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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT JUNE i, 192.4 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK o f PHILADELPHIA SUM M ARY OF BUSINESS CONDITIONS IN THE UNITED STATES Factory employment and production of basic com modities declined in April and there was a further recession in wholesale prices. Retail trade was larger than in March, chiefly because of Easter buying, and was at about the level of earlier months of the year. 1here was a decrease in the volume of borrowing for commercial purposes and further easing of money rates. 1 be Federal Reserve Board’s index of production in basic industries, adjusted to allow for seasonal varia tions, declined 2 per cent in Production April. Declines were particularly large in the iron and steel, coal and woolen industries. Mill consumption of cotton, 011 the other hand, showed less than the usual seasonal ’eduction between March and April. Factory employ ment declined 2 per cent in April, owing chiefly to large ’eduction of forces at textile and clothing establish ments. Contract awards for new buildings reached a higher value than in March and were also larger than a year ago ; value of building permits granted, however. declined and was smaller than in the corresponding month of 1923. Department of Agriculture estimates on May 1 on the yield of winter wheat and rye are somewhat above the forecasts made in April. The acreage of wheat has been estimated at 7 per cent less than last year. Railroad shipments, which since the middle of March have been smaller than last year, were 3 per cent less in April than a year ago. ShipTrade ments of coal were much below last year, while loadings of mer chandise and miscellaneous freight were higher. Whole sale trade in April was in about the same volume as during the preceding month and as in April, 1923. Sales of drygoods and hardware were smaller than a year ago, while sales of drugs and shoes showed some increase. Department store sales were considerably larger in April than in March, partly owing to the unusually late Easter, total sales for the two months were 2 per cent greater than in the corresponding period Index of U. S. Bureau of Labor Statistics. (1913 = 100, base adopted by bureau). Latest figure—April, 148. J une T he B u s i n e s s R e v i e w 2 FACTORY EM PLOYM ENT PERCENT P E R C EN T 150 ID O to o too 50 50 Cl Weekly figures for 12 Federal Reserve Banks. Latest figures— May 21. of 1923. Merchandise stocks at department stores showed less than the usual seasonal increase in April, but were at a higher level than a year ago. Wholesale prices, according to the Bureau of Labor Statistics index, declined 1 per cent during April and reached the lowest point since Prices May, 1922. Farm products, however, advanced 2 per cent in April. Metals and foods showed substantial reductions ; prices of clothing, fuel, and chemicals also declined, while prices of building materials and house furnishings remained unchanged. During the first half of May quotations on cotton, wheat, flour and hogs increased, while prices of sugar, silk, wool and metals declined. During the five week period ending May 14, the volume of borrowing for commercial purposes at mem ber banks in leading cities deBan k credit dined somewrhat from the high level reached early in April. There were increases, however, in loans on stocks and 1920 1913 1921 1922 1923 Index of 33 m anufacturing industries (1919 = 100;. Latest figure— April, 97. bonds and investment securities, so that the total of all loans and investments at the middle of May was higher than a month previous, and in larger volume than at any time in more than three years. Volume of borrowing by member banks at Federal reserve banks declined further during the last week of April and in May, while holdings of securities bought in the oi>en market increased slightly. Total earning assets declined to $795,000,000 on May 21, the lowest figure since the autumn of 1917. Further easing of money conditions during the last week of April and the first three weeks of May was reflected in a continued rise of the prices of Govern ment securities, in a reduction from Al/ 2 to 4}4 per cent in the rate for prime commercial paper, and a decline in the rate for bankers’ acceptances from 4 to 3 per cent. On May 1 the discount rate of the Federal Re serve Bank of New York was reduced from Al/ 2 to 4 per cent. TABLE OF CONTENTS Agriculture ............................... Bankers’ acceptances ............. Bricks ........................................ Building ...................................... Business indicators .................. Cigars ............................................ Coal, anthracite ...................... Coal, bituminous ...................... C o k e ............................................... Commercial paper ........... Cotton goods ............................. Cotton, raw ............................... Cotton yarns ............................. District summary .................... Drugs, wholesale .................... Drygoods, wholesale ................ Electrical supplies, wholesale Employment and wages . . . . Financial conditions ................ Floor coverings ......................... Foreign exchange .................... PAGE 34 8 16 14 35 33 20 20 21 8 22 21 22 3 13 11 13 5 5 27 8 O 1924 Furniture ....................................................... Groceries, wholesale ..................... Hardware, wholesale ................................... Hides and skins ....................... Hosiery ........................................................... Iron and steel .............................................. Tron foundries .............................................. Jewelry, wholesale ...................................... Leather ......................................................... Life insurance ................................................ Lumber ........................................................... National summary ..................................... Paint ................................................................ Paper ............................................................... Paper boxes .................................................. Paper, wholesale ............................................ Plumbing supplies ....................................... Real estate ...................................................... Retail trade .................................................... Rubber, crude ................... Rubber, mechanical goods ........................ PAGE 28 13 12 28 25 18 19 12 29 9 17 1 17 32 33 12 16 18 10 31 32 Rubber tires ............................... Savings deposits ........................... Securities ........................................ Shoes ................................................ Shoes, wholesale ........................... Silk goods ...................................... Silk, raw ........................................ Silk, thrown ................................. Slate ................................................ Steel foundries ............................. Sugar, raw ................................... Sugar, refined ............................... Summary, district ...................... Summary, national ...................... Synopsis of business conditions Underwear ...................................... Wholesale trade ........................... Woolen and worsted goods . . . Woolen and worsted yarns . . . Wool, raw ...................................... Special A rticle: W h at are Federal Reserve N o te s ? ....36 3t 6 6 30 10 25 24 25 17 19 13 14 3 1 7 27 10 24 23 23 SUMMARY OF BUSINESS CONDITIONS IN THE THIRD FEDERAL RESERVE DISTRICT Further curtailment in production, less active distri bution of goods, a decline in the number of employees at industrial establishments, and a decrease in whole sale commodity prices have been the outstanding features *n the business situation of the Third Federal Reserve District during the past month. At the same time credit conditions have continued to be easy, and money rates are lower than they were a month ago. The textile industries report a continuation of unsatis factory business; orders are for small amounts and call for prompt shipment. Some manufacturers, especially those in the silk and wool industries, have curtailed op erations rather than build up stocks. Recent declines 111 the quotations on carpets and rugs, following the auction in New York, have brought prices to a point at which certain carpet manufacturers assert they cannot Manufacture at a profit, and consequently they have closed their mills. Building materials are selling fairly well, but not as well as they were a year ago, though the amount of construction work contemplated is still Jarge. The estimated cost of building permits issued lri fifteen cities of the Third Federal Reserve District during April was higher than the total for March, al though slightly lower than that for April, 1923. The call for most iron and steel products has been sluggish, and the production of steel ingots has been reduced sharply. Pig iron output during April, though smaller than in March, was, with that exception, larger than *n any month since August, 1923. Unfilled orders of the United States Steel Corporation declined again in April and were lower that at any time since February, 1922. The leather market continues to be dull, and shoe Manufacturers report slack business; but hides and shins have been selling actively in Chicago. Paper manufacturers also state that orders have declined, and that sales are smaller than they were a year ago. Deports from various sections of the district indicate a favorable condition in most lines of agriculture. The cold weather during the first part of May has hindered D*e planting of some early crops, but the abundant rainall has helped the grain crops, and fruit trees are said to he ln excellent condition. The most unfavorable factor in the agricultural situation is the shortage of farm labor, . ich, though in better supply than it was a year ago, ,s still scarce. 3 Distribution of goods by manufacturers and whole salers has been at a slower rate than during the early months of the year, as is indicated by the decline in freight car loadings and the falling off in wholesale trade. Of the eight wholesale lines reporting to this bank, all but two showed smaller sales in April than in March, and in only two were sales above those in April, 1923. Retail trade, however, was heavier this April than last, but this is partly accounted for by the late Easter. A comparison of retail sales for both March and April with those of March and April, 1923, which eliminates the effects of the late Easter, shows that sales this year were 3.8 per cent larger than those of a year ago, and this in spite of unfavorable weather conditions. It is apparent, therefore, that purchasing by consumers is being well maintained. Notwithstanding curtailment of operations in numer ous factories, the number of wage earners employed at 1,033 industrial establishments in Pennsylvania, New Jersey, and Delaware was only 1.1 per cent smaller on April 15 than on March 15. Total wage payments during the same period declined 1.5 per cent. The only marked shortage of labor now is in the agricul tural industry. In the bituminous coal industry a con siderable surplus exists because of the steady decline in operations during recent months. Wholesale commodity prices, as measured by the index of the Bureau of Labor Statistics, fell from 150 in March to 148 in April, at which point the general level is almost 7 per cent lower than it was in April, 1923. The decline from March to April was largely due to the drop in the prices of foodstuffs and metals. Prices of farm products, on the other hand, increased, largely because of higher quotations on cattle, hogs, sheep, cotton, hay, and potatoes. No change of moment is apparent in the credit situ ation. Although the volume of commercial loans ex tended by reporting member banks in this district has decreased during recent weeks, it is still larger than it was a year ago. Interest rates continue to decline, and prime commercial paper is now selling at 4*4 per cent, as compared with 4*4 per cent in the latter part of April. T he B u s i n e s s R evi ew 4 J une EMPLOYMENT AND WAGES IN PENNSYLVANIA, NEW JERSEY AND DELAWARE Croup and industry Number of plants reporting Number of wage earners week ended April 15, 192-1 March 15, 1924 Per cent change Total weekly wages week ended April 15, 1924 March 15, 1024 Average weekly earning 3 week ended Per cent April change 15, 1924 March Per cent 15, 1924 ! change All industries (48).................... 1,033 395,077 399,531 - 1.1 $10,500,732 $10,662,223 - 1.5 $26.58 $26.69 J- 0.4 348 192,179 192,186 - 0 5,474,130 5,450,091 + 0.4 28.48 28.36 + 0.4 Metal manufactures: 213,990 + 6.3 29.37 2S.45 + 3.2 227,533 Automobiles, bodies, and parts 22 7,746 7,521 + 3.0 13 14,898 14,517 + 2.6 428,739 384,573 + 11.5 28.78 26.49 + 8.6 Car construction and repair... Electrical machinery and appa 426,080 - 0.6 24.97 24.49 !+ 2.0 423,377 ratus........................................ 38 16,953 17,399 - 2.6 Engines, machines, and ma 36 13,501 13,395 + 0.8 383,684 - 1.1 28.10 28.64 - 1.9 379,332 chine tools..............’............... 455,178 438,588 + 3.8 29.32 28.29 + 3.6 Foundries and machine shops . 75 15,527 15,502 + 0.2 Heating appliances and appa 19 6,393 6,229 + 2.6 203,044 198,332 + 2.4 31.76 31,34 - 0.3 ratus............. .......................... 422,304 426,405 - 1.0 28.65 28.53 + 0.4 Iron and steel blast furnaces. . 10 14,738 14,946 - 1.4 12 4,970 4,803 + 3.5 141,429 123,831 + 14.2 28.46 25.78 + 10.4 Iron and steel forgings............ Steel works and rolling mills. . 49 52,992 52,678 + 0.6 1,508,949 1,530,366 - 1.4 28.48 29.05 - 2.0 11 2,815 2,766 + 1.8 74,907 70,517 + 6.2 26.61 25.49 + 4.4 Structural iron works.............. Miscellaneous iron and steel 48 28,603 29,180 - 2.0 811,815 864,724 - 6.1 28.38 29.63 - 4.2 products................................. 8 9.003 9,272 - 2.9 280,205 273,214 + 2.6 31.12 29.47 + 5.6 Shipbuilding.............................. 5 4,040 3,978 + 1.6 117,318 115,787 + 1.3 29.04 29.11 - 0.2 Non-ferrous metals.................. 244 68,929 72,169 — 4.5 1,473,933 1,603,541 - 8.1 21.38 22.22 - 3.8 Textile products: 15 4,374 4,452 - 1.8 112,924 123,457 - 8.5 25.82 27.73 - 6.9 Carpets and rugs...................... 33 5,784 6,020 - 3.9 101,830 111,656 - 8.8 17.61 18.55 - 5.1 Clothing..................................... 8 5,395 5,353 + 0.8 117,294 121,449 - 3.4 21.74 22.69 - 4.2 Hats, felt and other................. 24 169,328 - 6.8 22.29 24,34 - 8.4 Cotton goods............................. 65 7,083 6,956 + 1.8 . 157,874 15,992 17,199 - 7.0 330,640 347,049 - 4.7 20 .6-8 20.18 + 2.5 Silk goods.................................. 31 12,401 13,503 - 8.2 246,630 296,335 -16.8 19.89 21.95 - 9.4 Woolens and worsteds............. 43 9,S86 10,254 - 3.6 201,087 204,299 - 1.6 20.34 19.92 + 2.1 Knit goods and hosiery........... 158,721 182,187 -12.9 27.02 28,87 - 6.4 Dyeir.g and finishing textiles. . 17 5,874 6,311 - 6.9 8 2,140 2,121 + 0.9 46,933 47,781 - 1.8 21.93 22.53 - 2.7 Miscellaneous textile products 80 27,013 26,867 + 0.5 610,043 618,894 - 1.4 22.58 23.04 - 2.0 Foods and tobacco: 22 4,871 4,837 + 0.7 128,320 126,188 + 1.7 26.34 26.09 + 1.0 Bakeries...................................... 7 2;768 2,838 - 2.5 59,093 59,796 - 1.2 21.35 21.07 + 1,3 Canneries................................... 111,018 112.050 - 0.9 20.52 21.51 - 4.6 Confectionery and ice cream. . 22 5,410 5,209 + 3.9 75,217 72.597 + 3.6 26.79 25.84 + 3.7 Slaughtering and meat packing 13 • 2,808 2,810 - 0.1 4 4,294 4,424 - 2.9 132,887 142,398 - 6.7 30.95 32.19 - 3.9 Sugar refining............................ 22 6,862 6,749 + 1.7 103,508 105,865 - 2.2 15.0S 15.69 - 3.9 Cigars and tobacco.................. 78 25,705 25,518 + 0.7 751,180 728,479 + 3.1 29.22 28.55 + 2.3 Building materials: Brick, tile, and terra cotta 20 3,372 3,256 -t- 3.6 89,647 74,586 + 20.2 26.59 22.91 + 16.1 products................................. 15 224.364 216,232 + 3.8 28.85 28.15 + 2.5 Cement....................................... 28 7,777 7,682 + 1.2 285,553 9,975 10,083 - 1.1 291,989 — 2.2 2S.63 28.96 - 1.1 Glass........................................... 15 4,581 4,497 + 1.9 151,616 145,672 + 4.1 33.10 32.39 + 2.2 Pottery....................................... 75 927,642 925,851 + 0.2 29.83 29.73 + 0.3 Chemicalsandallied products: 41 31,102 31,139 - 0.1 9,097 9,256 - 1.7 249,485 247,954 + 0.6 27.42 26.79 + 2.4 Chemicals and drugs................ 10 2,543 2,473 + 2.8 72,993 67,352 + 8.4 28.70 27.23 + 5.4 Explosives.................................. 12 1,437 1,404 + 2.4 38,657 37,448 + 3.2 26.90 26.67 + 0.9 Paints and varnishes................ 8 16,744 16,568 + 1.1 527,558 527,636 - 0 31.51 31.85 - l.t Petroleum refining.................... 4 1,281 1,438 -10.9 38,949 45,461 -14.3 30.41 31.61 - 3.8 Coke............................................ 200 50,149 51,652 - 2.9 1,263,804 1,335,367 — 5.4 25.20 25.85 - 2.5 Miscellaneous industries: Lumber and planing mill prod 8 2,282 2,245 + 1.6 49,740 50,855 - 2.2 21 ..SO 22.65 - 3.8 ucts ........................................ 78,709 82,827 — 5.0 25.33 24.84 + 2.0 Furniture.................................... 22 3,107 3,335 - 6.8 5 9,185 9,822 — 241,034 277,316 -13.1 26.24 28.23 - 7.0 Musical instruments................ 36 8,122 8,438 - 6.5 3.7 210,960 222,179 - 5.0 25.97 26,33 j - 1.4 Leather tanning........................ 8 686 723 14,432 14,811 - 2.6 21.04 20.49 + 2.7 Leather products...................... 30 5,917 5,833 - 5.1 109,096 110,766 — 1.5 18.44 1S.99 - 2.9 + 1.4 Boots and shoes........................ 24 5,722 5,726 - 0.1 147,692 149,216 - 1.0 25.81 26.86 - 1.0 Paper and pulp products........ 24 3,564 3,638 - 2.0 114,538 117,844 - 2.8 32.14 32,39 - 0.8 Printing and publishing.......... 20 5,456 5,695 - 4.2 Rubber tires and goods........... n 3,008 2,959 + 1.7 147,150 153,622 -+ 4.2 26.97 26.97 - 00.8 72,483 71,866 0.9 24.10 24.29 Novelties and jewelry.............. 12 3,100 3,238 - 4.3 77,970 84,065 - 7.3 25.15 25.96 - 3.1 All other industries.................. *924 T hird F ederal R eserve D istrict 5 EMPLOYMENT AND WAGES Reports received from over 1,000 manufacturing es tablishments in Pennsylvania, New Jersey, and Delaware show that employment and wages receded somewhat ln April as compared with March. Identical estab lishments in 48 industries reported a decline 1.1 per cent in number of employees, 1.5 per cent in total wages, and .4 per cent in weekly per capita earnings. Textile and clothing plants reported a greater de crease than any other group, and were principally re sponsible for the general shrinkage. The decline of 4-5 per cent in employment and 3.8 per cent in per capita earnings, shown by this group, indicates a curtailment ln factory operations of more than 8 per cent. Silk goods and woolens and worsteds reported the largest decline in the textile products group. Among the other industries showing important decreases in em ployment were coke plants, leather tanneries, and fac tories manufacturing furniture, musical instruments, Rather goods, and rubber tires. Many of the food and building material industries, however, reported seasonal expansion in operations, hotably the confectionery and ice cream, cigars and tobacco, brick, cement, and pottery industries. Most °f the metal manufacturing establishments also re ported increases in employment. Automobile factories, car repair shops, and manufacturers of heating ap paratus and of iron and steel forgings reported the argest increases in this group. Average per capita yarnings in these industries also, in most cases, were hJgher in April than in March. But few employers made ^creases or decreases in actual rates of pay; hence, he changes in average earnings reflect proportional changes in working hours. The table on page 4 shows he detailed in employment and the principal fluctuations of the three states. wages in industries due entirely to a rise in secured loans from 278 to 289 millions, as all other loans (largely commercial in char acter) declined from 364 to 362 millions. Investment holdings of United States securities fell off, but cor porate and other securities were acquired in amount sufficient more than to offset the decline. Total loans, discounts, and investments held by these banks were higher at 953 millions on May 14 than they have been at any time within the past two or three years, and compare with 938 millions a year ago. Total deposits also are larger than they were a year ago. Borrowings from the Federal Reserve Bank have been reduced from 34.1 to 9.7 millions or 72 per cent, in FINANCIAL CONDITIONS Debits to individual accounts at banks in 18 cities 0 Ibis district for the first three weeks of May were 3.6 cent below the figures for the same period last year, owever, totals in January, February and April, derived from the data submitted by banks in ten cities, ^ rPassed those for the corresponding months of 1923. • ata f°r the ten cities are illustrated in the accompany!nS cbart. Debits usually decline in April, but this year Ween March and April, they increased 3.6 per cent. !s is probably accounted for by the late Easter season the ^ Pa7men^ °f bills for goods ordered during course of the period of great business activitv carher in the year. total COUrse ^ie four weeks ending May 14 the in p i'° ans and discounts of reporting member banks v uladelphia, Camden, Scranton, and Wilmington adauced from 642 to 651 millions. This increase was Source—Federal Reserve Bank, Philadelphia Debits during January, February and April exceeded those in the cor responding m onth s of 1', 23 and 1922. Late Easter trade and pay m ents for large volum e of goods ordered earlier in the year m ay account for rise from March to April in 1924. Source—Clearing houses in ten cities reporting to Federal Reserve Bank of Philadelphia 6 T he B u s i n e s s R eview the course of the year. Member banks outside of the four cities, however, have been able to reduce their obligations at this bank by only 6 millions, or 22 per cent. Figures on borrowings as of various dates are as follows: In millions of dollars Bills discounted for banks in: Philadelphia.......................... Camden, Scranton, and Wil mington ............................. Other centers........................ District totals................ May 14, Apr. 16, Jan. 2, M ay 16, 1024 1924 1924 1923 7.2 2.5 22.1 31.8 12.8 20.1 32.0 1.9 25.3 40.0 3.0 31.3 55.0 28.2 62.3 2.1 It is to be noted that Philadelphia banks, which a year ago were calling most heavily upon the resources of this bank, are now borrowing less than outside in stitutions. A further decline in discounted bills held by this reserve bank, from 38.1 millions on April 23 to 31.3 millions on May 21, brought this item to the lowest point since April, 1918. Holdings of United States securities and acceptances increased from 33.3 to 33.9 millions. The circulation of Federal reserve notes on May 21, 186.3 millions, represents a very material de cline from the figures of a month ago and a year ago; BANKING STATISTICS Third Federal Reserve District In millions of dollars Latest Reporting member banks: Secured loans............................................. All other (largely commercial) loans. . . Total loans and discounts............... U. S. securities.................................. Other securities................................. Total investments............................ Total loans, discounts and investm ents............................................. Total deposits.................................... Federal Reserve BankBills discounted........................................ Purchased bills.......................................... U. S. securities.......................................... Total earning assets....................... Federal reserve note circulation............ Total deposits............................................ Cash reserves............................................. Reserve ratio............................................. 289.6 361.8 651.4 97.3 203.8 301.1 952.5 842.7 31.3 4.8 29.1 65.2 186.3 120.4 263.4 85.9% Changes in course of Four weeks One year 277.9 363.7 641.6 101.3 196.4 297.7 939.3 823.3 38.1 9.3 24.0 71.4 197.4 117.4 265.5 84.3% 281.6 341.7 623.3 130.5 184.3 314.8 938.1 823.4 66.5 21.1 25.1 112.7 202.3 117.7 226.9 70.9% J une but this is accounted for, in part at least, by the paying out of gold certificates. Total deposits are somewhat higher and cash reserves slightly lower than they were a month ago. The reserve ratio on May 21 was 85.9 per cent. Savings deposits at reporting banks in the Third Federal Reserve District increased 0.4 per cent during April, as compared with 0.9 per Savings deposits cent in April, 1923. Attention is called to the fact that one of the banks in Johnstown has consolidated with a non reporting bank, reducing the number of reporting banks in that city to four. The percentages given below are derived from comparable data, however, as the deposits of that bank have been removed from all prior figures. SAVINGS DEPOSITS Third Federal Reserve District Per cent increase or decrease Number M ay 1, 1924, compared with of reporting banks April 1, M ay 1, M ay 1, 1924 1922 1923 Altoona...................................... 5 Chester...................................... 5 Harrisburg................................ 4 Johnstown................................. 4 Lancaster.................................. 3 Philadelphia.............................. 9 Reading..................................... 3 Scranton.................................... 6 Trenton..................................... 6 Wilkes-Barre............................ 5 Williamsport............................ 4 Wilmington.............................. 5 York.......................................... 5 Others........................................ 14 Totals................................ 78 + .3 1.4 + .7 + .9 + .5 + .8 — 1.3 + .1 — .7 + .3 — 1.2 — .4 + 1.0 + .1 + .4 + 15.2 + 6.1 + 4.4 + 9.1 + 16.7 + 6.5 + 16.1 + 11.4 + 2.3 + 17.9 + 1.5 + 8.0 + 13.5 + 9.2 + 7.6 +28.3 + 15.1 +49.5 + 17.8 +61.3 + 11.9 +23.1 + 18.5 + 14.6 + 14.9 + 9.3 +27.2 +29.4 + 15.2 + 14.5 A further decline in stock prices has taken place during the past month, accompanied by easier rates for call money and by higher bond Securities prices. The average of 20 indus trial stocks fell $2.80, but the 20 rails only declined $.18. Higher bond prices are ac counted for by the lower rates for money which now prevail. May 20, Month 1924 ago Average of— 888 33 81.37 2 0 railroad stocks................................ 40 bonds............................................... 88.61 4 Liberty bonds................................ 100.41 Call money......................................... 3% Year ago 893.53 80.66 87.14 97.69 4% 5 $91.13 81.55 87.98 99.77 !924 T hird F ederal R eserve D istrict SYNOPSIS OF BUSINESS CONDITIONS Compiled as of May 22, 1924 Business Demand I Bricks Fair to good | Cigars Fair to good j_Coal, anthracite Fair to good Coal, bituminous Poor Coke Poor Poor Cotton goods Poor Cotton yarns Fair Drugs, wholesale ..Drygoods, wholesale Poor to fair Electrical supplies, Fair __ wholesale Poor to fair Iloor coverings Poor to fair furniture Groceries, wholesale Fair Hardware, wholesale Fair to good Hosiery, fullFair fashioned ^Hosiery, seamless Poor to fair iron and steel Fair Fair Jewelry, wholesale T eather belting Fair _heather, heavy Poor Leather, upper Poor to fair T im ber Fair to good Paint Fair to good .J^aper Fair _Laper, wholesale Fair Paper boxes Poor to fair Fair Plumbing supplies _Leal estate Fair to good Lubber, — _Mechanical goods Lnsatisfactory Lubber tires Irregular manufacture Poor to fair _?noes, retail Fair _Shoes, wholesale Poor to fair Tjlkgoods Poor ®llk, thrown Poor Slate Fair Jffigar Fair to poor Lnderwear Poor Woolen and Poor Worsted goods Woolen and Poor Worsted yarns _____ 7 Prices Unchanged Unchanged Slightly higher Unchanged Lower Declining Declining Some advances: some declines Declining Unchanged Lower Unchanged to lower Declining Firm Steady to lower Lower Lower Unchanged Unchanged Steady to lower Steady to lower Unchanged Unchanged to lower Firm Firm Weak Unchanged to lower Unchanged Unchanged to lower Unchanged to lower Unchanged Unchanged Unchanged Lower Unchanged to lower Unchanged to lower Lower Unchanged to lower Generally un changed, some concessions Generally un changed, some concessions Third Federal Reserve District Labor Finished Collections stocks Supply Wages Fair Unchanged Moderate Sufficient Some Moderate Plentiful Fair to good reductions Moderate Fair to good Some scarcity Unchanged Heavy Fair Plentiful Unchanged Moderate Sufficient Fair Unchanged to heavy Moderate Plentiful Fair to good Unchanged to heavy Fairly light Fair: slower Moderate Fair Moderate Fair Moderate Fair Plentiful Moderate Some decreases Fair to good Moderate Sufficient Unchanged Fair to heavv Moderate Fair to good Moderate Fair Moderate Plentiful Poor to fair Unchanged Moderate Plentiful Unchanged Poor to fair Moderate Sufficient Unchanged Fair to good Moderate Poor to fair Moderate Sufficient Unchanged Fair Heavv Plentiful Unchanged Good Moderate Plentiful Unchanged Good to heavy Moderate Sufficient Some increases Fair Generally Moderate Sufficient unchanged Fair Moderate Plentiful Unchanged Fair to good Moderate Fair Light Unchanged Fair to good to moderate Plentiful Moderate Sufficient Unchanged Fair to heavy Moderate Moderate Moderate Moderate Moderate Moderate Light Moderate Light Fairly light Sufficient Sufficient Plentiful Sufficient Sufficient General'}" sufficient Plentiful Sufficient Fair Fair Fair Good Fair to good Fair; slower Unchanged Unsatisfactory Unchanged Some increases Fair to good Good Unchanged Satisfactory Unchanged Moderate Plentiful Unchanged Poor to fair Moderate Plentiful Unchanged Poor to fair Unchanged Unchanged Unchanged T 8 he B usiness R In sympathy with the lower rates prevailing for call and time money, the quotations for commercial paper are more than *4 Per cent lower Com m ercial paper than they were a month ago. Good names are now selling freely at 4*4 per cent, and a few transactions have been reported at 4 per cent. Country banks, however, as usual, balk at the lower rates, and few sales have been made to them at less than Al/ 2 per cent. Indeed, a considerable number will not buy even at that rate. In Philadelphia, the banks have bought in good volume, but this was to be expected in view of the difficulty of loaning money satisfactorily on call in New York. The supply of paper is not large and appears to be scarcely adequate for the present demand. In April, five reporting firms in the Third Federal Reserve District sold paper to the amount of $6,500,400. Of this, city institutions purchased $2,745,000, and banks outside of Philadelphia the remainder, $3,755,400. In April, 1923, the same five firms sold $6,865,000. This is the -first time this year when sales have fallen behind those of the corresponding month last year. The range of prices at which paper was sold was greater than usual, from \ 1\ to 5j4 Per cent; / but the amounts sold at the high and low figures taken together were about 34 of 1 per cent. And as only slightly more than two per cent of the total sales were closed at 5 per cent, it will be seen that the market was in reality a narrow one, transactions in nearly all cases having been made at either 4j4 or 4^4 per cent, a large majority of them at the lower rate. A small increase in sales of bankers’ acceptances was noted in the period ending May 14. Five dealers op_ , erating in this district report that ankers the weekly average of sales to the acceptances Federal Reserve Bank was $488 . 000 as against $56,000 in the preceding interval. Sales to other banks, corporations, etc., declined from an average of $463,000 to $68,000. The supply of bills emanating from this district is said to be limited, and in the general market the supply is only fair. Com parative sales and purchases are as follows: TRANSACTIONS IN BANKERS’ ACCEPTANCES Sales in Third District Weekly average for period ending—- To Federal Reserve Bank 1924— May 14.............................. MSS,000 56,000 April 9................................ March 12............................ 2,863,000 1923— May 16............................... 646,000 1922— May 14.............................. 2,208,000 To others 868,000 463,000 366,000 337,000 444,000 Third District 8269,000 5S1,000 622,000 200,000 790,000 J une eview Dealers report that offering rates for bills up to 120 days’ maturity were from 3y4 to 3*4 per cent on May 14. On May 21, however, prime bills were offered at 3 per cent, with 3^4 per cent bid. A year ago the offer ing rate for 90-day bills was 4*4 per cent. Twelve reporting banks in this district state that $3,108,000 of acceptances were executed in the m onth ending May 10, as compared with $3,596,000 in the preceding month and $3,767,000 a year ago. Each year the American Acceptance Council makes a survey to determine the amount of bankers’ accept' ances outstanding. Data for the Third District and for the United States are given below: Third District United States As of April 1— 1924.................................................. 810.735.000 '617,581,000 1923.................................................. 12,226,000 523.708.000 1922.................................................. 10.103.000 416.422.000 1921.............................................. 13.233.000 644.092.000 1920................................................ 26.195.000 799.001.000 The bulk of the acceptances created here are to finance import transactions but in the national figures export transactions are almost as large. The distribution of the acceptances outstanding on April 1, 1924, was as follows: Third District United S tates Classification— Imports........................................... $7,185,000 8250,882.000 Exports............................................ 1,108,000 213,847,000 956,000 28.029.000 Domestic......................................... Warehouse...................................... 1,486,000 99.582.000 25.241.000 Dollar exchange........................... Totals....................................... 810,735,000 M17,581,000 As compared with its activity during February and March, the foreign exchange market has been fairly quiet so far this month. Sonic Foreign exchange fluctuations, it is true, have oc curred in sterling, but these were mainly in the course of the usual processes of trading rather than because of political or other vital E uropean conditions. Since the first of the month sterling has declined about two cents and on May 21 was quoted at $4.3594. French francs have also declined from the levels quoted a month ago, the principal reasons for which are said to be the uncertainty as to the financial policy to be pursued by the incoming governing party in France and the growing numbers of striking miner5 in the Ruhr. The decline has not caused apprehensionhowever, in financial circles. On May 21 francs, were listed at $.0551, as compared with $0,672, on April 23. a loss of over 1 cent. The movement of Belgian franc5 T hird F ederal R eserve D istrict !924 as usual followed closely that of French currency, and they are now quoted at $.0467. Italian lire, on the other hand, have been remarkably steady at $.0444. Dutch guilders and Swiss francs are both stronger than they were at the end of April, but in neither case has the advance been great. On May 21, the former were quoted at $.3740, and the latter at $.1771. The reverse was true of Spanish pesetas, which during the month fluctuated somewhat and on May 19 were quoted at $•1387, a loss of 23 points from the quotations a month previous. Scandinavian currencies are both higher than they were during the middle of April, though the rise has been gradual. On May 21, Swedish and Nor wegian kroner were listed at $.2653 and $.1693 re spectively. With the exception of Chilean pesos, cur rencies of the more important South American countries have depreciated from the values quoted a month ago. On May 19, Argentine pesos were listed at $.7467, as compared with $.7492 on April 19, and Brazilian milreis from $.1183 to $.1082 during the same period. Quotations on Chilean pesos advanced at the close of the first week in May and at present stand at $.1107, representing a gain of 13 points over quotations at the end of April. Japanese yen did not touch the low record levels of last month, but have hovered fairly close to the 40 cent mark. On May 21 they were quoted ut $.4024. During the past four weeks Chinese tael (Shanghai) have gained over 1 cent and are now listed at $.7127. Quotations for Canadian dollars have declined since the first of the month, but at $.982852 are several points higher than they w'ere at this time last month. 9 sales exceeded by 7 per cent those made during the previous record month of May, 1923. The growing popularity of life insurance is further evidenced by the rapid gain in business during the past three years. Total sales increased 8.1 per cent from 1921 to 1922 and 19.6 per cent from 1922 to 1923. In this regard a quotation from the “Life Insurance Sales Research Bureau” may be of interest. “The increased sales of life insurance are a reflection of the prosperity of general business in 1923; of the ever increasing appreciation by the public of the uses and value of life insurance; and of the development of new uses for life insurance, such as in surance to pay ofif inheritance taxes, insurance to protect a business in the event of the death of an important offi cer or partner, and insurance to provide a fixed income to the beneficiary.” A comparison of life insurance sales in the Third Federal Reserve District with those in the country as a whole shows a marked similarity as regards both sea sonal variations and general trend; but the rate of gain in the former has exceeded that in the latter. Sales in this district increased 12.7 per cent from 1921 to 1922. 20.1 per cent from 1922 to 1923, and 16.3 per cent during the first four months of 1924 as compared with those in the same months of the preceding year. Busi ness in Pennsylvania showed the greatest proportionate gain in 1923, when sales increased 22.5 per cent. FOREIGN EXCHANGE RATES* Noon cables Par value M ay 21, 1924 April 21, 1924 May 21, 1923 b o n d o n .. $4.8665 $4.3594 $4.3823 84.6296 L a ris . .1930 .0551 .0635 .0667 A n tw e rp ................ .1930 .0467 .0542 .0574 M ila n . . . .1930 .0444 .0444 .0486 V ie n n a . .2026 .000014 .000014 .000014 A m s te rd a m .............. .4020 .3740 .3728 .3915 C o p e n h a g e n ............. .2680 .1693 .1666 .1861 ‘p oekh olm ............. M a d r id ... H erne. uenos A ires......... ^ h a n rfia i. • .2680 .1930 .1930 .9648 .7965 .2653 .1385 .1771 .7461 .7192 .2639 .1410 .1763 .7522 .6998 .2669 .1525 .1804 .8174 .7438 Compiled by the Federal Reserve Bank of New York. LIFE INSURANCE Depression in many industries has not as yet ad versely affected sales of life insurance in the United tates. During the first four months of 1924 they were and 37.2 per cent greater than during the similar Period in 1923 and 1922 respectively. Indeed, March Sales of life insurance in the states of the Third Federal Reserve District have shown the sam e general trend as in the United States as a whole during the past three years, and seasonal fluctuations have also been sim ilar. Source—Life Insurance Sales Research Bureau. A more or less definite relationship exists between sales of life insurance and debits to individual banking accounts in this country, as is indicated by the accom panying chart. Although the former have increased more rapidly than the latter, the general trend is much the same. In 1923 business in life insurance was 29.2 IO T he B u s i n e s s R eview J une and the consumer is buying cautiously and watching prices closely. Individual sales are harder to make than they were in the previous months of this-year, and buying is confined chiefly to necessities. However, the advent of warm weather is expected to stimulate sales. The general trend of prices is downward, but linens show an advance of about 5 per cent. Silks, hosiery, cotton goods, linoleums, and rugs are lower than they were at the beginning of April, and nearly all articles used for apparel can be obtained at concessions in price. Most articles of furniture also are cheaper than they were a month ago. Retail sales in this district during April were 21.4 per cent greater than those of April, 1923. Women’s apparel and men’s apparel stores showed the greatest gains 52.5 and 32.9 per cent respectively. Sales by department stores increased 17.5 per cent over those of There is a sim ilarity between sales of life insurance and debits to in last April, and sales by credit houses 12.0 per cent. dividual banking accounts as regards both general Taken as a whole, the total for the first four months trend and seasonal fluctuations. of 1924 was 5.4 per cent greater than that of the same Source—Life Insurance Sales Research Bureau period in 1923. Easter business was larger than the advance reports indicated and considerably greater than per cent greater than in 1921, while debits to individual that of 1923. The combined sales of March and April, accounts were 18 per cent greater. Seasonal fluctuations 1924 were 3.8 per cent larger than those of March and are likewise similar. From these facts the conclusion April 1923. may be drawn that ordinarily business in life insurance is best when general business activity is greatest, and WHOLESALE TRADE vice versa. Sales of life insurance show a marked seasonal move Prices in most wholesale lines continue to decline. ment, as an examination of the preceding charts will What advances have occurred are few in number and indicate. It is evident that there are two distinct sea have affected such articles as botanical drugs, spices, sons, one in the spring and the other in the fall. From dried and canned fruits, and linens. Preliminary re February to May, sales usually increase, and in each ports indicate that in most of the reporting lines, sales of the past three years a peak was reached in May. during May have been smaller than they were in May, During the summer and early fall when both insurance 1923. But in a majority of the trades stocks are de salesmen and their clients are on vacations and business creasing, owing to small purchases. For some months in general is slack, sales of life insurance decline. In past, stocks have been larger than they were at the October, however, they again increase, reaching another same period in 1923 in nearly all branches, but now peak in December. Heavy sales of insurance during four of the seven lines reporting stocks are carrying the latter part of the year are mainly due to three fac lower inventories than in 1923. Collections vary con tors; first, the ending of the period of vacations, second, siderably, but on the whole are slower than they were a seasonal improvement in business conditions, as seen a year ago. in the gain in debits; and third, renewed effort on the During April sales were smaller than they were in part of both salesmen and agencies to equal or exceed March, except of shoes and hardware, and were also their quotas for the year. After the Christmas season smaller than in April, 1923, except of shoes and drugs. sales of life insurance fall off somewhat. Stocks decreased during April in five lines, but were larger in jewelry and electrical supplies. Since Easter, wholesale business in shoes has becom e RETAIL TRADE dull, and incomplete reports for May indicate that total sales will be smaller than they Advance reports from men’s apparel, women’s ap were last May. Retailers reduced parel, and department stores indicate that sales during Shoes their stocks of shoes considerably May will not be as large as were those of May. 1923. Cool and rainy wreather during the greater part of the during April as a result of the satisfactory holiday trade, month has retarded sales of summer goods and dresses but have not come into the market with replacement or and of light weight suits. The slackening of industrial ders in as large a way as was expected. With one ex activity is making itself felt in retail establishments, ception, all the firms report that all goods sold are to 1924 T hird F ederal R eserve D istrict 11 RETAIL TRADE Third Federal Reserve District Index Number (Per cent of 1923 monthly average) 115 112 113 107 95 93 100 124 117 130 106 131 110 116 113 114 107 138 110 168 99 135 Comparison of net sales Comparison of stocks Rate of turnover* Jan. 1 to Apr. 1924 Apr. 30, 1924 Apr. 30, 1924 Apr. 30, 1924 Jan. 1 to Jan. 1 to with with with with Apr. 1923 Jan. 1 to Apr. 30, 1923 Mar. 31, 1924 Apr. 30, 1924 Apr. 30, 1923 Apr. 30, 1923 +21.4% + 5.4% +21.7“ + 6 .0 “ +22.5 “ + 4.1 “ + 14.9“ + 0 .6 “ + 9.5“ + 3.1 “ +21.9“ + 3.3 “ 6.6 “ + 6.5“ + 19.3“ + 5.1 “ + 16.2 “ + 3.8“ +32.9 “ + 7.6 “ + 14.1 “ + 4.2“ +28.1 “ + 8 .0 “ + 9.0“ 0.7 “ +24.7 “ + 5.4 “ +23.9 “ + 2.5“ +25.0 “ + 8.4“ + 17.5 “ + 4.1 “ + 16.4 “ + 4.6 “ + 19.7 “ + 2.8 “ +46.3 “ + 13.3“ +32.9“ + 5 .0 “ +20.7 “ + 1.9“ +47.1 “ + 8.6“ +52.5 “ + 18.4“ +56.3 “ + 20.8 “ +35.3 “ + 5 .0“ + 12.0“ il + 7.0“ — — +28.8 “ | + 8 .0 “ + 5.4% + 5.5 “ + 5 .6 “ + 5.4 “ 0 .8 “ + 7 .4 “ + 2 1 .4 “ + 3.2 “ + 2 .1 “ + 9.1 “ + 3.4 “ + 4 .9 “ + 1.4“ + 1.6 “ 0.9 “ + 3.1 “ — — 2 .9 “ — 0.5 ‘ — 0 .7 “ — 1.5“ + 2 .6 “ + 9 .2“ — 0 .4 “ + 1.3“ — 4 .0 “ + 3.4 “ + 4.8 “ — 2 .0 “ + 3 .3 “ — 2.3 “ + 3.4 “ + 4.S “ + 4.8 “ + 4.7 “ - 1.3 “ - 3.0“ + 1 .8 “ + + + + + + + + + - 1 .0 “ 4 .2 “ 1 0 .5 “ 0.9“ 4.1 “ 4 .0 “ 4 .2 “ — — 1 0 .5 “ 10.1 “ 1 1 .6 “ 8 .7 “ 7 .2 “ 8.1 “ 4 .3 “ C O All reporting firms................................................... Firms in—Philadelphia.......................................... —Allentown, Bethlehem and Easton. .. —Altoona................................................... —Chester................................................... —Harrisburg............................................. —Johnstown.............................................. —Lancaster............................................... —Reading.................................................. —Scranton................................................. —T renton................................................... —Wilkes Barre........................................ —Williamsport..... .................................. —Wilmington........................................... —Y ork.................................................... —All other cities...................................... All department stores............................... Department stores in Philadelphia........ Department stores outside Philadelphia All apparel stores................ Men’s apparel stores........... —in Philadelphia........ —outside Philadelphia Women’s apparel stores... . —in Philadelphia........ —outside Philadelphia. Credit houses Shoe stores... i. + 9 .4 “ ] - 0.7 - 0 .4 “ - 4.4 3.3 3.7 2.1 2.5 2.3 2.7 3.3 3.8 2.3 2.7 2.4 3.2 2.1 2.9 2.9 3.1 2.0 1.8 2.5 2.1 3.2 3.6 2.4 4.3 2.3 3.3 3.6 2.5 4.3 2.4 2.0 6.4 7.3 3.7 2.1 2.4 2.4 3.5 3.3 2.6 2.2 2.6 2.6 3.1 30 2.8 21 1.8 2.4 2.1 2.8 5.9 6.7 3.7 *Times per year based on cumulative period. be shipped either in May or early June. For women, patent leather, satin, and white kid pumps are in best request. For men, light tan calf oxfords, and for misses and children patent leather and tan calf oxfords are the most popular. Prices, except in a few instances, hold firm, but purchases by wholesalers for next fall are smaller than they were a year ago, and many shoe man ufacturers are anxious for business. Sales during April were larger by 20.2 per cent than m March and by 17.4 per cent than in April, 1923. Stocks were reduced, and on April 30 were smaller by 10-7 per cent than on March 31 and by 10.0 per cent than on, April 30, 1923. Collections have improved, as compared with both a month ago and a year ago, as ls shown by the ratio of accounts outstanding to sales, which on April 30 was 221.2, on March 31 was 244.9, and on April 30, 1923, was 268.2. Preliminary reports of sales of dry goods during May indicate that dulness continues and that though in some cases transactions are in Drygoods about the same volume as they were during April, in more in stances they are smaller. Prices continue to fall on silks, ribbons, silk and artificial silk hosiery, and all cotton goods. Linens, however, are stronger and are selling well. A fair demand is noted for silk hosiery, wash dress goods, light underwear, and laces; but as in recent months, the bulk of the orders are for ship ment within 30 days. A few wholesalers, however, report that some orders for July shipment have been taken for early fall goods. The present inactivity in sales is reflected in smaller purchases by jobbers for their fall needs. During April, sales decreased 12 per cent from those of March and were 11.1 per cent less than in April, 1923. Stocks on April 30 were smaller by 1.6 per T he B usiness R eview 12 J une WHOLESALE TRADE Third Federal Reserve District Percentage of increase or decrease in Net sales April 1924, compared with Stocks April 1924, compared with Ratio of accounts outstanding to sales Accounts outstanding April 1924, compared with Mar. 1924 Boots and shoes............ Drugs............................... Drygoods........................ Groceries......................... Hardware........................ Jewelry............................ Paper............................... Electrical supplies......... Apr. 1923 M ar. 1924 Apr. 1923 M ar. 1924 Apr. 1923 Apr. 1924 Mar. 1924 Apr. 1923 + 20 .2 % - 1.9“ - 12.0 “ - 4.8“ + 4.2“ - 6.9“ - 6.5“ + 17.4% + 5.4“ - 11.1 “ - 3.3“ - 5.1“ - 9.5“ - 2 .6 “ -10.7% - 1.6 “ - 3.3“ - 0.3“ + 2.3“ - 3.2“ - 10.0 % + 10.3“ + 8.1 “ + 6 .0 “ - 2.5“ + 8.5% + 1.5“ -1 4 .7 “ - 2 .1 “ + 2.9“ + 1.9“ - 1.8 “ - 3.0% + 2 .8 “ -1 1 .5 “ - 2.3“ + 4.2“ + 4.0“ - 2 .2 “ 221 .2 % 244.9% 136.5 “ 269.C “ 113.4“ 171.8“ 315.3“ 268.2% 139.3 “ 261.9“ 1] 1.2 “ 154.6“ 307.4 “ - 7 .6 “ - 1 2 .8 “ + 4 .8 “ - 0.1 “ - 1 4 .3 “ cent than on March 31, but as in recent months, were heavier than they were a year previous. The increase as compared with April 30, 1923, was 10.3 per cent. The ratio of accounts outstanding to sales was 260.8 on April 30, 269.0 on March 31, and 261.9 on April 30, 1923. This indicates that collections improved during April as compared with March, and were better than they were in April, 1923. Sales of jewelry, like those in most of the other wholesale lines reporting to this bank, are reflecting the general slowing down of Jewelry business which has been notice able during the past two months, and preliminary reports indicate that the total during May will be smaller than that of May, 1923. The demand for platinum rings and for mountings for the re-setting of old stones continues to be good, and a fair request is noted for silverware, watches, fancy goods suitable for summer resort trade, and imported bead necklaces. Prices are practically unchanged. Purchases by wholesale dealers for next autumn’s busi ness are smaller than were those of a year ago, even though stocks are lighter than they were then. During April, sales were smaller by 6.9 per cent than in March, and by 9.5 per cent than in April, 1923. Stocks increased during the month and on April 30 were 2.3 per cent higher than on March 31. But they were smaller than on April 30, 1923, by 2.5 per cent. Collections were slower during April than either in March or in April, 1923, as is shown by the ratio of accounts outstanding to sales, which was 345.0 on April 30, 315.3 on March 31, and 307.4 on April 30, 1923. Sales of paper at wholesale show a further decrease and are not as large as they were last month. On the whole, business is only fair. The Paper demand for book and fine papers is sustained, but that for tissues and cover papers is weaker. The call for building papers, boxboards, and wrapping papers has declined. - 6 .6 “ - 1 0 .4 “ 139.S “ 260.8 “ 112.5“ 170.3 “ 345.0 “ 140.5 “ 146.3 “ 133.7 “ 144.7 “ 139.9 “ 142.3 “ Newsprint continues to be in good demand. Prices, however, are firm and unchanged. Jobbers’ stocks are moderate and slightly smaller than they were in April. Collections are a trifle slower than they were a month ago and are fair. April sales were 6.5 per cent smaller than in March and 2.6 per cent less than in April, 1923. The ratio of accounts outstanding to sales was 140.5 in April, as compared with 133.7 in March and 139.9 in April, 1923. The net sales of 32 wholesale hardware firms in this district were 4.2 per cent larger in April than they were in March but 5.1 per cent Hardware smaller than those during April. 1923. Our index of sales for the month was 4 points higher than the number for March and 12 points below that for April of last year. The demand for hardware is from fair to good and some what better than it was at this time last month. The movement of seasonal goods has of course increased, particularly farming equipment such as wire fencing, garden tools, and implements. Dealers report, too, that the call is stronger for mine and mill supplies and for construction hardware than was the case a month ago, Prices, in general, are slightly lower than they were at this time in April, though many wholesalers state that their quotations are unchanged. Conflicting opinions are given as to whether or not they are lower than they were a year ago, but some of the largest wholesalers state that they have not maintained the levels held during May. 1923. According to an analysis of the reports received by us, stocks on hand were 0.3 per cent smaller at the end of April than on March 31 and 6.0 per cent in ex cess of those on April 30, 1923. Collections may be classified as fair. On April 30. the ratio of accounts outstanding to sales was 170.3, a decrease of 1.5 points from the figure at the end of March, and an increase of 15.7 points from that of April 30. 1923. T hird F ederal R eserve D istrict f924 The net sales by six wholesale electrical firms in Philadelphia were 7.6 per cent smaller in April than in March and 12.8 per cent Electrical supplies smaller than in April of last year. TThe call for electrical supplies is only fair, and most dealers agree that it is not as strong as it was a month ago. Contractors and dealers in household appliances are placing the majority of orders. Sales of radio equipment, however, have de creased, which fact is ascribed to the arrival of spring weather with its attendant opportunities of being out of doors. Prices are practically the same as they were a month ago, as the few reductions reported have been small. Except those on some articles carried by competitive chain stores, prices are much the same as they were in April, 1923. Stocks in the hands of firms reporting to this bank are 4.8 per cent larger than they were in March, but 14.3 per cent smaller than at this time last year. Collections are fair. In April the ratio of accounts outstanding to sales was 146.3, a gain of 1.6 points fi'om the figure for March, and of 4.0 points over that for April, 1923. The wholesale drug market is not quite as active as it was in April; but the volume of trade is greater than in May, 1923. Insecticides, disDrugs infectants, and spraying materials are in request, but spring goods are moving rather slowly. Pharmaceuticals and patent medicines are selling in fair volume. Botanical drugs are in demand, and prices are higher than they were Est month. On the other hand, fine drugs and chemlcals are not selling as well as they did in April, and Pnces have softened. The price indexes of 40 botan!cal drugs and 35 drugs and fine chemicals, as compiled by the “Oil, Paint and Drug Reporter,” are given below. Price index of 40 botanical Price index of 35 drugs and drugs fine chemicals 1924 April 28 « • .................. p May 19 .............. 1923 1924 1923 127.1 134.7 139.8 139.6 151.8 152.0 144.8 149.9 206.5 204.8 202.7 171.5 171.3 171.5 171.5 201.8 fn April wholesale drug sales were 1.9 per cent ^mailer than in March, but 5.4 per cent larger than in Pnl, 1923. Stocks at the close of April were larger Man at the end of March. The ratio of accounts out standing to sales was 139.8 in April, as compared with U6-5 in March and 139.3 in April, 1923. 13 The demand for groceries is fair and slightly weaker than it was a month ago. Materials for house cleaning, such as brooms, scrub brushes, Groceries and soap, are moving actively, and dried fruits, canned fruits, canned vegetables, fruit juices, and preserving jars are in request. The trend of prices is downward, as more items have declined than have advanced. Sugar, cheese, cooking oils, canned milk, butter, eggs, and navy beans have dropped; spices dried fruits, and canned fruits have advanced. Jobbers’ stocks are slightly smaller than they were a month ago, but larger than in May, 1923. Wholesale grocery sales in April were 4.8 per cent smaller than in March and 3.3 per cent less than in April, 1923. Many jobbers attribute the decline, as compared with last April, to smaller sales of sugar. Prices of sugar in April, 1923, were rising, and re tailers bought quite heavily; but now they are taking only enough to meet immediate needs. The ratio of accounts outstanding to sales decreased from 113.4 in March to 112.5 in April. SUGAR During the month the two leading Cuban sugar statisticians, Messrs. H. A. Himely and Guma-Mejer, have revised their estimates of Raw sugar the 1923-1924 crop upward. In anticipation of these revisions prices have steadily declined since the close of last month and touched a lower level than they have at any time since March, 1923. On April 25 Cuban raw sugar, for prompt shipment, was selling at 4p2 cents, c & f, but prices steadily softened, and on May 7 the same quality sold at 4 cents, c & f. For a few days following, raw sugar actually advanced in price, but a reaction soon set in, and on May 14 Cuban raw sugar for prompt shipment was selling at 3j4 cents, c & f, the low price of this year. Since that date prices have fluctuated slightly and on May 22 closed at 3 jj cents, c & f. Several sales of Porto Rican sugar were made during the month at prices equivalent to those paid for Cuban. Despite the sharp drop in prices, refiners have bought cautiously and only for immediate needs. British refiners have purchased heavily in the Cuban market, and the low prices have induced them to place some orders for July-August arrival. Refiners of France and Holland also have bought Cuban sugars, but only in small lots. The prices paid by European purchasers have been the equivalents of the c & f, New York, prices as fixed on the New York Sugar Exchange. The grinding season in Cuba is rapidly drawing to a close, and the output of the mills that have closed has been considerably larger than estimates made at the end of last year indicated. Cables from Havana on T he B u s i n e s s R evi ew May 14 announced that 104 centrales had stopped grinding and that their total production was 90,000 tons larger than Himely’s December estimate showed for these mills. On May 2, Guma-Mejer increased their estimate for the entire Cuban crop to 3,900,000 tons, which was 150,000 tons greater than their1December estimate. On May 12 Himely revised his estimate to 3.985.000 tons from the 3,813,000 tons which he an nounced in December. He explained that this revision was caused by the very favorable growing conditions and the high sugar content of the cane, which has equalled at least 11 Jd per cent of the cane poundage. World sugar production for the crop year 1923-1924 will be the heaviest on record, despite the fact that European beet output is only 5/6 as large as was the average annual yield for the 5 years preceding the war. As shown in the following chart, European production has steadily increased in each year since 1920 and soon should equal pre-war output. The world’s sugar pro duction for 1923-1924 is estimated at 19,286,000 long tons, and European production for the same year at 4.971.000 long tons. SUGAR PRODUCTION MILLIONS---------------------------------------------------------------------------------------or dm s 201 World’s production (cone and beet su$jor) ---------------- * --------------------------------------------- The 1923-1924 sugar crop Is the largest on record and is 15 per cent greater than the average crop for the five years preceding the war. European production of beet sugar is at the highest p oin t it has reached since the close of the war but is still 16 per cen t below the average for 1910 to 1914. Sources—D epartm ent of Agriculture, American Sugar Bulletin J une ports on May 1, 1924, were 175,000 tons larger than on the same date last year. Raw sugar receipts at the ports of Baltimore, Phila delphia, New York, and Boston for the first three weeks of May were smaller than in the same period of 1923. The following table shows how receipts in the same periods of both years compare. RECEIPTS OF RAW SUGAR AT ATLANTIC PORTS* Tons (2240 lbs.) April 25 to April 27 to May 16, 1924 May 18, 1923 From Cuba.............................................. From Porto Rico.................................... From Philippine Islands....................... From other countries............................ Total receipts..................................... 135,675 tons 169,206 tons 35,056 “ 40,245 “ 23,433 “ 10,534 “ 674 “ 194,764 tons 220,659 tons * American Sugar Bulletin. Declining prices have made buyers extremely cautious in their purchases, and the demand for refined sugar continues to be only fair. Refined sugar Consumers will purchase ahead only when refiners will guar antee their quotations against decline. On May 1 prices for fine granulated at the refineries ranged from 7.80 to 8.10 cents per pound, but by May 9 they had fallen to 7.40 or 7.50 cents. Since then one refiner has lowered his price to 7.25 cents, but all others are asking either 7.40 or 7.50 cents. Very little sugar has been offered on the market by secondhands during the month, and the few lots that appeared were quickly sold. The export business has been more active than for several months, although it is by no means large. The reduction in British sugar duties has brought in quiries and a fair amount of business for refined sugar for export to Great Britain. South American coun tries have bought moderate quantities during the month, but other countries have not entered our market. Refiners’ stocks at Atlantic ports on May 9 were considerably smaller than on the same date last year and during the past six weeks have been steadily de clining. For this season of the year, refiners’ stocks are unusually light, but in view of the steadily falling prices and the rather slight demand, this was to have been expected. Meltings for the first three weeks of the month at the refineries in Baltimore, Phila delphia, New York, and Boston amounted to 223,000 tons, as against 232,000 tons for the same period of 1923, a decrease of 4 per cent. Up to the present time the uprising of the rural guard in Cuba has caused little interference with sugar movements from the interior to the ports. Receipts of sugar at Cuban ports from January 1 to date have been somewhat larger than they were for the cor responding period of 1923. Exports from the island for the same periods have been slightly smaller in 1924 than they were last year. The United States up to BUILDING May 1 had taken 145,000 tons less than in the same period of 1923, but this has been offset to a slight The amount of new building in the Third Federal extent by heavier exports to Europe. Stocks at Cuban Reserve District during April was substantially greater T hird F ederal R eserve D istrict J924 15 BUILDING PERMITS Third Federal Reserve District April, 1924 Permits Allentown.......... 174 Altoona.............. 326 Atlantic City. . . 161 Bethlehem.......... 55 Camden.............. 138 Harrisburg. . . . 168 Lancaster........... 168 Philadelphia... . 1,582 Beading............ 380 Scranton ............ 238 Trenton.............. 305 Wilkes-Barre.... 213 Williamsport... . 200 Wilmington........ 132 York... 320 Total.............. 4,560 Operations Estim ated cost Permits $748,900 156 756,134 321 408 478,123 173,700 73 638,530 104 2,145,710 148 128 498,265 18,946,260 1,540 462 1,432,475 582,370 214 552,609 226 560,192 154 147,982 135 351,232 136 212,691 218 $28,225,173 4,423 244 414 161* 61* 18S 239 200 2,675 449 238* 305 213* 200 * 132 320 6,039 January to April, inclusive April, 1923 Operations Estimated cost 225 341 408* 73* 127 190 128 2,984 512 214* 299 154* 135* 268 218 6,276 1924 1923 Number Estimated cost N umber Estimated cost $950,160 374 $2,001,325 1,248,165 799,333 623 1,053,656 2,095.412 643 380,885 152 402)999 1,784,601 426 1,812.524 841.020 366 3,368)240 371,340 364 2,403,955 19,729.815 5,032 50,519,230 649)875 2,565,650 924 465,195 544 1,427.635 647,435 709 1,898)369 506,536 492 1.266,464 51,615 344 '344,495 570.682 372 1,608,615 359,781 608 744,272 $29,162,129 11,973 $73,707,350 331 $2,414,505 584 1,253,539 4,004,725 1,134 130 518.127 3,180)462 309 334 4,029,125 302 1,119,535 4,414 54,098,560 1,014 2,083,930 416 1,359,908 502 2,626,051 958,437 327 574,740 217 1,501,638 366 1,065,476 467 10,847 $80,788,757 ^Operations not reported. NEW BUILDINGS AND ALTERATIONS 1924 1923 Alterations New Buildings __ Allentown. . Altoona.. Camden.. Barrisburg. . Lancaster. . Philadelphia. . . Beading............ Iren ton. . . .Williamsport... Wilmington.., York... Permits 124 126 64 145 84 900 104 270 60 101 121 Operations Estim ated Cost 194 $679,400 669,222 214 590,735 114 212 2,094,135 438,675 116 1,974 18,168,680 173 1,327,950 523,794 270 60 105,290 101 324,762 121 139,320 New Buildings Operations Estim ated cost 50 50 200 74 74 27 23 84 84 701 682 276 276 35 35 14 • 14 31 31 199 199 $69,500 86,912 47,795 51,575 59,590 777,580 104,525 552,609 42,692 26,470 73,371 Permits 200 than that of March, but the increase in total value was less than it was between February and March, when it exceeded $13,000,000. Fifteen cities in this district report that 4,560 permits were issued in April, the estimated cost of which totalled $28,225,173. These r* ngures represent an increase of 822 permits and of K ? 6 1,129 in cost over those tabulated during March. In the corresponding months of 1923 the number of Permits increased by 1,286, but the estimated cost was $2,772,094 less than during March of that year. In every city except Philadelphia, Camden, and Bethlehem *he number of permits issued in April was greater Permits Operations Estim ated cost 119 188 $900,685 132 152 746,693 64 87 1,663,310 128 170 796,020 70 70 333,382 875 2,284 19,205.805 156 206 493,550 200 271 615,525 87 87 43,465 103 235 542,162 106 106 292,222 Alterations Permits Operations Estimated cost 37 189 40 20 58 665 306 26 48 33 37 189 40 20 58 700 306 28 48 33 $49,475 52,840 121,291 45)000 37,520 524.010 156,325 31,910 8,150 28,520 67,559 112 112 than during the preceding month, but in each of these three cities the estimated cost was greater. On the other hand, Lancaster, York, Wilmington, and Tren ton reported a decrease in total cost. In Atlantic City both the number of permits issued and the probable cost were less than in March. In Philadelphia 1,582 permits were granted in April, as compared with 1,610 permits issued during March, but the estimated cost rose to $18,946,260, an increase of $3,189,700. On May 1, the index of building costs, compiled by the Aberthaw Company from prices of various materials, labor, and other vital factors, fell T i6 he B usiness two points from the figure calculated on the first of the preceding month. The wet spring has somewhat retarded the demand for building bricks, and though in nearly all cases it is classified as either fair or good, Bricks it is very little better than it was a month ago and not as strong as it was at this time last year. Most of the orders are for delivery within 60 days, with a fair proportion for up to and beyond 90 days. It is to be noted that some resistance to present prices is being met, and that in cases in which con cessions are granted a stimulation in demand is imme diately observed. One manufacturer remarks that in the Philadelphia market, the supply of old bricks made available by the demolition of structures in the path of the new Delaware River bridge has made it more difficult to dispose of new bricks at the prevailing prices. Though quotations are the same as they were a month ago and in nearly all instances are character ized as firm, some weakness is noted in prices for both building and fire bricks. O utput of face bricks during April of this year, as reported by plants m aking about one-third of the total output of the country, was alm ost as great as it was in the peak m onth of August, lv23. Source—D epartm ent of Commerce Stocks of finished bricks are in some instances heavy, but in general they are moderate. Reports are con flicting as to whether they are increasing or decreasing. Supplies of raw materials average close to moderate and are tending to diminish. Operations are being carried on at very near the high rate maintained during April, and the average for firms reporting in this district is approximately 90 per cent of capacity. During April 26,373,000 face bricks were produced in the United States, an increase of 5,307,000 over the totals in the preceding month. Output by months since January, R eview J une 1923, is given in the accompanying chart. Unfilled orders are of about the same size as they were at this time last month, and those now on the books will insure operations at the current rate for from a week up to the balance of the year. The average period is esti mated to be something over 3 months. In one case the supply of skilled labor is reported to be scarce. In all other instances, however, the number of both skilled and unskilled workers is either suffi cient or plentiful. No wage changes have been made in either class. Collections are fair and the same as in April, hut are slower than they were at this time last year. Both manufacturers and dealers find that the call for plumbing supplies is fair but not as good as it was a year ago. Consumers are buyPlum bing supplies ing more actively from dealers than they did at this time in April, hut in spite of this the volume of manufacturers’ sales is not as heavy as it was a month ago. Though present conditions in the industry are felt to be satisfactory, some dealers state that the volume of new business is disappointing and that sales have been reduced by the postponing of several construction projects. Orders already taken by manufacturers are in the main for delivery within 30 or 60 days, though many are being prepared for shipment after both the 60 and 90 day period. Quotations have been shaded on many articles, es pecially merchant pipe and steel products. For this reason it is difficult to generalize as to present prices, which are variously reported as weak and firm. Sev eral reports received by this bank state that they are slightly lower than they were a month ago. Enameled goods and pottery are fairly steady, but quotations on iron appliances are far from firm, and frequent resist ance is encountered. Stocks of finished goods in the hands of manufac turers are from moderate to heavy and are somewhat larger than they were a month ago. but dealers’ stocks, though likewise either moderate or heavy, are held at practically stationary levels. Supplies of raw mate rials are only moderate and are decreasing. Producers reporting to us are operating at an aver age of 75 per cent of capacity, but in only one instance are operations maintained at the maximum. With un filled orders now on the books, manufacturers can con tinue the present schedule for an average of approx imately seven weeks. The supply of both skilled and unskilled labor is sufficient and even plentiful. In but one case is any scarcity reported, and that is in skilled workers. Collections are barely fair and are not as prompt as they were at this time either last month or last year. 1924- T hi rd F ederal R eserve D istrict The call for lumber is either fair or good, and reports from manufacturers indicate that it is some what better than it was a month Lum ber ago but not as satisfactory as in ,s: May, 1923. Dealers, however, state that demand is not only inferior to that at this time last year, but poorer than it was in April. The call for the better grades of hardwood has been fairly good, and that for west-coast woods in particular has im proved, on account of the increased efforts of dealers to move these grades. Northern white pine is selling at a fairly steady rate, as are cypress and fir. Timbers and flooring of the yellow pine variety are in fair re quest, and the call for laths and shingles is better than it was a month ago. Though prices are firm in some cases and weak in others, they have not changed appreciably since this time last month. Spruce and cypress are steady, but several grades of yellow pine are slightly lower. In instances in which weak and lower prices are noted, it is observed that this is the result of hesitancy on the part of buyers rather than of any reduction in pro ducing costs. As is to be expected, resistance to prices, especially to those quoted by manufacturers, is encoun tered frequently. Stocks of finished goods are moderate and for the most part stationary, as are also supplies of raw materials. Manufacturers reporting to us are operating at an average of nearly 75 per cent of capacity, which is very close to the rate of a month ago. Unfilled orders now on hand will insure the continuance of this schedule for an average of approximately ten weeks. The supply of both skilled and unskilled labor is from sufficient to plentiful. In but one instance is any shortage re ported, and that was in skilled workers. Three manu facturers state that wages have been advanced from 10 to 12^ per cent, but the majority announce no changes. Collections are fair but are not as satisfactory as they were either at this time last month or in May, 1923. As is true of many other commodities, the demand foe paints consists of requests for limited quantities, and the irregular way in which orders have been received during the past few weeks has rendered the market decidedly spotty. The call may be char acterized as fairly good, however, and manufacturers ln this district state that though it is better than a ^onth ago, it is not as good as at this time last year. Colors in oil are in fair request, but the call for dry colors and lead pigments is quiet, principally because ° f the belief among consumers that prices will fall. Paint In most instances prices are firm, but some weakpsses have developed, particularly on quotations for PJg lead. Successive declines in the price of this have exentually resulted in a reduction of quotations for several lead pigments as well as for red lead. Some i7 dry colors are also quoted at lower levels than they were at this time last month, chief among which are blues, greens, and reds. On May 19 the spot price of linseed oil in tank-car lots was 94 cents per gallon. Stocks of both finished goods and raw materials are moderate and are tending to decrease, though in one case the supply of raw materials is reported as heavy. The average rate at which manufacturers reporting to this bank are operating is close to 80 per cent of capacity, which is somewhat higher than their average rate at this time last month. Unfilled orders are slightly larger than they were during April, and will guarantee the continuance of the present rate of production for about a month. With the exception of one instance in which a scarcity of skilled workers is reported, the supply of all classes of labor is sufficient. One manu facturer announces an increase of 10 per cent in the wages of unskilled workmen, but in general wages are the same as at this time last month. Collections are only fair and are not as prompt as they were in April or during May of last year. The demand for slate cannot be described as more than fair, and though better than it was in April, it is not as strong as it was in May, Slate 1923. In most cases, consumers have specified delivery on orders already placed for within 60 days, but as is usually the case, a fair proportion are for up to and beyond 90 days. Prices, in general, are firm; and in but few instances are they reported as weak. Quotations have changed very little from those prevailing a month ago, and what decreases have occurred have been small. Most of the resistance is to prices on building slate and shingles, though some protest is voiced against current quotations for electrical slate. There is considerable competition in prices with substitute materials, of which Belgian asbestos shingles are perhaps the most for midable. Stocks of finished goods are moderate and show a tendency to lighten, but due consideration should be given the fact that manufacturers of many elec trical grades and of blackboard slate carry no completed stocks whatever, since all their products must be pre pared under individual specifications. Now that the ice and snow season is past, conditions under which slate in the rough is procured are much more favorable. Manufacturers reporting in this district are running at an average of about 83 per cent of capacity, which is slightly higher than the rate maintained at this time last month. Unfilled orders are of much the same size as they were during April, and orders already taken will insure the continuance of the present high schedule of operations for from two weeks to four months. Some scarcity is noted in the ranks of both skilled and unskilled workers, but in other instances a surplus is reported. Generally speaking, the supply of both classes of labor is ample. An advance has been made in the i8 T he B u s i n e s s R eview J une funds. Second mortgage money is still very scarce, and in some parts of this district commissions as high as from 15 to 25 per cent are paid to brokers for ob taining it. Plowever, the usual commission on second mortgages varies from 5 to 10 per cent. Building materials are in abundant supply, and the trend of prices is slightly downward. Both skilled and REAL ESTATE unskilled laborers, with the exception of plasterers, are Builders report that houses costing from $6,000 to plentiful. Wages, however, have not changed and are $10,000 are still selling actively, but that higher-priced the same as they were three months ago. residences are in less demand than they were last spring. One dealer estimates that about 75 per cent IRON AND STEEL of the present residential construction is in houses and 25 per cent in apartments. The demand for highUntil very recently, business sentiment in the iron priced apartments has been satisfied, and most of the and steel industry during the past month has left much current apartment house construction is for moderate- to be desired, and the lack of demand for pig iron and priced suites which rent at from $50 to $70 per month. the major grades of steel has been provocative of con New industrial and commercial construction is not as siderable comment throughout the district. Various rea large as it was last spring, but the total volume is still sons have been assigned for the decrease in inquiries big. The scale on which public works, particularly and the apparent lack of interest among consumers, school buildings, are being undertaken is about the same chief among which have been the political uncertainty as that of a year ago. preceding the presidential nominations and the anticipa Real estate brokers state that a ready market exists tion of a further decline in prices. In the last week, for new houses selling at from $6,000 to $8,500 and however, there have been indications that the tide is for old structures at prices ranging from $4,000 to turning. Inquiries have become more numerous, and $6,500. But at prices above these, considerable effort some fair-sized contracts have been closed, which has is required to effect the sale, and many dealers state given rise to the belief among furnace interests that that the market is not as active this spring as it buyers can no longer postpone purchases for third-quar was last. Rents for houses are practically the same as ter requirements. This impression is further strength they were three months ago, but in some parts of ened by the fact that as production has been materially Philadelphia apartment house owners are offering con curtailed, stocks are decreasing. cessions to prospective tenants. This is true chiefly of Speaking, however, of conditions during the month as the higher-priced apartments, many of which are now a whole, the demand for pig iron has been poor and vacant. Moderate and low-priced apartments, ranging compares unfavorably with that during April. The call from $35 to $75, are easily rented and of these very for iron and steel castings is barely fair, and manu few are vacant. Six-room houses renting at about $50 facturers reporting to us state that though railroads, per month are in excellent demand, and the supply contractors, and the automotive industry are taking fair of these is still insufficient. Office space is plentiful, sized deliveries, there has been little or no improvement and in some parts of Philadelphia office rents have in the demand from these interests over that in April. recently been reduced by from 10 to 20 per cent. Prices Within the last few days the call for iron and steel bars, of building sites, except in districts where recent im particularly the latter, has improved. During the first provements have been made, have not changed during two weeks of the month, however, the demand was from the past quarter. poor to fair and scarcely as strong as it was in the cor Mortgage money is still scarce, and especially for responding week of the month before. Steel scrap and second mortgages. The majority of building and loan crude steel are moving somewhat more briskly, as are societies have lent all their available funds for from two plates and structural shapes, but this, too, is a recent to four months ahead, and because of the unwillingness development, and immediately prior to it the demand of the banks to extend them further loans, are unable was scarcely fair. Orders placed by mill supply dealers, to accommodate all of their applicants. Trust com public utilities, and railroads are responsible for a fair panies throughout the Third District have lent all of call for machinery and tools, but the volume of commit their funds available for mortgage purposes and have ments is not as substantial as it was a month ago. One been obliged to reject many applications. Considerable manufacturer observes that most of the inquiries are for amounts of money, however, are being invested in first- small lots and that he has had little demand for the class mortgages by insurance companies, and this has more expensive types of heavy machinery. The call afforded some relief. The rate of interest charged by for both light and heavy hardware is weak, and though most lenders is still six per cent. Mortgage brokers it is slightly better than it was at this time last month, receive from 2 to 3 per cent for obtaining first mortgage manufacturers of plumbing fixtures and construction wages of all workers by some manufacturers, but such increases were not general throughout the district. Collections are from fair to good, and though slighth poorer than they were during April, are the same as at this time last year. T924 T hird F ederal R eserve D istrict companies are buying only for immediate needs. A few miscellaneous articles, such as seamless tubing, ventila tors, and some sheet metal products, are moving well, but requests for many others, including set screws, steel pipe couplings, ball bearings, cast iron soil pipe, and steel springs are only fair and are no more numerous than they were a month ago. Prices of pig iron and of several grades of both finished and semi-finished steel are lower than they were at this time last month. On May 20, the “Iron Age’s” composite prices of pig iron and of finished steel were $21.04 per gross ton and 2.639 cents per pound, a de cline of 92 and .057 cents respectively from the com putation on April 22. At this figure the composite price of pig iron represents the lowest point touched so far this year. In this market on May 20, Philadelphia 2 X pig iron was again quoted at $22.76 per ton, no change having been made in the price listed a month ago. Open hearth steel billets are now $38.00 per ton, as compared with $40.00 four weeks ago; and prices of steel bars fell from 2.64 cents per pound to 2.59 cents during the same period. Production has felt the effects of the slackening in demand, and a curtailment of output has been general throughout the industry. It is said that the average rate of operation closely approximates 65 per cent of capacity. In this district, there has been a noticeable reduction in the rate of output for the past two months, as is evidenced by the fact that during April seven furnaces were blown out and only one blown in, a net loss of six from the number in blast on March 30. Output of pig iron during April totalled 3,233,428 tons, as compared with 3,466,086 in March; and that of steel ingots aggregated 3,386,256 tons, representing a decline of 801,686 tons from the output during the pre ceding month. Unfilled orders of the United States Steel Corporation, which on March 31 amounted to 4,782,807 tons, declined on April 30, to 4,208,447 tons, a re duction of about 12 per cent. At no time since Feb ruary, 1922, has the volume of unfilled orders been smaller. On account of the reduced operating schedules in the industry a substantial number of workmen have been laid off for the time being; consequently, the supply of both skilled and unskilled labor is ample. Practically no wage changes during the month have been reported. On April 15, 28,603 employees were on the pay-rolls of 48 firms, manufacturing miscellaneous iron and steel prod ucts, or a decrease of 2 per cent from the number of workers on March 15. During the same period the ^verage weekly wage fell from $29.63 to $28.38, a de cline of 4.2 per cent. 19 dustry in the Third Federal Reserve District we have received reports from 50 estabIron foundries lishments. The accompanying table shows the totals for the months of March and April in the principal operating items for 37 identical establishments with a monthly capacity of 14,945 tons. Comparisons for a larger num ber of foundries will be shown in the next issue of The Business Review. IRON FOUNDRY OPERATIONS Third Federal Reserve District M arch April Capacity of furnaces................ 14,945 tons 14,945 tons Production of castings............. 6,503 “ 7,203 “ Malleable iron....................... 1,235 “ 824 “ Gray iron............................... 5,268 “ 6,379 “ Jobbing.............................. 3,598 “ 3,734 “ For further manufacture.. 1,670 “ 2,645 “ Shipments of castings.............. 3,969 “ 3,988 “ Value of shipments............... 8674,045 $657,210 Unfilled orders.......................... 2,987 tons 3,075 tons V alue of u nfilled o rd e rs. $581 962 $573,723 Raw stock.................................. 11.816 tons 10,700 tons Pig iron.................................. 8,865 “ 7,806 “ Scrap....................................... 2,951 “ 2,894 “ Change + 10.8 % -33.3 “ + 21.1 “ + 3.8“ +58.4“ + 0.5“ - 2.5“ + 2.9“ - 1.4“ - 9.4“ -1 1 .9 “ - 1.9“ It is interesting to note that in spite of the many in dications of declining activity in other industries, the production of castings by reporting foundries showed a marked increase in April as compared with March. In the latter month the foundries were operating at only 44 per cent of capacity, but in April the rate advanced to 48 per cent. Output of malleable castings fell off con siderably, but production of gray iron castings for sale was 3.8 per cent larger, and for further manufacture was 58.4 per cent larger, than in the previous month. The tonnage of castings shipped during the month and of unfilled orders on the books at the end of the month was also greater than in March, though the dollar value of these items was somewhat less. The average value of gray iron castings shipped during April, by 23 plants manufacturing this product exclusively, was $141 per ton, as compared with $144 per ton in March. The shipments and unfilled orders shown in the table include both malleable and gray iron castings. Stocks of pig iron and scrap held by reporting found ries on the last day of April amounted to 10,700 tons, or sufficient for less than one month’s operations at capacity. It is notable that raw stock on hand was nearly 12 per cent less on that date than it was a month previous. In our first month’s survey of the steel foundry indus try, returns were received from five important manu facturers in the Third Federal Collections are either fair or good and much the same Steel foundries Reserve District. These returns, as tfiey were at this time last month. which cover operations for one In our second month’s survey of the iron foundry in month only, are shown in the accompanying table. In T he B u s i n e s s R eview 20 J une the future a similar tabulation will be published giving weeks. For purposes of comparison, figures are also comparisons from month to month in the activity of given for the corresponding four weeks of the previous identical plants. year. The decline in production during the week end ing April 26 was on account of the. observance of Easter Monday and election day. STEEL FOUNDRY OPERATIONS Third Federal Reserve District April, 1924 Capacity of steel furnaces............................................... Production of steel castings............................................ Shipments......................................................................... Value of shipments......................................$473,855 Unfilled orders.................................................................. Value of unfilled orders. . . . : .................... $680,125 Raw stock: Pig iron.......................................................................... Scrap.............................................................................. Coke............................................................................... PRODUCTION OF ANTHRACITE* 4,150 tons Week ending 1924 2,356 “ 2,189 “ April 19........................... 1,623,000 net tons 4,118 “ April 26........................... 1,205,000 “ “ May 3.............................. 1,616,000 “ “ May 10............................ 1,924,000 “ “ 2.108 “ 6,372 “ * Compiled by the Geological Survey. 596 “ The foundries included in the survey reported furnaces with a steel-making capacity of 4,150 tons per month. Production during the month amounted to 2,356 tons or 57 per cent of the capacity output. Ship ments were 2,189 tons, or 92 per cent of the output. The average value of shipments was $216 per ton, and of unfilled orders, $165 per ton. Stocks of pig iron and scrap on April 30 amounted to 8,480 tons, or suf ficient for slightly over two months’ capacity operations. COAL Some improvement has occurred in the demand for domestic sizes of anthracite since May 1, but the call for steam sizes continues to be A nthracite poor. Several weeks ago, how ever, the movement of pea grades increased, and it is probably now almost as active as any of the domestic sizes. Orders for anthracite booked after the reduction in prices on April 1 were sufficient to carry dealers well into M ay; consequently very few orders for heavy tonnages are being received at present, though a substantial volume of smaller commitments has kept the market in a fairly good condition. Prices are nearly on a par with those quoted at this time last month, especially on steam grades. After the customary annual reductions in price early in April, quotations advance 10 cents per ton each month until in the autumn they again reach circular prices. In this market, on May 19, stove sizes were quoted at from $8.75 to $8.95 per ton, and pea coal at $5.85 per ton, which represents an increase of from 10 to 15 cents over prices quoted a month ago. Until very recently production of anthracite has been substantially less than it was a year ago and even a few months ago. Operators reporting to us are work ing their mines at a fairly high rate, and output in the week ending May 10 was greater than it was during the middle of April, as is shown in the following table giving production in tons for each of the last four 1923 2,065,00 ) net tons 2,116,000 “ “ 2 ,021,000 “ “ 1,903,000 “ “ Some shortage exists in the supply of miners, but most of the collieries in this district are able to secure a sufficient number for their needs. Where a scarcity exists, the reason given is that with the arrival of spring weather miners are seeking outdoor work. The bituminous market continues to be as quiet as it has been for the past three months. Demand is no better than it was at this time last B itum inous month, and with railroads and public utilities practically out of the market owing to their desire to deplete stocks and thereby reduce their fuel investments, there is no imme diate prospect of improvement. As has been true for some time, contract prices are from 50 cents to $1.00 higher than spot prices, and the latter have changed very little during the current month. In Philadel phia the price of Pool 10 bituminous was listed on May 19 at $1.85 per ton, the same as it was a month ago. PRODUCTION OF BITUMINOUS* Week ending 1924 1923 April 19........................... April 26........................... May 3 .............................. Mav 10............................ 6.918,000 net tons 6,726.000 “ “ 6.832,000 “ “ 7,121.000 “ “ 10,221,000 net tons 10,103,000 “ “ 10,061,000 “ “ 10,175,000 “ “ * Compiled by the Geological Survey. As light as the demand is at present, consumption exceeds production, as the latter has been reduced con siderably in the past two months. However, during the week ending May 10, output equalled 7,121,000 tons, an increase of 379,000 tons over the total in the pre vious week, but a heavy decrease of 3.054,000 tons from the total for the week ending May 1, 1923. In the accompanying table figures are given showing the out put for each of the past four weeks and for the cor responding periods of last year. It will be noted that T hird F ederal R eserve D istrict T924 production has increased to some extent during the last two weeks. Many mines in this district continue to operate on part time; others have greatly reduced their working forces, and some have closed down entirely. Many miners have been forced to enter other fields of em ployment. Closely following the decline of activity in the iron and steel industry, the call for coke has noticeably de creased during the past month, Coke and prices of furnace grades in particular have fallen. On May 20 furnace coke was quoted at $4.75 per net ton, which was the same as'a month ago, but foundry grade was listed at $3.25 per net ton, a reduction of 50 cents from the quotation on April 22. Production of beehive coke has shrunk considerably since the first of April, mainly on account of the lack of demand from steel interests, and because several fur naces have been blown out. Output of by-product coke, too, has fallen off recently, and production of both grades is less than it was at this time last year. During April 3,010,000 tons of by-product coke was produced in the United States, as compared with 3,206,000 in the same month in 1923, a decrease of 196,000 tons. In the following table is shown output of beehive coke for each of the past four weeks and for the corresponding weeks of 1923. PRODUCTION OF BEEHIVE COKE* Week ending 1924 April 19........................... April 26........................... May 3 ... May 10... 256,000 net tons 224000 “ 205,000 “ “ 177,000 “ “ 1923 436.000 net tons 424.000 “ “ 407.000 “ “ 401.000 “ “ * Compiled by the Geological Survey. COTTON The cotton market, though less active than it was ln April, has shown considerable strength throughout the month. On April 22, the Haw cotton price of spot cotton in New York was 29.20 cents. But during May has not sold at less than 30 cents and on May 21 reached 32.50. I he position of the staple is still governed by the same factors as those prevailing a month ago. On the one hand is the small amount of cotton left in this country for use until the next crop becomes available, and on the other is the continued poor demand for goods and the rather favorable start of the growing cr°P- Conditions recently, however, have not been so good for the growing crop, as the cool rainy weather 21 over almost the entire belt has retarded it, and onlywarm and clear days will bring it back to its early promise. The accompanying chart indicates that the acreage planted each year is influenced largely by the price paid to the producer in the latter part of the previous year. This seems to be borne out in the present year, according to the early estimates of the acreage planted for the coming crop. As a rule, declining prices in the latter part of the year lead to de crease in the acreage planted in the year follow ing, and advanc ing prices to an increase. The acreage for 1924 is estim ated by the Journal of Commerce Sources—D epartm ent of Agriculture and Cotton Facts Cotton consumption during April by domestic mills was larger than the numerous reports of increased cur tailment in the South led some to expect. The figures, though considerably below those of a year ago, differ but slightly from those of the previous month, as is shown in the following table. DOMESTIC CONSUMPTION OF COTTON* Cotton Linters April, 1923.......................................... 176,514 bales 52,595 bales March, 1924........................................ 483,928 “ 41,030 “ April, 1924.......................................... 480,010 “ 42,289 “ * Computed by the Bureau of the Census. During April, exports of cotton and linters were again larger than in the same month last year, the gain being 61,190 bales. The accompanying table gives a comparison of the position of the last crop'with that of the two previous crops. T he B u s i n e s s R e v i e w 22 SUPPLY AND TAKINGS OF AMERICAN COTTON* In bales Visible supply, American at end of previous season (July 31)............................ Crop in sight, American, on May 16............................... Total................................... Visible supply, American, on May 16.......................... World’s takings of American to May 16.......................... Season of 1923-1924 Season of 1922-1923 Season of 1921-1922 869,968 1,968,159 4,112,651 10,641,141 10,555,964 9,715,728 11,511,109 12,524,123 13,828,379 1,670,724 1,619,454 3,162,411 9,840,385 10,904,669 10,665,968 * Figures compiled by the New York Cotton Exchange. Dealers in the Philadelphia market complain that business in cotton yarns is unusually quiet and that the outlook for the future is not enCotton yarns couraging. Caution is the out standing feature of trade. Makers of finished goods have failed to book sufficient orders to keep their plants running during the seasonally dull months of summer, and since they hesitate to accu mulate stocks, the majority have curtailed operations drastically. Moreover, since last December the trend of quotations on cotton yarns has been downward, and it is noteworthy that the October option for raw cotton is selling at about six cents per pound less than the May contract. In consequence, producers are unwilling to anticipate their advance requirements and have pur chased yarn mainly to cover the limited amount of business on hand. Current sales of yarn are smaller than they were either last month or a year ago. Demand for knitting yarns is particularly poor, but that for weaving yarns is little better. Makers of underwear in this district are running only about half of their equipment, and sales of yarn to them are small. Since many carpet manufacturers have reduced pro duction sharply, dealers find that business in carpet yarns is almost at a standstill. Plush mills continue to purchase fair quantities of yarn for current use, but demand from this trade too has decreased. Because of unsatisfactory sales, prices for cotton yarns are weak, and some reductions have been made during the past month, notwithstanding the fact that spot cotton has advanced slightly. Fairchild’s index numbers show that quotations on yarns and raw cotton are about 18.3 and 12.5 per cent respectively lower than they were last December. Dealers state that, based on present prices for raw cotton, yarns are being sold at less than the cost of production, and that for this reason spinners have reduced operations. Supplies of yarn in the hands of dealers are for the most part rather light. J une Collections on the whole are fair, but they have tended to slow up somewhat during the month and are not as prompt as they were a year ago. Statements by manufacturers of cotton goods are almost unanimous that both new business and prices have decreased during the month. Cotton goods All lines are dull, whether gray goods, dress goods, towels, napped goods, or upholstery goods, and a number of producers say that trade is poorer than it has been for a considerable period. Some mills which took con tracts early in the season are still filling orders, but in most cases these are nearly at an end, and a few report that orders are being cancelled. Although spot cotton in New York is selling at over 32 cents per pound, the price of gray goods is equivalent to only about 25 cents per pound, and as is shown in the ac companying chart the difference between the prices of raw cotton and of finished cotton goods has been grow ing larger during recent months, indicating that the profit of the manufacturer is growing smaller. Since the early part of 1922 the price of cotton has risen faster than the com posite price of cotton goods, and the difference is now as great as it has been at any tim e in recent years. Prior to 1922 the com posite price of cotton goods was figured annually. Sources—Cotton Facts, Journal of Commerce, and Daily News Record Stocks of finished fabrics at the mills are in most cases either heavy or moderate, and more reports state that they increased during the month than that they decreased. Wholesalers’ stocks also are larger than they were at this time in 1923. Few if any mills are operating at over 75 per cent of capacity, and many are running at 50 per cent or less. The survey of employment and wages made by this Bank shows that in 24 plants making cotton goods the number of employees increased 1.8 per cent between the week of March 15 and that of April 15, but that T924 T hird F ederal R eserve D istrict total weekly wages paid were 6.8 per cent less in the latter period. Average weekly earnings were 8.4 per cent lower. Collections in general are either fair or good, and, except in a few reports which note increasing slowness, are unchanged. WOOL Dealers in the Philadelphia market characterize busi ness in raw wool as “draggy.” In the face of a decided lack of buying for the future, Raw wool mills making goods and yarn have curtailed production and for the most part are purchasing little more wool than is neces sary to cover the limited number of orders on hand. Consequently, sales of raw wool are small, and prac tically no grades are moving well. Some dealers report an increase in inquiries for half-blood and fine wools, which they attribute to the fact that such grades are scarce. As a matter of fact, supplies of most wools are limited, as is indicated by the accompanying table. The decrease in dealers’ stocks since the first of the year is noteworthy. Notwithstanding the slow’ move ment of raw wool, prices in the local market have weak ened but slightly. In contrast to quietness in domestic markets, demand for raw wool abroad has been good and the holdings of the Bawra association have been completely liqui dated. At the recent auction sales in London, however, business was rather irregular and some recessions in prices are reported. But the disparity between domestic and foreign markets continues. Evidence of this is to be seen in the re-exportation of considerable quantities of bonded wools from this country. During April Reports of wool were 29,456,578 pounds, as compared with 41,057,830 pounds in March and 77,047,391 pounds a year ago. The placing of contracts for the new clip wools in 23 the western states has been affected by the factors men tioned above. Buyers and growers have different ideas as to prices, the former being influenced by dulness in wool, yarns, and goods, the latter by the higher level of foreign markets. In consequence, fewer contracts have been placed than was the case a year ago. It is noteworthy, however, that the Jericho clip was recently sold for 42 cents a pound, as compared with 51 cents in 1923. Recently sales of wool in the west have broad ened somewhat. Demand for both weaving and knitting yarns is for the most part extremely quiet and the outlook is not encouraging. Manufacturers of Woolen and fabrics booked limited w orsted yarns numberhave orders, only aas they of and have reduced operations, the consumption of yarns is relatively small. Like their own customers, makers of piece goods are making few commitments for the future. In consequence, spinners have received little new busi ness, and advance orders on their books are few. Speci fications against these orders are as a rule small. Since business in piece goods and yarns is ordinarily dull during the summer months, producers are apprehensive of the future. As a result, spinners have further restricted produc tion ; indeed, some have closed their factories. Many mills are running only half their equipment, but a few are operating at capacity. Wool consumption in this district, as shown by returns from 75 establishments, was 17.8 per cent smaller in April than in March. Curtailment has not entirely prevented the accumulation of yarns, stocks of which in some cases are reported to be fairly large. But on the whole stocks in the hands of spinners range from moderate to light, while sup plies of raw materials are of medium size. Labor is in plentiful supply and wages remain unchanged. Since prices for raw wool have decreased only slightly, no decided weakness is noticeable in quota tions on yarn, which in general are about the same as they were last month. On the other hand, some spin- WOOL STOCKS IN AND AFLOAT TO THE UNITED STATES* In pounds Dealers Total March 31, 1924..................................................... December 31, 1923............................................... September 20, 1923. ............................................. June 30, 1923 March 31, 1923. . . . December 31, 1922 September 30, 1922 June 30, 1922 * Departments of Commerce and Agriculture. Boston Philadelphia All others 132,624.600 175,150,787 216,864,338 232,032,947 174.150.542 177,715,894 206,303,157 181,203,498 83,594,495 108,592,531 126,048,294 147,555,952 119,682,792 117,552,127 127,517,286 108,167,907 16,319,055 17,714,510 23,503,276 31,537,599 25,341.283 23,203,634 28,554,899 24,039,626 32,711.050 48,843,746 67,312,768 52,939,396 29,126,467 36,960,133 50,230,972 48,995,965 Manufacturers Total 171,293,489 170,840,582 180,395,847 215,989,803 235,787,655 250,767,717 245,504,564 225.081,781 303,918,089 345,991,369 397,260,185 448,022,750 409,938,197 428,483,611 451,807,721 406,285,279 24 T he B u s i n e s s R eview ners are willing to grant concessions to secure business, and prices are therefore more or less irregular. Col lections range from poor to fair. They show little change since last month but are not as prompt as they were a year ago. Small current sales and a pronounced scarcity of advance business continue to feature the market for woolen and worsted goods. Sales Woolen and are n0£ oniy much smaller than w orsted goods they were a year ag0; but have de creased during the month, and with few exceptions orders on the books of producers are for delivery within the next sixty days. Indeed, some manufacturers re port that they have no future business. The under lying reasons for present unsatisfactory conditions are more or less vague, but it can at least be said that con fidence in the future is noticeably lacking. In the women’s wear trade this feeling has been enhanced by the threatened strike of garment workers in New York City. As a result, buyers are unwilling to cover their advance requirements, and producers find that as a rule orders are for only a few pieces to be delivered promptly. Duplicate business in heavyweight fabrics is negligible, in spite of the fact that original orders are small. Neither men’s nor women's wear has sold well, though demand for the former probably exceeds that for the latter. A few makers of men’s wear report a fairly good request for their products, but such cases are exceptional. Business in dress goods is especially quiet. Some manu facturers state that it is difficult to make sales, regardless of attractive prices; and one producer reports that be cause of the low exchange, novelties are being under sold by French and Belgian fabrics. Not all reports are pessimistic, however. A few are to the eflfect that as compared with last month, conditions have improved somewhat, and that demand has favored novelties in both men’s wear and dress goods. Unsatisfactory sales have caused a number of manu facturers further to restrict production. According to figures compiled by this Bank, the number of wage earners employed by 31 mills in Pennsylvania decreased 8.2 per cent from March 15 to April 15. The supply of labor is plentiful. Notwithstanding poor business some makers of cassimeres have operated at capacity, but many producers are utilizing less than three-fourths of their equipment, and in some instances the percentage is only 25 or 30. Although a few mills have accumu lated considerable finished merchandise, stocks in gen eral are not large. Supplies of raw materials are fairly light. No marked weakness is apparent in quotations, and the majority of producers state that prices are about the same as they were last month. Some manufacturers ha\e made reductions, however, and it is reported that concessions are not difficult to obtain on large orders, especially from mills that are in urgent need of business. Reports indicate that buyers are not paying their J une bills promptly. Collections range from poor to fair and are not as satisfactory as they were a year ago. SILK During the past month the trend of prices for raw silk in the domestic market has been unsettled. Kansai double-extra cracks advanced Raw silk from $6.05 per pound on April 24 to $6.25 on April 30, after which they again declined to $6.00 on May 20. Though quotations are lower at present than they have been at any time since 1921, demand for raw silk has shown little improvement. Manufacturers are for the most part unwilling to cover their advance requirements in the face of unsettled prices for raw silk, of fluctuations in yen exchange, and of unsatisfactory business in fin ished goods both for immediate and future delivery. Moreover, since operations in most silk mills are greatly curtailed, current consumption of raw silk is not large. This is indicated by the accompanying chart, which shows that in the past two months deliveries of raw silk to mills were considerably smaller than during the similar period in 1921 and in 1923. Stocks of raw silk in American warehouses have shown a seasonal decrease since the first of the year. During M arch, 1924, im ports were sm aller than at any tim e in the past three years. Source—Silk Association of America But domestic supplies of raw silk are fairly light. Owing to small imports, stocks of raw silk in ware houses at New York have decreased nearly 20,000 bales since January 1, and at the present rate of deliveries supplies will last only a month. It must be remembered, however, that this decline is partly seasonal and has occurred in each of the past three years. On the other hand, the visible supplies of raw silk at Yokohama are relatively large. On May 7 these were reported by 1924 T hird F ederal R eserve D istrict H. L. Gwalter to amount to 30,000 bales, in contrast with only 18,000 bales a year ago. Pronounced dulness in trade is reported by both commission and independent throwsters. Business is much poorer than it was a year Thrown silk ago, and partly because of sea sonal reasons poorer than it was last month. Continued weakness in raw silk and slack demand for finished goods are mainly responsible for unsatisfactory conditions in the market for thrown silk. Makers of broad silks are running out of orders, and new business is limited. Although silk hosiery is in fair request, manufacturers are not only using more artificial silk, but many have reduced the weight of their products and therefore need less thrown silk. Moreover, the raw siik market is weak and unsettled. In consequence, confidence in the future is lacking, and producers are for the most part purchasing little thrown silk in excess of current requirements. One throwster reports that contracts are expiring and that owing to present un settled conditions they are in some cases not being renewed. Most of the orders on the books of throw sters are for delivery during the next thirty days, and a few report a total lack of advance business. Some throwsters have been able to utilize most of their equipment without accumulating stocks, but others have been forced to reduce operations drastically. At the present rate of production unfilled orders will msure operations for less than a month. Because of these conditions, throwsters have kept their stocks of both finished goods and raw materials light. Labor ls ln adequate supply, and wages remain unchanged. Because of keen competition for business, of resis tance on the part of buyers, and of lower prices for raw silk, quotations on thrown silk are weak, and some reductions have been made during the month. From the manufacturer’s standpoint present prices are very unsatisfactory. One throwster reports that prices are rtunous, while another states that he is continually loslng orders because of the quotations listed by com petitors. Collections are in many instances unsatisfactory. They have become slower since last month and are not as prompt as they were a year ago. Business in silk goods is admittedly dull. Not only are sales much smaller than they were a year ago, but the majority of producers reportS Uk'goods ing to this Bank find that demand is less active than it was last uionth. Since producers have practically completed leir spring season, however, a decrease in sales during My was to have been expected. At present, retailers are Purchasing more fabrics than are jobbers or cutters-up, ** demand from them, too, has declined. Piece-dyed ?°°ds, including the various crepes, continue to be av°red, and satin-faced fabrics are becoming more Popular. As has been the case for some time, caution is the outstanding feature of the market. Buyers for the most part are disinclined to anticipate their advance requirements, but this is hardly to be wondered at in view of uncertainty as to future business and the steady decline in prices for silk goods. Orders on the books of manufacturers are with few exceptions for delivery within the next thirty or sixty days. Indeed, a nurnber of mills have little or no business on hand and are mak ing goods for stock and selling them as called for. Im provement is not totally lacking, however. A few pro ducers have enjoyed a fair request for their products, and indicate that sales are larger than they were last month. Printed silk scarfs are selling actively. Operations in this district vary considerably; some mills are running at close to capacity, while others are utilizing as little as 35 per cent of their equipment. The majority are operating at less than 75 per cent. Al though manufacturers as a rule do not care to accumu late finished fabrics, stocks of which are moderate, a few find it advisable to do so in order to fill spot orders. As regards raw material, makers of silk goods have adopted the same conservative attitude as their customers and are buying sparingly for current needs. In con sequence, their stocks of raw material are light. The supply of labor is for the most part adequate, but two or three firms find it difficult to secure experienced help. No revisions in wages are reported. The almost steady decrease in quotations on silk goods which has occurred during the past few months continued during May, reductions in some cases amount ing to 7]/2 and 10 per cent. Lower prices were prin cipally due to three factors—weakness in raw silk, strong resistance on the part of buyers, and the desire of many manufacturers to liquidate stocks. Buyers are critical not only of prices but of the quality of the goods offered. Some producers find that customers are not paying their bills promptly and that collections have slowed up during the month. But though collections are certainly not as prompt as they were a year ago, they are on the whole satisfactory. HOSIERY The price trend of hosiery continues downward, and most manufacturers report that business is not as good as it was a month ago. Though women’s full-fash ioned silk hosiery is in fair request, activity is de creasing, but a good demand exists for silk and fiber mixtures for women and for men. For men, fancy plaids and stripes have sold better than clocked hosiery. During March operations in 340 establishments, shown in the following table, indicate that production wa« almost the same as in the same mills in February. The only increases of any moment were in artificial silk hosiery for children and infants, in women’s full-fash ioned silk hosiery, and in women’s seamless hosiery of J une T he B usiness R eview 26 silk, artificial silk, and artificial silk in combination. In most other kinds production decreased. Finished stocks on hand on March 31 were slightly larger than those of a month earlier, but unfilled orders decreased more than one million dozen pairs. 1923 was a notable one; in that year 440,885 dozen pairs were shipped abroad, as against 342,650 in 1922. Cuba was the largest buyer of cotton hosiery, followed by Argentina and England; but in the buying of artificial silk hosiery Argentina stood first, and England and Cuba second and third. In silk hosiery England was first and Argentina second. The total deliveries to Ar gentina were the largest, but in the late summer of 1923 a much higher duty was placed on imports of hosiery into Argentina, and thereafter shipments to that market from this country fell off sharply. The prices of raw materials, except of artificial silk, have again declined, though the decreases on mercerized and cotton yarns have been comparatively small. Silk hosiery tram, however, has weakened, prices being about five per cent lower than they were a month ago. Be cause the demand is for a stocking of light weight, the amount of silk used per pair is considerably less than it was a year ago, and this may be partly responsible for the weakness in the price of hosiery tram. In the mills in this district stocks of finished goods vary con siderably ; more reports classify them as moderate than as either heavy or light, and approximately half of the reports state that they are about stationary. Collections are not as good as they were a month ago and in nearly all cases are either fair or poor. Operations of the same 113 mills in the Third Fed eral Reserve District during March and April are item ized in the accompanying table. The only change of note is a large increase in “orders booked” and “un filled orders” for women’s full-fashioned hosiery. HOSIERY INDUSTRY* United States In dozen pairs February March Production: Full-fashioned, men.................................. Seamless, men............................................ Full-fashioned, women.............................. Seamless, women........................................ Boys’ and misses’, all stvles .................. Children’s and infants’, all styles........... Athletic and sport, all styles.................... Total production............................................ Total shipments during month................... Total finished products on hand, end of month........................................................... Total orders booked during month............ Total cancellations received during month. Total unfilled orders on hand, end of-month. 81,894 1,938.691 553,514 1,103,850 625,719 463,601 19,839 4,787,160 4,438,488 8.920,657 3,688,173 234,554 8,477,685 83,344 1,900,441 590,977 1,112,062 608,233 468,127 30,241 4.793,425 4*636,275 8,933,474 3,858,344 248,229 7,442,650 * Compiled by the Bureau of the Census. Exports of hosiery in 1923 were considerably larger than in 1922, in spite of a decrease in shipments of artificial silk hosiery. Foreign markets took 5,159,750 dozen pairs of cotton hosiery, as compared with 4,792-, 604 in 1922. Although silk hosiery is of comparatively small importance as an article of export, the increase in HOSIERY INDUSTRY* Third Federal Reserve District Men’s In dozen pairs Full-fashioned Women’s Full-fashioned Seamless March Production........................................................... Shipments during month.................................. Finished product on hand at end of month.. . Orders booked during month............................ Cancellations received during m onth............. Unfilled orders on hand at end of month. . . . April March April 52,557 49.027 48,827 28,081 1,392 52,279 44,658 34,785 49.709 28,797 1,568 44,453 322,698 301,606 523,519 252,382 18,144 489,083 317,098 298,237 526,489 213,551 17,301 392,970 Boys’ and Misses’ Children’s and Infants’ March Production........................................................... Shipments during month................................... Finished product on hand at end of month.. . Orders booked during month............................ Cancellations received during month.............. Unfilled orders on hand at end of month . . . . April 25,965 27,739 76,767 25,029 1,331 20,880 21,616 112,865 111,384 32,180 147,999 151,251 63.152 330.590 302,117 36,241 81.758 84,354 543 4.640 6,545 26,021 305,401 229,824 * Preliminary report compiled by the Bureau of the Census. March April March April 304,619 305,785 334,978 325,311 440,996 434,147 185,269 660,397 5,508 6,123 664,835 1,041,311 Seamless March April 223,208 244,452 247,512 239,160 9,995 310,560 245,548 238,962 251,459 190,870 7,973 257,795 Athletic and Sport Total March April March April 6,127 7,878 17,306 3,547 360 6,114 4,034 5,411 15,109 5,137 1,390 5,145 1,048,039 1,113,679 1,685,517 815,226 41,985 1,.849,112 1,050,123 1,086.137 1.642,182 1.219,347 40,828 1,997,499 T924 T hird F ederal R eserve D istrict UNDERWEAR The market for both light- and heavy-weight under wear is extremely quiet; in fact, producers indicate that business is almost at a standstill. Sales are smaller than they were either last month or a year ago, and as in other branches of the textile industry, confidence in the future is noticeably lacking. Manufacturers are nearing the end of their spring season, and since jobbers have not done a good business with retailers, they have found it unnecessary to place many duplicate orders with producers. Jobbers are also unwilling to anticipate their requirements of heavy-weight garments. In conse quence, current sales are small and are mainly for filling in purposes. Demand for women’s underwear is espe cially quiet, but that for men’s and children’s garments is not much better. Silk underwear for women is like wise in dull request. Some manufacturers, however, have enjoyed a fair business in artificial silk products. Producers are rapidly filling what light-weight busi ness they have on hand, and a few have entirely caught op with orders. Although a number of companies have some fall business on their books, jobbers have not as yet specified the kind of goods desired, and in view of present conditions, manufacturers hesitate to accumu late stocks. As a result they have reduced output, and half of the firms reporting to this Bank indicate that as compared with last month, operations have decreased. The majority of producers are utilizing from 40 to 60 per cent of their equipment, and some are operating at only from 10 to 30 per cent of capacity. The average rate of production for this district is about 52 per cent, in contrast with 60 per cent during the preceding month and 70 per cent during March. Curtailment has for the most part prevented the accumulation of finished goods, stocks of which are fairly light. In a few cases stocks are tending to increase, but as a rule they have remained about the same or have decreased. Supplies of raw materials are relatively small, since producers have pur chased little yarn in excess of current needs. Labor is m adequate supply, and though one or two mills have advanced wages, on the whole they remain unchanged. It is noteworthy, however, that many makers of under wear in New York State have reduced wages. Because of unsatisfactory business and some resis tance to prices on the part of buyers, prices for under wear are weak. But though a few manufacturers have lowered quotations during the past month, the majority have made no revisions. Reports indicate, however, that concessions on spring underwear are obtainable. 27 the next few days the other manufacturers showed their lines and in nearly all cases at lower prices. Buyers were present in fair numbers, but the purchases made were smaller than at any opening in recent years. Buy ing was so unsatisfactory that within a few days, an auction sale, to begin on May 12, was announced by the Smith company. This had the effect of further checking business, and little was done until the sale. Prices paid on the early days of the auction were ex tremely low, and although later in the week some lots sold at higher quotations, the prices paid throughout were weak. The following table shows the decline during recent months in the various qualities made by this factor. It should be understood that at the recent auction many lots sold at considerably above the low figures mentioned in the table. In the prices named on May 17 by the Smith firm, Wilton velvet was the only quality not reduced. RUG PRICES 9 x 1 2 rug Alpine Axminsters.............. Ardsley “ .............. Carlton “ .............. Yonkers “ .............. Kirman “ .............. Hudson tapestry.................. Manor “ ................ Nepperhan “ ................ Katonah velvet.................. Palisade “ .................. Colonial “ .................. Wilton “ .................. October, March, May 1, May 1923 1924 1924 12-17* $31.20 33.60 42.00 48.00 49.80 18.30 20.70 24.60 22.50 33.90 43.80 54.00 $26.40 28.80 37.20 42.60 44.40 17.40 20.10 24.00 22.20 31.20 40.80 50.40 $25.20 26.40 36.00 42.00 44.40 16.80 19.80 24.00 21.60 30.00 40.80 50.40 $15.65 18.25 22.25 27.75 32.25 10.75 13.40 15.75 14.60 21.50 27.65 37.50 May 17 $23.40 25.20 31.20 38.40 40.80 15.60 18.60 22.20 20.40 28.20 37.20 50.40 * Low prices at auction. Some large manufacturers of Wiltons reduced wor sted goods about 7 per cent, but wool goods were held at almost the same figures as formerly. Stock rugs were offered by some at a reduction of 5 per cent. The result of the auction sales has been to cause consider able demoralization in the trade, many manufacturers stating that present prices are so unprofitable that they are unwilling to compete for business. As a conse quence, there is a general and heavy curtailment in production in this district, and in a number of cases mills have closed down. It is also reported that some large mills in New England and New York State have closed. Prices of linoleums are lower, but felt-base goods are selling at unchanged quotations. 1 hough Collections in general are satisfactory but not as some manufacturers of linoleums report that sales are Prompt as they were a year ago. larger than they were a year ago, others state that the reverse is true, and all are able to make prompt delivery from stock. Production of carpets and rugs in the FLOOR COVERINGS United States, as is shown in the following chart, in On May 1, the Alexander Smith & Sons Carpet creased from almost 53 million square yards in 1921 °mpany opened their fall lines of carpets and rugs to more than 81 million square yards in 1923, a gain at prices below those named in March, and during of 50 per cent. T he B usiness R eview 28 The total production of rugs and carpets in the United States was more than 50 per cen t greater in 1923 than in 1921, but the per centage of each kind m anufactured rem ained practically the sam e. It had been thou ght that the outp ut of rugs woven whole had increased at the expense of the other two varieties. Source—D epartm ent of Commerce J une increasing number. The resistance is especially strong in this market to prices on bedroom and dining room furniture of the cheaper grades. However, nearly all of the firms reporting to us state that prices are very near those of a month ago. Stocks of finished goods are from moderate to heavy and are increasing, but supplies of raw materials are mostly moderate and stationary. The average rate of operations is approximately 78 per cent of capacity, which is somewhat less than it was at this time in April. In no case will the orders on the books guarantee the present rate of production for more than 45 days, and the average period is not more than 17 days. Several manufacturers are able to fill orders as soon as received. Unfilled orders, on the whole, are fewer than they were a month ago. There is some scarcity of skilled labor, but in most instances the supply is sufficient or plentiful. No shortage whatever is apparent in the supply of unskilled workers. No wage changes have been reported during the month. On April 15, there were 3,107 employees on the payrolls of 22 furniture factories in this district, earning an average weekly wage of $25.33, as compared with 3,335 workers employed on March 15, with average weekly earnings of $24.84. Collections range from poor to good but in general are not as prompt as they were last month or in May, 1923. The survey of employment and wages made by this Bank shows that in 15 plants making carpets and rugs the number of employees during the week of April 15 was 1.8 per cent less than in the week of March 15. Total weekly wages fell 8.1 per cent, and average weekly earnings 6.9 per cent between the same dates. Wages LEATHER were reduced 10 per cent in all the Wilton mills in Philadelphia on May 1, and in New England some The Chicago market in hides and skins has been ac manufacturers also announced a cut in wages, but other tive, and as packers have sold freely during the past wise wage scales are unchanged. month, stocks of April hides are Collections in all branches of the floor-covering Hides and skins now closely sold up. A fair busi trade are said to be either fair or good, but have become ness, too, has been done in May slower during the month. saltings. Prices have been higher, and as the quality has been steadily improving with the season, quotations for April and May hides and skins have for the most FURNITURE part been higher than those on January-March saltings. Usually at this season there is a decided increase in Both steer and cow hides have sold well, and calf skins activity in the furniture market, which naturally is felt have practically regained the ground lost in the previous by both dealers and manufacturers. During this month, month, having risen from 18*4 cents to 21 cents per however, the reverse has been true, and manufacturers pound. Buying for export has entered largely into the report that the call for furniture is materially less than purchases of both hides and calf skins. Country hides it was at this time either last month or last year. This and skins are also higher, in sympathy with the packers’ fact is said to be not so much a matter of uncertain market. Quotations on sheep skins, after advancing for many prices as of a general disinclination to purchase anything except for immediate needs. This lack of buying is months, have begun to weaken, and tanners report hav especially felt in the branch of the industry making din ing received offerings at prices at least 5 per cent below ing and bedroom furniture. It is true that some of the those prevailing a month ago. Goat skins continue to cheaper articles are in greater request than are the decline, and many tanners are out of the market. A higher priced, but sales have nevertheless been dis few, however, are buying spready, low-priced skins suit able for trimmings and linings. Stocks of these have appointing. Though some manufacturers have succeeded in main decreased and are small. taining firm prices, others have found it necessary to During March, stocks of raw hides and skins moved reduce quotations, and concessions are being granted in somewhat irregularly. Those of cattle hides fell 3.0 T hird F ederal R eserve D istrict 1924 per cent and of goat and kid 14.6 per cent. But stocks of calf and kip increased 3.1 per cent, and of sheep and lamb 5.6 per cent. The leather markets continue to be extremely dull, and though both shoe manufacturers and finders are purchasing from time to time, the Leather total of sales is small, and it is doubtful if it equals the present curtailed output. In some cases, however, an increase in the number of inquiries is reported of late, and it is hoped that from these a larger actual business will develop. Sales of leather belting have decreased, and likewise the demand for belting butts. Calf grain leathers in men’s weights are having a fair sale, but the recent advance in the price of raw calf skins has made the position of the tanner more difficult. Kid leather in the low grades is still called for in good volume for trim mings and linings, and some tanners are sold up on small skins of the top grade; but stocks continue heavy and are not expected to decrease this month. For this reason there is talk of further curtailment in production. Sheep leather tanners continue to be the busiest in the trade, and a number of plants are in full operation. Trimming stock, hatters’ leather, and chamois are in good demand, but grain splits are quiet, and buyers are objecting to the advance in the price of these which was announced during March. Prices of most leathers still favor the buyer, though the strength in hides has tended to stiffen the market for some heavy leather tannages. LEATHER INDUSTRY* United States Production during Stocks at end of March compared with March compared with February, 1924 Backg^ bends and sides.. . Belting butts.................... Uffal, sole and belting__ Uattle side, upper............ Ualf. Ooat and kid.................... Labretta . March, 1923 0 - 1 1 .5 % - 9 .5 “ - 25.3 “ - 5 .4 “ + 4.1 « + 3 4 .7 “ - 2 1 .2 % —24 .7 “ - 3 0 .0 “ - 3 5 .4 “ - 1 1 .9 “ - 2 4 .6 “ + 1 6 .5 “ February, 1924 March, 1923 - 2.7% - -8% - 1.9 + 1 1 .4 “ 5 .6 “ - 7 .2 “ - 3 .6 “ - . 2 “ + 7 .4 “ - 7 .0 “ + 2 .6 “ + 13.1 “ - 5 .4 “ - 2 2 .4 “ * Compiled from figures furnished by the Bureau of the Census. As shown in the table, the only increases in producj10n during March were in goat and kid, and cabretta leather. The heavy decrease in the output of cattle side uPper leather was largely because of a change by some tanners in classification. A considerable amount for merly listed under this heading now appears as kip 29 leather, which thus shows a large increase. Stocks of all leathers on March 31 were lower, except those of calf, and goat and kid. In the latter there was a gain, but a gain that was less than the increase in output, showing that during March more was sold than was made. As compared with March, 1923, the production of all leathers except of cabretta has decreased sharply, and stocks also are lower, except of belting butts and goat and kid leather. GOAT AMD KID LEATHER MILLIONS!---------------------------- r -----------------------— ------------------------- OF 1921 1922 1923 1924 During the past two years exports of goat and kid leather have aver aged about 18 per cent of the total production. This per centage is about half of w hat it was before the war. Source—D epartm ent of Commerce The accompanying chart indicates that since the be ginning of 1921 exports of kid leather have equalled less than 20 per cent of the production, and that during the past year both output and exports have tended almost steadily downwards. As about 85 per cent of the coun try’s production of this leather is made in this district, this condition is of great importance locally. Our survey of employment and wages discloses the fact that there has been a further decline in both of these in the leather tanning industry. In 36 tanneries reporting, the number of employees was 3.7 per cent smaller during the week of April 15 than in that of March 15. Also, total weekly wages fell 5.0 per cent, and the average weekly individual earnings dropped 1.4 per cent during the same period. Ever since October, 1923, employment and wages in this industry have been decreasing steadily. On October 15, 40 establish ments employed 9,214 men at an average weekly wage of $27.16, whereas on April 15 in 36 tanneries 8,122 were employed at an average weekly wage of $25.97, a decrease of $1.19 or 4.3 per cent. Collections are in general good and are better than they were a month ago. T he B usiness R eview 30 The majority of the shoe manufacturers reporting to this Bank state that business continues to be poor, is in fact worse than it was a month Shoes ago, and that unfilled orders have decreased. A few factories, how ever, continue to work at capacity and report that busi ness is fair, although some of these also state that unfilled orders are lower. A number of factories have only from ten days’ to two weeks’ business on the books and have reduced operations. Our survey of employ ment and wages shows that in 30 factories reporting on these subjects, though the number of employees during the week of April 15 was 1.4 per cent larger than during the week of March 15, the total weekly wages paid declined 1.5 per cent and average weekly earnings 2.9 per cent. In factories making women’s shoes of the finer grades nearly all orders are for shipment within a few weeks, but certain makers of children’s and misses’ shoes have booked some business for delivery extending into July; these orders, however, are not nearly as large as they were a year ago. Prices of shoes continue to be fairly steady. Although some sales made to reduce stocks have been at considerable reductions, such sales are usually followed by advertised sales by department stores, which in most cases are the purchasers. Some manufacturers are disappointed at the lack of new business, for they felt that because of the increase of sales and the reduction of stocks both by wholesalers and retailers, new orders would come in in fair volume. For women’s shoes, black is the predominating color and patent leather and satin the most popular materials. White shoes, however, are also in fair request. But colored suede in the gray and brown shades has become dull. In March, production of shoes in the United States, although larger than in either January or Feb ruary, was far below that for March, 1923, as is indi cated in the following table. 1923 1924 30,743,740 pairs 30,300,606 “ 35.836,219 “ 96,880,565 pairs 26,497,156 pairs 26,831.908 “ 2S,802,688 “ 82,131,752 pairs * Figures compiled by the Bureau of the Census. In the Third Federal Reserve District 104 identical fac tories made 3.8 per cent fewer shoes in April than in March, as is shown in the following table. Stocks of shoes in the hands of manufacturers are described for the most part as moderate and stationary, though a fair proportion of the reports say they are BOOT AND SHOE PRODUCTION* Third Federal Reserve District Number of pairs April, 1924 March, 1924 Boots and shoes, total.............................. 1,715,949 1,783,516 High and low cut (leather) total............ 1,569,040 1,655,041 Men’s ....................................................... 135,779 139,238 Bovs’ and vouths’.................................. 149,957 145,487 Women’s.................................................. 257,424 327,258 Misses’ and children’s ........................... 569,857 586,541 Infants’.................................................... 456,023 456,517 All other leather or part leather footwearf 146,909 128,475 * Preliminary report compiled by the Bureau of the Census, t Includes athletic and sporting shoes (leather), shoes with canvas, satin, and other fabric uppers, slippers for housewear, and all other leather or part leather footwear. heavier than they were a month ago. Labor, both skilled and unskilled, is in ample supply, and in this locality wages are unchanged. In New England, however, a number of reductions have been made. Collections are fair and in general unchanged, but some firms state that they have improved during the month. At wholesale, sales during April were larger than either in March or in April, 1923, and stocks were re duced considerably, as is shown by the table on page 12. But business has decreased in May, and preliminary re ports are that sales will be smaller than in May, 1923. RETAIL SHOE TRADE Third Federal Reserve District 1, NET SALES (in terms of dollars): April, 1924, as compared with March, 1924...........+46.1 % April, 1924, as compared with April, 1923 ............+28.8 “ 2. STOCKS (selling price): April, 1924, as compared with March, 1924........... —4.4% April, 1924, as compared with April, 1923............. —0.4 “ BOOT AND SHOE PRODUCTION* United States January. ............................ February.............................. M arch................................. Total................................ J une 3. RATE OF TURNOVER (tim es per year based on cumulative period): January 1 to April 30, 1924.................................... 3.5 January 1 to April 30, 1923.................................... 3.3 Number of stores reporting above items: 1................. ..........22 2 ........................... 20 3 ............................. 19 Retail business has been retarded by the cool and rainy weather, and reports indicate that sales are smaller than they were a year ago. Sales during April showed an increase over those both in March and in April, 1923. and stocks are now lower than they were a year ago. For several months previous to this reduction they had been larger than in the corresponding period last year. T hird F ederal R eserve D istrict !924 3i Some stores report that men’s shoes are not selling as well as women’s and children’s. For women, patent leather and satin are the most called for materials in the various pump and sandal effects. Patent leather is also in good request for children. RUBBER Factors affecting both supply and demand have con tributed to weakness in the domestic market for crude rubber. Despite the large output Crude rubber of tires during the past few months, manufacturers have been but poor customers, since they have restricted their purchases of rubber mainly to current needs. This is not remarkable, however, in view of the almost con tinuous decline in the price of crude rubber since last fall. On the other hand, though imports have not equalled the record of a year ago, they are relatively large. During the first four months of 1924 they aggfegated 251,146,482 pounds, as compared with 279,003,630 pounds, in 1923, 228,377,767 pounds in 1922, and 103,441,321 pounds in 1921. In consequence, prices for crude rubber have weak ened, and on May 20 first latex crepe was quoted at I 8 1/4 cents per pound, in contrast with 26% cents on January 5, 1924, and 37% cents on January 23, 1923. Prices and imports of rubber for the past decade are shown by the accompanying chart. It is significant that as imports have increased quotations have declined. The lowest point reached was in the fall of 1922, when rubber sold for less than 15 cents a pound. From August, 1922, to February, 1923, prices more than doubled, owing to the adoption of the Stevenson re striction plan and to improved demand from con sumers. Since February, 1923, quotations have again dropped, and though the present price of 18^4 cents is Sources—War Industries Board, India Rubber World, Dun's Review and D epartm ent of Commerce somewhat higher than that in 1921 and 1922, it is low in comparison with the average price of about 67 cents for Para rubber from 1913 to 1918. Reports on the rubber tire business from manu facturers and dealers in this district are conflicting. Several firms note a seasonal inR ubber tires crease in sales and are enjoying a brisk demand for their prod ucts. Sales for the first quarter of 1924 have in some cases exceeded those of a year ago. On the other hand, a number of manufacturers state that sales have not improved and that business is unsatisfactory for this time of year. Some makers of inner tubes report that demand is poor and that concessions have failed PNEUMATIC CASINGS* Month January................................ February ............................. March. April. . . M ay. . June. July.............. A ugust............. Septem ber. . . O ctober.. N ovem ber. . D ecem ber.. T otal___ 1924 1923 1922 1924 1923 1922 4,808,0S 4 5,265,133 5,814,000 4,695,916 5.224.387 5,670,601 6,088,272 6,906,594 7,040,600 6,471,124 6.058.387 5,397,557 4,876,352 4,689,329 4 ,3 29,300 4,174,216 4,691,329 5,183,286 5,464,336 5,523,095 5,042,147 4,834,106 4,629,392 4,612,037 4,682,958 4.964.976 4,599,208 3,220,292 3,278,674 3,354,000 3,127,270 3,217,987 3,855,726 3,539,326 3,659,986 2,956,943 1,992,989 2,355,915 2,029,581 2,361,340 2,399,725 2,437,148 2.055.134 2,084,308 2,645,790 2,401,187 2,721,503 2,838,890 2,476,636 2,905,209 2,504,744 2,674,662 2.733.134 2,656,942 15,887,217 87,448,419 58,401,086 M onthly average............. 5,295,739 t Esti k^t^j8800*®4*011 America. Shipments Production Inventory 5,620,702 4,866,757 9,852,966 33,933,936 30,698,139 3,284,322 2,827,828 2,558,178 1924 1923 2,785,335 2,994,297 2,771,000 2,588,639 2 ,8 0 5 ,133f 3,322,637 2,976,160 2,757,764 2,502,185 2,539,425 2,807,432 2,623,775 2.819,583 2*456,296 2,603,617 1922 1,596,806 1,562,365 2,073,963 2,086,651 2,639.273 3,133^260 2,695,095 3,029,823 2.502,106 2*588,770 2,379.708 2,934,079 8,361,468 32,991,810 29,221,899 2,787,156 2,749,318 2,435,158 32 T he B usiness R eview to stimulate it. Manufacturers are agreed that buyers are unwilling to make commitments for the future and that most of the sales are for spot delivery. Although a few companies have recently reduced prices for rubber tires, the majority have made no revisions, notwithstanding considerable resistance on the part of buyers and cheaper costs of raw materials. Operations in this district vary. Some plants are run ning at capacity, while others are utilizing only half or three-quarters of the available equipment. Several producers report some difficulty, in making collections. The production of tires in the country as a whole has been relatively large, as is indicated by table on page 31. Production increased about a third from De cember to January, and during the first quarter of 1924 the total output almost equalled the record of a year ago. Shipments, however, have failed to show a cor responding gain, with the result that inventories of pneumatic casings increased 34.3 per cent during the three months ending March 31, 1924. Stocks on that date were heavier than they were a year ago and were only about 1,200,000 casings less than on June 30, 1923, when stocks were considered abnormally large. It is noteworthy that many auto mobile manufacturers have recently curtailed production. For the most part business in rubber goods is not satisfactory, and in many instances sales compare unfavorably with those of a year M echanical ago. The majority of producers rubber goods find that since April 15 demand has diminished and that at present it is only fair or poor. Manufacturers attribute this mainly to lessened activity in many industries that are large consumers of rubber products. Neither the iron and steel trade nor the railroads have purchased mechanical rubber goods actively; indeed, nearly all buyers show a disinclina tion to make fonvard commitments, and the hulk of the sales are for spot delivery. This is not remarkable, however, in view of the unsettled condition of busi ness in general and the decline in prices for rawr mate rials used in the rubber trade. On the other hand, a few firms have enjoyed a fairly good demand for their products and report an increase in sales. Some producers have received satisfactory orders from the construction trade, which for the most part is busy. Manufacturers in this district state that at present rubber hose and belting are selling better than other products. But although garden hose is seasonally active, dry weather is needed to stimulate sales from the hands of distributors. This is likewise true of other seasonable goods, such as tennis and sport shoes. Since many dealers are unable to liquidate their stocks of rubber boots and shoes on account of the open winter, orders for these products for next season have been small, and much of the business is still to be placed. Demand for rubber soles and heels to be delivered promptly is but fair, and some producers have reduced J une prices. Trade in hard rubber goods is dull; a number of producers note a sharp decrease in sales to the radio and automotive industries, but others find that hard rubber for radio purposes is still moving well. Because of smaller sales, many makers of rubber goods have reduced production. Reports from twenty manufacturers in this district show that the number of wage earners employed was 4.2 per cent smaller on April 15 than on March 15. Although some firms have utilized most of their equipment during the past month, the majority have operated at from 50 to 75 per cent of capacity. Stocks of finished goods are on the average_about the same as those of a year ago, but in some cases they are tending to increase. Since buyers are covering only current requirements, however, manu facturers feel that stocks in the hands of their cus tomers are light. The supply of labor is adequate. Prices for rubber goods are tending downward on account of competition, resistance on the part of buyers, and lower costs of crude rubber and of cotton fabrics. Many producers report that prices are unchanged, but others have made slight reductions during the past month. Returns indicate that collections are not alto gether satisfactory, since buyers are not paying their bills as promptly as in the early part of the year. In general, however, collections are fair. PAPER A falling off in orders since April is reported by the majority of paper manufacturers, and the present demand is only fair. No mills in this district find busi ness as good as it was in May, 1923. Book and fine papers are still selling in large volume, and operations at mills making these are unchanged at 85 per cent. Wrapping papers, particularly manilas and krafts, are not moving as well as they did in April, and production has declined. Toilet tissues and crepe towels, which since the first of the year have been in good demand, are selling less actively than they were a month ago, and output has slightly decreased. Building and roofing papers are in only fair request, and few mills are operating at more than 75 per cent of capacity. The call for glassine and wall papers, however, is well main tained. Mills making boxboards state that business is fair or poor and smaller than it was last month. En velope makers report a decrease in orders and a reduc tion of factory operations to' 70 per cent. Buying continues to be in small lots for spot require ments only, and most of the mills have only two weeks’ business on hand. Jobbers report that their sales are smaller than those of a month ago. As is shown in the table on page 12, wholesale paper sales in April were not as large as in April, 1923. But despite the slackening in demand, paper prices have held firm and are practically the same as they were a month ago. Concessions in boxboards, however, are obtainable. Prices of mechanical pulp are firm, and T hird F ederal R eserve D istrict l924 some grades of chemical pulps have advanced from .2 to .3 cents per pound. As will be noted in the accompanying chart, writing and book papers have shown no change in price for many months; but newsroll dropped about 6 per cent in February. Writing paper prices are the same as they were in 1915, but book and newsroll papers are nearly twice as high as at that time. PAPER PRICES UULLARS IO O LBS. n r — — \ / \ l i 20 r \ i 15 V \i J j *A .7 1 /> lo j Wri+in^ V Mewsr o l l o 1920 1921 1922 1923 1924 Writing and book papers have n ot changed in price for m any m onths, but new sprint dropped in M arch. Book papers and newsroll are nearly twice as high as they were in 1915, but writing paper is back to the 1915 level. Source — Dun's Review Finished stocks at the mills vary from light to mod erate and are stationary; the same is true of supplies of raw materials. Sufficient supplies of both skilled and unskilled labor are available, and wages are unchanged. Collections range from fair to good. PAPER BOXES A further decline in new orders is noted by many boxmakers, and production is not as large as it was in April. The present demand is only fair and at some factories poor. The candy trade, the knitted goods unes, and the shirt industry are buying but small quan tities. The foodstuffs, hardware, electrical supply, soap, and perfume industries continue to purchase in good arn°unt, but only for immediate needs. Manufacturers uf folding boxes are fairly busy, but no makers of set-up T Xes are operating at capacity. The average of opera tions at the news and chip board box plants is about Per cent. Producers of corrugated boxes and fiber shipping containers report that the demand for their Products is much the same as it was last month. Corrilgated box factories are operating at about 60 per cent and fiber box plants at 80 per cent. The majority of the orders booked by manufacturers are for delivery within 30 days. In general, the demand for all kinds of boxes is poorer than it was in May, 1923. Box prices display considerable weakness, and com petition among manufacturers is severe. Many com plaints are heard of the cutting of prices to below cost in order to obtain orders. Although the majority of manufacturers have not changed their quotations since April, about one-third of the reports state that prices are lower. Chip and newsboard are the same as they were a month ago, and practically no distress lots have been offered in the Philadelphia market this month. Con cessions in prices of strawboard, jute liner, and con tainer boards are still obtainable. Stocks of finished boxes vary from light to moderate and are decreasing slightly. Supplies of raw materials are moderate in size and are also declining. The supply of both skilled and unskilled labor is plentiful, and wages are unchanged. Collections vary from fair to good and are the same as they were last month. Book •• 1915 33 CIGARS Manufacturers reporting to us state that demand for cigars is fair and in some instances good. Larger sales have been made during the latter part of April and thus far in May than were made in the corresponding period a month ago, and the call in general is now fully as good as it was at this time last year, if not better. One large maker states that sales during April were heavier than in any similar month in the history of his company. Most of the call is for “C” grade cigars, but both “A” and “B” grades are moving fairly well. Very few price changes have occurred, and quotations are generally firm. But in a few cases prices are said to have been slightly reduced. As is usual, some little resistance is being encountered to present prices, but this has had practically no effect on the volume of unfilled orders, which is about the same as it was a month ago. Stocks of both finished goods and raw materials are moderate and stationary, but there are some indications that supplies of the latter will soon decrease. Producers reporting to this bank are operating at nearly 80 per cent of capacity, or at about the same rate as they were at this time in April; and orders on hand will support this scale of production for an average period of about two weeks. In many cases, orders re ceived are for immediate delivery, and this is necessi tating makers whose stocks are fairly small to work on current business. The supply of skilled labor is more than ample, and though in several cases the wages of skilled workers have been reduced 10 per cent, those of the unskilled are practically the same as they were during April. Col lections are either fair or good and are the same as they were at this time both last month and last year. J une T he B usiness R eview 34 AGRICULTURE Continued cool and rainy weather during the greater part of the month has retarded the early crops and delayed planting in all parts of the district. Reports from county agents state that all crops are from ten days to two weeks behind their normal development. The weather, however, has greatly favored fruit crops, as damage by killing frosts has been negligible, and the outlook for the fruit yields is distinctly good. With the exception of apples, some varieties of which have not bloomed as heavily as usual, the product.on of fruits in this district should equal or exceed that of 1923. The strawberry yield should be heavy, considering the stand, which was adversely affected by the long drought of last summer. Abundant rainfall has greatly benefited hay and grain crops and pastures, and except in some of the mountainous districts, where considerable winter killing occurred, the condition of these crops is better than it was a year ago. The stand of timothy hay is generally reported as excellent; but that of alfalfa and clover in many counties is only fair or even poor, be cause of the heavy amount of winter killing. Pastures, though late, are in good condition. Except in Delaware, the condition of winter wheat on May 1 was considerably better than on May 1, 1923; and that of rye, over the whole district, is at least as good as it was a year ago. The production of both wheat and rye will be smaller than it was last year and less than the average for the past ten years, chiefly because of a reduction in the acreage planted. The wheat acreage in the Third Dis trict is approximately 6 per cent smaller than it was in 1923, and the rye acreage from 4 to 5 per cent smaller. Practically all of the early truck crops grown in this district have now been planted, but seeding has been from ten to fifteen days late. In the higher counties the early corn, potatoes, and oats have not yet been entirely planted, and seeding will not be completed until June 1. The New Jersey department of agriculture re ports that the acreage planted to tomatoes, asparagus, and celery (spring crop) will be larger than it was last year; but .that of strawberries, green peas, lettuce, onions, string beans, and sweet corn will be smaller. The acreage of cabbage is about the same. Although the supply of farm labor is greater than it was last spring, it is not equal to the demand. Good tenant farmers are particularly scarce, and reports from many counties indicate that fewer farms will be worked this year than ever before. Some farm agencies place FARM MONTH With board WAGES Without board 90 80 United States North Atlantic States 70 1910 1915 1920 1921 1922 193(M or.l) 1924 ft I 1910 1915 19201921 1922 1923,1924) (M on Farm wages in the North A tlantic States are higher than they were in any previous year save 1920. The average for the United States, however, is slightly lower than it was a year ago. Source—D epartm ent of Agriculture the reduction in acreage as compared with 1923 at as high as 5 per cent, but over the entire district it will probably not exceed 2 per cent. A considerable part of the land that will not be planted is good fertile farm land. Farm wages in this district are higher than they were a year ago, despite the fact that the average for the entire United States is somewhat lower. The preceding chart shows that farm wages in the north Atlantic states are higher than they have been at any time in the last quarter of a century except in the year 1920. About 75 per cent of the steers which were fattened in this district have been marketed, and the balance will be marketed by June 1. The condition of dairy cows in many counties is not as good as it was a year ago, and the cattle are thin, because of the shortage of roughages on many farms. However, with abundant pastures now available and a good crop of hay in prospect, the condition of the dairy herds should soon improve. The spring litters of hogs have not been as large as was expected by hog breeders, and in many cases there have been high percentages of loss in litters that were far rowed. But the general condition of hogs is good, and horses and mules are up to normal. The outlook for the crops of this district has seldom been more hopeful at the start of the growing season. The shortage of farm labor is the only unfavorable fac tor in the present agricultural prospect. COMPILED AS OF MAY 21, 1924. This business review will be sent regularly without charge to any address upon request T hird F ederal R eserve D istrict [924 35 BUSINESS INDICATORS Third Federal Reserve District The follow ing data refer to the Third Federal Reserve D istrict except where otherwise noted April, 1924 March, 1924 April, 1923 Retail trade—net sales! (156 stores)................ Department (64 stores).................................................... j Apparel (49 stores).................................................. Shoe (22 stores)....................................................... Credit (21 stores)..................................................... Wholesale trade—net sales (173 firms) Boots and shoes (13 firms)...................... Drugs (15 firms)........................................ Drygoods (19 firms)................................ Electrical supplies (6 firms)..................... Groceries (60 firms).................................. Hardware (32 firms).................................. Jewelry (16 firms)........... .......................... Paper (12 firms)........................................ $26,800,000 $20,600,000 $20,600,000 $4,500,000 $600,000 $ 1, 100,000 $11,619,000 $532,000 $1,531,000 $1,024,000 $620,000 $4,013,000 $2,370,000 $394,000 $1,135,000 $22,800,000 $18,000,000 $3,500,000 $400,000 $900,000 $11,972,000 $443,000 $1,561,000 $1,164,000 $672,000 $4,217,000 $2,275,000 $425,000 $1,215,000 $22 ,000,000 $17,600,000 $3,000,000 $400,000 $ 1,000,000 $12,018,000 $453,000 $1,453,000 $1,152,000 $711,000 $4,150,000 $2,498,000 $435,000 $1,166,000 Shoes* (104 factories)......... Pig iron................................. Hosiery* (113 mills)........... Iron castings (37 foundries) Steel castings (5 foundries). Cement.................................. Anthracite............................ time output)........................... Wool consumption* (75 mills) Active cotton spindles (Pennsyl 1,715,949 prs. 211,975 tons 1,050,123 doz. prs. 7,203 tons 2,356 tons 3.024.000 bbls. 6.811.000 tons 38.1% 6,808,400 lbs. 567,700 1,783,516 prs. 228,026 tons 6,503 tons 3.087.000 bbls. 8.114.000 tons 55.9% 8,283,863 lbs. 582,524 age). bonnage of vessels (Port of Philadelphia)............ Exports of wheat (from Port of Philadelphia).... Exports of flour (from Port of Philadelphia)........ Imports of crude oil (into Port of Philadelphia).. 182,000 209,000 194,000 2.904.000 tons 2.727.000 tons 2,840,000 tons 3,864.561 bus. 2,367,209 bus. 3,480,619 bus. 5.866.000 lbs. 7.190.000 lbs. 11.740:000 lbs. 14.322,000 gals. 23,184,000 gals. 30,595,000 gals. Production: Distribution: Financial: Loans, discounts and investments of member banks (weekly average)............................................................ $938,600,000 Bills discounted held by Federal Reserve Bank of Phil adelphia (daily average)............................................... $40,500,000 Acceptances executed (12 banks for month ended 10th of following month)............................................ $3,108,000 Bankers’ acceptances sales (5 dealers—weekly average for period ended middle following month)........ $556,000 $6,500,000 Commercial paper sales (5 dealers)........................ Savings deposits (78 banks).................................... $487,634,000 General: Debits (18 cities)............................................................... $1,942,353,000 Commercial failures........................................................... 63 $1,548,342 Commercial failures—liabilities...................................... Building permits (15 cities)............................................. $28,225,000 Building contracts awarded (Philadelphia district). . . $38,875,174 Employment—number of wage earners (1033 plants in $395,077 Pennsylvania, New Jersey and Delaware)................ Average weekly earnings (400,000 wage earners in $26.58 j ennsylvania, New Jersey and Delaware)................ ‘'•ales of life insurance (Pennsvlvania, New Jersev and Delaware)........................................................................ $81,989,000 tS S T tS 0" - preliminary figures. $923,400,000 $41,900,000 $3,596,000 $519,000 $10,364,000 $485,682,000 $1,873,806,000 83 $1,724,650 $23,464,000 $27,014,785 $399,531 $26.69 $81,902,000 April, 1924 compared with March 1924 April 1923 + 17.5% + 14.4 “ +28.6 “ +50.0 “ + 22.2 “ - 2.9“ + 20.1 “ - 1.9“ - 12.0 “ - 7.7“ - 4.8“ + 4.2“ - 7.3“ - 6 .6 “ + 21 .8 % + 17.0“ +50.0 “ +50.0 “ + 10.0 “ - 3.3“ + 17.4“ + 5.4“ - 11.1 “ - 12.8 “ - 3.3“ - 5.1“ - 9.4“ - 2.7“ - 3.8“ - 7.0“ + 0 .2 “ + 10.8 “ 2.996.000 bbls. - 2 .0 “ 8.063.000 tons -16.1 “ -3 1 .8 “ 58.3% -17.8 “ - 2.5“ 586,106 242,792 tons -1 2 .7 “ + 0.9“ -15.5 “ -3 4 .6 “ - 3.1 “ - 6 .2 “ + 6.5“ +63.3 “ -18.4 “ -3 8 .2 “ -1 2 .9 “ + 2.3“ + 11.0 “ -5 0 .0 “ -53.2 “ + 1.6 “ - 3.3“ -1 3 .6 “ + 7.1“ -3 7 .3 “ + 0.4“ + 1.0 “ -28.6 “ -1 7 .5 “ -4 3 .4 “ - 5.3“ + 7.6“ $1,863,477,000 + 3.7“ -24.1 “ 63 $1,775,463 - 10.2 “ $29,162,000 +20.3 “ $30,553,000 +43.9 “ - 1. 1 “ - 0.4“ $68,419,000 + 0.1 “ + 4.2“ 0 - 12.8 “ - 3.2“ +27.2 “ $929,300,000 $56,700,000 $3,767,000 $983,000 $6,865,000 $453,056,000 + 19.8“ 3^ T he B usiness R eview J une WHAT ARE FEDERAL RESERVE NOTES? Federal reserve notes are direct obligations of the loans and from deposits. In times of declining busi United States and are receivable by all national banks ness it is usual for the member banks to repay much and member banks and by Federal reserve banks, and of their borrowing with Federal reserve notes deposited for all taxes, customs, and other public dues, but they with them by their customers. are not legal tender for private debts. These notes It should be noted, however, that an increase in re are redeemable in gold upon the demand of the holder discounts by a Federal reserve bank does not neces at the Treasury Department of the United States in sarily increase the circulation of Federal reserve notes, Washington, or in gold or lawful money at any Federal as the member bank that offers the paper may wish reserve bank. to build up its reserves, leaving the proceeds of the The means by which Federal reserve notes are issued discounted paper on deposit at the Federal reserve bank. and the security behind them is of considerable interest. That is, the circulation of Federal reserve notes does Any Federal reserve bank may make application to the not increase unless there is a demand for more cur Federal reserve agent (the local representative of the rency. Such an increase in demand is especially notice Federal Reserve Board) for such amounts as it may re able during the Christmas holiday season, when the quire, accompanying its application by a tender of col larger volume of retail trade necessitates the use of a lateral equal to the amount of notes applied for. This greater amount of hand-to-hand money. It should be clear from the foregoing explanation collateral consists of notes or bills acquired either by rediscount from member banks or by purchase in the that the process of rediscounting for member banks, and the process of issuing Federal reserve notes are open market, or gold or gold certificates. Against its Federal reserve notes that are in active two co-ordinated powers, which, in some respects are circulation a Federal reserve bank is required to hold a independent of each other. Let us assume that $60,000 gold reserve of 40 per cent. But any gold deposited of eligible paper is rediscounted by a reserve bank for with the Federal reserve agent as collateral may be a member bank, and, together with $40,000 in gold, is counted as part of this required reserve. In order to deposited by the reserve bank with the Federal reserve redeem its notes in gold when presented at the United agent in exchange for $100,000 in Federal reserve notes, States Treasury each reserve bank must carry a gold and that these notes are paid out to the member bank, fund with the Treasurer of the United States of at least or otherwise put into circulation by the reserve bank. 5 per cent of its outstanding notes not covered by gold If the whole $100,000 of Federal reserve notes is needed collateral, but this redemption fund counts as part of in circulation (because of the demands of business) it the required reserve of 40 per cent. will stay out regardless of the maturity of the Federal reserve notes, then, are secured as follows: paper which serves as security for these notes. (1) they are a direct promise or obligation of the It may happen, however, that these notes are not United States and of the issuing Federal reserve bank; needed in circulation, in which case they will in all (2) they have collateral behind them of at least 100 probability be deposited by the member bank in the per cent consisting of eligible paper or gold; (3) a Federal reserve bank before the maturity of the paper, gold reserve of 40 per cent is required; (4) they are in which case the reserve bank can itself give gold or a first lien on the assets of the issuing Federal reserve deposit credit for them, and, if it desires to do so, present the whole amount to the Federal reserve agent bank. One of the prime reasons for providing for the and receive back the $60,000 in paper which has not issuance of Federal reserve notes was to secure an yet matured, and the $40,000 in gold originally deposited elastic currency, that is a currency that would expand with him as security. But let us suppose that these and contract with the needs of business. This was notes stay out at least until the maturity of the col accomplished by permitting the issue of these notes lateral. In that case, the member bank must make pay largely against commercial paper. For example, when ment to the reserve bank either in gold or in notes. If member banks are being called on heavily for loans they paid in gold the gold must be turned over to the Federal rediscount with their Federal reserve bank some of reserve agent in order that the paper may be released their eligible notes. The reserve bank, in turn, deposits by him, and he will then hold $100,000 in gold against this paper with the Federal reserve agent, receiving from the $100,000 of Federal reserve notes which have l>een him a like amount of Federal reserve notes which may issued to the reserve bank. If, on the contrary, the be turned over to member banks in return for the notes $60,000 in paper is paid by the member bank to the it has rediscounted, or circulated in some other way. reserve bank in Federal reserve notes, these can be Contraction is practically automatic; if the needs turned over to the Federal reserve agent in exchange for of business diminish there is less need for currency the $60,000 in paper released by him to the reserve and less borrowing at the member banks; these in turn bank for collection and payment. He will then hold reduce their rediscounts at their reserve banks by turn $40,000 in gold against the $40,000 of Federal reserve ing over to it funds received from the repayment of notes still remaining in circulation.
@FedFRASER