Full text of Business Review (Federal Reserve Bank of Philadelphia) : July 1, 1923

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THE BUSINESS REVIEW
THIRD FEDERAL I S p RESERVE DISTRICT
PHILADELPHIA J p ,
JULY I, 1923
By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent
FEDERAL RESERVE BANK of PHILADELPHIA

SUMMARY OF BUSINESS CONDITIONS
IN THE UNITED STATES
Production and shipment of goods continued in heavy larger number of wage advances during the 30-day
volume during May; the volume of employment was period ending May 15 than in any earlier month this
sustained, and many wage advances were reported. year and average weekly earnings in all reporting indus
Wholesale commodity prices declined during May and tries increased by 3.8 per cent. The advances were
most general in the cotton, steel, meat packing, and
the early weeks of June.
Production of iron and steel, cement, and petroleum sugar refining industries.
was larger in May than in any previous month, and mill In agriculture the condition of both winter and spring
consumption of cotton was close to wheat is reported less favorable than a year ago, while
Production maximum. The high level of produc the condition of the cotton crop is slightly better than
tion in these industries, together with last year, owing entirely to more favorable growing
increases in practically all other reporting lines, are re conditions in Texas. A shortage of farm labor is re
flected in an advance of 2 per cent in May in the Fed ported from most sections of the country.
eral Reserve Board’s index of production in basic in Active distribution of commodities is indicated by
dustries. In the building industry there was a further heavy movement of merchandise and miscellaneous
decline in principal cities in the value of permits granted
freight, and car loadings continued to exceed
which represent prospective building operations. Con Trade all previous records for this season. In cer
tain lines of trade a decline in the volume of
tract awards, however, which represent actual current
undertakings, continued to increase, though declines are manufacturers’ orders for future delivery is reported.
The volume of both wholesale and retail trade was
reported in the New York and Chicago districts.
This industrial activity has been accompanied by a larger in May than in April. Among the wholesale
slight increase of employment at industrial establish lines sales of meat, hardware, and shoes showed par
ments. The demand for labor was also reflected in a ticularly large increases, while sales of clothing and dry-

BANK CREDIT
BILLiOnS OF DOLLARS 600 MEMBER BANKS IM LEADmG cmES
|
Demand
D eposits

1
,

■.

i
|

i
i

!
t~~-—

1
|

Loans and
D iscounts
"**• **• *•
• •

_____
1
In v e stm e n ts^ —
Deposits

1919

goods decreased. The Federal Reserve Board’s index
of wholesale trade, which makes no allowance for sea
sonal changes, was 5 per cent higher than in April and
14 per cent higher than a year ago. Sales of depart
ment stores increased about 8 per cent in May, and all
reporting lines of chain store business reported in
creases. Mail order sales were 6 per cent less than in
April, but were larger than in any previous May.
Price declines were reported during May and the first
three weeks of June for a large number of commodities.
All of the nine groups in the Bureau of
Wholesale Labor Statistics Index, except food
prices
and housefurnishings, show decreases
for May and the average for all commodities declined
by 2 per cent.
Loans of reporting member banks in principal cities,
which have been increasing since the early part of the
decreased over
Bank year, 16 and June 13.$100,000,000 between
May
Bank holdings of
credit Government securities, which increased over

1920

1921

1922

1923

$100,000,000 in connection with the Treasury transac
tions of May 15, declined as the securities were distrib
uted by the banks.
Accompanying these decreases in loans of member
banks and the receipts during May of $45,000,000 of
gold from abroad, the loans and investments of Federal
reserve banks decreased $120,000,000 between May 23
and June 20, to the lowest point for the year and ap
proached the low point reached in August, 1922. The
reserve bank holdings of bankers’ acceptances and Gov
ernment obligations are now lower than at any time
since early 1922.
Money rates continued to show a slightly easier tend
ency. The June 15 issue of $150,000,000 6-months
treasury certificates paid a rate of interest of 4 per cent,
compared with 4*4 per cent on a similar issue sold in
March. Money in circulation increased $38,000,000
between May 1 and June 1 due chiefly to increases in
the circulation of gold and silver certificates.

TABLE OF CONTENTS
Agriculture .....................................................
Bankers’ acceptances .................................
Bricks ...............................................................
Building ...........................................................
Cigars ................................................................
C o a l.................
Coal, anthracite ............................................
Coal, bituminous ..........................................
Coke ..................................................................
Commercial paper ........................................
Confectionery ................................................
Cotton goods ................................................
Cotton, r a w .....................................................
Cotton, yarns ................................................
District summary ........................................
Drugs, wholesale ..........................................
Drygoods, wholesale ...................................
Employment and wages...............................

PAGE

26
7
12
11
25
14
14
15
15
8
11
16
15
17
3
9
8
5

Financial conditions
Floor coverings ...............
Foreign exchange .........
Gas and electric fixtures,
Glass ...................................
Groceries, wholesale . . . ,
Hardware, wholesale
Hides and skins...............
Hosiery .............................
Iron ...................................
Leather ..............................
Lumber ..............................
National sum m ary.........
Paint ...................................
Paper .......................... ..
Printing and publishing
Retail trade . ..................
Savings dep osits.............

PAGE

6
20
8

13
13
10
9
23
19
13

12
1

13
. 23
24
8
7

Securities ........................................................
Shoes ...............................................................
Shoes, wholesale ..........................................
Silk goods .......................................................
Silk, raw .........................................................
Silk, thrown ..................................................
Steel ..................................................................
Summary, district ........................................
Summary, national .................
Synopsis of business conditions.............
Tobacco ...........................................................
Tobacco, leaf ................................................
U nderw ear......................................................
Wholesale trade ............................................
Wool, raw .......................................................
Woolen and worsted goods......................
Wool yam s .....................................................

PAGE

7
21
10
18
20
19
13
3
1
4
25
26 '
20
8
18
17
18

S U M M A R Y OF BU SIN ESS C O N D ITIO N S
IN THE
TH IRD FEDERAL R E SERVE D IS T R IC T

URTHER reductions in wholesale commodity this district has increased sharply. That unemployment
prices, somewhat easier supply of labor in certain is at a minimum is indicated by reports from five of the
industries, and continuation of the lull in buying principal cities in this district estimating that only
slightly over 7,000 persons are out of 'work. This
have been the outstanding features of the past month.
is
In many lines, the present period is usually a dull one, the lowest figure since employment records were
and therefore the decrease in sales should cause no sur started at the beginning of 1921.
prise. Practically all textiles have been in poor request, That consumption is still heavy is indicated by re
and little future business is being obtained. Indeed, ports of wholesalers and retailers in this district. All
not a few cancellations have been received, especially in of the wholesale lines reporting to us showed increased
woolen and worsted goods, hosiery, and underwear. sales over those of both last month and a year ago.
Certain textile manufacturers, moreover, have had nu Retail sales in May, despite the unseasonable weather,
merous requests to postpone shipments. The leather were of larger proportions than in May, 1922, and late
and paper industries report decreased business during reports indicate that warmer weather has served to
May and early June, but the volume is still of fair pro induce more active purchasing.
of
portions. A similar situation prevails among printers. the heavy consumption of goodsFurther evidence the
is reflected in
Building permits issued in this district have de
that are
most
creased, and the demand for building materials is notice light or moderate stocks true that being carried instocks
industries, although it is
in many cases
ably less than it was a month ago, although operations are increasing. Distribution too has been at a high
in many cases are going ahead despite rising costs. Iron rate.
the last week in
and steel products are not selling as well as they were, ceeded Car loadings during seventh time sinceMay ex
1,000,000 for the
figures
and bituminous coal and coke are moving slowly. Do have been available. The same week was notable also
mestic sizes of anthracite, however, continue in excellent in that, for the first time since last September, there
demand. In summarizing it may be said that although was a surplus of cars. This is an eloquent testimonial
orders are of smaller volume and for prompt delivery, of the progress made by the railroads in getting their
business is far from being poor, and a feeling of opti rolling stock in condition.
mism is apparent. The opinion is generally expressed Marked reductions in wholesale prices during May are
that the present lull is favorable for sound business, and shown by all of the well-known index numbers. Bradmany firms are making plans for a more active buying street’s declined from $13.6665 to $13.3841; Dun’s
dropped from $192,944 to $191,414; and the index of
movement in the late summer or early fall.
With the exception of textile plants, many of which the Bureau of Labor Statistics, which had been station
are operating on reduced schedules, production con ary for two months at 159, fell to 156—the same as it
tinues at a high rate, and the output of several basic was in January. For the first time in several months,
commodities, such as pig iron, steel ingots, and petro none of the commodity groups, shown by the Bureau’s
leum, has made new records. Although the scarcity index, advanced; and all but two of the groups, foods
of labor is still great in certain industries, there is a and housefurnishing goods, declined. The greatest de
somewhat easier condition in many lines. The de crease was in fuel and lighting, which fell from 200 to
creased operating schedules in textile plants have re 190.
duced labor requirements to some extent, and the short Turning to the broader aspects of the present busi
age in other industries is not so acute, although un ness situation, probably one of the most striking phe
doubtedly more men could be used, especially in the nomena has been the expansion of our imports and the
iron and steel plants. Advances in wages are still falling off in exports. The chart on page 5 indicates
numerous, and our index of average weekly wages in the trend of our foreign trade since 1912.

SYNOPSIS OF BUSINESS CONDITIONS

Compiled as of June 23, 1923
Business
Bricks
Cigars
Coal, anthracite
Coal, bituminous
Coke
Confectionery
Cotton goods
Cotton yarns
Drugs, wholesale
Drygoods, wholesale
Floor coverings
Gas and electric
fixtures
Glass
Groceries, wholesale
Hardware, wholesale
Hosiery, fullfashioned
Hosiery, seamless
Iron and steel
Leather goods
Leather, heavy
Leather, upper
Lumber
Paints
Paper
Printing and
publishing
Shoes, manufacture
Shoes, retail
Shoes, wholesale
Silk goods
Silk, thrown
Tobacco leaf
Underwear, heavy
weight
Underwear, light
weight
Woolen goods
Worsted goods
Worsted yarns

Demand

Third Federal Reserve District

Prices

Firm
Firm
Firm
Decreasing
Decreasing
Firm to
higher
Lower
Lower
Fine chemicals
—higher
Fair to good
Botanicals—
lower
Unchanged
Fair
to lower
Fair to good
Firm
Good
Firm
Good
Decreasing
Generally
Good
unchanged
Good
Firm
Fair
Unchanged
Unchanged
Fair
to lower
Decreasing
Fair to good
Unchanged
Good
to lower
Unchanged
Poor
to lower
Unchanged
Fair
to lower
Fair to good
Firm to lower
Good
Firm
Good
Firm
Fair to good
Firm
Fair
Unchanged
Good
Unchanged
Fair
Unchanged
Poor
Unchanged
Lower
Poor
Firm to
Poor to fair
higher
Poor
F'irm
Firm
Poor
Good (for coat Firm
ings)
Unchanged
Poor
Unchanged
Poor
Good
Good
Good
Poor
Fair
Fair to good
Poor
Poor

Finished
stocks
Light
Moderate
Light
Moderate
Moderate
Moderate
Moderate
Moderate

Labor situation
Supply
Wages
Some
Scarce
increases
Sufficient
Unchanged
Some scarcity 1 Unchanged
Unchanged
Sufficient
Sufficient
; Unchanged
Some scarcity 1 Some
increases
Some scarcity, ; Unchanged
skilled
1
I

Moderate
Moderate
Moderate
Moderate
Light to
moderate
Moderate—
decreasing
Moderate to
heavy
Moderate
Moderate
Moderate
Moderate
Heavy
Moderate
Light to
moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Light
Moderate
Moderate
Moderate
Moderate
Moderate
4

Sufficient
Some scarcity
Some scarcity

Some
increases
j Some
increases

Some scarcity
Some scarcity
Scarce
Sufficient
Sufficient
Sufficient
Some scarcity
Sufficient
Scarcity,
unskilled
Some scarcity
Some scarcity

Some
increases
Some
increases
Increasing
Unchanged
1 Unchanged
Unchanged
Some
increases
Unchanged
Unchanged
Unchanged
Unchanged

Some scarcity
Unchanged
Some scarcity
Unchanged
Scarcity,
Some
unskilled
increases
Some scarcity
Unchanged
Some scarcity , Unchanged
Some scarcity
Unchanged
Sufficient
Unchanged
Slight scarcity, Unchanged
skilled

Collections
Fair to good
Fair to good
Fair
Fair
Fair
Fair
Fair
: Fair
|
Fair
Fair
Good
Fair
Fair
Fair
Fair
! Fair to good
Fair to good
Fair
Good
Fair to good
Fair to good
Fair to good
Fair
Fair to good
Fair
Fair to good
Fair to good
Good
Fair to good
Fair to good
Fair
Fair to good
Fair to good
Fair to good
Fair to good
Fair to good

cent. In the metal products establishments the expan
sion has been large—over 9 per cent since January,
and in the building material and most of the food
products industries heavy increases have also been re
corded. The accompanying tables and chart show
revised index numbers of employment and wages in
the leading industries and the principal cities of the
Third Federal Reserve District during the first five
months of 1923.
Employment in principal cities
Third Federal Reserve District
Cities

Allentown ..
Bethlehem ..
Bloomsburg .
Bridgeport ..
Camden ........
Chester ........
Columbia . ..
Easton .........
Harrisburg . .
Hazleton ....
Lancaster . ..
Lebanon ....
Norristown .
Philadelphia .
Pottstown . ...
Reading........
Scranton .......
Trenton ........
Wilkes-Barre
Williamsport
Wilmington .
York ............
All others ....

During the last three m onths our im ports have exceeded our exports
for the first tim e since August, 1914.

Source—Department of Commerce

Beginning in March, it will be noted, imports were of
greater value than exports for the first time since
August, 1914, and the same condition continued during
the next two months. Especially interesting in this
connection is the fact that during the ten months ending
April 30, nearly 60 per cent of our imports consisted
of raw materials and of semi-finished goods for further
use in manufacturing. Less than 20 per cent were
manufactures ready for consumption. The recent im
port balance has caused a great deal of discussion re
garding the possibility of an outward movement of
gold. If such a turn is to come in the near future,
there have been as yet no indications of it, as gold
imports have continued to be larger than exports.
EMPLOYMENT AND WAGES
The total number of wage earners employed at the
504 manufacturing establishments reporting to this
bank changed but little from April to May. In the
latter month employment at these plants was 202,158,
as compared with 201,180 in April—an increase of
978, or less than one per cent. Of the 31 industries
represented in our index, 15 showed increases, 6 no
change, and 10 showed decreases. Many of the
changes were of a seasonal nature. Canneries again
reported a large expansion, and employment at petro
leum refineries and in building material industries
increased seasonally. Car repair plants and sugar re
fineries also showed considerable increases, but most
of the other groups remained stable or reported slight
reductions. The textile industries in particular have
changed but little during 1923. Although general
employment, as indicated by our weighted index, is
now about 5 per cent larger than it was in January,
the textile industries show a decrease of nearly one per

Number
°f
reporting
plants Jan.
18
4
4
3
16
6
3
8
8
3
7
4
3
188
4
18
14
19
5
12
13
18
126

102
112
113
103
107
108
90
101
110
120
112
113
112
117
109
120
109
100
102
106
115
114
111

Number
employed

Index numbers
Average 1922=100
Feb.

Mar. April

May

102
114
111
107
108
125
102
103
109
123
106
113
110
120
114
121
106
104
103
109
115’
113
112

101
113
111
95
109
119
111
105
118
128
106
131
111
122
116
121
110
111
107
116
117
112
113

98
111
111
94
112
128
114
113
125
127
100
143
111
123
109
109
109
113
99
111
120
119
114

3,539
500
1,419
1,572
16,512
5,177
924
2,101
2,856
2,488
1,791
1,196
635
88,392
1,196
8,817
2.426
7,150
980
2.569
8,707
2,327
38,884

98
112
113
95
111
128
114
104
122
130
103
140
114
122
108
112
112
113
108
113
119
114
115

Wages and Employment
Third Federal Reserve District
Average weekly wages
Industries

Number
of
reporting
plants

504
All industries
Metal products:
Automobiles and parts................. 19
Electrical machinery ................... 18
Foundries and machine shops... 37
Iron and steel products................. 32
Car construction and repair..... 9
Shipbuilding ................................... 5
Textile products:
Carpets and rugs ......................... 14
Clothing .......................................... 22
Cotton goods ................................. 17
Felt hats ........................................ 4
Knit goods .................................... 27
Silk goods ...................................... 37
Worsted and woolens ................. 24
Food products:
Bakeries .......................................... 18
Canneries ........................................ 8
Confectionery and ice cream .... 21
Slaughtering and meat packing.. 12
Sugar refining ............................. 3
Building materials:
Cement ............................................ 15
Glass ................................................ 7
Pottery ............................................ 11
Miscellaneous:
Boots and shoes ........................... 16
Leather ............................................ 29
Chemicals and paints ................... 17
Cigars and tobacco ..................... 14
Furniture ........................................ 17
Musical instruments ..................... 2
Paper and pulp............................... 13
Printing and publishing ............. 19
Petroleum refining ....................... 5
Rubber tires and goods............... 12

Index numbers
Average 1922=100

Actual

Feb.

Mar.

Apr.

May

109

112

115

116

120

110
105
112
125
109
99

108
108
115
127
114
102

114
108
123
132
118
101

114
100
124
135
119
104

118
112
129
142
127
112

28.46
22.17
27.44
29.95
31.79
28.39

99
107
103
98
103
109
98

104
115
105
103
109
114
104

104
117
107
96
111
110
110

101
115
107
94
111
113
110

112
119
109
102
114
117
113

105
85
107
104
99

105
82
103
104
98

103
131
107
103
110

103
107
107
104
112

122
126
78

114
119
82

131
132
87

105
109
114
107
105
96
116
104
108
100

103
111
111
115
107
99
111
106
112
106

109
113
115
112
110
102
117
111
113
106

Jan.

The most significant development during May was
the marked growth in earnings reported in most of the
industries of the district. Average weekly wages for
all groups advanced from $25.51 in April to $26.71 in
May, or nearly 5 per cent, as compared with an in
crease of less than one per cent in April. In 24 of the
31 industries, weekly earnings were larger, the most
pronounced improvement occurring in the leather, paper
and pulp, and electrical machinery industries. That
this phenomenon was not confined to the Third District
is evidenced by the fact that the United States Bureau
of Labor Statistics reported an average increase in
average weekly earnings of 3.8 per cent at 6,075 estab
lishments throughout the United States.

Employment

May

Jan.

Feb.

Mar.

Apr. | May

$26.71 114

117

119

120 202,158

121
112
113
121
162
112

127
114
116
122
170
118

131
123
120
128
176
117

127
124
121
130
175
121

127
120
119
132
179
122

7,253
3,336
6,353
22,450
28,504
11,609

29.55
20.57
22.96
25.35
21.34
19.81
22.81

111
98
104
119
103
105
101

113
100
103
121
105
105
102

113
103
104
121
107
107
98

115
101
103
120
107
107
97

116
100
99
122
108
104
97

4,182
3,612
6,717
4,848
5,816
12,459
9,733

105
112
113
108
106

27.46
20.56
20.74
28.16
28.72

102
109
102
105
88

103
110
106
104
102

102
105
104
101
103

106
115
94
100
100

107
126
95
100
108

2,918
2,782
5,079
1,755
2,510

140
130
88

144
141
90

31.79
37.44
29.20

103
95
88

104
108
91

108
115
95

110
106
97

113
108
100

7,655
879
2,065

103
106
121
110
109
104
125
110
115
107

May

Actual

101
119
120
110
110
103
138
110
126
104

18.11
25.69
30.13
15.45
24.02
26.61
29.45
31.45
28.95
25.06

106
104
123
102
113
109
106
100
103
105

104
104
125
96
113
109
106
101
105
110

101
105
126
93
115
111
104
100
106
118

102
105
126
91
114
112
106
100
107
118

100
102
126
89
115
112
105
100
111
115

2,472
8.320
4,970
5,521
2,751
7,996
2,680
2,601
6,544
5,788

FINANCIAL CONDITIONS
Since the middle of April, commercial loans and dis
counts of reporting member banks in the Third Federal
Reserve District have tended steadily upward, and on
June 13 stood at 356 millions, as against 332 on April
18. Secured loans, on the other hand, decreased from
288 to 269 millions. Investments have increased
slightly. Country-wide figures evidence a small in
crease in commercial loans in this two-months’ period,
and a small decrease in secured loans and in invest
ments. Changes in the figures of reporting member
banks during the past month follow:

Increases or decreases in loans and investments
from May 16 to June 13
(All figures in millions of dollars)
District

Boston ................................................
New Y ork .......................................
Philadelphia ..................................
Cleveland ..........................................
Richmond .......................................
Atlanta ..............................................
7. Chicago .............................................
8. St. Louis ..........................................
9. Minneapolis ...................................
10. Kansas City ...................................
11. Dallas .................................................
12. San Francisco ................................
All districts ..................................
1.
2.
3.
4.
5.
6.

Other
Secured (commer
loans cial) loans

June 20,
1923
20
20
10
10
10
10
4

Invest
ments

— 62
— 12 9
— 12 7
— 1.1
— .9
— 1.8
— 22.7
+ 2.1
+ 2.8
— 17
+ 1-5
+ 1.6

— 2.8
— 38 4
+ 1 4 .4
+ 1.1
— 37
+ 3.2
— 29 3
— 84
— 40
— 12
— 2.3
+ 8.8

— 44
— 4.1
— 3.1
— 3.0
— 4.2
— 4.5
— 13.1
+ 1.5
— .3
— 10
— 24
— 10.4

— 52.0

— 62.6

— 49.0

Reporting member banks:
Loans and discounts:
Sec’d by U. S. securities....
Sec’d by other stocks and
bonds ...................................
All others (commercial)___
Total ....................................
Investments ...........................
Total deposits .......................
Federal Reserve Bank:
Discounted paper.....................
Purchased paper .......................
United States securities...........
Total earning assets.............
Federal res. note circulation..
Total deposits ...........................
Total reserves...........................
Reserve ratio.............................

Latest*

Four
weeks
ago

Number
of
reporting
banks

Eight
weeks
ago

$19

$18

250
356

263
342

270
332

$625
312
806

$623
315
789

$620
308
774

$71
20
18

'$67
21
25

$52
24
25

$109
201
113
22 0

70 . 0 %

Philadelphia ...............
Scranton ......................
W ilk es-R a rre .................

Williamsport ...............
Wilmington .................
York A .........................
Other cities .................

* For reporting member banks Tune 13: for Federal Reserve Bank
June 20.

$92.77
80.13
86.24
82.71
86.40
93.49
97.71

$101.10
86.75
85.47
82.27
86.86
92.51
97.57

5
5
6
3
9
6
6
5
4
5
5
14

Per cent increase or decrease
June 1, 1923, compared with—
May 1,
1923
1.5
— .9
.8
1.6
.1
.8
— .4
— .1
.0
.8

—1.0
2.2

June 1,
1922
12.4
7.9
10.8
38.6
5.6
9.2
13.3
1.1
7.3
18.9
13.1
9.5

June 1,
1921
19.1
— 2.7
4.2
50.7
6.6
21.1
11.9
7.3
12.9
20.2
21.9
13.0

Sales of bankers’ acceptances by five dealers operat
ing within the Third Federal Reserve District, aver
aged $1,749,000 weekly in the fourBankers*
June
acceptances weeka period endingincrease 13. This
was considerable
over the
figures for the previous period, but was less than the
amounts sold early in the year, and in the correspond
ing period a year ago, when sales averaged $3,010,000.
Demand for bills is only fair and is concentrated on the
shorter maturities. Offering rates remain at 4 and 4%
per cent. Sales and purchases by the five dealers were
as follows:

$101
$113
199
202
113
118
231
227
73.8%
70.9%

A further decrease in the prices of industrial stocks
took place in the month ending June 20, and various
classes of bonds, with the exception of
Securities Liberty bonds, also declined. Compara
tive averages of security prices follow:

$90.81
80.60
85.74
82.24
86.07
93.17
98.14

Savings deposits
Third Federal Reserve District

Banking statistics
Third Federal Reserve District
(000,000’s omitted)

Two
months
ago

Savings deposits in the Third Federal Reserve Dis
trict as reported by 80 banks increased 0.6 per cent dur
ing the month of May. Owing to the inSavmgs elusion of a municipal deposit of large
p
size in Harrisburg and the merger of a
Reading bank with a bank not previously included in our
reports, it appears that this figure is somewhat con
fusing. If we should eliminate the effects of these items
we would find an increase of only 0.3 per cent during
May and of 7.5 per cent as compared with the figures
of June 1, 1922. Because of these changes, percent
ages for Harrisburg, Reading, and the grand total have
been omitted in the following table:

Discounted bills held by the Federal Reserve Bank
of Philadelphia amounted to 71 millions on June 20, as
compared with 62 millions on May 16. Holdings of
acceptances and United States securities declined from
47 to 37 millions in the same period, and the circulation
of Federal reserve notes from 202 to 201 millions.
i

industrial stocks .................
railroad stocks ...................
first-grade rail bonds...........
second-grade rail bonds. ...
public utility bonds ...........
industrial bonds .................
Liberty bonds ......................

Month
ago

$1,514,000
646,000
1,208,000
2,424,000

$235,000
337,000
116,000
182,000

$320,000
260,000
525,000
642,000

1923:
May 17 to June 13...............
April 16 to May 16...............
March 12 to April 15..............
February 12 to March 11___
1922:
May 15 to June 11...............

the figures being $3,257,500 and $2,845,000 respect
ively.
Rates at which sales were made ranged from 4J4 to
5j/2 per cent. The amount sold at
per cent was
per cent of the total, and that at 5j4 per cent only
yA of 1 per cent of the total. Of the remaining 98 per
cent the greater part was sold at 5 per cent.

Sales to Purchases
others

$827,000

$2,949,000

o'
8

Sales to
F. R. Bank

Weekly averages for period

RETAIL TRADE
Reports from retail stores indicate that June sales
will show a healthy gain over those of June, 1922.
Though consumers are exercising care and demanding
value, they are purchasing with considerable freedom,
and the articles in demand embrace practically all
classes of merchandise. Retailers report that they are
experiencing no difficulty in obtaining goods and that
quotations are no higher than they were a month ago.
In some lines they are offered concessions in price,
especially on certain silk and cotton fabrics.
The table on page 9, compiled from reports of retail
establishments in the Third Federal Reserve District,
shows that in May business was larger by 17.3 per cent
than in May, 1922. Notable increases were made by
stores located in coal, railroad, and iron and steel cen
ters. Last year, strikes on the railroads and in the coal
mines retarded business, and production of iron and
steel was on a smaller scale. Credit houses continue to
show satisfactory increases.

Acceptances executed by twelve banks in this district
declined slightly from $3,767,000 in the month ending
May 10 to $3,743,000 for June 10. A year ago the
amount was $4,612,000. Wool, cotton, hides, skins,
and silk are among the more important commodities
involved in local acceptance transactions.
Foreign exchange rates
Noon cables

Par
value

June 20,
1923

May 20,
1923

June 20,
1922

London ................. $4.8665 $4.6229 $4.6296 $4.4236
.0865
.0667
Paris ..................... .1930 .0626
Antwerp ............... .1930 .0534
.0822
.0574
.0489
Milan ..................... .1930 .0457
.0486
Berlin ................... .2382 .000009 .000020 .003144
Vienna ................. .2026 .000014 .000014 .000068
.3834
.3915
Amsterdam .......... .4020 .3922
.2123
Copenhagen ........ .2680 .1794
.1861
.2669
.2552
Stockholm ............ .2680 .2649
.1525
.1555
Madrid .................. .1930 .1487
.1804
.1894
Berne ................... .1930 .1797
.8034
.8174
Buenos A ires....... .9648 .8068
.7832
Shanghai ............. .7082 .7245
.7438

Some dealers report that their sales of commercial
paper have increased in June, but others say that the
* market is not active and that their sales
paper ^ °
Pr°bably be no larger than in May.
Buying continues to be spasmodic
rather than regular, but the number of banks that have
purchased is said to have increased in recent months.
The supply of paper is increasing, and brokers’ lists
are fuller than they were a month ago. Rates have
not changed, the bulk of the transactions being at 5
and 5j4 per cent. Early in June, however, the rate
on a number of names that had been held at 4j4 per
cent was changed to 5 per cent, and freer sales re
sulted. But later in the month some paper was again
offered at 4j4 per cent.
During May six dealers in this district sold paper to
the amount of $6,102,500, as compared with $7,932,500
in April and $9,588,000 in May, 1922. Three of these
reports show that sales were larger in Philadelphia
than outside, but the other three showed just the re
verse. For the first time since last October, total sales
in Philadelphia were larger than those outside the city,

WHOLESALE TRADE
The heavy employment and high wages that have re
sulted from the prosperous condition of manufacturing
industries during the past spring, have caused the May
sales of all the reporting wholesale lines to exceed those
of May, 1922. Although a small part of the gain over
last year must be attributed to higher prices, the actual
physical volume of sales has increased greatly. The
chart on page 11 shows the relatively large volume of
business in wholesale groceries that has been done in
this district during the past 8 months. In all lines,
the ratio of accounts outstanding to sales was lower in
May than in April, but only in drygoods and boots and
shoes was it smaller than in May, 1922.
Although wholesalers have had considerable diffi
culty this spring in moving their goods, the warm
weather in June caused the spot deDrygoods
mand to improve decidedly. Business
in May was only fair, but sales ex
ceeded those in April by 2.0 per cent, and those in May,
1922, by 32.6 per cent. Specialties in voiles, swisses,
and tissues are more active than staple wash goods.
Like most of the latter, ginghams have been inactive.
The majority of wholesale drygoods houses have
booked a considerable quantity of orders for fall de
livery. Those that have booked fall business report
that about 10 per cent of their orders are to be delivered

Retail trade
Third Federal Reserve District
C o m p a r is o n OF NET SALES

May, 1923
with
May, 1922

All reporting firms...................
Firms in—Philadelphia ...........
—Allentown, Easton
and Bethlehem---—Altoona.....................
—Chester .....................
—Harrisburg .............
—Johnstown ...............
—Lancaster .................
—Reading ................
—Scranton .................
—Trenton ...................
—Wilkes-Barre ..........
—Williamsport ...........
—Wilmington .............
—York .........................
—All other cities........
All department stores............
Department stores in Phila__
Depart, stores outside Phila__
All apparel stores.....................
Men’s apparel stores
—in Philadelphia....
—outside Philadelphia
Women’s apparel stores
—in Philadelphia........
—outside Philadelphia
Credit houses.............................

+17.3%
+13.1 “
+23.3 “
+19.9 “
+32.3 “
+27.1 “
+27.8 “
+17.5 “
+24.5 “
+33.9 “
+13.9 “
+29.3 “
+ 8.3 “
+17.6 “
+12.1 “
+23.6 “
+16.0“
+11.7 “
+21.6 “
+18.6 “
+ 4.8 “
+15.4“
+25.3 "
+17.8 “
+40.9 “

Jan. 1 to
May 31, 1923
with
Jan. 1 to
May 31, 1922

+ 14.7%
+ 12.4“
+17.9 “
+15.3 “
+44.4 “
+18.4 “
+24.7 “
+18.7 “
+18.8 “
+21.0“
+10.8 “
+21.1 “
+ 7.1 “
+15.6 “
+13.2 “
+16.1 “
+14.0 “
+12.1 “
+16.4 “
+

14 2

“

+10.6 “
+16.3 “
+18.5 “
+ 7.5 “
+31.3 “

o m p a r is o n

sto ck s

May 31, 1923
with
May 31, 1922

May 31, 1923
with
April 30, 1923

+ 12.1%
+ 9.2 “
+ 8.0 “
+ 3.1 “
+31.4 “
+15.9 “
+13.3 “
+12.3 “
+11.9 “
+ 6.6 “
+29.0 “
+12.9 “
+21.8 “
+ 4.5 “
+25.2 “
+13.0 “
+10.8 “
+16.2 “
+ 6.6 “
+18.5 “
+ 6.6 “
— 8.5 “
+14.1 “
+24.9 “

—1.0%
— .4“
+4.6 “
—5.6 “
—2.4 “
—2.6 “
+ .8 “
— .8“
—3.0 “
+2.2 “
—4.0 “
—3.8 “
—1.8 “
—3.4 “
—3.2 “
— .8“
0.0 “
—2.0 “
—2.0“
—6.6 “
—4.7“
—2.7 “
+2.5 “
—3.9 “

Rate

of turnover

Percentage of
orders outstand
ing May 31,
Jan. 1 to Jan. 1 to
1923, to
May 31, May 31, total purchase*
1922
1923
in 1922

3.1
3.8
2.6
2.8
2.5
3.0
2.6
2.2
3.5
3.1
3.0
2.3
1.7
2.5
2.0
3 .1

3.6
2.6
3.5
2.8
1.9
6.9
3.4
'2.7

3.0
3.6
2.2
2.4
2.7
3.0
2.3
2.1
3.0
2.9
3.0
2.4
1.6
2.2
2.0
2.9
3.4
2.5
3.4
2.9
1.8
5.5
3.4
2.3

9.3%
9.6 “
9.8 “
5.2 “
7.3 “
6.8 “
10 .4

“

11.5 “
8.0 “
3.7 "
22.0 “
2 .4 “
6.3 “
2& "

* Times per year based on cumulative period.

in the period from 30 to 60 days hence, and that from
75 to 85 per cent are for delivery further than 60 days
ahead. Much of the fall merchandise will be shipped
in September.
During the past month wholesale stocks have been
decreasing. However, the desire of holders to move
their stocks has caused considerable quantities of cotton
and silk fabrics to be offered at concessions.
Collections are fair.
Although the demand was somewhat “spotty” during
May, the sales of drugs in that month, estimated in dol
lars, were 1.3 per cent larger than in April,
Drugs and 11.4 per cent larger than in May, 1922.
During the early part of June, half of the
reporting wholesale firms found that the demand was
tending to improve slightly, but the others experienced
no change.
During the past month, wholesale stocks in this dis
trict have tended to increase. But so many whole
salers have preferred not to place future orders until

the results of the foreign and domestic collections are
known, that the New York market for crude drugs has
been very dull. As a rule, price changes have been of
small importance, but owing to the short supply of
gum opium, makers of narcotics have advanced their
quotations. Prices of calcium arsenate and blue vitriol
were reduced because of the slack demand. So far, the
supplies of the former have been more than adequate to
care for the needs of southern cotton planters.
Since June 1, collections are reported to have become
slightly less prompt. The ratio of accounts outstand
ing to sales decreased from 139.6 per cent in April to
135.9 per cent in May.
Sales of wholesale hardware, as reported by 34 firms
in this district, increased 3.5 per cent over those of
April, and were 17.4 per cent greater
Hardware than those of last May. Our index of
sales for May was 129, as compared
with 125 for the previous month. Builders and con
tractors continue to be the heaviest purchasers, but

mines also are buying more, and in some communities
farmers are purchasing more freely. Few if any re
quests for cancellations are being received. Stocks
range from moderate to heavy, but reports are con
flicting as to whether they are increasing or decreasing.
Collections are fair and show little change from a
month ago. The ratio of accounts outstanding to sales,
which is indicative of the state of collections, was 153.6
as compared with 158.5 in April.
Sales of shoes at wholesale in June are expected to
show an increase over those of the same month last
year, and in this respect will resemble the
Shoes sales of recent months. White leather shoes,
although making a late start, have sold well,
and wholesalers report that their stocks of these are
depleted. Business is also good, for this time of the
year, in suede and satin shoes for women; and even of
staple lines a fair quantity has been sold. Retailers had
allowed their supply of the latter to become so small
that a few sales made it necessary for them to replenish
stock. Collections, which were better in May than in
April, have shown further improvement during June.
Stocks in wholesale houses are reported to be light or
moderate, and retailers also are said, as a rule, to be
carrying moderate stocks. Cancellations have been ex
ceedingly few, in consideration of the lateness of the
season and the rapid changes in styles.
During May, sales in this district, as reported to the
Federal Reserve Bank, increased 5.3 per cent as com
pared with April, and 24.0 per cent as compared with
May, 1922. The ratio of accounts outstanding on May
31 was lower than in either April, 1923, or May, 1922,
as is shown in the table below.
During June, wholesale groceries have been in good
request. Of the firms reporting to this bank, about
half found that the demand remained
Groceries unchanged, but with the others it was
better than in May. With the exception
of orders booked for new pack goods to be shipped in
October, November, and December, nearly all of the

business is for spot delivery. Of the orders in the
hands of wholesalers, those for delivery in 30 days
average 93 per cent; in 30 to 60 days, 11 per cent; and
after 90 days, 8 per cent. In the table below are listed
the articles or classes of merchandise that were men
tioned as the best sellers during the early part of June.
Commodities

Number of wholesalers who report
them active
This month

Sugar ........................................
Canned vegetables .................
Canned fruits .........................
Canned goods, in general. ...
Cereals ......................................
M ilk ......................................................
Beverages ................................
Coffee .......................................
Flour ........................................
Soap ..........................................

Last month

14
13

0
18
7
12
5
5
0

11
8
7
7
3
3
2

2
2
3

As seen in the charts on page 11, sales usually in
crease in May and June. The only exception during
the last four years has been in the dollar sales in May,
1921. Although the sales of 1919 and 1920, expressed
in dollars, greatly exceeded those of the average month
of 1922, as indicated in chart number one, prices were
then so high that the physical volume of business,
shown in chart number two, was much smaller than
that of the present time. However, the sales in June
and July, 1920, were so heavy that the volume of busi
ness in each of those two months exceeded that in any
month thereafter. Sales by wholesale grocers in May
of this year were 6.1 per cent larger than in April,
and 15.8 per cent greater than in May, 1922. The gain
in dollar sales over those of last year is larger than the
actual increase in the physical volume of business, be
cause in the meantime prices have advanced. The in
dex of grocery sales compiled by this bank was 118
for May, as compared with 113 for April.

Wholesale trade
Third Federal Reserve District
Percentage of increase or decrease in
Number of
reporting
firms

Accounts outstanding
May, 1923, compared
with—

Net sales
May, 1923, compared
with—

Ratio of accounts
outstanding to
sales

Apr., 1923

Boots and shoes..........
Drugs .........................
Drygoods ...................
Groceries ...................
Hardware .................

14
16
20
51
34

May, 1922

Apr., 1923

May, 1922

May, 1923 Apr., 1923

May, 1922

+5.3%
+1.3 “
+2.0 “
+6.1 “
+3.5 “

+24.0%
+ 11.4 “
+32.6 “
+ 15.8 “
+ 17.4 “

-5.2%
—1.9 “
—5.8 “
+1.2 “
+1.1 “

+12.2%
+25.7 “
+21.3 “
+20.4 “
+20.0 “

240.9% 265.7%
135.9“ 139.6 “
238.2 “ 258.0 “
103.4 “ 107.8 “
153.6 “ 158.5 “

279.8%
123.3 “
260.5 “
102.0 “
151.5 “

DOLLAR SALES OF WHOLESALE GROCERIES
THIRD FEDERAL RESERVE DISTRICT
THOUSANDS
OF

DOLLARS'

1
3,986

150

iff

lO O

2,659

1,329
__ Above overage
EM3 Below average
—— lrcdex numbers of price of food
products- Bureau of Labor Statistics
1919

1920

1921

1922

1923

Large sales in 1919 and 1920 are m ainly due to higher prices prevailing
then. Index represents m onth ly sales of 35 reporting firms.

Source—Federal Reserve Bank of Philadelphia

Although one-third of the wholesalers reporting to
this bank indicate that stocks have not changed, the
majority state that they are decreasing. During the
month, prices of canned vegetables, cheese, syrup, tea,
and salt have advanced, but quotations on evaporated
and canned fruits, soap, flour, and sugar have declined.
Stocks of canned peas and of most sizes of canned toma
toes are small and prices are firm. According to the
revised figures of the Department of Agriculture, this
year’s tomato plantings are estimated at 272,050 acres,
as compared with 224,660 and 87,240 acres in 1922 and
1921 respectively. Flour prices declined, largely on
account of the absence of an export demand, and sugar
quotations were reduced because of the accumulations
of unsold stocks at refineries.

Physical volume estimated on basis of average of food products prices
In 1922. Index represents m onthly sales of 35 reporting firm s.
Source—Federal Reserve Bank of Philadelphia

CONFECTIONERY
At present the confectionery business is seasonally
dull, and the demand is not as heavy as it was a month
ago, though most manufacturers report that it is greater
than it was a year ago. The manufacture of many
candies that are not salable in warm weather has been
discontinued, and for this reason production at some
factories is light. Buying of candies in large cities
has fallen off heavily because of the warm weather, but
this loss of business has been partly made up by large
purchases for summer resorts. Manufacturers, how
ever, state that the call for their products is fairly good,
considering the season. Hard and soft candies, which
are marketable during the summer months, are in good
demand. Other candies that are salable chiefly in cool
weather are in light request, although mountain resorts
have placed some fair sized orders for these. Pro
ducers of bar chocolate, baking chocolate, marshmallow
whip, and chocolate coating state that the demand is
fair. Operations at confectionery factories vary from
35 to 90 per cent of capacity, the average for this dis
trict being about 70 per cent. Manufacturers report
that all orders on their books are for immediate ship
ment. A few cancellations and some requests for post
ponement of shipments are reported, but these are not
of large proportions.
On June 1 many manufacturers advanced prices from
2 j/2 to 10 per cent on piece candies and chocolate coat
ing. Very few, if any, have raised their prices on box
candies over those of a year ago. Sugar during the
month has held relatively firm, but cocoa beans have
shown further weakness. The increases in candy
prices that have taken place since the beginning of the
year have been caused chiefly by higher priced sugar
and increased labor costs, as there have been no ad
vances in other commodities used in candy manufacture.
Finished stocks at the factories are moderate and are
remaining stationery. Although some manufacturers
are buying sugar only from hand to mouth, the major
ity have fairly large supplies on hand, and in general
the stocks of raw materials are not heavy.
Both skilled and unskilled workers at many factories
are still scarce, although because of the slackening in
demand some factories are now adequately supplied.
Girl workers, in particular, are difficult to obtain. A
few candy makers granted wage advances of from 5 to
10 per cent during the month, but the majority report
that their wage scales are unchanged.
Collections are only fair, and many firms report that
they are slower than they were a year ago.
BUILDING
The value of building permits issued during May in
fourteen cities of the Third Federal Reserve District
declined for the second consecutive month. The
chart on page 12 shows how sharp has been the fall

since the maximum of $31,844,831 was reached in
March. It will be noted, however, that despite the
decrease, the value of permits in May was considerably
greater than that for the same month in the preceding
three years. In only two cities of the district, Atlan
tic City and Lancaster, was the value of permits greater
than in April. The table below shows the number
of permits and their estimated value for May, 1923,
and for May of last year, together with the cumulative
totals for the first five months of both years.
Although a few manufacturers of bricks report a
slight decrease in the number of inquiries received dur
ing the past month, the great majority are
Bricks still receiving substantial business, and in
practically all cases sufficient orders are on
the books to insure operations for several months.
Certain manufacturers, especially in Philadelphia, are
loading bricks from the kilns as soon as they become
sufficiently cool. As might be expected under such cir
cumstance, stocks are light, or at the best, only moder
ate. Prices are quite firm, but there have been no
advances during the month.
Operations do not average over 80 per cent of
capacity, largely because of scarcity of labor, both
skilled and unskilled. In a few cases wages have been
increased by about 5 per cent, but in general there has
been no change since last month.
Collections for the most part are good, although
some manufacturers consider them to be only fair.
Opinion differs as to whether collections are more
prompt or slower than they were a month ago, but the
majority believe they are better than they were at this
time last year.

Despite the sharp decrease in the value of perm its issued during May,
the total was greater than that for the corresponding
m onth of recent years.

Source—Federal Reserve Bank of Philadelphia

Lumber manufacturers and wholesalers report a de
crease in demand during the past month, but retailers
continue in general to receive good busiLumber ness. With wholesalers most orders are
for prompt delivery, but some mills have
orders for future delivery. Prices on a few grades of
soft woods have weakened somewhat, but hardwoods on
the whole have been firm and show little change. Con
siderable quantities of western woods are coming in and
are moving well. The better grades of cypress are in
good demand, as is yellow pine flooring; but North
Carolina pine is not in as good request as it was a few
weeks ago.

Building permits
Third Federal Reserve District
May, 1923

May, 1922

Permits Operations lEstimated cost Permits Operations Estimated cost

Allentown ................. 114
Altoona ....................... 253
Atlantic City ............ 180
Camden ...................... 115
Harrisburg ................ 111
Lancaster .................. 144
Philadelphia .............. 1,566
Reading...................... 405
Scranton ................... 210
Trenton ...................... 223
Wilkes-Barre ............ 159
Williamsport ............. 149
Wilmington ............... 130
York ........................... 272
Total ...................... 4,031
Does not report operations.

$352,115
137
365,763
259
180* 1,086.982
1,143,725
172
267,050
122
435,925
189
2,298 12,709.660
591,975
456
351,852
210*
714,017
284
254,777
159*
34,942
175
231,977
130
150,279
272
5,043 $18,691,039

98
313
413
124
94
87
1,483
361
188
168
179
148
118
217
3,991

117
317

iii

130
87
2,288
387
188
225
179
148
118
217
4,532

$397,900
424,2%
943,114
184,016
319,075
157,195
8,872,050
532,400
619,052
651,294
269,058
190,404
163,118
121,841
$13,844,813

January to ^lay inclusive
1922
1923
Permits Estimated cost Permits Estimated cost

445 $2,766,620
400 $1,268,175
837 1,619,302
870 1,087,802
1,314 5,091,707 1,676 4,058,286
424 4,324,187
459 1,908,476
445 4,2%,175
429 1,639,455
986,695
446 1,555,460
398
5,980 66.808,220 6,580 39,238,425
1,419 2,675,905 1,457 2,210,471
626 1,711,760
557 1,318.783
725 3,340,068
619 1,706,693
1,774,%5
486 1,213,214 621
907,000
366
609,682
466
4% 1,733,615
397 1,613,793
418,447
739 1,215,755 610
14,748 $98,%1,670 15,539 $60,137,466

Stocks in most cases are only moderate. Retailers viously guaranteed their prices until August 30, an
purchased heavily in January and February, which was nounced on June 11 that this guarantee would be ex
unusually early, and recently they have been so busy tended to November 30. This action has stabilized the
making deliveries that they have purchased but little. market considerably.
As soon as they have an opportunity to take stock, how Stocks of both finished goods and raw materials are
ever, it is expected they will place substantial orders. only moderate, and are either stationary or decreasing.
Mills are operating at a high rate, but they find it diffi The majority of plants continue to operate at capacity,
cult to obtain sufficient unskilled labor. Here and there and, as in other industries, there is a shortage of labor,
wage increases of from 10 to 15 per cent have been skilled workers being especially scarce. One or two
granted to both skilled and unskilled workers.
small wage increases have been made since last month.
Collections are fair. Wholesalers state that collec Collections vary considerably but in general may be
tions have changed but little since last year, but manu classed as fair.
facturers find them more prompt.
Manufacturers of gas and electric fixtures are re
The majority of glass manufacturers report good ceiving only a fair amount of business, but in some
business, but makers of plate and window glass have
cases the decreases are only seasonal,
noted a slight seasonal decline. At this time ua.s .arlr f ec~ and they are optimistic regarding connc x ures ^[j£{ons jn
faip The majority of
Glass most of the houses and buildings that were
started last year are enclosed, and those that orders are for shipment within sixty days. Few if
were commenced this spring are not yet ready to be any cancellations have been received, and there have
glazed. Manufacturers, however, are busy with orders been no requests for postponement of shipments.
for delivery later in the year, and large quantities of Prices in general have not changed during the past
goods are being shipped on past contracts. Some month, and although in certain lines quotations are
builders have already bought their requirements for the quite strong, in others, where competition is keen, they
fall and are leaving the glass in the manufacturers’ are rather weak. Stocks of both raw materials and fin
warehouses. The shortage of plate glass has been ished goods are only moderate, and are being held sta
somewhat relieved, but there is still a large demand. tionary.
Prices, however, are from 10 to 15 per cent lower than Operations range from 60 to 80 per cent of capacity.
they were a few weeks ago, partly because of heavy Numerous reports are made of scarcity of skilled labor,
importations from Europe. Automobile manufactur and a few wage advances of from 3 to 10 per cent have
ers have been taking an important part of the domestic been made during the month. Unskilled workers are
output, and this, together with the demand from build for the most part in ample supply, but in certain in
ers, had forced prices to a high level.
stances their wage scales have been increased slightly.
Operations are at capacity in most cases, but certain Collections are only fair, or in some cases poor, and
bottle and stained-glass manufacturers are working at the majority of manufacturers find them to be slower
only 65 or 75 per cent of capacity. In some instances, than they were either last month or a year ago.
there is a slight shortage of both skilled and unskilled
IRON AND STEEL
labor, but few wage increases have been granted.
Stocks are light, in general, and in those factories that Although many branches of the iron and steel in
manufacture only on specification, they are of course dustry continue to enjoy substantial business, there is
nil. Raw materials are being carried in moderate sup a noticeable increase in the number of firms who re
ply, and no difficulty is found in obtaining them.
port the demand to be only fair. Pig iron has been in
Collections range from fair to good, and show little poor request for several weeks, and even the recent
change from those of last month or of a year ago. concessions in price failed to bring out any great num
Although paint manufacturers are now entering the ber of buyers for the third quarter. Manufacturers
season in which demand may be expected to fall off of iron bars have had fair business, the chief purchasers
somewhat, only a few operators report de being railroads and locomotive builders. With foun
ta in t creased sales during the past month. The dries, business varies considerably, some describing it
continued good business has been gratifying, as good, and others as only fair. Railroads, locomotive
and there is considerable optimism regarding the fall. builders, and public utilities have been the heaviest
The majority of orders are for prompt shipment, and purchasers. Certain foundrymen note that orders re
ceived are for smaller quantities than was customary
practically none are for delivery beyond sixty days.
Since the advance was made on ready-mixed paints a few weeks ago, and buyers are not requiring so
a few weeks ago, quotations in general have been firm. prompt delivery. Many manufacturers of fabricated
Prices on several raw materials, such as turpentine and steel are receiving fewer inquiries, but the volume of
linseed oil, are lower than they were earlier in the business on the books is satisfactory.
spring, and pig lead also is down from the peak price The decrease in the orders for structural steel is
reached a few weeks ago. Corroders, who had pre- shown in the chart on page 14.
13

operations would be not far from 90 per cent of
capacity.
Quotations on several products are slightly easier.
As was generally expected, a slack demand, and possibly
lower prices for coke, brought about a reduction of
$2 a ton on eastern pig irons during the early part of
June. The chart below shows the composite price of
pig iron and quotations on spot coke since 1920. It
will be noted that pig iron quotations during this period
have quite generally followed the same course as have
coke prices.
PRICES OF PIG IRON AND COKE
DOLLARS
TOM

50
40
30
20

The decrease in building activity is indicated by the unusually large
falling off in sales of structural steel during the
last two m onths.
Source—Department of Commerce

It will be seen that bookings reached a peak in March,
and have since been declining. Machinery and ma
chine tools are being sought in fair volume by railroads,
public utilities, and general industries, and power
equipment is in good demand. In general, our reports
indicate that although most branches of the industry
have substantial orders on their books, inquiries and
new business are considerably less than they were a
few weeks ago. Much of the decline is seasonal, it
is true, and the majority of manufacturers are looking
forward to a quickening in business once the hot weather
is over. The falling off in activity is reflected in the
report of the unfilled orders of the United States Steel
Corporation, which on May 31 were 6,981,351 tons,
or 307,158 tons less than at the end of the previous
month. This marks the second successive month in
which the Corporation’s unfilled orders have shown a
decline.
In spite of the gradual decrease in demand, produc
tion has been maintained at record levels. Pig iron
output in May reached 3,867,694 tons, or 317,958 tons
more than in April, and for the third month in suc
cession exceeded all previous totals. Fourteen furnaces
were blown in during the month and three were blown
out, leaving 321 active on June 1. In this district on
the same date 42 furnaces were in blast, a gain of
1 over the previous month. The production of steel
ingots, by the 30 companies which in 1922 made 84.13
per cent of the total, reached the unprecedented figure
of 3,537,753 tons. There is no doubt that the output
for all companies was over 4,000,000 tons. The
average percentage of operations of firms reporting to
us is about 80. Many of the larger plants, however,
are working at a much higher figure, and taking these
into consideration, it is probable that a fair average of

w PicJ ir o n

A ..

lO
5
4
3
2
1

••••*

1920

F u rn a ce

***•

1921

cok e

1922

''" X

1923

During the past four years quotations on pig iron and coke have fol
lowed the same general trend, but coke prices
have fluctuated more violently.
Source—“Iron Age
"

2X Philadelphia iron is now quoted at $30, furnace.
Slight reductions have been made on billets, and scrap
has weakened considerably. But the composite price
of finished steel, as computed by the “Iron Age,” has
remained unchanged during the past five weeks. The
market on several types of steel is less firm, and it is
now possible to obtain fairly early deliveries at quoted
prices.
The great majority of manufacturers find unskilled
labor extremely scarce, and about half of those report
ing to us have granted increased wages. Foundries in
particular are unable to obtain sufficient laborers. Al
though skilled labor is in better supply than unskilled,
there is a pronounced shortage, and several plants have
advanced their wage scales.
Collections are fair, and the majority of operators
find them unchanged from last month.
COAL
The demand for domestic sizes of anthracite con
tinues to be insistent, orders for stove coal being espe
cially heavy. Steam sizes are still in
Anthracite poor request, and pea coal is not sell
ing as well as it was a few weeks ago.

The tonnage moving to the Lakes is less than in 1921,
but, of course, considerably larger than it was last year
during the strike. Those operators that have the facili
ties have stored considerable quantities of steam sizes.
The majority of mines are working at capacity, but
in some cases labor troubles have caused a reduced out
put. Weekly production has hovered around 2,000,000
tons, except in the week ending June 2, when the cele
bration of Memorial Day reduced the total by about
25 per cent. Estimated production for the past four
weeks, and for the corresponding period of 1922 is as
follows:
Week ending

May 26
June 2
June 9
June 16

........................
.........................
.........................
.......................

1923

1.956.000 net
1.606.000 “
2.046.000 “
2.053.000 “

1922

tons 10.000 net tons
“
8.000 “ “
“ 13.000 “ “
“ 22.000 “ “

mines have closed down, thus releasing cars for other
operations. In spite of these shutdowns, production
continues at a relatively high rate, and during April and
May was higher than for any corresponding period in
recent years, except 1918. Output for the past four
weeks, and for the similar period in 1922 was as fol
lows:
Week ending

May 26
June 2
June 9
June 16

.....................
.....................
.....................
.....................

1923

1922

11,049,000 net tons
10,059,000 “ “
10,708,000 “ “
10,800,000 “ “

4,889,000 net tons
4,616,000 “ “
5,136,000 “ “
5,013,000 “ “

The decreased production during the week ending
June 2 was due to the celebration of Memorial Day.
Mines in this district are working at an average of 60
per cent of capacity. Labor supply varies considerably.
Some operators report a sufficient number of miners,
but others state that even if they could obtain the cars,
or if market conditions warranted it, they could not
operate at capacity because of the scarcity of labor.
The coke market is still dull, and although some con
tracts have been made, the majority of consumers are
buying in the spot market. Spot prices
Coke have declined further during the month,
furnace grade now being quoted at $4.75,
and foundry at $5.50 a ton, as compared with $5 and $6
respectively a month ago. Output of beehive coke fell
off during the week ending June 2, because of the
Memorial Day celebration, but it had previously hov
ered around 400,000 tons weekly. Estimated produc
tion during the last four weeks, for which figures are
available, was as follows:

The reduced output in 1922 was due to the miners’
strike.
Certain operators report a shortage of miners and
miners’ helpers, but in general the supply of labor is
adequate. In most cases the miners appear to be satis
fied, although small outlaw strikes are not unusual. It
is expected that at the tri-district convention, to be held
June 26, the Union will formulate its policy regarding
the terms of the new agreement to replace the one ex
piring August 31. Some observers believe that the re
port of the United States Coal Commission, which is to
be made on July 1, will have some influence upon the
terms of the new agreement.
Quotations on domestic sizes have been firm, ranging
from $7.35 to $12.50 a gross ton, f. o. b. mines, de
pending upon the source of supply. Steam sizes have
weakened in some cases, No. 1 buckwheat being listed
at from $2.75 to $3.50, f. o. b. mines.
There has been no improvement in the demand for
bituminous coal during the past month, and dealers and
19 ........................................................... 411,000
operators are unanimous in reporting a May 26 ........................................................... 415,000 net tons
May
“
Bituminous poor market. Embargoes have been June 2 ........................................................... 395,000 “ “
“
in effect upon shipments to the Lakes, June 9 ........................................................... 416,000 “ “
and this has tended to force southern coal to New Eng
land, where local operators had hoped to find a fair
market. When the embargoes were removed, it was
COTTON
expected that considerable tonnage could be sold in
New England, but it was found that consumers in that In spite of such depressing factors as the curtailment
territory had received fair-sized stocks by water. In of operations in Eastern mills and the condition report
of the Department of Agriculture, which
the Philadelphia district, buyers are taking only small
quantities and show no disposition to place contracts, K a w was better than anticipated, the statistical
the majority of sales being in the spot market. Con cotton position of the old cotton crop was strong
tract prices range from 25 cents to $1 above spot quota enough to raise quotations on spot cotton from 25.30
tions. Spot prices continued to decline during the cents a pound on May 11 to 29.90 cents a pound on
month, Pool 10 being quoted on June 18 at from $2.00 June 11. Prices have been by no means steady, how
to $2.40, as compared with $2.15 to $2.60 on May 21. ever, but have been marked by the fluctuations that are
The supply of cars is somewhat better, because many usual prior to the arrival of the new crop.
15

Supply and takings of American cotton*
Season of Season of Season of
1922-1923 1921-1922 1920-1921
1

In bales

Visible supply, American, at end
of previous season (July 31) 1,968,159 4,112,651 2,943,882
Crop in sight, American, to
June 2 2 ................................................... io s o o 3 7 0 1 0 .3 3 0 3Q7 10.845.869
Total ...................................... 12774.329 14 443 248 13.789.751
Visible supply, American, on
June 2 2 ................................................... 1,210,440 2,688,025 4,510,848
World’s takings of American to
June 2 2 ................................................... 11,564,089|11,755,223 9,278,903
* Figures compiled by New York Cotton Exchange.

Exports of this season from August 1 to May 31
were 974,093 bales smaller than those of a year ago,
but the domestic takings, which have been especially
heavy in the South, were considerably larger. Conse
quently, the total world’s takings of American cotton
to date, as indicated by the table above, are only slightly
smaller than those of the corresponding period of last
season.
In past years, about half of the American production
has been exported, but as shown by the chart below, the
percentage exported during the past ten years has
varied greatly. If exports and domestic takings con
tinue at their present rates for the remainder of the
season, the total consumption will greatly exceed the
1922 crop. Consequently, the carryover to next season
must necessarily be small. Because of the limited
quantity of old crop cotton available, the bidding of
COTTO N
1P R E T
E CN

Am erican production
Exports
Percentage exported

short interests tends to force old cotton to prices rela
tively much higher than those of the new crop.
Unfavorable weather early in the season delayed the
crop at least two weeks, thereby making it more suscep
tible to destruction by the boll weevil. The condition
as of May 25 was reported to the Department of Agri
culture to be 71. The following chart shows the
correlation between the estimated acreages, the condi
tion figures as of May 25, and the final yields in all the
years since 1910. No official estimate of acreage has
yet been made for this year, with the exception of the
preliminary forecast, but private estimates indicate an
increase over last year’s acreage of about 9 per cent.
The correlation between yield and acreage is seen to be
much closer than that between yield and the condition
as of May 25. See chart.
C O TTO N

PRODUCTION

1910 1911 1912 1913 1914 1915 1916 1917 1915 1919 1920 1921 1922 1923

Although the condition of cotton was better on May 25, 1923, than on
the sam e date in the preceding four years, it m ust be noted that
the condition on that date is of less significance in forecasting
the size of the crop than is the acreage planted. The offi
cial estim ate for 1923 has not yet been issued, by the
Bureau of the Census, but reliable private sources
estim ate this year's acreage as 9 per cent
larger than that of 1922.

Source—Department of Commerce

Since May 25, the weather generally has been favor
able. Chopping has been completed throughout the
cotton belt. According to a survey made by Clemson
College, 50,000 negroes have left 41 counties of South
Carolina since November 1, 1922. In 14 of these
counties, 14,722 acres of cotton have been abandoned
largely because of this exodus.
During the past month, the cotton goods market has
continued to be extremely dull, and buying has in general been for immediate needs only. AlLotton
though this lack of demand may be partly
®°° s attributed to seasonal influences and un
In spite of the heavy exports of raw cotton before the war, crops were favorable weather conditions, the underlying reason is
so large that the percentage exported declined steadily. The
ratio line reached its low point in 1917 because little cotton
the disparity in price between old and new crop cotton.
was exported in that year, and its peak in 1921 because
of the exceptionally sm all crop and the con
Print cloths and sheetings were in very poor request,
tracted dom estic consum ption.
but a few orders for the latter were placed by the bag
Source—Department of Commerce
16
1900

1905

1910

1915

trade. Velours and mohair plush for furniture cov
erings have continued in greater demand than tapes
try. A considerable volume of business has been done
in flannels, but the shipping dates of the orders booked
have not been as far ahead as usual. Although sales
of wash goods at retail were stimulated by the recent
warm weather, little of this activity has yet reached the
manufacturers.
During the past month, prices on most cotton cloths
have been reduced, and quotations have tended to fluc
tuate except on certain special lines that are active.
However, prices this spring have been on such a high
level, as compared with those abroad, that exports from
this country have been curtailed. As shown by the fol
lowing table, exports of cotton cloth in April were
nearly 14 per cent less in yardage than those of the
same month in 1922, although the total value was some
what greater.
Exports of cotton cloth*
April
Kind of cloth

Cotton duck .............
Unbleached ...............
Bleached .....................
Printed ......................
Piece-dyed .................
Yarn-dyed .................
April totals ...............
March totals.............
February totals ........
January totals...........

1923
Quantityin sq. yds.

1922
Value

Quantity
in sq. yds.

Value

752,931 $309,810 913,882 $376,450
9,266,388 1,248,051 17,883,444 1,864,529
6,406,130 1,079,367 7,685,683 1,060,127
10,706,685 1,698,871 10,015,490 1,316,444
11,024,768 2,136,157 8,080,295 1,430,995
6,584,528 1,347,774 7,063,236 1,198,591
44,741,430 $7,820,030 51,642,030 $7,247,136
48,885,378 8,418,714 48,406,572 7,112,542
36,751,374 6,207,135 32,707,056 4,812,729
38,892,656 6,399,124 31,037,671 4,549,230

* Department of Commerce.

The curtailment of activity in eastern mills has in
creased, and in this district manufacturers are operat
ing at 65 or 70 per cent of capacity. But mills mak
ing narrow fabrics, specialties, and plush are running
most of their equipment. Practically all of the business
on the books is for delivery within 60 days. Some re
quests for postponed shipments and cancellations have
been reported, but these do not appear to be for large
quantities. Finished goods in mill hands are moderate
and stationary, but stocks of raw material are fairly
heavy and are either stationary or decreasing. Un
skilled labor is now in sufficient supply, although there is
still some scarcity of skilled help. Wages, in general,
have not been changed since last month.
Collections are fair, but tend to become slower.
Cotton yarns continue to be neglected, and there is
little buying except to fill immediate requirements.
Although raw cotton prices have recovCotton
erecj muci1 0f ground lost by the sharp
yarns decjjne April and early May, this has

had little noticeable effect upon the demand from weav
ers. The latter have adopted a waiting policy in the
hope that prices of yarn would decline still further.
Consequently, only small scattered sales are being made,
usually for immediate delivery. Carded yarns consti
tute the bulk of the sales, combed yarns being still in
small request.
Owing to the lack of demand, the prices quoted on
yarns have varied widely, and many sales have been
made at concessions. When raw cotton values com
menced to rise, quotations on carded hosiery yarn
strengthened, but they were later reduced again.
Combed yarn at present can be bought at relatively low
prices as compared with carded.
Stocks of yarns in the hands of dealers are moderate
and in many cases are increasing. Of the orders on
the books, about three quarters are for delivery within
the next 60 days, and the remainder within the succeed
ing month. No cancellations have been received, but
there have been some requests for postponed shipments.
Collections are only fair.
WOOL
The current demand for men’s wear and for dress
goods is light, and few duplicate orders have been re;
ceived. What little business has
Woolen and, 5een done has tended tQward
wors e goo s Specjaitjes rather than staple fabrics.
This dulness, however, has been more pronounced in
men’s wear than in dress goods, since the demand for
the latter has been largely centered in the woolen pile
fabrics, such as bolivias, which continue in great vogue.
The chief interest in dress-goods is still in the finer
grades. Poiret twills are in strong request, but unlike
last year, they do not dominate the field, because of the
increasing popularity of wool crepes.
The lack of demand has been reflected in cancella
tions and in requests for postponed deliveries. The
latter are tantamount to appeals for extended credit.
Although cancellations have been numerous and have
affected as much as one-third of the business booked by
some mills, the evil is but little greater than is normally
to be expected in this month between seasons. More
over, many weavers report that the number of cancella
tions has diminished. About three-quarters of the
orders on the books are for delivery within sixty days,
the remainder being for shipment in the month there
after.
Production has been curtailed considerably. Whereas
a month ago about 90 per cent of the looms in this dis
trict were in operation, mills that manufacture suitings
are now running at only 65 per cent of capacity, and
labor, which last month was scarce, is reported to be
sufficient in the majority of cases. This curtailment,
however, has not prevented some accumulations of fin
ished goods, and where such accumulations have been
17

WOOL
--------------------------------------- -------------- - - E% Wool consumption
73
Pencentocje of active woolen spindles
Pencentooe of active worsted spindles

PERCENT:

31------------n —
-

ijllj

f t

iJ J l
1919

k
ft

n r r

gf§l

'tym.

f f l

w m m m s

•

.. a

- J . __________

.......

‘

i
!

heavy, they have been offered at concessions. The
presence of these stocks, together with the strong re
sistance of buyers to higher prices, has prevented weav
ers from obtaining advances, and during the past month
the level of quotations has not changed. Stocks of
yarn in weavers’ hands are moderately light and are
either stationary or decreasing.
Collections are fairly good, but some mills report
requests for future datings.
During the past month the demand for worsted and
woolen yarns was negligible, and the little business
booked was to cover immediate needs only.
Wool However, this dulness was largely seasonal
yarns an(j Was to have been expected. Nearly all
the business on the books is for delivery within sixty
days, few spinners having orders for delivery beyond
that period. There have been no cancellations, but a
few requests to postpone shipments have been re
ceived. Some duplicate orders were received from
bathing suit manufacturers.
Although a few concessions are reported, spinners’
prices in general have remained firm. Stocks of yarn
in the hands of spinners are moderate, as are also sup
plies of raw materials; but our reports differ as to
whether they are stationary or decreasing.
In spite of the flat demand, nearly all the worsted
spindles in this district are still running on orders
booked previously. Worsted mills, however, are more
active than woolen mills. That this condition is also
true for the country as a whole is shown by the accom
panying chart. Since October, 1922, the activity of
worsted spindles has exceeded that of woolen spindles.
The supply of unskilled labor is reported to be adequate,
but skilled spinners continue to be scarce. In general,
wages are the same as they were a month ago.
Collections are still fairly good.
The Philadelphia raw wool market remains extremely
quiet. Sales have been confined largely to small quan
tities of the finer grades, bought for filling
Raw
and dealers
wool in purposes,the lightweightare now looking
forward to
openings, which
last year began about August 1. After a short period
of moderate activity in the West, buyers refused to pay
the asking prices of the growers, and although the clip
is reported to be little more than half sold, transactions
are almost at a standstill.
Mill consumption, however, is still fairly heavy. As
shown by the following chart, the quantity of wool enter
ing production during the first four months of the year
in those mills that report to the Department of Com
merce has been much larger than during the corre
sponding periods in 1921 and 1922. Some decrease is
to be expected at this time of year because of seasonal
influences, but spinners have been sufficiently active to
consume much of their supplies of raw wool.

f;' ' W 1920

' * " 4

1921

1922

<
1923

__ 1

Owing to the dem and for tweeds last year, the activity of woolen
spindles in this country between March and October, 1922,
greatly exceeded that of worsted spindles; but now the
latter are more active. The consum ption shown is
that reported to the Departm ent of Commerce
by over 600 m anufacturers.

Source—Deportment of Commerce

Stocks of foreign wools in the hands of dealers are
heavy, and the abundant supply of clothing wools of
foreign origin has caused the dealers who needed
money to dispose of them at concessions. For the same
reason, the re-shipment of these wools to foreign ports
has continued. However, in spite of the concessions
in eastern markets and the slight softening tendency
that has been reported in the West, quotations on fine
grades remain firm. The world-wide scarcity of these
wools has been reflected in the strength displayed at
auctions during the past month in England and Aus
tralia.
SILK
The sale of broad silks has continued to be curtailed
because of high prices. Not only are customers afraid
that they cannot resell goods bought at
. present prices, but they fear that, owing to
goo s
unsteadiness of the raw silk market in
the face of the approaching crop, the value of goods
bought now may depreciate while in their hands. As a
result, little fall business has been booked. However,
crepes, especially cantons and georgettes, are selling in
considerable volume, although yarn-dyed fabrics con
tinue to be neglected. Stocks of the latter, which a
year ago were heavy, have been depleted by sales made
at concessions, and since manufacturers have been pro
ducing them in but small quantities this spring, stocks
of yarn-dyed fabrics are now light. About 60 per cent
of the orders on the books are for delivery within 60
days, and some 40 per cent are for shipment within the
succeeding month.
Owing to the lack of demand, manufacturers have
been unable to obtain higher prices, and in general
IS

prices have not changed since last month. But some
concessions have been reported. There have been no
cancellations and almost no requests for postponed
shipments.
The majority of mills are now operating at about 65
per cent of capacity. More than one half of the manu
facturers report that skilled labor is still scarce, but the
majority find that unskilled labor is sufficient. As a
rule, wages have not been changed since last month.
Stocks of finished goods in weavers’ hands are moderate
and tend to remain stationary; but supplies of raw
materials are fairly light and in many cases are decreas
ing.
Collections are fairly good.
During the month, the thrown silk market has con
tinued extremely quiet, except for a few small orders
j,.
to fill immediate requirements. Of the
silk n business on books, practically all is for
delivery within the next two months. Owing
to the scarcity of work and the keen competition, it is
impossible to advance throwing prices. Consequently,
prices are very weak and show a tendency to fluctuate
widely. Few cancellations have been reported, but re
quests for postponed shipments are frequent.
It is estimated that plants are operating only half of
their equipment. Stocks of finished goods and raw
materials are light and are decreasing. Throwsters are
making frequent complaints about the poor quality of
the raw silk, but as the old crop is almost depleted, this
is to be expected. Both skilled and unskilled labor,
though still scarce, is more plentiful than it was last
month. Collections are fair.
Silk imports, stocks and deliveries to American mills*
In bales

1923
May ........................................
April ......................................
March ....................................
February ................................
January .................................
1922
May ........................................
April ......................................
March .....................................
February ...............................
January ..................................
1921
May ........................................
April ......................................
1920
May ........................................
April ......................................
* Silk Association of America.

Imports
during
month

Deliveries Storage at
to American end of
month
mills

25,814
27,414
28,336
33,759
32,593

24,509
38,193
33,515
36,231
34,680

29,962
28,657
39,436
44,615
47,087

34,842
21,438
19,746
19,950
40,177

33,284
24,247
26,651
22,107
33,842

20.826
19,268
22,077
28,982
31,139

31,810
35,585

31,307
31,933

20,541
20,038

20,275
17,008

22,325
25,336

42,407
44,457

Deliveries of raw silk to American mills have de
creased because of high prices. It may be seen from
the preceding table that in May these deliveries declined
more than 35 per cent from those of April, reaching
the lowest point in over a year.
HOSIERY
Sales of hosiery by both wholesalers and retailers
have increased considerably, owing largely to the warm
weather. Some of this gain has been reflected in larger
orders to manufacturers, but the full benefit of the
improvement does not appear to have been felt by them
as yet. The great bulk of the new orders placed, both
for full-fashioned and seamless hosiery, call for early
shipment, though some mills report that they are re
ceiving a fair amount of business for autumn.
The total quantity of wool mixtures for women that
has thus far been bought is much smaller than it was
a year ago, when many mills had taken large orders
for fall delivery; but some manufacturers anticipate
that a good business will yet be done in heavy hosiery
for women, and that when the demand begins it will be
so heavy that it will be difficult to meet it in the required
time. Mills making wool and fibre mixtures for men
have taken considerable business for August and
September delivery, and in fact men’s hose in all fabrics
are in better demand than women’s, misses’, and chil
dren’s or infants’.
Cancellations have increased. Some of these have
been due to the failure of mills to deliver goods on
time, but more are said to be caused by the late start
of the retail selling season and by the fear of buyers
of being overstocked. Priees of silk hosiery are for
the most part unchanged, but quotations for mercerized
and cotton lines have been lowered by a number of
manufacturers. One of the largest producers of
hosiery in this country has announced prices for its
numerous lines for delivery up to October 1. Though
raw materials are higher than when its previous prices
were made, the new offerings are in most instances
priced lower.
Prices of both silk and cotton yarns are lower, and
wool and worsted yarn quotations are barely steady.
The supply of labor is better, though a number of
mills report that it is still insufficient for their needs.
Wages are for the most part unchanged, and the num
ber of advances reported is smaller than it has been in
recent months. Nearly all the advices received by us
state that collections are either fair or good.
According to figures compiled by the Department of
Commerce from the reports of 331 establishments rep
resenting 389 mills throughout the country, hosiery
production decreased from 4,619,585 dozen pairs in
March to 4,268,047 dozen pairs in April. The largest
item in this decrease was in women’s seamless hosiery,
production of which was 1,458,104 dozen pairs in
March and 1,288,961 in April. Shipments, finished

products on hand, orders booked, and cancellations
were all slightly less in April than in March, but orders
on hand at the end of the month rose from 10,729,516
dozen pairs in March to 10,902,679 in April.
Reports from hosiery manufacturers in the Third
Federal Reserve District, tabulated below, show the
conditions that existed during May.
Hosiery industry
Third Federal Reserve District
In terms of dozens of pairs

May, 1923,
May, 1923,
compared with compared with
April, 1923
May, 1922

Firms selling to the wholesale
trade:
Number of reporting firms— 31

Product manufactured during
month ............................................
Finished product on hand at end
of month ....................................
Orders booked during month---Cancellations received during
month ...........................................
Shipments during m onth.............
Unfilled orders on hand at end
of month......................................
Firms selling to the retail
trade:

— 3.6“
— 29.9 “
+118.7 “
+ 3.3“
— 9.9“

+ 6.1%
+20.8 “
+29.3 “
—33.7 “
+ 5.3 “
+49.2 “

Underwear industry
Third Federal Reserve District

Number of reporting firms— 12

Product manufactured during
month ............................................ +
Finished product on hand at end
of month .................................... +
Orders booked during month---- +
Cancellations received during
month ............................................ +
Shipments during m onth............. —
Unfilled orders on hand at end
of month...................................... f +

3.0%
.7“
4.8“
13.8“
2.7“
-6“

next spring’s goods will be opened is largely a matter
of conjecture. At present, labor costs and cotton are
both considerably above last year’s figures, but on the
other hand buyers are strongly opposing an advance.
Cotton yarns are lower than they were a month ago, but
the violent fluctuations in raw cotton cause yarn quota
tions to vary considerably.
Labor is still reported to be in short supply, but no
advances in wages have occurred during the month.
Collections are from fair to good.
Returns from manufacturers in the Third Federal
Reserve District, tabulated below, show that production
of summer underwear during May was larger than that
of April, the difference amounting to 6.1 per cent. But
it was smaller than that of May, 1922. Orders booked
during the month were 15.7 per cent less than in April
and .6 per cent less than in last May; and cancellations
increased 1683.7 per cent, as compared with April. Al
though in percentages this is an exceedingly large fig
ure, in actual dozens the cancellations were 4477 in May
and 251 in April. In the production of winter under
wear there was a seasonal increase of 29.2 per cent, as
compared with April. New orders taken were prac
tically nil.

(In terms of dozens)

+27.1%
—14.0 “
—11.1 “
— .6“
+ 7.3 “
+73.0 “

May, 1923,
May, 1923,
compared with tompared with
April, 1923
May, 1922

Summer underwear
Number of reporting firms— 13

Product manufactured during
month ...........................................
Finished product on hand at end
of month ....................................
Orders booked during month....
Cancellations received during
month ...........................................
Shipments during m onth.............
Unfilled orders on hand at end
of m onth.....................................
Winter underwear
Number of reporting firms—6
Product manufactured during
month ...........................................
Finished product on hand at end
of month ....................................
Orders booked during month....
Cancellations received during
month ...........................................
Shipments during month .............
Unfilled orders on hand at end
of m onth......................................

+ 6.1%
— 9.8 “
- 15.7“
+1683.7“
— 11.9“
- 15.8“

- 1.0%
— 56.0 “
— .6“
+165.9 “
+ 12.2“
+363.5 “

UNDERWEAR
The knitted underwear trade has experienced an
other month of inaction. It is true that some mills
have received a little late spring business, but the
total of these filling-in orders during the past season
has been disappointing. Heavy weight underwear,
+ 292% + 8.7%
considered in the light of new business at the mills,
+ 13.7 “ + 13.0“
is very dull, and repeat orders are not now expected
— 68.5“ — 81.3“
in quantity until early autumn. Jobbers bought suf
ficiently at the opening to be able to await trade de
+ 106.6“ +147.9 “
velopments before completing their quota, and at pres
ent they are more interested in the opening of lines
— 9.5 “ +150.3 “
for the spring of 1924 than in making further pur
chases. The time for this opening has not been de
FLOOR COVERINGS
termined upon, but it is expected that it will be some
time during the latter part of July. Certain of the Most manufacturers of carpets and rugs report that
smaller mills are said to be already showing their lines, not only are new orders decreasing but also that they
but little, if any, buying is reported. The prices at which are receiving numerous requests for postponement of

shipments until after the June 30 inventory period and
a moderate number of cancellations. Buyers have com
menced to complain that this season’s prices are too
high and as most of them have made considerable
purchases they are becoming fearful of finding them
selves overstocked and perhaps facing a lower market
next October. Reports from widely separated parts
of the country that new building operations have been
held up has also tended to curtail buying. But not
withstanding these adverse reports, the mills are run
ning at full capacity and are even in some cases working
night shifts. They are also well supplied with orders for
the near future. Stocks in the hands of jobbers and
retailers appear to have increased somewhat and al
though some mills report that buyers are still urging
prompt delivery, these are now the exception rather
than the rule.
The supply of labor has increased and is now suffi
cient. This gain is ascribed to dulness and consequent
curtailment in operations, in some of the other textile
lines.
Collections generally are good although some report
that they are becoming slower.
Some manufacturers of linoleums say that new
orders are decreasing, but others are still receiving a
large volume of business. All, however, are booked
ahead on practically every grade. Felt base goods are
said to have replaced low grade wool rugs in many cases
and this may account in part at least for the large in
crease in production and sales of felt base goods during
the past year.
The shortage of labor that was reported last month
by linoleum manufacturers is not so marked now and
some state that the number of applicants for work
has greatly increased.

year, is in men’s shoes, which in four months of this
year increased from 29,001,625 pairs to 36,842,000
pairs. Women’s shoes, on the other hand, increased
in the same period only from 36,092,000 to 40,640,000
pairs. These figures are rather surprising in view
of the tremendous variety of styles made for women
in contrast with the much more staple lines for men’s
wear. But they only emphasize the fact we have
previously pointed out, namely that production of
women’s shoes has been made slower and more difficult
by the demand for so many and such quickly changing
styles, and therefore has not kept pace with the large
increase in activity in other branches of the shoe manu
facturing trade.
Factories in this district making women’s shoes
have taken some orders for shipment in July and
August, but very few if any for later delivery. These
orders are mostly for suedes and grain leathers in
the more subdued colors ranging between grey and
brown. Factories producing misses’ and children’s
shoes, although even these are showing some quite
pronounced styles, have been able in certain cases to
book orders as far ahead as October. The great bulk
of the fall business, however, is yet to be placed, and
as many western buyers are expected to visit the eastern
markets in July and to attend the style show in Boston,
shoe manufacturers appear confident that during the
next few weeks they will receive a large influx of
business.
Cuba continues to be the heaviest foreign buyer of
American shoes, and Mexico is second, though far be
hind Cuba. In April, the latest month for which figures
have been published, shipments of leather shoes to
Cuba totaled 472,871 pairs, valued at $959,817.
Shoes are offered at prices which show no advance,
except in some of the novelties, on which the extra
LEATHER
work means extra cost to the maker. Satin slippers
In recent years June has been a dull month in the have also been advanced. Leathers, except in a few
shoe factories; the spring run is being finished and fall of the especially wanted shades and tannages, are
business is either just beginning or has tending to decline, but satin for slippers has risen
Shoes not yet been booked. This year is no ex sharply. Some factories still complain of a shortage
ception, and as production was very heavy of labor in the fitting rooms, but in general the labor
in the first part of the year, the present dulness seems situation is satisfactory and wage increases are few.
unusually great. According to reports issued by the In nearly all the reports received, collections are said
Department of Commerce, the total production of to be either fair or good; but a few firms find them
shoes in the first four months of this year was poor. In the table on page 22 the reports of firms in
128,513,069 pairs, or an average of more than the Third Federal Reserve District are tabulated. It
32.000. 000 pairs per month and an annual rate exceed will be seen that production increased 5.1 per cent
ing 385,000,000 pairs. The largest production for a as compared with April, and 14.7 per cent as com
calendar year for which figures are available was pared with May, 1922.
330.000. 000 pairs in 1919. Thus, if the last eight Shoes at wholesale are seasonally dull, but sales
months of this year show a rate of production equal are still running considerably ahead of those of a year
to that of the first four months, the output will be ago, and repeat orders are in fair volume. From the
55.000. 000 pairs larger than in 1919. In 1922 the table on page 10 it will be seen that sales in May in
total production was less than 324,000,000 pairs. creased 5.3 per cent as compared with April, and 24.0
The greatest gain in output, as compared with last per cent as compared with May, 1922.
21

Boot and shoe industry
Third Federal Reserve District
Number of reporting firms— 33
(In terms of pairs)

May, 1923,
May, 1923,
compared with compared with
April, 1923
May, 1922

Product manufactured during month + 5.1%
Shipments during month................... — 3.5“
Orders booked during month......... —17.3 “
Orders on hand at end of month... + 3.7 “
Cancellations received during month +23.3 “
Stocks (unsold) on hand at end of
month................................................ + .8 “
Number of operatives on payroll... — 2 .0 “

+ 14.7%
+ 11.5“
+ 24.8 “
+ 106.6“
— 67.1 “
— 10.9“
+ 8.8“

With the advent of warm weather during the second
half of May, sales of shoes at retail improved and
since then have been good. Some retailers state that
sales of men’s oxfords have not come up to expec
tations but that the total of sales is satisfactory. The
demand for the bright colors in women’s shoes has de
creased sharply, and the more subdued colors are
gaining in popularity. Suede shoes are among the
best sellers and satins are also in request. As is
usual at this season, sales of white leather shoes are
large. From the following table it will be seen that
sales in May exceeded both those of April and those
of May, 1922, the increases being 16.2 per cent and
16.9 per cent respectively. Stocks, though slightly
larger than they were a month ago, are considerably
lower than they were last year.
Retail shoe trade
Third Federal Reserve District

Sales of nearly all leathers continue to be small and
have been steadily decreasing since March. Con
siderable curtailment in production is
Leather being made, but this will not be apparent
in finished goods, especially in the heavy
leathers, for some time. Prices are nominally un
changed, but the market is now a buyers’ market,
and reasonable bids are seldom declined. Lower raw
stock prices have been largely responsible for the
weakened position of leather. Shoe manufacturers
are as a rule holding back as long as possible before
buying and are then taking only sufficient for im
mediate needs. They feel that the market has turned
in their favor and that they can afford to. wait. Cut
soles are said in some cases to have been offered at
prices below production cost. Stocks being heavy, the
makers were anxious to reduce inventories.
Leather belting is in fair request, but the urgent de
mand has ceased, and belt makers have about caught
up with their orders and are now able to make quick
deliveries. Low grade leather belts are reported to be
replacing belts of other materials in several leading in
dustries, and this has caused a fair demand in a part
of the industry that had been somewhat behind. Ex
perimental tests made by the manufacturers of leather
belting are said by some to be responsible for this
change. Exports of leather belting this year have been
increasing, and the last figures issued, those for April,
show that during that month 98,501 pounds of belt
ing, valued at $960,830, were shipped out of the
country. The figures compare with 86,209 pounds,
valued at $679,398, exported in April, 1922. The
following chart shows that although hides are about
at pre-war levels, and shoulders are selling at a slight
reduction as compared with 1914, butts are about 50
per cent higher than at that time.

(In terms of dollars)
1. Net'sales:
Number of stores reporting—29.
May, 1923, as compared with April, 1923............ +16.2%
May, 1923, as compared with May, 1922............. +16.9“
January 1 to May 31, 1923, as compared with
January 1 to May 31, 1922................................... +10.2“
2. Stocks (selling price):
Number of stores reporting—26.
May, 1923, as compared with April, 1923............. + .7%
May, 1923, as compared with May, 1922.............. — 7.1 “
3. Rate of turnover (times per year based on
cumulative period):
Number of stores reporting—26.
January 1 to May 31, 1923 ...................................
January 1 to May 31, 1922 ...................................

3.4
2.8

Sources—War Industries Board, “Hide and Leather,” “Dun’s Review”

Upper leathers are active only in those special lines
suitable for the prevailing styles of shoes for women,
particularly colored kid and suede calf. Low grades
of calf grain leather^are in increased demand, as these
are being used in the cheaper lines of children’s shoes
in place of side leather. The reason given for this
change is that side leathers are now selling at prices
almost equal to calf, and that the latter is considered
more desirable when prices are approximately the
same. Some sales have been made of black kid in the
large skins, which have been difficult to dispose of.
In order to effect these sales it has been necessary to
make concessions in price. This, however, is by no
means unusual.
Harness leather sales have fallen off sharply, and
some price reductions are reported. The agricultural
districts are said not only to be buying much less, but
are very slow in paying for goods purchased. Lug
gage business has been good, and sales both of trunks
and hand luggage are larger than they were a year ago.
Some makers of bags and suit cases, however, are now
seeking business, and in order to obtain it are willing
to shade prices. Fancy leather articles are selling
well, both for early and for fall delivery, and plants
are running at full capacity.
The following table shows the percentage of in
crease or decrease in the production and stock of
leathers in April as compared with March. Although
production decreased considerably during April,
stocks in most cases increased.
Production
during
month

Backs, bends and sides........................... — 1.1%
Belting butts ..................................... — 13 3 “
Offal, sole and belting ..................... — 2.3 “
Cattle side, upper ............................. — 14 4 “
Calf and kip ...................................... — 11.5 “
Goat and kid ...................................... } * — 1 0 .6 “
Cabretta .......................................................... j

soaked by some of the larger interests. The calf skin
market remained firm for some time on the basis of 18
cents for Chicago city skins. But suddenly one large
holder of these weakened, and the price quickly broke
to 16 cents, and the New York market also recorded
sales at a decline. Packer skins, however, have held
firm, although no business is reported in them. Goat
skin quotations are somewhat lower, except for the few
varieties especially adapted to the manufacture of the
desired colors. It must be remembered, however, that
India, the largest source of our supply of goat skins,
is now in the midst of the poor season, and that in the
opinion of some tanners the decline in price is not suffi
cient to offset the poorer quality of the skins. The fol
lowing chart shows the supply of cattle hides and of
calf and goat skins in this country. The production of
leathers made from hides is subdivided into many
classes, and it is therefore impossible to figure exactly
how many hides were made into leather in April. But
production of calf and kip in that month was 1,384,839
skins, and of goat and kid, 4,122,505 skins. The stock
of calf and goat skins at the end of April was therefore
sufficient for more than two months at the same rate of
production.

Stock at end
of month

{

+ • 5%
+4. 1 “
+ . 3“
— 1. 3 “
-f- .02 “
+ .8“
-5 . 6 “

* Production figures not separated.
Cattle hides and calf and goat skins constitute the raw m aterial from

a great part
made. The stocks of
Exports of all leathers in April, according to figures which considerably of leather isat the com m encem entall of these
are
lower than
of 1921.
Stocks of cattle hides, however, have increased since
prepared by the Tanners’ Council of America, were, on
July 1, 1922.
a quantity basis, 81 per cent of the average monthly
Source—Department of Commerce
shipments before the war.
PAPER
Collections in most leather lines are reported as
either good or fair, but a few firms state they have be In general the demand for paper is still satisfactory,
although the falling off in the sales of many grades
come slower.
The market for hides has been weak and dull, and which became evident last month still continues. The
prices of both Argentines and natives have favored the call for wrapping, kraft, and fibre papers and for card
buyer. Stocks in the hands of the packers boards has been rather light, but many of the mills had
Hides and are saj^ t0 jarger> but tanners seem sufficient old orders to consume this month’s output.
s ins
content to let the market drift. No A few plants have curtailed production and are work
doubt the reason for this attitude is the consider- ing at only from 50 to 75 per cent, but most of the
able reduction in the number of hides now being wrapping-paper mills are operating at capacity,
23

although some of their output is being placed in stock.
The demand for book papers is still good, and most of
the book-paper plants are working at capacity on orders.
However, the mills are able to make more prompt de
liveries than they have for several months. Fine
papers, too, are in fairly good request, and most of the
plants are able to sell their entire output. The buying
season for wall papers for late summer and fall delivery
is now open, and wall-paper manufacturers report that
many orders are being booked and that production is at
capacity. Crepe towels and toilet tissues are not in
such good request as they were last month, and at
present are moving slowly. Board manufacturers state
that their products are in good demand, and the board
market shows little change from last month. Boxboard mills are operating at about 85 per cent of
capacity. Practically all orders for paper, except those
of wall-paper makers, are for delivery within sixty days.
No cancellations of orders have been received by the
mills reporting to this bank during the month. Whole
salers state that the volume of business is satisfactory
and about the same as it was last month, but approxi
mately 10 per cent less than in March, the peak month
of the year. Consumers are continuing the policy of
buying only for immediate needs.
The production of paper in the United States during
the first half of the year has been heavy, and the paper
industry has made a marked recovery from the low
point it reached in 1921. As the following chart shows,
the production of four important grades of paper dur
ing the first four months of this year was considerably
greater than during the same period of 1922 and 1921.

there has been evidence of a slight softening in the spot
market, particularly on wrapping papers. Most grades
of chemical pulps have held firm in price, although
bleached sulphite and bleached soda pulps have weak
ened somewhat. Domestic mechanical pulps have de
clined about 4 per cent in price, because of further
decreases in imported groundw'ood.
Finished stocks at most mills are moderate and are
remaining stationary, although at some wrapping paper
plants finished stocks are increasing. Supplies of raw
materials are moderate, and most mills have contracted
for their requirements for the next three or four
months. Several manufacturers have made long con
tracts for coal because of the favorable prices quoted.
Wholesalers’ stocks are moderate and in many instances
are decreasing.
Unskilled labor is still in scant supply at many mills,
and at some plants skilled labor, too, is scarce. Book
and fine paper manufacturers report that girl workers
are especially scarce. In general, wages are unchanged
at the higher levels established at the beginning of May.
Collections vary from fair to good.

PRINTING AND PUBLISHING
Although the majority of printers report a decrease
in the demand for their products as compared with the
months of April and May, business is considerably bet
ter than it was in June, 1922. Many state that orders
on hand are from 10 to 30 per cent greater than they
were a year ago. However, new business has not been
secured in such large amounts in the latter half of the
month as during the first half, and the majority of
printers expect to curtail their activities at the end of
PAPER PRODUCTION
June or the beginning of July. Purchases from print
ers have been distributed over nearly all lines of busi
ness. Direct-by-mail advertising matter for summer
business has been in good demand, many printers stat
ing that their sales of this form of advertisements have
been larger than ever before. Commercial advertising
work, such as booklets, pamphlets, price lists, etc., is in
greater request than job printing, and the heaviest buy
ers are producers who are at present seasonally active,
such as manufacturers of roofing supplies, road build
ing materials, and machinery, furniture, stoves and
ranges, building materials, soaps and perfumes. Plant
operations vary greatly, but they average about 78 per
cent of capacity.
Newsprint
Book
Wrapping
Fine
Some magazine publishers report that sales of ad
vertising space have remained practically stationary
During the first four m onths of this year the production of paper was
since April, but there has been a decrease in the sales
enorm ous. The increase as compared with 1922 and 1921
has been especially pronounced in the case of
of space in farm magazines. However, there is
book, wrapping and fine papers.
Source—Federal Trade Commission
normally a decrease in the sales of advertising space
during the summer, and the publishers state that the
During the month practically no changes have oc
curred in prices, as all grades of paper and paper board decrease is no greater than they had expected. In fact,
have held firm. This is true of contract prices, but sales are from 2 to 5 per cent greater than they were in
24
THOUSAUDSf

June, 1922. Subscription sales in general show an in A distinct decrease in the call for 15 cent, 3 for 50
crease of about 10 per cent over those of last June, al cents, and higher priced cigars is noticeable, but this
though they are not as heavy as they were last month. has been counterbalanced by an increased demand for
Book publishers find the demand for their products to 10 cent and 2 for a quarter sizes. Several manu
be very good, and they are operating at capacity. School facturers of Class C and Class D cigars have tempor
and text books, encyclopaedias and novels are in great arily stopped the production of 15 cent and 3 for 50 cent
request, and many books for the Christmas buying are sizes and are concentrating their output on 10 cent
now being printed. Lithographers state that the de and 2 for a quarter sizes. The average of plant
mand for display advertising is very heavy and that operation by the large producers is approximately 80
orders for this work show an increase over those of or 85 per cent. Practically all orders are for prompt
previous months. Production of 1924 calendars, too, shipment.
is under way, and most of the lithographers are working Though the demand in April and May was rather
at capacity.
disappointing to many manufacturers, the output of
No changes in the cost of materials have occurred cigars in the United States during the first five months
during the month, as paper, inks, glues, and other mate of this year was considerably greater than during the
rials used by the industry have held firm in price. Print same period of 1922 and 1921. As the following
ers’ prices, too, have been steady, and many firms report chart shows, cigarette production during this period
that severe price cutting is less evident than it was early was enormous and far in excess of the first five
in the year. However, chiefly because of the increased months of 1922 and 1921.
cost of paper, printing and publishing costs are about
5 per cent higher than they were in June, 1922.
The majority of firms report that the supply of
PRODUCTION OF CIGARS AND CIGARETTES
skilled workmen is adequate, although, as usual, there
Cigarettes
C ig a r s
is a scarcity of thoroughly competent operatives. Wage
(small)
(large)
scales remain at the same level as was established by the
Typothetae of Philadelphia two years ago. The supply
1
of semi-skilled and unskilled labor, and girl clerical
workers, however, is not plentiful, and many printers
and publishers report difficulty in obtaining these. In
May several firms made 10 per cent wage advances to
these classes of workers.
Collections vary from fair to good, the majority of
firms reporting that they are only fair.
TOBACCO
Manufacturers of cigars report that orders booked
this month have been larger than those received in
First five months
F irst fiv e months
May, but in general the demand is only Both large cigars and cigarettes have been produced in larger q u anti
Cigars slightly better than it was in June, 1922. tiesspondingthe first of the onthstwo this yearBut cigar the corre
during
five m
of
than in
period
past
years.
output
The large producers of cigars state that
has increased less than 5 per cent as compared with
1922, whereas cigarette production is 36 per
business is good, but the smaller manufacturers char
cent greater.
acterize it as only fair. With the smaller producers,
Source—Collector of Internal Revenue
particularly makers of 5 cent and 8 cent cigars the
demand has been light since April, and stocks on hand In general, cigar prices have remained unchanged
are rather heavy. Consequently, they have curtailed during the month. Tobacco leaf prices, too, are hold
production severely, and are operating at an average ing firm. Manufacturers’ stocks of cigars are moder
of only 65 per cent of capacity. However, the recent ate and are remaining stationary or decreasing
improvement in business makes the outlook more en slightly. The supplies of tobacco leaf held by manu
couraging. Large manufacturers of nationally adver facturers, also, are moderate.
tised brands report that though sales are not as heavy The supply of skilled cigar makers at most factories
as had been anticipated, they are on the whole satis is adequate, but some scarcity of unskilled labor is
factory. The warm weather of this month has stim still noted. Wage scales, on the whole, are unchanged.
ulated the demand, but jobbers’ orders for the summer The majority of firms report that collections are
resort business are smaller than usual. The very from fair to good, and in most instances they are
cautious buying policy of retailers has caused some stated to be more prompt than they were a month ago.
jobbers who have a standing order for a fixed quantity At the close of May many large factors entered the
of cigars weekly, to cut down the size of these orders. Lancaster market and made some big purchases of
25

1
i
1921

1
■
1922

1923

AGRICULTURE
1922 Pennsylvania packed wrappers, but that market
has not shown much activity since. Leaf dealers re The period of prolonged drouth, which has continued
port that buying by manufacturers has unbroken, except for light showers, since early in May
Tobacco j3een pghi- anJ tlia.t the large producers are in nearly all parts of this district, has been distinctly
ea
really the only purchasers. The packings unfavorable to the growth of crops. The yields of
of 1922 Pennsylvania wrappers have appeared on the strawberries, June peas, and asparagus were smaller
market in large amounts and about a month earlier than than had been anticipated in May, because lack of rain
usual. Current quotations on these vary from 26 to fall not only checked growth but caused the withering
30p2 cents per pound, actual weight based on Septem of vines and berries. Pastures are poorly developed;
ber 1, 1923, weights and inspection. Of the total the early hay crops are short; grain crops are below the
amounts that have appeared on the market, leaf dealers average; much replanting of corn and truck has been
report that about 80 per cent was purchased by large necessary, because of poor germination or poor growth;
cigar manufacturers. No 1922 packed fillers have yet and if a heavy rainfall does not occur soon, the yields
been offered in the Lancaster district, and practically will be very small. Early in the month, heavy wind
all of the 1922 fillers in the bundle were bought up sev and sand storms did considerable damage to truck crops
in the southern half of New Jersey, particularly to
eral weeks ago by tobacco manufacturers..
Nearly all of the 1922 Pennsylvania and Ohio to tomatoes and potatoes, which were severely cut by
baccos have passed from the farmers’ hands, probably sand. A big fruit crop, however, is in prospect, and
not more than 5 percent of the crop being still held by the Department of Agriculture estimates that the yield
the growers. Leaf dealers state that not in the past 25 of apples, peaches, and pears in this district will be
years have the growers of Ohio and Pennsylvania to greater than the average, and also than that of 1922,
except in New Jersey where the apple crop is not ex
bacco been sold out as closely as they are now.
On June 8 American importers and cigar manufac pected to be as large as it was last year. Of course,
turers bought 2,750 bales of Sumatra tobacco on that weather conditions will exert a great influence on fruit
day’s sale at Amsterdam, Holland. The average prices yields, and continued drouth may cause the fruit to
paid for American grades were considerably higher drop off the trees. The following tables contain the
than the average of any of the previous sales this year. Department of Agriculture’s estimate of the condition
Leaf dealers report that their sales of Sumatra tobacco and size of the important grain, hay, and fruit crops
this month were heavier than those of a month ago, de in Pennsylvania, New Jersey, and Delaware.
spite record prices. The Rotterdam sales of Java to
Grains and hay June 1, 1923
bacco have opened and about 1,000 bales have thus far
been purchased by Americans. The prices although
W INTER WHEAT
high were much lower than at the Sumatra sales at
Per Estimated production (bushels)
Amsterdam.
cent
S
American packers and dealers curtailed their buying
normal 1923
?
! 10-year
j average
in Porto Rico late last month, and as a result that
market has not been very active. Because of the lack Pennsylvania ................. 83 21,630,000 25,234,000 24,197,000
of buying, prices softened somewhat, although they New Jersey..................... 83 1,294,000 1,540.000; 1,515,000
are still higher than they were last year. Purchases of Delaware ......................... 85 1,517,000 1,766,000 i 1,815,100
the new Cuban (Havana) crop by dealers and packers
OATS
have been heavy in the Vuelta Abajo district, but in the
Remedios and Partido sections buying has been rather
Per Estimated p r o d u c ti o n ( b u s h e ls )
cent
S
light. The prices demanded by the growers in the two
normal
1922
10*year
1923
| average
latter districts—50 to 58 cents per pound—seem to have
effectually stopped buying. A strike of the tobacco
.................
selectors, who demanded a 50 per cent increase in Pennsylvania..................... 86 38,345,000 41,242,00039,393,000
New Jersey
w'ages in the Cuban districts, also contributed to the Delaware ......................... 87 2,071,000 2,232,000 2,242,000
193,000 161,000 148,500
81
halt in purchases. The strike in the Partido section has
RYE
been settled by granting the strikers’ demands. Most
of the Vuelta Abajo crop has been sold by the farmers
Per Estimated production (bushels)
S
cent
in the bundle at close to 1920 prices, but the demand
normal 1923
io?2 ij average
10-year
of the other districts for prices higher than those of
1920 has made the Cuban market less active than usual
i
Pennsylvania .................
8
in June. As a result many of the growers are accept New Jersey..................... 891 3,656,000 3,740,000 4,012,000
ing lower prices and the Remedios crop is now selling Delaware ......................... 90 1,148,000 1,159,000 1,213,000
71,000 70,000 35,200
at about 40 cents per pound.
26

ta t e

109

ta te

BARLEY
Per Estimated production (bushels)
cent
normal 1923
10-year
1922
average

S ta te

Pennsylvania .................

296,000 206,000 299,000

ALL HAY (tame and wild)
Per Estimated production (bushels)
cent
normal 1923
10-year
1922
average

S ta te

Pennsylvania .................
New Jersey .....................
Delaware .........................

3,693,000 4,888,000 4,278,000
349,000 485.000 487,000
95,000 118.000 101,200

78
72
77

An outstanding feature of the Department of Agri
culture’s June 1 estimate is that throughout this district
the apple and peach crops are expected to be bigger
than they were last year, though over the entire United
States they are expected to be smaller. The total apple
crop of the United States is estimated at 168,637,000
bushels, as compared with 203,628,000 bushels last
year; but the commercial crop is estimated at 32,284,000
barrels, as against 31,090,000 barrels in 1922. This
increase in the estimate of the commercial crop is be

cause the quality of the crop is expected to be better
than it was last year. The total peach crop for the
United States is estimated at 46,525,000 bushels, as
compared with 56,705,000 bushels, the final estimate of
the 1922 crop.
The New Jersey Department of Agriculture in its
preliminary estimates states that the acreage planted
to corn is the same as last year, but 11 per cent smaller
than the average area planted for the past ten years.
The acreage of white potatoes planted this season is
estimated at 84 per cent of last year’s, and that of
sweet potatoes at 98 per cent. Reports from all parts
of the Third Federal Reserve District confirm earlier
statements of reduced plantings of many crops, be
cause of the shortage of labor. The Pennsylvania De
partment of Agriculture states that 10 per cent of the
arable land of the state which was worked last year is
idle. In New Jersey a like amount is estimated to have
been left unplanted, and in Delaware about 8 per cent.
Potato beetles, flea beetles, and aphids are reported
to be exceptionally numerous in many parts of the dis
trict, and in some counties the apple scab is widespread.
But in general, insect pests and plant diseases are no
more prevalent than usual; in fact, the dry weather
has prevented the spread of many diseases, as most
fungi thrive only in wet weather. The present sub
normal development of most crops is due entirely to
lack of rainfall.

Fruits, June 1, 1923
APPLES
E stim a te d p r o d u c tio n
Per

S ta te

T o ta l (b u sh e ls)

cent
n o rm a l

1922

1923

Pennsylvania ............................................
New Jersey................................................
Delaware ..................................................

84
78
64

11,623,000
2,160,000
805,000

11,400,000
2,610,000
980,000

C o m m e r c ia l (b a r r e ls)
3 -y ea r
average

10,731,000 1,356,000
2,073,000 468,000
528,000 225,000

Pennsylvania .......................
New Jersey .........................
Delaware ................................
6-year average.

Per

3 -y ea r
average

1,216,000
522,000
213,000

995,000
501,000
163,000

PEARS

PEACHES
S ta te

1922

1923

Estimated production (bushels)

cent
normal

1923

1922

3-year
average

81
84
60

1,863,000
2,281,000
161,000

1,560,000
2,000,000
320,000

1,303,000
1,494,000
332,500

Estimated production (bushels)

Per
cent
normal

1923

1922

75
80
60

647,000
630,000
170,000

405,000
158,000

576,000

3-year
average

547,000
427,000
156,166 *

Condition of minor crops on June 1
Pennsylvania

Delaware

Per cent normal

Crop

New Jersey
Per cent normal

Per cent normal

1923

Blackberries and raspberries.............
Field peas............................................
Field beans..........................................
Pastures ...............................................
Cabbage ................................................
Onions ..................................................
Melons ..................................................
Tomatoes (early) ..............................

1922

10-year
average

1923

1922

10-year
average

1923

1922

10-year
average

93
90
87
77
85
91
84
••

91
95
91
93
94
93
84
••

90
91
88
89
90
93
85
••

91
86
80
72
89
88
84
89

92
91
95
86
86
89
85
88

89
91
88
89
86
90
82
85*

95
85
85
75
84
90
70
••

93
82
90
80

87
86
84
85

82
••

,,
,,

* Three-year average.

In both Pennsylvania and New Jersey, most of the
truck crops on June 1 were below their condition on
June 1, 1922, and below their average condition on the
same date for the past ten years. Only the small fruits
(raspberries and blackberries) were above the average.
Pastures throughout this district are in poor condi
tion. The late spring delayed their development; the
dry weather has stunted growth, and many fields have
been practically burnt up. On account of the high price
of dry feeds, dairymen put their herds on the pastures
rather early, and first and second growth has been prac
tically eaten up. Several county agents fear that pas
tures will be poor all summer, because of this close

cropping. The first cutting of hay has been poor, par
ticularly on light soils, and many farmers who usually
have a surplus for sale will be obliged to buy hay to
feed their cattle. The production of milk this spring,
in several counties, has been lower than that of any
similar period in recent years, because of the scarcity
of dry feeds and pasture.
Within a month the agricultural outlook has changed
from very good to uncertain, but the damage done by
the drouth is not as yet irreparable. A prolonged heavy
rainfall will save most of the growing fields and pro
duce good yields of second early crops and of late
crops.

COMPILED AS OF JUNE 23, 1923

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Full text of Business Review (Federal Reserve Bank of Philadelphia) : July 1, 1923

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