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B US I NE S S A N D F I N A N C I A L
CONDITIONS
IN THE
THIRD FEDERAL
PHILADELPHIA
RESERVE DISTRICT
MARCH 1, 1922
By RICHARD L. AUSTIN, Federal Reserve Agent and Chairman
FEDERAL RESERVE BANK of PHILADELPHIA
GENERAL SUMMARY
CONTENTS
almost exclusively to orders for immediate ship
ment. There seems to be a lack of confidence in
summary of Federal Reserve Board on business conditions
throughout the United States, see pink slip inserted in this report,
the near future.
A feeling of uncertainty per
n i
P age
vades most markets, a feeling that has manifested
adding materials ............................................................................ 10
itself in the absence of orders for autumn mer
^heimcals ............................................................................................ 25
chandise, although in a number of industries this
E°a‘> anthracite .................................................................................. 13
h°al, bituminous ................................................................................ 14
...................................................................................................... 14
is the buying season for fall goods. Sales of iron
commercial paper .............................................................................. 6
cotton .................................................................................................. 15
and steel products have not increased, although the
Cotton y a r n s ........................................................................................ 16
number of inquiries and orders received has been
M etrical supplies .............................................................................. 11
Financial conditions .......................................................................... 5
slightly larger. W hat buying there is is mainly to
i l°or coverings .................................................................................. 21
oreign exchange .............................................................................. 7
furniture . . . .
27
satisfy immediate needs and to replenish depleted
general summary .............................................................................. 1
stocks, and the few firms that have reported better
groceries, wholesale .......................................................................... 28
hardware, w h olesale.......................................................................... 13
conditions state that the improvement is only
nides and s k in s .................................................................................. 23
llosiery ................................................................................................ 20
nominal. The volume of buying by railroads has not
; ron and s tt e e ll...................................................................................... 9
U s e e ....................................................................................................................................................
Leathe
22
reached expectations, and industrials too have shown
Office appliances' ’.’ .’ .'.’.’ .’ .'.’.'.'.’ .'.’.'.'.’.’ .'.’.'.’ . ' . ' !
28
"am
t
but little interest in the market. Prices have been
11
Aper
23
weak, and the appearance of any orders of consider
LfPer boxes ............................................................................................. 25
plumbing supplies ..................................................................................... 12
able size has drawn concessions, as competition in the
................................................... £
industry is very keen. The uncertainty of prices and
Sfv'ngs deposits....................................................................................... 7
slip................................................................................................................... 2
...................................................................... 17
3
the fact that the expected freight rate reductions have
Silk yams .................................................................. 17
c—
not been put into effect are deterrents to sustained
ToKfps's business conditions............................................................. 2
buying. There is no assurance that the anticipated
lowering- of rates will not be made within a short
> raw .................................................................................................... 19
Wnni anc^ worsted cloth .................................................................... 18
time, and buyers are therefore waiting until it either
en and worsted y a r n s ...................................................................... 18
is made or is definitely determined to be impossible
O widespread change in the general business at present.
The coal industry is one of the few that have re
situation has occurred during February, and
ceived a larger volume of business during the past
,
the inactivity that has characterized conmonth, but the improvement has been only slight.
ons in this district since early November has
The
°ntinued. Although reports from a few industries severe weather was wholly responsible for the
hu 1Ca^ a s^ lt: iimprovement, the total volume of increased sales of domestic sizes of anthracite, and
‘ C
s,ness being transacted is small, and is confined the improvement was entirely in the number and not
N
SYNOPSIS OF BUSINESS CONDITIONS
THIRD FEDERAL RESERVE DISTRICT
B
u sin e ss
D
P
e m an d
r ic es
F
in ish e d
stocks
R
a w
m a te r ia l
m erch an d ise
or
situ a tio n
C
ollections
Bricks
Poor
Steady
Large
Sufficient
Poor
Chemicals
Poor
Stable
Decreasing
Slightly higher
Fair
Cigars
Poor
A little lower
Large
Slightly lower
Fair
Coal, anthracite
Fair
Lower
Heavy but decreasing
Poor
Fair
Stable
Medium
Fair
Poor
Lower
Heavy
Fair
Firm
Medium
Cotton yarns
Poor
Lower
Increasing
Plentiful
Fair
Electrical supplies
Fair
Lower
Large
Plentiful
Poor to fair
Floor coverings
Good
Unchanged
Small
Higher
Good
Furniture
Poor
Lower
Decreasing
Sufficient
Poor
Groceries
Poor
Variable
Medium
Plentiful
Poor
Hardware
Fair
Slightly lower
Light
Lower
Fair
Hosiery
Fair to poor
Firm
Light
Lower
Fair
Iron and steel
Poor
Lower
Light
Unchanged
Fair
Leather
Fair
Unchanged
Moderately heavy
Unchanged
Good
Lumber
Fair
Firm
Heavy on low grades
Plentiful
Poor
Office appliances
Fair
Lower
Plentiful
Unchanged
Fair
Paint
Poor
Firm
Plentiful
Plentiful
Poor
Paper
Fair
Firm
Plentiful
Plentiful
Poor
Paper boxes
Fair
Variable
Medium
Plentiful
Poor
Plumbing supplies
Poor
Lower
Large
Plentiful
Fair
Rubber
Fair
Lower
Medium
Plentiful
Fair
Shoes
Good
Unchanged
Medium
Plentiful
Fair
Silk goods
Fair to poor
Lower
Light
Unchanged
Fair
Tobacco
Slightly better Lower
Large
Plentiful
Fair
Underwear, heavy weight
Fair
Unchanged
Light
Lower
Fair
Fair
Unchanged
Medium
Lower
Fair
Decreasing
Fair
Decreasing
Fair
Decreasing
Good
Coal, bituminous
Coke
Cotton goods
Underwear, light weight
Wool and worsted goods
Fair to poor
Variable
Medium
Wool and worsted yarns
Fair to poor
Higher
Medium
Wool, raw
Good
Higher
2
Plentiful
Fair
Fair
ln tbe size of orders. Consumers have not laid in
supplies to carry them over the coal using period,
since it is known that stocks are still large. Dealers
too have been purchasing cautiously, being desirous
of entering the new coal year with as light stocks as
possible. Production of anthracite has been well
maintained, however, with a resultant accumulation
ft the mines. O f special significance is the fact that
m a number of instances retail coal prices have been
reduced. Sales of bituminous coal have been larger,
m anticipation of a strike on April i. Public utility
corporations are laying in reserves, and the railroads
are stocking ahead. Industrial firms have not reacted
t° the strike talk, however, and there is little increase
m buying from this source. Bituminous coal prices
continue to be weak, in spite of the increased demand.
There is an improved sentiment in the building
fnd construction industries. The number of permits
lssued has increased steadily, their value in the Third
Federal Reserve District in January being $6,878,523> as compared with $4,564,907 in December.
Ab°ut one-half of the permits recently issued call
**°r moderate priced dwellings. In recent weeks, a
ar£e number of contracts have been let, and only the
advent of open weather is needed for the beginning
actual construction. In view of the contemplated
wilding activity, manufacturers of materials have
deceived an increase number of inquiries, although
ut few orders have as yet been placed.
N ° important developments have occurred in the
textile and allied industries. The improvement in
s°me lines and the falling off of activity in others
ave been so small as to cause no appreciable change,
he call for some lines of cotton goods, notably
£lnghams and fancy goods for women’s wear, has
een somewhat better, but the demand for cotton
®°°ds as a whole has not increased. Cotton yarns,
?» have not sold well, prices have declined, and
spmners have reduced operations. A s a result of
fhese conditions, sales of raw cotton to manufacturers
!n
district have been small. It is reported,
°Wever, that foreign buying has increased. The
aw wool market, on the other hand, retains much
fis activity of the past two months, although
speculative sales among dealers have fallen off conha era^^‘ The demand for the finer grades of wool
exceeded the supply, with the result that prices
ve continued to rise. For carpet wools, too, the
a has been good, but sales of the medium grades
aa^e decreased slightly. The demand for woolen
£j-C ^
v°i'sted yarns has also declined since last month.
°siery manufacturers have bought knitting yarns
3
in fairly large quantities, but with this exception
sales of yarn, both of knitting and weaving, have
been somewhat smaller. In the cloth market there
has been a strong demand for cheap tweeds, and sales
of goods for women’s wear have been fa ir ; but there
has been little call for materials used in men’s wear.
A fair amount of business for fall delivery was
booked immediately after the regular openings of the
American Woolen Company, in January, but since
that time few orders have been received and practi
cally all business is for spot delivery. The carpet and
rug industry still reports considerable activity. The
demand for the better grades of Wiltons has been
good, and a fair volume of business in the medium
grades of rugs has been transacted. Prices of raw
silk have fluctuated sufficiently during the month to
engender a feeling of uncertainty, and this has served
to check the demand. Sales of silk yarns have fallen
off, and orders for silk goods have been small. This
is largely attributable to the fact that recent retail silk
sales have failed to stimulate the demand. A few large
manufacturers have received a good volume of spring
business, but the market generally has been quiet.
Owing to the recent fluctations in the prices of raw
silk, wool, and cotton, orders for hosiery have fallen
off decidedly. Full-fashioned hosiery manufacturers
have been almost unanimous in their statements that
little new business has been booked, but that sufficient
orders are still unfilled to maintain present operations
for some time. For seamless silk hosiery the demand
has been small, for cotton hosiery poor, and sales of
heather hosiery have fallen off. The underwear mar
ket has been very quiet. A few repeat orders for
spring delivery have been received, but little new
business in heavy weights for fall has been booked.
The jobbing trade is giving but little attention to
underwear at this time, and manufacturers selling
directly to the retail trade have received the greater
portion of the small volume of business that has been
transacted.
The improvement in the shoe industry, which was
first noted about the middle of January, has con
tinued, and shoe factories in this district are busier
than at any time since last spring. Interest is being
focused mainly on better grade two-tone sport shoes
for women, and for these goods there is a seller’s
market. Medium grades are also in favor, and con
ditions generally, although by no means normal, are
distinctly favorable as compared with those in other
industries. The leather markets have maintained
much of the activity which they displayed during
January, but have not improved to any extent. There
has been a slightly better demand for calf skins, espe
cially of the No. i grade. The call for white glazed
calf skin has been especially good, and glazed kid of
medium and lower grades has sold in slightly better
volume. The demand for sole leather, however, has
fallen off, owing in large part to the fact that the new
sport styles call for rubber soles. Although a fair
amount of sole leather has been sold, tanners have
been disappointed at the low prices obtained and are
curtailing production. Fewer skins are being put
into process, but the reduction in output will not be
apparent for several months. O f distinct encourage
ment to the leather industry is the continued im
provement in the export demand for both upper and
sole leathers. Belting leather, however, is still in
scant request, and the same is true of harness leathers.
"Flie hide and skin markets are in a healthy condition,
the demand for both being fair; prices are well
maintained, and excess stocks have been disposed of.
There has also been a slight betterment in the de
mand for paper, the improvement manifesting itself
not in size of orders but in their increased number.
The volume of orders being received by fine paper
manufacturers is greater than that at this time last
year. Production, however, has not been increased,
present operating schedules being approximately 60
per cent of capacity. No change has occurred in the
demand for paper boxes. Recent sales are about
70 per cent of normal for this time of the year.
Although a few large cigar factories in the district
are exceptionally busy, the cigar industry in general
is very dull, sales having fallen off materially during
the past four weeks. A s a result, there is little activity
in the leaf tobacco market, and sales are few in
number and small in size.
Retail trade has slumped considerably since the
first of the year. Sales normally decline during Jan
uary and February, but the falling off this year has
been greater than usual. The sales in the Third
Federal Reserve District during January were 12.2
per cent less than those of January, 1921, and recent
reports indicate that the decline during February
will also be large.
This is true despite the fact
that stores have conducted extensively advertised
reductions sales, and is a result no doubt of the fact
that more serviceable and useful gifts were purchased
during the Christmas season of 1921 than had been
the case for many years. Owing to this reduced busi
ness, buyers for retail stores have not been in the
markets, and wholesale trade in general has been
dull. This in turn accounts for the fact that manu
facturers as a whole have thus far received but a
4
small proportion of the orders for spring delivery,
which under normal conditions would long since have
been on their books. A s a result, operations in all
industries are considerably below normal, and in
several instances are less than 30 per cent of capacity«
A reflection of the low rate of operations is found
in the employment reports of the Pennsylvania State
Department of Labor. That bureau estimated the
unemployed in the six cities of Altoona, Harrisburg,
Johnstown, Philadelphia, Scranton and Williams
port, on February 15, at 234,275, a larger number
for these cities than at any time during 1921. And
the bureau’s report indicates also that there has been
little change in industrial activity since the first of
the year. The number of unemployed on January 1
was 243,293; on January 15, 234,910; on February
1, 232,960; and on February 15, 234,275. Reports
received by this bank from other sections of the dis
trict also indicate that unemployment is very preva
lent, many manufacturers stating that the number of
applications received has been exceptionally large.
Statistics indicative of underlying conditions are
conflicting. The number of commercial failures in
the United States has continued to rise rapidly.
R. G. Dun & Company report 2,723 failures in Jan
uary as against 2,444 in December. The average
liabilities in January, however, were $27,100, and in
December, $35,802. In the Third Federal Reserve
District there were 12 more failures in January than
in December, but the total liabilities were $1,614,818
less. A s pointed out last month, this increase in the
number of failures is not necessarily an unfavorable
sign, for in the past, with the approach of the end of
a period of business depression, the number of
failures has usually increased, with a decrease, how
ever, in their average liabilities. The volume of new
securities issued has fallen off, the figures in Janu
ary being $209,661,500, as compared with $318,'
335,100 in December. Debits to individual accounts,
too, have declined, the average for the four-weeks
period ending February 15, being $7,704,269,000,
as against $8,385,623,000, the average for the like
period ending January 18. And the unfilled orders
of the United States Steel Corporation on January
31 were 4,241,678 tons, a decrease of 26,736 tons as
compared with those of December 31. The figure
on December 31, 1921, was 7,573,164.
On the other hand, car loading figures have shown
a consistent gain since the first of the year. Over
10,000 more cars were loaded in the week ending
February 4, than in the previous week, this being
largely attributable to the increased shipments of coal
FINANCIAL CONDITIONS
The issue of United States Treasury notes bearlng 4 JJ per cent interest attracted funds from the
markets for commercial paper and bankers’ acceptances, and dealers in these classes of paper have been
compelled to accept rates on their bills which are a
dtle higher than those of a month ago. Sales of
commercial paper at yields of less than 5 per cent are
n°\v quite exceptional, where as in January 4^4 per
cent was a common rate, and instances were recorded
sales on a 4*4 per cent basis. In the case of
ar>kers’ acceptances, another factor, the higher average rates for call money, also has been operative.
ealers’ offerings are made at 4 and 4% per cent,
and bids by purchasers are usually at 4}{ per cent.
n January, offerings were made at as low as 3JJ
Per cent. The only Federal Reserve bank to make
at|y change in its discount rate was that of Cleveland,
p
lowered its rate from 5 to 4^2 per cent early in
oruary.
This action, however, is without parq U ar significance, as it only served to bring the
eveland bank into line with neighboring Reserve
anks in the Middle Atlantic and New England
states.
Apart from the fact that the new issues of Treasy notes have not yet been thoroughly distributed
y the banks, there is little warrant to be found in the
P T ng situation for the tightening of money rates.
Urmg the period from January 18 to February 15,
^ e holdings of bills by the Federal Reserve banks
reased from $1,009,000,000 to $864,000,000, or
* 5,000,000. But as this was offset by an increase
se . 5^>°oo,ooo in the holdings of United States
- .ritles, the earning assets on the later date show
mcrease of $13,000,000. Federal Reserve note
ooq11 a^ °n ^ecreasecl from $2,230,000,000 to $2,170,,0o° ; total deposits increased from $1,785,000,-
000 to $1,857,000,000; and total reserves increased
from $3,052,000,000 to $3,076,000,000.
The net
result is reflected in a rise in the reserve ratio from
76.0 per cent to 76.4 per cent. The Federal Reserve
banks that serve industrial sections— Boston, New
York and Philadelphia— show declines in their re
serve ratios. Cleveland, however, reports an increase.
All of the other Federal Reserve districts, with the
exception of San Francisco, report a distinct im
provement in their reserve position, the reserve ratio
having increased more than 5 per cent in each in
stance. In the case of Atlanta there was an increase
from 48.7 to 65.0 per cent, or 16.3 per cent. This
later group of Reserve banks, it will be noted, serves
agricultural territory.
The statements of the reporting member banks in
the principal cities of the country are always one
week later than the Federal Reserve statement. Our
comparisons, therefore, will be for the period from
January n to February 8. Excluding rediscounts
with the Federal Reserve banks, their holdings of
loans and discounts decreased from $ 10,805,000,000
to $10,666,000,000, or $139,000,000 ; United States
securities held increased $196,000,000; and other
securities held decreased $4,000,000. The total hold-
Fe d e r a l
R
S
eserve
y st e m
G l DERATIONS
n U tf
lL O
lilL O
Lf
OF
CD K
LLA
D LA !
OL R
3500
3000
3500
Fedeeal Pesove Ntes mC cu arioN
o
ir l
y
\
\
i
<ooo/V>°°^ 4% \ \ /
'
v y
°°T otal B ills O
_9_/ v
- x
2500
T
otal Peseeve^
z
20
00
... M D
et eposits
‘
\
y. -- ____ _
_
_
\
20
00
J
V s ,
1500
3000
25ft)
J
_____ \
111 anticipation of a strike on April i. Then too, the
Bradstreet and R. G. Dun wholesale commodity
PJice index numbers have continued to rise, the
increase of the former during January being .4 per
cent, and of the latter .3 per cent. However, the
bureau of Labor index number, which is based on the
Puces of 328 commodities, fell during January from
J49 to 148, the latter being the same number as
during June and July, 1921, when the low point in
the decline of commodity prices was reached. W ith
tbe exception of farm products which increased 2.75
Per cent in price during the month, all of the com
modity groups which make up the index declined.
X
1500
)
10 0
0
\______ _ 10 0
0
O
500
500
0
0
1920
1921
Scuscc - Fed Pes . Bamk of Phila.
5
1922
mgs of loans, discounts, and investments by these
member banks, represent a net increase of $53,000,000, or .3 per cent, for the month. Total deposits
also gained, from $13,535,000,000
to $13,690,000,000.
Since the beginning of the year the course of the
security markets, though generally upward, has been
more or less fluctuating. In the bond market, the
discussion of the bonus bill in Congress has had an
adverse effect upon the prices of Liberty bonds.
Sales of securities from January 1 to February 15
show that the number of shares sold this year was 8
per cent in excess of those sold in the same period of
1921; sales of Liberty bonds were 6 per cent greater;
and sales of other bonds almost doubled, being 83
per cent greater. In the table which follows, are
given the weekly security quotations since the first
of the year.
Rates vary from 4^4 to 53/4 per cent, according to
the desirability of the offering.
B ankers ' A cceptances
In the earlier part of the past month bankers’ ac
ceptances were offered at rates which were quite gen
erally below 4 per cent. Stiffening in call money
rates, and the issue of Treasury notes bearing 4^4
per cent made inroads into the supply of funds avail
able for investment in acceptances yielding such low
rates of return, and dealers have found it necessary
to make their offerings at 4 and 434 per cent for the
best names and short maturities. They now find that
their sales must be made after a preliminary period
of bargaining and it has not been possible to adhere
too firmly to the offering rates.
One dealer reports that the demand for acceptances
follows quite closely the rate for call money, 30-day
maturities being in favor on declines in call money,
20 industrial 20 railroad
4 Liberty
shares
shares
40 bonds
bonds
while at other times 90-day bills find the largest
January 4 ............
79.61
73.91
84.34
96.87
market. The demand at this time is moderate, and
January 11...........
80.03
74.01
85.16
98.17
January 18 ..........
82.33
76.58
86.14
97.87
the supply generally is ample, with the possible ex
January 25 ..........
82.57
75.30
86.22
97.39
ception of a scarcity of some of the best bills of short
February 1 ..........
81.68
74.68
85.78
96.80
February 8 ..........
82.74
76.60
86.09
96.37
maturities.
February 15.........
84.09
77.49
86.05
97.10
The reports of 12 accepting banks in the Third
Federal Reserve District disclose an increase in the
C ommercial P aper
amount of bills accepted during the month ending
Rates for commercial paper have advanced to the February 10, but a decrease in the amount outstand
extent that the market may be said to be established ing on that date. Acceptances executed during the
on a 5 per cent basis. Some sales are being made at months ending on the dates given were as follow s:
less than this figure, but such transactions are few February 10— $5,007,000; January— $4,445,000;
in number and are for exceptionally high grade paper December 10— $3,564,000; November— $6,325,000.
of short maturity, usually payable in about three Oustanding acceptances on those dates w ere: Febru
months. The principal reasons for the advanced ary 10— $10,149,000; January 10— $10,784,000;
quotations are, first, the offering by the United December 10— $11,231,000; November 10— $ n ,“
824,000.
States Government of three-year notes bearing
The Federal Reserve Bank of Philadelphia purper cent— a rate higher than many anticipated; and
second, the increase in the rate for call money in chased $8,923,000 of bankers’ acceptances during
January, which were divided according to types of
New York.
The sales of paper in the Philadelphia district have transactions covered in this w ay: dollar exchange,
been small neither city nor country institutions buy 9.0 per cent; warehousing, 7.9 per cent; domestic
ing in large volume. In some cases the lack of in shipments, 19.7 per cent; imports, 31.7 per cent;
ventory figures, as of January i, has been given as exports, 31.7 per cent. Imports of coffee, hides and
a reason for not purchasing certain paper that has sugar, the domestic shipment of cotton, and export of
been offered. It may be pointed out that in distinct cotton and grain figured very largely in the bills that
contrast to conditions here, there has been increased were purchased. This list seems to be typical of the
activity in the Chicago district and a great improve commodities covered in bills executed recently, al
ment on the Pacific Coast. San Francisco, Seattle, though we may add to it, general merchandise, oil,
and Portland, Oregon, banks have bought freely. and silk.
Offering rates for prime bills up to 90 days during
New Y ork institutions are perhaps not such heavy
purchasers as they were last month, but are neverthe the past month have fluctuated from 3^4 to 4J6, an(^
bid rates at from 3J6 to 4 >4 per cent.
less taking a large amount of commercial paper.
6
proved somewhat,— marks advancing from .48 cents
on January 23 to .52 cents on February 9. South
S avings D eposits
To supplement the figures on savings deposits
which 24 savings banks in this district have been
leP°rting to us regularly each month, we have added
the reports of 54 commercial banks and trust com
panies. Figures for individual cities have been
^olated in cases where the number of reporting banks
warranted this action, and it is expected that in our
next report this list of cities will be larger.
t during January Savings deposits in 69 banks out
side of Philadelphia increased from $160,468,000 to
$162,859,000, or 1.3 per cent, and in 9 Philadelphia
banks the gain was from $266,160,000 to $267,913,°°o, or .6 per cent. An interesting feature of the
tabulation given below is the large gains in deposits
during the year from February 1, 1921 to February
’ J922 in Scranton and Wilkes-Barre, which are
Clties in the midst of the anthracite coal belt.
Number of
reporting
banks
Altoona
Chester
Johnstown .
f,Cranton ...
& «*ton..........
ilkes-Barre ...................
hamsport ....................
5
Per cent increase or decrease
compared with
Jan. 1, 1922
Feb. 1, 1921
er outside banks.........
26
+1.7%
+ -5 “
— .3“
— .3"
+1.3 “
+3.8 “
+ .3“
+3.6 “
+1.6 “
Al] banks outside Phila
delphia ...................
anks in Philadelphia..
69
9
+1.3%
+ -6“
+ 4.7%
+ .8 “
All banks in district..
78
+ -9%
+ 2.4%
5
6
7
6
5
4
5
+ -1%
—14.2 “
— 3.7 “
+13.2 “
— 2.4 “
+16.4 “
+ 1.6“
— .1 “
+ 8.2 “
FOREIGN EXCHANGE
The foreign exchanges, generally, have again disayed remarkable strength during the past month,
was especially strong, reaching $4.37 on
ruary 9> the highest value recorded since the
fra^ ^rea* decline in 1919. French and Belgian
p ncs and Italian lire also shared in the advance,—
Qre^ch currency, for instance, rising from 8.03 cents
cu ^ani;lary 23 to 8.64 cents on February 9. The
eucies of the former neutrals were also especially
Swiss francs being quoted above the gold par
q ln£ die entire month, and Swedish kronen being
0 * ec* at 26.17 cents on February 9,— a discount of
to jL Sli£htly more than 2 per cent. This is believed
gove ^Ue t0
announced intention of the Swedish
riaternrnent to resume gold payments at an early
Even the weaker European currencies im
7
RETAIL TRADE
America currencies also were strong, but the Asiatic
rates were exceptions to the general trend, the H ong
February is always a month of low sales in the
kong dollar falling from 54.67 cents on January 23 retail trade, and this year it has proved to be no ex
to 54.17 cents on February 9- The accompanying ception to the rule. In fact, according to advance
table show's the changes in exchange rates during the reports, sales have run behind those of a year ago.
Since Christmas, there has been a decided decrease
past month.
A fter the latter date, however, the advance w
a^> in the business of nearly all departments of retail
temporarily halted and some slight reactions oc stores. The increased number of unemployed is un
curred. But practically all foreign currencies still doubtedly becoming more of a factor in retail busi
retain most of the advances made prior to that date, ness, as month after month gives numerous evidences
and some have advanced to much higher levels. 1 he of forced economy. It now begins to appear that
reasons for this continued strength in foreign ex the public over-bought itself during the holiday sea
change are not altogether evident, but general son, allowing its generosity to outdo its ability to
improvement in European financial and economic pay. Charge accounts have increased in proportion
affairs, especially in those of England and the former to cash payments, and more accounts are overdue
than is usually the case. It is almost the universal
neutral countries, is an important factor.
The chart on page 7 shows the movements of report that collections in the retail trade are poor.
English, French, Italian and German exchange rates Even the February furniture sales have not resulted
during the past two years as compared with the ratio in the same amount of business as in recent years.
between the commodity purchasing power of each The fact that prices are much lower than they were a
foreign currency unit and that of the dollar. The year ago does not appear to have had much influence
latter figures were obtained by dividing the monthly on buyers. Other advertised sales have, as a rule,
index number of the Bureau of Labor by the foreign met with as little success.
Retail buying policy is unchanged, few orders be
index number for the same month. Thus, the dotted
line in each group is the exchange rate expressed in ing placed except for prompt delivery. Price varia
per cent of par, or the gold value of the foreign tions have become slight in most lines, but liquidation
currency as compared with the dollar. The other is still in process in a few articles, among which aie
line shows the commodity value of the foreign cur household things made of metal and of wood, or a
rency as compared writh the dollar. Thus, in Decem combination of both.
In our report of business conditions for January,
ber, 1921, sterling exchange was 87 per cent of par;
that is, the gold value of the pound was only $4.24. we have separated apparel stores, both for women
But on the same date the purchasing power of the and men, from department stores. Plans are under
pound in terms of commodities was 95 per cent of way to report separately each of the more important
that of the dollar. In other words, the pound, on that towns in the district. These changes, we believe,
date, could purchase only $4.24 worth of gold but it will prove helpful to all concerned.
The condition of retail trade throughout the
could purchase $4*63 worth of commodities. A l
though these two lines rarely coincide exactly, it is United States during the past two years is shown
evident from the chart that the exchange rate in each in the following table, the average monthly value o
case tends rather to approach this new, “ purchasing 1919 being figured as 100.
powT parity” than the old gold par of exchange.
er
AVERAGE MONTHLY VALUE OF RETAIL TRADE
Monthly Average of 1919=100
FOREIGN EXCHANGE RATES
Feb. 20
Jan. 20
$4.3919 $42092 +$.1827
London
.0810 + .0105
.0915
Paris
.0776 + .0094
.0870
Antwerp
2001 + -0077
2078
Copenhagen
2493 + .0158
2651
Stockholm
.1490 + .0099
.1589
Madrid —
.3643 + .0157
.3800
Amsterdam
.7632 + .0705
.8337
Buenos Aires
.7370 — .0255
.7115
Shanghai ...
.1943 + .0006
.1949
Berne .........
.0435 + .0069
M ilan.............................. 0504
Berlin ............................. 004424 .004948 — .000524
Vienna ............................000241 .000313 — .000072
C h a i n S tores
Percentage
Net changes
of change
+ 4.3%
+ 13.0“
+12.1 “
+ 3.8 “
+ 6.3 “
+ 6.6“
+ 4.3 “
+ 92 “
— 3.5 ‘
+ .3“
+ 15 .9“
—10.6 “
—23.0“
Five and
Department Mail Order
Ten
Stores*
Houses Grocery
158 Stores 4 Chains 13 Chains 4 Chains
8
1920
anuary .. 107.2
ebruary . 85.6
larch . . . . 120.5
ipril ....... 1172
day ........ 124.9
une ....... 119.9
uly ......... 89.9
August . . . 88.8
September. 106.6
October .. 131.8
November. 136.8
December. 183.8
120.2 - 128.8
122.2 125.6
130.7
145.1
107.5
149.8
90.4
146.0
87.3
142.8
80.7
151.9
80.2
134.7
90.5
132.7
103.7
133.1
125.5
131*5
97.9
128.3
85.6
82.6
111.1
110.6
112.9
108.9
112.0
111.1
111.7
129.9
125.7
214.6
Cigar
Drug
6 Chains 3 Chain*
113.6
106.1
116.1
1092
115.1
116.1
122.5
118.1
118.3
121.9
112.6
1462
106.8
106.1
120.3
1232
135.6
129.6
137.3
1292
136.6
151.0
133.9
180.5
1921
January ..
February .
_
M arch_
April ...
May
June ..
July ...
August ...
September.
October
November.
December .
103.8
88.4
116.9
112.6
112.6
111.1
79.7
82.7
95.0
130.7
123.4
182.7
69.1
64.4
95.0
77.2
60.2
61.9
49.2
56.3
72.5
88.5
83.1
79.9
115.5
109.1
119.2
112.1
111.3
108.7
106.8
114.3
110.4
126.2
125.7
134.9
86.1
92.9
121.1
111.9
112.2
109.7
108.0
116.0
113.4
141.9
134.1
241.6
crease has been only slight, and some firms report an
actual decline in business. Practically all of the
present demand is for small quantities and for imme
diate delivery. It is evident that completion of in
ventories in January showed in some instances un
expectedly low stocks. Hence, a large part of cur
rent orders is for the replenishment of exhausted
lines. Cement manufacturers are reported to be
purchasing in greater quantities, and oil interests are
also in the market to a larger extent than formerly.
But sales of structural iron and railroad equipment
continue to be disappointingly small, in spite of the
heavy potential demand which exists for these prod
ucts. In general, rails, shapes, plates and bars con
tinue to be sluggish. Pipe, tin plates, sheets and
wire products are in greater request relatively than
the former products.
Export demand has continued the improvement
which commenced in September. During 1921 ex
ports of iron and steel products declined from a total
of 537,515 tons in January to 73,792 tons in August,
but they increased steadily after that month, and
leached a total of 129,921 tons in December. Pres
ent indications point to a further increase in January
and February. Japan, which took over 47 per
cent of the December exports, continues to be the
leading purchaser of our products. American pro
ducers find it practically impossible, however, to com
pete successfully with European manufacturers in
either European or South American markets.
Price tendencies continue to overshadow the do
mestic situation, and the present refusal to make
future purchases is attributable to the fact that both
producers and consumers freely predict lower prices.
Indeed, the general level of iron and steel prices is
now below the low level of last August. The Iron
A ge composite price of seven finished steel products
on February 21, 1922, was only 2.005' cents per
pound, as compared with 2.048 cents on January 31,
and with 2.821 cents on February 22, 1921. This
figure is fairly close to the 10-year pre-war average
of 1.689 cents. The average of pig iron quotations
was $18.35 Per ton 011 February 21, as compared
with a pre-war average of $15.72. Plates are espe
cially weak, being quoted now at from 1.40 to 1.45
cents, as against 1.50 cents in 1914. Shapes and
steel bars have also dropped to a price of 1.40 cents
per pound. On the few transactions in pig iron in
this district prices have remained fairly stable at from
$20 to $20.50 for No. 2 X, and from $19.50 to $20
for No. 2 plain.
Producers are continuing to confine their opera
119.9
116.5
131.8
134.7
129.5
127.8
128.5
127.6
128.0
138.0
124.8
172.7
115.3
108.6
120.8
119.2
117.2
118.2
118.9
116.4
116.7
121.7
112.5
141.6
Ct
\
are located in Federal Reserve Districts No. 1 (Boston), No. 2
No ' J r N o . 5 (Richmond), No. 6 (Atlanta), No. 9 (Minneapolis),
11 (Dallas) and No. 12 (San Francisco).
RETAIL TRADE
C om par ison
N et S a les
of
January, 1922,
with
January, 1921
January 1 to
January 31, 1922,
with
January 1 to
January 31, 1921
—12.2%
—10.9 “
—15.6“
—12.2%
—10.9 “
—15.6“
—21.0“
—21.0“
£.n reporting firms (54)
|rms in Philadelphia __
lrms outside Philadelphia
i»en s apparel stores.........
°men’s apparel stores...
_
4.3 “
_
C om par ison
—
6 . 1%
.6 “
,
+
.
.
+
—22.5 “
—11.9“
+
2.8 “
— 9.8 “
—15.8 “
R ate
a.
-4%
— .3 “
— 8.4 “
.
S to cks
of
January 31, 1922,
with
December 31, 1921
January 31, 1922,
with
January 31, 1921
p- reporting firms............
|
rms in Philadelphia . . . .
rrns outside Philadelphia
\i,en s apparel stores.........
omen’s apparel stores...
4.3 “
of
T urnover *
January 1 to January 31, 1922
p- reP.°rting firms............................
p ms m Philadelphia ....................
Me?S outs*de Philadelphia..............
3.0%
3.5 “
2.2 “
men’s apparel stores...................
5.9“
Wa S aPParel stores............................
*T
im
"nes
per year, based on cumulative period.
Percentage of
Orders outstanding January 31, 1922,
to
Total purchases in 1921
*(|
p;rT
5eP°rting firms.....................
p rms ln Philadelphia ..............
0utside Philadelphia . . . .
Wntvf a,P arel stores...................
P
U len s apparel stores............
IT
8.3%
8.8 “
6.8 “
.....
3.3“
IRON AND STEEL
It is becoming- increasingly apparent that the im°vernent in the iron and steel industry since the
^ l e
. ear ^ a s
y
somewhat overestimated.
Uary, it is true, showed a material advance over
X
v^CernI>er, but the improvement was no greater than
, c expected in view of the extreme dullness which
c prevailed during the latter month. Moreover,
b e t t ^ 1 ^’ves ^ttle indication that it will be much
^
in er ^lan January- Many firms report an increaslar V0^
Urne
inquiries and in numerous instances a
£er number of orders. But in the main this in
Jai
9
tions to immediate requirements, as they are particu
larly desirous of avoiding further accumulations of
finished goods with the possibility of lower freight
rates and lower prices in the near future. Such light
stocks as are now being held are decreasing in prac
tically all instances, as current orders are being filled
from stock whenever possible. Operating rates
range from io to 60 per cent and even higher, but
the general average is probably not more than 40 per
cent.
Many firms report a slight increase in employment
in February as compared with January, but employ
ment in the latter month reflected the slackening of
operations during inventory period. Few general
wage reductions have been made since the first of the
year, but manufacturers report frequent individual
adjustments during the month. Common labor is
being paid as little as 20 cents per hour in some cases,
but the average wage is somewhat higher,— 26 to 30
cents.
Manufacturers of machinery and machine tools re
port a continuance of the dull business which has ex
isted for several months past. Power transmission
machinery is in especialy poor demand,— a reflection
of the prevailing industrial inactivity.
Likewise
there is little call for textile, chemical and dye ma
chinery. But machine manufacturers supplying the
cement industry and the paper industry report a fair
demand from these sources. Canning machinery is
also in better request. Stocks, universally, are light,
and where possible, orders are filled from stock.
Operating conditions are, of course, very uneven, but
the industry in general is hardly more active than is
the iron and steel industry.
Production indices for January are somewhat
anomalous. Steel ingot production increased con
siderably in the fact of a decrease in unfilled orders
of the United States Steel Corporation, but pig iron
production showed little change, declining very
slightly. The total production of pig iron during
January amounted to 1,638,697 gross tons, or 52,861
tons per day, as compared with 1,649,086 tons in
December and a daily average of 53 > 9 ^ t° ns- This
1
is the first slackening in an increase that has con
tinued steadily since August. Output of steel ingots
during January, however, amounted to 1,593,482
gross tons, an increase of 166,389 tons, or 11.7 per
cent over December’s total of 1,427,093 tons. A re
flection of this relatively heavy steel ingot produc
tion is probably seen in the rather heavy decline in
unfilled tonnage. Unfilled orders on January 31
were only 4,241,678 tons, as compared with 4,268,-
414 tons a month previous. These reports are but
further evidence of the existing uncertainty in the
industry as to future demand and prices.
BUILDING MATERIALS
Every present indication points to the probability
of an active building program in the Third Federal
Reserve District in the spring. Architects and build'
ers are optimistic and report more activity at the
present than at any time in the past year. Building
materials are in fairly plentiful supply and their
prices have dropped still further,— the building
material index number of the Bureau of Labor for
January having dropped from 203 to 202.
Con
tractors have indicated their intention of continuing
last year’s wage scale, and labor at those rates is
fairly plentiful at the present time. However, con
tractors report that the local supply of labor would
be inadequate should construction become extremely
active.
Inspectors’ reports, showing the number and
value of building permits issued in fourteen cities of
this district, evidence the marked improvement id
the situation. The total of $6,736,873 for January
is more than three times the value— $1,917,458— of
permits issued during January, 1921. The figure
for January, 1922, represents an increase of 47.6 pef
cent over the value of December permits, which was
$4,564,907. According to the report of the F. W*
Dodge Company, the value of contracts awarded id
the Middle Atlantic States in January amounted to
$24,237,000. This was a decrease from the previous
month, but a substantial increase as compared with
the same month of 1921. In the country as a whole,
the value of January contracts reported by this com
pany was 49 per cent higher than that of its contracts
in January, 1921.
The present demand seems to be greatest for lowpriced residences, costing from $4,000 to $8,000, and
for apartment houses intended to rent at from $60 to
$90 per month. For the building of such structures
banks seem willing to lend money, although they are
not willing to base their loans on present costs, m
general, the more conservative trust companies are
willing to loan, on a first mortgage, 60 per cent of a
value lying somewhere between the 1914 costs and
the present costs. For high cost homes and apart
ment houses, however, the banks are reluctant to lend
money. And there is little hope for the success of
such investment ventures in view of the lessened pur'
chasing power resulting from unemployment and
lower wages. Furthermore, although there is un
doubtedly a housing shortage in Philadelphia, the
actual shortage of residences is relative rather than
absolute. Crowding of two or more families into
one house has been necessary in the past, and is quite
Possible in the future. Indeed, the extent of the
shortage” of houses depends very largely upon the
costs of building them. Hence, a material advance
ln building costs above the present levels would un
doubtedly lead to a marked slackening of construc
tion.
ber. The lines that are in greatest demand must be
sold at a high price in order to help bear the addi
tional burden of selling the others below cost in
order to get them out of the yards. Another im
portant factor in keeping up the price of lumber to
the consumer is the cost of shipping. The following
information furnished by the National Wholesale
Lumber Dealers Association shows the freight cost
on 1000 feet of lumber from certain points to Phila
delphia upon given dates. The increases since 1918
make up a large part of the present prices.
L umber
Demand for lumber is considered to be normal for
this season of the year, and, according to reporting
firms, would be better if the weather were more fav
orable to building operations. Orders are small and
are for immediate delivery. Manufacturers report
that many dealers are now ordering one carload of
H^xed stock instead of their ordinary requirement of
a car of each grade. Inquiries, however, are
Numerous, because of the large volume of building
expected this spring, and firms are busy making esti
mates on prospective orders. Actual sales in January were materially heavier than in the same month
last year, which of course was an exceptionally
Null period.
The demand is still greatest for the high grades of
umber, particularly in hardwoods used for building,
uc poorer grade, usually taken by various industrial
enterprises, can hardly be sold. Consequently,
^nufacturers have practically none of the former
°n hand and are heavily overstocked with the cheaper
, • Mills are gradually resuming operations, and,
as ^ customary during this period, are building up
j °cks in preparation for spring business. Some
drge plants are running on full time, but these are
e^ ePti°nal, and production in general is down to
°°ut 60 per cent of capacity. Dealers for the most
ar* have little lumber on hand and have as yet to
Secure their spring supplies.
Accent reports are to the effect that some of the
^Pper grades of hardwood are being quoted at lower
^sUres. But for the most part prices have been firm
several weeks and have shown a tendency to inase. That is, manufacturers have quoted higher
ti^Ces hut have not been able to get many orders at
e advanced quotations. The good demand for the
£ grades and their consequent scarcity, as cont^
xvith the few sales and superfluous stocks of
Poorer stuff, has resulted in an unusually wide
ergence in the prices of these two classes of lum
Shipping Point
Kind of Lumber
May,
1918
Freight Costs
June 25,
1918 Present
Wilmington, N. C.—N. C. Pine
flooring ...2 2 5 0 lbs. $3.83 $5.06 $6.75
Jacksonville, Fla.—Yellow pine.. 4500 lbs. 9.90 12.60 16.68
Memphis, Tenn.—O a k ............... 4000 lbs. 11.60 14.00 18.60
Spokane, Wash.—Fir timbers... 3300 lbs. 23.10 24.75 28.71’*
'
* 1920 rate was $33.
Pacific Coast rates have been reduced recently.
Lumber manufacturers have been able to reduce
materially most of their other costs. W ages have
been cut frequently in many mills, and in the far
South are almost back to pre-war levels. Further
more, labor is plentiful and more efficient.
Collections are a little slower, but this is usual at
this time of the year, when the trade is ordinarily
buying lumber and selling but little.
B ricks
There is as yet little demand for building bricks,
except in certain localities where there has been
greater building activity. In New Jersey and in
some sections of Philadelphia, manufacturers are
doing a fairly good business for this season of the
year, but in other places the demand is even below the'
seasonal normal. In general the industry is rela
tively inactive, and most present reduction is in pre
paration for the spring demand, which is expected to
be heavier than that of last year. Some plants con
sider that their supplies are sufficient and are closed
down, but a few are running almost at capacity.
Consequently stocks are heavy. Prices have not
changed recently, and the prevailing quotation for
common bricks in Philadelphia is $16 per thousand.
There have been a few slight wage reductions, but no
general action in this respect has been taken.
Opinions regarding collections vary; some report
that they are satisfactory, whereas others notice a
pronounced slowing up.
E lectrical S upplies
11
Although some firms report a recent increase in
sales of electrical supplies, and others a decrease, the
trade in general is optimistic because of the large
number of inquiries that are now being received.
Contractors report that they are making estimates on
many prospective operations. The extent to which
inquiries have developed into actual orders varies
among the different jobbers, but though few of the
inquiries have as yet led to the placing of contracts,
they are looked upon by dealers as evidence of the
many plans that are under way for construction this
year. Actual sales of electrical supplies are ordi
narily smaller in January and early February than
during any other season, and in general this year has
been no exception to the rule. Orders are exceed
ingly small!, as retailers and contractors are not buy
ing any more than they require for present needs.
One jobber, for example, reports that in number his
January orders exceeded those of January, 1920, but
that in volume they were 20 per cent less.
Stocks are small in most cases, and are not re
ported to be above normal with any of the jobbers or
retailers. Manufacturers have larger supplies than
the merchants.. But all along the line stocks are de
creasing, as factories have reduced operations and
jobbers and retailers as a rule are buying less than
they are selling. On certain commodities, however,
which are thought to be selling at exceptionally low
prices, some wholesalers are stocking up.
Prices of electrical supplies in general have been
decreasing for some time. Certain products used
largely in house wiring, such as wire and galvanized
iron conduits, are said to be selling below the cost of
production, because of severe competition among
manufacturers. On the other hand, electric irons,
washing machines, vacuum cleaners, and similar
household appliances, have been lowered in price to
only a small extent.
Agreement is almost unanimous among jobbers
that collections have been getting worse for the past
month or two, and are now exceedingly slow.
down. Labor is plentiful and efficient. Collections
are fairly good but have fallen off some within the
past thirty days.
P aint
Practically no change in business conditions has
been noted by the paint industry since last month,
unless it is that the number of inquiries has increased.
The volume of sales is no larger in February than it
was in January, and is considered practically normal
for this time of the year, although it is smaller than
in 1920. Dealers have not as yet ordered their sup
plies for the spring trade to any great extent and are
still purchasing in small quantities to meet their
present requirements. Manufacturers are making
vigorous efforts to place orders and are in many cases
offering special concessions regarding payments.
The industrial demand for paint, although better
than it was last summer, is still exceedingly light.
Manufacturers are operating their plants at about
50 per cent of capacity, which is from 75 to 80 per
cent of normal for this time of the year. In accord
ance with their usual practice, they are accumulating
stocks in order to meet the spring demand from
dealers. It is believed that the stores have little paint
in stock, and that consequently, when retail sales be
gin to increase, they will have to begin buyingManufacturers, however, state that their supplies of
finished paint are not much larger than normal for
this season.
Prices have remained unchanged. Raw materials
in general have been firm. Turpentine receded
slightly after its recent rapid advance from 80 cents
early in December to 93 cents a month later. Begin
ning at 67 cents a gallon at the first of the year, lin
seed oil has risen steadily until it is now quoted at
from 84 to 87 cents in carload lots. The chief rea
son given for this advance is the rise in sterling ex
change, which pushed up the price of English oil and
thereby removed a depressing influence from the
market. Foreign oil quotations have risen from 62
P lumbing S upplies
cents to 75 cents a gallon. Both linseed oil and tur
Manufacturers of plumbing supplies report that pentine are now higher than they were at this time
their business is about normal for this time of the last year. In regard to other costs of production, a
year. The large number of inquiries being received few manufacturers report recent wage cuts. W ages
gives promise of an active spring, but actual orders in this industry did not go up as much as in some of
are still small and call for prompt delivery. Dealers the others; therefore, reductions have not heretofore
are keeping their stocks down, but manufacturers been made.
Collections are even worse than they were last
are accumulating supplies slightly, as is usual at this
season. Prices on finished products are still going month, when they were reported to be poor.
•
WHOLESALE HARDWARE
In this district the wholesale trade in hardware has
fallen off decidedly during the past two months. The
hardware trade, however, is one that is peculiarly
subject to seasonal influence, sales usually declining
in January and February and in June and July.
Therefore, the present situation is not particularly
disturbing.
The accompanying table and chart show that both
the sales and the outstanding accounts of the twentyhye reporting hardware firms dropped precipitously
ln January. Also, the total of January sales was
more than 20 per cent below the total for January,
I 921- But in view of the continued decline in prices
during the past several months, the difference of only
WHOLESALE HARDWARE TRADE
January, 1922,
compared with
Number of reporting firms—25
December, 1921
Net sales during January
—24.8%
CCounts outstanding January 31.. — 7.0 “
Tam
Ratio of accounts outstanding to sales:
January,
1922....................................
December, 1921....................................
November, “ ......................................
October,
“ ......................................
September, “ ......................................
August,
“ ......................................
January, 1922,
compared with
January, 1921
—
20.2%
—23.3 “
202.3%
162.8 “
180.2 “
164.7 “
179.8 “
181.0 “
20 per cent in the January sales of the two years in
dicates that the physical volume of business was
probably much the same as it was in January , 1921.
Many articles, indeed, have declined much more than
20 per cent.
Collections, in general, are only fair.
COAL
A nthracite
Continued cold weather during the past month
has resulted in only a slight improvement in the
domestic demand for prepared sizes of anthracite.
Stove and chestnut continue to be the most popular
sizes, but the steam coals are still a drug on the
market.
A ll purchasing is of a hand-to-mouth
nature, and orders are for only small lots, as the con
sumers as well as the dealers and operators are un
willing to accumulate stocks before the end of the
present coal year. The expectation of a strike of
anthracite miners is having the opposite effect on pur
chasing to that caused by the threatened strike in the
bituminous industry. Domestic consumers are un
willing to purchase large quantities at the present
price, as their fuel needs will lessen considerably after
13
April. Consumers of steam sizes are also reluctant to
stock heavily at the present time, since they are aware
of the existence of heavy supplies of steam coal in the
yards of dealers and operators. Thus, the operators
and dealers are faced with the possibility of having
large amounts of comparatively high-cost coal in
storage on April i. And both are endeavoring, by
every means, to reduce their holdings. Independent
operators have reduced their prices, even on some
of the popular sizes, to the companies’ level, and re
tail dealers in numerous cases have shaded existing
prices as much as 50 cents or $1 a ton in the endeavor
to clear their yards.
Production has increased somewhat in the past
few weeks, but it is still far below capacity. The
total output for the four weeks ending February 11
amounted to 6,683,000 tons, as compared with
5.887.000 tons in the preceding four weeks, and
7.851.000 tons in the same period of 1921. This
decline of 15 per cent from last year’s output is
significant. Anthracite shipments for January, as
reported by the Anthracite Bureau of Information,
also show an increase from those of the previous
month. January’s total of 4,848,053 tons is 4.5
per cent more than that of December, but 15.6 per
cent less than that of the same month in 1921.
• It is apparent that the rate of production of hard
coal is determined largely by the demand for the
domestic sizes, which comprise about 70 per cent of
the total output.
This product, being used for
domestic heating, is extremely susceptible to sea
sonal and weather conditions. The accompanying
logarithmic chart shows the per capita production of
anthracite coal during the past thirty years.
A l
though relatively violent fluctuations in production
occurred from year to year, the trend over the entire
period shows that per capita consumption of anthra
cite coal has been almost stationary.
B ituminous
The expectation of a strike of bituminous miners
on April 1 has been reflected during the past month
in a greatly improved demand for soft coal. Bitumi
nous consumers, especially the railroads and public
utilities, have enlarged their reserves considerably
during the month. According to a recent report of
the Geological Survey, the latter group was the most
heavily protected on January 1, 1922. On that date
electric utility plants had 51 days’ supply on hand,
and coal gas plants 89 days’ ; and these reserves
have been further increased since the first of the year.
Other classes of consumers also have relatively large
stocks, ranging from 4 to 8 weeks’ supply. Hence
the dangers involved in a bituminous strike have al
ready been considerably lessened. Furthermore, in
view of the present industrial inactivity, the stoppage
of production in the union mines will have less effect
than it would have normally.
Consumption of soft coal during the past year has
not averaged more than 8,000,000 tons per week.
A s the capacity production of the country is more
than 12,000,000 tons, it is clear that not more than
two-thirds of the total productive capacity is neces
sary to supply current requirements. Furthermore,
unionization of the bituminous industry is not com
plete— only about 60 per cent of existing mines being
under union control; and therefore non-union oper
ations are sufficient to produce about 4,000,000 tons
weekly, or one half of the present consumption. In
view of this fact, and in view of the existing heavy
reserves held by consumers, it is apparent that in
dustrial paralysis will not result, at least immediately,
from a strike of the union miners.
Production has increased steadily since the first of
the year, rising from a total of 5,996,000 tons in the
last week of 1921 to 10,326,000 tons for the week
ending February 11. Tins is the highest output
recorded during the present coal year, except for the
last two weeks in October, when consumers accumu
lated reserves in fear of the railroad strike. The
total production of the past twelve months, however,
is still far below that of any similar period in a num
ber of years. The accompanying chart, showing an
nual per capita production of soft coal during the
past thirty years, shows strikingly the serious cur
tailment which occurred last year. This is particu
larly noticeable in view of the very rapid increase iu
per capita production which has occurred since 1890.
In this period, during which per capita production of
anthracite remained almost stationary, that of bitumi
nous rose nearly 400 per cent. Thus it is apparent
that although the present productive capacity of the
industry is in excess of current demand, productive
capacity will soon have to be materially enlarged if
the rate of increase continues the same in the future.
C oke
Beehive coke production is still being maintained
at a weekly rate well over 100,000 tons. The out
put for the week ending February 11, as estimated by
the United States Geological Survey, amounted to
128,000 tons, an increase of 6,000 tons, or 4.9 Per
cent, over that of the previous week. This produc
tion, although not more than half that of the same
Period of 1921, represents a very material improve
ment over the low level of last summer. The increase
ls m part a reflection of the fear of a coal strike in
-^Pril, as steel production has not advanced propor
tionately. By-product coke ovens have not extended
operations, as they are having considerable difficulty
at present in disposing of their coke output. Indeed,
pioduction has been so far in excess of consumption
that by-product ovens have heavy stocks on hand.
A recent report of the Geological Survey showed
that a total of 984,000 tons of by-product coke were
stored by operators in the industrial sections of the
country. This reserve has increased to more than
a million tons at the present time— an amount apPioximately equal to the total weekly production of
anthracite coal in the United States.
Prices have shown but little change during the
^onth, spot furnace coke being quoted at $2.90.
P°t foundry coke is selling at $4.00, and contract
Prices are about 25 cents per ton higher.
COTTON
Cotton G oods
Sheetings and fine yarn goods continue dull, but
print-cloths are a bit more firm. Practically all orders
are for immediate delivery and chiefly for small lots.
Business is hard to get, especially through the West
and South; but with the recent rise in wheat and a
better sentiment prevailing in the South, sellers are
more optimistic and expect a marked improvement
within the next few months.
Operations have declined slightly in a few cases
since the first of January, but generally speaking they
are normal for this time of year. One manufacturer
is operating at letter than his usual capacity, having
added a night force in two departments of his plant.
On the other hand, one or two mills report that they
are practically shut down on account of lack of
orders. The mills in this vicinity, generally, have a
sufficient number of orders booked to keep them
running from six to eight weeks at the present rate of
production. The average rate of operations of the
mills in this district is approximately 70 per cent of
capacity. Stocks of finished goods are decreasing
slightly, as compared with a month ago, and very
little stock is being manufactured ahead.
Prices, on the whole, have not altered materially,
although the tendency is toward lower levels for
some products. A s in the yarn trade, some sales of
Jhe cotton goods market has been dull and un
settled during the past month, and to manufacturers
specially it has been unsatisfactory. The present
j-ondition of the market has encouraged buyers to
n°ld off on everything except their urgent needs,
marked lack of confidence in values still exists
and is, no doubt, the most important cause of the
Present stagnation. Recent developments, such as
strikes in the New England mills and increased unj^Ployment, have contributed their share toward
. King the market uncertain. Another factor is the
^stability of the raw cotton market. A s long as
ofere Is the possibility of a marked drop in the value
yaw cotton, buyers of finished cotton goods will
csitate to place orders.
. he buying public has become even more dis£ . mating, and jobbers and retailers report only a
la lr arn°iint of business. For example, one of the
inf^eSt cus^
omers of a local jobbing house recently
rmed them that this year’s business did not warbis carrying a complete line of goods and that
Th'°^
orc^ n§' would be done by parcels post.
er^
lS COndition is rather prevalent among both joband an<^ re*a^ers- Ginghams, high-grade percales,
afe lanCy &°ods are hi best demand at present, as
cheaper linings used by clothing manufacturers.
15
cotton goods have been mac4e at cost or less, particu
larly by Eastern manufacturers in their desire to keep
their mills operating. Percales are slightly lower,
and tire fabrics, sheetings and print-cloths show a
tendency to weaken. Tire fabrics are reported to be
lower than at any time since the war.
The following chart indicates the trend of average
monthly wholesale prices of staple ginghams and of
64 x 64 print-cloths in the New Y ork market from
1913 to date. During the years from 1913 to 1915,
the price of ginghams remained firm at approxi
mately six cents per yard, but in the early part of
1916 it began to rise, reaching 22^2 cents in the sum
mer of 1916. By May, 1919, it had fallen to 15
cents, and then rising to the peak of 27^/2 cents in
February, 1920, it remained firm until the fall of
the same year. The low point was reached in Janu
ary, 1921, since which time it has risen to the present
figure of i6y2 cents.
The rise in print-cloths was very similar to that of
ginghams. The price reached 14 cents in the summer
of 1918 and then declined to 7J4 cents in the spring
of 1919. Later it rose and in the spring of 1920
touched 17% cents. The low point was reached in
the summer of 1921. The price at present is 5%
cents.
Collections are only fair, and no improvement has
been noted since the first of the year.
C otton Y arns
A revival of buying activity, followed closely by
a decided reaction, occurred in the cotton yarn mar
ket after the first of the year. But at present, only
a minimum amount of business is in general being
transacted, although in a few cases fair-sized orders
have been received. During the first half of Febru
ary, the market was exceedingly dull. Not only was
there practically no trading of any consequence, but
almost no inquiry. Even the short rally in raw cotton
failed to stimulate demand. This continued dullness
may be attributed to the same factors that are affect
ing cotton goods— the strike in New England mills,
the unstable cotton market, and the inactivity of
retailers resulting from increased unemployment and
impaired purchasing power. Practically all orders
are for small lots for immediate delivery, and what
little buying has taken place during the past month
has been principally by the knitting trade. Only a
few orders are for weaving yarns; heather combin
ation yarns are in fair demand, as are double-carded
yarns; but splicing and mercerized yarns are not
selling so well. Carded yarn used in the manu
facture of cheap hosiery is likewise very dull.
The production of cotton yarn is in excess of con
sumption, and a considerable quantity is being stored
in warehouses. Stocks have been increasing for some
time, and some of the southern mills are becoming
cramped for storage space. The average rate of
operation in the Third Federal Reserve District is
approximately 65 per cent of capacity. Practically
75 per cent of all orders are being filled from stock.
The following chart illustrates the course of aver
age monthly cotton weaving yarn prices from 1913
to date. Beginning in 1915, prices of 80/2 Eastern
Peeler Cones, Combed, and of 50/2 Eastern Peeler
Cones, Combed, rose steadily until August, 1920,
when they reached $2.50 and $1.70 per pound respec
tively. Since that time the decline has been gradual
and continual except for a sharp upward trend late
last year.
The labor situation is attracting much attention in
the trade at present, and the unsettled disputes as to
wages, hours of labor, etc., are undoubtedly one cause
of much of the dullness throughout the trade. A
large number of New England mills are closed down
on account of strikes and walkouts, and the lack of
any agreement of opinion among mill men on the
matters in question has a marked tendency to un
settle conditions and deter future buying.
The
Northern manufacturer is in a very difficult position,
3-nd until some satisfactory readjustment in wages
ls made he will be hard pressed by the keen com
petition of the Southern mills, whose production
costs are much lower.
Collections are only fair and have not improved
since last month.
SILK
S il k Goods
^he silk goods trade is now in the midst of one
the dullest seasons of the year. During the past
month the small demand which has featured the silk
goods market since the first of the year decreased to
such an extent that trading is now practically at a
standstill. Buyers lack confidence in values and are
unwilling to proceed with purchases for the spring
trade until prices are lower, as they maintain it to be
Practically impossible to sell at the present high
ngures. Not only have raw silk prices been declinlng since the middle of January, but there is also
great uncertainty as to their future trend. Adverse
conditions in the silk goods market are directly at
tributable to conditions in the raw silk market. The
few orders that are being placed are for absolute ne
cessities for immediate delivery, and are much smaller
than they have been for some time, notwithstanding
the fact that most stocks are low and need to be
replenished. Crepe silks, such as crepe de chine,
canton and crepe faille, are in best demand. Baronette satin, messaline and taffeta follow next, in the
order named. The predominating colors are brown,
navy, black, henna, sand, and flame.
The average rate of operation of the reporting
firms in the Third Federal Reserve District is ap
proximately 70 per cent of capacity. Some mills are
operating at full capacity and others at a much re
duced rate; but in either case the activity is based
upon orders received some time ago.
The following chart shows the average monthly
value of imports and exports of silk goods from 1917
to date. It will be noted that exports of silk goods
gradually increased until July, 1920, when they were
valued at $3,105,149, but since that time they have
fallen off considerably. Imports, on the other hand,
fluctuated greatly during 1917 and 1918, but in the
spring of 1919 began to increase and they reached
the peak in December, 1919, with a value of $10,574,345. Since that time they have steadily decreased.
Manufacturers’ stocks are accumulating, but the
stocks held by retailers and jobbers are decreasing,
and in many cases those of retailers are practically
exhausted. Generally speaking, however, they are
sufficient to meet the needs of buyers. Prices of fin
ished silk goods are being fairly well maintained,
notwithstanding the fact that buyers are making
efforts to force quotations down.
The labor situation in the silk goods industry is
practically unchanged, and wages are as high as they
were six months ago. The supply of unskilled labor
and, except in some localities, of skilled labor, is
plentiful.
Collections are only fair, no improvement being
noted during the past two months.
S il k Y arns
Since January first, the demand for silk yarns has
fallen off to some extent, but throwsters are receiving
a fair amount of business. The call for yarn is not
normal for this season of the year, but this may be
attributed to the uncertainty prevailing in the raw
silk market. In only one or two instances do throw
sters report even a slight increase in demand, and
they are chiefly manufacturers of novelty yarns. The
17
withdrawal of the hosiery trade from the silk yarn
market has been a heavy blow to this and the raw
silk market. Hosiery manufacturers have long been
the heaviest purchasers, but on account of the ex
tremely unsettled state of the raw silk market, they
are unanimous in the view that it would be unwise
at present to make any definite preparations for the
future. Practically all orders are for immediate de
livery, the percentage of futures being very sm all;
and in size, the individual order is smaller than that
of last year. Buyers are extremely cautious and
are confining their purchases to only their most
urgent needs.
Contrary to expectations, yarn manufacturers are
operating at almost normal for this season of the
year, but they are busy on orders already on the
books. In some instances, mills are running at full
capacity— often with a night force in certain depart
ments— and have sufficient orders booked to insure
operations at this rate for about six weeks. This con
dition is the exception, however, and the average rate
of operation of the reporting firms in this district is
approximately 60 per cent of capacity. Generally,
only enough orders are booked to enable manufac
turers to continue at this rate for about two weeks.
Finished stocks are not accumulating but are being
taken as manufactured. Only a very small portion
of current orders is being filled from stock.
Prices of yarns were for a time unaffected by the
rapidly changing raw silk market. T o have in
creased yarn quotations would have been especially
difficult, and manufacturers were not in any position
to lower them. Since the recent reaction in raw silk
however, yarn prices have fallen off appreciably.
But it is not likely that they will continue to do so
indefinitely. Present quotations are for the most part
based on raw silk purchased some time ago, and until
yarns manufactured from raw material bought at
the new low levels are placed on the market, prices
will remain tolerably firm.
Collections are only fair.
WOOL
W oolen
and
W orsted C loth
The woolen and worsted goods market has not
been as satisfactory as many sellers expected it would
be, although considerable buying is being done by
manufacturers of women’s wear. The men’s cloth
ing division is dull. Opinions of manufacturers con
cerning the state of demand vary widely. Some re
port that there has been a slight increase since Janu
ary; others, that conditions remain unchanged. It
is thought, however, that by the end of the spring
season, a satisfactory volume of business will have
been booked. Retailers are buying a considerable
amount of piece goods. Practically all orders are
for immediate delivery, the percentage of futures be
ing very small; and taken as a whole, the size of the
individual orders compares favorably with those of
last year. Tweeds and homespuns are in good de
mand in the women’s wear trade, tweeds being the
feature of the market. Cheap tweeds are especially
popular, as are check and plaid woolens and flannels.
Overcoatings continue to sell well in the men’s wear
trade, but sales of suitings have been disappointingly
sm all; and despite the fact that raw material has ad
vanced recently, clothiers are not in the market for
goods. This lack of interest on the part of clothing
manufacturers is attributed to labor trouble, to the
demand for lower prices, and to the fact that a con
siderable stock of spring goods is still on hand.
Production has been increased slightly during the
past month. This is the usual seasonal trend, as
February and March are usually busy months be
cause of the demand previous to Easter. In fact,
some mills have been operating on full time with a
full complement of men, and in addition have been
running a portion of their plants at night. The
average rate of operation by reporting firms in this
district is 75 per cent of capacity, but the amount of
unfilled orders is sufficient to continue production at
this rate for not more than thirty days, in most cases.
On the whole, prices of woolen and worsted goods
are unchanged, notwithstanding the fact that raw
material prices are higher. Some manufacturers
lowered prices, hoping thus to stimulate demand.
But their action only tended to make buyers unwill
ing to place orders.
Labor conditions are practically unchanged.
W ages are as high as they were two months ago, and
it is unlikely that any change will be made in the
near future. The supply of both skilled and un
skilled labor is plentiful. Collections are fair and
have improved slightly during the past two months.
W oolen
and
W orsted Y arns
The demand for wool yarns has not materially in
creased since last month. It is, however, about nor
mal for this time of the year and is much stronger
than it was a year ago. During the past week most
trading has been quiet, a falling off in demand being
noted for knitting- yam s as well as weaving yarns,
^his lull in buying is considered only temporary,
however, and spinners are little concerned over it, as
most of them are sold well into the future. The
call for weaving yams from manufacturers of men’s
Wear fabrics is somewhat improved, but the market
for these yarns has been so dull in the past that even
a slight gain seems large in comparison. French
System spinners are very busy preparing knitting
yarns, especially for the hosiery trade. Knitting
yarns continue to lead the market, and are being
k°ught chiefly by the hosiery, sweater, and fancy knitRoods trade. Practically all orders are for near
uture rather than immediate delivery, and most pur
chases are for protection against an advance in
Prices.
Manufacturers have sufficient yarn to fill
current orders. Dress goods manufacturers are
placing orders for moderate quantities of yarn to be
used in the manufacture of tweeds, and merino^orsted yarns are selling well to the underwear
Fade. Carpet yarns continue very active and spinners are well sold up.
Operations in this district are proceeding on an
ayerage of about 80 per cent of capacity, and the
majority of the spinners reporting to us have a suffi
cient number of orders booked to continue operation
at this rate for two or three months, although a few
have only a very small amount. Most plants are
employing a full complement of men, and in some
instances are operating certain departments at night.
Stocks generally are not accumulating, and only a
small percentage of current orders is being filled from
stock. Some firms have no surplus of finished mate
rial and are manufacturing only to order.
Prices of woolen and worsted yarns have advanced
from 5 to 25 per cent, whereas raw material quota
tions show an increase of from 30 to 75 per cent over
prices prevailing last year. Since December 1 raw
wool has advanced approximately 40 per cent, caus
ing a general increase in the price of yarns. Yarn
quotations, however, did not advance simultaneously
with raw material but followed about a month later,
and for the most part quotations on yarn today are
based upon the price of wool bought one month ago.
The recent advance in yarn has not caused any gen
eral buying movement. The recent increase in raw
wool, caused by shortage in supply, has resulted in a
demand for substitute materials of a cheaper grade,
and the sudden call for the lower grades has in turn
caused them to rise in price.
The following chart serves to illustrate the course
of average monthly yarn prices, for 2/50 weaving
yarns and 2/11 and 2/20 knitting yarns, from 1913
to date. Beginning in 1913, both weaving and knit
ting yarns advanced steadily, weaving yams reaching
the peak in October, 1918, and knitting yarns in the
winter of 1920-21. From May, 1920, yarn quota
tions declined gradually, reaching the lowest point
since the war in December, 1921. Thus far this
year quotations have been increasing.
The labor situation is very satisfactory. Skilled
and unskilled labor is plentiful, the efficiency of the
worker has increased, and no wage disputes are re
ported. W ages are practically the same as they
were a year ago.
Collections are slow, many accounts taking longer
than usual. There has been no improvement in
them during the past three months.
R aw W ool
The general tone of the Philadelphia raw wool
market continues to be satisfactory, and for some
dealers January was an exceptionally good month.
The call for wool was considerably above normal and
trading among dealers was very brisk. Much of the
January activity in raw wool may be attributed to the
19
fact that many manufacturers did not purchase ear
lier in the season and were pressed for raw material
with which to fill current orders. Since the last
Government Auction in Boston, February 5, a slight
falling off in demand has been noted, and for a time
the market has been quiet. Speculation is less evi
dent, because the supply of wool has become consid
erably reduced and stocks to trade with are not plen
tiful. Furthermore, the rapid rise in price during
the past three months to a high figure has naturally
caused a halt in trading. The present time may be
characterized as a period of waiting, on the part of
dealers; they are waiting, for the most part, to see
what course the manufacturer will pursue. There
is no denying that this is a wool growers’ year. Ably
assisted by the Emergency Tariff, they are dominat
ing the market to such an extent that they are prac
tically dictating values. Although some manufac
turers are buying frequently, they are not taking as
much wool as in the past. Dealers, on the other
hand, are buying freely.
W ool prices have been advancing continually, and
in view of the acknowledged shortage of desirable
wool, together with an almost prohibitive import
duty, growers are not disposed to lower them. A t
the recent Government Auction prices rose to a level
which was 25 per cent higher than quotations pre
vailing at the January 5 auction. Quotations on all
wools are being well maintained, with the possible
exception of those on some low scoured wools. Some
firms have found it necessary to discontinue some of
the finer grades on account of the exceptionally high
prices, resulting from the scarcity of those wools,
and buyers are substituting lower grade wool. There
is much conjecture as to the future course of prices,
some dealers holding that there cannot be any de
crease, and others that in order to enable manufac
turers to resume operations on a larger scale, lower
quotations will be necessary. The latter group
maintain that the present high level is uncalled for
and is the result of too much speculation.
The following chart illustrates the average
monthly wool imports and prices, from 1913 t° date.
In the spring of 1915 a sharp increase in imports oc
curred, followed by a gradual decline; but in March,
1916, they increased to approximately 69,000,000
pounds. Between the years 1916 and 1920, imports
fluctuated considerably, averaging about 40,000,000
pounds per month, and reaching the lowest point in
July, 1920. During the fall of the same year im
ports increased steadily each month, and in March,
1921, over 98,000,000 pounds were imported, the
largest quantity ever taken in in any one month. Fol
lowing the passage of the Emergency Tariff Bill in
May, 1921, the monthly figures fell to the other ex
treme, and in June of that year only 872,000 pounds
were imported.
Prices, on the other hand, were more stable and not
subject to such violent fluctuation. Increasing grad
ually from 21 cents per pound in January, 1914, they
rose steadily until they reached the peak in the late
summer of 1917. Thereafter a gradual decline fol
lowed until the summer of 1921, since which time
prices have been advancing.
Collections are reported as being good, and have
improved during the past two months. Many of the
larger firms are taking advantage of the cash dis
count.
HOSIERY
V ery conflicting reports are received concerning
the present amount of business being done by hosiery
manufacturers. Conditions among mills making
similar goods vary greatly without any apparent rea
son. However, it is agreed by all that there is diffi'
culty in securing an advance in prices over those
named earlier in the season. Buyers are obdurate
20
on this point, and the fact that the cost of materials
going into the manufacture of hosiery is higher than
it was then has no effect upon them.
Both silk and cotton yarns have declined during
the month, but not sufficiently to allow manufactur
ers to name prices that have proved generally attrac
tive to buyers. Nevertheless, in silk hosiery more
business has been booked than was booked during
the previous month. But the total quantity is not
targe, and it is reported that in order to get the busi
ness profits were cut severely. In heather mixtures
niade of wool and silk large contracts have already
ta^en made for next autumn, but the strength of
Woolen yarns and the difficulty of contracting for the
qualities wanted are limiting the acceptance of new
orders. Many mills never before making heathers
have been attracted by the demand for them and
nave contracted for large deliveries, without having
nad any experience in their production. By a numm the trade this is considered to be a dangerous
Sales of heavy weight underwear for next autumn
and winter are being constantly reported, but as a
rule the individual purchases are small. The esti
mates of the percentage of the season’s business that
has been placed vary greatly. In all probability not
over 33 1-3 per cent has actually been bought, al
though some estimate the percentage at as high as 60
per cent.
The present dullness in retail trade is not encouraging large forward buying by either jobber or re
tailer, nor are the mills, in many cases, anxious to
contract heavily. This is due to the uncertainty of
the situation in cotton yarns and to the difficulty of
covering their needs for such future business, on a
profitable basis.
CONDITIONS IN THE UNDERWEAR INDUSTRY
(In terms of dozens)
Number of reporting firms— 14
Summer underwear:
Product manufactured during
January ...................................
Finished product on hand Janu
ary 31 ......................................
Orders booked during January..
Cancellations received during
January .....................................
Shipments during January.........
Unfilled orders on hand" Janu
ary 31 ......................................
undertaking.
The manufacture of cotton and mercerized
hosiery, except that of some kinds of children’s wear,
appears to have become definitely located in the
°uthern states. The large mills there are able to
sel1 at prices which makers in other parts of the coun
t y are unable to meet.
hhe foregoing logarithmic chart shows the course
business in the importation and exportation of
c°tton hosiery during the past five years.
January, 1922,
compared with
January, 1921
+ 17.6%
+121.6%
— 22.0 “
+312.9 “
+224.9 “
— 66.3 “
+ 60.1 “
+215.3 “
— 3.5“
+ 41.2 “
Number of reporting firms—8
Winter underwear:
Products manufactured during
January
............................... -f- 4.4%
Finished product on hand Janu
ary 31 ....................................... + 13.4“
Orders bookedduringJanuary.. — 18.0“
Cancellations received during
January ......................................................
Shipments duringJanuary............ — 32.9“
Unfilled orders on hand Janu
ary 31 ...................................... + 50.7 “
UNDERWEAR
taie decline in cotton yarns has enabled manufacrers of underwear to name lower prices, and this
as had the effect of inducing buyers who have been
back to place some orders for light weights
sPring and summer wear, at prices much closer
? Biose prevailing at the opening of the season last
!&ust than had been possible since the sensational
Vance in the early autumn, caused by the fear of a
alvf *a^ure- A t that time yarns advanced quickly
ut 50 per cent and business came to a sudden halt.
° vv, although they are not as low as they were last
uier, yarn prices have lost about half of that gain.
ersh S° nie *nsfances if is reported that manufactur,Ve been willing to accept orders for underwear
Prices prevailing before the advance, and these
,
ufacturers have been able to secure additional
lness. But even the small advance demanded by
r
ta k e rs has made sales most difficult and only
P acement orders are being booked by them.
January, 1922,
compared with
December, 1921
FLOOR COVERINGS
It is between seasons in the carpet and rug indus
try, and therefore manufacturers are not expecting
large orders to be placed. A s previously reported,
the mills making Wiltons and Axminsters have
booked their season’s business and are not able to ac
cept any new orders, except for leftovers in certain
sizes and patterns. Orders of this description are
coming in, and it is likely that even such lots will
soon be out of the market. In the lower grades of
carpets and rugs, business is being received in an
amount considered to be about normal for this time
of the year, and the mills are able to continue their
former rate of production.
Linoleum makers have received large orders dur
ing the past few weeks, and are now not able to make
21
shipments as promptly as they were a month ago.
Printed goods have sold better than the heavier qual
ities, but all are in demand. Producers of linoleum
are operating at ioo per cent of capacity, and in some
factories certain departments are working 24 hours
per day. Prices are, for the most part, unchanged,
although in certain lines in which stock had accumu
lated, cuts were made in order to stimulate business.
Linseed oil has advanced sharply in price; other
raw materials, including cork, lumber, and burlap,
are firm and in some instances higher.
LEATHER
There has been some disappointment among tan
ners of heavy leathers that prices for their finished
products should not have responded by this time to
the continued strength of the hide markets. Accord
ing to statements made by a number of these manu
facturers, the present prices of leather, as compared
with its replacement value, are such as to eliminate
all profit in their business, even though on sales now
being made there is a fair margin over cost because
of the fact that this leather was manufactured from
hides purchased in a lower market.
The curtailment made several weeks ago by most
of the tanners, in the number of hides put into proc
ess, will not be felt in the finished leather market
for several months; but it is the hope of the sellers
that leather will then command a better price. Sales
are not large, but it cannot be said that business is
altogether poor, as orders are being received steadily.
Although buyers may realize that the price of heavy
leathers is low, they are not anticipating their needs,
but are purchasing only when they have made sales
that necessitate buying against them. In December
the stock of sole leather increased 1.5 per cent, ac
cording to the figures of the Census Bureau, Depart
ment of Commerce; but in all other important leath
ers, except sheep, there was a decrease in the amount
on hand. Ow ing in large part to the improvement
in foreign exchange, export demand is becoming
better, and those in the trade are looking towards a
further increase in this department to solve some of
their present problems. In upper leathers, although
business is in fair quantity, it has not the snap it had
earlier in the season. Glazed kid, of which 85 per
cent is tanned in the Third Federal Reserve District,
has sold in slightly decreased amount, but the sales
have almost kept pace with production, and stock
therefore has not accumulated, except in large skins
and in some cases in the highest grades. Last autumn
22
these top grades were in such demand that the tan
ners could accept orders only for deferred delivery.
Now, however, the increased call for a cheaper shoe
has resulted in large sales of the medium and low
grades, and in the comparative neglect of the finest
skins. Many of the styles in high-grade shoes for
early spring wear call for less glazed kid than last
season, and this also is having its effect. Tanners
specializing in colored kid report larger sales of
browns and tans, and white kid, owing to the ap
proach of the time when summer shoes are made, is
also finding an increasing demand.
Figures of the Census Bureau, Department of
Commerce, for production and stock of glazed kid
for the last 13 months, show that though production
has steadily grown larger, stocks are not as heavy as
they were early in 1921.
Month
Production of
glazed kid
Dec., 1920. .1,633,785 skins Dec.
Jan.
Jan., 1921. ..1,470,059
“ . ..1,121,681
Feb.
Feb.,
ti
March
March, i t ..1,691,196
..2,180,087
April,
April
..2,654,741
May,
May
“ . ..2,856,390
June,
June
it
.3,153,092
July,
July
it
Aug.,
.3,694,265
Aug.
“ # .3,553,661
Sept.,
Sept.
U .3,943,247
Oct.,
Oct.
“ . ..3,636,194
Nov.,
Nov.
ti
Dec.,
.4,094,314
Dec.
Stock of glazed kid on
hand on given date
31,1920..21,494.427 skins
31,1921.. 22759,768
28, “ ..20,624,551 i l
31, “ ..23,199,330 i l
30, “ ..21,900,708 t41i
31, “ ..21,882,350
30, “ ..20,676,694 aa
31, “ ..21,023,910 a
31, “ ..20,518,111 a
30, “ ..19,928,851 a
31, “ ..20,655,618 a
30, “ ..20,765,525
31, “ ..20,624,554
Figures for the production in January, 1922, are
not yet available, but are expected to be the largest
since the middle of 1920.
Though exports are not large, they have increased
in amount and they are going to a larger number of
markets. Recently shipments have been made to
every country on the Atlantic seaboard of Europe,
from Norway to Spain; and Greece also has received
some American kid.
C alf leather in browns and tans, and smoke, is
being used largely for spring shoes, and tanners re
port that sales are better, especially in No. 1 grade.
The difference in price between this grade and the
top grade of kid is unusually large, and may account
for the greater activity in calf. Sales of side leather,
both black, brown, and patent, are smaller, but a
considerable business is still being done.
The harness leather market is very dull; there has
been no change in price since last autumn, and stocks
of finished leather are adequate to meet all require
ments. Belting leather awaits a revival in general
business. Meanwhile, changes occurring are smallA somewhat better demand has come from the lum-
her trade, but falling off elsewhere makes the net
result about the same.
H ides and S k in s
As the supply of packer hides is small, the curtail
ment made by tanners of heavy leather, referred to
above, has taken some time to make itself felt. A
decline of i cent per pound has recently occurred and
offerings are increasing. Calf skins are quiet and
no change of importance has taken place. Goat skins
from foreign markets command a higher price than
most manufacturers will pay, and latterly the business transacted has been small. Tanners are as a
rule well supplied with skins and feel they can afford
to wait. Numerous lots of skins (not, however, of
the most desired grades), which have been in ware
houses in this country for some time, are offered at
Prices considerably less than to-day’s cost of impor
tation. But they do not attract buyers. Stocks of
raw hides and skins of all the principal kinds de
creased in December, the only exceptions being Cabrettas, Deer and Elk, both articles of relatively
small importance.
S hoes
Shoe manufacturers in this district are running
their factories at a higher rate of production than at
any time since last spring. Some have orders booked
that will carry them well through the season, and
^thers are working on shoes to be delivered in from
^l-r to six weeks. In the high-grade factories spe
c i f ie s predominate, and these vary all the way
r°m slippers with fancy strap effects to sport shoes,
indeed, the latter will be worn more generally than
erctofore for street wear. A s an illustration of the
popularity of these shoes, one shade of leather much
m ^ernanc^ has risen more than io cents per foot in
e last few weeks.
Prices of shoes have been considerably more
sfable recently, but the changes that have been made,
h°ugh small, are still toward lower figures.
Retail shoe trade in the large cities has not been
rPgood proportionately as that in the smaller towns.
e reason advanced for this is that the enormous
argain sales conducted by the department stores
others during the autumn and early winter led
^ any consumers in the cities to stock up in advance.
, e a hers report that collections are very slow, and
* m some cases they had had to ask the manufacer or wholesaler for more time on their bills.
CONDITIONS IN THE BOOT AND SHOE INDUSTRY
(In terms of pairs)
Number of reporting firms—45
January, 1922,
compared with
December, 1921
January, 1922,
compared with
January, 1921
-f-15.2%
+13.7 “
+ 17 .5“
— 4.9 “
+ 8.5 “
+ 5.0“
+ 50.8%
+ 62.5 “
— 20.4 “
+101.8 “
+ 18.9“
+ 20.8 “
.
Production......................
.
Shipments .......................
.
Orders booked ...............
.
Orders on hand ............
.
Stocks on hand ..............
Number of operatives on payroll. .
PAPER
January was the poorest month for the paper trade
since last July, which was the worst period of 1921.
Tonnage sales by manufacturers compared favorably
with those of January, 1921, but production was less,
for a year ago mills had not curtailed operations in
accordance with the lessened demand, and conse
quently were rapidly building up stocks.
A n im
provement in the demand for paper began early in
February. In some cases this was appreciable, but
in general the betterment was slight, and business is
still considered to be well below normal, even for this
time of the year. A larger volume of definite in
quiries is being received, and some of them are de
veloping into actual orders. Individual orders are
still small and for immediate needs, as no one is buy
ing for the future; but they are larger than they were
last February. The above situation is characteristic
not only of fine and book papers, but also of coarse
papers. The latter, which, were selling better than
the other grades last fall, have now come down to the
same level.
Operations of mills throughout the industry aver
age about 60 per cent of capacity. Some manufac
turers report that they are doing better than this and
are not accumulating stocks. But they add that the
volume of unfilled orders on hand is small, and that
unless new orders are received shortly, production
will have to be curtailed. Newsprint production, an
exception to the general rule, is slowly increasing,
along with enlarged sales resulting from the gradual
resumption of newspaper advertising.
Stocks in the hands of merchants and consumers
are practically stationary.
They are, in general,
small. W ith the exception of a few who have built
up normal supplies, dealers are not stocking up, and
are keeping on hand only sufficient amounts to fill
their needs. Manufacturers accumulated finished
paper to a certain extent during January, but they
are gradually curtailing production in such manner
as to balance it with shipments as nearly as possible.
The prices of paper have been firmer within the
past sixty days than for several months. There have
23
been a few adjustments among the different grades,
but no general tendency toward a change in either
direction was noted. A supply of wrapping paper
was on the market last month at a lower price, but
it was all quickly sold, and the previous quotation
again prevails. Dealers report that in the case of
particularly attractive offers special concessions from
the list prices are granted by manufacturers.
But
this has always been done, and the merchants are
usually forced to give their customers the advantage
of this concession because of competition. Importers
state that foreign manufacturers are raising their
prices, so that it is now less profitable to import paper
than it was a few months ago. The bids for furnish
ing paper to the Government Printing Office pro
vide some interesting data regarding the decline in
few operators went into the forests this season, as it
was thought that the enormous supplies left from last
season would be sufficient. Another factor was the
inability to finance new operations while so much
money was still tied up in carrying old stocks. Paper
manufacturers are not contracting for pulp as read
ily as in previous years because of uncertainty as to
future prices. Many other costs of production have
been lowered materially. Several relatively small
wage reductions have been recently effected by some
of the manufacturers.
A n increasing number of firms report that collec
tions are poor. Those who find them good, gener
ally state that extreme care is necessary to keep them
from lagging.
The following tables are presented to show the to-
STATISTICAL SUMMARY OF THE PAPER INDUSTRY
Stocks
Jan. 1 , ’21
Production
1921
Shipment
1921
Stock
Dec. 1, ’21
Production
1920
Production
1919
Production
1919 Census
Newsprint .......................
Wrapping........................
Book ...............................
Board ............................ .
F in e .................................
Building & F e lt................
Tissue .............................
Hanging..........................
All other ........................
24,763
38,831
25,005
53,104
30,312
13,420
8.774
3,027
17,160
1,226,189
782,468
725,992
1,664,931
242,485
286,111
148,142
69,725
210,274
1,227,018
769,366
712,240
1,655,017
238,797
291,059
150,731
64,970
207,871
23,127
53,955
37,060
59,780
33,389
6,739
5,811
8,856
20,210
1,511,968
1.043,812
1,104,464
2,313,449
389.322
366,941
177.447
113,824
313,387
1,374.517
869,631
914.823
1,950,037
343,762
281.962
155,400
92,136
208,093
1,324,000
932,000
961.000
1,885,000
325,000
195,000
191,000
69,000
160,000
Total paper.......................
214,396
5,356,317
5,317,069
248,927
7,334,614
6,190,361
6,124.000
STATISTICAL SUMMARY OF THE WOOD PULP INDUSTRY
Stocks
Jan. 1, ’21
Production
1921
Shipment
1921
Used
1921
Stock
Dec. 1 , ’21
Production
1920
Production
1919
Production
1919 Census
.........
.........
.........
.........
.........
129,626
28,547
7,850
6,507
119
1,268,012
1,105,905
148.165
272,287
7,069
97,659
278,119
34,194
95,668
546
1,176,899
826,349
114.164
174,102
6,464
115,363
28,699
7,979
6,306
208
1,578,300
1,576,676
212,888
431,971
7,821
1.449,799
1,385.706
161,887
377,473
9,903
1,519,000
1,420.000
120.000
412,000
48,000
Total p u lp ..................... .........
172,729
2,801,438
506,186
2,297,978
158,555
3,807,656
3,384,768
3.519,000
Ground ..........................
Sulphite .........................
Sulphate.........................
S o d a ...............................
Other than wood pulp...
paper prices during the past year. The lowest bid
on a certain grade of newsprint was 3.79 cents a
pound, whereas the item was awarded last year at
5.48 cents; a sized and super-calendered printing
paper, bought last year for 8.34 cents, was offered
this year for 6.92; and a grade of white writing
paper was 6.88, as against 9.4 cents last year. These
prices are given to illustrate the decline which has
occurred since last year, and not to provide quota
tions at which consumers may now buy paper, for
these are special bids on large contracts and naturally
do not exactly correspond to open market prices.
Wood-pulp, as well as paper, has been steady in
price for the past ten weeks. Manufacturers are still
making pulp from high-priced wood, and although
wood could be cut this year at materially lower costs,
tal production of paper and wood-pulp during 1921,
compared with that in previous years, as compiled
from Federal Trade Commission statistics. The 1921
figures are subject to revision. The 1919 United
States Census findings, which are considered fairly
exact, are given to show the relative accuracy of the
Trade Commission reports. The discrepancies are
largely due to different methods in distributing the
many various grades. It will be noticed that the to
tal production of both wood-pulp and paper was
about 27 per cent less last year than in 192CL. The
decline among the different grades of paper varies
from 14 per cent in news to 37 per cent in fine papers,
and 38 per cent in wrappings. Shipments in 192I
were slightly smaller than production; therefore
stocks are a little larger than they were last January-
■ T e production of ground wood-pulp fell off only 19
h
per cent, whereas sulphite and sulphate were off 30
per cent, and soda pulp 37 per cent. Stocks, how
ever, decreased during the year, as most of the pulp
made is used by the manufacturers in their own paper
nulls, and they have curtailed production in accord
ance with their needs.
ufacturers who have large supplies of board on hand
have been able to economize, for these stocks were
for the most part bought at prices considerably lower
than present prices.
Plants are being operated at about 60 per cent of
capacity, which is approximately 75 per cent of nor
mal for this season. Production usually corresponds
almost exactly with sales, as most boxes are made
upon specification, and few orders are filled from
stock. This policy has been more strictly adhered to
within the past year, when demand has been so fickle
and orders so small. Manufacturers are not buying
any more board than is necessary, and recent attempts
to raise prices further have not been successful.
Collections have become worse within the past few
months, and in only a few cases are as good as fair.
PAPER BOXES
I he demand for paper boxes continues to be as
uncertain as it has been for several months. Some
manufacturers last month reported an improvement
at that time. Others who in their present reports
state that business in January was poor, note some
betterment in February. It seems the distribution of
available orders among the different manufacturers
yaries from month to month. In general, therefore,
d may be said that the aggregate volume of sales
paper boxes is practically unchanged. Manufac
turers who supply confectioners are busier than
others, as that trade is now preparing for Easter
business.
Since last January, sales have increased in volume,
although in some cases they are smaller in dollars.
As compared with 19T9 and 1920, during which
I ears the industry was at the height of its activity,
me number of boxes sold has fallen off materially*
here is, however, a growing tendency to compare
Present conditions with those prevailing prior to
*9*9 rather than with those existing during that
abnormal year. This gives a more favorable result
as regards volume of sales.
bhe margin of profit, howrever, is much smaller
n° w> for the liquidation in costs has not been pro
portionate to the combined reduction in selling prices
and in the volume of trade. It is being more gen
ia lly recognized that these costs must be diminished
bef
°re the industry can be restored to a normal status,
fo
r any attempt to increase selling prices have heretofo
jre met with failure by reason of severe com
panion. The chief raw material, box-board, is cheap
enough; in fact, its price is said to be below the cost
j Production. And although it is still higher than
was last summer, when board declined to a level
^°nsidered in pre-war days to be a fair price, it is
materially higher. Labor costs, however, have
inished only insofar as the efficiency of the
rkers has increased, for wages have been reduced
slightly. Another reduction in costs has been
. ed by keeping stocks as low as possible, thus
lng down carrying charges; and even those man-
CHEMICALS
25
Marked apathy still exists in nearly all branches
of the chemical industry. The improvement that was
expected with the coming of 1922 has failed to de
velop, and the present situation is but slightly better
than that of last summer. However, the outlook is
not altogether discouraging. In spite of the small
demand and the severe competition, prices in most
cases have ceased to decline, and have remained
fairly stable at the low levels reached last summer.
Indeed, some products, notably vegetable oils and
crude drugs, have advanced. Coal tar intermediates,
on the other hand, have fallen still further. But
fluctuations in quotations are insignificant in extent
as compared with the violent movements which oc
curred during the early part of last year.
Business in coal tar products, both dyes and inter
mediates, has been virtually at a standstill for several
months. In fact, the manufacturers of these products
have probably suffered more severely from the read
justment than has any other group in the chemical
industry. This has been due largely to the uncer
tainty that has existed as to what measures, if any,
Congress would take for the protection of the indus
try. Both consumers and producers have been faced
with the possibility of the unrestricted importation, in
the near future, of low-cost German dyes. Indeed,
in spite of the licensing regulations, which are sup
posed to prevent the entry of competing dyes, Ger
man competition in the domestic market has already
been much in evidence. Furthermore, the present
productive capacity of the industry is several times
larger than normal domestic consumption, and con
sumption at present is considerably below normal.
owing to the continued inactivity in many dye-con
suming industries.
Naturally, consumers have been led to purchase
only in small quantities and for immediate delivery.
Prices, of course, are extremely weak, as sellers are
willing to accept almost any figure in order to reduce
their stocks. Manufacturers have been forced to cur
tail production to only a fraction of their plant
capacity, and frequently this has meant a cessation of
research work, a deterioration of plant and equip
ment, and a disruption of their technical staffs. The
result has been that the industry now is in a worse
position to withstand foreign competition than at
any time since the war.
German competition has also been felt in the fer
tilizer industry. A recent contract entered into
between thirty-four of the principal American dis
tributors of potash and the German potash syndicate
provides for the purchase in Germany of 75 per cent
of the needs of the American group and at prices far
below those of American producers. The result
is that the Germans are again in virtual control of
the potash market. Demand for fertilizer, however,
is very poor, and local firms report that operations are
at only about 50 per cent of normal. This is, of
course, a natural result of a notoriously poor agri
cultural year and of greatly lessened purchasing
pow'er. Demand will no doubt improve somewhat
with the approach of spring, but present indications
are that the farmers will not be able to purchase nor
mal quantities of fertilizers this year.
The position of the pharmaceutical industry, at
least in this district, is much more satisfactory than
that of either the dye or the fertilizer industry. In
deed, some firms report that current business com
pares very favorably with the pre-war business.
Prices have been fairly stable for several months past,
although at a level which is still 35 per cent above
1914 quotations. Some chemicals, however, such as
glycerine, sodium bromide, and citric acid, have fallen
below pre-war levels. German competition, which
has been felt in the past, has lessened somewhat with
the exhaustion of foreign stocks and the recent rise
in exchange rates.
In the market for heavy chemicals also, the im
provement in foreign exchange has lessened the vio
lence of foreign competition. A buyer’s market still
exists, however, and producers are willing to make
liberal price concessions in order to obtain enough
business to keep their plants operating. But in spite
of these occasional concessions, the general level of
prices has fluctuated only slightly since last August.
Demand is somewhat broader than it was during
December and January, and as both consumers’ and
producers’ stocks are very low, any general industrial
improvement is likely to be felt in this industry im
mediately.
RUBBER
A fter passing through a period of rather severe re
adjustment in the year 1921, during which several
large companies found it advisable or necessary to
reorganize, the rubber industry is now on a more
stable basis. The demand for some rubber products
is almost 100 per cent greater than it was at this time
last year, and several firms report an improvement,
especially since the first of January. W ith some ex
ceptions, a small increase in the demand for rubber
products has been noted each month since July, 1921.
This is almost imperceptible if compared simply
from month to month, but over a stretch of ten or
twelve months, the improvement is very noticeable.
The crude rubber market, for a time, was com
paratively inactive, for although there were a num
ber of inquiries at current prices, holders of rubber
declined to sell. The continued reticence of buyers,
however, has induced some holders to make slight
concessions, although these have been only fractional
and are considered inconsequential. Many of the
largest consumers of crude rubber, chiefly the tire
companies, are well stocked, but if tire production in
creases, manufacturers will soon be in the market for
additional raw material.
Almost without exception, orders received thus far
this year are for small quantities of goods for immedi
ate delivery. Jobbers, however, are an exception,
and a large portion of their present business is for
seasonable goods, such as garden hose, can rubbers
and miscellaneous articles for the spring trade.
Manufacturers of mechanical rubber goods, such as
packing, high-pressure oil hose, belting, etc., are
doing a fair volume of business, notwithstanding the
fact that many of the largest users of these products
are in the market only in a small way. Sales of tires
have been a bit slow since December, but manufactur
ers and dealers are optimistic and look forward to
a good business this year. The sales of one large
firm have been about 60 per cent of normal, meas
ured in dollars, and about 80 per cent of normal in
units, with approximately 75 per cent of the orders
for immediate delivery and 25 per cent for future
delivery. Vulcanized fiber products include a wide
variety of articles and are supplied to railroads, tex-
We mills, automobile companies, and trunk manu
facturers. These are all lines that have been rather
dull for some time, but the increasing number of in
quiries coming in is encouraging, and business is
better.
Production is being fairly well maintained, rates
°f operation varying from 40 per cent to 100 per
cent of capacity, depending upon the product manu
factured. Most plants are operating with a smaller
complement of men, and in some instances are only
Working a portion of their plant three or four days a
week. The number of unfilled orders on the books is
n°t sufficient to continue operations at the present
rate for more than one month. The average rate of
production of the reporting firms in this district is
about 75 per cent of capacity.
Stocks have been steadily decreasing since November, 1921. Manufacturers and dealers alike are
depending upon their ability to expand the producbon facilities of their plants to take care of any quickening of demand that may occur. They do not wish
to repeat their experiences of a year ago, when they
found themselves with huge accumulations of stock
for which there was practically no call. Some manufacturers, who are more optimistic than others, are
accumulating a small surplus in anticipation of the
spring trade. This, however, is being done in a very
conservative manner.
During the latter part of January, the price of
£rude rubber dropped about six cents per pound, and
0r a time the market was very unstable. Now, the
f°ne of the market is more firm and quotations are
b^ore dependable. The sudden drop in the price of
^
rude rubber is attributed to forced liquidation in the
London market, accompanied by a falling off in delTland in the face of increased importations. Prices
^f all finished products have been materially reuced, but no changes have been made recently.
ractically all rubber products are selling at from 20
0 60 per cent less than they were in 1920, and in
pme instances at even greater reductions. Quotal0ns on cotton fabric, such as is used in the manufacUre of tires, rubber hose, belting, etc., are lower than
^ auy time since the war, and bids are being asked
r. L ow raw material prices have helped greatly in
ecting lower prices on finished products in the rubindustry.
*ne labor situation continues to improve, and in
s°me plants labor costs have been cut in half. The
auction in wages does not amount to more than 15
^ r cent in any case, and in some instances no re
g io n s have been made, employers feeling that it
is not desirable to attempt a reduction of wages until
they are sure that living costs will drop still further.
The supply far exceeds the demand, both for skilled
and unskilled workers.
Collections are rather slow, especially in the West
and South, but are not generally considered to be any
more difficult than they have been for the past three
months.
FURNITURE
During the month of December manufacturers of
furniture reported a steady improvement, and busi
ness with them was about normal for that period of
the year. A t the same time retailers of furniture
were busy with the Christmas trade. Since the first
of the year, however, an appreciable change in the
demand has been noted. Retail sales of furniture
have been very disappointing and the volume of busi
ness being transacted is small. Firms conducting
February furniture sales report that buyers manifest
little or no interest and that thus far such sales have
been unsuccessful. The retailer is confronted with
a difficult problem because of impaired purchasing
power resulting from wage reductions and increas
ing unemployment. On the other hand, manufactur
ers have noted but little change in the demand for
their products. Practically all orders now are for
immediate delivery and for the most part are smaller
in size than those received during the same period
last year. Furthermore, business is hard to get and
men on the road find selling very difficult. Dealers
feel that they are in a position to buy in only a very
small way.
Dark stained woods, mahogany and
black walnut, are in most demand, but there is also
a fair call for decorated white and gray enameled
finishes. The lighter colored woods, such as bird’seye maple and Circassian walnut, are not selling as
well as formerly.
Manufacturers, for the most part, are proceeding
at about the same rate of operation as they were two
months ago, but in no instance that has been reported
to us have they a sufficient number of unfilled orders
on the books to insure operation at their present
rate for more than one month.
Some firms are
manufacturing at a rate which is somewhat better
than normal for this time of the year. This is due
primarily to the fact that their stocks were depleted
during December and that they are not yet in a posi
tion to ship current orders from stock. The average
rate of operation for the reporting firms in this dis
trict is 85 per cent of capacity.
W ith the exception of novelties, which advanced
slightly on January i, practically all furniture has
shown a tendency to decline in price, and in some in
stances reductions have been made of from io to 15
per cent. Certain raw materials have increased in
price; others have decreased. Lumber, for example,
has advanced approximately 25 per cent since Octo
ber 1, 1921, but glass is slightly lower than it was a
month ago.
The labor situation in the furniture industry is
practically unchanged, and no trouble has been re
ported. Unskilled labor is plentiful, but skilled labor
is still at a premium and no reductions in this class
have been made except in the case of new employees,
who have been engaged at slightly lower wages.
Collections for the most part have been very slow,
and even good accounts are taking more time than
usual. In no instance has any improvement been
noted during the past three months, and retailers sell
ing on a credit basis report many requests for ex
tensions.
OFFICE APPLIANCES
The market for office appliances has shown en
couraging tendencies during the past month. A l
though the demand is only slightly heavier, the gen
eral tone of the market is stronger and a better senti
ment prevails. For some firms, January was an ex
ceptionally good month, and one firm in particular
found it to be the best in the history of its business
in this city. Others, however, reported a decrease in
sales for January as compared with those of Decem
ber. There has been no actual decrease in the need
for office appliances, but most institutions are buyingonly such equipment as is absolutely necessary. Dur
ing the months of December and January, a consid
erable quantity of filing equipment was sold, but this
was merely a seasonal spurt resulting from the fact
that the records of the past year’s business are stored
at this time. A s compared with the orders in previous
years, orders received thus far this year are smaller
in size; and it is much more difficult to secure or
ders than has been the case in the past. Typewriters,
both portable and standard sizes, are selling well.
The demand for office furniture, calculating ma
chines, billing machines, adding machines, etc., is
poor. This is the result of unstable business condi
tions and of the desire on the part of all firms to
economize. Most of this equipment is expensive,
and very often second-hand equipment is purchased
when such appliances are absolutely necessary.
Except in the case of certain filing equipment and
office furniture, the prices of which have declined
from 20 per cent to 50 per cent since January, 1921,
prices are practically unchanged. It is the policy of
some firms to maintain a standard price, and as these
made no increase during the war they have made no
reductions since the war. Firms that advanced prices
during the war either reduced prices to the pre-war
level shortly after the armistice or have since made
reductions in keeping with the reduced cost of pro
duction. Prices of miscellaneous articles are an ex
ception, however, and are constantly changing.
Stocks of office appliances are not large and are
for the most part decreasing. There is no inclina
tion to accumulate a surplus, and from 65 to 90 per
cent of all orders are being filled from stock. For a
time, however, some firms experienced a little diffi
culty in making prompt delivery on orders for filing
equipment; but with this exception, stocks have been
sufficient to meet all requirements. The shortage in
the stock of filing apparatus is attributed to the fact
that the demand for this equipment was much greater
than was anticipated.
Collections remain practically unchanged. Some
firms have found them to be good; others, only fair.
WHOLESALE GROCERIES
The decline in wholesale grocery sales, which be
gan in November, continued through January. Total
sales in that month, as expressed in dollars, were 7
per cent less than in January, 1921, and smaller than
in any month of last year. It may still be said,
however, that the largest part of this decline is ac
counted for by the fall in prices since last year. The
Bureau of Labor Statistics index number of food
prices for last January was 162, and on February 1,
1922, was 134. It is true, sales usually fall off at this
season, and business is dull during the first two
months of the year. But one firm reports that this
year it had the poorest January in 20 years. No
change in the situation has occurred in February.
The demand is particularly poor in the mining dis
tricts.
Retailers are buying conservatively and only for
immediate needs. For this reason, it is thought that
retail stocks must be low. Some wholesalers report
that their supplies are heavy, others that they are
lig h t; but all are agreed that they have enough goods
in stock to supply the demand as long as customers
continue to buy sparingly. Consequently wholesalers
are also purchasing in small lots.
28
Prices of grocery products are variable. On some
lines there is a definite upward tendency, on others
a downward trend; but the great majority are firm.
Hour has been rising in response to improvement
ni the grain markets. Canned goods are particularly
strong, and the increase in prices noted last month
lias continued. Manufacturers of evaporated and con
densed milk recently announced reductions ranging
from 25 to 35 cents per case on condensed milk and
bom 40 to 50 cents on evaporated. The rapid decline
ln butter and eggs, which began in December, was
checked last month, and these products have since
been fluctuating but slightly— around 36 cents for
butter and 43 cents for eggs. Sugar has been firm
since January 21, when refiners raised their prices
to 5 cents. Most of them later announced another
advance to 5.10, then returned to the 5-cent level
early in February, but again raised quotations to
a-10 on February 20. Cuban raws were fairly steady
during the month, but at one time they fell to as low
as 2 cents, equivalent to 3.61 cents, duty paid. The
uiarket recovered quickly, however, and on February
a price equal to 3.79 cents was paid. Receipts of
raw sugars at Atlantic ports have been heavy, and
beltings by refiners were at one time almost at the
Maximum.
Collections are even poorer than they were last
110nth, as is shown by the increase in the ratio of
accounts to sales. Many firms have restricted sales
to only their most reliable customers, and a larger
Percentage of business is being done on a C. O. D.
basis.
WHOLESALE GROCERY TRADE
,
yoer o f reporting firms—48
January, 1922,
compared with
December, 1921
January, 1922,
compared with
January, 1921
Ac' Sa,es during January..............
Unts outstanding January 31..
—7.0%
—3.2’*
who were expecting business to continue fairly good,
or to show only a slight seasonal recession, are dis
appointed, for sales during January were no greater
than in the same month of 1921, which in turn was
the poorest month in years.
A s shown in the accompanying table, December
sales were almost as small as those of January, 1921.
A slight improvement has been reported since the
first of February, but buying is still far from being
active.
O f the factories that were closed immediately after
Christmas, some reopened early in January, but
others waited longer, and many are still not operat
ing. Only a few makers of certain popular brands
are producing cigars in any appreciable volume. In
factories that are running, stocks are piling up, but
that is usually the case at this time of the year when
preparations are made for the spring demand. Dealers,
as a rule, have small stocks on hand. Some are still
supplied with goods of questionable quality, which
they were able to buy at bargains, and these they are
using to help supply the demand for cheap cigars.
These cigars, remnants from the halcyon days when
anything would sell, have had a demoralizing effect
upon the market for some months.
—15.2%
— 4.3“
v.
Ratio of accounts outstanding to sales:
January,
1922...........................................116.6%
December, 1921........................................... 115.3“
November, “ ............................................ 112.6“
October,
“ ........................................... 108.3 “
September, “ ........................................... 105.8 “
August,
“ ............................................. 98.3“
TOBACCO
Cigars
jj Dc
, erriand for cigars is light. In fact it is much
(}f U.er than was expected, for this season, and proover10n *S
^eing curtailed. Distributors from all
°rde
country have temporarily revoked standing
to F > an<^ re(juest only occasional small shipments
S
rtleet their requirements. Most manufacturers
29
NUMBER OF CIGARS AND CIGARETTES UPON WHICH STAMPS WERE SOLD
(Collector of Internal Revenue)
Dec., 1920
Class A ..........................................................................
Class B ..........................................................................
Class C ...........................................................................
Class D ...........................................................................
Class E ...........................................................................
Total, large cigars..........................................................
Small cigarettes .............................................................
A s reported last month, most of the better known
brands of eight-cent cigars were lowered in price at
the first of the year. The shift in demand from the
high-priced to the cheaper grades is shown in the
accompanying table, giving the number and the
classes of cigars upon which stamps were sold. It is
noted particularly in the last two columns, giving
yearly totals, that production of cigarettes and of the
cheaper grades of cigars has increased within the last
year, while the output of the higher classes of cigars,
with one exception, was decreasing. The accom
panying chart, drawn on a logarithmic scale, shows
the long-time growth of the production of cigarettes
as compared with the relatively static position of the
cigar industry within the last fourteen years.
Collections are ordinarily prompt in the cigar
industry, but recently they have been somewhat
slower.
L eaf
The leaf markets continue to be dull. Spasmodic
buying is reported at intervals from the different
growing regions, but except in a few sections, the
Dec., 1921
Total, 1921
Total, 1920
127,046
195,535
150,971
147,317
158,201
106,689
176,891
245,148
191,603
9.718
12,398
10,725
1,826
3,968
3,776
462,798
615,251
463,664
3,901,560 4,229,401 2,995,934
2,043,519
1,883,215
2,652,684
147,825
31,506
6,758,749
50,880,078
1,792,701
2,500,973
3,481,573
136,082
55,693
7,967,021
44,645,823
Jan., 1921
119,334
148,355
217,745
16,653
4,040
506,127
2,816,818
Nov., 1921
largest part of the 1921 crops is still in the hands of
the growers. The quality of the product in general
is poor, and good leaf is relatively scarce. Never
theless, prices on the few transactions that have taken
place are lower than those of recent years. The Lan
caster County crop is moving very slowly at prices
ranging from 12 to 15 cents, as compared with 16 to
20 cents at the same time last year.
The Government’s estimate of stocks of leaf to
bacco in the warehouses of dealers and manufacturers
in January is slightly larger than that of the same
date last year, but as a rule smaller than the estimates
of July 1 and October 1, 1921.
POUNDS OF LEAF TOBACCO ON HAND
Types
( 000’s omitted)
Jan. 1,
Oct. 1,
1922
1921
July 1.
1921
1921
Jan. 1>
60,370
68,141
66,618
63,678
New England ............
2,647
4,022
3,554
3,547
New York .................
69,445
93,622
69,854
83,072
Pennsylvania ..............
70,173
71,414
76,225
78,303
Ohio ...........................
77,181
82,767
93,475 103,535
Wisconsin ...................
7,944
5,544
8,312
9,499
Georgia and Florida...
9,541
7,698
7,866
9,408
Porto Rico ................
Aggregate—all types.. 1,561,848 1,547,440 1,672,017 1,446,914
30
The recent questionnaire, which was sent to the readers of this review, for the purpose of securing
their suggestions and comments, elicited many encouraging and helpful replies.
We take this opportunity
of thanking those who so promptly sent us their estimates of the value of our publication.
COMPILED AS OF FEBRUARY 23, 1922
This business report will be sent regularly without charge to any address upon request
31
RESOURCE AND LIABILITY ITEMS
of Member Banks
In Philadelphia, Camden, Scranton and Wilmington
(000’s omitted)
CHARGES TO DEPOSITORS’ ACCOUNTS
other than banks’ or bankers’, as reported by Clearing Houses
F e b . 1 5 ,1 9 2 2
J a n . 1 1 , 1922
A t the close o f b u sin e ss
F e b . 16 , 1922
F e b . 8 , 1922
Altoona................ 32.396.000
3.403.000
Chester................
5.604.000
Harrisburg...........
3.475.000
Johnstown............
4.604.000
Lancaster.............
Philadelphia......... 267,429,000
6.397.000
Reading...............
Scranton.............. 12.867.000
Trenton................ 12.081.000
8.095.000
Wilkes-Barre........
3.765.000
Williamsport........
6.257.000
Wilmington..........
3.199.000
York....................
32.727.000
4.276.000
7.902.000
3.973.000
4.636.000
322,254,000
8.448.000
16.385.000
11.495.000
9.421.000
4.158.000
8.486.000
5.447.000
32.930.000
5.430.000
5.900.000
4.227.000
4.790.000
282,597,000
6.228.000
15.151.000
11.387.000
8.256.000
3.699.000
7.627.000
3.437.000
Loans and discounts:
Secured by U. S. securities
Secured by other stocks
and bonds.................
All other.......................
Investments:
United States bonds. . . .
U. S. Victory notes.......
U. S. Treasury notes... .
U. S. certificates of in
debtedness.................
Other bonds, stocks and
securities...................
Total loans, discounts
and investments... .
Demand deposits............
Time deposits.................
Borrowings from Federal
Reserve Bank..............
Totals............... 3339,572,000 3409,608,000 3361,659,000
STATEMENT
Federal Reserve Bank of Philadelphia
(000’s omitted)
3196,531
9,089
3210,899
10,224
3176,254
2,992
3205,620
Total reserve..........
Discounts—secured by U.
59.502
S. securities.................
20,472
Discounts—all other.......
17,229
Purchased bills...............
22.502
U. S. securities................
191
Municipal warrants........
3221,123
3179,246
57,739
12,797
12,973
19,307
191
109,390
47,521
23,810
32,716
Total earning assets.. 3119,896
52,754
Uncollected items...........
1,483
All other resources..........
3103,007
44,054
1,411
3213,437
57,027
2,539
3379,753
3369,595
3452,249
F e b . 1 5 ,1 9 2 2 J a n . 1 8 ,1 9 2 2
F e b . 1 8 ,1 9 2 1
L IA B IL IT IE S
38,748
17,945
6,380
97,092
1,378
38,728
17,945
4,988
102,515
1,242
Total deposits.......... 3104,850
185,907
Federal Reserve notes_
_
Federal Reserve Bank
7,863
notes...........................
Deferred availability items
53,763
All other liabilities..........
677
3108,745
183,821
3379,753
2 0 4 ,0 2 1
3 2 3 ,6 2 6
1 9 4 ,9 2 8
4 1 2 ,0 4 2
4 8 ,0 5 7
7 ,9 2 2
2 2 ,4 8 4
4 7 ,3 5 5
1 2 ,7 6 3
4 ,8 6 2
4 5 ,7 0 0
1 2 ,2 5 5
8,980
8 ,5 5 2
1 2 ,0 1 6
1 6 2 ,2 5 3
1 6 4 ,7 8 1
1 5 5 ,2 8 2
3 8 3 0 ,3 2 7
6 2 3 ,8 3 9
4 7 ,5 6 2
3 8 1 4 ,2 6 6
6 2 5 ,9 3 5
4 6 ,3 6 0
3 9 0 5 ,2 4 3
6 5 3 ,2 2 2
3 8 ,2 8 0
32,507
33,794
1 1 3 ,9 1 3
P re v io u s
m o n th
3633,902,000
600,404,000
+ -8% -1 1 .3 %
- i . o % - 4.0%
106%
373,284,447
72.4%
4H %
4H %
J a n u a r y , 1922
104%*
Y e a r ago
114%*
+3.0% —51.9%
75.7%* 53.3%*
6%
W /0*
7%%*
4H%*
P re v io u s
m o n th
Y e a r ago
Bank clearings:
In Philadelphia........ 31,701,000,000 -1 0 .7 % — 8.2%
Elsewhere in district.
141,799,000 -2 4 .1 % - 4.5%.
Total.................... 31,842,799,000 - 1 1 .9 % — 7.9%
Building permits,
Philadelphia............
4,411,320 +43.7% +292.3%
Post Office receipts,
Philadelphia............
1,236,760 -2 1 .5 % — 2.9%
Commercial failures
in district (per
96*
m
Dun’s).....................
124*
Latest commodity in
dex figures:
Annalist (food prices
only)....................
173.157
+8.3% - 6.5%
Dun’s......................
164.974
+ .3% —11.2%
%
Bradstreet’s .............
11.419
+ +% - 7 .7
•Actual figures.
—
3452,249
Total liabilities........
2 1 4 ,2 3 8
3 2 0 ,6 2 0
P e r c e n ta g e in c re a s e or
d e c re a se c o m p a re d w ith
19,522
43,311
2,032
3369,595
90-day discount rate..
Commercial paper___
3107.694
254,110
6,874
43,021
461
Philadelphia banks:
Loans......................
Deposits..................
Ratio loans to de
posits ...................
Federal Reserve Bank:
Discounts and col-
38,570
17,010
3,297
102,738
1,659
Capital paid in................
Surplus...........................
Government deposits. . . .
Members’ reserve account
Other deposits................
3 7 3 ,0 2 0
F e b . 2 0 ,1 9 2 2
F e b . 1 8 .1 9 2 1
Total resources........
3 4 8 ,3 0 6
P e r c e n ta g e in c r e a s e or
d e c re a se c o m p a re d w ith
J a n . 18 , 1922
Gold reserve...................
Other cash......................
3 4 5 ,7 7 3
BUSINESS INDICATORS
F eb . 1 5 ,1 9 2 2
R E SO U R C E S
J a n . 1 1 , 1922 F eb . 11, 1921
J
32
@FedFRASER