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BUSINESS AND FINANCIAL
CONDITIONS
IN THE
THIRD FEDERAL
PHILADELPHIA
RESERVE DISTRICT
JUNE I, 1921
By RICHARD L. AUSTIN, Federal Reserve Agent and Chairman
FEDERAL RESERVE BANK of PHILADELPHIA
G E NE RAL SUMMARY
EFIN ITE signs of a revival of activity are
still lacking in the industries that supply
equipment and certain classes of materials.
. ron and steel markets continue to be dull and
lnJuiries are very few indeed. Bituminous coal
^Bnes are operating at a fair rate, but there is little
demand for the output. There has been a
federate increase in the contracts for new
building, in keeping with the usual trend,
ut this increase has not been sufficient to put
construction upon anything like a normal basis.
Manufacturers who produce consumers’ goods,
° n the other hand, have in the main received
a Lir number of orders, sufficient in some cases
^?,.Warrant their operating at full capacity.
, bis is particularly true of those turning out
sdk goods, certain grades of woolen and worsted
Materials, and the specialty and semi-specialty
styles of shoes. Ginghams and some varieties
D
PAGE
, .
JSUMBtK
Agriculture............................................ 6
jan kers’ acceptances.......................... 5
Building materials............................... 15
Carpets and rugs................................. 14
Chemicals............................................... 22
Coal, anthracite................................... 7
Coal, bituminous.................................. 8
Commercial paper............................... 5
Cotton, goods....................................... 10
Cotton, yarns........................................ 11
ebits to individual account......... 4
eoeral Reserve banks....................... 26
of cotton goods have also received considerable
attention from buyers.
Reports of April sales by department stores
in this district for the first time in a period of
twelve months show a decline as compared with
sales in the corresponding month of the previous
year. This decline, however, is small, amounting
to .4 per cent, as measured in dollars. Reliable
indexes of retail prices are not available, but it
is reasonable to assume that they have dropped,
on the average, at least 15 to 20 per cent. From
these facts it appears that the public is buying
a larger amount of goods as measured in units
than it was last year. There is little extrava
gance, but people are insisting upon good quality
at a medium price.
Price index numbers have declined further
during the past month, but certain groups of
commodities have shown greater resistance than
TABLE OF CONTENTS
PAGE
NUMBER
Financial conditions.............................
General summary.................................
Glass.........................................................
Groceries, wholesale.............................
Hardware, wholesale............................
Hides and skins....................................
Hosiery....................................................
Iron and steel.........................................
Leather....................................................
Lumber....................................................
Member banks.......................................
Paint.........................................................
Paper........................................................
3
1
16
23
17
20
14
9
19
16
4
17
20
PAGE
NUMBER
Paper boxes............................................
Plumbing supplies................................
Retail trade.............................................
Rubber.....................................................
Savings deposits....................................
Shoes........................................................
Silk Goods..............................................
Tobacco...................................................
Underwear..............................................
Wool, goods............................................
Wool, raw...............................................
Wool, yarns............................................
21
17
5
22
4
18
12
24
15
11
12
12
2
BUSINESS
AND
FINANCIAL
heretofore. Cotton and some grades of wool
have advanced, even though it is generallyrecognized that stocks are large. Raw silks
have weakened somewhat. Hides have gained
slightly, but leathers, with the exception of the
finer grades of calf and kid, remain practically
unchanged. Prices of building materials and
iron and steel have been weak. From these
diverse tendencies and the absence of radical
price changes it appears that buyers and sellers
are maneuvering for a better position from
which to pursue business on a larger scale.
In this connection it is interesting to compare
prices of certain raw materials at present with
what they were at the peak and in July, 1914.
A typical list is given in table no. 1.
All of the commodities mentioned there are
important in the several lines of industry. Large
declines from the peak have been scored by all,
but the relations of commodities to pre-war
prices are by no means in agreement. Heavy
increases in freight rates and labor costs during
the last few years make it difficult to estimate
just what prices should be. Before the war
the price of pig iron per ton was not much higher
than the present freight charges on the materials
entering into a ton of pig. The fuel quotations
— coal, coke and oil— on the other hand, are
given at the sources of these materials.
Data that measure the extent of industrial
activity always possess interest. The figures
given in table no. 2. show the production or
consumption of some of the more important ma
Table no. 1
P ercentage of in
crease OR DECREASE
COMPARED with
Peak prices
Pig iron, basic valley furnace........
Copper, electrolytic —N. Y ............
Zinc—N. Y .........................................
Lead—N. Y ........................................
-5 2 %
—65
Hides—country slaughtered steers
Leather —hemlock sides.................
Cement, Portland.............................
Lumber, hemlock.............................
Bituminous coal, mine....................
Crude petroleum, at w ells..............
Coke, Connellsville foundry...........
Wheat, No. 2 red ....................
Sugar, Cubas raw..............................
Steers, Chicago .......................
—77
—42
—31
—30
—75
—42
—65
—47
—76
—53
—50
July, 1914
+ 77%
— 6
+ 6
+ 15
—75
—51
+ 10
+83
+63
—12
+50
+85
+50
+47
+ 9
CONDITIONS
Table n o. 2
T otal
first four months
1920
1921
Pig iron production,
tons........................
12,109,764
7,142,000
Steel ingot produc
tion, tons..............
11,770,580
6,737,599
Structural steel ship
ments, tons**.......
169,678
118,301
Copper production,
pounds***............. 221,542,000* 185,266,000*
Bituminous coal pro
duction, short tons 173,641,000 129,324,000
Anthracite coal pro
duction, short tons 28,195,000
32,781,000
C rude petroleum
prod, bbls.............. 102,328,000* 114,003,000*
Cotton consumption,
2,250,323
1,608,648
bales.......................
Lumber shipments,
2,615,613*
feet.........................
1.727,654*
Woodpulp produc
895,875
262,332
tion, net tons.......
% in
crease or
decrease
-4 1 %
—43
—30
—29
—26
+ 16
+ 11
—29
—34
—71
* Totals of 3 months
*** 20 large companies
** Members of Bridge Builders’ and Structural Society
terials during the first three or four months of this
year in comparison with the same period last year.
Though these figures are national in their scope,
it seems fair to assume that they are representa
tive of production conditions in this district:
Reductions in wages have been accepted for
the most part, but at least three important
strikes are going on in this district as a result
of attempts to reduce wages. These include
the full-fashioned hosiery workers in Philadel
phia, the carpet weavers in Philadelphia, and the
building trades in Philadelphia and some other
large cities. Employment conditions otherwise
remain about the same as last month, although
some textile plants and shoe factories have add
ed to their personnel.
Failures in the Third Federal Reserve Dis
trict, as reported by R. G. Dun & Company,
are as follows:
N umber
April, 1921..................................
March, 1921...............................
April, 1920..................................
L iabilities
104
63
24
32,227,631
1,082,419
278,334
BUSINESS
AND
FINANCIAL
FINANCIAL CONDITIONS
F
ederal
R
e se r v e
B anks
[ C A N S of the Philadelphia Federal Reserve
Bank on May 18 were $146,965,000, an
Compiled as of May 21,
CONDITIONS
3
increase of $2,469,000 over the holdings on
April 15. This amount is 31 per cent below a
year ago, but is about the average of loans
thus far in 1921. Federal Reserve note circula-
SYNOPSIS OF BUSINESS SITUATION
Third Federal Reserve District
1921
R a w m aterial or
merchandise situation
C ollections
Lowe
Plentiful
Fair
Decreasing
Poor
Slightly lower
Plentiful
Fair
Ample
Coal, anthracite.
Good
Slightly higher
Fair
Accumulating
Coal, bituminous__
Poor
Sar
Fair
Ample
Coke.
Negligible
Lower
Plentiful
Poor
Heavy
Cotton goods.
Poor
Firm
Plentiful
Fair
Large supply
Cotton yarns.
Slight improvement
Firm
Plentiful
Fair
Sufficient
G lass..
Poor
Lower
Plentiful
Fair
Adequate
Groceries.
Poor
Ixtw
er
Plentiful
Fair
Sufficient
Hardwar
Fair
Lower
Plentiful
Fair
Light
Cotton—“spotty
Silk—very good
Very good
Plentiful
Firm
Firm to slight increase Plentiful
Firm
Fair to good
Fair to good
Heavy
Low
Depleted
Iron and steel.
Negligible
Slightly lower
Plentiful
Poor
Accumulating
Leather
Improving
Upper leather higher Sufficient
Sole leather firm
Good
Ample
Poor
Lower
Fair
Heavy
Fair
Lower
Plentiful
Fair
Light
Poor
Lower
Plentiful
Fair
Sufficient
Paper boxes................
Slight improvement
Lower
Plentiful
Fair
Light
Plum bing..
Poor
Lower
Plentiful
Fair
Ample
Good
Ample
B usiness
D emand
Carpets and rugs....
Increasing (slightly)
C hem icals..
Hosiery— Seamless {
hull fashioned. .
J o s k i n s and hides Good
P rices
Higher
F inished
stocks
Rubber.
Fair
Lowrer
Plentiful
Fair
Sufficient
Shoes..
Good
Slightly lower
Sufficient
Fair
Ample
Silk goods
Good
Firm
Plentiful
Fair to good
Tobacco.
Improving
Firm
Sufficient
Good
Smaller supply
Improving
Decreased
Firm
Firm
Plentiful
Plentiful
Fair to good
Fair to good
Conflicting estimates
Low'
No change
Plentiful
Good
Low
Poor
Steady
Plentiful
Good
Fair
No change
Plentiful
Better
I Low'
4
BUSINESS
AND
FINANCIAL
tion was $229,259,000 on May 18, a decline of
$6,556,000 or 2.8 per cent, from Apnl 15. Total
reserves were $180,864,000, a drop of 3.9 per
cent, and the reserve ratio declined from 54.8
per cent to 53.8 per cent in the same period.
The Federal Reserve System has improved its
reserve position owing to a decrease in loans and
larger gold reserves, as may be seen from the
following figures:
1
"
1
..
.............. .
April 15,
1921*
M ay 28,
1921*
Bills discounted............. 32,104,554 31,642,553
F. R. note circulation. . 2,668,527 2,767,415
Total deposits............... 1,754,943 1,716,642
Total reserves............... 2,485,077 2,549,134
Reserve ratio.................
53.7%
56.8%
*In thousands of dollars
Savings D eposits
Deposits of 24 savings banks in this district
declined $1,182,000, or .5 per cent during April.
This is the second consecutive monthly decline
and our records, which go back to July, 1919, do
not show any previous occasions upon which this
has happened. The amounts held by these
institutions are given below:
In
Philadel
phia
— 1
% increase
or decrease
-1 2 .5 %
— 3.6
— 2.9
— 2.5
The improvement in the condition of the
Federal Reserve Banks since their reserves were
at their low point is due to a notable decrease in
loans of $984,272,000, or 35 per cent, and to an
increase of $376,233,000 or 14 per cent in the
amount of their gold holdings.
A number of the Federal Reserve Banks have
lowered their discount rates on commerical paper
since our last report. The highest rate on this
class of paper now in effect is 6F2 per cent, which
holds in the New York, Chicago, Minneapolis
and Dallas districts, the others being on a 6 per
cent basis.
M ember Banks
The reports of 56 member banks in this district
show a decline in loans and investments and in
total deposits during the latest month under
review. The total loans and investments (includ
ing rediscounts with the Federal Reserve Bank)
dropped from $896,865,000 on April 8 to
$884,316,000 on May 11, and deposits from
$717,890,000 to $699,174,000.
Over 800 member banks distributed through
out the country displayed similar trends, the
falling off in total loans and investments being
$287,000,000, or 1.2 per cent of the total in the
same period, as compared with 1.4 per cent in
the Philadelphia district. Deposits declined
$63,000,000, or .5 per cent.
CONDITIONS
1921—M ay 1 ...........
April 1...........
March 1........
Feb. 1 ............
Jan. 1.............
1920—M ay 1 . . . . :
Outside
Philadel
phia
Totals
3255,317,000 352,902,000 3308,219,000
256.355.000 53.066.000 309.401.000
256.901.000 53.100.000 310.001.000
256.574.000 52.430.000 309.004.000
252.607.000 51,3 77,000 303.984.000
242.946.000 49.135.000 292.081.000
It is interesting to note that postal savings
deposits throughout the country decreased
$10,000,000 to $158,100,000 during April.
D ebits
to
I ndividual A ccount
The following table compares the debits to
individual account in each of the Federal
Reserve districts. The average of the four
weeks ending May 18 is compared to similar
averages for the four weeks ending April 20, 1921
and May 19, 1920, respectively:
Districts
Chicago.........................................
St. Louis.......................................
T otals....................................
M ay 18,1921 M ay 18, 1920
compared to compared to
April 20, 1921 M ay 19,1921
4- 3.3
+ 11.1
— 4.9
—10.8
— 1.4
+ -8
+ 6.0
— .1
+ 2.7
+ .6
— 1.8
— 1.0
—20.8
—14.9
—21.0
—24.1
—23.7
—31.2
—20.6
—26.5
—21.6
—26.7
—13.4
— 15.3
4- 5.6
—18.1
It will be noted that the trend as compared
to 2\pril 20 is by no means the same in all districts?
half showing an increase and the others *
BUSINESS
AND
FINANCIAL
decrease. With the exception of Cleveland, the
Philadelphia district had the largest decline.
C ertificate
of
I ndebtedness I ssues
I he Philadelphia district has again main
tained its splendid record of subscriptions to the
offers of certificates of indebtedness by the
Government. Subscriptions to the issue of May
*5 amounted to $91,076,000 or 17 per cent of the
total amount received. The final allotment made
Was $25>757>5°°— approximately 10 per cent of
the total for the country.
CONDITIONS
composed a large part of them, and wool, cotton,
silk, hides, leathers, grain, oil, tea and coffee were
also important. Three of the five dealers hold
that bills to create dollar exchange are of small
consequence thus far, whereas another states
that he is handling a larger number than
ever before.
Rates quoted in the first two or three weeks of
May are generally about same as in April, but
there have been many fluctuations and variations
of £ of one per cent are common.
Quotations
as of the middle of May were as follows:
30 days
B ankers ’ A cceptances
Five dealers in bankers’ acceptances report
that sales in this district during April fell off
4 per cent from those in March. Either month,
however, shows a very large increase over the
corresponding period in 1920. Three of the five
dealers were selling acceptances in April, 1920,
and their sales in April, 1921, were five or six
tunes as large as at that time
Reports of 11 accepting Philadelphia banks
rtlay he summarized as follows:
1921
March 10
April 10. .
M ay 10
L~
---------
Executed dur
ing preceding
month
Outstanding
on date
given
555,321,000
4.561.000
5.596.000
314,095,000
13.150.000
12.844.000
As noted in our last review, decreasing foreigr
trade has had a noticeable effect in reducing the
plume of bankers’ acceptances executed. Conictmg views are given whether or not the supply
, acceptances is equal to the demand. City
• anks have not displayed any particular interest
A the market and bulk of the sales are to banks
ln the smaller centers.
An interesting estimate of the types of trans
ition s covered by acceptances executed during
Pnl is given by one of the large acceptance
rtns.
Their letter states that imports
^counted for 65 per cent of the total, exports—
j Per cent, domestic shipments and warefusing— 10 per cent, and dollar exchange—
15 Per cent. Bills to finance sugar importations
5
Eligible members’ bills.
Eligible nonmembers’
bills...............................
60 days
90 days
5X T s
55 ~H
A
S5 -V s
A
SH -Vs
5X -6
SVs-6
C ommercial P aper
It is said that many firms have, during the
past few weeks, materially reduced the amount
of paper that they had outstanding. This has
caused a scarcity of good paper. Banks and
trust companies in Philadelphia, with a few
exceptions, show little interest as purchasers, and
the country banks continue to be the principal
buyers. Rates on the best names have been as
low as 67^ per cent, with quite a number being
absorbed at 7 and 7yi per cent.
RETAIL TRADE
NDICATIONS of a slackening in retail sales
which were noticed after the exceptionally
active Easter season, are now more pronounced.
During April, net sales, in terms of dollars,
were .4 per cent less than in the same month of
1920, and the unseasonable weather of May
has so interfered with retail business that many^
stores report a greater decrease for the first
two weeks of this month. It is true that the
discrepancy in total sales between April, 1920,
and April, 1921, may be accounted for by the
lower price levels of the current year, and it
is also probable that the volume of sales, in
terms of units, was greater in April, 1921. But
I
6
BUSINESS
AND
FINANCIAL
when it is considered that sales for January,
1921, were 3 per cent in excess of January, 1920,
and that February, 1921, sales were 3.7 per
cent ahead of those of the same month of last
year, it will be seen that present business is
decidedly smaller.
In large measure, of course, the poor May
business is the result of weather conditions.
But it is also true that the equally unseasonable
March served in part to detract from the usual
May trade, especially in wearing apparel. De
creased business is by no means the universal
report, however, for the figures of many stores
reveal considerable gains over the totals of last
year. This is more especially true of those
establishments that have conducted intensive
advertising campaigns and have offered good
quality merchandise at attractive prices.
The buying policy of retailers has undergone
a marked change in recent weeks. Whereas the
purchasing of practically all firms was confined
exclusively to the satisfaction of immediate re
quirements, many merchants are now in the
RETAIL TRADE
Jan. 1 to
April, 1921, April 30,1921,
compared to compared to
Jan. 1 to
April, 1920
April 30, 1920
N et S ales
- 2 .5 %
4-5.8
— .4
Firms in Philadelpha (1 5 )...
Firms outside Phila. (32) —
All reporting firms (47)........
Stock
of
Apr. 30, 1921, Apr. 30, 1921,
compared to compared to
Apr. 30, 1920 Mar. 31, 1921
G oods
Firms in Philadelphia............
Firms outside Philadelphia..
All reporting firms..................
c
r
S tocks C ompared
+ 1.8%
+ 3 .7
+ 2.3
to
- 2 0 .5 %
—13.0
—18.7
+ 1.4%
+
-8
+ 1.3
Average stocks Jan. 1
to April 30, 1921 com!
5
,
,pared" to average sales
Tan 1. to April 30, 1921 j
c ales
S
1
Firms in Philadelphia........................j
Firms outside Philadelphia..............
All reporting firms..............................j
O rders C ompared
P urchases
to
Firms in Philadelphia.. . . . . . .
Firms outside Philadelphia....
All reporting firms................. .. .
313.5%
426.4
340.4
Orders outstanding April
30, 1921 compared to
total purchases in 1920
8 .6 %
4.9
7.8
CONDITIONS
market for fall goods. Considerable difficulty
was experienced in obtaining much of the de
sired merchandise for the spring trade— specialty
shoes, full fashioned hosiery, and many silk
lines being notable examples. As a result, re
tailers are now beginning to anticipate their
requirements, and although the orders placed
do not compare in size with those of other years,
the change in buying policy has cheered whole
sale markets. It is to be noted, however, that
not all retailers are as yet ordering for fall de
livery, and that the commitments of those who
have entered the markets have not extended to
all lines. The beginning of a return to normal
buying conditions has, however, been made.
AGRICULTURE
g r ic u l t u r a l
conditions throughout the
A district are favorable, except for the damage
done to fruit crops by cold weather earlier in the
spring. A reduction in the acreage o' potatoes
planted is reported from some counties, but the
acreage of other crops is estimated at present
to be about normal.
Spring work on the farms this year is from
two to three weeks earlier than usual. Accord
ing to the Bureau of Crop Estimates, the per
centage of spring plowing completed to May 1
in this district was roughly 75 per cent, as
compared with 54 per cent last year, and an
average of 62 per cent for the last ten years.
The figures for spring sowing are 55 per cent
this year, about 33 per cent last year, and 37
per cent for ten years. Some fresh produce from
Delaware and South Jersey appeared in the
Philadelphia market early in May.
The following table gives the comparative
status of the important crops in the district on
May 1, as reported by the Bureau of Crop
Estimates of the U. S. Department of Agriculture:
Sixteen per cent acid phosphate is the fer
tilizer most generally used by the farmers of
this district, but this year for reasons of economy
many are using cheaper grades. Almost 5°
per cent of the farmers mix their own fertilizer
in preference to buying it already prepared-
BUSINESS
AND
FINANCIAL
C rop
CONDITIONS
Condition
1921
Acreage to be
harvested
Winter wheat—bushels:
Pennsylvania....................................................................................................
1,447,000
New Jersey...............
98,200
Delaware..................................
.
.........................................
116,000
United States....................................................................................................
38,721,000
K.ye—bushels:
156,000
Pennsylvania....................................................................................................
New Jersey........................................................................................................
66,000
Delaware............................................................................................................ 98% of last year
United States...................................................................................................
4,544,000
Hay (tame)—tons:
2,850,000
Pennsylvania....................................................................................................
New Jersey........................................................................................................
333,000
Delaware............................................................................................................ 98% of last year
United States....................................................................................................
58,879,000
This is a larger percentage than that of last year.
I he use of fertilizers has not fallen off to any
aPpreciable degree. Prices are from $5 to $10
a ton lower than they were a year ago.
Wheat and potatoes are the chief crops held
0Ver, together with a little corn for local con
sumption and in some places a part of the
Surplus apple crop. About 20 per cent of the
Potato crop and 25 per cent of last year’s wheat
stffl remain in the hands of the growers.
I he frosts of March 29-30 and of April 11-12
played havoc with orchards. In Delaware pract!cally the entire crop of peaches, pears, plums,
aud cherries was killed. It is estimated that
tuere will be a 10 to 20 per cent crop of late
aPples. Strawberries were damaged, and some
°ther small fruits were killed. Wheat, peas,
^arly potatoes, and truck suffered injury. In
ennsylvania the damage varied in different
Actions. According to available estimates, the
aPple crop will be from 25 to 50 per cent of
n°rmal. Damage to peaches varies from 30
Per cent in one county to 90 per cent in another,
n New Jersey the injury is reported to be not
So great as at first was believed.
I he financial status of farmers is undoubtedly
• e °w that of recent years, but it is much better
ln this district than in the large agricultural
Actions of the South and West. Insolvencies
are rare, but most of the farmers are under the
necessity of practicing strict economy. Their
c°ndition will improve as the prices of com
modities ^ e y use descend to a level commenSUrate with the low prices of their products.
Forecasted
production,
M ay 1
Production
1920
95%
96
92
88.8
27,768,000
2,027,000
1,921,000
629,287,000
25,284,000
1,520,000
2,040,000
577,763,000
97
97
94
92.5
2,799,000
1,248,000
58,000
72,007,000
2,656,000
1,155,000
60,000
69,318,000
92
93
87
91.7
4,090,000
510,000
117,600
91,628,000
7
3,951,000
544,000
120,000
91,193,000
COAL AND COKE
A nthracite C oal
consumers are still
A LTHOUGH domestic coal at present prices,
slow to purchase hard
the orders placed during May have shown a
considerable increase over the total for April.
Mine production is proceeding at a slightly
increased rate, but a large part of the output is
being stored by producers and retail dealers.
The report of the United States Geological Sur
vey on coal stocks indicates that operators and
retailers have on hand supplies considerably in
excess of those held on April 1, 1920. Statistics
from seven of the largest producers show that
stocks held on April 1 amounted to 1,358,976
tons, as compared with 1,169,587 tons on March
1, 1920, and 1,757,881 tons on April 1, 1919.
Retail anthracite dealers also appear to have on
hand a plentiful supply. Reports from repre
sentative dealers in eastern cities indicate that
stocks in hand on April 1, 1921, amounted to
1,323,000 tons, as compared with 843,000 on
March 1, 1920, and 980,000 tons on January 1,
1919. If these reports may be considered typical,
there was an increase of nearly 50 per cent in
the stocks of retailers between January 1 and
April 1. It is evident, however, that consumers’
supplies are considerably lower, and therefore
that a large proportion of this year’s output has
been stored by producers and retailers.
Leading retailers during the first two weeks
of May announced advances of 25 cents per ton
in domestic sizes, and also a sliding scale of
8
BUSINESS
AND
FINANCIAL
increases that will bring quotations to last
winter’s level by October i. This action, how
ever, has failed to stimulate to any great degree
the somewhat sluggish demand, which is probably
attributable to other causes than prices. Con
tinued slackness in steam sizes is due' to the
curtailment of industrial operations and to
severe competition from bituminous sources.
Production for the period from January i to
April 30 amounted to 30,345,000 tons, as com
pared with a total of 28,214,000 tons for the
same period of 1920. Mine quotations for an
thracite on May 10 were as follows:
Broken.................................................................................
Egg.......................................................................................
Stove....................................................................................
Chestnut.............................................................................
Pea.......................................................................................
37.35
7.60
7.85
7.85
5.50
Collections, although somewhat slow, are con
sidered fair.
B ituminous C oal
CONDITIONS
less than that for any period since April, 1914,
except during the strike of 1919. Whether this
improvement will continue is questionable. It is
probably due in part to replenishment of last
year’s stocks and in part to the vigorous buying
campaign now being carried on by many pro
ducers.
The British miners’ strike continues with un
abated vigor, but actual orders resulting from
it have as yet been inconsiderable, although
there are many inquiries and several shiploads
of coal have been sent abroad as a speculation.
Industrial depression in Europe has permitted
the accumulation of large reserves of coal, and
an increase of export demand is not likely to
occur before these are depleted.
The contract market is still dormant, and
producers are apparently unwilling to make the
concessions demanded by consumers.
Spot
prices, in general, are stationary. Consumers
are anticipating freight reductions and conse
quently lower prices before fall.
The estimates made by the United States
C oke
Geological Survey of consumers’ stocks of soft
Demand for metallurgical coke is still low,
coal on hand April 1 were a distinct surprise to
dealers, for they indicated that these reserves and beehive coke ovens in the Connellsville dis
were far larger than was thought possible. It is trict are operating at less than one-fifth of
apparent, however, that consumers in general, capacity. The estimate of beehive coke pro
and especially industrial consumers, have been duction for the week ending April 30 was 72,000
drawing upon their stocks for at least part of tons, as compared with an output of 359,000
their current supply. The survey indicates that tons for the week ending May 1, 1920. Pro
production for the first quarter of 1921 was duction figures of the United States Geological
approximately 100,000,000 tons, and that con Survey showed a decline in output for the week
sumption was 108,000,000 tons, the difference ending April 23, of 4,360 tons, as compared with
between the two being supplied from consumers’ a gain of 12,455 tons for the past week. Another
reserves. Evidently our present rate of produc decline of 2,000 tons was registered for the
tion is insufficient to meet our current demands, week ending April 30. A number of future
even at the present curtailed rate of operation. orders have been taken, however, and some of
The survey estimates our present supply as the independents are planning for increased
approximately 37,000,000 tons, as compared with activity in the near future. By-product coke
45,000,000 tons on January 1, 1921, 40,400,000 production is at a higher rate than beehive pro
tons on April 1, 1919, and 24,000,000 on March duction, owing to the demand for the by
products. The accumulation of stocks has
1, 1920.
Production for the week ending May 7 showed caused strenuous price cutting, so that spot
the fourth consecut ve weekly increase. The furnace coke is easily obtained at $3.50, and
average daily tonnage was 1,216,000, as compared many of the smaller producers have made sales
with 1,162,000 for the previous week, and 1,136,- at as low as $3. Foundry coke is quoted at
000 for the week of April 23. But in spite of I $4 to $5. Unemployment is rather prevalent in
this increased output, the rate of production is I the industry, and wage cuts have been made
BUSINESS
AND
FINANCIAL
by the independents, following the wage reduc
tion recently announced by the Steel Corpora
tion* Collections generally are considered poor.
CONDITIONS
9
cent activity in this branch of the industry.
The average daily production of pig iron in
April was only 38,505 tons, as compared with
a daily output of 106,220 tons in October, 1920.
There was a net loss during April of six furnaces
IRON AND STEEL
in blast, which brings this total to 96, as against
T ^ H E iron and steel industry is still suffering a total of 319 in blast in October, 1920. In
A from widespread stagnation. The equaliza spite of this low record, stocks of pig iron are
tion of corporation and independent prices has undoubtedly accumulating. Reports from firms
failed to stimulate new business. Seasonal pur in this district indicate that many blast furnaces
chases by automobile companies and oil interests, are being operated merely to utilize the coke
though larger than they were last month, are output of by-product ovens. The demand for
Ur from normal, and it is apparent that auto by-product and the danger of ovens deteriorat
mobile manufacturers are drawing heavily upon ing if closed, have in many cases compelled firms
their accumulated stocks of raw material. Fab- to continue operations. As coke cannot be
ricated steel for structural work is the only kind stored without deterioration it has been used
steel that is moving in any quantity, and in the operation of blast furnaces, since the
mquiries for this are few as compared with the final product may, of course, be stored in
number received in recent years. Demand from definitely. Reports indicate that, with the ex
ship-building plants and from machinery and ma ception of pig iron, stocks are not accumulating
chine tool manufacturers is practically negligible. and that production at the present time does
*he lethargy that has marked the export trade not exceed consumption. The only bright spot
continues, and the depression abroad gives no in the situation was the report of the structural
^ssurance of any immediate improvement in this steel orders made by the Bridge Builders and
•mid. Whether consumption would be greatly Structural Society. This showed an increase
stimulated by further price reductions is doubt- from 14 per cent of capacity in February to
ub but the consuming trade believes that the 29 per cent of capacity in March, and 32^2
new prices announced by the Steel Corporation per cent in April. It is clear, however, that
^re merely transitional and will be followed by structural work, in spite of this belated spring
urther decreases in the near future. Another revival, is far from normal, for present contracts
Potent factor responsible for the present state call for only 66,000 tons, as compared with
ot affairs is the expectation that material re contracts to the amount of 171,000 tons in
ductions will be made in railroad freight rates. February, 1920. It seems that users of struc
Hesitancy on the part of consumers has been tural steel are still waiting for lower prices in
renected in further curtailment of operations other building materials and for reduction of
and decreasing output, as indicated by produc- wages in the building trades.
Pon figures for the month of April. The unfilled
In general, it is doubtful if operations in this
orders of the Steel Corporation showed a further district amount to more than 40 per cent of
Cecline to 5,845,224 tons on April 30, as com- capacity.
Many plants are closed entirely.
Pared with 6,264,765 for the previous month, a Forty per cent of capacity, however, does not
ecrease of 439,541 tons, or approximately 7 necessarily mean 40 per cent of normal, as the
Per cent. This figure represents the ninth con- steel manufacturing capacity of the country
Seci,tive monthly decline, and is the lowest was increased during the war to a point con
°*Tnage recorded since July 31, 1919.
siderably above the present normal demands.
. h e output of steel ingots and of pig iron likeFurther reductions have been made in work
^lse. decreased in April. Ingot production for
ing forces and wages. The Steel Corporation
^ Pnl was estimated at 1,213,900 tons, a decrease
.
Per cent from the March output of 1,570,900 announced a 20 per cent reduction in the wages
° ns> a total that represents less than 40 per of all classes of workers, effective May 16.
22
10
BUSINESS
AND
FINANCIAL
This action, which brings the average wage of
the Steel Corporation close to that ol the in
dependents, has been followed by wage reduc
tions by companies that had hesitated to
act before the Corporation had established a
precedent. Average wages in this district are
about 20 per cent under the peak of last year,
and employment and working hours have been
cut to an even greater extent. Reports indicate
that the number of employees has declined 20
to 30 per cent, and that working hours are
between 60 and 70 per cent of full time. A
letter from the Metal Manufacturers’ xAssociation, comprising about 100 metal working plants
in and near Philadelphia which employ normally
106,000 men, reports an average reduction in
working forces of 29 per cent, and in operation,
of 12 hours, or a total reduction in operation
ol nearly 50 per cent. It is probable that this
report is representative ol conditions generally
in the metal working and allied industries in
the Third Federal Reserve District.
Though adhering in general to the recently
stabilized level, prices have shown little resisting
power, and concessions have been made in numer
ous instances on quotations for pig iron, sheet
bars, wire nails, and hot rolled strip steel.
Competition has been most severe and con
sumers evidently expect further price conces
sions. In the export field, serious competition
is being encountered from Europe, where lower
operating costs and government subsidies have
permitted underselling of the domestic product.
Even in domestic markets foreign competition
is already an important factor. Domestic prod
ucts have been undersold at Atlantic and Pacific
ports by as much as 10 to 30 per cent.
Among the plants of this district those manu
facturing forgings, castings, beamings and other
automobile parts, and fabricated structural steel
products, are naturally receiving the largest
orders. Even this seasonal business, however, is
far from normal, and all buying seems to be
for immediate needs.
Improvement in the automotive industries has
failed to stimulate demand for machine tools
and machinery.
Firms manufacturing these
products, and even those manufacturing such
seasonal products as ice making machinery, have j
CONDITIONS
received practically no orders and are operating
at less than 30 per cent of capacity. In the
foreign field competition from European and
especially German companies is so severe as to
have practically stopped exports.
Shipbuilding has shown no improvement dur
ing the past month, and most yards are entirely
closed. Because of present world-wide depres
sion, shipping space is far in excess of actual
requirements, and there is absolutely no demand
for new ships. This, of course, is a most im
portant contributing factor in the present slack
demand for iron and steel products and ma
chinery.
Credit conditions in the industry have not
improved since April, although cancellations are
negligible. Collections generally, are reported as
poor, customers requiring 60 to 90 days on 30
day accounts.
In general, it may be said that the wide
spread lethargy in the iron and steel and allied
industries is largely a reflection of the general
industrial readjustment, although consumers
expectations of further price revisions and re
duction of freight rates in the near future are
potent factors tending to prevent buying at the
present time. Purchasers are fearful of placing
contracts, in view of the possibility of further
reductions; hence, buying is entirely of a hand
to mouth variety.
COTTON
C otton G oods
unsettled, with
T HE cotton goods market isthe past month.
little or no change within
May is ordinarily an off month in the cotton
trade as all fall orders are supposed to have
been placed. But this year buyers are not
purchasing until goods are needed, and because
of price fluctuations converters are hesitating
to stock up. They therefore not infrequently
find that lines which they desired immediately
cannot be secured. The wholesale trade in
summer wash goods has been affected by the
recent cold weather. Demand for tire fabrics
improved somewhat in April, and many mills
making these goods have again begun operations*
Ginghams continue to be a strong element in the
market, but the demand for staple ginghams
lessened slightly at the end of the period.
BUSINESS
AND
FINANCIAL
About the middle of May, greater activity
ln some lines was evidenced in an increasing
number of inquiries. But permanent improve
ment is not expected as long as general condi
tions remain what they are. There is no ten
dency to purchase goods in any quantity for
future delivery, but buying in small lots for
prompt shipment seems to be gradually increaslng- I he opinion is that the low point in prices
and demand has been reached.
Curtailment in production has continued for
Such a long time that surplus stocks are fairly
liquidated, and constant buying in small
tots by both wholesalers and retailers is now
necessary to supply ordinary demands. It is
estimated that the industry is operating on a
5o per cent basis. Many Southern mills have
continued to operate in the absence of demand,
ar*d for this reason some lines are being stocked
U All firms report sufficient stocks for present
Prequirements.
Prices are a bit firmer. Although fluctuations
lave occurred, they are not as wide as they
Were, and the trend is not always downward,
was the case a few months ago. Drills and
Meetings are slightly lower. Retailers have
taken advantage of the great demand in ginglarns to raise prices. Print goods have held
steady and in some lines have recently shown a
tendency to advance.
Y arns
I he situation in cotton yarns is much better
. an that in cotton goods. A stronger demand
Is noted, especially since the last of April. Not
only are more inquiries being received but a
arger number of actual orders. The orders
are still small and are for immediate needs, but
°ne large commission house reports that a slight
tendency to buy ahead can be detected. The
§reatest part of the business comes from the
^°siery and light-weight underwear trades. Less
-j51Tm is manifested among the weaving mills.
ess
°ward the end of the period, combed yarns
C
peJn grater demand than were carded yarns.
^ r*ces are nominal because of competition,
ut have been firmer recently and are becoming
ore settled. The tendency has been upward
CONDITIONS
11
j because of the improved market, and the greater
activity in combed yarns has brought about a
rise in their prices.
More mills have resumed operations since last
month, and production is now between 50 and
75 per cent of capacity. Most of the mills
report that their whole output is being sold,
but some dealers seem to think that present
production exceeds demand and consumption,
j and that surplus stocks are bound to accumulate.
Supplies of high-priced goods have largely been
disposed of.
R aw C otton
Raw cotton has been an important factor in
the market recently. The rise in the price of
spot middling in New York from 12.25 cents on
xApril 21 to 13.15 cents on May 11 caused an
increased interest in both cotton goods and
cotton yarns. The price later fell from this
high level to 12.55 cents. The Bureau of Census
reports that the consumption of cotton in April
was 408,881 bales, which is a decline from
437,933 bales consumed in March, 1921, and
575,789 in April, 1920. The following table
shows stocks of cotton on hand (exclusive of
linters) and active spindles on the dates given:
M ar. 31,
1921
Apr. 30,
1920
1.337,790
5,235,360
32,104,946
1,811,527
2,978,158
34,697,812
Apr. 30,
1921
In
manufacturing
establishments.... 1,316,065
In warehouses........ 5,028,631
Active spindles... . 32,535,725
No further trouble has been experienced with
cancellations, and collections are reported as fair
in about 50 per cent of the cases, and as good
in the remainder.
WOOL
W ool C loth
is
T HE woolen cloth industry the gradually re
turning to normal. In
dress goods
trade, fancy striped skirtings and velour and
bolivia coatings are attracting the attention
of most buyers. Domestic mills equipped to
12
BUSINESS
AND
FINANCIAL
supply tweed and homespun materials have
found a steadily increasing demand for these
products. However, specialization on a few
lines is not expected to continue, as the array
of styles is said to be more nearly complete than
it has been for the past two years.
In the men’s wear trade, interest is being
manifested in some of the slower process fabrics,
such as fancy back overcoatings. This prefer
ence for a material which comes from the looms
slowly and the difficulty in reorganizing produc
tion forces have been embarrassing to manu
facturers who are resuming operations after a
long period of idleness. Buyers want early
deliveries in order to complete their sample
lines for the fall showing, and manufacturers
anticipate difficulty in filling the orders already
placed. The amount of finished stock on hand
is low and production is for immediate delivery.
CONDITIONS
customers are asking for reductions in the price
of contracts that were placed in March in order
that they may meet current prices.
Collections on present shipments are good, but
extensions have been asked for on 1920 deliveries
by some firms that have been unable to dispose
of their finished materials.
R aw W ool
Only actual needs, it seems, have prompted
the few scattered inquiries received by wool
dealers. Buying is limited, but it involves
practically all grades and classes of wool. The
general feeling is that present prices do not
warrant any extensive purchasing for future
needs.
Increased activity of spinners and
weavers is consuming the supply of raw wool
that they held in the storeroom, and as this
supply decreases, they are forced to buy it1
order to fill their commitments.
W ool and W orsted Y arns
The normal annual wool consumption of this
The greater part of the new business on wool country is 550,0)00,000 pounds, according to a
and worsted yarns has been going to producers Boston bank. The new clip will be available
of the finer counts, with the result that such by July 1, and it is estimated that we shall
manufacturers are operating at about 80 per then have on hand a sufficient supply to last
for a year and a half. Importations have con
cent of normal.
Conservatism marks the buying policy of tinued steadily in anticipation of the tariffweavers and knitters. Wool yarns for use in Since January 1st 190,000,000 pounds have ramen’s wear are receiving most attention, with rived in the country which is about double
2-36S and 2-4OS half-bloods showing the most the usual amount for the same period.
Foreign wool markets remain inactive. E f
strength. In the dress goods trade those suit
able for velours, bolivias and tricotines are forts have been made to steady the price by
subject to the greatest inquiry. Heather mix reducing the amount of the offerings, but values
tures probably are in more request than any have dropped to lower levels. Recent London
other yarn at this time. One large manufacturer sales were made at prices below those of previous
reports that his present volume of business is sales.
The domestic clip is slowly arriving at the
supported almost entirely by orders for heather
mixture. Producers of yarns for fancy knit eastern markets. Most of this is being shipped
goods are doing little business, as the demand on consignment at a ten cent advance. Losses
on last year’s clip by over advances are causing
for these materials is limited.
The supply of raw material far exceeds the dealers to proceed cautiously with the new woolNo trouble is reported with collections at the
demand and prices on all but the finer grades
of wool are lower than they were in April. present time.
No substantial price changes have' occurred
since April. Slight reductions have been made
SILK
in some counts, but the majority remain the
EASONAL conditions were responsible f°r
same. Buying for immediate needs has reduced j
the dullness in the silk industry during
cancellations to a negligible quantity. Some j
S
BUSINESS
AND
FINANCIAL
the past few weeks. Some members of the
trade have feared a return of the inactivity that
Prevailed several months ago. This feeling,
however, is not general. The last week in April
and the first two or three in May are the usual
Period of transition between the spring and fall
seasons. Therefore, the quietude which has
Pervaded the markets during these weeks is
looked upon as being normal by the larger
Manufacturers of the district. These manu
facturers base their optimism upon the orders
they are receiving for fall delivery, which,
[hough coming in slowly, are in sufficient num>ers to maintain operations at approximately
fio per cent of capacity.
Finished stocks held by mills are small, and
applies in the hands of jobbers have been
§reatly reduced, particularly the artificial silk
Used in the making of neckties. Retailers are
experiencing difficulty in supplying the needs
0 consumers, but notwithstanding this fact,
CONDITIONS
13
their orders for the most part are for immediate
delivery only. Jobbers in turn are following a
similar policy in ordering from manufacturers.
There are some retailers, however, who have
placed orders for future delivery.
In spite of the declining prices of raw silks,
finished silks are holding firm at the levels
established during the January revival. These
prices represent a decline from the peak of from
40 to 50 per cent on broad silks, and from 30
to 40 per cent on spool silks. One reason ad
vanced for this maintenance of prices on finished
silks is that the yarns used in their manufacture
were purchased at the higher prices.
The accompanying chart gives the prices of
raw silk from January, 1919, to the early part
of May, 1921. It will be noted that the peak
price is here recorded as $18 a pound. This is
the amount actually paid by firms for raw silk.
During January, 1920, there were quotations
at $22 a pound and rumors of sales at that
14
BUSINESS
AND
FINANCIAL
price. It is doubted, however, that any silk
was actually transferred at that high figure,
the opinion being that any such sales were of
a purely speculative nature.
In connection with the prices on this chart,
it is interesting to recall that during the years
from 1907 to 1914, the price of raw silk averaged
$4 a pound. The nearest return to this was the
July, 1920, quotation of $5 a pound.
CARPETS AND RUGS
IN theinrecent
rugs
New
auction sale of carpets and
York prices were somewhat
higher then they were in a similar sale in April.
This was true especially of all classes of rugs.
In this advance, tapestries and axminsters took
the lead.
The stock of finished goods on hand, especially
of the better grades, has been depleted to a
great extent. For several months buyers have
been proceeding cautiously, but the reduction
of available stocks from which to make selec
tions is now stimulating their interest. One
large firm has completely closed out its finished
stock of quality rugs and its customers are now
turning to the cheaper grades to complete their
purchases.
This shortage of better quality merchandise
is explained by the strike of Wilton and Brussels
weavers in the Philadelphia district. Nothing
has left the looms since January, when the
manufacturers announced a wage reduction of
25 per cent and the reinstatement of creeler
boys. The employers are firm in their decision
to keep their looms idle until the wage reduc
tions have been accepted. Approximately 7,000
workers are out of employment at the present
time. Manufacturers of cheaper grade rugs,
who do not employ union weavers, are operating
at 65 per cent capacity.
Prices are 50 per cent lower on all grades of
rugs than they were a year ago, at the time of
greatest production. On a few lines prices have
been reduced 10 per cent since April 1, but,
generally speaking, no recent reductions have
been made.
Raw material is obtainable at a
slightly lower cost.
There is no desire to cancel orders at this
CONDITIONS
time. Express shipment is being specified in
some orders recently received. Collections vary
to a marked extent, but taking the trade as a
whole, they may be said to show improvement
since the last report.
HOSIERY
TN SISTEN T requests for full fashioned hosiery,
depleted stocks, and the inability of manu
facturers to produce the desired quantities were
the chief features of the hosiery markets during
the first three weeks of May.
The prolongation of the strike in Philadelphia
mills, which mills are normally a most important
source of supply, resulted in the receipt of re
peated and increasingly large orders by manu
facturers in other production centers. The
majority of full fashioned mills in these sec
tions, however, had previously booked orders
to the limit of their capacity for three and four
months in advance, and were, therefore, unable
to accept any new business for either immediate
or short time delivery. The few that were still
open for orders were offered so many that they
found it necessary to allot production among
their regular customers, and to refuse new ac
counts. Jobbers, consequently, turned to seam
less and mock fashioned silk lines, and manu
facturers of these goods reported exceptionally
good business. So great was the demand that
several mills resorted to night shifts to meet
it, and are still maintaining them.
In spite of increased production, the call for
the better grades far exceeds production. Ar
tificial silk hosiery, also, has shared in the in
creased business, and to such an extent that a
number of mills are unable to handle further
orders.
The market for seamless cotton hosiery lS
spotty. In some quarters, there is considerable
activity; in others, a like degree of dullness.
Quality appears to be the chief selling factor in
these goods at the present time, as opposed to
price, which has been the deciding element lor
some months past. Quotations are now firmLabor is the only disturbing manufacturing
element.
There is a scarcity of experienced
operatives, and in addition to the strike in the
BUSINESS
AN D
FINANCIAL
OPERATIONS IN FHE HOSIERY INDUSTRY
April, 1921, April, 1921,
compared to compared to
March, 1921 April, 1920
F ms llin toth wo s le r d :
ir s e g e hlea a e
Product manufacturer during April..................
Finished product on hand
April 30....................
Raw materials on hand
April 30....................
Orders booked during April
Unfilled orders on hand
April 30.................... . . . .
+ 13.3%
—62.0%
- I S . 4%
—43.2%
- 9.0%
- 2 8 .3 %
- 5 4 .8 %
+355.0%
-3%
—59.5%
+ 43.3%
—86.4%
- 1 4 .9 %
- 4 7 .4 %
+
F ms llin toth r ta tr d
ir s e g e e il a e
Product manufacturec during April..................
finished product on hand
April 30.................... . . . .
Raw materials on hand
April 30....................
Orders booked during April
Unfilled orders on hand
April 30.................... . . . .
-6%
-7%
+ 9.8%
+ 185.4%
+ 15.7%
- 8 2 .3 %
+
* M fashioned mills, one is reported by a manu
.U
facturer of seamless hosiery. Raw materials
are m abundant supply, and the price levels
satisfactory. Silk yarns advanced slightly durlng April, but this movement was checked by
file recent decline in the raw silk market.
Collection conditions are improved, being re
potted as fair to good.
UNDERWEAR
| HE underwear market has changed but
little since last month. The demand for
fgbt weights has fallen off to a slight degree,
ut counterbalancing this, orders for fall de!very have been received in somewhat greater
k° ume. Neither of these tendencies, however,
as been so well defined as to amount to a
toad market movement. That the market
!s ,ln a sensitive state was disclosed when the
)risk spring demand for light weight underwear
°r immediate shipment was noticeably affected
)y fife cool, wet weather of early May. Many
rctailers had been buying from hand to mouth,
P acing orders for immediate shipment when the
demand seemed to warrant it. With the coming
? the unseasonable weather, retailers ordered
ess> and in turn the immediate delivery orders
CON D I T I O N S
15
from jobbers fell off'. In the main, however, the
market displays considerable activity, and manu
facturers in many lines are unable to meet the
present demand for short time deliveries.
Practically all retailers and jobbers are placing
orders for fall, but they are so small in size
that the total is barely 20 per cent of normal
for this period of the year. And this is true
despite the fact that many retailers have had
difficulty in obtaining spring goods, owing to
their withholding orders when these lines were
offered last fall. Mills are not operating for
stock, and it may be that the experience of this
spring when there was a last minute scramble
for the more desirable lines, will be duplicated
in the autumn.
The underwear price level is firm, although
yarns have shown a slight tendency to weaken.
It is to this condition in the cotton yarn market
that the cautious buying is in large measure
attributed.
Collection conditions are reported as being
fair to good.
CONDITIONS IN THE. UNDERWEAR INDUSTRY
April, 1921, April, 1921,
compared to compared to
March, 1921 April, 1920
Product manufactured during
April..........................................
Finished product on hand
April 30.....................................
Raw materials on hand April 30
Orders booked during April. ._.
Unfilled orders on hand April
30...............................................
5.7%
- 2 9 .4 %
- 1 6 .9 %
+ 45.7%
- 2 0 .7 %
+ 169.6%
- 3 6 .2 %
+ 36.6%
-
-
5.3%
+ 9.3%
BUILDING MATERIALS
building operations in
T HOUGHthan in April and March,May were
greater
they are
still considerably below the level of last spring,
which was a peak period in building. Con
tractors and builders hesitate to commence
construction in view of the possible further de
cline in materials and wages. The situation in
some large cities is complicated also by strikes
of practically all classes of workers. The present
strike in Philadelphia is an attempt by the em
16
BUSINESS
AND
FINANCIAL
ployees to prevent a reduction in wage scales,
amounting to about 20 per cent, which con
tractors have felt compelled to make. This
unsettled condition in the building trades, to
gether with declining production costs, has
brought about marked price reductions in build
ing materials in general. Above quotations,
however, are still nearly double the pre-war
scale.
B rick
Both building and refractory brick continue
to be in slight demand, and but few additional
inquiries have resulted as yet from the more
extensive building operations of the past month.
Fire-brick manufacturers report no increase, but
frequently a decrease, in inquiries as compared
with last month. Operations and sales hardly
average more than 15 per cent of normal, a
condition attributable to present slackness in
the steel trade. In spite of considerable price
reductions since January 1, manufacturers are
accumulating large stocks. Prices of highest
grade fire-brick have dropped from $55 per
thousand on January 1 to $40 per thousand at
the present time, and some of the smaller
operators have gone a trifle below this.
Although the building brick trade has im
proved somewh v since early spring, conditions
are far from normal. Some manufacturers have
large accumi yu-jns of stock from winter opera
tions, which tTfey are unable to move even at
present quotations. Prices now average $18 to
$20 per thousand, a decline of about 25 per
cent since January 1. Operations throughout
the industry are of an intermittent nature.
Production is everywhere greatly curtailed, and
this has been accompanied by decreased em
ployment and by wage reductions of from 20
to 30 per cent. Collections are uniformly re
ported as fair, but a recent tendency to pro
crastinate has been noted. Cancellations are
no longer a source of annoyance in the industry,
as most of the present business is spot business
rather than contract.
L umber
The lumber trade, like that in other building
materials, is marking time while awaiting the
CONDITIONS
outcome of strikes in Philadelphia and other
cities. Durirlg the past month demand for
lumber, especially Southern yellow pine and
Douglas fir, has increased considerably, and
local deliveries have materially reduced the
rather heavy stocks that have been carried by
dealers in this district. Sales do not average
more than 60 per cent of last spring’s business,
though a few firms report deliveries equal in
volume to those of the same period of 1920.
Prices have slowly declined since January 1,
and the quotations for both hard and soft woods
are now about 50 per cent below the high levels
of 1920. Expectation of a reduction in freight
rates is an important deterrent to purchasing
at the present time, as transportation charges
are so high as to enormously increase prices to
dealers and consumers. This is especially true
in the cheaper grades of soft woods. Southern
pine No. 2 common (1x3), for example, was
quoted on May 14 at $16.25 Per thousand,
f.o.b., mill. The freight rate for this quantity
to Philadelphia or New York was $11, or nearly
70 per cent of the mill price. Although the
increase in price due to transportation costs is
proportionately less in the more expensive grades,
it forms a very considerable part of the cost to
the consumer. Reports from dealers in this
district indicate no present difficulty with can
cellations. Collections are fair.
G la ss
During the past winter, firms manufacturing
plate glass, wire glass and window glass have
suffered from the same conditions as have affected
other building material manufacturers. Many
plants have been closed entirely since October 1,
and those that continued operation have ac
cumulated rather heavy stocks, which they are
experiencing difficulty in selling. With the
coming of spring there has been some revival
of business and many plants have reopened,
but demand and sales are not much more than
50 per cent of normal for this season of the year.
This, together with declining production costs,
has brought about fairly large price reductions
during the past few months. Standard building
and wire glass was cut about 20 per cent during
BUSINESS
AND
FINANCIAL
April, and plate glass is from 50 to 60 per cent
below the high quotations of 1920. Wage re
ductions of 20 to 30 per cent have been almost
universal in plants that reopened during April
and May. Soft coal, the most important raw
material, is, of course, much cheaper in price
and very plentiful.
Bottle works reflect better conditions than
building-glass trades, and there are numerous
distances of normal activity in this line. In
the finer grades of glass, however, severe com
petition is being encountered from Belgian manu
facturers, who are able to deliver goods in domest'c markets at prices much below our own.
Cancellations are causing no difficulty at present,
but collections are reported as being only fair.
P aints
Spring painting and repairing have brought
about a considerable revival of activity among
those manufacturers of paint who specialize in
Paints for household use. Such firms are, in some
Cases, operating at full capacity. Business in
structural paints, however, though better than
during the winter, is not more than 60 per cent
0 normal. Raw materials, especially linseed
and other oils, are plentiful, and are obtainable
at prices less than half the high quotations of
! 92o. This has permitted price reductions of
Paint since January 1 of from 20 to 30 per cent,
akewise, wages have been lowered about 20
ncr cent , on an average, during the present year,
Employ ment, except in structural paint factories,
ls rapidly returning to normal. No cancellations
are reported, and collections are generally conS1dered to be fair.
CONDITIONS
dency to go down, but prices of lead and copper
are a bit stiffen
Employment has declined somewhat, and
wages and working hours have been reduced.
Whether the situation will improve this summer
will, of course, depend upon the extent of the
building revival.
Firms report collections as fair, and are having
no difficulty with cancellations.
WHOLESALE HARDWARE
C* LIG H TLY increased building activity has
^ naturally been accompanied by a further
improvement in the wholesale hardware trade.
Demand during April increased, and the volume
of sales was considerably larger than that of
March, but still somewhat smaller than sales
during April, 1920.
The demand thus far during May for general
hardware was not greatly changed, except in the
case of seasonable household and agricultural
articles where a better market was reported.
The demand for mill supplies and industrial
hardware, however, is the poorest in recent
months, but this is not surprising, in view of the
present industrial situation.
Although dealers’ stocks are low, in most
cases they have been sufficient to permit of
immediate delivery of orders.
The following table indicates the changes in
the wholesale hardware trade in this district
during April, 1921, as compared with March,
1921 and April, 1920:
WHOLESALE HARDWARE TRADE
April, 1921, April, 1921,
compared to compared to
March, 1921 April, 1920
P lumbing Supplies
Gradually increasing activity in plumbi
grades has been manifested during April a
ay> but present demand is hardly more th
5° per cent of normal. Slack times in buildi
°Perations have naturally affected the plumbi
applies business. Factories are producing n
jriore tban 60 per cent of last spring’s outpi
even so finished stocks are accumulatir
a l l aw materials— iron, lead and copper— a
Plentiful. Iron products are showing a te
17
Net sales during month............
Accounts outstanding at end
of month...................................
+ 11.4%
- 1 8 .7 %
-
- 1 1 .8 %
-3%
Ratio of accounts outstanding to sales:
April, 1921...................................
March, 1921................................
February, 1921...........................
January, 1921.............................
...
...
...
...
155.2%
172.2%
213.3%
193.2%
18
BUSINESS
AND
FINANCIAL
Further price declines have been recorded
during the month in most articles, but the average
level of hardware prices is still considerably
higher than it was before the war.
Collections are much improved over last
month, and the ratio of outstanding accounts to
net sales has shown a further decline.
SHOES AND LEATHER
Shoes
in the shoe
T HE improvement began with manufacturing
industry, which
the revival of
buying in January, continues. Retail shoe sales
have been highly satisfactory, and as a result
merchants have offered considerable business for
late spring and summer delivery. Manu
facturers however, have been forced to refuse
many such orders, because of their inability to
produce the goods in the required time. Unfilled
contracts for summer delivery are sufficient to
occupy most plants at capacity until July 15,
and in some instances beyond that date. That
CONDITIONS
the market is becoming more stable is seen in the
increase in orders for fall delivery, many of which
call for staples. Until recently, retailers have
hesitated to place fall contracts, anticipating, as
they did, that prices would be lower. They
were no doubt partly justified in this attitude by
the slow movement of high priced merchandise.
But recent sharp advances in leather quotations
have overcome this hesitancy and have led to the
placing of definite orders.
No striking change in styles is noticed in
autumn footwear samples. The extreme strap
effect in women’s shoes, which was the leader in
spring fashions, has been modified somewhat,
and there is an increase in the use of black
glazed kid.
A shortage of skilled labor in the fitting rooms
has retarded production in a number of plants,
but this is not a general condition, and, as a rule,
the labor situation is satisfactory. The few can
cellations reported were a result of failure to.
meet delivery dates promptly. Collection con
ditions are generally improved.
BUSINESS
L
AND
FINANCIAL
eather
The demand for calf skins, especially in the
light weights, and for colored glazed kid, which
started with the placing of orders for women’s
shoes for spring, has not only continued but has
^creased steadily in volume until now there is
considerable difficulty in finding many of these
leathers in the market. Prices have been
raised without in any way slackening the
demand. From these leathers the demand has
spread to all others. Black glazed kid, of which
there was a heavystock in the hands of tanners,
and for which there had been little or no inquiry,
ls now in fair demand, and large sales have
ocen made. The prices obtained were low, but
that, under the circumstances, was to be expected.
I he removal of these stocks has greatly relieved
die pressure on the market. Europe, which
l,sed about 40 per cent, of the pre-war production
°f glazed kid (approximately 15,000 dozen skins
Pet day), has until recently been quite out of the
market. Now there is beginning to be a demand
CONDITIONS
19
for export, which, with the increased domestic
consumption, has brought about much more
satisfactory conditions.
During the period of the war, a greatly
I increased number of animals were slaughtered all
j over the world. The skins and hides of these
furnished the tanners with much more raw
material than they had previously had. In goat
skins alone, the output of tanneries in this coun
j try increased from 15,000 dozen per day to
25,000 dozen per day. Other hides and skins
increased in about the same proportion, but the
domestic demand grew enormously and made up
temporarily for the loss of our export trade.
As a result of this state of affairs many hides and
skins of a poor quality, which under normal
conditions would not have reached the tanners,
were made into leather. In the case of goat and
j sheep skins, the process of leather making is com
j paratively short, and much of this low grade
material was marketed before the break in prices,
but not all of it, and there has remained on the
market a considerable quantity of undesirable
leather. In the case of hides, in which the pro-
20
BUSINESS
AND
FINANCIAL
cess of manufacture takes practically six months,
much of the leather made of these poor quality
hides was finished after the demand had ceased,
and has been carried by the tanners ever since.
As there has been no domestic demand for such
leathers, the hope of the tanners is that an
export demand will spring up, which will consume
these grades. Another result of the great war
time slaughter of food animals is that fewer
animals are being slaughtered now, and therefore
that hides and skins of good quality are scarce
and the market is sensitive to even a small
amount of buying.
• B elting
Belting leather continues dull and the output
has been greatly reduced. Prices are at their
lowest point. Stocks in the hands of both manu
facturers and jobbers have been very large, but
the demand now is greater than the output, and
stocks are gradually dwindling. There is only
hand to mouth buying, as the consumer feels
that he can have all orders filled promptly from
stock, therefore many manufacturing plants
which used to keep a considerable supply of
belting leather on hand, now have none.
R aw S kins
and
H ides
Sharp advances in the price of nearly all kinds
of hides and skins have occurred recently. Goat
skins are now from 25 to 50 per cent, above the
low prices of late 1920 and early 1921; the skins
showing the greatest advance being those best
fitted for the making of colored leather. The
heaviest trading recently has been in Indias and
Chinas, although all have been active. The
following quotations for two India districts and
two China districts will give an idea of the
fluctuations in the market:
M ay, 1920
Patnas, per dozen............
Amritsars, per dozen.. . .
Szechuans, per pound...
Hankows, per pound.. . .
Low
M ay, 1921
5525.00
25.00
2.50
1.25
35.50
6.00
.65
.40
38.00
6.25
.95
.65
Calf skin prices have fluctuated fully as much
as goat skins, and have recently been very
strong. Hides also have advanced 20 to 30
CONDITIONS
per cent, from the low prices, but even so are
greatly below the 1920 level, as may be seen in
the following table:
CHICAGO MARKET FOR PACKER HIDES
1921
Native steers, spready...................
Native steers, heavy......................
Texas steers, heavy........................
Texas steers, light..........................
Texas steers, extra light...............
Butt branded steers.......................
Colorado branded steers...............
Native cows, over 55 pounds.. . .
Native cows, under 55 pounds...
Branded cows..................................
Native bulls.....................................
Branded bulls..................................
1920
14c-15c
llc-12 c
11c
10c
9c
11c
10c
lO c-llc
9>£c-10c
9c
7>£c-8c
37c-40c
35c-37c
3 2 ^ c -3 3 ^ c
6 y ic -7 c
32}/2c - 3 3 A c
l
31c
33F£c-34 c
31c-32c
34c-36c
35c-37c
31c
30c-31c
27c-29c
Sheep skins are not in as great demand as
other skins, and the price of some varieties is still
at the lowest point reached. New Zealands, for
instance, are 34 shillings per dozen, as against
the high price of n o shillings per dozen.
The Tanner’s Council, commenting on the
census report of hide and leather for March,
states: “ There has been a considerable decrease
in holdings of calf and kip skins, and goat and
kid skins over February, and a slight decrease
in holdings of cattle hides, while those of sheep
and lamb skins and horse hides have con
siderably increased.”
PAPER
during May
largely
T HE paperthemarket strikes. allied waswas par
influenced by two
There
first
the strike in
printing and
trades,
ticularly in Philadelphia and its vicinity, which
began May 2 and during the first sixteen days
gained considerably in strength. It affected
many plants, some to such an extent that they
were forced to reduce operations to a minimumThe fine paper market has been materially
damaged by this inactivity, but prices have not
changed. Business was dull before, and the
present trouble is only a temporary element m
the situation.
The second strike, caused by the announce
ment of a general wage reduction, was that of the
employees of the large paper mills, particularly
in newsprint plants. About 75 per cent, of the
BUSINESS
AND
FINANCIAL
P roduction or Wood P ulp and Paper
/
«
36Q
00G
3Q O
4 OO
/
3Q O
2 OO
300000
260000
260000
MT
E
Tore
-p 540000
\
VA
t
J
V
y
■ io
V rvyi
1
1
1
Y
5¥
0nnn
r
1
r\
240nn
o
>AL
V
?40(Wi
220000
200000
700 (W
160000
180O)
X
16 OO
QO
160000
140000
12 OO
QO
10 OO fl
QO
6Q 00
O
j»»
V
60000
a
Y
.V ,* |
••
i,
V
■>
<i
*
/‘v r<>
'1
./VA
"T
‘9\
-s \
>
K
ey;— ■Wo P lp
■ od u
20,000 •••• N o rin
ew p P
-O- B
ook
W
rapping
fV Y I
YY
\
T
1
40.000
-- Z O
OM
^ 50H D jrnA njjA 5onD jrriA rujA D O H D jrnA njjA 5onD .
1918
m
1920
1921
m’Us were involved. The two sides to the conr°versy are very far apart, and as yet there is
lt;ne prospect of their coming to an early agree
ment. The manufacturers take the position that
usiness is very dull at present anyhow and that
eir stocks of paper are sufficient to meet any
ftnands which may be expected. No price
anges have occurred as a result of the enr
olment in production.
.
the industry in general, there has been no
lncrease in the demand for paper within the past
°nth. About the third week in April there was
shght spurt in buying, which resulted in a
general improvement in business. But this
ctivity seems to have left paper users well
^ °cked, for the demand immediately fell off and
aA ° een small, though steady, ever since.
. he industry, as a whole, is operating at less
an 5o per cent of capacity and most plants are
CONDITIONS
21
producing- only what can be sold at once.
Jobbers and distributors are purchasing no more
than is sufficient to meet present demands.
Large supplies bought at high prices by jobbers
and users of paper have been fairly well
exhausted by this time, although in most cases
at a heavy loss.
A considerable fall in prices occurred during
the latter part of April, which affected nearly all
lines except the fine grades. The level then
reached has been fairly well maintained since,
and the market has been steady. Spot quota
tions for newsprint rolls are lower by approxi
mately 18 per cent, than they were one month
ago. Tissue paper fell 25 per cent., and book and
wrapping papers from 10 to 15 per cent.
Writing paper remained firm.
Little change is noted in the raw material
situation. All supplies are easy to obtain. Most
of the plants have their own pulp wood piles
which they secured at high prices and from which
they must make pulp for low-priced paper.
Prices have suffered further cutting. Ground
wood pulp fell about 30 per cent, and about the
first of May reached a new low level of $28 per
short ton, f. o. b. mill. - Chemical pulp fell about
15 per cent, and rags from 10 to 15 per cent.
Collections may be described as fair, although
some firms report that they are good. One
large jobbing house stated that collections are
worse at present than they have been for
some time.
PAPER BOXES
T IV IT
in the
A Centirely Ydependent paper box industry is
upon general business
conditions and cannot very well be stimulated
by artificial means. For this reason, during the
past month the best business has been enjoyed
by firms manufacturing for the industries which
are themselves experiencing greater activity.
Therefore it is difficult to make a general state
ment as to conditions in the industry at large.
It may be said that business in May was some
what better than in April and that orders on the
whole are increasing, although this is not true of
many individual firms. Manufacturers of shoes,
of electrical supplies, and of some textile lines,
22
BUSINESS
AND
FINANCIAL
CONDITIONS
particularly hosiery, are the largest buyers of turers are taking advantage of the low prices of
boxes at present, but from the confectionery board to secure large stocks, but the majority
trade the demand is slight. Sales continue to buy only as new supplies are needed. Box paper
be small and are all for quick delivery.
has not come down as much as board, but some
Some users of boxes still have supplies on hand, recent reductions have taken place.
but stocks are pretty well exhausted, and the I Cancellations are no longer a source of
present business is almost entirely for renewal annoyance, as goods are being ordered only when
purposes. Customers are not buying ahead, but j actually needed. Collections are quite generally
for immediate needs only. Manufacturers, as i reported as fair, and an increasing number of
a rule, have disposed of all stocks on hand and j firms characterize them as good.
are not accumulating any at present. They are |
CHEMICALS
doing business almost entirely on a job basis and j
are making boxes only after orders are received.
H EM ICAL industries during the past month
This is in part due to the fact that the call is for |
displayed conflicting tendencies, and firms
particular designs.
in this district report little increase in demand or
Prices are lower. Trading is very active and j
operations, except in isolated cases. Oils and
is accompanied by keen competition. The mar
heavy chemicals have exhibited slightly increased
ket is a buyers’ market, and customers shop I
activity and some price stiffening, but dyes and
around before placing orders, except in cases in j
crude drugs showed no improvement. The
which orders are large and in which high quality
market for oils, notably linseed oil, has strength
of goods or special services in manufacture and j
ened somewhat, owing to the resumption of pur
delivery are desired. Prices for finished boxes
chasing by manufacturers of paint.
have generally been marked down in accordance !
The effect of foreign competition is felt more
with reductions in raw materials.
keenly in chemical products, especially dyes
Plant operations have increased slightly since i
and intermediates, than in any other branch of
last month and now average about 60 or 70 per
domestic manufacturing. In consequence, manu
cent, of normal. This is in sharp contrast with
facturers are marking time until the outcome of
the normal operations of the same period last !
present tariff discussions has been made known
year. Production is being kept in line with
definitely. The intermediate and dye industry)
demand because of the character of the business.
in particular, has reflected this uncertainty by 2
Some factories are running on full time with a j
continuance of almost total inactivity. Opera
reduced force, while others have retained prac- I
tions are nearly at a standstill, and demand is
tically all their employees but work them only
negligible, but no further price weakening has
part of the time. The sentiment throughout the j
occurred.
industry seems to be against wage reductions, j
Most prices have remained stationary, though
A better class of workers has been attracted by I
slight increases were recorded in linseed oil and
the higher wages, and employers think it will be j
naval stores, and in lithopone and caustic potashmore satisfactory and more economical to retain I
Prices of chemicals, in general, have declined
them than to return to pre-war conditions.
continuously since they reached their highest
Prices of raw materials continue to decline, j
levels in May and June, 1920, but this tendency
and supply still exceeds demand. Box board j
has been less marked during 1921 than it was
is particularly cheap, selling at a price which j
during 1920.
some claim is close to the cost of production, if i
RUBBER
not below it. This is attributed by many
h e r e is a lack of uniformity in the demand
Philadelphia buyers to the severe competition :
existing among board manufacturers in this city, !
for the different rubber products. Tire
but others refute this contention by pointing to | makers are unanimous in reporting strengthened
the agreement between Philadelphia prices and | interest in their product, and mechanical rubber
those in other eastern cities. A few manufac- j goods are attracting more attention than are
C
T
BUSINESS
AND
FINANCIAL
articles that are strictly specialties. Vulcanized
fibre manufacturers are receiving a large number
pf inquiries, but the amount involved in sales
ls small. Calls for rubber clothing and footwear
are numerous and compare favorably with the
demand during the same period last year. In
many cases inquiries are received from new cus
tomers who have resumed buying after having
disposed of their stocks of finished materials.
Rubber is obtainable in practically unlimited
Quantities at a price lower than any heretofore
recorded in the history of the industry. Con
sumption of rubber in the United States at the
present time is slightly less than 1,000 tons per
month, an amount barely 50 per cent of the
rubber used during a normal month, according to
a trade journal. Production of i#w rubber has
Ur exceeded the requirements of the world, ana
restriction of output is facing plantation owners
as an imperative necessity if present prices are
to be prevented from going lower.
Quotations on fabric are relatively higher than
those on rubber, but they are slowly approaching
pre-war levels. Tire makers, generally speaking,
Pave had a considerable amount of fabric on hand,
and as yet production of tires has not reached a
sufficient magnitude to create a noticeable
demand for fabric. A li mited number of orders
Pave been placed, but they are mostly small and
mdicate purchasing for immediate needs without
Provision for the future.
All firms have a sufficient amount of finished
stock on hand to fill current orders. Some
manufacturing for stock is being done by a
number of firms making staple products. SpeC
1alty lines are all made to the customer’s order.
Concessions in prices corresponding to the
savings on raw material and labor have been
granted by most manufacturers. Reductions
uring May by one firm averaged 20 per cent
or the entire line of goods. This, however, is
exceptional, the more usual range being from
k ° ^ Per cent- Specialties and accessories for
e automotive trade have been materially
reduced in an effort to stimulate buying.
operating schedules are being maintained at
an average of 65 per cent of capacity. The
exeessive cost of securing and training new
CONDITIONS
23
employees prevents many employers from cutting
down the personnel in proportion to the volume of
business secured. One firm producing both tires
and mechanical rubber goods has shifted
employees from one department to the other,
maintaining a 50 per cent production schedule
and keeping the working force intact.
Several orders placed recently have called for
rush shipment. The finished stock in the retail
stores is said to be low, and it is expected that
cancellations will be few.
Unstable conditions in some parts of the south
make it necessary to renew the obligations of
some customers in that district, but collections
with this exception are good.
WHOLESALE GROCERIES
grocery firms
off'
SALES by wholesaleApril, as can bedropped the
materially during
seen in
accompanying table. Improvement is reported
by some firms as having taken place to date in
May, but the more general opinion is that there
has been little or no change for the better.
Merchandise of all kinds is easily obtainable, and
both wholesalers and retailers continue to buy
only for immediate -requirements. The total
volume of sales also is much lower than it was
last year, but the great value of the 1920 sales
can be attributed, in large part, to the very high
price received for sugar at that time. Neverthe
less, decline in prices will not alone explain the
difference in sales during April of the two years.
Prices continue to fall, the present wholesale
level being six or seven per cent below that of a
month ago. Sugar suffered a further decline to
6.30c. on May 17, as compared with 7.50c. on
April 20. Recent tendencies, however, have
been upward. Butter and cheese fell about 33
per cent during the month. The price of flour
rose during the latter part of April, and later fell
slightly, the general level remaining a bit higher
than at the beginning. The market for lard was
weak. The price fluctuated slightly, is a fraction
lower than it was a month ago. Coffee, tea and
rice are still at their extremely low levels, but
were steady throughout the month. Dried
fruits remained firm, with the exception of prunes
which rose one or two cents a pound.
24
BUSINESS
AND
FINANCIAL
An improvement took place in the canned
goods market about the middle of May. This
change has been attributed to the reports of a
prospective short pack in 1921, and to the recent
unfavorable weather. All lines of California
canned fruits rose rapidly to new levels, which
were from 10 to 50 per cent higher. Tomatoes,
corn and peas were active at steady prices.
Collections are reported as fair, but no improve
ment has occurred during the month, as can be
seen by the following table.
Outstanding
accounts decreased, but not in the same propor
tion as net sales. Hence, the ratio of accounts
to sales for April is greater than it was in March.
WHOLESALE GROCERY TRADE
April, 1921, April, 1921,
compared to compared to
March, 1921 April, 1920
Net sales during month............
Accounts outstanding at end
of month...................................
- 1 4 .9 %
—39.4%*
-
—30.1%
5.3%
Ratio of accounts outstanding to sales:
April, 1921...................................
March, 1921................................
February, 1921...........................
January, 1921.............................
December, 1920..........................
November, 1920.........................
*Revised
. ..
...
...
...
...
...
102.3%
90.8%
106.3%
106.7%
101.3%
102.7%
TOBACCO
month of May, in a
marks
T HE beginning of the cigar normalofyear, season
the
maker’s best
and brings an increasing number
sales. An
improvement has recently taken place in the
cigar trade, but the business done is far below
that of the same month in previous years.
Nevertheless, the increased activity is encourag
ing. The greatest demand continues to be for
cigars selling at eight or ten cents. Except in
the case of a few standard and well-advertised
brands, the more costly products are not finding
very ready market.
Smokers are demanding a cheaper cigar, which
is of course due to smaller incomes, reduced
wages, and unemployment. The cigar trade,
however, finds it impossible wholly to meet this
want, although some manufacturers have reduced
prices. One reason given is that the tobacco used
in the present output of the factories was bought
CONDITIONS
a year ago at high prices. Another is the wage
situation. The wage scale has been reduced by
many firms in varying degrees. Also the total
of wages paid has been lessened by such means
as reducing the force, shortening hours, demand
ing a better quality of work, or transferring work
ers from high-priced to low-priced cigar making,
on which the rate of pay is lower. Yet wages
are still above pre-war levels, and there is a
sentiment among manufacturers in favor of
retaining the present scale as nearly as possible.
Another reason advanced to show the unlikeli
hood of any return to the five-cent cigar is the
increasing taxation placed upon tobacco products
by the government.
In spite of the small demand the cigar business
is in a rather healthy condition. In most cases
operations and sales have about reached a point
of adjustment which prevents overstocking and
at the same time furnishes a supply of cigars
sufficient to meet ordinary needs. Some factories
aim to keep slightly oversold all the time. This
is arranged either by operating on full schedule
with reduced forces or by running with a large
force only part of the time. Throughout the
industry in general, factory operations are less
than 75 per cent of capacity. A few large
makers of medium-priced cigars report normal
operations, but claim that ordinarily at this time
of the year they should be constantly oversold.
Distributors are buying on a strictly hand to
mouth basis, keeping only such stocks on hand
as will enable them to meet immediate
requirements.
Because the business is of this character, there
are no cancellations. Collections seem in most
cases to be satisfactory.
The leaf tobacco situation presents a different
aspect. All of the old tobacco is in the hands of
the manufacturers. Most of them have j u s t
enough to meet their own needs this season.
Consequently there is practically no trading in
last year’s tobacco. Nor are manufacturers buy
ing new tobacco on any large scale. Whether
this is due to a lack of purchasing power, to an
expectation of a further decline in prices, to an
inclination to “ wait and see,” or to a combina
tion of these factors, is not clear. Binders and
wrappers are scarce and are demanding high
BUSINESS
AND
FINANCIAL
prices. A large part of the crop of Wisconsin
binders is reported as having been bought by
manufacturers. Most of the filler tobacco is in
the hands of the dealers. Purchasing by manu
facturers has not increased within the past
month, and the price trend continues to be lower.
CONDITIONS
25
The Lancaster County crop has been well
bought up, all that remains being of a poor grade
and scattered over the county. Many recent
sales were made at less than eight cents, and the
highest price reported was but a little above
fourteen cents.
ADVANCES THROUGH WAR FINANCE CORPORATION
The War Finance Corporation has issued a booklet which outlines, in a general way, the requirements of the Corporation
■ connection with advances to American exporters and American banks, bankers and trust companies for the purpose of assisting
n
lrt the exportation of domestic products. Information is given as to the filing of applications, limitations on advances, collateral
security required, details as to interest payments, payment of advances of proceeds, etc., with samples of the forms to be used.
Copies of this booklet (known as “Circular No. 1 of the War Finance Corporation”) may be obtained upon request to the Federal
Reserve Bank of Philadelphia.
COMPILED AS OF MAY 23, 1921
This business report will be sent regularly without charge to any address upon request.
BUSINESS
AND
FINANCIAL
CHARGES TO DEPOSITORS’ ACCOUNT
other than banks’ or bankers’, as reported by Cearing Houses
M ay 18, 1921 April 15, 1921 M ay 12, 1920
3,524,000
4,792,000
6,545,000
4,649,000
5,071,000
320,858,000
8,089,000
13,613,000
11,500,000
9,352,000
4,148,000
8,378,000
4,601,000
3,124,000
4,220,000
6,811,000
5,049,000
5,946,000
290,116,000
8,755,000
16,310,000
10,555,000
8,070,000
4,369,000
7,235,000
4,525,000
3,692,000
5,705,000
3,800,000
4,384,000
5,488,000
377,033,000
5,540,000
16,362,000
12,269,000
8,311,000
4,352,000
8,489,000
4,746,000
Totals............ 405,120,000
375,085,000
460,171,000
Altoona..............
Chester..............
Harrisburg........
Tohnstown........
Lancaster..........
Philadelphia—
Reading.............
Scranton............
Trenton.............
W ilkes-Barre.. .
W illiam sport...
Wilmington---York...................
May 16 1921
Month ago
Year ago
Gold reserves................
Other cash.....................
184,724
3,428
140,583
333
Total reserves..........
Discounts—secured by
U. S. securities.........
Discounts—all other. .
Purchased bills.............
U. S. securities.............
185,910
188,152
140,916
110,751
37,290
8,440
30,413
104,274
40,222
16,856
30,588
192,650
25,521
2,638
32,163
Total earning assets.
Uncollected items........
All other resources----
186,894
48,804
2,513
191,940
57,072
2,400
252,972
62,728
2,292
T otal R eso u r ce s . ..
424,121
439,564
458,908
M ay 16, 1921
Month ago
Year ago
8,615
17.010
4
1,389
8,600
17,010
2,715
8,273
8,805
28
4,511
101,845
1,492
103,666
1,097
108,523
6,663
Gross deposits..........
Federal reserve notes..
Federal Reserve Bank
notes........
Deferred availability
items...........................
All other liabilities_
_
104,726
232,789
107,478
235,815
119,697
247,424
13,793
16,117
18,888
43,441
3,743
51,360
3,184
51,021
4,772
T otal L ia b il it ie s ..
424,121
439,564
458,908
Capital paid in.............
Surplus...........................
Government deposits..
Members’ reserve account..........................
Other deposits..............
At the close of business
Date
Month ago
Year ago
M ay 18, 1921 April 15, 1921 May 14. 1920
Loans and discounts:
Secured by U. S. securities
Secured by other stocks
and bonds........................
All other...............................
Investments:
United States bonds.........
U. S. Victory notes...........
U. S. certificates of indebtedness.......................
Other bonds, stocks and
338,842
337,767
3101,966
195,245
358,026
202,885
366,191
199,947
574,894
45,309
8,573
44,456
10,025
41,305
9,525
21,596
21,846
53,198
156,934
156,172
Total loans, discounts
and investments.. . . 3824,525
Demand deposits................. 627,490
41,105
Time deposits.......................
Borrowings from Federal
Reserve Bank..................... 108,290
3839,342
632,188
40,950
3980,835
683,395
32,693
108,748
88,208
*
* Included in “ all other loans and discounts” item.
M ay 23, 1921
181,888
4,022
LIABILITIES
RESOURCE AND LIABILITY ITEMS
of Member Banks
in Philadelphia, Camden, Scranton and Wilmington
(In thousands of dollars)
BUSINESS INDICATORS
STATEMENT
Federal Reserve Bank of Philadelphia
(In thousands of dollars)
RESOURCES
CONDITIONS
Philadelphia banks:
Loans........................ 3697.541.000
610,693,000
Deposits..................
Ratio loans to de113.6%
Federal Reserve Bank
Discounts and col
lateral lo a n s.. . . 3142.172.000
55.3%
Reserve ratio.........
6%
90-day discount rat<
Commercial paper. ..
7K%
April, 1921
Bank clearings:
In Philadelphia . . 31,698,917,000
Elsewhere in dis
172,142,000
tric t......................
Percentage increase or
decrease compared with
Previous
Year ago
month
- 1 .2 %
-1 -7 %
-1 1 .3 %
- 9 .6 %
119.5%
116.4%
- 1 .6 %
54.8%
6%
7M%
—33.5%
40. %
6%
1l %
A
Percentage increase or
decrease compared with
Previous
month
1
! Year ago
1 1
oo co
o
S3 S3
26
—19.9%
T otal.................... 31,891,059,000 - 2 .7 %
Building permits,
3,138,735 -1 0 .0 %
Philadelphia...........
Post office .receipts,
1,299,574 - 5 .6 %
Philadelphia...........
Commercial failures in
district (per Brad72
66
Latest commodity in
dex figures:
Annalist (food
171,755 - 4 .5 %
prices only).............
166,658 - 4 .4 %
Dun’s ........................
10,821 -4 .8 %
Bradstreet's............
-1 8 .9 %
-1 5 .7 %
—68.2%
- 6 .4 %
27
—46.6%
—36.6%
-4 7 .7 %
@FedFRASER