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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT JUNE i, 192.5 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA B U SIN E SS C O N D IT IO N S IN T H E U N IT E D S T A T E S Production in basic industries and fac tory employment continued at approxi mately the same level during April as in March. Factory payrolls were smaller, and wholesale prices declined sharply. Distribution o f commodities was maintained at higher levels than a year ago. riculture on May 1 indicated a reduc tion of 6 per cent from the April fore cast in the yields of winter wheat and rye. The winter wheat crop is ex pected to be 25 per cent smaller than last year and the indicated yield of rye is 9 per cent less. Trade. Wholesale trade was smaller in all lines except hardware during April than in March. Compared with a year ago sales of groceries and shoes were less, but sales of meats, drygoods and drugs were larger. Sales at department stores and by mail order houses showed more than the usual seasonal increase in April and were larger than during April, 1924. Wholesale stocks o f groceries, shoes and hardware were smaller at the end of April than a month earlier, while drygoods were larger. Merchandise stocks at department stores showed less than the usual seasonal increase in April, but were in about the same volume as a year ago. Freight car loadings of mer chandise were greater than in March and larger than any previous April. ities shared in the decline of prices, except housefurnishings and the mis cellaneous group. The largest declines were in farm products and foods, which had shown the most rapid increases. During the first three weeks in May prices of grains, beef, hogs, flour and rubber advanced, while declines occur red in cotton, wool, lumber and iron prices. Production. The output in basic industries declined less than one per cent in April. Decreased production of iron and steel, flour, and copper was largely offset in the Federal Reserve Board’s production index by increases in mill consumption of cotton and in the production of newsprint and petroleum. The output o f automobiles, which are not included in the index, has increased rap idly since December and in April was the largest ever recorded. Automobile tire production was maintained at the high level reached in March. Number o f men employed at industrial establishments re mained practically the same in April as in March but owing to less full time operation, particularly in the textile, leather and food industries, total factory payrolls decreased about 2 per cent. Building contracts awarded during April were the largest on record both in value and square feet. Estimates by the Department of A g Prices. Wholesale prices, according to the index o f the Bureau of Labor Statis tics, declined 3 per cent in April, follow ing an almost uninterrupted rise since the middle o f 1924. All groups of commod Bank credit. At the middle o f May total loans and investments of member banks in leading cities were near the level which has prevailed, with only minor fluc tuations since the first o f the year. Loans chiefly for commercial purposes declined slightly between the middle of April and the middle of May, while loans on securi ties rose to a high point at the end of April and decreased somewhat during the first two weeks of May. Total investment holdings which increased considerably during the first half of March have declined somewhat since that time. Net demand deposits increased considerably from the low point at the end of March, but were still $500,000,000 less than at the middle o f January. At the Reserve Banks there was a marked decline in the volume o f mem ber banks borrowing after the first week in May and total earning assets o f the Index of 22 basic com modities corrected for seasonal variation (1919 = 100). Latest figure— April, 119. Index of U. S. Bureau of Labor Statistics (1913 = 100, base adopted by Bureau). Lat est figure— April, 156.2. Weekly figures for m em ber banks in 101 lead ing cities. Latest figure— M ay, 13. 1922 1923 1924 1925 Page One FA C TO R Y EM PLO Y M E N T AMD PAYROLL PE R C E N T _____________________________________________________________ P a y r o ll A 1/ ^ E rop loyroen ■ ° 1922 1923 1924 1925 Index for 33 m anufacturing industries (1919 = 100). Latest figure. April—Em ploym ent 96.0, payroll 107.6. Reserve Banks on May 20 were less than $1,000,000,000 for the first time since January. Acceptances and hold ings of United States securities on that date were in about the same volume as a month earlier. Money conditions continued relatively easy during the latter part of April and the first part of May. A t 3$4-4 per cent the open market rate for prime commercial paper was slightly below the level for the preceding month. B U S I N E S S C O N D I T I O N S IN T H E P H IL A D E L P H IA F E D E R A L R E S E R V E D IS T R IC T Taken as a whole the volume of busi ness in the Philadelphia Federal Reserve District has undergone a further con traction during the past month. Factory employment and payrolls were smaller in April than in March and, according to preliminary reports, working forces were further reduced in May. Distribution and consumption of goods have also been in smaller volume. Although railroad freight shipments have maintained a fairly high level, both wholesale and retail sales have been in smaller amount than in the same period o f last year. Prices, too, experienced sharp downward reactions in A p ril; the general level of wholesale quotations declined more than 3 per cent. Fundamental conditions, however, are quite satisfactory, and the recent declines in activity have, in the main, been slight as compared with the substantial advances which have been made since last summer. The current slackening has not been experienced uni versally and many lines of trade have expanded materially in recent months. Building activity continued in April at the same high level as in March and the number o f permits issued in this dis trict during these two months was larger than in any previous corresponding period. Nothwithstanding the continued large volume of new building, the real estate market appears to be easier and some classes of dwellings and apartments are reported in oversupply at existing renting levels. In spite of active construc Page Two tion programs building materials seem to be in only fair demand. Indeed in some cases, notably brick, lumber and plumbing supplies, prices are reported as weak or yielding. Demand for iron and steel products has receded still further and this has been accompanied by lower prices and addi tional reduction in output both in this district and in the United States as a whole. The coke market has been ad versely affected by this slackening, but the coal trades, both bituminous and an thracite, have been more active, with prices slightly higher. Conditions among the textile products continue mixed. The wool markets are distinctly unsatisfactory. Demand has slackened further and raw wool, yarn and goods are all lower in price. Cotton goods are also in poor request, with the exception of knitting yarns, and prices o f most products are lower. The silk industry, on the other hand, has continued to enjoy active business with firm or strengthening prices and a factory out put larger than that of last year. Hosiery mills also are receiving large orders especially for fullfashioned grades. The carpet and rug season has Qpened with prices about the same as last year’s but retailers have purchased but little so far. The leather industries are quiet; de mand is weak for both hides and skins and leather, and there has been some weakening of prices. Business in shoes has also fallen off. Activity in the rub ber industry has increased; good demand and higher prices for tires and tubes have accompanied a sharp advance in crude rubber quotations. Demand for paper is fair though smaller than last month, but paper boxes have been ;n slight request at lower prices. Agricultural conditions in the district are fairly satisfactory although cool weather has retarded growth somewhat. Planting is nearly completed. Forage and cereal crops are in good condition and livestock markets are more satisfac tory. The condition of the fruit crops, however, is somewhat less favorable than it was last year. EM PLO YM EN T AND W AGES Factory employment and wage pay ments in the states of the Philadelphia Federal Reserve District declined during April. The majority of the 48 industries reported losses and only one o f the groups—building materials— showed a gain over the previous month. A net de cline of 1 per cent in employment and 3 per cent in wages was reported by 1,003 plants employing nearly 380,000 workers. The largest losses were reported by the food and tobacco group with declines of 5.5 per cent and 8.6 per cent, respectively, in employment and wages. Most of the textile industries curtailed operations in April, as reflected by large reductions in wage payments, notably in clothing fac tories, woolen and worsted mills and establishments making felt hats. Metal fabricating establishments and chemical manufactures also showed losses, al though generally smaller than in the tex tile and food product groups. Many of the miscellaneous group, notably the fur- SYNOPSIS OF BUSINESS CONDITIONS Compiled as of May 23, 1925 Philadelphia Federal Reserve District Business Demand Good Coke......................................................... Prices Stocks Collections Good Higher Higher Unchanged Fair Fair Fair • Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged Fair Moderate Heavy Fair Fair Fair Light Unchanged Unchanged Unchanged Heavy Fair Fair Fair Good Fair Good’ Lower Moderate Some weakness Moderate Fair Fair Fair Heavy Good Fair Higher Unchanged Unchanged Fair Unchanged Higher Unchanged Unchanged Moderate Fair Lower Moderate Light Fair Fair Fair Good Fair Fair Fair EM PLO YM EN T AND W AGES Throughout Pennsylvania, New Jersey and Delaware Number of wage earners— week ended Group and industry All industries (48) No. of plants report ing Apr. 15, 1925 Per cent change from month ago Total weekly wages— week ended Apr. 15, 1925 Per cent change from month ago Average weekly earnings— week ended Apr. 15, 1925 Per cent change from month ago 1,003 376,279 - 1.0 $9,759,260 Metal manufactures: Automobiles, bodies, and parts. . Car construction and repair........ Elec, machinery and apparatus. . Engines, machines, mach. tools. . Foundries and machine shops.. .. Heating appl. and apparatus. . . . Iron and steel blast furnaces....... Iron and steel forgings................. Steel works and rolling mills....... Structural iron works................... Misc. iron and steel products. . . . Shipbuilding.................................. Non-ferrous metals....................... 347 180,579 8,312 23 15 15,946 38 18,987 37 9,734 70 12,180 19 6,355 13 15,249 4,757 13 47 46,580 12 3,452 46 27,104 8 8,338 6 3,585 + + + + + 0.6 7.3 1.5 0.9 1.8 0.2 4.2 1.1 2.7 1.9 3.5 1.2 2.4 3.2 4,952,404 241,621 486,709 449,555 276,797 345,711 177,695 426,902 104,847 1,285,638 95,597 724,181 241,375 95,776 - 2.5 + 8.6 - 1.0 - 1.7 + 0.9 - 1.8 -1 2 .0 - 0.2 -1 4 .6 - 3.0 + 1.9 - 4.0 - 4.4 - 7.1 27.43 29.07 30.52 23.68 28.44 28.38 27.96 28.00 22.04 27.60 27.69 26.42 28.95 26.72 - 1.9 + 1.2 + 0.5 - 2.6 - 0.8 - 1.7 - 8.1 + 1.0 -1 2 .2 - 1.1 - 1.6 - 2.8 - 2.0 - 9.9 Textile products: Carpets and rugs.......................... Clothing......................................... Hats, felt and other..................... Cotton goods................................. Silk goods...................................... Woolens and worsteds.................. Knit goods and hosiery................ Dyeing and finishing textiles. . . . Miscellaneous textile products. . . 232 15 25 11 28 57 27 41 21 7 71,750 4,613 4,162 5,303 8,458 18,326 9,813 10,931 8,555 1,589 + + + + + - 0.7 1.4 7.4 2.8 0.7 2.1 9.1 2.0 2.8 8.2 1,593,005 120,254 71,015 121,198 191,760 389,237 198,126 245,948 226,826 28,641 - 4.7 - 7.9 -1 5 .4 -1 0 .5 - 2.1 - 0.5 -1 4 .0 + 1.3 + 0.3 — 16.4 22.20 26.07 17.06 22.85 22.67 21.24 20.19 22.50 26.51 18.02 - 4.0 - 9.2 - 8.6 -1 3 .0 - 1.5 - 2.6 - 5.5 - 0.7 - 2.5 - 9.0 Foods and tobacco: Bakeries......................................... Canneries....................................... Confectionery and ice cream....... Slaughtering and meat packing. . Sugar refining............................... Cigars and tobacco....................... 82 19 6 20 12 4 21 23,869 3,416 3,318 5,083 2,516 3,314 6,222 - 5.5 - 1.8 + 0.8 - 4.9 - 1.6 -1 8 .8 - 4.2 520,989 104,955 69,424 104,270 64,751 98,242 79,347 ' - 8.6 + 0.8 - 3.5 - 3.9 - 3.7 -1 9 .0 -1 7 .9 21.83 30.72 20.92 20.51 25.74 29.64 12.75 - 3.3 + 2.6 - 4.2 + 1.0 - 2.1 - 0.3 -1 4 .3 Building materials: Brick, tile, terra cotta products. . Cement.......................................... Glass.............................................. Pottery.......................................... 78 21 15 27 15 26,412 3,742 7,779 9,787 5,104 + + + + + 1.3 0.1 1.5 0.9 2.7 745,355 93,111 225,471 275,974 150,799 + + + - 1.7 0.0 6.8 3.0 6.2 28.22 24.88 28.98 28.20 29.55 + + + - Chemicals and allied products: Chemicals and drugs.................... Explosives..................................... Paints and varnishes.................... Petroleum refining........................ Coke............................................... 76 39 10 15 8 4 29,909 7,342 2,633 1,447 17,018 1,469 + + + 0.2 3.9 2.1 2.4 0.9 4.5 882,660 200,447 74,855 36,717 531,108 39,533 + 0.2 - 2.6 + 11.5 - 3.5 + 0.7 - 6.3 29.51 27.30 28.43 25.37 31.21 26.91 + 0.4 + 1.3 + 9.3 - 1.1 - 0.2 -1 0 .3 Miscellaneous industries: Lumber and planing mill prod. . . Furniture....................................... Musical instruments..................... Leather tanning............................ Leather products.......................... Boots and shoes............................ Paper and pulp products............. Printing and publishing............... Rubber tires and goods................ Novelties and jewelry.................. All other industries................. .. 188 8 20 6 34 6 27 21 26 19 9 12 43,760 2,429 2,684 4,023 8,408 601 5,147 5,076 3,829 5,383 2,353 3,827 + + - 2.0 5.6 2.6 6.0 1.5 2.4 1.3 1.5 0.6 2.2 0.0 0.1 1,064,847 50,457 60,472 98,197 197,662 12,538 95,073 136,739 120,178 146,930 58,561 88,040 - 5.7 + 3.6 -1 1 .9 -1 0 .9 - 8.8 - 5.3 - 9.1 + 0.5 - 1.9 - 3.6 - 4.4 - 7.3 24.33 20.77 22.53 24.41 23.51 20.86 18.47 26.94 31.39 27.30 24.89 23.00 + + - niture, musical instrument, shoe, and leather tanning industries experienced re ductions in both working forces and operating schedules. Among the most notable exceptions to the general down ward trend were the automobile, cement, and explosive manufacturing industries. F IN A N C IA L C O N D IT IO N S The total loans and investments o f re porting member banks in four of the principal cities o f the Philadelphia Federal Reserve District on May 13 were 16 millions below the high point reached on April 8. Declines in loans secured by stocks and bonds, in investments, and - 3.0 $25.94 - 2.1 0.4 0.1 5.2 2.0 8.7 3.8 9.7 9.5 5.2 7.4 7.5 7.9 2.0 1.2 1.4 4.4 7.3 in loans of a commercial nature all con tributed to this decline, although the fall ing off in the latter was small. The total o f net demand, time and Government deposits declined 13 millions in the same period. Although loans secured by stocks and bonds on May 13 were 342 millions, it should be noted that on May 6 they totaled 352 millions, surpassing all previous records. On May 13 “ all other” loans, which are generally re garded as being mainly commercial in character, were 13 millions above their level early in February, but still 22 millions below the peak o f last October. Holdings o f bills discounted by the Federal Reserve Bank o f Philadelphia advanced somewhat within the past few weeks, but on May 20 were 14 millions below the high point for 1925 reached on March 27. In comparison with April 22, discounts declined 1.3 millions, and other earning assets 2.8 millions. Over the same interval deposits, circulation of Federal reserve notes and cash reserves increased, and the reserve ratio advanced from 76.1 to 78.7 per cent. The renewal rate for call money, which on April 22 was 4 per cent, on May 22 was 3^4 per cent. Commercial paper has been somewhat easier, being quoted at 3^4-4 per cent in New York as against 4 per cent a month before. The offering rate for 90-day bankers’ bills remained unchanged at 3 % per cent to May 20, but on that day was advanced to 3^4 per cent. The Dow-Jones average of 20 indus trial stocks, from $125.68 on March 6, declined to $115.00 on March 30. A generally ascending level since that time has carried this average up to $128.95 on May 22. On that date the average was $8.43 above the figure o f a month before and a similar average for 20 rail road stocks showed a gain o f $3.44. Higher prices for bonds, also, are to be noted. A decrease o f one-tenth o f one per cent took place in savings deposits dur ing April, as reported by 99 banks in the Philadelphia Federal Reserve District This contrasts with increases o f .4 and .9 per cent in the same months o f 1924 and 1923, respectively. Percentage changes by cities follow : Changes May 1, 1925, compared with Savings deposits Allentown.......................... Altoona.............................. Bethlehem......................... Chester............................... Easton................................ Harrisburg......................... Johnstown......................... Lancaster........................... Philadelphia...................... Reading............................. Scranton............................. Trenton.............................. Wilkes-Barre..................... Williamsport. . .'................ Wilmington....................... Y ork................................... Others................................ Total............................... Previous month Previous year - -5% + .9 “ + .3 “ -1 .4 “ -1 .0 “ -2 .2 “ + .9 “ + .9 “ + .01% + -6% - .3 “ -1 .6 “ + .4 “ + .2 “ - .1 “ + .3 “ - .1 “ + 6.1% + 9.7 “ + 12.8 “ + 2.9 “ + 11.8 “ +19.1 “ + 3.2 “ + 18.0 “ + 6.4 “ + 13.5 “ + 11.0 “ + .7 “ + 10.0 “ + 9.7 “ + 5.2 “ + 15.2 “ + 4.1 “ - + 7.0% -1% C om m ercial paper. In the Philadel phia Federal Reserve District, during the first half o f April, the principal buyers of commercial paper held out for 4 per cent, whereas much o f the new paper coming in was held by the dealers at 3^4 per cent. This accounted for the small sales, and much o f this paper has been disposed o f elsewhere by the dealers, the best markets being in the Middle West Page Three W H O LESALE TRADE FINANCIAL STATISTICS Philadelphia Federal Reserve District Changes in course of 000’s omitted in all figures except percentages Latest Four weeks One year ' Reporting member banks: Loans secured by stocks and bonds............................. All other (largely commercial) loans........................... $341,700 367,200 + $4,900 + 600 + $52,100 45,400 Total loans.................................................................. Investments.................................................................... $708,900 360,700 + $5,500 8,100 + $57,500 + 59,600 Total loans and investments..................................... Total deposits................................................................ $1,069,600 961,500 - $2,600 2,000 +$117,100 + 118,700 Federal Reserve Bank: Bills discounted.............................................................. Other earning assets...................................................... $34,700 48,100 - $1,300 2,800 + $ 3,400 + 14,200 - Total earning assets................................................... $82,800 $4,100 + $ 17,600 Federal reserve note circulation................................... Total deposits........................................... ..................... Cash reserves.................................................................. Reserve ratio.................................................................. $150,000 134,100 223,600 78.7% + $1,800 + 3,600 + 11,500 + 2.6% - $ 36,300 + 13,700 39,800 7.2% Debits (banks in 18 cities)*.............................................. Savings deposits (99 banks)............................................. Bankers’ acceptances:! Purchases by 5 dealers.................................................. Sales by 5 dealers: To Federal Reserve Bank......................................... To others.................................................................... Executed by 11 banks!................................................. Commercial paper sales, 6 dealers................................... $567,595 565,300 +$19,610 700 + $ 74,938 + 36,900 662 + 180 + 393 1,944 122 3,309 7,424 + + 566 39 970 186 + + + + 1,456 54 211 626 N E W YORK CITY May 22, 1925 Actual figures in all columns Money rates: Commercial paper......................................................... Bankers’ acceptances..................................................... Call money renewals...................................................... Security price averages: 20 industrial stocks........................................................ 20 railroad stocks........................................................... * Weekly totals. t Weekly averages. R E T A IL T R A D E The majority of retailers report that the volume o f sales for May will not equal that of a year ago, although, in general, retail trade is fairly active. Cool weather during the first half of the month retarded sales o f summer apparel, while unemployment in the soft coal dis tricts and possibilities of a strike in the Year ago 3M -4% 3M % 33 A% 4% 3 yi% 4% 4-4M % 3-346% 3% $128.95 99.05 93.11 102.00 $120.52 95.61 91.94 101.84 $90.10 82.58 88.72 100.68 t Total for month ending 10th. and New York where paper sold as low as 3 y2 per cent. As offerings have been small, there has been no pressure to sell, and rates have been firmly maintained. In April the sales of six dealers in this district were $7,423,500; this compares with $7,610,000 in March and $6,797,500 iti April, 1924. The amount sold to Philadelphia banks was $4,671,000 and to outside institutions $2,752,500. Rates on these sales varied from 3^4 to 5 per cent. More than 85 per cent of the total was at 4 and 4^4 per cent, the amount at 4 per cent being the larger part. Less than 10 per cent of the total sold at 3^4 per cent and less than 5 per cent at 4 per cent or over. Page Four Month ago anthracite regions have slowed up sales in the large mining cities. Consumption of medium and low-priced goods is large, but store managers find it necessary to run an almost continuous series of special sales to maintain a satisfactory volume of business. High-priced quality goods are moving somewhat slowly. The demand for women’s apparel, women’s shoes, toilet goods, hosiery, leather products, luggage, and fancy goods is active and about equal to that of last May, but men’s clothing and ap parel is not moving in as large volume as a year ago. Sales o f straw hats and summer apparel, because of cool weather, have been smaller than they were last May. Linoleum, rugs and carpets, draperies and refrigerators are selling well. Prices show little change from those o f a month ago, although some retailers report that they are offered odd lots and samples at from 10 to 15 per cent below the regular prices of a month ago. Col lections, except in the mining cities, are fairly good and show no change from a year ago, During May sales in most lines have been seasonally smaller than they were in April, and, partly because of the long spell o f cool weather, will probably fall below those of May, 1924. Those prices which have changed are lower and in clude a number of staple groceries, botanical drugs and several kinds of paper. In April sales were smaller than in March except in hardware, and only in drugs and hardware were they larger than in April, 1924. It should be con sidered, however, that Easter fell eight days earlier this year than it did last year and that sales in April in some wholesale lines were undoubtedly les sened thereby. Stocks at the end of April were larger in jewelry and paper, but in other trades they were smaller than at the same date in 1924. These changes w7ere comparatively unimportant except for a decrease of 17 per cent in drygoods. In five lines collections were poorer than they were either in the previous month or in April, 1924. D rugs. Drugs are selling in about the same volume as they were a month ago, but in larger amount than in May, 1924. Toilet preparations, insecticides, disinfectants and seasonable patent medicines are the most active sellers. Botanical drugs are considerably lower than they were a month ago and fine chemicals are also a trifle cheaper. The “ Oil, Paint and Drug Reporter’s” index number for 40 botanical drugs on May 18 was 115.2, as compared with 119.2 on April 20, that for 35 drugs and fine chemicals was 201.8 on May 18 as against 202.5 on April 20. Sales during April were 3.1 per cent smaller than those o f March, but 5.4 per cent greater than during April, 1924. Paper. With the exception of news print, the demand for paper is not as active as it was in April although it is about equal to that o f May, 1924. In general, the demand is only fair. News print is in good request, but the call for book and fine papers has decreased. Kraft, wrapping, tissue and crepe papers are selling in fair volume, as are cover papers. Cardboards, building boards, and boxboards are moving slowly. Most paper products are unchanged in price, but sulphite bonds, boxboards and sheath ing papers are cheaper than they were in April. Sales during April were 8.7 per cent smaller than in March and 4.4 per cent less than in April, 1924. D ry g ood s. Sales of drygoods have been somewhat disappointing; a condi tion attributable to the long spell o f cool weather. Early reports indicate that May business will be smaller than it was a year ago. Prices show but little change; no advances have been made, and only a Prices, for the most part, are un changed, but some wholesalers report that they have been offered slight con cessions on some lines. Their purchases, however, are small and their outstand ing contracts are less than they were a year ago. RETAIL TRADE Philadelphia Federal Reserve District Comparison of net sales Stock turnover Comparison of stocks Jan. 1 to Jan. 1 Jan. 1 Apr., 1925, Apr. 30, 1925, Apr. 30, 1925, Apr. 30, 1925, to to with with with with 30 April Apr. 30, 1924 Mar. 31, 1925 192530 April Apr., 1924 Jan. 1 to 1924 Apr. 30, 1924 All reporting firms................... Firms in Philadelphia.............. Allentown, Bethlehem and Easton............................... Altoona................................ Harrisburg............................ Johnstown............................. Lancaster.............................. Reading................................. Scranton............................... Trenton................................. Wilkes-Barre......................... Williamsport......................... Wilmington........................... York...................................... All other/ cities..................... - 2.8% 1.8 “ - 3.5 - 5.1 + 8.7 - 7.9 -1 1 .2 - 3.1 - 1.5 -1 1 .6 - 2.0 - 7.8 -1 0 .0 - 4.3 - 8.8 - 3.5 “ “ “ “ “ “ “ “ “ “ “ “ “ “ - 2 .0 % -1 .9 “ + 1.6% + 3.2 “ _ _ 1.9% 3.5 “ 1.076 1.199 1.106 1.242 -0 .5 -1 .6 -1 .3 -0 .2 -4 .8 - 3 .1 -1 .7 -4 .0 -4 .8 -2 .5 - 4 .1 + 2 .9 -5 .2 -0 .2 “ “ “ “ “ “ “ “ “ “ “ “ “ “ - 5.3 “ - 3.0 “ + 13.3 “ + 3.2 “ -1 4 .3 “ + 0.2 “ -1 0 .4 “ - 2.3 “ - 2.2 “ - 0 .2 “ - 6.3 “ + 10.8 “ - 1.8 “ + 4.8 “ + 0.8 “ + 1.7 “ 4.0 “ + 2.8 “ + 2.8 “ 1.7 “ + 1.6 “ — 5.1 “ + 0.7 “ + 0.2 “ — 2.2 “ — 1.0 “ — 0.7 “ + 2.1 “ .853 .914 .852 .865 .705 .892 .862 -.830 .977 .940 .996 .692 .595 .831 .669 .727 .909 .884 .732 1.011 .973 1.049 .681 .625 .837 .707 -3 .0 “ -3 .7 “ -1 .4 “ + 0.2 “ + 1.0 “ - 2.1 “ — 2.7 “ — 4.5 “ + 1.0 “ 1.059 1.146 .869 1.091 1.194 .870 + 3 .5 -0 .2 + 3 .0 -4 .0 + 4 .1 + 4 .7 + 0 .6 + + + + + + - + + + + — + — 1.2 4.2 8.4 0.2 1.3 0.7 8.2 “ “ “ “ “ “ “ 1.422 .746 .855 .640 2.150 2.396 1.287 1.441 .756 .851 .664 2.126 2.397 1.244 All department stores............. in Philadelphia..................... outside Philadelphia............ - 3.2 “ 2.5 “ - 4.7 “ All apparel stores..................... Men’s apparel stores............... in Philadelphia..................... outside Philadelphia............ Women’s apparel stores.......... in Philadelphia..................... outside Philadelphia............ - 2.4 6.7 4.0 9.6 5.8 5.4 8.3 Credit houses............................ + 1 -2 “ -2 .7 “ + 9.5 “ + 2.4 “ .731 .797 Shoe stores............................... -0 .2 “ + 6 .6 “ + 4.2 “ + 0.6 “ .822 .794 “ “ “ “ “ “ “ few cotton goods, including brown and bleached sheetings, are lower. Articles wanted for prompt delivery include hosiery, underwear, dress goods, notions, work shirts, sweaters and laces; for fall delivery, gloves, underwear, and wool hosiery are in request. Sales in April were smaller by 14.6 per cent than in March and by 6.3 per cent than in April, 1924. E lectrica l supplies. During April the net sales of seven wholesale elec trical firms in the Third Federal Reserve District were 0.8 per cent smaller than in the preceding month and 2.1 per cent less than in April, 1924. Demand, so far this month, has been fair and much the same as in the preceding month though scarcely as active as it was dur ing May, 1924. Construction supplies, including wiring devices and fixtures, are in best request and sales of mill sup plies and power apparatus also have been substantial. With the exception of quo tations for radio equipment, which have been reduced, prices are, in general, un changed from those prevailing a month and a year ago. Jewelry. Jewelry at wholesale is without special feature. Sales are small and for immediate delivery. Prices are unchanged and the articles most called for are, as in recent months, watches, diamond jewelry, wedding rings and platinum ring mountings. “ “ “ “ “ “ “ 10.3 2.4 4.6 0.3 4.6 7.4 4.6 “ “ “ “ “ “ “ Hardware. Building contractors and road builders have ordered substantial supplies of hardware so far this month and the demand from these sources to gether with that from farmers continues to be generally fair. Nearly all reports coming to us indicate that the call is much the same as it was both a month and a year ago. During April, the net sales o f 28 wholesale hardware firms in this district were 2 per cent larger than in March and .3 per cent greater than in April o f last year. Though reports differ somewhat, in general prices are unchanged from those quoted a month ago and in May of last year. Groceries. The demand for groceries is fairly active and about equal to that o f a month ago. Canned fruits and vege tables, dried fruits, cereal foods and staples are selling well. The trend of prices is downward. Coffee, prunes, flour, sugar, raisins, canned peas, cheese, cereals and canned pineapple are slightly lower than they were a month ago; only butter and eggs are higher. Sales in April were 3.4 per cent smaller than in March and 2.2 per cent less than in April, 1924. Sales in April were 2.5 per cent smaller than in March and also were less by 2.8 per cent than in April, 1924. B U IL D IN G During April the estimated cost of new construction in 16 cities located in this district again exceeded 31 million dollars. Though neither the number of permits issued nor the total proposed ex penditure was as great as that recorded at the end of the preceding month, both were considerably in excess o f the figures for April, 1924, as will be noted in the table on page 6. The combined esti mated cost for March and April was larger than in any two consecutive months on record and represents an out lay of over 63 million dollars. Wholesale shoe merchants re port that sales during May have been only fair. Although it is believed that retailers’ stocks are light, they decline to buy because the weather has been un favorable for retail sales. Moreover, business conditions are unfavorable in the bituminous coal and part o f the anthracite districts in which miners are out o f work. Sales in April were smaller by 12.4 per cent than in March and by 12.6 per cent than in April, 1924. Shoes. W HOLESALE TRADE Philadelphia Federal Reserve District Boots and shoes. . . . Drugs....................... Drygoods................. Electrical supplies... Groceries.................. Hardware................. Jewelry..................... Paper........................ Net sales Apr., 1925, com pared with Stocks Apr., 1925, com pared with Accounts out standing Apr., 1925, compared with Mar., 1925 Apr., 1924 Mar., 1925 Mar., 1925 -1 2 .4 % - 3.1 “ -1 4 .6 “ - 0.8 “ - 3 .4 “ + 2.0 “ - 2 .5 “ - 8.7 “ -1 2 .6 % + 5 .4 “ - 6 .3 “ - 2.1 “ - 2 .2 “ + 0.3 “ - 2 .8 “ - 4 .4 “ + 0.2 “ + 7.6 “ - 7.5 “ - 1 .0 “ +10.4 “ + 0.2 “ Apr., 1924 - 0.0% - 0.7% + 0.6% 1 4" 3 i8 “ 5 .3 “ 1.1 “ 0.7 “ 0.9 “ 2 .5 “ -1 7 .0 “< - 0 . 5 “* - 1.0 - 2.6 “, + + 8.4 “. + + 4.6 “, - Ratio of accounts outstanding to sales Apr., 1924 Apr., 1925 Mar., 1925 Apr., 1924 - 6.1% + 8 .5 “ -1 1 .1 “ -1 4 .5 “ - 1 .5 “ + 2.1 “ + 8.7 “ - 2.3 “ 242.9% 14 5.3“ 250.6 “ 1 2 6.6“ 106.0 “ 17 6.8“ 451.2 * 143.5 “ 209.9% 142.4 “ 222.6 “ 132.7 “ 107.3 “ 177.0 “ 436.1 “ 13 4.3“ 222.9% 139.9 “ 264 2 “ 145.1 “ 106 1 “ 172.3 “ 403.8 “ 140.4 “ Page Five Slate. The call for slate products as a whole is only fair and much the same as it was at this time in April, although blackboard slate is now moving in better volume, and manufacturers say that the demand for this product is strong. The call for roofing slate is said nearly to equal the output, in spite of competition with substitute materials. Electrical slate is moving more slowly that it was a month ago. Prices of blackboard slate are slightly higher than they were at this time last month but quotations for all other products are unchanged. Stocks o f finished goods are from moderate to light and are either stationary or in creasing. Effects o f the prolonged strike in the slate industry are still being felt to some extent, though quarrymen reporting to us are operating their equipment, in sev eral cases, on full time schedules. The average rate is about 80 per cent of capacity, which is somewhat higher than it was a month ago. Paint. Paint manufacturers report that the call for their products is fairly good and stronger than it was in the preceding month or during May o f last year. Supplies o f both house and in terior paint are moving in substantial volume and orders for shellac and var nishes are more numerous than they were a month ago. Prices o f both finished goods and raw materials are, for the most part, firm, and there have been but few departures from quotations pre vailing four weeks ago. However, prices for linseed oil are somewhat higher. On May 23 this raw material was quoted at $1.06 per gallon in carload lots, cooperage basis, a gain o f 2 cents over the price listed on April 23. Stocks of finished goods and raw sup plies are moderate and stationary in spite o f the fact that manufacturers reporting to us in some instances are operating their plants at capacity. Indeed, the average rate of output is close to 80 per cent. Unfilled orders now on the books will keep reporting plants running on present schedules for an average period of from three to four weeks. Plumbing supplies. Plumbing supply dealers are experiencing a fairly good demand for their products, and accord ing to their reports, the market is some what more active than it was a month ago and in May, 1924. Manufacturers, however, find that the call is not as strong as it was in either of these two periods; indeed, at the present time it can scarcely be classified as fair. As con struction progresses a substantial volume o f orders is, of course, being received, but lower prices, resistance to present quotations, together with the widespread granting of concessions, have made buyers cautious and competition more than usually keen. Quotations for brass fixtures, cast iron soil pipe and fittings, vitreous ware and lead pipe, as well as those for several raw materials are said Page Six o f a month ago. Total unfilled orders are larger than they were at this time in April and the filling of these will in sure the present high rate of operations for an average period o f about seven weeks. The supply o f workers is plentiful. Stocks o f both finished building and fire bricks in the main are moderate and decreasing and this is also true of sup plies o f raw material now on hand at the kilns. Collections are generally fair. to be lower than they were a month ago. Manufacturers reporting to us say that their unfilled orders are not as large as they were at this time last month and do not extend as far into the future. At the present rate of production orders now on hand will insure operations for an average period of four weeks. The average rate of output is close to 70 per cent o f capacity. The supply of labor is adequate. Stocks of finished goods are fairly heavy and stationary, but supplies o f raw materials are moderate and de creasing. Collections are much the same as in April, but are not as prompt as they were a year ago. B rick s. Requirements for new con struction have brought a better demand for building bricks during the past four weeks, and manufacturers report that the call is fairly good. Cautious buying, however, continues to be much in evidence, and this situation, coupled with con siderable resistance to present prices, has caused weakness, and in some instances, a reduction in quotations for face, com mon, and special bricks. The use of substitute materials has reacted unfavor ably on the demand and prices for back and filling bricks. Refractory manufac turers say the call for fire bricks is only fair and scarcely as strong as it was a month or a year ago. Though in this branch of the industry, too, resistance to prices is being encountered, quotations are still much the same as those listed in April. The majority of orders for both building and fire bricks are for shipment either immediately or within sixty days. Many manufacturers are operating their plants at capacity and the average rate at which those reporting to us are running is close to 85 per cent of max imum output. This is higher than that Lumber. The lumber market has been spotty during the past month. Both manufacturers and dealers report that the demand has not fulfilled expectations, notwithstanding the large program o f new construction begun in the district. O f late, however, the call seems to be im proving and is now fair. Oak and maple flooring are moving fairly well and sub stantial sales o f hardwood for house trim have been made, but long-leaf yel low pine is in poor request. Prices in many instances are w eak; considerable resistance is being en countered and quotations for nearly all grades o f lumber are lower than they were a month ago. The somewhat heavy stocks accumulated by dealers a few months ago have been reduced to a great extent and for the most part are now stationary. Supplies of lum ber in the hands of reporting manufac turers also are stationary but in some instances are characterized as heavy. Un filled orders are somewhat larger than they were a month ago but they do not extend any further into the future. In fact, those already received will not keep the mills running on present schedules for longer than 60 days on the average. Those reporting to us are operating at an average rate of about 70 per cent o f capacity. The supply o f labor, in general, is ample. BUILDING PERMITS Philadelphia Federal Reserve District April, 1925 April, 1924 January 1 to April 30, inclusive 1925 No. Estimated cost in thousands No. Estimated cost in thousands Allentown............ Altoona................ Atlantic C ity. . . . Bethlehem........... Camden............... Easton................. Harrisburg........... Lancaster....... Philadelphia........ Reading............... Scranton.............. Trenton............... Wilkes-Barre....... Williamsport....... Wilmington......... York.................... 157 306 165 70 147 40 127 135 1,461 318 237 199 207 122 115 205 $841 411 680 259 1,418 157 604 621 21,111 926 1,732 1,003 621 145 485 356 174 326 161 55 138 61 168 168 1,582 380 238 305 213 200 132 320 $749 756 478 174 639 158 2,146 498 18,946 1,432 582 553 560 148 351 213 T otal............ 4,011 $31,370 4,621 $28,383 * Williamsport figures for January are not included. No. 334 644 587 152 482 105 287 282 4,750 840 605 620 489 349 308 433 11,267* Estimated cost in thousands $2,160 1,009 2,930 675 2,700 1,274 1,285 1,330 60,424 2,352 3,018 2,256 1,791 730 1,648 837 1924 No. 374 623 643 152 426 126 366 364 5,032 924 544 709 492 344 372 608 $86,419* 12,099* Estimated cost in thousands $2,001 1,248 2,095 403 1,813 454 3,368 2,404 50,519 2,566 1,428 1,898 1,267 345 1,609 744 $74,162* REAL ESTATE Although building operations in Phila delphia compare favorably in magnitude with those o f a year ago, reports from other cities in the district indicate a de cline in new residential construction as compared with last spring. The demand for houses selling at $6,000 or less is fully as heavy as it was a year ago, but the call for residences which sell at from $6,000 to $10,000 is only about 80 per cent as great as last spring. Those selling at more than $10,000 are moving slowly. Sales to development syndicates of farms adjoining suburbs, and of vacant lands within city limits have been numerous. New commercial construc tion, particularly in office buildings, is not as large as it was last spring, but the vol ume o f public works is slightly larger than it was a year ago. Houses and apartments renting for $75 or more exceed the demand and consequently many of these are vacant. There is also a small oversupply of houses and apartments which rent at from $50 to $75. The demand for dwellings renting at $50 or less, how ever, is good and there are practically no vacancies in this class. Office room is in plentiful supply, and considerable space is vacant in many office buildings. Mortgage funds, throughout the dis trict, are more plentiful than they were last spring. Most building and loan asso ciations still have more applications for mortgage loans than they can supply, but private funds for this purpose are larger than they were a year ago. The prevailing rate of interest for mortgages is 6 per cent, although some large com mercial mortgages have been obtained at 5^2 per cent and recently one large loan was made at 5J4 per cent. Mortgage brokers’ commission charges also show a downward trend from those of a year ago. Tw o per cent is now the rate charged for good first mortgages and from 3 to 5 per cent for desirable sec ond mortgages. IR O N A N D S T E E L The gradual adjustment between con sumption and production o f pig iron and steel is still plainly in evidence. A fur ther recession in the demand for most iron and steel products, accompanied by lower prices and an additional curtail ment of output summarizes the general situation during the past month through out practically the entire industry. Re ports received from firms in this district say that the call for pig iron is poor and that inquiries for third-quarter needs are bringing out very few new orders. The market for scrap steel improved recently and shipments of sheets and stampings to automobile interests are holding up well, although sales of hardware, plates and shapes, machinery, tools, track sup plies, and rails are no more substantial than they were a month ago. Demand for structural steel, however, continues to be fairly good, and the outlook is considered favorable. It has been difficult to maintain prices. In fact, in most instances, it has been impossible to do so, especially when orders of considerable size were involved. In consequence, quotations are weak and in most cases lower than they were a month ago. On May 23, Philadelphia 2X pig iron was quoted at $21.26 per ton, a decline of $1.25 since the corre sponding date in April. “ Iron Age’s” composite price of pig iron now stands at $19.63 per ton representing a decline of $2.89 since the last o f February. The present figure is within 50 cents o f the lowest point touched since April, 1922. On May 23, the composite price of finished steel showed a decline of $2 per ton from that published at the end of January. Production of pig iron and steel ingots decreased again in April and unfilled orders o f the United States Steel Cor poration also were smaller than at the end o f March, as will be seen in the following table. Iron foundries. Since monthly rec ords of iron foundry activities have been kept for a full year it is now possible for the first time to contrast the main operating features during April with those for the corresponding month of 1924. This has been done in the table below and the totals and percentages given therein are based on the reports o f 30 identical plants located in this district. Change from March Change from April, 1924 13,844 tons 0 6,328 * - 2.8% 1,071 “ -1 5 .3 “ + 0.2 “ 5,257 “ 3,831 “ + 5.0 “ 0 -1 0 .9 % + 6.6 “ -1 3 .8 “ - 9.3 “ Iron foundry operations April Capacity.............. Production.......... Malleable iron. Gray iron........ Jobbing........ For further mfr........... Shipments........... Value............... Unfilled orders. . . Value............... Raw stock: Pig iron............ Scrap................ Coke................ 1,426 “ 5,343 “ $831,043 5,693 tons $791,544 -1 0 .8 + 6.0 + 5.6 + 39.2 + 25.4 “ “ “ “ “ -2 4 .0 + 7.9 + 4.4 -1 3 .6 -2 9 .5 “ “ “ “ “ 9,330 tons - 3.2 “ + 8.2 “ 3,467 “ + 3.4 “ - 3.8 “ 2,153 “ - 2.5 “ - 2.4 “ C O AL In gross tons April March 3,258,958 3,587,524 3,564,247 4,198,520 4,446,568 4,863,564 Production—• Steel ingots................ Unfilled orders— U. S. Steel Corp........ O f the 61 blast furnaces located in this district 26 were in operation at the end of April, a loss of two from the number in blast on the last day of the preceding month. Since the first of the month many additional furnaces in various parts of the country have suspended operations and the “ Iron A ge” estimates the iron and steel industry as a whole to be run ning at approximately 70 per cent of capacity. Steel foundries. The data given in the table below were compiled from the reports o f 5 identical steel foundries in this district whose combined steel making capacity totals 6,050 tons per month. Production and unfilled orders both in value and tonnage were greater in April than in March. Shipments o f castings, however, declined. The greatest gain occurred in supplies of coke. Steel foundry operations April Change from March Capacity.......................... Production....................... Shipments........................ Value............................ Unfilled orders................ Value............................ Raw stock: Pig iron........................ Scrap............................ Coke............................. 6,050 tons 4,613 “ 2,941 “ $520,563 4,915 tons $1,478,103 0 + 5.4% -1 1 .1 “ - 2.8 “ + 9.4 “ + 13.0 “ 2,721 tons 7,487 “ 785 “ + 11.2 “ - 6.4 “ + 63.2 “ Anthracite. The anthracite market is noticeably more active than it was a month ago and the increase in demand for domestic sizes has been especially noteworthy. Stove grades are in best re quest but dealers have also taken sub stantial shipments o f egg and chestnut sizes. Although the call for steam coal has recently fallen off, it is still as strong as it was at this time last month. Both independent and company prices advanced during the month, the increases ranging from 5 to 20 cents per ton. In Philadelphia, on May 23, company quotations for stove coal were listed at from $8.85 to $9.00 per ton as compared with $8.75 to $8.90 on April 23. Some operators reporting to this bank have increased their operating schedules in conformity with the improved demand. Production has consequently increased in recent weeks and the weekly output is now greater than it was a year ago. Week ended April 2 5 ... . May 2. .. . May 9. . . . May 1 6 ... . In thousands of net tons 1925 1924 1,937 1,984 2,036 1,998 1,205 1,616 1,924 1,898 Per cent of change + 60.7 + 22.8 + 5.8 + 5.3 Bituminous. During the past month nc developments worthy o f note have occurred in the bituminous situation. Cool weather in the Middle West stimulated demand to some extent in the first part o f the month and the closing down of additional mines has helped materially to reduce distress lots that were so much in evidence a few months ago. Spot prices are somewhat stronger than they were Page Seven four weeks ago and on May 23, in Phila delphia, Pool 10 coal was quoted at from $1.60 to $1.85 per ton, an advance of 5 cents over the price listed at the close of April. Weekly output of bituminous is greater than it was a year ago, as will be seen in the accompanying table. Week ended April May May May In thousands of net tons 25 ... . 2. . . . 9. . . . 1 6 ... . 1925 1924 8,030 7,975 8,281 8,375 6,944 7,063 7,360 7,263 Per cent of change + + + + 15.6 12.9 12.5 15.3 COTTON Raw cotton . Buying of raw cotton, though somewhat less active than it was up to the middle of April, has continued in fair proportions despite the slackened production of cotton yarns and goods during the past four weeks. Spot quo tations, however, declined from 24.80 cents a pound on April 22 and 32.35 cents on May 22, last year, to 23.50 cents on May 22, 1925. Domestic consumption of cotton and linters, which totaled 641,519 bales dur ing last March, and 520,663 bales in April a year ago, rose in April to 656,140 bales, according to the figures com puted by the Bureau of the Census. Exports, on the other hand, dropped to 307,800 bales for the four weeks ended May 22 from 500,157 bales for the simi lar period of last month and 337,148 bales a year ago. Compared with March 31, mill and warehouse stocks, on April 30, were lower by 18.1 per cent, but they were 10.5 per cent higher on that date than on April 30, 1924. Reports con cerning the prospect for the new cotton crop vary, but in the main indications point to an increased yield. This is evi denced by the gain both in the acreage planted and in the use of fertilizers over the previous season. Planting, which was about ten days earlier than that of last year, is practically completed, the supply of labor and mules having been fairly ample. Weather conditions con tinue fairly satisfactory. Occasional re ports show the presence of boll weevil and grasshoppers but growers are pre pared to combat these pests. The table below presents the position of American cotton: American cotton (thousands of bales) Season ’24-25 Season ’23-24 Visible supply at end of previous season (July 31)............... 952 Crop in sight on May 22........................... 14,153 870 1,968 10,751 10,611 15,105 11,621 12,579 2,416 1,572 1,538 12,689 10,049 11,041 Total................. V is ib le supply on May 22................. W orld ’s takings to May 22................. Page Eight Season ’22-23 C otton yarns. New and duplicate business in cotton yarns has lagged be hind the volume reached in the previous month. Buying of weaving yarns dur ing the past four weeks has continued sporadic, quick delivery featuring nearly every order. Owing largely to a fairly good demand from makers of hosiery and underwear, sales o f knitting yarns have exceeded those for the correspond ing period last year. Coincident with the decline in prices of raw cotton, yarn quotations in this dis trict have dropped from 5 to 10 per cent during the month. Fairchild’s index number, which stood at 42.12 for the week ended April 18 and at 46.07 for the same week of a year ago, receded to 39.94 for the week ended May 23, the lowest level since July, 1923. Resistance to prices is still prevalent. T E X T IL E S ULLIOhS OF ACTIVE SPINDLES UMITCD STA TE S Co+tor — W orsted ...... W o o le n O.l 1920 1921 1922 1923 1924 1925 During' recent years the rate of activity in the cotton yarn industry has held a steadier level than that of woolen and worsted yarns. Largely because of the recent preference in demand for woolen goods, the total of active woolen spindles has lately exceeded that of the worsteds. Sources— Department of Commerce; Bureau of the Census C otton g ood s. Though sales of cotton goods during the past four weeks com pare favorably with those for the corre sponding period of last year, the volume of business has failed to reach that of the preceding month. While draperies, upholstery, tapes and trimmings have sold in fairly large quantities, buying of print cloths, sheetings, towelings, drills and colored fabrics has lagged some what. As a result, the average rate of production has decreased from 75 per cent o f capacity, last month, to about 60 per cent. Although the total of unfilled orders has also dropped slightly, they are sufficient to insure the continuance of present operations for about two months. Stocks of finished goods appear to be accumulating more rapidly than supplies of raw materials. Recessions in prices have occurred in nearly all varieties of print cloths, brown sheetings, pajama checks, drills and tickings. Fairchild’s index number of average quotations stood at 15.1 for the week ended May 23, as compared with 15.6 for the week ended April 25 and 16.1 a year ago. Resistance to prices continues strong. Collections are fair. WOOL R aw w ool. Sharp declines in prices and lessening in demand from woolen and worsted mills have been the main fea tures in the Philadelphia wool market during the past four weeks. Principally because of the prevailing lack of con fidence and hesitancy in placing orders for future needs, sales of fleece and terri tory wools have been greatly restricted. The call for tops and noils is also lag ging, but there is a fairly moderate ac tivity in mohair, carpet and pulled wools. Largely on account o f high prices asked by western growers, very little o f the new clip is being purchased by local dealers in spite o f the fact that their present supplies of wool are low. A c cording to the quarterly report of the Bureau o f the Census, stocks of wools in and afloat to the United States on March 31, 1925, amounted to 305,957,541 pounds as compared with 359,612,017 pounds on December 31, 1924, the de crease being about 15 per cent. These stocks comprised 34.1 per cent domestic and 65.9 per cent foreign wools. Imports for April totaled 28,911,280 pounds as against 35,791,120 pounds for March and 29,456,578 pounds for April last year. Much concern is manifested by Ameri can buyers here and abroad over the outcome o f the May auction sales at Lon don, which showed a break in quotations ranging from 10 to 30 per cent below the March levels. This development re sulted not only in heavy withdrawals of widely assorted wools, but also in the quick postponement o f subsequent sales until July next. Prices o f domestic wools dropped from 84.44 cents a pound on April 25 and 79.53 cents on May 22, last year, to 73.81 cents on May 22, according to Dun’s average of ninety-eight quotations. This de cline represents a drop of about 28 per cent from the peak prices reached last January. W o o le n and w orsted yarns. Resist ance to prices, curtailed production, and slackened demand reflect present condi tions in the yarn industry. Sales during the past thirty days in this district have been comparatively small, orders for prompt shipment still dominating the market. Weaving and knitting yarns show some activity, but worsted varieties continue in dull request. Chiefly because of the prevailing uncertainty in regard to the future o f the wool market and the lack o f new and duplicate orders, the average rate o f output dropped to about 60 per cent of capacity from that o f 75 per cent during the previous month. The consumption o f wool in this district, as shown by returns from 85 establishments, was 17.8 per cent smaller in April than in March. Stocks o f raw materials are slightly heavier than those o f finished yarns, but in the main supplies of both are from moderate to light. In sympathy with the raw wool mar ket, quotations for both Bradford weav ing, and French spun, yarns have gen erally declined from five to ten per cent since the middle of last April, whereas knitting yarns have maintained a fairly steady level, though recently, these, too, have shown a downward tendency. At present, prices of finished yarns and raw materials are weak, and buyers are now more determined to search the market for concessions than they were last month. Woolen and worsted goods. Business in piece goods is disappointing. Sales o f men’s wear fabrics, particularly such woolens as cassimeres, during the past four weeks have reached a slightly larger volume than have those of dress goods, but the total is below that of the previous month or a year ago. In worsted and fancies the situation is even less satisfactory. New and repeat orders continue to be limited chiefly to small lots calling for prompt delivery, though requests for shipment during July and August are not entirely wanting. Factors responsible for this dulness are said to be the fluctuation of wool prices, foreign competition and the change in the char acter of demand, as shown by the recent popularity o f woolens, which vary more widely in style and price than do worsted goods. As a result several reports show a considerable reduction in the output, although the average rate of production remains unchanged at about 65 per cent of capacity. Unfilled orders on hand will insure operation at this rate for an average period of about fifty days. Sup plies o f both finished goods and raw materials are moderately light and are generally decreasing, though instances of stock accumulation are also noted. Owing largely to the marked decline o f quotations for raw wool, prices of finished cloths are weak; in fact, in some cases recessions, ranging from 5 to 10 per cent, have occurred during the month. Resistance to present prices is widely prevalent. Collections are fair, though in a few instances a trifle slower than those o f a year ago. SIL K Raw silk. Comparative stability has characterized this market during the past four weeks. Barring occasional lapses, buying of raw silk here and abroad has continued fairly active. Though orders for prompt delivery still predominate, sales for shipment during July, August and September are not wanting. For the four months ended April 30, deliveries to mills increased about 28 per cent over that for the corresponding period o f last year and was 12 per cent in excess of two years ago. The table below gives figures compiled from reports o f the principal New York warehouses: Raw silk* (in bales) April, 1925 March, 1925 April, 1924 Stocks....................... Imports..................... Mill takings.............. 39,271 32,648 40,040 46,663 31,571 45,157 25,662 21,272 25,985 * Silk Association of America. Quotations for raw silk have main tained a steady level, along with the firm rate of exchange for Japanese yen. Kansai double-extra cracks sold at $6.65 a pound on May 22 as against $6.50 on April 21 and $6.00 a year ago. Thrown silk. During the greater part of the past four weeks, both commission and independent throwsters have expe rienced a considerable gain in the volume o f business over that o f the previous month and a year ago. Sales, mainly for quick delivery, have reached fair pro portions, the call for crepe, canton and georgette yarns having been exceptionally good. Spun silk yarns have also been in satisfactory request. Among buyers, manufacturers o f hosiery have been espe cially active. As a result, the average rate of production has remained at 90 per cent, and mills have sufficient amount of business on hand to insure operation at this rate for an average period of about fifty days. Several producers report that the supply of skilled labor is scarce and in some instances wages have ad vanced slightly. Stocks of both finished yarns and raw materials are from mod erate to light, and are stationary. Prices o f thrown silk remain the same as they were last month, organzine dou ble-extra crack selling at $7.50 a pound, as compared with $7.00 a pound last year. With few exceptions, resistance to prices is not pronounced. Collections are good and as a rule more prompt than they were a year ago. Silk g ood s. Up to M!ay first manu facturers of silk goods enjoyed an un usually high rate of activity, the volume of sales exceeding that of last year by about ten per cent. Retailers and whole salers bought freely such fabrics as georgettes and prints, together with broadcloths, flat crepes and printed crepes de chine. Tub silks and novelties have also been in good demand. Re cently, however, the market has been undergoing a slight seasonal relapse, ow ing to the opening of new fall lines. Consequently the amount of new busi ness in broad silks and ribbons has dropped slightly, but duplicate orders for summer goods are still coming in satis factorily, prompt delivery featuring most transactions. Save for printed gorgettes, which are not easily obtainable, supplies o f both finished goods and raw materials are moderately light, and are decreasing in most cases. Mills continue to work at about 85 per cent o f capacity, at which rate unfilled orders now on hand will insure operation for about two months on the average. A number of mills re port a slight scarcity o f skilled labor, but wages remain practically unchanged. Generally speaking, quotations are firm and unchanged from last month’s level. Although resistance to prices is still prev alent, it is by no means disturbing. H O S IE R Y Sales by hosiery manufacturers con tinue large. The demand from England for goods to arrive before the imposition o f the 33 1/3 per cent duty on July 1 has been an important feature in the seamless silk and rayon hosiery markets during the past month. Full-fashioned mills selling to the wholesale trade are sold ahead for a number of months and those selling to the retail trade have con tracted for their output for from four to six weeks. The demand is still for the light colors in chiffon and medium weights. Fancy hosiery, though still in request, is not such a feature in the or ders of the mills as during recent months; retail sales of it, however, ap pear to be large. Cancellations, which increased greatly in March, are said to have been heavy also in April. A large proportion o f these cancellations was be cause o f late delivery by the manu facturers. Prices o f hosiery and of raw materials are unchanged. Production, too, is the same in many of the mills in this dis trict though, because of some increases, the total will probably be slightly larger than it was last month. In the follow ing table, operations during March in 323 establishments in the United States are compared with those in February. Hosiery operations,* United States, in dozen pairs March % change from Feb Total production................ Full-fashioned, men........ Seamless, men................. Full-fashioned, women... Seamless, women............ Boys’ and misses’ ........... Children’s and infants’. . . Athletic and sport.......... Shipments............................ Finished stock, end of month Orders booked..................... Cancellations received. . . Unfilled orders, end of month 4,984,698 56,312 1,760,552 737,414 1,363,352 545,798 467,110 54,160 4,885,757 7,947,437 5,137,111 176,557 9,214,136 + 12.0 + 7.4 + 9.1 + 11.5 +20.8 + 5.5 + 6.1 + 42.2 +16.7 + 1.1 + 12.4 + 54.3 + 3.5 * Compiled by the Bureau of the Census. In this district 118 mills report that in April production increased 1.3 per cent and orders booked gained 38.6 per cent. Stocks of hosiery are moderate and generally unchanged. Page Nine UNDERWEAR Although business in underwear dur ing the past month has not been par ticularly active, a sufficient number of small orders has come to the manufac turers, which, added to those previously booked, will keep plants running at the same high rate of production as during March and April. Indeed some makers report that, as their product is sold to October 1, they have withdrawn from the market. Others are sold up to August and September. As is always the case, however, there are manufacturers whose orders insure operations of from 4 to 6 weeks only, but these are not numerous. Production by 155 identical establish ments in the United States in March was 548.994 dozens of heavy weight, and 727,781 dozens of light weight garments, an increase of 82,275 and 47.189 dozens respectively, as compared with February. Prices of underwear in most cases are unchanged and stocks are light and de creasing. Yarns are slightly lower. Wages are unchanged, and collections continue fair. all o f those reporting to us say that the demand is poor and less active than it was both a month and a year ago. Un filled orders are smaller than they were in April and do not extend as far into the future. The policy among retailers to buy only as needed from time to time is keenly felt by manufacturers, who re port that orders now taken are mostly for immediate delivery. Prices are fairly well maintained in most instances, al though quotations for desks, tables, plain overstuffed frames and dining room furniture are weak and lower than they were four weeks ago. Declines in prices of some grades of lumber and veneers are also to be noted. Stocks of finished goods are from moderate to heavy and are increasing to some extent. On the other hand, sup plies o f raw materials are moderate and stationary. At the present rate of pro duction unfilled orders will insure opera tions for an average period o f about one month. Manufacturers reporting to this bank are running their factories at an average rate of 76 per cent o f capacity, which is less than that o f a month ago. There is no shortage o f labor. being unusually large. Stocks o f heavy leathers decreased, but an increase was shown in those o f upper leathers. As the quantity o f sole leather and butts in piocess at the end o f March was con siderably larger than it was a month earlier, production o f these will likely show a further gain in the following months. Leather Chan ge in March, 1925, as compared Stocks— with February, 1925* Production end of month Backs, bends and sides. . . Belting butts..................... Offal, sole and belting. . . . Cattle side, upper............. Calf.................................... Goat and kid..................... Cabretta............................. + 9.1% + 95.6 “ + 1.6 “ - 2.8 “ + .1 “ + 10.8 “ - 1.5 “ - .3% -2 .8 “ -2 .9 “ + 2 .7 “ + 7 .6 “ + 3 .9 “ -2 .5 “ * Compiled from figures of the Bureau of the Census. The chart shows the large and almost steady decrease in the stocks of sole leather since the beginning o f 1922. F L O O R C O V E R IN G S At the auction sale of carpets and rugs by the Alexander Smith & Sons Carpet Co. during the week of May 4 prices were about 15 per cent lower than last autumn’s list. After the close of the auction the quotations named by this firm were, on the average, slightly higher than those of last November but were below prices made by them during December. The other manufacturers opened their lines at approximately last season’s quo tations ; Wiltons were unchanged, and Axminsters and velvets were but little higher. It is as yet too early to judge the success of the new season’s offerings, but sales so far have been scarcely fair; retailers are reported to have purchased but little. Tapestry carpets and rugs have met with poor request. Raw materials are lower, cotton and worsted yarns having declined most. The reduction in woolen yarns is not over 5 per cent, indeed some state that woolen yarn prices are unchanged. Carpet manufacturers are buying their supplies more closely in accordance with their immediate needs than is usual early in a season, at which time they often pur chase their supplies o f yarn for the en tire season. Linoleums and felt base goods are in fairly active request, but May is usually one of the peak selling seasons and this year large buying has failed to ma terialize. Prices are unchanged and some felt base manufacturers have curtailed their output somewhat. F U R N IT U R E Manufacturers o f furniture are having difficulty in moving stocks, and nearly Page Ten LEATHER Hides and skins. The market for hides has been quiet, tanners taking only sufficient for their immediate needs. Prices are unchanged and the attempts of sellers to secure advances because of the better quality offered have failed. Skins, too, have been inactive; some ex port orders for calf skins are reported, but domestic tanners have shown little interest. Sheep skins have declined and goat skins, except for descriptions suitable for lining and trimming stock, are quiet and generally lower in price. Stocks in the United States, with the exception of cattle hides, gained during March. Number of hides or skins* Cattle........................... Calf and kip................ Sheep and lam b.......... Goat and kid............... } March 31 Change during March 4,503,065 2,873,354 5,608,076 7,753,809 + + + 5.2% 4.9 “ 17.6 “ 4.5 “ * Compiled from figures of the Bureau of the Census. Leather. The demand for leather, as a whole, is poor and shows little if any improvement over that o f the previous month. However, calf and black kid in men’s weights, and colored kid both for the outside of shoes and for linings, have sold in fair volume, and patent leather continues in demand. Although prices, generally, are steady some grades o f sole, cattle side upper, calf, sheep and kid leathers have been shaded to effect im portant sales. The table shows that production dur ing March increased, the gain in butts It seems evident that the size of the stocks of sole leather has had a dom inant influence on prices, for, throughout recent years, prices have advanced as stocks were reduced, and vice versa. Sources— ■Dun’s Review; Bureau of the Census Shoes. Shoe factories are only fairly well supplied with orders, as usual at this season. Some reports state that new business taken is in good volume but more say that sales have fallen off and that trade is dull. Very few orders are for delivery later than August 1, and the great majority call for shipment be fore July 1. Materials most used in recent orders are patent leather, satin, and colored kid for women’s shoes; for girls and children these materials and cattle side leather are called for. Prices generally are unchanged, but in some cases are said to be weaker. Production in the United States dur ing March was 29,926,513 pairs, and for the first quarter o f the year, 83,404,011 pairs. This compares with 82,193,527 pairs in the same quarter o f 1924. In April the output in this district decreased, preliminary reports showing a falling off o f 4.3 per cent, and it is anticipated that production during May will show a fur ther decrease. Details o f April opera tions are given in the following table: Production of shoes,* Philadelphia Federal Reserve District (in thousands of pairs) April Boots and shoes, total............... 1,617 High and low cut (leather) total 1,564 128 Men’s ....................................... Boys’ and youths’ ................... 180 235 Women’s .................................. Misses’ and children’s ............ 572 451 Infants’ .................................... All other leather or part leather footwear............................... 53 Per cent change from March - 4.3 - 4.3 - 3.9 + 6.2 -1 4 .2 - 5.9 - 0.1 - 6.3 ♦Preliminary report compiled by the Bureau of the Census. RUBBER Crude rubber. Sharply advancing prices, reduction in stocks, and increased consumption by manufacturers of rubber products have characterized this market during the past thirty days. In April, American mill takings totaled about 80,640,000 pounds as against the average o f 72,800,000 for each of the three pre ceding months, according to the figures compiled by the Rubber Association of America. Imports, on the other hand, dropped during the same period from an average o f 67,729,464 pounds to 60,997,440 pounds. Up to May crude rubber production was estimated at about 60 per cent o f capacity, but since then this rate has increased about 5 per cent. Supplies here and abroad, however, are said to be light and are rapidly decreasing. Following a pronounced decline in prices during recent years, quotations lately have risen to new heights. First latex crepe was quoted at 64 cents a pound on May 22 as compared with the average o f 40 cents for January and 23.75 cents for May, 1924. Indeed, this is the greatest advance since 1918 when prices of the same grade o f rubber averaged 60.88 cents a pound. Rubber products. As a result o f the increased demand for automobiles and trucks, the total sales o f rubber tires and tubes show a considerable gain over the volume reached during the previous month. But, owing largely to unsea sonable weather conditions, business in mechanical rubber goods is only fair, there having been practically no improve ment since April 15. Consequently, mill output of these products now averages about 70 per cent of capacity, whereas the average rate o f production o f tires and tubes is about 85 per cent. Unfilled orders for the latter also greatly exceed those for mechanical rubber goods. Stocks o f both finished goods and raw materials range from moderate to light. Quotations for both rubber tires and mechanical goods have maintained firm levels during the past four weeks, and in several instances they have advanced from 5 to 15 per cent over those of the preceding month. This rise is in sym pathy with the upward trend of quota tions for crude rubber and milk of rub ber. Resistance to prices continues strong. Collections are fairly good. PAPER Although not as active as it was last month, the demand for paper is fair and about the same as in May, 1924. News print is selling in big volume, but the call for book, fine, wrapping and kraft papers is only fair. Toilet tissues and crepe towels are in moderate request. Building boards are selling in slightly greater volume than in April, but the call for boxboards is considerably less. Fibre specialties are in good demand. Building papers and envelopes are mov ing in fair volume, but cardboards and manilas are selling slowly. Converters o f paper are operating their factories at about 70 per cent of capacity, but most paper mills are operating at from 75 to 80 per cent. Forward buying is small and the majority of paper manufacturers have only from ten to twenty days’ busi ness booked. The prices o f most grades o f paper are unchanged, but boxboards are from 10 to 15 per cent lower than they were early in April. A slight softening in the price of ground wood pulp is re ported by a few manufacturers, but weakness is much more apparent in the prices o f chemical pulps. An increase in the stocks o f finished paper is re ported by a few mills, but, in most in stances, they are the same as they were a month ago. Production is slightly greater than it was last month, and cigar factories in this dis trict are now operating at an average o f about 80 per cent o f capacity. Domestic cigarettes are in good request and Turk ish cigarettes are also moving in fair volume. Factories making cigarettes are operating at close to 80 per cent o f capac ity. Practically all orders that manu facturers have on hand are for prompt shipment. Prices o f cigars and cigarettes are the same as they were a month ago. Tobacco leaf prices, too, show practically no change. Finished stocks at the factories are moderate and o f about the same size as last month, but supplies o f raw ma terials are somewhat smaller than they were in April. A G R IC U L T U R E Cool weather has somewhat retarded crop growth during the month, but the growing season is about up to normal in its development and much further ad vanced that it was a year ago. Prac tically all o f the early crops are now planted in the southern part o f the dis trict and in the northern counties about 80 per cent o f the planting is done. Hay crops are in excellent condition and the stands are fully normal, winter wheat and rye are about 90 per cent o f normal, and the earliest truck crop—asparagus— is yielding 90 per cent o f normal. The stands o f June peas are very good and a larger crop than that o f 1924 is fore cast. However, the outlook for a large fruit yield is not so good as it was last spring. A plentiful crop o f strawber ries is indicated, but the yield o f peaches in some counties will not be half as large as in 1924, although throughout the district a crop equal to 75 per cent of last year’s is expected. The yields of C IG A R S A N D C IG A R E T T E S Sources— Dun's Review; The Rubber Associa tion of America The demand for cigars is slightly greater than it was last month, and is much the same as in May, 1924. Class A and class C cigars are selling in good volume, but sales o f class B grades are not as large as they were a year ago. The livestock and grain industries have made a marked recovery since last sum m er, and they are now in better condition so far as prices are concerned than for several years past. The dairy industry has been stable for a year and a half. Sources—Interstate Milk Producers' Assoc.; Bureau of Labor Statistics; Depart ment of Agriculture Page Eleven plums and pears are indicated to be about 80 per cent and o f apples 85 per cent o f the 1924 production. Pastures in the dairying counties are in excellent condi tion and compare favorably with their condition last May. In the states of the Third Federal Re serve District less than 3 per cent of the area sown to winter wheat has been abandoned as compared with 22.5 per cent for the whole country, and the con dition o f the crop on May 1 was better than on April 1. The condition of the rye crop on May 1 was improved as compared with April 1 but was not as good as on May 1, 1924. A small crop, which is below the ten-year average, is indicated. The acreage o f early potatoes is slightly smaller than was planted last year, but planting is completed. The oats crop is wholly sown and about 80 per cent o f the corn is planted. T o matoes are being set out in the fields, and in New Jersey an increase in acreage o f 15 per cent over that of last year is reported. Canners contracting for to mato acreage in New Jersey report that their contracts call for only an 8 per cent increase in the 1925 acreage, as compared with that of 1924. The acreage o f green peas for market in New Jersey is 6 per cent larger than that o f last year. Three-fourths o f the steers which have been fattened on farms o f this district have been sent to market, and the bal ance will be shipped at the close o f the month or early in June. Their number, however, was smaller than last year, because of the high price and the scar city o f corn during the fall and winter. Dairy herds are in excellent condition and up to normal for May. Swine are in good demand, prices are higher than they were last spring, and the number o f hogs in this district is smaller than it was last spring. BUSINESS INDICATORS Philadelphia Federal Reserve District Latest figure compared with The following data refer to the Third Federal Reserve District except where otherwise noted United States.............. Pennsylvania.............. New Jersey................. Year ago Previous month Retail trade— net salesf (157 stores)................................... Department stores (66)..................................................... Apparel stores (44)............................................................ Shoe stores (25).................................................................. Credit stores (22)............................................................... $26,026,000 $20,177,000 $3,958,000 $585,000 $1,306,000 + 9.1% + 8.3 “ + 12.3 “ + 23.5 “ + 6.3 “ + Wholesale trade—net sales (154 firms)............................... Boots and shoes (12 firms)................................................ Drugs (14 firms)................................................................. Drygoods (18 firms).......................................................... Electrical supplies (7 firms).............................................. Groceries (51 firms)........................................................... Hardware (28 firms).......................................................... Jewelry (12 firms).............................................................. Paper (12 firms)................................................................. $10,499,465 $420,293 $1,608,951 $968,762 $583,956 $3,488,083 $2,033,459 $309,245 $1,086,716 - 4.4 “ -1 2 .4 “ - 3 .1 “ -1 4 .6 “ - 0.8 “ - 3.4 “ + 2.0 “ - 2.5 “ - 8.7 “ - 1.8 -1 2 .6 + 5.4 - 6.3 - 2.1 - 2.2 + 0.3 - 2.8 - 4.4 2.8%. 3.2 “ 2.4 “ 0.2 “• 1.2 “ *■ “ “ “ “ “ “ “ “ Production: prs. 1,617,254 tons 324,199 doz. prs. 1,152,631 6,328 Iron castings (39 foundries).............................................. tons tons 4,613 3,337,000 Cement............................................................................... bbls. 7,472,000 Anthracite........................................................................... tons lbs. 6,827,761 Active cotton spindle hours (Pennsylvania and New Jersey) 133,814,810 Pig iron............................................................................... Distribution: Freight car loadings (Allegheny district— weekly average) Tonnage 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).............. 192,159 3,146,937 3,206,095 4,384,050 12,390,000 tons bus. lbs. gals. Financial: Loans, discounts and investments of member banks (weekly average)............................................................ Bills discounted held by Federal Reserve Bank of Phila delphia (daily average).................................................. Acceptances executed (11 banks for month ended 10th of following month)........................................................ Bankers’ acceptances sales (5 dealers—weekly average for period ended middle following month) ................ Commercial paper sales (6 dealers).................................. Savings deposits (99 banks).............................................. - 4.3 -1 1 .3 + 1.3 - 2.8 + 5.4 + 9.3 + 5.9 —17 8 + 2.4 “ “ “ “ “ “ “ “ “ + 29.2 “ + 0.7 - 1.4 -1 3 .7 -4 9 .0 + 22.3 “ “ “ “ “ + 5.4 + 8.4 -1 7 .0 -2 5 .3 -1 3 .5 - 7.5 “ -1 0 .9 “ + 10.4 “ + 9.7 “ “ “ “ “ “ + 14.7 “ $1,077,000,000 + 0.9 “ $38,170,000 + 2.8 “ - $3,309,000 -2 2 .7 “ + 6 .8 “ $2,066,000 $7,423,500 $565,344 + 41.4 “ - 2 .5 “ - 0.1 “ +271.6 “ + 9.2 “ + 7.0 “ General: Debits (18 cities)................................................................ Commercial failures........................................................... Commercial failures— liabilities........................................ Building permits (16 cities)............................................... Building contracts awarded (Philadelphia district)........ Employment— 1,003 plants in Pennsylvania, New Jer sey and Delaware: $1,994,984,000 96 $1,605,999 $31,369,637 $59,795,100 Sales of life insurance (Pennsylvania, New Jersey and Delaware)........................................................................ $89,937,000 376,279 $25.94 -1 4 .1 + 6 5 .5 - 2.0 - 0.9 - 7.9 - “ “ “ “ “ 5.9 “ - 7.2 + 5 2 .4 + 3.7 + 1 0 .5 + 2 9 .2 “ “ “ “ “ 1.0 “ 2.1 “ + 4.1 “ + 9.7 “ * Bureau of Census preliminary figures, t Estimated. Winter wheat Estimate of production (U. S. Dept, of Agriculture) from May 1 condition (000’s omitted) April, 1925 Condition, % normal May 1, 1925 May 1, 1924 77.0 85 93 93 84.8 85 87 88 Rye Production, bushels Condition, % normal Forecast Harvested May 1, 1924 1925 1925 444,833 21,085 1,585 1,841 590,037 19,850 1,369 1,616 86.8 91 93 May 1, 1924 88.2 90 90 Production, bushels Forecast Harvested 1924 1925 57,968 3,453 1,166 63,446 3,264 1,138 COMPILED AS OF MAY 23, 1925 fr . --------------------- -..— ■ ■ = = = = = = ..-................ «f This business review will be sent regularly without charge to any address upon request P Page Twelve
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