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BUSINESS AND FI NA NCI AL
CONDITIONS
THIRD FEDERAL I p A
PHILADELPHIA
RESERVE DISTRICT
MARCH I. 1923
MX
By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent
FEDERAL RESERVE BANK of PHILADELPHIA
SU M M A R Y OF BUSINESS CONDITIONS
IN THE UNITED STATES
Further increase in the volume of production in basic
industries to a level higher than in 1919 or 1920, a
continued advance in the prices of many basic com
modities, additional borrowing from banks for commer
cial purposes, and somewhat higher money rates are the
principal recent developments in the business situation.
Production in basic industries, as measured by the
Federal Reserve Board’s index, was 6 per cent higher
in January than in December, and
Production
reached a volume exceeded only once
in the past, in May, 1917. Production
o f steel ingots and of anthracite coal, and mill consump
tion of cotton showed particularly large advances, and
most other important industries increased their output.
Building operations have been maintained on a large
scale.
The expansion in production during January was ac
companied by a substantial increase in freight ship
ments. Car loadings of forest products, reflecting the
continued building activity, reached the highest monthly
total on record, and loadings of merchandise and mis
cellaneous commodities were higher than in any January
of the past four years.
Industrial employment continued to increase during
January, and shortages of both skilled and unskilled
labor were reported by textile mills, steel mills, and
anthracite coal mines. More wage increases at indus
trial establishments were announced than in December.
There is still some unemployment in states west of the
Mississippi. In industrial and commercial centers there
has recently been a larger demand for office workers,
although throughout the country there is much unem
ployment in this group.
The index number of the Bureau of Labor Statistics,
computed from the wholesale prices of about 400 com
modities, including finished and semi-finPrices
ished products as well as raw materials,
showed the same average level of prices
in January as in November and December. Between
December and January the prices of clothing, fuel,
metals, building materials, chemicals and house furnish
ings advanced, but these advances were accompanied
P R IC E S
IN D E X NUMBERS OF WHOLESALE P R IC E S
BASE ADOPTED BY U.S. BUREAU OF LABOR STA TISTIC S
MONTHLY A.VE.RAOE 19l3 - <
OO
PER CENT
300
250
1
150
. . .
0
1919
1920
1921
1922
1923
BANK CREDIT
by declines in farm products and food, so that the com
bined index remained unchanged. During recent weeks
the prices of a number of basic commodities advanced
rapidly and in many cases reached the highest points
since 1920 or the early part of 1921. Among commodi
ties reaching new high levels for the current movement
were corn, beef, cotton, wool, silk, hides, lumber, rubber,
linseed oil, copper, lead and pig iron.
An active distribution of goods for this season of the
year is indicated by reports to the reserve banks both of
wholesale and retail dealers for the month of
Trade
January. Sales of department stores in over
100 cities were 12 per cent larger than in
January, 1922. Inventories for January show that there
has been no large increase in stocks of goods held bv
department stores, and the rate o f turnover continued
rapid. In wholesale lines there were particularly large
sales during January of dry goods, drugs, hardware, and
farm implements.
The larger volume o f commercial borrowing at mem
ber banks in recent weeks has been contrary to the usual
trend of the season. Commercial loans of
reporting member banks on February 14
cre 1 were $243,000,000, or 3 per cent larger than
at the end of December, and 7 per cent above the level
at the end of July, when the general demand for credit
first showed an upward turn.
This increased demand for credit at the member banks
has resulted recently in an increased volume of borrow
ing by the member banks at the reserve banks, chiefly
Boston, New York, and Philadelphia. On February 21,
the loans to member banks were $628,000,000 or $248,000,000 higher than in mid-summer. During the same
period the volume of Government securities and
bankers’ acceptances held by all Federal reserve banks
declined $160,000,000, resulting therefore in a net in
crease of $87,000,000 in the loans and security holdings
of the reserve banks. The volume of Federal reserve
notes in circulation, which showed the usual post-holiday
decline in January, began to increase on January 31, a
week earlier than last year.
Money rates also showed a tendency to become firmer,
especially in recent weeks. The open market rate for
commercial paper, which was 4 per cent last summer,
rose during February from a range of 4J4-4J2 to a
range of 4j^-5 per cent.
On February 23 the discount rate on all classes of
paper at the Boston and New York reserve banks was
advanced from 4 to Al 2 per cent.
/
TABLE OF CONTENTS
PAGE
PAGE
Agriculture ................
Bankers’ acceptances
Bricks, building . . . .
B u ilding......................
Chemicals ...................
Cigars and cigarettes
Coal ..............................
Coal, anthracite.........
Coal, bituminous . . .
Coke ...................
Commercial paper . .
Cotton g o o d s .............
Cotton, r a w ................
Cotton, yarns ...........
District summary . . .
Drugs, wholesale . . .
Drygoods, wholesale.
Electrical supplies . .
29
7
14
13
12
27
15
15
16
16
7
18
17
18
3
12
11
15
Special Article:
Employment and wages ......................
Financial conditions...............................
Floor coverings........................................
Foreign exchange...................................
Furniture ..................................................
Groceries, wholesale................................
Hardware, wholesale.............................
Hides and skins.....................................
H o sie ry ......................................................
I r o n .............................................................
Leather .......................................................
Lumber ......................................................
National summary.................................
Paint ...........................................................
Paper ...........................................................
Paper boxes ............................................
Retail tr a d e ..............................................
R ubber,'crude.........................................
Rubber, mechanical goods....................
The Third Federal Reserve District
2
5
,
6
22
8
22
11
12
24
20
13
23
14
1
15
26
27
8
25
25
Rubber tires ...................................................
Savings deposits ..........................................
Securities .........................................................
Shoes ................................................................
Shoes, wholesale ..........................................
Silk goods.........................................................
Silk, raw...........................................................
Silk, thrown ...................................................
Steel ..................................................................
Summary, district ........................................
Summary, national........................................
Synopsis of business conditions................
Tobacco, leaf ................................................
U nderw ear.......................................................
Wholesale trade ............................................
W ool, raw .......................................................
Woolen and worsted goods......................
Woolen and worsted yarns........................
32
24
7
6
23
10
19
20
20
13
3
1
4
28
21
10
19
18
19
S U M M A R Y O F B U S IN E S S C O N D I T I O N S
IN THE
T H IR D F E D E R A L R E S E R V E D IS T R IC T
HE business situation during February has been
featured by large orders for almost all com
modities, by heavy production and by further
advances in price. During the first two weeks of the
new year there was a slight decline from the marked
activity o f the close o f 1922, but as the month pro
gressed, the buying activity steadily expanded and con
tinued to do so in February. Indeed, the demand for
some goods has become so strong that for the first
fame since the beginning of the readjustment period in
1920 their markets are in the sellers’ favor. Most of
the business is for delivery within the next few months,
and in many cases it is greater than producers can
handle in the desired time. A large volume o f orders
for shipment next fall has also been booked, but be
cause o f uncertainties as to future prices, many manu
facturers have refused to accept all o f the business
offered. As a result o f the heavy demand, productive
activity is large. Plants in this district, however, are
not operating at capacity, because of labor shortage and
delays in transportation. The scarcity of unskilled
workers in many industries is especially noticeable, and
with the approach of spring and the resumption of out
door activity that will accompany it, the shortage in the
factories and mills is expected to become acute. The
supply of skilled labor, too, is inadequate. The freight
situation has been relieved but little, and delays in
receiving raw materials have been a factor in re
stricting production.
Although these are serious problems, manufacturers
are more concerned over the matter of prices. The
resistance to higher quotations previously met in cer*am quarters is becoming stronger, and they fear that
further advances may check the present good business,
u some lines, it is true, the resistance heretofore noted
as disappeared, because of the scarcity of the goods
und the great desire to obtain them. But in these cases,
le uncertainty as to how high prices will move is
causing manufacturers to refuse much o f the business
ur distant delivery that is offered. The index number
all wholesale commodity prices, compiled by the
ureau of Labor Statistics, was the same in January
in December,— 156. But this was only because of
ecreases in the price o f farm products and foodstuffs.
T
for all of the other groups of commodities on which
this index is based increased in price. Further, current
reports from manufacturers indicate that the February
figures for several of these groups will be even higher.
The recent advances in quotations on manufactured
products is largely a result of increases in raw
materials. The index number of 20 basic commodities
published weekly by the Federal Reserve Bank of New
York averaged 148.4 for December and 150.6 for
January. For the weeks ending February 10, 17 and
24, the respective figures were 153.8, 155.5 and 158.1.
The demand in the iron and steel industry is per
haps greater than in any other. More orders for steel
products have been offered than can be handled, for
operations are restricted to about 80 per cent of capac
ity by the transportation and labor situations. The
demand for pig iron is not so great as that for steel
products, but it also is good, and more business for the
second quarter was received during February than
was anticipated. Iron and steel prices have continued to
advance, and premiums are being paid for prompt de
livery. The building outlook is good, and actual con
struction is larger than is usual at this season of the
year. Hence, the demand for all classes of building
materials has continued to be brisk. Large sales have
been made, not only for immediate delivery, but also
in anticipation of spring activity. The Bureau of
Labor Statistics’ index number of building material
prices was 188 in January, as compared with 185 in
December, and reports received by this bank during
February indicate that the prices of many building
materials are still advancing.
In the textile industries the demand as a whole has
continued to gain, and prices have advanced. Sales of
cotton goods have equalled those in January, and are
considerably larger than in February of last year.
Cotton yarn sales, however, have been less than in
January, because increased prices have met with con
siderable resistance. Both woolen and worsted yams
and cloths have been in greater demand than during
January, and the call for silk goods has increased con
siderably since the middle of that month. Most of the
business in silk goods has been for early delivery, but
many sales of fall goods have also been made. So
SY N O PSIS O F B U SIN E SS C O N D IT IO N S
COMPILED AS OF FEB. 23, 1923
THIRD FEDERAL RESERVE DISTRICT
F
B
D
u s in e s s
e m a n d
P
r ic e s
L
in is h e d
S
Good
S
it u a t io n
C
S
Bricks
a bo r
t o c k s
Firm
Light
u p p l y
W
o l l e c t io n s
a g e s
Unchanged
Good
j Some scarcity
Unchanged
Fair to good
Some scarcity
Unchanged
to higher
Good
Sufficient
Chemicals
Fair to good
Firm
Light,
decreasing
Cigars
Good
Firm
Moderate
Excellent
Firm
Declining
Light
Some scarcity
Unchanged
Moderate
Sufficient
Unchanged
Fair to good
Fair
Declining
Light
Some scarcity
Unchanged
Good
Scarcity
Some advances Good
Coal, anthracite
Coal, bituminous
Coke
Fair
Good
Cotton goods
Fair to good
Higher
Light,
decreasing
Cotton yarns
Fair
Firm
Moderate
Drugs, wholesale
Good
Fligher
Drygoods, wholesale
Fair to good
Fligher
Electrical supplies
Floor coverings
Good
Excellent
Firm
Furniture
Good
Firm or higher Moderate
Good,
slower
Light to
moderate
Normal,
increasing
Firm or higher Moderate
Light
Fair
Good
Sufficient
Sufficient
Unchanged
Unchanged
Fair
Good
Scarcity, skilled
Unchanged
to higher
Fair to good
Moderate,
decreasing
Groceries, wholesale
Generally
higher
Hardware, wholesale Good
Hosiery,
Fair
full-fashioned
Firm or higher Light
Firm to
Moderate
slightly lower
Hosiery, seamless
Firm to higher Moderate
Some scarcity
Scarcity,
unskilled
Fair
Poor
Fair
Sufficient
Iron and steel
Good
Firm or higher Light
Leather, belting
Good
Firm
Leather, heavy
Good
Firm
Heavy
Sufficient
Leather, upper
Fair to good
Firm
Moderate
Sufficient
Lumber
Excellent
Firm to higher Moderate
Some scarcity
Paint
Good
Firm to higher Moderate
Paper
Very good
Higher
Sufficient
Scarcity,
unskilled
Paper boxes
Good
Firm or higher
Rubber tires
Rubber,
mechanical goods
Shoes, manufacture
Shoes, retail
Shoes, wholesale
Good
Higher
Fair
Higher
Good
Fair
Fair
Firm
Firm
Firm
Fair, improved
Firm
Good
Good
Silk goods
Underwear,
heavy weight
Underwear,
light weight
Woolen and
worsted goods
Woolen and
worsted yarns
Moderate
Light
Light,
increasing
Moderate
Normal to
light
Normal
Normal
Normal
Light,
decreasing
Some scarcity
Scarcity, skilled
Unchanged
to higher
Unchanged
to higher
Unchanged
to higher
Unchanged
to higher
Unchanged
to higher
Unchanged
Unchanged
to higher
Unchanged
Unchanged
to higher
Unchanged
to higher
Some scarcity
Fair to good
Fair to good
Fair to good
Good
Good
Good
Good
Fair
Fair to good
Fair to good
Poor
Scarce
Unchanged
Fair
Some scarcity
Unchanged
Fair to good
Fair to good
Fair to good
Some scarcity
Unchanged
Good
Firm to higher Normal
Sufficient
Unchanged
Fair to good
Firm to higher Normal
Sufficient
Unchanged
Fair to good
Scarcity
Some advances Fair
Scarcity
Higher
Good
Higher
Good
Higher
Light,
decreasing
Light,
decreasing
4
Fair to good
large has been the demand that the production of silk
goods is proceeding at a higher rate than at any time
since 1920; indeed, some mills are working overtime.
No large increases in the price of silk goods have
occurred, because o f the resistance offered by jobbers
and retailers. Business in the hosiery industry has
improved considerably over that of January, and the
demand for underwear has been large. Manufacturers
of the better grades of carpets and rugs have for some
time been sold up for the balance of the season, and
linoleum manufacturers are over-sold.
Shoe sales during February were heavy, and by the
second week o f the month most of the manufacturers
in this district had booked all the orders they could
fill for pre-Easter delivery. As a result, the leather
markets have been very active, but increases in price
have been only slight.
Paper manufacturers reported that the demand fell
off somewhat in January, but it has improved con
siderably since that time and is now very good. Opera
tions in the paper mills are proceeding at as close to
capacity as the labor supply wfill permit. The turn
over of unskilled labor in the paper industry has been
especially high, and in an effort to retain the workers,
" ages have been raised to the level prevailing in other
industries. Paper box manufacturers also report an
increased demand, but with them too the labor situation
is retarding operations.
In the cigar industry the demand has been larger
than in February of last year, but has declined since
January. Operating schedules, however, have not been
reduced, and stocks are increasing slightly. But prices
are unchanged. Heavy spring business in rubber tires
is reported, and prices have advanced because of the
increased cost of raw rubber and cotton.
Also,
chemical manufacturers report a stronger demand for
their products.
of 1922. It is significant that in practically all of the
industries and cities mentioned both employment and
wages are considerably higher than they were in 1922.
Wages and employment in principal industries
January, 1923
Third Federal Reserve District
Weekly wages
Average
Industries
All industries. .
Iron and steel
products .........
Foundries
and
machine shops.
Locomotive and
c a r construc
tion and repair
Shipbuilding . . . .
Automobiles and
parts ................
Silk g o o d s..........
Cotton goods----Worsteds ...........
Knit goods ........
Clothing .............
Boots and shoes.
Leather ...............
Tobacco products
Sugar refining...
Paper and pulp..
Printing and pub
lishing ............
Glass ...................
C hem icals and
paints .'............
Petroleum refin
ing ...................
Index
numbers
(Average
1922=100)
Number
of oper
atives
Index
numbers
(Average
1922=100)
100
$24.21
109
105,516
118
12
26.98
131
15,916
120
10
24.94
110
4,693
109
17
4
26.38
25.22
110
98
18,512
9,527
169
112
1
11
3
4
10
6
3
4
6
1
2
26.91
18.74
21.42
19.39
17.20
19.10
19.14
23.61
13.77
26.67
22.56
107
110
102
100
102
105
105
109
88
99
121
3,841
7,290
6,338
5,497
4,074
2,896
2,340
5,719
2,280
2,042
1,459
132
105
105
98
100
99
105
105
106
88
107
2
2
34.97
24.89
109
109
3,761
427
101
117
1
29.20
113
3,860
126
1
23.35
107
5,044
104
Weights
At present, nineteen of the leading manufacturing in
dustries in the district are represented in this index,
and at some future date certain other important in
dustries— notably, the baking, slaughtering and meat
packing, flour milling, confectionery and ice cream,
electrical machinery, and coke industries— will be in
cluded. Those now comprising the index, however,
are of such importance that the index numbers should
be fairly representative of employment and wages in
the factories of the Third Federal Reserve District.
According to the 1919 Census of Manufacturers, these
twenty industrial groups employed over 500,000, or
over half the total industrial operatives of the district.
The total value of products manufactured by them in
that year was $3,160,883,000, or 61 per cent of the total
for the district.
The base used in the preparation of the index of em
ployment for each manufacturing group was the
average employment in 1922 of the firms reporting in
that industry. In other words, employment in Janu
ary is represented as a percentage of the average
monthly employment in 1922, the latter being con
sidered as 100. Thus the 23 firms included in the
INDEX NUMBERS OF EM PLOYMENT
AND WAGES
The problem of labor supply and wages has become
pf increasing, and in some industries of paramount,
importance as a result of the rapid expansion that has
occurred in industry and employment since 1921. But
Sltlce little accurate and adequate information on the
labor situation in this district has been available in the
Past, the Philadelphia Federal Reserve Bank has under
taken the construction of index numbers of employ
ment and wages in the Third Federal Reserve District.
The first results of this study, which are given in the
accompanying tables, were compiled from the re
ports of 244 manufacturing firms in the district, which
ln January employed a total o f 105,516 operatives. The
tables show general industrial employment in reporting
plants in the district and in each of the cities listed ; also,
employment and wages in the various industries in
January, 1923, as compared with the monthly averages
Employment
5
FINANCIAL CONDITIONS
In the four weeks ending February 14 total loans
and discounts of reporting member banks in the Third
Federal Reserve District decreased from 592 to 591
millions, owing to a decrease in secured loans of 5
millions and an increase in commercial loans of 4
millions. Investments declined from 318 to 306 millions
and total deposits decreased from 810 to 788 millions.
The Federal Reserve Bank of Philadelphia reports
a material increase in discounted paper in the four
weeks ending February 21, but little change in holdings
of purchased bills and United States securities. Note
circulation moved upward, deposits and reserves de
creased, and the reserve ratio declined from 76 to 70
per cent. Comparative figures in millions of dollars
follow :
Employment in reporting plants in principal cities
January, 1923
Third Federal Reserve District
Cities
Number of
reporting
firms
Philadelphia .......................
Reading ...............................
Allentown ..........................
Camden ..............................
Harrisburg ........................
Scranton .............................
Williamsport.....................
Wilmington ......................
York ...................................
Chester ...............................
Pottstown ...........................
Wilkes-Barre......................
Bethlehem............................
Easton .................................
Hazleton .............................
Lancaster ............................
Norristown..........................
Trenton ................................
All oth er..............................
6
4
4
3
3
3
3
3
3
47
Total ............
244
Number of
operatives
97
14
9
8
8
8
7
7
7
•
57,388
7,213
1,296
4,583
2,584
1,292
860
2,956
568
4,299
1,194
813
307
685
2.350
1,626
639
659
14,204
Index numbers
(Average
1922=100)
122
123
105
96
111
115
103
105
100
105
109
106
114
98
120
115
112
102
110
(000,000’s omitted)
January 24
Discounted bills...................................
Purchased paper .................................
U. S. securities......................................
58
26
29
41
26
29
Total earning assets........................
F. R. notes.............................................
Total deposits .....................................
Total reserve .......................................
113
205
116
225
96
197
121
242
105,516
iron and steel group reported a total employment of
15,916 in January, 1923, and an average monthly em
ployment o f 13,274 in 1922. Hence the index of
employment in the iron and steel industry is the
quotient o f 15,916 divided by 13,274 or 120. The
other group index numbers are calculated in the same
manner, and the final index of industrial employment
is a weighted average of the twenty group-index num
bers. The weights used in calculating the final index
represent the approximate relative importance o f each
industry as measured by the number of workers en
gaged in it in 1919. Thus the weight assigned to the
iron and steel industry, 12, represents the percentage
which the number of workers in that industry is of
the total number employed in all the industries in
cluded in the index. In the same manner the weight
assigned to each industrial group represents its propor
tion o f the total employment. The index numbers
of wages were calculated in the same manner as those
for employment, and the final index is a weighted
average of the group index numbers.
The present index numbers, it must be noted, rep
resent employment and wages not in general but in
manufacturing industries only. Eventually, indices
will be constructed and published for each of the other
important occupations of the district, viz., mining and
quarrying, transportation, agriculture, and miscellan
eous occupations. These various indices will thus re
flect labor and wage conditions in each of the important
branches o f industry and commerce, and the final com
bined index will represent those conditions in the whole
Third Federal Reserve District.
February 21
Following a period of low activity in January, the
stock market in February has shown much greater
activity and higher prices. The average
Securities of 20 industrial shares now stands at
$103.56, slightly above the peak of
last October; and the average of 20 rail shares is
only a few points below the high point then attained.
Up to the 20th of February there were eleven days on
which sales totaled more than a million shares, as com
pared with but three in the whole month of January.
Bond prices and sales are practically the same as they
were a month ago.
Comparative statistics follow :
Feb. 20,
1923
Money rates:
Federal reserve bank discount
rate:
*4 %
Boston.......................................
New Y o r k ...............................
*4 “
Philadelphia ............................
44“
Chicago ...................................
414 “
Commercial paper .................... 434-5 “
Bankers’ acceptances................
4 -4 4 “
Call money ruling rate..............
5 -5 4 “
Securities (average prices);
20 industrial stocks .................. $103.56
20 railroad stocks ....................
90.17
10 first-grade rail bonds..........
87.25
10 second-grade rail bonds.. . .
84.04
10 public utility bonds..............
88.25
10 industrial bonds ..................
94.61
4 Liberty bonds........................
98.62
M
onth
ago
Two
months
ago
4 Wr
4 %
4 “
4 “
44“
44 “
44 “
44 “
44-44 “ 4 4 -5 “
4 -4 4 “
4 -4 4 “
5 “
44“
$97.85
85.33
87.17
83.72
87.78
94.88
98.56
$97.52
84.31
87.81
84.67
88.10
95.04
98.62
* On February 23 Boston and New York rates were advanced to 4 /° I o .
6
Savings deposits in 80 reporting banks in this dis
trict increased from $436,122,000 on January 1 to
$442,083,000 on February 1, or 1.4 per
Savings
cent. That this is usual is indicated by
eposi s tjie £act tjiat jn tjie tiiree preceding years
of which we have record, January was marked by gains.
In 1921 and 1922 developments later in the year carried
deposits downward, as the chart shows:
Source■ Reports of 80 savings banks to the Federal Reserve
—
Bank of Philadelphia
Comparative data by cities fo llo w :
during the month. The middle western districts,
Chicago especially, have been active buyers and are
still purchasing at Al 2 per cent. The south, too, has
/
entered the market and has taken more paper than in
many months. But large as they are these markets
have not been able to absorb the increasing offerings,
and brokers’ lists are now of considerable length. By
about February 1, offerings at 4J4 Per cent had dis
appeared, and by the middle of the month, although
4+> per cent names were on dealers’ lists, no sales could
be made in this market at less than 4% Per cent, and
some strictly high-grade names were offered at 5 per
cent. Higher rates have proved to the liking of the
country banks, and although buying by them has not
been large because of the better demand from their
customers, they are now more interested in paper than
during the past few months.
During January the sales by six reporting firms in
the Third Federal Reserve District were $9,447,000.
O f this sum, Philadelphia banks purchased $4,527,500
and out of town institutions bought $4,919,500. Total
sales were the largest for any month since May, 1922,
when they amounted to $9,588,000; and as compared
with December, they increased 40 per cent.
Five dealers reported sales for January, 1922, and
in that month sold $5,943,515 as compared with $6,836,500 in January, 1923, a gain of 15 per cent. Sales
were made approximately as follow s:
10
60
20
10
Savings deposits in the Third Federal Reserve District
(80 banks)________________________
Number
of
reporting
banks
Per cent increase or decrease
February 1, 1923, compared with
1923
January
Altoona..................
Chester ..................
Harrisburg...........
Johnstown.............
Lancaster..............
Philadelphia.........
Reading.................
Scranton ................
Trenton ................
Wilkes-Barre.......
Williamsport .......
Wilmington..........
Y o rk .......................
Others ...................
3
9
3
6
6
5
4
5
5
14
+3.2
+ 2.5
+ 1 .9
+2.0
+ 5 .6
+ 1.7
— .6
— 4.5
+ 2.7
+ 1.7
+2.1
+ 1.4
+ 4.4
+ 1.6
Total ..................
80
+ 1 .4
5
5
4
6
1922
February
1921
February
+11.8
+ 4.4
+60.4
+ 3.7
+32.1
+ 3.5
+ 9.4
— .9
+ 7.7
— 3.8
+ 11.1
+ 13.2
+15.7
+
-9
+
4.2
of
of
of
of
total
total
total
total
at
at
at
at
4H
4+
4J4
5
per
per
per
per
cent
cent
cent
cent
district report the amount executed during the month
ending February 10 as $3,764,000, as against $5,007,000
in the same period last year. But this small sum is
insufficient to care for the demand here, as the Federal
Reserve Bank alone purchased $18,725,000 in the
month ending February 10.
Average weekly sales in the four weeks ended Febru
ary 11, as reported by five dealers operating in the
district, again increased, but purchases largely declined.
The Federal Reserve Bank continues to be the princi
pal purchaser. Weekly averages follow :
6.5
Sales of commercial pa}>er in this district during
February have been disappointingly small, and in the
.
New York district also business has
Commercial fallen off
Dulness in these larger
paper
eastern markets, combined with the
greatly increased demand for money for commercial
Purposes both from the banks and from the open
market, has caused paper rates to advance steadily
cent
cent
cent
cent
The demand for bankers’ acceptances has improved
during the past month, but sales of bills originating in
this district have been restricted by
Bankers
the smap amount available. Twelve
acceptances Q£ tjie principal accepting banks in this
+ 12.0
— 10.5
+103.3
—
.1
+ 45.8
4.3
+ 10.4
+ 12.9
+
5.1
+ 12.0
+ 12.8
+ 13.7
+ 22.4
+ 10.6
+
per
per
per
per
(000’s omitted)
Weekly average
from—
Jan. 15 to Feb.
Dec. 17 to Jan.
Nov. 13 to Dec.
Oct. 16 to Nov.
Sept. 17 to Oct.
7
Purchases
Sales
Sales
to
to
F. R. Bank others
Total
for period
11..............
14..............
16..............
12..............
15..............
$299
861
224
919
336
$2,815
2.237
1,670
1,483
1.317
$135 $2,950
2,473
236
2,275
605
284
1,767
132
1,449
The exporting of grain and cotton, the importing
of silk, wool, and coffee, and the storage of cotton and
sugar, account for many o f the acceptances executed
recently. Toward the close of January rates declined
slightly, but soon returned to 4 per cent bid and 4%
per cent offered, for bills up to 90 days and they have
since remained at that point.
During the past month the foreign exchanges have
been largely affected by political conditions, and some
of them have lost several points. SterForeign
ling changed very little during the latter
®
part of January, but early in February,
following the announcement of the acceptance of the
American debt funding terms by the British, it ad
vanced, and upon the ratification of these terms by
Congress, rates continued upward and have recently
touched $4.7154— the highest point since the “ peg” was
removed in March, 1919. The accompanying chart
to stiffen, and on February 15 they were quoted at
$.000051, which represented a gain of over 100 per
cent in two weeks. French and Belgian francs touched
low points on January 31 also, the French rate being
$.0582, and Belgian $.0512, both new low points in
the recent movement. Since the beginning of February
these rates too have advanced, although they are still
near the low point touched in 1920. Lire, on the other
hand, have been quite steady, varying but little from
$.0480.
The former neutral exchanges fluctuated somewhat
in sympathy with sterling, but on the whole showed
little change during the month. It is reported that the
Bank of Sweden has been buying heavily in order to
keep kroner at par, and that it has accomplished its
purpose is evidenced by the fact that at no time since
kroner ceased selling at a premium on January 26 have
they been lower than one per cent under par.
Although the Far Eastern and South American ex
changes on the whole have been steady, Chilean pesos
are quoted at about one cent below last month’s rate.
Indian rupees, on the other hand, advanced somewhat
in late January and on the twenty-fourth touched the
highest point since the war. A certain amount of gold
has been shipped to India, and although various ex
planations for this movement have been offered, it
seems likely that the present favorable trade balance
of that country is the most important.
The table below shows comparative rates for the
principal foreign exchanges:
Foreign exchange rates
(Noon cables)
Sterling is now higher than at any tim e since M arch, 1919, when the
British government removed its support from the foreign exchange
m arket. Francs have dropped considerably since the occupa
tion of the Ruhr in January, and are now near the low
point touched in 1920. Quotations on German marks
were not available before July, 1919
Sources-—"Commercial and Financial Chronicle” and the Federal
Reserve Bank of New York
shows the fluctuations of sterling, French francs, and
marks since 1919. It will be remembered that during
the greater part o f the war both British and French
exchanges were “ pegged” at slightly below par. Ger
man rates were not quoted in New York from the time
the United States entered the war until July, 1919.
Since the occupation o f the Ruhr, French, Belgian
and German rates have weakened considerably. On
January 31, marks touched $.000021, or about 50,000
marks to a dollar. After that date, however, heavy
purchases by the German Government caused the rates
Par
value
London .................. $4.8665
.1930
Paris ......................
Antwerp ................
.1930
Milan .....................
.1930
Berlin ....................
.2382
Vienna ...................
.2026
Amsterdam ..........
.4020
Copenhagen .........
.2680
Stockholm ............
.2680
Madrid ..................
.1930
.1930
Berne .....................
Buenos Aires .......
.9648
.7082
Shanghai ...............
February 20,
1923
Janua-y 19,
1923
February 20,
1922
$4.7154
.0609
.0536
.0483
.000042
.000014
.3968
.1931
.2665
.1568
.1891
.8425
.7135
$4.6619
.0665
.0606
.0478
.00005
.000014
.3959
.1941
.2689
.1559
.1867
.8417
.7221
$4.3919
.0915
.0670
.0504
.004424
.000241
.3800
.2078
.2651
.1589
.1949
.8337
.7115
RETAIL TRADE
Retail trade continues to expand, and preliminary
reports for February indicate that sales are running
considerably ahead of those of a year ago. Prices at
r e ta il show a s y e t little cliange, b u t they always ad
vance somewhat later than manufacturers’ and whole
sale prices, and it therefore seems probable that recent
increases in many quotations at the factories have not
had sufficient time to be reflected in final prices to the
consumer.
Household furnishings of all kinds continue in heavy
demand, and a scarcity is reported in the supply of
Wilton rugs of the highest grade. Women’s wear in
fashionable lines has sold remarkably well for this
season of the year, and indeed most lines have shared
in the increased sales as compared with February, 1922.
The higher prices asked by manufacturers of men’s
outer wear for next autumn and for shirts are reported
to have curtailed, in some measure, purchases by re
tailers. Stocks of merchandise in the hands of most
retail stores, although heavier than they were a year
ago, are not large. The following table shows that
orders outstanding are likewise larger than at this time
last year.
Orders outstanding on the last day of the month compared
with total purchases during the previous calendar year
(Compiled from the reports of retail stores in the
Third Federal Reserve District)
1921
4.5%
7.4 “
7.3 “
7.8 “
7.0 “
7.5 “
7.8 “
8.7 “
7.1 “
7.2 “
6.8 “
5.9 “
January .........................................
February .......................................
March ...........................................
April ..............................................
M a y ................................................
June................................................
J u ly .................................................
A u gu st...........................................
September ....................................
October .........................................
November .....................................
December .....................................
1922
8.3%
8.0 “
6.8 “
6.2 “
6.1 “
7.3 “
8.7 “
9 .0“
9.0“
9.5“
8.1 “
8.0 “
During January, sales throughout the district made a
most encouraging gain of 15.3 per cent, as compared
with January, 1922. From the anthracite region col-
Condition of retail trade during January, 1923
C O M P A R ISO N OF
NET
iRate of
Comparison of stocks
SALES
turnover*
!
Jan., 1923
with
Jan., 1922
Jan. 31, 1923
with
Jan. 31, 1922
Jan. 31, 1923
with
Dec. 31, 1922
j
[
Jan. 1 tc
Jan. 31,
1923
Percentage of
orders outstanding
Jan. 31, 1923 to
Jan. 1 tc
total purchases
Jan. 31,
in 1922
1922
All reporting firms (1 38)........
Firms in— Philadelphia ...........
— Allentown,
Bethlehem & Easton
— Altoona ....................
— Chester .....................
— Harrisburg ..............
—Johnstown ..............
— Lancaster.................
— Reading ....................
— Scranton ..................
— Trenton ....................
— Wilkes-Barre ..........
— Williamsport ..........
— Wilmington ............
— York .........................
—All other cities........
+ 15.3%
+ 13.9 “
+ 15.3%
+ 13.9 “
+
+
4.9%
1.7“
— .8%
- 1.1“
3.0
3.8
2.8
3.5
11.6%
12.0 “
+20.7 “
+17.1 “
+43.8 “
+ 1 7 .7 “
+23.2 “
+24.9 “
+ 1 8 .4 “
+15.2 “
+14.8 “
+ 10.2‘ ‘
+ 3.3 “
+27.6 “
+ 17.9 “
+ 7.8 “
+20.7 “
+17.1 “
+43.8 “
+17.7 “
+23.2 “
+24.9 “
+18.4 “
+15.2 “
+14.8 “
+ 10.2 “
+ 3.3 “
+27.6 “
+17.9 “
+ 7.8 “
+ 2.1 “
— 8.5 “
+ 5.6 “
— 8.7 “
2.5
2.7
2.0
2.3
10.3 “
+28.1 “
+10.2 “
+10.3 “
+ 9.0 “
+22.9 “
— 3.5 “
+ 16.9 “
+ 5.7“
+
-5“
— 4.6 “
+11.2 “
—
+
+
+
—
+
—
+
—
—
—
2.4 “
2.7
2.9
2.4
2.0
2.7
2.6
3.0
2.3
1.3
2.5
1.6
2.7
2.6
2.1
1.8
2.5
2.3
3.1
2.5
.9
2.0
1.7
13.1 “
All department stores................
ePartment stores in Phila....
ePart. stores outside Phila...
+15.2 “
+ 15.2 “
+15.2 “
+15.2
+15.2
+15.2
“
“
“
+ 7.2 “
+ 4.5 “
+11.3 “
+ 1.6 “
+ 2.2 “
+
.7 “
3.0
3.6
2.4
2.8
3.3
2.3
13.0 “
14.1 “
10.9 “
Adi apparel stores........................!
en s apparel stores
— in Phila......................
v .,
— outside Phila............ 1
omen’s apparel stores
— in Phila......................
— outside Phila............ 1
+ 11.6 “
+11.6
“
— 4.8 “
o
:
Jan. 1 to
Jan. 31, 1923
with
Jan. 1 to
Jan. 31, 1922
3.6
3.3
4.9 “
+ 15.8 “
+18.4 “
+15.8
+18.4
“
“
+10.8 “
+
-1 “
— 12.3 “
— 7.4 “
3.1
1.9
2.9
1.7
+13.1
+ 8.7
“
“
+13.1 “
+ 8.7“
— 16.0“
+ 3.7 “
— 15.1 “
— 6.4 “
7.0
3.9
5.6
3.7
4.6 “
11.5 “
Credit houses ..
+30.7
“
+30.7
+15.2 “
+
1.7
1.5
24.9 “
“
* Times per year, based on cumulative period.
9
i
.8 “
6.3 “
1.8“
3.7 “
3.6 “
1.3“
9.4 “
2.7 “
bo
.8 “
6.6 “
|
13.2 “
9.8 “
5.1 “
00
2.3 “
lections are reported to be improving. The miners
are paying off the debts contracted during the sus
pension o f operations and, it is expected, will have
cleared these up completely within the next few
months.
The following chart shows the percentage of the
year’s business transacted in each month of the years
1921 and 1922 in 54 stores in this district.
RETAIL TR A D E
SALES
AVERAGE MONTHLY PERCENTAGE OF ANNUAL SALES
PERCENT
........ ......... ...... .......
Source— Federal Reserve Bank of Philadelphia
Jon
Feb
Mor
Apr>
May
June
July
Aucj
Sep
Oct
Nov
Dec
The percentage of the annual sales made in each m onth was smaller
during the early m onths of 1922 but considerably larger during
the last four m onths than in the corresponding m onths
of 1921. March and April should be considered
together as Easter was in March in 1921
and In April in 1922.
Source— Federal Reserve Bank of Philadelphia
WHOLESALE TRADE
Although the volume of sales was less in January
than in the preceding month in all our reporting whole
sale lines excepting drugs and dry goods, the decline
was surprisingly small. This fact, together with the
heavy increases over the sales figures for January,
1922, is indicative of the excellent conditions now
prevailing.
The trend of collections in wholesale drugs and dry
goods is illustrated in the accompanying chart. A com
parison of this chart with that which appeared in the
article on wholesale trade last month shows that among
the four reporting wholesale lines— dry goods, drugs,
hardware, and groceries—it was only in dry goods
that collections improved during 1922.
Although the amount of business actually booked
during February by wholesale shoe dealers for prompt
delivery has been light, except by those
Wholesale
houses fortunate enough to have rub
shoes
ber goods, the total shipments on
account of orders previously taken have been in fair
volume, and early estimates indicate that they will be
larger than they were a year ago. A particularly en
couraging feature of the month’s business has been
the heavy sales of rubber goods for autumn, for at this
time last year they were practically nil. Delivery of
shoes coming from the New England factories has
been much delayed by the slow freight movement in
that section, and wholesalers fear that unless this con
dition improves, a number of shoes will arrive too late
for the Easter season. In men’s shoes this condition
has been somewhat offset by the fact that certain fac
tories made unusually early shipments against their
contracts.
Collections are reported by some dealers to be slow,
Condition of wholesale trade during January, 1923
Percentage of increase or decrease in
Number of
reporting
firms
Net sales
Jan., 1923, compared
with
Accounts outstanding
Jan., 1923, compared
with
Ratio of accounts
outstanding to
sales
Dec., 1922
Boots and shoes.......................................
D ru g s.........................................................
Dry goods.................................................
Groceries...................................................
H ard w are
.............................................................
12
16
21
63
33
Jan., 1922
Dec., 1922
Jan., 1922
Dec., 1922
Jan., 1923
— 247%
—
(-16.0 “
+ 11.1“
— 47 “
— 15.6 “
+48.9%
+21.6 “
+23.8 “
+17.9 “
+33.6 “
-1 1 7 %
+ 7.9“
— 1.5“
— 3.7 “
— 3.6 “
+ 9.4%
+26.7 “
+ 3.3“
+ 1 7 .9 “
+22.1 “
241.5%
142.4 “
239.5 “
115.0“
j 161.1“
284.7%
128.1 “
212.4 “
115.6 “
182.7 “
10
but others state that the heavy sales of rubber goods
by retailers have enabled the latter to pay their bills
promptly.
During January, sales by the reporting firms in this
district increased 48.9 per cent as compared with those
of January, 1922, but decreased 24.7 per cent, as was
to be expected, as compared with December, 1922. The
ratio of accounts outstanding increased from 241.5 per
cent in December to 284.7 per cent in January but is
much lower than it was in January, 1922, when it
stood at 438.0.
Since the January demand in the wholesale grocery
trade is usually dull, the decrease o f 4.7 per cent in
w
the sales of that month, as compared
holesale
with those of December, was only to
groceries
eXpecj-ecp j n f ac^ f or January the
sales were surprisingly good, and greatly exceeded the
figures for January, 1922. Since February 1, the
demand has somewhat improved, but it is still slow.
Many wholesalers have offered 1923 pack tomatoes,
corn, and peas for future delivery and have found an
encouraging response. The goods that are selling best
are canned vegetables on spot, but other staples such
as milk, butter, fruits, dried beans, soups, soaps, sar
dines, coffee, and sugar are moving readily. Sales of
sugar have been stimulated by the rising quotation on
refined, which after declining to 6.50 cents a pound,
advanced sharply.
In the accompanying chart, we give for the first
time an index number of wholesale grocery sales, which
'hereafter will be published regularly. The index of
sales in dollars is charted with the index of wholesale
food prices of the Bureau of Labor Statistics, and since
both of these indices are presented on the same base,
1922 equals 100, they are comparable. The food-index
is not a perfect indicator of wholesale grocery quota
tions, but it shows that although sales in 1922 were
smaller than those in 1919 in dollars, they were larger
in physical volume.
Except on sugar, no sharp price changes occurred,
but the trend was upward. This is shown by the fact
that the advances were twice as numerous as the de
clines. Articles that increased in price, in addition to
sugar, were coffee, dried beans, tomatoes, peas, milk
products, and soaps. On the other hand, prunes and
raisins have declined in the east, although in the pri
mary markets they are holding firm. The heavy sea
sonal demand for these goods will probably come in
about a month.
As usual in January, wholesale stocks decreased,
but the rate was not rapid, and as the canned goods that
had been accumulated last fall were disposed of, they
were partially replaced by flour and sugar.
Collections are slow, and in the anthracite district
are less prompt now than they were during the strike.
Wholesalers report that a considerable number of
checks are protested, and that customers occasionally
deduct the discount for cash even though they do not
pay within the discount period. The January ratio of
accounts outstanding to sales was 115.6 per cent, as
compared with 115.0 for December, and 117.8 per cent
for January a year ago.
As in other wholesale lines, the dry goods sales in
January were much heavier than those of a year ago,
the percentage of increase being 23.8,
Wholesale
and -n comparjson with those of last
y ®
December, they showed a 11.1 per cent
increase. Except in the anthracite district, the demand
for wholesale dry goods is good. Anticipating further
price advances, retailers are ordering spring goods for
prompt delivery in considerable volume. A few firms
report also a large proportion for future delivery. O f
the spring wash goods, crepes and ratines are attract
ing the most attention.
Stocks are about normal, but as is customary at this
period of the year, they are increasing. However, it
is difficult to obtain goods from the mills, and deliveries
are further delayed by railroad congestion.
Wholesalers now pay from 10 to 20 per cent more
for cotton goods than they did early in the year, and
the increase on woolen merchandise has been even
heavier.
As shown by the chart on page 10, collections in dry
goods improved during 1922 whereas in drugs, they be
came slower.- They were also better in January than
in December, as indicated by the fact that the ratio of
accounts outstanding to sales declined from 239.5 per
cent for December to 212.4 per cent for January.
®oth sales and prices have been expressed on the same basis; 1922
averages* 100. Evidently the smaller volume of sales in 1921
and 1922 as compared with 1920 is attributable largely
to the decline in prices
Source— Federal Reserve Bank of Philadelphia
11
Sales in January, as reported by 33 wholesale hard
ware firms in this district, fell off 15.6 per cent from
those of December, but were 33.6 per
Wholesale
cent larger than those of January,
hardware
1922. The demand is considered
good, however, for this season, and factories, mines,
and building contractors are still the heaviest buyers.
Orders for immediate delivery predominate, but in
many instances a fair amount of future business also
is being placed. Dealers state that customers fre
quently want guaranteed prices on certain orders for
future delivery, but most wholesalers prefer not to sell
under such conditions. Embargoes have continued to
hamper the receipt of goods and have also caused some
difficulty in shipments. Collections are fair, but that
they are slower is shown by a comparison of the ratio
of accounts outstanding to sales. This for January
was 182.7, as compared with 161.1 for December, and
199.7 for January, 1922.
Commencing with this issue we shall print an index
of the monthly sales of twenty wholesale hardware
firms. The accompanying chart shows this index,
together with the Bureau of Labor’s price index for
metal products. Both of these factors are calculated
prevailing in 1919, it is evident that the actual volume
in 1922 was considerably larger.
January sales of drugs at wholesale were heavier
than those of December and were very much larger
than in January, 1922. The current
IVfto/esa/e
demand is exceptionally good.
arugs
Stocks are moderately light, but in
the case of some items are increasing. However, the
arrival of spring merchandise is made slow by freight
congestion, and a small percentage of business has been
lost because supplies of some items were too short to
permit the filling of orders completely.
During the past month the trend of drug prices has
been slightly upward, and botanicals that are scarce,
such as Spanish saffron flowers, have advanced still
higher. The index of 40 botanicals, compiled by the
“ Oil, Paint and Drug Reporter,” advanced to 150.1 for
the week ending February 19 from 125.1 for the same
week a month previous.
Although in January the ratio of accounts outstand
ing to sales decreased to 128.1 from 142.4 in Decem
ber, this improvement is seasonal. However, as
shown by the chart on page 10, payments are now
slower than they were two years ago.
CHEMICALS
Both sales and prices have been expressed on the same basis; 1922
averages= 100. Evidently the smaller volume of sales in 1921
and 1922 as compared with 1920 is attributable largely
to the decline in prices
Source— Federal Reserve Bank of Philadelphia
with 1922 as a base; that is, sales for 1922 and the
price index for the same year are taken as 100 per
cent. Although it is realized that the price index for
metal products is not exactly comparable to wholesale
hardware prices, it is believed that metal products
quotations are reflected sufficiently in hardware to
make the index valuable. It will be noticed that actual
sales in 1919 and 1922 were practically the same. As
a matter o f fact, for the twenty reporting firms there
was a difference of only $1000 in total sales for the
two years. Taking into consideration the higher prices
The excellent condition of industry in general is re
flected in an increased demand for most of the chemi
cals. With the exception of those producing glazed
kid, tanneries are buying chemicals in fair volume, and
the textile trade, which now is exceptionally active, is
consuming large quantities. Dyes are in good demand,
and the excellent condition of the paint industry has
increased the orders for many pigments, such as lithopone, to a point never reached before. However, the
call for fertilizers is not as strong as it was last year.
Nevertheless, the tonnage shipped is increasing as the
spring season approaches. Owing to the shortness of
their shipping period, fertilizer manufacturers are
much concerned over the difficulty of sending ship
ments to points in New7 York and New England.
Although fertilizers are being ordered ahead, nearly
all orders for chemicals are for spot deliver}7 Since
.
the French occupation of the Ruhr, foreign inquiries
have increased, and potash has attracted attention be
cause of the possible effect of the occupation on its
supply.
At this time, stocks of fertilizers are naturally
heavy, but supplies of chemicals are light and are de
creasing. Plants are operating at about 80 per cent
of capacity. The proper kind of skilled help is difficult
to obtain, and there is also some shortage of unskilled
labor.
In spite of the fact that quotations on ammonium
sulphate and nitrate of soda are higher than they were
a year ago, prices of mixed fertilizers are a trifle lower.
Quotations on industrial chemicals have been stiffen
ing, as is indicated by the index number of the “ Oil,
Paint and Drug Reporter,” which for the week of Feb
ruary 19 was 439.3, as compared with 429.8 for the
month previous, and 418.7 for the corresponding
week a year ago. Owing to the shortage of arsenic,
both calcium arsenate and paris green are high in price,
and these insecticides threaten to be costly during the
coming season. The strongest items at present are the
metal derivatives, such as blue vitriol, because of re
cent advances in the metal market.
Collections are fairly good and are better than they
were a year ago.
pected that exports were increasing, but although more
inquiries are being received from abroad than hereto
fore, exports are still below the level of 1913. It is
quite evident then that the large buying movement is
confined almost entirely to this country.
Lack of labor continues to curtail production in
many instances, and further increases in wages have
been announced by certain manufacturers. With the
coming of warmer weather an even more serious short
age of both skilled and unskilled labor is expected.
Embargoes continue to offer many difficulties, and
shippers in some localities are working almost entirely
on a permit basis. In certain cases it is said that these
conditions make production schedules difficult, as
operations must be adjusted to meet shipping facilities.
Quotations on nearly all classes of steel products
have advanced during the past month. Iron bars are
quoted at 2.475 cents a pound, as against 2.325 a month
ago, and plates and beams have increased proportion
ately. Billets and wire rods are also considerably
higher than they were last month, and during the sec
ond week of February sheets, nails, and wire ad
vanced, in line with higher quotations on other prod
ucts. Although pig iron quotations in other districts
are higher than they were last month Philadelphia 2X
iron is firm at $29, furnace. The “ Iron A ge” com
posite price on finished steel on February 20 was 2.631
cents, as compared with 2.474 cents on January 16, and
the same journal’s composite price for pig iron ad
vanced from $26.33 to $27.38 during the same period.
IRON AND STEEL
All producers in the iron and steel industry, with the
exception of manufacturers of pig iron, have had more
business than they could well handle during the past
month. Not only are all classes of local consumers in
the market for various types of finished and semi-fin
ished steel products, but many inquiries are being re
ceived from new customers in the middle west. Pig
iron is moving fairly well, and although the aggregate
sales have been considerable, there are not as many
inquiries for delivery in the second quarter as might
be expected at this time of the year. A large amount
of business, it is true, has been placed for the second
quarter, hut there is not the same active market for
iron as there is for steel. In many instances the sales
made by local steel producers have been so large that
they have been obliged to refuse further orders. Manu
facturers of various types of machinery are especially
busy, and foundries have received substantial orders
from railroads, mines, and jobbers. Plate mills, too,
have made heavy sales. Unfilled orders of the United
States Steel Corporation on January 31 were 6,910,7/6 tons, or 165,073 tons more than were on the books
ut the end of December and the largest total for any
month since February, 1921.
Production has been maintained at a high level, the
average in this district being about 80 per cent of
capacity. Pig iron production for January was
3,229,604 tons, as against 3,086,898 tons in Decem
ber. This represents the largest monthly total since
October, 1920, when furnaces produced 3,292,597 tons,
there was a net gain of 9 active blast furnaces during
the month, the number in blast on January 31 being
262, as compared with 253 at the end of December.
It is necessary to go hack to October, 1920. to find a
month in which more furnaces were blowing.
bhis increase in pig iron production is impressive,
3ut it is not so great as that in steel ingots. Estimates
°t the American Iron and Steel Institute for the 30
companies which in 1920 produced 87.50 per cent of
the total, were 3,251,694 gross tons or nearly 500.000
°ns more than they produced in December, and the
(lrgest monthly output since March, 1920. With these
striking evidences of high production it might he ex
BUILDING
Although the estimated value of building permits
issued in fourteen cities of the Third Federal Reserve
District continued to fall off in January, as is shown
in the table on page 14, it was 42 per cent greater than
that for the same month in 1922. The fluctuations in
the value of permits issued since 1918, both in Phila
delphia and in the fourteen cities of the district, are
shown on the chart on page 14.
It will be noticed
that in spite of the decline in January, the decrease was
not so great as it was in the corresponding period of
building activity in 1920.
The open weather during the past month has per
mitted the continuation of operations, and contractors
have consequently been buying more heavily than is
customary at this season. Practically all classes of
dealers in building materials have made large sales, not
only for immediate use but for delivery as soon as the
spring activity commences.
Orders for building bricks have been exceptionally
large for this period of the year, and many manufac
turers have their books well filled for
Building
several months ahead. Indeed, in some
bricks
instances they have been obliged to re
fuse further orders. Not only has the demand been
large for immediate delivery, owing to the open
13
last five years
Source— Federal Reserve Bank of Philadelphia
weather that has permitted building operations to con
tinue, but exceptional orders for future delivery have
also been placed because of the large amount of con
struction to be started in the spring. T o meet this
heavy demand manufacturers have attempted to con
tinue operations at capacity, but in spite of all efforts,
cold weather and the necessity of closing down for
repairs have curtailed operations considerably. Cold
weather alone hampers production to some extent, but
the greatest difficulty is found in the rains followed by
freezing, which make the clay lumpy and cause re
duced output. As a result of the curtailed operations
and the heavy demand, stocks in general are even lower
than they were a month ago and in many instances are
nil.
Prices are unchanged from last month, but present
quotations are on the average about 10 per cent above
those of the corresponding period of last year. A l
though there is no surplus of labor, the supply in gen
eral is sufficient for the present volume of operations,
and no recent wage changes have been reported. Col
lections continue to be good.
All classes of lumber dealers report exceptionally
large sales during the past month, in some cases the
totals being two or three times those for
Lum ber
the same period last year. Demand is
well distributed as to source, and not only
are retailers and building contractors placing large or
ders for both immediate and future delivery, but mines,
railroads, and factories have also been heavy pur
chasers. So great has been the demand in some cases
that retailers have been willing to accept unseasoned
lumber, preferring to have even this kind in their yard
rather than risk receiving only a portion of later or
ders. Certain high grades are becoming increasingly
difficult to obtain, and the greater part of the former
heavy stock of low-grade lumber has been moved.
Although mills have striven to hold up their produc
tion, inclement weather has hampered operations con
siderably. For several weeks reports of mills to the
North Carolina Pine Association and the Southern
Pine Association have shown orders far in excess of
production and shipments. Figures issued by the
former association for the four weeks ending Febru
ary 10 follow :
Cut ............................................................................... 33,099,044 feet
Shipments ................................................................... 36,261,366 “
Orders ......................................................................... 44,508,197 “
Stocks at the mills are quite low, but with dealers in
Building permits issued and their estimated cost— January, 1923
Third Federal Reserve District
1922
1923
Permits
Allentown..................
Altoona ......................
Atlantic C ity ............
Camden ......................
Harrisburg ..............
Lancaster..................
Philadelphia ............
Reading......................
Scranton ....................
Trenton ....................
Wilkes-Barre ..........
Williamsport . . . ___
Wilmington ..............
York ...........................
19
61
173
51
37
28
747
128
40
49
42
13
66
32
Total for January
1,486
Operations
35
69
173*
52
49
28
967
131
40
52
42*
13
80
32
1,763
* Do not report operations.
14
Estimated cost
Permits
Operations
Estimated cost
$107,725
141,300
1,144,564
551,798
151,925
238,625
6,504,100
345,925
187,955
84,183
100,933
19,105
149,286
39,720
20
31
236
72
19
23
976
85
16
50
30
10
40
15
$66,900
36,362
902,827
339,010
432,625
74,700
4,411,320
141,650
60.925
95.860
93,062
13,210
198,617
10,655
$9,767,144
1,623
$6,576,523
this district, owing to recent heavy orders, they are tage of these terms to build up their stocks for spring
fair. Manufacturers in this district are operating at business. Practically all factories are operating at
capacity unless weather or other obstacles hinder.
capacity in order to meet the heavy demand and to keep
Owing to the heavy demand and the decreasing up their reserves. At present, stocks are about normal,
stocks, quotations have continued to advance, and up but they are decreasing. Raw materials continue to
to the present time have met with little or no resist advance and force up the costs of production. Lead in
ance. The fear is expressed in some quarters, how oil is now quoted at $12.82 a hundred pounds. This
ever, that the steadily rising prices of both materials is, of course, a reflection of the recent advances in the
and labor will act as a check to building operations, quotations on pig lead, which is now being offered at
and consequently lessen the demand for lumber. But .08 cents, New York,, and .078 cents, East St. Louis, as
as yet no such condition is noticeable.
against .0470 and .0440 respectively at this time last
The labor situation on the whole is satisfactory, and year. Linseed oil, too, is higher, recent quotations be
although a few shortages of skilled labor are reported, ing $1.01 a gallon by the barrel.
the situation is by no means serious. Transportation,
No labor shortages are reported and there have been
too, has improved, the only difficulties at present being no wage changes in recent weeks. The transportation
embargoes to some points in New England and other situation is causing little or no trouble. Collections are
northern states.
from fair to good, although some difficulty is reported
Collections in some cases are slow, but in general in the rural districts.
they have improved and may be classed as good.
COAL
Dealers in electrical supplies report a good demand
for practically all of their products. Especially noticeBoth domestic and steam sizes of anthracite con
tinue to move quickly, and despite the high level of
pj . . j
able are the heavy sales of radio equipec rica
ment, which, following a slump in the
production, it has so far been impossisummer and autumn, have increased Anthracite
ble to attempt any storage. In some
tremendously. Sales of this equipment have been so
anthracite circles it is thought that the
large that many dealers have practically no stocks and lower quotations on bituminous coal will to a certain
are making strenuous efforts to obtain further sup extent curtail the consumption of steam sizes, and that
plies from manufacturers. Specialties such as toast as a result operators will be able to start storing some
ers, grills, and washing machines are moving well for buckwheat and rice before many weeks.
Production has been maintained at slightly over
this season of the year, and although this is usually a
dull period, materials for wiring houses and buildings 2,000,000 tons a week, which is considerably better
are in good request. Contractors, too, report that the than that for the same period last year. Estimated
volume of work is large, although competition is ex output for the four weeks ending February 10 and for
tremely keen and many jobs have been taken at cost the corresponding weeks in 1922 was as follow s:
or less.
With the exception o f radio equipment, supplies are
(In net tons)
fairly easy to obtain, although some dealers state that
transportation conditions have delayed the receipt of
1922
1923
Week ending
some of their orders. In the majority of cases stocks
are light, owing to the heavy sales. Prices for insu
1.443.000
lated wire, conduit pipe, and for supplies manufactured January 20.................................................. 2,010,000
1.607.000
2.119.000
from iron and steel, are slightly higher than they were
1.811.000
2.056.000
a month ago, but quotations on specialties are for the
1,822,000
2.023.000
most part unchanged. The advances that have taken
place have met with little or no resistance.
Practically all mines are working at capacity, but in
Collections vary from fair to good and show some
a few cases lack of men has reduced operations
improvement during the past month.
Paint manufacturers report one of the best months slightly. One or two small strikes have developed
for this season in years, and sales to all classes of con here and there, owing to local differences between
sumers have been large. Especially noticeable is the miners and operators, but these have been settled
increasing demand from industries. Some orders within a short period and have not appreciably cur
have been accounted for by the fact that tailed the total production.
The supply of cars continues to be adequate. In
Paint
manufacturers raised their prices last month
fact, in the anthracite region there is seldom any diffiand gave dealers the opportunity of plac
ing one order at the old quotations. Furthermore, it • culty on this score, for the roads serving that region
is the custom in the trade to sell goods at this time with were, for the most part, constructed primarily to carry
April-first dating, and many dealers have taken advan coal. The roads serving the bituminous fields, on the
15
contrary', are in general trunk lines, to which coal
carrying is incidental to other operations. Moreover,
anthracite production varies comparatively little the
year round, and consequently there is seldom any
abnormal strain on the carriers’ equipment.
Quotations on the whole are unchanged, although
during the last month certain independent operators
have reduced rice coal by from 25 to 50 cents a ton.
The demand for bituminous has fallen off consider
ably since the middle of January, largely because con
sumers had accumulated fairly heavy
Bitum inous stocks during the previous month, and
no doubt also because announcement
was made late in January of the signing of the agree
ment between the United Mine Workers and the Illi
nois, Indiana and Ohio operators extending the wage
agreement to March 31, 1924. As was generally ex
pected, similar agreements have been signed by some
of the operators and union officials in certain Penn
sylvania districts. Some authorities, however, believe
that the effect of the announcement that there would
be no strike had been largely discounted beforehand,
and that the present slackening in demand is due to
the good-sized stocks on hand and to the approach
of warmer weather. Steel companies and other in
dustrial users have been the most active buyers, but
even they have made only nominal purchases.
A recent report made by the United States Geologi
cal Survey showed that on January 1 stocks of bitu
minous coal in the hands o f consumers were approxi
mately 36,000,000 tons, or about 4,000,000 tons more
than those on November 1. These stocks have doubt
less been further increased since that date, even though
production has decreased to a certain extent during the
past three weeks. Output for the four weeks ending
February 10 is estimated as follows:
have not declined in the same proportion. Pool 10,
for example, which on January 15 was quoted at $5.25,
was selling during the middle of February at from
$3.65 to $3.80. Although a considerable amount of
coal is being shipped on contract, there is a noticeable
tendency among buyers to prefer the spot market and
to hesitate to sign contracts under present conditions.
The supply of miners is in general adequate for the
present percentage of operations, and there are reports
that men are drifting to other industries in which em
ployment is steadier.
Although demand for coke for household consump
tion has fallen off somewhat, sales are still of good
proportion. Blast furnaces continue to buy,
Coke but the greater production and the difficulties
in distributing to northern points have in
creased the supply in this district, and consequently
prices have softened. Output of both by-product and
beehive coke has been increasing steadily since last
August, as is shown in the accompanying chart. Es
pecially noticeable is the high total of by-product coke.
Figures for monthly production are not available for
the years 1919 and 1920, but it will be seen that the
output for December was considerably above the aver
age for any previous month.
COKE PRODUCTION
(In net tons)
January 20. .
January 27. .
February 3
February 10
10.925.000
10.985.000
10 .686.000
10,836,000
In this district shortage of cars has continued to
hamper production, and the general average of output
was not above 45 per cent o f usual capacity. Never
theless, the supply has been more than ample, and
owing to embargoes effective on shipments to New
England, further tonnage has been released for this
territory. As a result of the curtailed market and the
lessened demand, quotations on spot coal have declined
considerably during the past month, and prices of cer
tain low-grade coals are $2 below those of early Janu
ary. Some high-grade low volatile coals, however,
Early in 1919, for the first tim e, the output of by-product coke in the
United States exceeded that of beehive, and since that tim e has
been consistently larger. Production of both grades has
increased steadily since last August. For the years
1919 and 1920 average m onthly production of
by-product coke is represented
Source— United States Geological Survey
Quotations for spot coke, after advancing during
late January, commenced to decline, and on February
13 Connellsville furnace coke was quoted at $7.00 and
foundry grade at $8.50.
Embargoes have hampered distribution, and there
continues to be a shortage of labor, although this factor
has n o t greatly curtailed production.
COTTON
In February, the upward climb of raw cotton
quotations continued, reaching 29.80 for spot cotton
in New York on the twenty-third, indi
Raw
cating the strong position of the staple.
co tto n
Not only was the domestic consumption
of 610,375 hales during January, much heavier than
the 527,945 bales taken in December, but the con
sumption in this country during the six months end
ing January 31 was 261,000 bales in excess of that
of the same period a year ago. In fact, the domestic
consumption of last January was the largest on record,
and in spite of the troubled conditions abroad exports
have been well maintained. The status of last sea
son’s crop as compared with that of the two previous
years is shown by the table below.
In spite of frequent sharp fluctuations the general level of raw cotton
quotations has remained about the same throughout m ost of
the last century. But this was possible only because pro
duction kept pace with consum ption. W hether prices
will return to this level depends both on the
strength of the future demand and on
our ability to lim it the ravages of
the boll weevil
Sources— " Journal of Commerce” and “ Cotton Facts”
Supply and takings of American cotton*
(In bales)
Visible supply, American, at end
of previous season (July 31).
Crop in sight, American, to
February 23 ............................
Season of
1922-1923
Season of
1921-1922
Season of
1920-1921
the annual yields increased at uniform speed but that
crops of the last two years have been but little more than
half as big as they would have been if production had
continued to grow at this speed.
The cotton trade is already trying to forecast the
acreage that will be planted, since this is one factor
affecting the yield. According to the chart below,
it appears that the trend of the price paid to the
producer toward the end of any year, is an indicator of
the acreage planted the year following. Thus the price
declined in 1914, and in 1915 the acreage showed a de-
1,968,159 4,112,651 2,943,882
9,475,277 7,999,088 7,831,199
Total ........................................ 11,443,436 12,111,739 10,775,081
Visible supply, American, on
February 2 3 ............................. 2,873,190 4,080,181 4,726,436
World’s takings of American
cotton to February 23............
_
8,570,246 8,031,558 6,048,645
* Compiled by New York Cotton Exchange.
The figures above show how much the visible supply
of cotton has diminished as a result of the small yields
hi 1920 and 1921. In fact, according to the Depart
ment of Commerce, the world’s stocks of American
cotton at the beginning of this season (August 1) were
only 5,123,000 bales. If the same quantity of cotton
is consumed during the last half of the season as dur
ing the first half, the total consumption of the 1922
American crop will be 13,270,000 bales, and since the
1922 crop was but 9,964,000 bales, according to the
forecast o f the Department of Agriculture, there will
a deficit this year of 3,306,000 bales, which will re
duce the carryover to 1,817,000 bales. The carryover
estimate of the Department of Commerce, which as
sumes a consumption of 12,312,000 bales, is 2.775,000
bales. 1 fiis accounts for the strength of cotton in the
face of international trouble that directly affects two
° f the heaviest consuming countries. The following
ehart shows that, if exception be made for the Civil W ar,
le price of cotton remained near the same level
r°m 1822 to 1914. Such stability indicates that, until
le latter date, production and consumption expanded
at the same rate. It will be noticed that prior to 1914,
RELATION OF COTTON PRICES TO ACREAGE
The trend of the price paid to producers has had an influence on the
acreage planted the year following. Declining prices were followed
by the planting of smaller acreages, and advancing prices by
larger acreages. In 1922 the price trend was upward. The
dotted line shows the estim ate made by “ Commerce
and Finance” of cotton acreage for 1923
Sources— Department of Agriculture and Department of Commerce
17
Prices have advanced from 2j4 to 5 per cent during
crease; in 1915 the price advanced, and the acreage
planted in 1916 was considerably larger; in 1920 the the month and are still tending upward. Although
price fell sharply, and much less cotton was planted in some resistance to the advance has developed, it has
not greatly affected the demand. Supplies of raw
1921.
In comparison with those of a year ago, the actual material range from normal to heavy, but stocks of
sales o f cotton yarn in the Philadelphia market, in finished goods are light. Both are decreasing.
A scarcity of both skilled and unskilled labor has
February, were larger both in value and
C o tto n
jn volume, but they were smaller than somewhat hindered production. Female help is espe
yarns
those of January. Although inquiries cially difficult to obtain. Wages in some plants have
are still numerous, the effective demand for cotton advanced from 5 to 20 per cent. Collections are good
yarns has been curtailed by rising prices. Weavers, and are improving.
who in January had been heavy buyers, were so well
WOOL
covered that they were not forced to buy at the pre
vailing quotations. They maintain that it would be
The demand for fall goods, both woolen and worsted,
difficult for them to obtain for their finished products is excellent, coatings ranking first and cloakings sec
ond. Some dress goods manufacprices high enough to pay for yarns bought at the
turers have not yet opened their
February quotations. In spite o f the quieter demand Woolen ana
worsted goods faU Hnes> but in the case of those
for weaving yarns, the demand for heavy-weight
carded yarns for underwear and low-grade hosiery has who have, the advances made on both men’s and
improved; but here, too, dealers are encountering re women’s wear have been so moderate as to attract a
sistance to any increases. Mercerized yarns have been large volume of business. Duplicate orders for men’s
in less request than carded, and the demand for them wear for spring continue to be received, and mills are
is only fair. Makers of mercerized hosiery seem to busy working on business booked several months ago.
have difficulty in obtaining price advances to meet the Dress goods are in good demand, Poiret twills being
higher quotations on yarns. Carpet mills continue to the leading fabric. The light colors are in greatest
request, and therefore competition among manufac
consume their grades of yarn quite steadily.
Orders have been booked by spinners for shipment turers to dispose of the dark staple colors, such as
as far ahead as June, but many manufacturers have navy blue, is keen. The demand for infants’ wear has
such faith in the strength of cotton that they are not been exceptionally brisk during the past two months.
anxious to sell their production far in advance. In But in the cloak and suit trade buying has been de
fact, spinners’ quotations are very firm, but yarns in layed this year, and since an early Easter will shorten
the hands o f dealers have been obtained at slight con the season, the volume of business threatens to be cur
cessions. Reflecting the good demand for carded and tailed greatly. The dress goods situation has also been
the small demand for combed yarns, prices o f the for complicated by the strike among operatives in the New
mer are relatively much higher than of the latter. York dress and waist industry.
Carded yarns have advanced 5 per cent during the
The majority of mills are operating 100 per cent of
month and are now from 50 to 75 per cent higher than their equipment, except when sickness or lack of labor
they were a year ago.
has kept looms idle. Since the first of the year sick
Stocks are moderately light, and those o f dealers are ness has been very prevalent, and skilled help is scarce
decreasing. Stocks of mercerized yarns, however, are and unskilled is becoming hard to obtain. A number
heavy.
of manufacturers have raised wages, the advances
Collections are good, but they are tending to become averaging 10 per cent. Owing to heavy production
slower because high priced yarns cause textile manu schedules, mills are carrying larger supplies of raw
facturers to have more money tied up 'in stock.
material than usual, but finished stocks are light and
The cotton goods business during February was
are decreasing. Goods are in most cases being shipped
fairly satisfactory, but the demand fluctuated with the
as fast as manufactured.
price o f raw cotton and was most active
Because of railroad congestion, manufacturers have
° °j
when cotton advanced. Sales were on a par
difficulty in securing yarns and in making shipments.
®
with those o f January, and were distinctly
larger than they were a year ago. Print cloths are in As a result, costs are increased when shipments are
request, but the activity in sheetings has been only made by express, and in some cases mills are threat
moderate. Haircloth is in good demand, and plush ened with cancellations.
Although collections are better than they were a
mills report that orders for heavy draperies have ar
rived much earlier than usual and that customers are year ago, they are about the same as they were last
anxious to have the merchandise shipped as soon as month and may be called fair.
manufactured. The caii fo r mohair plush for furni
Worsted yarns are in good demand from the knitting
ture covering still c o n tin u e s .
trade, and weavers, especially of men’s wear, are also
18
placing considerable business. The call for wool and
merino yarns is only fair, but inquiries are numerous.
Demand is now somewhat heavier than it
Wool
was a month ago, and is much larger
yarns
than that of a year ago.
The orders
booked call for deliveries during the next four months,
and a few mills have sold their production for six
months ahead. In order to make deliveries on these
contracts, the majority are operating at 100 per cent
of capacity. Spinners report a scarcity of skilled labor
as well as of really good unskilled labor, and have ad
vanced the wages of the latter from 5 to 12 per cent
and of the former from 10 to 12 per cent.
Prices have increased during the month and range
from 30 to 40 per cent higher than they were a year
ago. Owing to the strength o f raw wool, the trend
of yarn quotations is still upward. Mills in general
hold heavy supplies of raw material, but yarn stocks
are light and are decreasing.
Freight embargoes have delayed shipments of both
yarn and wool, and this has made it more difficult for
mills that deal in affected regions to obtain orders. Col
lections are on a par with last month and with Feb
ruary, 1922. They are fairly good.
The demand for raw wool is quiet, because large
nulls bought heavily last year in anticipation of their
wants, and the present activity is largely
wo i
confined to the buying of smaller establish
ments that are following a hand to mouth
policy. Since dealers’ supplies of domestic wool are
practically exhausted, imported wools, and cross-breds
in particular, are now the center o f interest. That im
ports o f wool have been greatly increased by the lack
of domestic wool is shown by the receipts at the Port
of Boston, which between January 1 and February 15,
1923, were 78,479,000 pounds, as compared with
39,314,000 pounds during the corresponding period of
1922. Dealers in waste report that the demand has
improved and is much better than it was a year ago.
The increase between September and December,
1922, in the stocks o f wool held by manufacturers, and
the decrease in those held by dealers are shown in the
table below :
Wool stocks of dealers and manufacturers*
__ ______ (Grease equivalent in pounds)________
Total
December 31, 1 9 2 2 ....
September 30, 1922...
Dealers
Manufacturers
515.543,585
525,173,618
213.383.230
231,306,753
302.160.355
293,866,865
rUireau of the Census.
In spite o f the slack demand, wool prices have been
Very strong, and sales on foreign markets have taken
place at higher prices than those prevailing in this
country. Just how scarce fine wools have become in
19
the last few years is reflected in the prices of wool tops
in Bradford, England. Whereas 40’s Colonial pre
pared, which was quoted at 14j4 pence in 1914, could
be bought on January 1, 1922, for \ 2 }/2 pence, and on
January 1, 1923, for 16 pence, the high-grade 70’s
Colonial warp, which in 1914 was 28 pence, was quoted
on February 1 at 70 pence. This price, however, has
since declined.
The comparative price trends of yarn and wool are
shown in the accompanying chart.
Source— " Textile World”
SILK
Since January 15 the demand for silk goods has im
proved materially. Not only have inquiries for fall been
received two months earlier than last year,
but actual orders are more plentiful than
goods t^ey were jn 1922. The majority of those
booked are for early delivery, but some manufacturers
have so much business ahead that they cannot promise
shipments before April. The orders booked for future
average about one-third of the total. The demand is
largely confined to crepe fabrics, especially cantons,
and taffetas are less prominent than they were before
Christmas. Flat crepes sell readily, but the difficul
ties encountered in producing them have discouraged
their manufacture.
The improvement in the silk business has caused such
an increase in production that mill activity is perhaps
greater than it has been at any time since the crash
of 1920, and some manufacturers are operating half
their equipment at night. But others, whose looms are
not adapted to making crepes, have considerable idle
machinery, since yarn-dyed fabrics are in small re
quest. Some production has been lost because of a
scarcity of skilled help. Except in a few mills, in
which advances of from 5 to 25 per cent have been
made, wages remain stationary.
Uncertainty regarding the price trend of raw silk
has curtailed manufacture for stock, and whatever ac
cumulation exists is diminishing. Supplies of raw
material vary from normal to light, but higher produc
tion schedules have caused them also to decrease. As
the supplies bought at cheaper prices become ex
hausted, prices of silk goods move to higher levels, but
the advances since last month have been small, for re
sistance to higher prices is strong. One manufacturer
observes that such resistance is now less than it was a
few months ago, but in spite of the excellent demand
the feeling exists that caution is advisable both in the
raising of prices and in the accumulation of stock.
Collections are good.
During the past month, business received by
throwsters has somewhat increased, but the demand is
still quiet and spasmodic. Manufacturers
sill?Vn are P^ac* on^y smaP orders for early de
n&
livery, for there is considerable lack of
confidence in the stability of prices. Stocks in the
hands of throwsters, of course, are light.
On account of the quietness of the demand, throw
sters are not operating their plants at more than 60 per
cent of capacity. Quotations during the past month
have remained practically unchanged, and the resist
ance to advancing price levels is very marked. It is
said that partly because of better running silk, the price
charged by commission throwsters for crepe twists is
less now than it was in 1913.
Since manufacturers have largely liquidated their
stocks o f a year ago, they are better able to meet obli
gations, and collections are satisfactory.
The silk market was featureless until late in the
month, for the demand was quiet and the price fairly
stable. Quotations remained at the same level
Raw
as they reached at the first of the year. A l
silk
though seasonal reasons caused mill con
sumption to be less in January than in October, as
shown by the table below, January deliveries to
mills were heavier than those of the previous month.
HOSIERY
A lack of uniformity still prevails in the hosiery
business, but on the whole conditions are improving
and more mills are busy than was the case a month
ago. Prices, too, in a number of instances are higher.
The greatest percentage of advance has been in the
cheaper grades of cotton hosiery, but as the quality
becomes better the difficulty in obtaining higher prices
increases. In women’s seamless silk hosiery no
change in price has been made on the fairly standard
ized stocking that retails for $1. Nor has the selling
price of full-fashioned hosiery advanced; on the con
trary, some manufacturers have reduced their quota
tions. But on certain other lines of silk, silk and fibre,
and wool and fibre hosiery recent orders have been
taken at slight increases.
During the month higher prices have prevailed for
both cotton and woolen yarns, but silk yarns have re
mained almost stationary at the recent high levels.
The accompanying charts show the monthly fluctua
tions in production and orders booked by the reporting
mills in this district, selling to the wholesale and to the
retail trade. In reading these charts the total number
of pairs sold through each method of merchandising is
relatively unimportant, as there are more reporting
firms using one method than the other; and it is quite
possible also that those selling to the wholesale trade
are larger producers than those selling to the retail
trade. The important points to be noted are those to
which attention is drawn in the sub-heads of the charts.
The summary, on page 21, of the business done by re
porting firms in the Third Federal Reserve District
shows that in January production of firms selling to
the wholesale trade increased 16.0 per cent, and of
ORDERS BOOKED BY HOSIERY MANUFACTURERS
THIRD
THQUSAfICS
FEDERAL
RESERVE
DISTRICT
1
D O I PAIRS
13 firms selling to vboiesoie trode .
500
Silk imports, stocks and deliveries to American mills*
(in bales)
Storage at
beginning of
month
Imports
during
month
Deliveries
to American
mills
I I
•to o
Storage at
end of
month
1
300
1923
January ...........
1922
December........
November.......
October............
January ............
1921
December........
November.......
October............
1920
December........
November.......
49,174
32,593
34,680
47,087
47,159
45,893
36.795
44,536
33.057
36,733
46,569
9,499
31,042
35,467
37,471
22,176
49,174
47.159
45,893
31,859
I \
200
19,601
19,304
23,036
26.133
26,812
23,084
20,930
26.515
26,816
6,341
9,285
10.162
10,735
;
44,536
48.358
1921
**•••/
*v **
1922
1923
Wholesalers place orders to cover their estimated requirements for a
longer period than do retailers, therefore fluctuations from m onth
to m onth in orders booked are m uch greater in the m ills selling
to the wholesale trade than in those dealing with the re
tail trade. Also, contracts are, as a rule, m *d « earlier
in the season by wholesalers than by retailers
Source— Federal Reserve Bank of Philaih&jhla
* Silk Association o f America.
**** *
0
24,804
19,601
19,304
48,357
49,807
7 ■firms selling to r tto il trode
100
20
Production at the beginning of 1921 was at a low point because of the
general business depression, and stocks of hosiery were large. Dur
ing that year the output increased until late in the au tum n ,
with only slight seasonal fluctuations. By 1922, however,
hosiery manufacturing had become more nearly nor
m al, and production in that year followed more
closely the seasonal demand
Source— Federal Reserve Bank of Fhiladelphia
firms selling to the retail trade 47.9 per cent as com
pared with December, 1922.
Operations in the hosiery industry
(In terms of dozens of pairs)
Firms selling to
trade:
Jan., 1923,
Jan., 1923,
compared with compared with
Jan., 1922
Dec., 1922
and conditions throughout the industry are in most
cases reported to be satisfactory. This increased ac
tivity in light weights has been the feature of the
month’s business, although heavy weights have by no
means been neglected, and in these too the prices ob
tained have shown some advances. In both light and
heavy weights the orders booked are in the majority
of cases reported to be considerably in excess of what
they were at this time last year.
Cotton yarns have again advanced to higher levels.
As an example of the continued strength in yarn
prices, one grade largely used by underwear manufac
turers— single 30— has risen about 33 per cent during
the past few months. Labor is in fair supply, and
only a few instances of scarcity have been noted.
Wages are as a rule unchanged, but certain manufac
turers report that they have made some increases dur
ing the month. Collections are in most cases said to
be satisfactory.
Reports received from manufacturers in the Third
Federal Reserve District tabulated below show that
during January the production of summer underwear
decreased 26.4 per cent and that of winter underwear
increased 4.1 per cent, as compared with January, 1922,
and that orders on hand at the end of the month in
creased 6.4 per cent in summer weights and 111.5 per
cent in winter weights, as compared with January 31,
1922.
the wholesale
Number of reporting firms— 35
Product manufactured during
January .......................................
Finished product on hand January 31 ...............................................
Orders booked during January..
Cancellations received during
January .......................................
Shipments during January..........
Unfilled orders on hand January
31 ......................................................
Conditions in the underwear industry
+ 16.0%
—
6.7%
+ 6.1 “
+ 2 0 .1 “
+
+
40.5 “
12.0 “
— 63.0 “
+ 1 6 .0 “
— 30.6 “
— 6 .0 “
+
2.9 “
+
(In
Number of reporting firms— 13
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 January
31 ....................................................
5 .8 “
Number of reporting firms— 12
31 ......................................................
+ 4 7 .9 %
+
— 16.9 “
+ 4 0 .5 “
— 44.8 “
— 3 1 .3 “
-5 3 .5 “
— 22.9 “
+ 2 3 4 .6 “
+ 17.3“
— 23.0 “
86.9%
+
32.3%
— 26.4%
— 12.7 “
+189.3 “
+
+
+ 83.4 “
— 14.8 “
+
3 .7“
+
6 .4“
—
25.9%
+
4.1%
—
—
49.4 “
59.1 “
+ 26.1 “
— 7.8“
55.9“
17.2“
Winter underwear:
Number of reporting firms— 9
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 January
31 ....................................................
— 40.6 “
UNDERWEAR
Manufacturers’ sales of underwear for spring have
been in good volume, and resistance to price advances,
although still in evidence, has become less strong. In
creased prices have been obtained in many instances,
Jan., 1923,
Jan., 1923,
compared with compared with
Dec., 1922
Jan., 1922
Summer underwear:
Firms selling to the retail trade:
Product manufactured during
January .......................................
Finished product on hand January 31 ......................................................
Orders booked during January..
Cancellations received during
January .......................................
Shipments during January..........
Unfilled orders on hand January
terms of dozens)
21
— 43.6 “
+
+
+ 1 1 1 .5 “
13.4“
27.5 “
FLOOR COVERINGS
Operations in furniture industry
Nearly all the mills making the four principal quali
ties of carpets and rugs— Wiltons, Axminsters, velvets,
and tapestries— are completely sold out for the balance
of the season. A few mills, however, that had not con
tracted for their entire product beyond March 1, have
announced an increase in price o f 5 per cent to take
effect on that date. The cheaper grades of rugs, includ
ing art squares, ingrains and wool fibres, are in some
what better demand than they have been, but the mills
that depend solely on these lines for their activity are
still running at less than full capacity. These grades,
however, with each succeeding year occupy a less im
portant position in the industry.
Linoleum manufacturers, although working their
plants at capacity, and indeed in some cases produc
ing more than ever before, are unable to keep up with
their orders,and during the month have fallen further
behind in deliveries. Recently the heaviest demand
has been for the lighter weights, but all qualities are
selling well. It is expected, however, that the con
tinued activity in building, especially of commercial
structures, will result in a strong demand for heavy
linoleums during the coming season.
Felt-base lines have been advanced in price by from
3 to 5 per cent, but these advances have not checked
buying. Cork-base goods, however, are unchanged in
price.
The freight movement is better in some localities,
but to New England and to some points in New York
embargoes are still in force. Labor is in sufficient sup
ply, and no change in wages has been reported during
the month. Collections continue to be good.
Third Federal
Reserve District
Number reporting ...........................
Production, percentage of normal.
January, 1923, orders........................
December, 1922, orders.....................
January, 1923, shipments..................
December, 1922, shipments..............
January, 1923, cancellations............
December, 1922, cancellations........
February 1, 1923, unfilled orders..
88
92.1
$4,516,319
2,053,619
2,982,831
3,235,876
162.511
240,874
5,466,568
Associated Furniture and to the Federal Reserve Bank
of Chicago shows the increased activity of the furni
ture industry in January, 1923, as compared with
December, 1922.
Recently some manufacturers have advanced their
price lists from 5 to 10 per cent, but the movement has
not yet become general. All-wood furniture, such as
tables, desks, chests, beds, etc., has been advanced 5
per cent, and furniture containing plate glass and
mirrors has risen from 8 to 10 per cent. In general,
prices are from 10 to 20 per cent higher than they
were in February, 1922, but determined resistance to
increasing prices on the part of retailers has probably
prevented many manufacturers from joining in re
cent advances. Lumber and veneer prices are higher
than they were on January 1, but plate glass and
mirrors have advanced even more sharply. Plate
glass manufacturers are experiencing an unprecedented
demand from the automobile industry because of the
great increase in the number of closed cars, and this,
together with heavy demand for buildings, has caused
a scarcity of their products.
Finished stocks at the factories are moderate and at
most plants are about normal for this season; but
some manufacturers report that railroad embargoes to
many of their shipping points have caused a heavy ac
cumulation. Stocks of raw materials, too, are mod
erate and about normal, except those of plate glass,
which in general are light.
Skilled laborers, such as cabinet makers and finish
ers, are becoming scarce at several factories, and for
this reason it is impossible for some plants, especially
those in the Williamsport district, to operate at
capacity. Wages have been advanced about 10 per
cent since January 1 at many factories and are very
nearly back to the 1920 levels. The supply of unskilled
labor is not so scarce and is adequate at nearly all
plants.
Rail embargoes have seriously hampered outgoing
shipments to New England and northern New York,
and some manufacturers report long delays on inbound
shipments of lumber and veneer from points in
Indiana.
The reports concerning collections show much varia
tion. However, collections are better than they were
a year ago, and may be described as from fair to good.
FURNITURE
Although the early winter months constitute a slack
season in furniture manufacture, all of the manufac
turers in this district are at present well supplied with
orders. The demand for all kinds of furniture is good.
It is slightly greater than it was a month ago, and many
manufacturers state that their orders are at least 50
per cent larger than they were in February, 1922. Fur
niture wholesalers and retailers are buying liberally,
and several factories have closed large contracts to
furnish new hotels now almost completed. Office fur
niture and desks are in good request, but the heav
iest demand is for home furniture, particularly suits.
Cabinet makers have large orders from phonograph
producers and makers of radio sets. Plant operations
vary from 75 to 100 per cent, the average for the in
dustry in this district being about 85 or 90 per cent.
Practically all orders are for immediate delivery, but
several plants, especially those having hotel contracts,
have some large orders for future delivery. One
manufacturer states that he has called in his salesmen
from the road because he is heavily oversold.
The following table, based on combined returns to
8
87.1
$273,397
158,586
214,373
261,979
9,081
10,506
291,430
United
States
22
LEATHER
creased 48.9 per cent as compared with those of Janu
ary, 1922.
February sales in retail shoes, except in rubber
goods, have been small, but advance information indi
cates that they will compare favorably with those of
last February. During January, as shown in the fol
lowing table, sales increased 12.6 per cent as compared
with January, 1922, and stocks decreased 11.6 per cent
as compared with December, 1922, and 7.4 per cent as
compared with January, 1922.
Shoe factories in this district have sold all the shoes
that they can deliver by April 1, Easter, and many can
not accept any business for shipment before
Shoes May. Production, however, is not at full
capacity, as it is being checked by a shortage
of skilled female labor in the fitting rooms of many
of the plants and by the extra amount of work required
to turn out many of the women’s shoes of the prevail
ing fashions.
Leather shoes show no change in price and in this
respect differ from many other lines of merchandise.
Canvas shoes, however, have advanced in sympathy
with the strength in all lines of cotton fabrics. Busi
ness booked for delivery after Easter is in good vol
ume in white shoes, and grey suede models show no
sign of decreasing in popularity. Sport shoes in an
almost bewildering number of combination effects are
already making their appearance and promise to be
active during the spring. Among the novelties, shoes
of bright colors, both solid and in combination with
other colors, are being sampled in increasing numbers.
According to Department of Commerce reports, the
production of shoes in the United States last year was
only a little over 2 per cent less than in 1919, the
largest year on record, and the gain, as compared with
1914, was 31,209,990 pairs. The figures follow :
Retail shoe trade
(In terms of dollars)
1.
2.
3.
1922.............................................................................. 323,876,458 pairs
1921..........................
285,518.453
“
1919...............................................................................331,224,628 “
1914.............................................................................. 292,666,468 “
Conditions in the boot and shoe industry
Production .............................................
Shipments ...............................................
Orders booked.......................................
Orders on hand ...................................
Cancellations ..........................................
Stocks on hand .....................................
umber of operatives on payroll . . .
January, 1923 January, 1923
compared with compared with
December, 1922 January, 1922
+ 14.8%
+ 14.6“
— 5.2“
— 1.0“
+111.9 “
+ 17.1 “
+
3 .8“
+
9.1%
+
4.9“
+ 22.3 “
+ 25.7 “
—
+
5.4“
9 .2“
Sales o f shoes at wholesale during the month have
hot been large, as February is always a dull month in
retail trade.
From the table printed on page 10 it
will be seen that sales at wholesale during January,
a though as usual smaller than in December, have in
— 33.6%
+ 1 2 .6 “
Stocks (selling price):
(a) Jan., 1923, as compared with Dec., 1922... .
(b) Jan., 1923, as compared with Jan., 1922... .
— 11.6%
— 7.4 “
Rate of turnover (times per year based on
cumulative period):
(a) January 1 to January 31, 1923........................
(b) January 1 to January 31, 1922 ........................
Number of stores reporting above items:
1..................30
2 and 3 ..................26
3.0
2.4
The tone of the leather markets during the month
has been distinctly firm ; prices in all lines are well
maintained, and some have advanced.
Leather
The sales of heavy leathers have been
large, offal is moving freely, and some
sales are reported at an advance in price. Sole leather
in heavy and extreme light weights, and belting butts,
continue to be in good demand, but medium weights of
sole leather are still in rather heavy supply and are
difficult to sell.
In upper leather, sales of calf leathers are increas
ing, especially in the lighter weights, and the premium
paid for heavy weights is now only about 2 cents per
foot as compared with from 5 to 7 cents earlier in the
season. Kid leather sales are reported by most tanners
to be in fair volume and are nearly as large as produc
tion. At this time in the year it is quite usual for
tanners to accumulate some stock. Because of the high
prices of goat skins of all descriptions, quotations for
kid leather are well maintained and for some selec
tions are slightly higher. Large skins are moving
slowly and stocks of these have become somewhat big
ger during the past sixty days.
The demand for sheep leathers, especially for
chamois and hat leather, shows no sign of diminution,
and advances in price made necessary by the higher
prices demanded for raw stock are easily obtained.
In the Third Federal Reserve District the produc
tion o f shoes by reporting firms during January, as
shown in the following table, increased 14.8 per cent
as compared with December, 1922, and 9.1 per cent as
compared with January, 1922.
Number of reporting firms— 38
(In terms of pairs)
Net sales:
(a) Jan., 1923, as compared with Dec., 1922... .
(b) Jan., 1923, as compared with Jan., 1922... .
23
the cost to the American tanner about 10 per cent.
Sales of Chinas, although not as large as usual at this
season of the year, are becoming heavier, and prices
are well maintained. It may be stated that in nearly
every quarter of the world prices are firm, and on this
account the tanner is being convinced that he must re
enter the market and buy at least enough to keep his
plant running. Sheep skins are higher, and as the
demand for this leather is good, the tanners have been
purchasing in moderation. New Zealands, which a
year ago sold at 32/6, including buyer’s commission,
are now 4 5 / plus 2/4 per cent commission; and other
descriptions have advanced in about the same propor
tion. The gain in exchange during the year must also
be added to the cost to the tanner.
Sales of patent leather have declined somewhat.
The demand for patent-leather shoes appears to be
decreasing although this leather has been by far the
most popular material for uppers during the past two
years.
Exports of the leading upper leathers during the
past two years are given in the following table:
1922
Goat and kid..........................
Calf and whole kip..............
Side, (incl. finished splits).
Patent leathers......................
U
1921
41,945,330
22,050,591
16.922,593
38,016,924
27,090,494
11,613,132
6,193,587
19,715,975
This table shows a gratifying increase in our export
trade, in spite of the fact that the average price of all
these leathers was higher in 1922 than in 1921.
Stocks of the following finished leathers, according
to the report of the Department of Commerce, con
tinued to decrease during December, as indicated in the
following table:
Belting butts.......... ....................................................... 4.2 per cent
Cattle side upper............................................................. 2.7
Calf and kip..................................................................... 1.9
“
Goat and kid.......................................................................... 9
Cabretta ............................................................................ 3.4 •
Slight increases, however, were recorded in the stock
of the following leathers:
Backs, bends and side.........................................................9 per cent
Offal, sole and belting................................................... 1.4
but as production o f these two had increased 3.5 and
8.5 per cent respectively, sales were considerably
larger than output.
Collections are reported by all tanners to be good.
Purchases of packer hides have been in sufficient
quantity to take care of offerings, and prices have
changed but slightly during the month.
season w^en the quality is
the poorest of the year, the fact that
prices have held firm is considered an indication of
considerable strength. Calf skins have also been
bought in fair quantity, and although prices are about
a half cent lower than they were a month ago, they are
firm. In these also the poorest skins of the year are
being marketed. The demand for the light weight
skins is considerably better, which is due to two facts,
the increased demand for light-weight calf leather and
the preponderance of heavy weights at this season in
the raw skins. Goat skin markets are still strong, and
although tanners as a rule continue to buy sparingly,
they are now paying prices which a month ago they
absolutely refused to consider. The Indian market
shows only little change as compared with a year ago,
but the rise in exchange during the year has increased
** skirts ^
RUBBER
Stimulated by rising prices, the tire industry has
been improving month by month. The volume of
orders with spring datings, taken at the
R u bber
end of 1922, was fairly large, and in
tires
comparison with the corresponding
period of last year, the January and February demand
showed a considerable gain. The custom of dealers
to place orders in the fall for spring delivery has de
veloped to such an extent that perhaps 75 per cent of
the total orders on the books are for delivery during
the spring months.
As a result of the sharp advances in the quotations
on both crude rubber and raw cotton, tire manufactur
ers raised their prices at the first of the year by from
8 to 12/4 per cent. Although wages have been ad
vanced but little, other costs have increased so much
that an advance in tire prices was inevitable. That it
did not take place sooner was doubtless due to the stiff
competition between the large and small manufactur
ers. It is of great significance that whereas the small
manufacturer with little or no stock had the advantage
on the falling market, he is now at a great disadvantage
in competition with tire makers who bought their crude
rubber cheaply. Companies that wrote off large sums
in 1921, because of the shrinking of inventory values,
and that made but little profit last year on account of
rebates to dealers, look forward at last to a period of
prosperity.
That the steady increase in the life of tires caused
" the number of tires required per car each year to de
cline, until 1922, is shown by the downward course of
the ratio of tires produced to cars registered, as por
trayed bv the chart at top of page 25. The upturn of
the ratio in 1922 may be accounted for by the fact that
the average life of tires has been reduced bv the more
extensive use of inferior or sub-standard tires.
Aided by the heavy output of closed cars during last
fall, the demand for tires since October has been suffi
cient to maintain production, and even to increase it,
at a time when operations are usually curtailed. At
24
desirable help are operating at between 65 and 75 per
cent of capacity. Both skilled and unskilled labor is
more scarce. Wages have not advanced.
Manufacturers’ supplies of raw material are ample,
and with the possible exception of cotton goods, are
easily obtainable. Stocks of finished goods are not
increasing and range from normal to light. Freight
conditions continue to be very unsatisfactory, and it is
impossible to make quick shipments to New England.
Forced upward by the operation of the Stevenson
plan for the restriction of exports from the British
plantations in Ceylon and the Federated
Crude
States, the price of plantation rubber ad
rubber
vanced from the 15 cent level maintained
from February to October of last year to a new level
of about 35 cents. The quotation of 15 cents was low
in comparison with the average price of Para rubber
for the six-year period from 1913 to 1918, of 67 cents,
and was admittedly below the cost of production. The
low market value of rubber resulted both from over
production on the British and Dutch estates in the
East Indies and from the lack of demand in this coun
try, which consumes almost 75 per cent of the world’s
output.
That the Stevenson plan was effective in raising
rubber quotations 140 per cent in such a short period
is due to two reasons. First, over 72 per cent of the
plantation rubber is grown in British colonies and its
export can be controlled by a tax. Secondly, the plan
was adopted at a time when the American rubber in
dustry needed large quantities of crude rubber. As
shown by the chart below, imports of crude rubber
during 1922 were much heavier than in 1921, and their
increase has been coincident with the advance in prices.
RATIO OF TIRES PRODUCED TO AUTOMOBILES REGISTERED
1916
1917
1918
1919
1920
1921
1922
Until 1921, the num ber of automobiles registered increased faster than
the production of tires, for the life of tires increased in length.
Consequently the num ber of tires per car fell from 5.27 in
1916 to 2.61 in 1921, but the increasing use of sub
standard tires in 1922 caused the ratio to rise
to 3.32
Source— National Automobile Chamber of Commerce
present many plants are working night shifts. Most
manufacturers have disposed of a large part of their
finished stocks, and in this district these may be termed
light. Although many dealers have liquidated their
heavy inventories and now carry stocks of normal size,
others still hold considerable quantities.
The freedom with which established dealers have
often granted credit to their customers has made col
lections a serious problem for the manufacturer.
Although it is too early in the year to determine
how great a demand for mechanical goods is likely to
■_
.
develop, manufacturers report that the
echanical
business booked is larger than in
® °° s
1922. In December, the demand was
poor, and in January it was but little better; but it has
now improved sufficiently to be described as fair. Iron
and steel mills have perhaps been the best buyers.
Orders are fairly well distributed among all kinds of
mechanical goods, but the improvement in the demand
for hose since the first of the year is outstanding.
Some price lists have been raised 10 or 15 per cent,
and other advances are announced for the near fu
ture. But in spite of the higher quotations on cotton
dock and crude rubber, price increases on mechanical
goods have not been universal; in some cases they have
been prevented by competition among manufacturers.
Plants that can use reclaimed rubber find that quotaOons on scrap have advanced relatively less than those
°n crude rubber.
Although the majority of the orders booked are for
sP°t delivery, some plants report that 50 per cent of
their orders are for shipment during the next four
months. Those companies that cannot secure suffi
cient orders at acceptable prices and those that lack
IMPORTS AND PRICES DF CRUDE RUBBER
Im ports of crude rubber averaged m uch higher in 1922 than in 1921,
which caused surplus stocks in the world to decrease. T hat the
price advanced 140 per cent in four m onths has been due
not only to the restriction of exports from planta
tions under British control, but also to the
increase of the American demand
Sources— "Dun’s Review” and “ India Rubber World”
25
In spite o f the weaknesses that have been pointed out
in the details o f the Stevenson plan, such as the inac
curacy of using the 1920 output as the “ standard pro
duction” for plantations with trees o f different ages,
and the liability of hoarding or of tax evasion, the
promise o f stabilized prices is extremely attractive to
many manufacturers. This is by no means the first
instance in which attempts have been made to dimin
ish the ill effects of over-production by controlling the
supply during the period when the readjustment of sup
ply and demand is taking place, for the supplies of
coffee, wool, and silk have at times been under partial
control.
and paper industry of Sweden is still unsettled and
is actually growing in proportions. The foreign pulp
manufacturers have regained their pre-war trade in
this country and now furnish over one-fifth of the
chemical pulps used in our paper mills, as the following
chart shows:
PRODUCTION AND IMPORTS OF CHEMICAL PULPS
ML N
IL IO S
PAPER
The demand for paper is now very good and shows
marked improvement since last month. Paper makers
report that their orders are considerably in excess of
those of a year ago, and manufacturers of wrapping
papers, who last month were placing part of their out
put in stockrooms, now have sufficient orders to absorb
their entire production. Nearly all of the mills in this
district are running at capacity or very near it. Pro
ducers of magazine and book papers find the demand
exceptionally good for this season of year and are
running their plants at about 95 per cent o f capacity.
Paper-board makers have noted a decrease in the call
for some grades o f board, but they are still well sup
plied with orders and are operating at about 90 per
cent. Manufacturers of glazed paper state that the de
mand is heavy and that plant operations are at capacity.
Makers o f envelopes report a decided improvement
over last month in the call for their products and are
running at 75 or 80 per cent. About 90 per cent of
the orders booked by manufacturers are for imme
diate delivery, but makers o f magazine and book papers
have a fair amount o f orders for future delivery.
Paper wholesalers found the demand rather dull dur
ing the first few days of the month, owing to heavy
buying at the close of last month, but since then busi
ness has picked up.
On February 1 most manufacturers advanced their
prices,— 5 per cent on the cheaper grades of paper, and
from 8 to 10 per cent on the finer grades. The ad
vance was caused by the sharp rise in chemical pulps
last month, but was expected by the trade and resulted
in a flurry of buying in the closing days o f January.
Boxboards, notably chip and news board, declined
slightly early in the month from the peak price at the
close o f January; but they have held firm since the
drop. They are now from 15 to 25 per cent higher
than they were on January 1. Waste paper stock
used in the manufacture of board has also declined
slightly. Both foreign and domestic mechanical pulp
quotations are higher than they were a month ago,
and imported chemical pulps are holding firm at the
advanced prices of last month, as the strike in the pulp
1914
1916
1917
1915
1919
1920
1921
1922
Despite the fact that the Scandinavian countries, which are our chief
foreign sources of chemical pulps, were neutral during the war,
imports from them showed a decline from 1916 to 1919.
Foreign countries now furnish us with over 20 per
cent of our chemical pulps, having more than
regained their pre-war trade with the
United States
(1922 imports partly estim ated)
Sources— Department of Agriculture, Federal Trade Commission and
“ Monthly Summary of Foreign Commerce”
In general, the finished stocks at the mills are light
and are about the same as they were at the close of
January. And no mills are increasing them. The
majority of manufacturers have covered their require
ments in raw materials for two or three months and
some have placed orders to meet their needs until
July 1. O f coal, however, few mills are buying more
than a 30 day supply, because they expect further de
clines in price.
Transportation difficulties are still causing manu
facturers some concern, particularly on outbound ship
ments to northern New York and New England.
Some railroads in Michigan have put embargoes into
effect, and manufacturers who secure raw materials
from that region are obliged to secure permits before
their goods can be shipped.
Labor is not quite so abundant as it was last month,
and many manufacturers report an increasing turn
over, especially of unskilled labor. Some mills, par
ticularly those in the larger cities, have granted wage
advances during the month in order to bring their pay
scales to the same level as in other industries. En
velope makers state that it is practically impossible to
secure girl workers at present rates, and as a result
their output is lower than the orders on hand justify.
Paper mills in country districts, however, have an am-
pie supply of all kinds of help and their wage scales
are unchanged.
Collections are slightly better than they were last
month. Manufacturers report that they are from good
to very good, and wholesalers that they are from fair
to good.
PAPER BOXES
Box makers, without exception, report that the de
mand for paper boxes is better than last month and
from 15 to 20 per cent greater than it was a year ago.
The shoe, shirt, hardware, and candy trades are buying
heavily, and the hosiery industry is purchasing more
boxes than it has for many months. Candy manu
facturers are working on Easter orders, and those who
make Easter specialties have placed large orders for
boxes. Although all box makers who manufacture
hosiery boxes note an improvement in business, they
state that the demand from hosiery manufacturers is
still far from heavy. Folding cartons, display con
tainers, and mailing tubes are in good request, as are also
extra fancy boxes for perfumers. Plant operations vary
greatly. A few manufacturers are running at only 50
per cent of capacity, chiefly because they do not care
to quote as low prices as their competitors; but the
majority are operating at from 75 to 100 per cent.
The average for the district is about 75 or 80 per cent.
Manufacturers o f fibre containers and corrugated
boxes report that considering the season the demand is
good. But in this branch of the industry heavy price
cutting is causing some manufacturers to curtail out
put, and plant operations are at only 70 per cent of
capacity. The big majority o f orders are for im-
mediate delivery, but a few box makers report that 50
per cent of their orders are for delivery in March.
The output of box makers during the year 1922 ex
ceeded that of any previous year except 1920. The
preceding chart, based on statistics compiled by the
Federal Trade Commission, shows that the production
of paperboard in the United States during 1922 ex
ceeded that of 1919 but did not equal that of 1920.
The recovery of the industry from the depression of
1921 is very marked.
Although there have been no recent changes in board
prices, all grades of box boards are from 15 to 25
per cent higher than they were on January 1. Because
of the keen competition in the industry, few manu
facturers have been able to advance prices sufficiently
to cover this increase in raw materials. However, most
box makers raised their prices slightly early in the
month.
The labor supply at many box factories is inadequate,
and manufacturers report increasing difficulty in secur
ing skilled workers and good unskilled help. The
turnover of labor is growing, and despite the advances
in wages which many producers have granted, box
makers find it increasingly difficult to hold some of
their operatives. In fact, some factories that are
well supplied with orders are unable to operate at more
than 85 or 90 per cent of capacity because they cannot
get labor. Wages are firm or advancing.
Many railroads have re-established embargoes on
certain classes of goods, and box manufacturers find
that these are seriously affecting their business. In
bound shipments of raw materials are coming in very
slowly, and the manufacturer’s outbound shipments to
northern New York and the New England states are
being delivered many days, and even weeks, late.
Although a few makers report that collections are
better, the majority note no change, and they may be
classed as from fair to good.
TOBACCO
The exceptionally good demand for cigars which was
noted by all manufacturers last month has not continued with some, although all cigar
Cigars and makers report that orders are more
cigarettes p|entjfui than they were a year ago.
The large manufacturers find that the call for cigars,
particularly of Class C grades, is very good for this
season of the year, and nearly all are working at or
close to capacity. Some of the smaller manufacturers
find demand seasonally dull, but many have sufficient
business to warrant capacity output. The average rate
of production in factories in this district is about 85
or 90 per cent. Makers report that the biggest increase
in demand over that of February, 1921, is apparent in
the larger industrial centers, and that business in the
purely agricultural districts shows a decrease from
Normally, December and January are the d ull
est m onths of the year in the paper-box
industry
Source— Federal Trade Commission
27
that of a year ago. Producers of smoking and chewing
tobaccos find the demand very active and are operating
at capacity. Makers of Turkish cigarettes state fhat
the demand is only fair and is no better than it was a
year ago, production being at about 50 per cent of
capacity.
Consumption of Turkish cigarettes has
shown a marked decline from the high mark of 1919
and 1920, whereas the demand for American cigarettes
has been steadily growing.
The following chart, based upon sales of internal
revenue stamps, shows that in January, 1923, there
was a marked increase in production of the major
classes of cigars and of small cigarettes over that of
January, 1922.
PRODUCTION OF CIGARS AND
(5Sor!«s}
(5j$*o60
CIGARETTES
(6}{+ol-0
The production of cigars was 26 per cent larger, and that of cigarettes
44 per cent larger, in January, 1923, than in January, 1922.
December, 1922, and January, 1923, are the only m onths
since August, 1920, in which the output of Class B
cigars showed an increase over that of the same
m onths in the previous year
Source— Sales of Internal Revenue Stamps by the Commissioner of
Internal Revenue
Prices for cigars are firm and unchanged, although
trade concessions and advantages offered to buyers
last year have been entirely withdrawn bv manu
facturers. Smoking and chewing tobacco prices are
steady, but cigarette prices still show some signs of
softening. The cost of all grades of tobacco entering
into the manufacture of smoking products is consider
ably higher than it was a year a g o ; but during the past
month there have been only slight advances. Cigar
manufacturers state that they will be forced to advance
their prices when they start using 1922 tobaccos, but
on account of the determined resistance to higher
prices by retailers none have found it expedient to do
so yet.
Cigar stocks at many factories are increasing and are
considerably larger than on the first of the year; but
they are by no means heavy. Class A and Class B
cigars are accumulating, but stocks o f Class C grades
are still light. Most manufacturers have ample stocks
28
of fillers and binders, but their supply of wrappers, es
pecially Sumatra, is only moderate.
At the beginning of the month many of the large
Philadelphia manufacturers advanced the wages of
cigar makers in their city factories by from 10 to 11
per cent. Outside of Philadelphia, however, wages
have not changed, as the labor supply in the smaller
cities and towns is more plentiful.
Freight shipments to Western and Southern points
have shown decided improvement during the past
thirty days, but to the Northeast express shipments are
still being resorted to because of the great delays in
freight movements to that region.
Collections continue to be good with large producers,
but many of the smaller manufacturers find that they
are only fair.
Since March of last year, when cigar tobacco prices
touched the lowest level since the war, prices of leaf
have moved upward, and today some
Tobacco
grades have almost reached their war
leaf
time levels. This is especially true of
Pennsylvania and Ohio tobaccos; but Wisconsin, Con
necticut, Florida, Flavana, Porto Rican and the better
grades of Sumatra and Java tobaccos are also con
siderably above last year’s levels.
The Lancaster tobacco market, the center of the
Pennsylvania tobacco-leaf district, has been very active
for the past three months. Reports from there state
that buying by manufacturers and dealers is much
heavier than it was a year ago. Most of the 1922 crop
has been purchased from the growers, only 10 or 15
per cent being still in the hands of farmers. In Febru
ary of 1921 the average price for good sound. Pennsyl
vania tobacco was from 12 to 14 cents per pound; today
the average price is from 16 to 20 cents per pound.
Some 1921 Pennsylvania tobacco is still in the market,
and 1921 wrappers are selling at from 25 to 30 cents per
pound, whereas the few fillers that are still left are
bringing from 10 to 15 cents. The 1922 wrappers are
selling at from 16 to 20 cents per pound, but some ex
ceptional lots have sold at 22 cents, and fillers in the
bundle are bringing from 4 to 6 cents per pound at the
farm. Some dealers have sold 1922 fillers in large
quantities for as much as 8 and 8 l cents. Leaf dealers
A
agree that the quality of the 1922 crop is better than
that of the 1921 crop, as there is little spotting and
discoloration of the leaves and not quite so much is
flea-bitten. Some very fine binders have been secured
from the early 1922 crop, and the cure of the 1922
tobacco is highly satisfactory.
The better grades of Ohio tobacco have been bought
up by dealers and manufacturers, and the situation in
the Ohio district is closely analogous to that in Penn
sylvania. These two districts, which are free of pool
control, have been fairly well bought out at prices to
farmers which aproach war-time levels. The Con
necticut and Wisconsin pools h a v e made heavy sales
at prices from 15 to 20 per cent above those of last year,
and the markets in these districts show increasing
activity.
The best grades of Havana and Porto Rican have
almost disappeared from the market, although the
poorer grades are still in abundant supply. The new
crops are now being grown, and reports from Cuba
state that cool dry weather at a time when warm moist
weather would help the crop wonderfully, is retarding
the growth. Florida and Georgia growers are now
planting their seed beds for the 1923 crop. The shadegrown tobacco raised last year by these districts proved
very satisfactory for wrappers of the lower priced
cigars and was rapidly bought up by manufacturers.
Next month the inscriptions on Sumatra tobacco will
open at Amsterdam. The best grades of the color de
sired by American manufacturers are reported as not
very plentiful, but the poorer grades such as are used
in Continental Europe are more or less of a drug on
the market. Some Sumatra was sold early in the
month to Americans, out of hand, at prices reported
higher than the opening price of last year at Amster
dam. As the tobacco is en route from Sumatra it is
difficult to tell just how good the quality was. The
buying of Java wrapper will also begin at the Amster
dam inscriptions.
AGRICULTURE
The farm value of farm products, as estimated by
the United States Department of Agriculture for the
states o f New Jersey, Pennsylvania, and Delaware,
show a slight appreciation over those of a year ago.
Apples, potatoes, and sweet potatoes are considerably
below last year’s prices, but extra large yields of these
AVERAGE YIELD OF CROPS PER ACRE
PENNSYLVANIA, NEW JERSEY AND DELAWARE
Estimated farm value of important products
December 15, 1921 and 1922
New Jersey
1922
1921
Pennsylvania
1922
1921
Delaware
1922
1921
Hogs, per 100 lbs....... $9.00 $9.00 $9.30 $8.50 $10.10 $9.80
Beef cattle, per 100
lbs...............................
6.00
7.50
7.20
6.30
7.00 6.60
Turkeys, per lb...........
.54
.49
.47
.50
.45
.41
Milk cows, per head.. 85.00 80.00 65.00 65.00 66.00 70.00
Horses, per head........ 150.00 140.00 120.00 120.00 85.00 89.00
Apples, per bu............
2.30
1.25
1.10
2.60
.57 2.40
Beans (dry) per bu..
3.90
3.50
3.50
4.20
Timothy hay, per ton. 25.00 24.70 15.00 17.00 16.50 is.io
Clover hay, per ton ... 24.00 23.4C 14.00 16.00 15.00 12.80
January 1, 1922 anc
1922
1923
1922
1923
1922
>1.18 $1.11
.82 .59
.61 .50
.93 1.03
.75 1.28
$1.17
.74
.48
.88
.71
$1.04
.58
.46
.87
1.24
$1.12
.80
.58
1.08
.70
$1.00
.50
1923
Wheat, per bu.............
Corn, per bu...............
Oats, per bu................
Rye, per bu.................
Potatoes, per bu.........
Sweet potatoes, per
bu................................
Hay (loose), per ton.
Butter, per lb..............
Eggs, per doz.............
Chickens, per lb.........
1923
.88 1.52
1.20
19.70 21.50 15.00
.51
.53 .51
.56
.63 .74
.30 .328) .22
!
1.90
.46
15.00 19.50
.49
.42
.41
.55
-.217
.23
• • • •
,, ,,
16.00
.50
.55
.24
Yields of the important crops in 1922 were, on the
whole, bountiful, and the per acre production of hay,
wheat, apples, potatoes, and sweet potatoes was con
siderably greater than in 1921. The preceding chart,
giving the average of the per acre yields in the states
of New Jersey, Pennsylvania, and Delaware, shows
that the yield of wheat and potatoes equalled previous
high records and that that of corn equalled the ten-year
average.
At the present time farmers are purchasing their fer
tilizers and seeds in preparation for the spring plant
ings. An interesting fact revealed by fertilizer manu
facturers is that the farmers’ purchases of commercial
fertilizers so far this year are no greater, or are even
A t no time have the yields of corn and wheat fluctuated as violently
from year to year as have those of potatoes. Potatoes have a very
high water content and the yields are adversely affected by
too m uch or too little rain. The years of 1920 and 1922
were ideal for potato culture
Sources— " Monthly Crop Reporter” and “ Weather, Crops and Markets”
crops will counterbalance to a big extent the lower
price per bushel. Wheat and corn, the two principal
grain crops, are considerably higher than they were at
the beginning of 1922. Hay is slightly lower, but
better yields than in 1921 are the cause of the decrease.
Poultry products and butter are lower, but hogs,
turkeys, milk cows, and horses have increased in value.
On the whole, the farmer in this district has realized
a slightly better gross return for the products which he
raised in 1922 than for those of 1921. The following
table gives the Department of Agriculture’s estimate
of farm values of the chief products raised in this
district:
29
smaller, than they were in 1922. Either the farmer
has not the cash to buy, or his confidence in some of his
principal money crops has been badly shaken by very
low prices at the time o f harvest.
The prices o f mixed fertilizers are from 5 to 10 per
cent lower than they were in February, 1922; but some
of the ingredients o f mixed fertilizers, particularly
nitrates and ammonia salts, are nearly 10 per cent
higher. Muriate of potash is the same as it was a year
ago, and acid phosphates are 10 per cent cheaper.
Potash has regained its pre-war importance as a ferti
lizer ingredient, and from 90 to 95 per cent of the total
amount used in this country is again coming from
Germany. The production of potash from kelp and
other submarine plants has practically stopped, because
it became unprofitable after the opening of world
markets to the German potash mines. Farmers to-day
are doing more home mixing of fertilizers than in pre
war days, and manufacturers state that they are not
buying full-mixed fertilizers in nearly as large amounts
as in 1914. But the total amount o f commercial ferti
lizers used on the farms of the United States is much
larger than it was in 1914, the greatest increase in the
past ten years having taken place in the South.
Much has been said of the farmer’s lack of interest
in foreign events. Whether or not he is as indifferent
as he is said to be, the fact remains that he is vitally
concerned in the welfare of the rest of the world, as
foreign countries, by their purchases o f domestic sur
plus production, make better farm prices possible. This
is especially applicable to the wheat grower and the
cotton producer, because one third of the wheat crop
and over one half o f the cotton crop is consumed in
foreign countries. As the following chart shows, most
of our corn output is consumed at home. In fact, about
PRODUCTION AND EXPORTS OF WHEAT, CORN AND COTTON
ML N
IL IO S
BUSHELS
3.000
2.500
wo
o
1.500
1.000
300
0
HEW ffi »
198199
13
9
Although foreign countries, principally European, take only a negli
gible part of our corn crop, they are heavy purchasers of Ameri
can cotton and wheat. Hence the prosperity of the western
wheat regions and the southern cotton belt depends
largely upon the buying power of Europe
Sources— Department of Agriculture and Department of Commerce
two-thirds of the corn raised seldom leaves the farm,
being used principally as a cattle feed and fattener;
and therefore corn has not the commercial importance
of wheat or cotton.
The weather thus far has not been favorable to the
winter wheat crop in the Third Federal Reserve Dis
trict. The lack of snow has left the wheat fields ex
posed to the ravages of alternate thaws and freezings,
and consequently the amount of wheat w’hich is winter
killed is considerable. This, in addition to the poor
start that much of the wheat had last fall because of
the dry weather, makes it u n lik e ly that this year’s crop
will be as good as last year’s.
30
COMPILED AS OF FEBRUARY 23, 1923
This business report will be sent regularly without charge to any address upon request
T H E T H IR D F E D E R A L R E S E R V E D IS T R IC T
Population (1920)
Area in square miles
Persons per square mile (1920)
Number of industrial workers (1919)
Number of industrial establishments (1 9 1 9 )...
Value of manufactured products (1919).......... $5,216,756,886
Counties of Third Federal Reserve District
M
anufactures
County
Population
Pennsylvania
Adams ................
Bedford .............
Berks ..................
B la ir ....................
Bradford ...........
Bucks .................
Cambria .............
Cameron ............
Carbon ...............
Center .................
Chester ...............
Clearfield ...........
Clinton ...............
Columbia ...........
Cumberland . . . .
Dauphin .............
Delaware ...........
Elk ......................
Franklin .............
Fulton .................
Huntingdon ----Juniata ...............
Lackawanna ....
Lancaster ...........
Lebanon .............
Lehigh ................
Luzerne ..............
Lycoming ..........
McKean .............
Mifflin .................
M onroe...............
34,583
38,277
200,854
128,334
53,166
82,476
197,839
6,297
62,565
44,304
115,120
103,236
33,555
48,349
58,578
153,116
173,084
34,981
62,275
9,617
39,848
14,464
286,311
173,797
63,152
148,101
390,991
83,100
48,934
31,439
24,295
No. of
w
age
earners
2,040
1,404
41,072
19,973
4,529
15,086
15,023
989
7,398
1,985
12,561
5,904
5,907
6,064
4,289
23,765
67,396
5,793
5,293
77
3,611
656
21,124
23,590
10,076
24,215
24,856
12,081
5,419
4,917
2,000
No. of
establish
m
ents
145
159
1,031
167
147
498
276
21
116
169
336
267
133
183
188
416
302
96
170
44
179
81
484
906
313
567
579
317
206
76
100
Manufactures
County
Value of
products
$8,564,398
9,080,375
193,859,538
87,860,380
22,091,853
68,575,038
97,554,133
7,779,461
40,833,425
7,251,650
76,895,119
27,516,334
23,662,546
47,115,637
17,430,992
163,518,414
382,989,130
43,207,007
25,059,673
399,912
12,519,662
2,332,326
73,583,554
112,445,407
43,940,189
149,098,110
94,702,494
58,912,199
38,241,405
22,208,481
8,544,527
Population
No. of
wage
earners
No. of
establish
ments
Value of
products
Montgomery _
_
Montour .............
Northampton . . .
Northumberland
Perry ..................
Philadelphia----P ik e .....................
Potter .................
Schuylkill ..........
Snyder ................
Sullivan ..............
Susquehanna ....
Tioga ..................
U n io n ..................
Wayne ................
Wyoming ..........
York ...................
199,310
14.080
153,506
122,079
22,875
1,823,779
6,818
21,089
217,754
17,129
9,520
34,763
37,118
15,850
27,435
14,101
144,521
28,580
1,636
32,676
11,468
992
281,105
174
2,028
12,060
785
404
2,055
1,773
973
2,453
510
27,117
712
51
427
285
106
9,064
49
81
457
85
41
81
94
52
170
53
1,023
$175,263,478
6,148,154
200,405,171
50,149,508
4,466,442
1,996,481.074
414,740
14,180,744
50,345,292
4,512,527
2,714,451
7,124,401
19,886,255
4,799,323
9,356.881
4,843,139
122,964,979
New Jersey
Atlantic ..............
Burlington .........
Camden ..............
Cape May .........
Cumberland ----Gloucester .........
M ercer................
O cean..................
S a lem ..................
83,914
81,770
190,508
19,460
61.348
48,224
159,881
22,155
36,572
2.970
9,431
48,325
612
9,094
3,003
30,515
468
6,058
259
201
428
88
254
132
497
90
108
12,680.094
61,319,903
246,555,714
2,718,908
29,505,313
24,824,967
158,361,221
1,523.294
30,725,756
Delaware
Kent ....................
New Castle........
Sussex ................
31,023
148,239
43,741
1,043
25,751
2,241
108
357
203
5,086,966
152,272,331
7,713,712
32
@FedFRASER