement was felt by pract!cally all firms, but many report that within recent
Weeks orders have begun to diminish slightly. This
ls but the beginning of the normal seasonal decline,
" bich ordinarily reaches its lowest point during July
and August. Some printers, however, have experi
enced no decrease in demand and are of opinion that
3ecause of recent improvement in the general business
situation, such a falling off in printing will occur
this year only to a slight extent, if at all.
Lithographers also enjoyed a good demand dur
ing the spring, and magazine advertising was on a
larger scale, being much better in many cases than
last year. Business booked for the summer issues
of magazines, however, shows a decline as great as
is usual at this time, possibly greater. But prospects
for the fall are exceedingly bright. One publication
already has as much advertising scheduled for certain
fall issues as was printed in the corresponding issues
last year, and these numbers will not be closed for
several months. Publishing houses in general report
that the demand for books is excellent.
Operations in printing establishments have almost
uniformly been increased within the last three months,
although those plants that are feeling the beginning
of summer inactivity are gradually curtailing their
output. A number of shops are operating night
forces, but some are running at as low as one-third of
plant capacity. A rough estimate would place the
current output of the printing trade at an average of
about 75 per cent.
Much discussion is heard in printing circles con
cerning the cost of doing business. This is partly
due to agitation by the Typothetae in favor of more
accurate cost systems. A uniform method of deter
mining costs has been worked out by the United
Typothetae of America and has been adopted by
many printing firms. Within the past year pricecutting in the trade has been severe, and those es
tablishments keeping accurate cost systems claim that
prevailing quotations are so low as to divest business
of any possible profits, and that those shops which are
cutting prices are doing so either in ignorance or in
disregard of costs. Material reductions in the prices
charged for printing have been effected by this keen
competition.
As to individual cost items, practically the only
one that has declined to any appreciable extent is
paper. Certain standard grades of paper are now
from two-thirds to one-half lower in price than they
were two years ago. Ink has come down somewhat.
But practically no reductions of importance have
occurred in either of these items within recent
months. Wages have not been reduced at all, except
those of certain unskilled workers. There was a
strike in the industry last year over the question of
a forty-four hour week, and the compositors are still
nominally on strike; but master printers state that
they can secure all the workmen they need. Pro
duction per man is greater now than it was a year
ago, and a saving has been effected in this way rather
than by reducing wages. Through this and various
other inside economies, costs in general are being
gradually lowered. The Typothetae of Philadelphia
has, since January, been making a monthly analysis
of the principal hour-costs in 2 1 large printing es
tablishments of the city. These figures, given below,
show a slight decline in most of the departments from
month to month.
HOUR COSTS IN PH ILAD ELPH IA PRINTING SHOPS,
1922
Department
Hand composition . . .
Linotype composition
Monotype keyboard .
Monotype caster . . . .
Platen press, small, h f..
Platen press, large, h f..
Platen press, small, m f..
Platen press, large, m f..
Kelly press ...............
Automatic presses . . .
Pony cylinder...........
Medium cylinder, h.f.
Large cylinder, h.f___
Medium cylinder, m.f.
Large cylinder, m .f...
Cutting machine.......
Folding m achine___
Bindery C-machines .
Bindery D -han d .......
April
March
February
January
$2.71
2.64
1.35
1.52
1.58
1.89
1.72
1.87
2.25
2.51
3.31
3.29
4.08
3.46
2.89
1.80
1.96
.90
.69
$2.45
2.50
1.37
1.40
1.54
1.87
1.69
1.77
2.32
2.22
3.02
3.22
4.22
3.14
3.12
1.79
2.12
1.04
.69
$2.65
2.62
1.29
1.71
1.82
1.87
1.67
1.91
2.41
2.79
2.86
3.50
3.93
2.90
3.17
1.98
1.95
.93
.64
$2.92
2.94
1.59
1.66
1.71
2.08
1.83
1.83
2.95
3.43
3.45
4.48
3.07
3.07
1.81
1.97
1.20
.78
An improvement in collections has occurred, and
they are now in general considered to be fair, and in
a few cases, good.
C IG A R S
The demand for cigars has shown a marked im
provement during the month of June. Manufac
turers both in the city of Philadelphia and through
out the district report increased sales. This is the
more remarkable when it is remembered that June,
Ju ly and August are usually subject to a seasonal fall
ing off in demand. The large factories still have the
better of the business, and the same firms as last
month reported that they were operating at 100 per
cent of capacity report this month that they cannot
fill the demand and are largely oversold. Firms
which a month ago were operating at from 60 to 70
per cent of capacity report that they are putting on
workers and increasing their output by from 10 to
15 per cent.
The better grades of cigars have the best sale, and
Philadelphia houses with distributing organizations
covering the entire country find that their higher
priced cigars almost uniformly outsell their cheaper
makes. Orders are still largely for immediate ship
ment, but the number of standing orders has in
creased. Cigar manufacturers believe this is a hope
ful sign and one that points to greater stability in the
industry.
The price of domestic tobacco has decreased
slightly during the last month, which may be ac
counted for by the inferior quality of remaining
portions of the 1921 crop still in the hands of farmers
and dealers.
Foreign tobaccos have increased
sharply, and cigar men complain of the excessively
high levels reached by Java and Sumatra during the
recent inscriptions in Holland. All firms report col
lections to be satisfactory, and most of them consider
them to be good.
C O N F E C T IO N E R Y
Conditions in the confectionery industry are in
general considered to be good for this season. Many
manufacturers report an increase in sales within the
last month, although others are beginning to notice
the decline that ordinarily starts about this time of
the year. If the seasonal factor could be eliminated,
it i3 clear that business would show improvement
during recent weeks. Orders are now practically all
for immediate delivery, excepting those from some
of the summer resorts. The booking of orders for
fall delivery usually begins after July 1 and continues
until September or October. Shipments are at their
maximum in October and November.
A s compared with last year, the majority of firms
report a slight decrease in sales as measured in
dollars, and reference to reports of a year ago in
dicates that manufacturers considered business to be
exceedingly dull at that time. Standards have un
doubtedly changed since, for comparison was then
being made with the abnormally heavy demand of
1920. It is clear, however, that the present situation
is more favorable than that of last June, for at that
time prices were declining rapidly and stocks of raw
materials bought at peak prices were excessive, so
that losses were great. Moreover, the confectionery
industry had experienced rapid expansion during
19 19 and 1920, and the depression of 1921 caused
a number of failures which resulted in large quantities
of goods being thrown on the market at sacrifice
prices.
Plant operations vary widely among the different
establishments. In only exceptional cases is produc
tion at capacity; a large number of firms are running
at from 40 to 50 per cent, and some at as high as 75
per cent. In most cases, however, current output is
considered to be little if any below normal for June,
at which time the demand is light and production
for stock is inexpedient because of the fact that candy
spoils quickly in hot weather. Therefore, finished
stocks are at a minimum.
Changes in prices within recent months have been
limited, although some price cutting is still being
indulged in and cheaper values are gradually being
reached either by actual reductions in quotations or
by increasing sizes. In penny candies prices are
about 25 per cent lower than they were last June, and
considerable declines had occurred prior to that date.
Fine confections have not been reduced as much as
other lines. The possibility of prices increasing is
beginning to be mentioned by many manufacturers
because of recent advances in the prices of raw
materials. Sugar is rising slowly but steadily, and
refiners have reached a six cent basis for the first
time since last June. Corn syrup is also higher, and
cocoa beans have advanced steadily since the first
of the year. These products are still readily obtained
and manufacturers as a rule are not stocking up on
them, although supplies on hand are reported to be
heavy in a few cases.
Collections have shown a little improvement in
recent months. They are now reported in most
cases to be fair, whereas in March they were con
sidered poor.
A G R IC U L T U R E
Agricultural conditions in the Third Federal Re
serve District have undergone a decided change for
the better within the past month. A prolonged wet
spell, however, during the earlier part of the month
did retard the growth of some crops and cause con
siderable damage to alfalfa. A fairly large portion
° f the first growth of alfalfa had been cut, but before
the farmers had time to put it up, much of it had
been destroyed by the continual rains.
Frost damage though severe did not injure the
fruit crops as greatly as was feared. The peach crop
° f New Jersey is reported as approximately 65 per
Cent of normal, and the apple crop throughout the
district as from 50 to 75 per cent of normal. The
fruit crops are in a much better condition than they
'vere at this time last year. Clover, which suffered
severely from frost last year, is in excellent condition
at the present time, as are all the other forage crops.
New Jersey reports the wheat crop of the state to
be 94 per cent of normal. Corn, white potatoes, and
rye are also all in better condition than they were a
year ago.
Certain sections of the district report damage to
crops by rosy aphis, and heavy damage to peas by
green aphis. Moreover, a large acreage of peas has
been plowed under because the yield would not have
been large enough to justify harvesting it. Striped
beetles are making inroads on cantaloupes in some
sections of New Jersey. In Juniata County, Penn
sylvania, red rust is causing considerable damage to
wheat.
Farmers in some sections are mixing their own
fertilizer this year, but the great majority of them
are buying the ready mixed article. Those who are
making their own preparations are effecting a saving
of approximately $ 10 a ton. Because of the high
price of fertilizers and the uncertainty as to the
prices which they will secure for their products, many
farmers are using less fertilizer this year than is their
custom. They are looking forward to securing
more lime for purposes of fertilization when railroad
freight rates are reduced. At the present time it
frequently happens that the freight on a carload of
fertilizer amounts to half its value.
Farm labor is considerably cheaper this year than
it was last, $2.50 a day being a good average. But
it is more difficult to secure. Some sections are ex
periencing a positive shortage. The mining dis
tricts, however, report an excess of workers, because
of the closing down of the mines and the miners’ ac
cepting work on the farms.
Certain sections in the district are noticeably short
of hogs and beef cattle. One New Jersey county
reports only half as many hogs as last year and only
one quarter as many as there were three or four
years ago. A similar complaint comes from Dela
ware. where the shortage of hogs is such as to make
it difficult to dispose of the corn profitably.
The dairy industry throughout the district seems
to be in good condition. The supply of milk is
adequate, and the excellent system of distribution,
together with an advertising campaign, has increased
consumption to a considerable degree. Every effort
is being made to reduce seasonal fluctuations in both
demand and production and to put the industry on a
more stable basis.
29
COMPILED AS OF JUNE 23, 1922
This business report will be sent regularly without charge to any address upon request
30
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
J u n e 1 4, 1922
M a y 17, 1922
J u n e 15. 1921
A t t h e c l o s e o f b u s in e s s
J u n e 14, 1922
Altoona................. 33,385,000
4,096,000
Chester.................
7,447,000
Harrisburg............
4,826,000
Johnstown............
5,099,000
Lancaster..............
Philadelphia......... 320,087,000
7,994,000
Reading................
10,855,000
Scranton...............
10,701,000
Trenton................
6,808,000
Wilkes-Barre........
4,263,000
Williamsport.........
6,998,000
Wilmington..........
York.....................
3,428,000
33,024,000
4,445,000
7,778,000
4,594,000
4,825,000
322,072,000
8,412,000
11,710,000
13,407,000
7,655,000
4,464,000
6,751,000
4,337,000
33,190,000
4,459,000
7,056,000
4,866,000
4,871,000
307,859,000
7,267,000
15,754,000
11,100,000
8,546,000
3,644,000
7,621,000
3,923,000
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....................
M a y 1 7 ,1 9 2 2
322,939
328,551
372,861
219,546
315,186
208,257
315,620
189,094
376,752
54,814
11,440
15,402
51,243
9,425
15,468
46,533
8,660
22,968
6,353
6,911
24,504
178,268
180,688
157,607
Total loans, discounts
and investments___ 3823,948
667,954
Demand deposits.............
Time deposits..................
50,324
Borrowings from Federal
14,811
Reserve Bank..............
Totals............... 3395,987,000 3403,474,000 3390,156,000
3816,163
657,235
50,407
3898,979
622,920
41,468
16,538
100,306
B U S IN E S S IN D IC A T O R S
STATEM ENT
F e d e r a l R e s e r v e B a n k o f P h ila d e lp h ia
P e r c e n t a g e in c r e a a e o r
d e c r e a s e c o m p a r e d w it h
(0 0 0 ’ s o m it t e d )
J u n e 19, 1922
RESOU RCES
P r e v io u s
m o n th
J u n e 1 4 ,1 9 2 2 ‘ M a y 1 7 ,1 9 2 2 J u n e 1 5 , 192 1
G o ld r e s e r v e ...........................
O th e r c a s h ...............................
3 2 2 1 ,1 4 4
7 ,7 39
3 2 1 6 ,5 0 0
7 ,3 77
T o t a l r e s e r v e ..............
D is c o u n ts — s e cu re d b y U .
S. s e c u r it ie s ........................
D is c o u n ts — all o t h e r ..........
P u rch a s e d b ills ......................
U . S . s e c u r it ie s ......................
32 28,8 83
3 2 2 3 ,8 7 7
3 1 8 1 ,2 5 4
3 2 ,567
9 ,2 8 7
19,857
32,123
39,568
9,315
19,633
3 2 ,3 3 6
104,111
3 4 ,9 6 9
8 ,1 49
4 8 ,4 8 9
T o t a l e a rn in g a s s e t s ..
3 9 3 ,8 3 4
3 1 0 0 ,8 5 2
5 5 ,304
2,0 18
5 0 ,6 9 4
1,937
6 7 ,4 2 6
2 ,0 5 9
T o t a l r e s o u r c e s ............
3 3 8 0 ,0 3 9
3 3 7 7 ,3 6 0
3 4 4 6 ,4 5 7
3 6 6 0 ,7 9 8 ,0 0 0
6 6 7 ,4 7 1 ,0 0 0
3 1 9 5,7 18
U n c o lle c te d i t e m s ................
A ll o t h e r r e s o u r c e s ..............
P h ila d e lp h ia b a n k s :
L o a n s ...............................
D e p o s i t s .........................
R a t io lo a n s t o d e
p o s i t s ...........................
F e d e ra l R e s e r v e B a n k :
D is c o u n ts a n d c o l
la te ra l l o a n s .............
R e s e r v e r a t i o ..................
9 0 -d a y d is co u n t r a t e . .
C o m m e r cia l p a p e r ____
31 76 ,2 3 5
5 ,0 19
L IA B IL IT IE S
J u n e 14, 1922
G ov ern m en t d e p o s its . . . .
M e m b e r s ’ re se rv e a c c o u n t
O th e r d e p o s i t s .......................
3 8 ,9 1 4
17,945
888
10 7,68 8
1,189
B a n k c le a rin g s:
I n P h ila d e lp h ia ...........
E lse w h e re in d i s t r i c t .
B u ild in g p e rm its ,
P h ila d e lp h ia . . ............
P o s t O ffice re ce ip ts ,
P h ila d e lp h ia .................
C o m m e r cia l fa ilu res
in d is tr ic t (p e r
D u n ’s ) ............ ..
L a te s t c o m m o d it y in
d e x n u m b e rs :
A n n a lis t (f o o d p rice s
o n l y ) ............................
D u n ’s ...............................
B ra d s tre e t’ s ..................
3 8 ,6 1 6
17,010
1,303
105,406
1,954
T o t a l d e p o s it s ..............
3 1 1 2 ,9 1 6
3 1 0 9 ,7 6 5
31 08 ,6 6 3
F e d e ra l R e s e r v e n o t e s . . . .
F ed era l
R eserve
B ank
n o t e s ......................................
R e fe r r e d a v a ila b ility ite m s
A ll o t h e r lia b ilit ie s ..............
17 8,77 6
183,122
2 2 6,63 3
5,633
5 4 ,427
1,351
7,535
4 8 ,852
1,227
11,078
7 0 ,1 5 9
4 ,2 9 8
T o t a l lia b ilit ie s ............
3 3 8 0 ,0 3 9
3 3 7 7 ,3 6 0
3 4 4 6 ,4 5 7
1 0 0 .3 % *
9 9 .0 %
3 4 8 ,1 5 7 ,4 7 8
8 0 .5 %
4 V i%
4 -4 H %
-
5 .0 %
+ 1 1 .0 %
1 1 5 .7 % *
2 .9 % - 6 4 . 0 %
7 6 .6 % *
5 7 .8 % *
4^% *
6% *
6 ^ -7 % *
4
y2
%*
P r e v io u s
m on th
Y e a r ago
3 1 ,8 2 8 ,1 8 3 ,0 0 0
1 1 7,92 7,00 0
+ 4 .7 %
+ 5 9 .9 %
+ 1 3 .6 %
+ 6 .5 %
3 1 ,9 4 6 ,1 1 0 ,0 0 0
+ 7 .3 %
+ 1 3 .1 %
8 ,8 7 2 ,0 5 0
-2 1 .9 %
+ 1 4 8 .5 %
+ 1 .2
332,031 %
+ 1 5 .3 %
M a y , 1922
M a y 1 7 , 1 9 2 2 J u n e 1 5 ,1 9 2 1
38,991
17,945
4 ,4 4 0
107,305
1,171
+ 1 .8 %
+ 3 .1 %
Y ea r ago
P e r c e n ta g e in c r e a s e o r
d e c r e a s e c o m p a r e d w it h
T o t a l ...........................
C a p ita l p a id i n ......................
S u r p lu s . . . .
J u n e 15, 1921
• A ctu a l figures.
31
I,
87
1 8 3 .1 3 0
1 6 9 .9 9 7
II.
78*
-1 %
+ 1 .1 %
90 39 . 7 %
+ 1
69*
+ 1 1 .8 %
+ 2 .4 %
+ 1 2 .1 %
@FedFRASER