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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT MARCH i, 192.4 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA SUMMARY OF BUSINESS CONDITIONS IN THE UNITED STATES Production of basic commodities increased sharply in January, the volume o f distribution continued larger than a year ago, and the wholesale price level remained unchanged. In February there was an increase in the demand for credit for commercial purposes. tory employment. The largest decreases occurred at plants manufacturing food products and tobacco. Con tract awards for new buildings in January were slightly higher in value than in December and were 26 per cent above a year ago. The Federal Reserve Board’s index of production in basic industries increased 8 per cent in January and was at approximately the same Production level as a year ago. This in crease followed a downward movement which had been under way since May, 1923. The increases over December, which occurred in most o f the industries, were particularly large in the pro duction o f steel ingots, lumber, and bituminous coal and in mill consumption of cotton. A small but general reduction o f working forces at industrial establish ments resulted in a slight decline in the index of fac Railroad shipments, particularly o f miscellaneous mer chandise increased during January and total car loadings were somewhat above the high Trade level of January, 1923. The index o f wholesale trade increased 11 per cent during January and was slightly higher than a year ago. Sales of groceries, meat, and drugs were larger than in January, 1923, while sales o f dry goods and shoes were smaller. Retail trade in January showed the usual seasonal decline. Compared with a year ago department store sales were 7 per cent larger and stocks o f merchandise at these stores, after declining in Jan- Index of 22 basic com m odities corrected for seasonal variations. (1919 = 100.) Latest figure—January, 120. Index of U. S. Bureau of Labor Statistics. (1913 = 100, base adopted by Bureau.) Latest figure—January, 151. 2 T he B u s i n e s s R M ar c h e vi ew Weekly figures for m em ber banks in 101 leading cities. Latest figure— ' February 13. Weekly uary, were 6 per cent above last year’s level. Sales of mail order houses in January exceeded those of a year ago by 11 per cent. increase wras accompanied by a decline in loans secured by stocks and bonds. Total loans and investments o f the reporting banks are now slightly larger than a year ago, commercial loans and loans on stocks and bonds are larger, but investments are smaller. The wholesale price index o f the Bureau o f Labor Statistics remained unchanged during January and was at a level 3 per cent lower than a Prices year ago. Prices o f fuels and building materials, which had been declining since early in 1923, increased in Jan uary, while prices o f farm products, foods and clothing declined. During the first two weeks o f February prices o f hogs, sugar, hides, lumber, and metals ad vanced, while prices of cotton, wheat, and silk declined. The volume of borrowing for commercial purposes at member banks in leading cities, after an almost con tinuous decline for more than Bank credit three months, increased consider ably during the latter part of January and the first two weeks in February. This figures for 12 Federal Reserve February 20 Banks. Latest figure— A t the Federal reserve banks the total volume o f earning assets fluctuated within narrow limits during February. The large return flow o f currency and the repayment of discounts, which characterized the early weeks o f the year, did not continue after January. Since the first week in February the volume o f discounts for member banks has been about $500,000,000 and the holdings o f securities purchased in the open market about $400,000,000. The easier money conditions o f January were fo l lowed in February by slightly firmer rates on accept ances and on short-term Government securities. Com mercial paper rates in the New York market remained unchanged at 4M per cent. TABLE OF CONTENTS Page A g ricu ltu re ................................................. Bankers’ acceptances .............................. Bricks ......................................................... Building ..................................................... Cigars and cigarettes ............................. Coal, anthracite ....................................... Coal, bituminous ..................................... Coke ................................................. '.-----Commercial paper .................................... Cotton goods ............................................. Cotton, raw .............................................. Cotton yarns ......................,...................... District summary ..................................... Drugs, wholesale ................................... Drygoods, wholesale ............................. Employment and w a g e s .......................... Financial conditions ............................... Floor c o v e rin g s ......................................... Foreign exchange ................................... 28 7 12 11 29 15 16 16 7 17 16 17 3 10 10 3 6 22 7 PAGE PAGE Furniture ................................................... Groceries, wholesale ............................... Hardware, wholesale ............................ Hides and skins ....................................... Hosiery ....................................................... Iron and steel ......................................... Leather ....................................................... Lumber ....................................................... National summary . . ; ........................... Paints ......................................................... Paper ......................................................... Paper boxes ............................................. Plumbing suDplies ................................... Real Estate ............................................... Retail trade ........................................... Rubber, crude ........................................... Rubber tires ............................................. Rubber, mechanical g o o d s ...................... Savings deposits ..................................... 23 11 10 23 21 14 24 13 l 13 27 28 13 14 8 25 27 26 6 Securities ..................................... Shoes .......................................................... Shoes, wholesale ..................................... Silk goods ................................................. Silk, raw ................................................. Silk, thrown ............................................. Summary, district ................................. Summary, n a tio n a l................................. Synopsis o f business conditions ........ Underwear ................................................. Wholesale trade ..................................... WToolen and worsted goods .................. W oolen and worsted yarns .................. WTool, raw ................................................. Jewelry, wholesale ................................. Peper, wholesale ................................... Slate ............................................................. Tobacco l e a f ............................................... Special Article: How the Business Review is Compiled, 32 6 24 9 20 19 21 3 l 4 22 9 18 18 18 11 11 13 28 I S U M M A R Y O F B U SIN E SS C O N D ITIO N S IN THE TH IRD FE D E R A L R E S E R V E D IS T R IC T Evidence o f increasing activity was apparent in several o f the primary industries during the past month. Distribution o f goods, as measured by freight-car load ings, was heavier than during any similar period, whole sale trade was satisfactory, and sales at retail were larger than those o f a year ago. Wholesale commodity prices, after declining for three months, stiffened in January, with the result that the general price level was the same as in December. Credit conditions continued easy, and money rates declined further. The general price level since the first o f the year has been relatively stable, the index of the Bureau o f Labor Statistics in January showing no change from that o f December. O f the 404 commodities represented in the index, increases occurred in 138, decreases in 101, and no change in 165. Am ong the groups in which the largest reductions took place were foods, and cloths and clothing. The greatest increase was in the fuel and lighting group, and was chiefly due to higher prices for bituminous coal, crude petroleum, and gasoline. Easier money rates are reflected in the increasing number o f sales o f commercial paper at A1 / and 4j4 per cent. Am ong the individual industries iron and steel is one o f the outstanding leaders in the present revival. Not only is production increasing, but manufacturers state that the numerous inquiries point to substantial business for the future. Building operations, considering the season, are being maintained at a high rate. In addi tion, to judge from the value o f building permits issued in this district during January, which was over $2,000,000 above that for January, 1923, a large amount o f construction is being planned for the spring. Moreover, most building materials are in fair request, although this is usually a dull season. Conditions in the leather trade have continued to improve, and betterment is apparent in practically all branches o f the industry. Hides and skins have advanced sharply, and shoes and other fin ished products are selling more freely. Encouraging reports also are received as regards other lines, includ ing rubber tires and other rubber products, tobacco, and paper. The textile situation, on the contrary, shows little improvement. Changes and uncertainties in the prices o f textile products and raw materials continue to exert a depressing effect. Production schedules in the textile industries, however, have been maintained at about tbe same percentage o f capacity as they were last month. Employment at industrial establishments in this dis trict decreased further in January. But wage rates were practically unchanged, though in some plants there were increases and in a few reductions. EMPLOYMENT AND WAGES During January a further shrinkage occurred in the volume o f employment and in wages paid at reporting industrial establishments in Pennsylvania, New Jersey, and Delaware. The number of wage earners on the pay rolls o f reporting plants decreased 2.6 per cent from December to January. This is the fourth consecutive monthly decline and represents a loss o f more than 6 per cent from the volume o f employment in September, 1923. Total wages paid were nearly 7 per cent less than in December, and average weekly earnings fell off more than 4 per cent. The heaviest decrease in employment and wages— in plants engaged in car construction and repairs— is at tributable principally to curtailment in one large estab lishment. Appreciable decreases in employment also occurred at blast furnaces, structural iron works, can neries, glass plants, and factories making explosives. Important increases in employment were reported by shipyards, textile dyeing and finishing plants, sugar re fineries, pottery plants, and musical instrument factories. Twenty-eight o f the 48 industries included in our survey reported smaller employment in January than in December. A large majority o f the industries also reported de creases in total wages and in average weekly earnings. Changes in wage rates, however, occurred in only 63 establishments out o f 1,054 reporting. Fifty-three firms reported increases o f from 1 to 20 per cent, affecting 3,889 wage-earners; and 10 establishments reported de- The movement o f freight has been particularly heavy during recent weeks. For a time, early in the year, it appeared that the volume o f freight traffic was going to run behind that o f last year, but each week loadings have increased substantially, and much o f this is due to large shipments o f merchandise. 3 T 4 he B u s i n e s s R M ar c h e v i e w SYNOPSIS OF BUSINESS CONDITIONS Compiled as of February 21, 1924 Business Brick Cigars and cigarettes Coal, anthracite Coal, bituminous Coke Demand Third Federal Reserve District Prices Fair to good Generally firm Fair to good Fair to good P'air Fair Firm Unchanged Unchanged Unchanged Unchanged to lower Lower Some advances; some declines Unchanged to lower Unchanged Cotton goods Poor to fair Cotton yarns Poor to fair Drugs, wholesale Fair Drygoods, wholesale Fair Floor coverings Fair to good Furniture Fair Firm Groceries, wholesale Fair Firm Hardware, wholesale Fair to good Some advances Hosiery, fullfashioned Hosiery, seamless Fair Poor to fair Unchanged to lower Lower Iron and steel Fair to good Firm Jewelry, wholesale Leather, belting Fair Fair Leather, heavy Fair Leather, upper Fair Unchanged Unchanged Unchanged to higher Unchanged to higher Stocks Moderate Moderate Moderate Heavy Moderate Moderate to heavy Moderate La! >or Wages Supply Sufficient to Unchanged plentiful Unchanged Sufficient Unchanged Some scarcity Unchanged Sufficient Unchanged Sufficient Sufficient or Generally plentiful unchanged Fair to good Moderate to heavy Moderate Moderate to heavy Moderate to heavy Moderate to heavy Fair Some scarcity Moderate Sufficient Unchanged Fair to good Moderate Moderate to heavy Moderate Moderate Sufficient Generally sufficient Unchanged Some reductions Fair to good Sufficient Unchanged Fair Fair to good Heavy Sufficient Unchanged Good Moderate to heavy Sufficient Unchanged Good Sufficient Sufficient Paint Paper Paper, wholesale Paper boxes Fair Fair to good Fair to good Fair Fair to good Moderate Moderate Moderate Moderate Moderate to heavy Sufficient Sufficient Plumbing supplies Real estate Rubber, mechanical goods Fair to good Some advances Unchanged Firm Unchanged Generally unchanged Unchanged Unchanged to higher Unchanged to higher Unchanged Unchanged LTnchanged L'nchanged to lower Unchanged to lower Light to moderate Light to moderate Light to moderate Moderately light Shoes, manufacture Shoes, retail Shoes, wholesale Fair Fair to good Fair to good Silk goods Poor to fair Silk, thrown Poor to fair Slate Fair to good Firm Underwear, heavy weight Underwear, light weight Woolen and worsted goods Woolen and worsted yarns Poor Unchanged Poor to fair Unchanged Spotty Unchanged Fair Unchanged to higher Moderate Moderate Light Light Fair to good Fair Fair Moderate Moderately light Moderate Moderate Moderate Unchanged Generally unchanged Fair to good Generally firm Fair Fair Moderate Fair to good Rubber tires Fair Fair to good Fair to good Fair to good P'air Fair Lumber Fair to good Collections Generally unchanged Some advances Unchanged Fair to good Fair to good Some scarcity L'nchanged Fair P'air to good Fair to good P'air Sufficient Unchanged Fair to good Sufficient l ;nohanged Sufficient Unchanged Fair Sufficient Unchanged Fair Sufficient Unchanged Fair to good Fair to good Poor to fair Some scarcity, skilled Some scarcity, skilled Some scarcity, skilled Some scarcity, skilled Some scarcity, skilled Unchanged Fair to good L'nchanged Fair Unchanged Fair to good Unchanged Fair to good Unchanged Fair to good Sufficient Unchanged Fair to good Sufficient Unchanged Fair to good 1924 T hird F R ederal eserve D i s tri ct 5 EMPLOYMENT AND WAGES IN PENNSYLVANIA, NEW JERSEY AND DELAWARE Group and industry All industries: (48j Number of plants reporting 1,054 Number of wage earners — week ended Total weekly payroll — week ended January Decem Per cent 15, 1924 ber 15,1923 change 392,892 403,577 - Metal manufactures: Automobiles, bodies and parts. Car construction and repair.. . Electrical machinery and appa ratus .................................... Engines, machines and machine tools.................................... Foundries and machine shops.. Heating appliances and appa ratus............................................... Iron and steel blast furnaces. . . Iron and steel forgings........... Steel works and rolling mills.. . Structural iron works............. Miscellaneous iron and steel... Shipbuilding........................... Non-ferrous metals................. 352 25 14 190,167 7,537 16,210 37 18,616 18,514 + 36 75 12,634 14,449 16 11 12 50 12 48 9 7 Textile products: Carpets and rugs.................... Clothing.................................. Hats, felt and other................ Cotton goods.......................... Silk goods............................... Woolens and worsteds............ Knit goods and hosiery.......... Dveing and finishing textiles... Miscellaneous textile products. January 15, 1924 December 15, 1923 Average weekly wage — week ended Per cent change Decem Per cent ber 15,1923 change 6.8 $25.75 $26.89 - 9.7 - 6.9 - 54.1 27 .37 28 .00 2 4 .36 28 .92 2 9 .10 35 .87 - 5.4 - 3.8 - 32.1 2.6 $10,115,271 $10,853,574 - - 4.2 5 ,204,771 2 1 1,05 0 39 4,91 6 5 ,765,183 22 6,66 7 860,591 .6 46 0,04 5 4 6 0,59 0 - .1 24.71 2 4 .8 8 - ’ 12,761 14,786 - 1.0 2.3 34 2,96 4 39 7,37 9 36 0,15 4 41 8,82 2 - 4.8 — 5.1 27 .15 27 .5 0 28 .22 28 .3 3 - 3.8 2.9 3,793 12,484 4,875 50,607 2,862 28,215 13,761 4,124 3,726 13,046 4,7 33 50 ,999 3,031 28,651 13,252 4,0 46 + + — + + 1.8 4.3 3.0 .8 5.6 1.5 3.8 L9 107,042 336,715 129,925 1,451,941 71,645 80 1,303 38 1,039 118,807 112,360 38 2.648 122,302 1,424,512 80 ,435 818,851 38 0,872 116,379 - 4.7 - 12.0 + 6.2 + 1.9 - 10.9 - 2.1 0 + 2.1 28.22 26 .9 7 26.65 28 .69 25 .03 28 .40 27 .69 28.81 30 .16 2 9 .33 2 5 .84 27 .93 2 6 .54 28 .58 28.74 2 8 .76 + + + 6.4 8.0 3.1 2 .7 5.7 .6 3.7 -2 260 15 38 9 24 69 33 48 16 8 76,145 4,0 48 6,444 5,5 13 7,494 19,862 13,921 10,941 5,861 2,061 76.671 4,106 6,473 5,685 7,645 19,737 14,352 10,976 5,6 45 2,0 52 + - .7 1.4 .4 3.0 2.0 -6 3.0 .3 3.8 -4 1,62 0,58 8 108,876 126,491 125,343 180,957 37 0,97 7 300,841 207,993 1.54,604 44 ,506 1,68 0,64 5 113,220 123,258 139,259 186,406 37 6,21 5 31 2,47 8 224,332 157,300 48 ,177 - 3.6 - 3.8 + 2.6 - 10.0 - 2.9 1.4 - 3.7 - 7.3 1.7 - 7.6 21 .28 2 6 .90 19.63 22.74 24 .15 18.68 21.61 19.01 2 6 .38 21.59 21.92 27 .57 19.04 2 4 .50 2 4 .38 19.06 2 1 .77 20 .44 2 7 .87 23 .48 + — - 2.9 2.4 3.1 7.2 .9 2.0 .7 7.0 5 .3 8.0 Foods and tobacco: Bakeries.................................. Canneries................................ Confectionery and ice cream . . Slaughtering and meat packing Sugar refining......................... Cigars and tobacco................. 92 22 8 22 14 3 23 26 ,296 4,6 09 2,5 13 5,604 2,9 59 2,771 7,840 27 ,220 4,6 77 2,834 5,811 3,068 2,702 8,128 - 3.4 1.5 - 11.3 - 3.6 - 3.6 + 2.6 - 3.5 58 2,56 5 119,436 5 8 ,357 110,505 82 ,673 87 ,402 124,192 61 5,46 4 125,733 63 ,699 116,618 84 ,924 91,502 132,988 - 22 .15 25.91 23 .22 19.72 2 7 .9 4 31.54 15.84 22.61 26 .88 2 2 .48 2 0 .07 2 7 .68 33 .86 16.36 - - 5.3 5.0 8.4 5.2 2.7 4.5 6.6 - 2.0 3.6 3.3 1.7 -9 6 .9 3.2 Building materials: Brick, tile and terra cotta prod ucts ..................................... Cement................................... Glass....................................... Potterv................................... 78 20 ,268 20 ,522 - 1.2 56 2,66 7 580,534 - 3.1 27 .76 28 .29 - 1.9 20 14 28 16 3,1 52 5,321 7,613 4,182 3,096 5.3 62 7,983 4,081 + 1.8 .8 - 4.6 -I- 2.5 76,389 139,733 199,659 146,886 79,887 1.54,302 21 5,04 0 131,305 - 4.4 - 9.4 - 7.7 + 11.9 24 .24 26 .26 26.23 35.12 25 .8 0 28 .7 8 26 .94 32.17 + 6.0 8 .8 2.6 9.2 Chemicalsand allied products: Chemicals and drugs.............. Explosives............................... Paints and varnishes.............. Petroleum refining.................. Coke....................................... 74 41 10 12 7 4 29,483 8,071 2,451 1,395 16,258 1,308 29 ,775 8,0 70 2,598 1,434 16,391 1,282 + 1.0 0 5.7 2.7 .8 2.0 85 0.46 3 20 6,94 5 63 ,154 36 ,824 50 2,10 2 41 ,438 88 4,06 6 20 5,43 4 65 ,764 37 ,458 53 5,31 7 40,093 + + 3.8 -7 4.0 1.7 6.2 3.4 28.85 25.64 25 .77 26 .40 30.88 31.68 2 9 .69 25 .46 25.31 26.12 32.66 31.27 + + + + 2 .8 -V 1.8 LI 5.5 1.3 Miscellaneous industries: Lumber and planing mill prod ucts................... .................. Furniture................................ Musical instruments............... Leather tanning..................... Leather products.................... Boots and shoes..................... Paper and pulp products......... Printing and publishing......... Rubber tires and goods.......... Novelties and jewelry............. All other industries................ 198 50 ,533 50,061 + -9 1,29 4,217 1,327,682 - 2.5 25.61 26.52 - 3.4 7 22 6 37 7 30 24 24 19 12 10 2,292 3,327 9,9 78 8,879 706 5,4 33 5,9 20 4,0 13 5,608 2,9 43 1,434 2,271 3,3 70 9,6 27 8,879 709 5,3 32 5,848 4.037 5,562 3,0 15 1,411 + + .9 1.3 3.6 0 .4 1-9 1-2 .6 .8 2.4 1.6 45 ,7 7 5 81,913 28 3,54 7 23 4,08 7 13,943 98,734 139,915 129,170 161,383 65,486 40,264 4 8 ,210 87 ,5 6 7 29 9,36 7 23 4,67 2 14,051 96,637 139,921 135,371 159,426 73,915 38 ,545 + 5.1 6.5 5.3 .2 .8 2.2 0 — 4.6 19.97 24.62 28 .42 26.36 19.75 18.17 23.63 32.19 28.78 22 .25 28.08 21 .23 25 .9 8 31 .10 26.43 19.82 18.12 2 3 .9 3 33 .53 28 .66 2 4 .52 2 7 .32 + + + 5 .9 5.2 8.6 .3 .4 .3 1.3 4 .0 .4 9.3 2.8 199.328 - 4.6 7,790 - 3.2 23,993 - 32.4 January 15, 1924 + + - + + + + - - + 1.2 - 11.4 + 4.5 + - + .7 6 T he B u s i n e s s R M arch e v i e w creases affecting 1,925 workers. Hence, it is apparent that the decrease o f 4.2 per cent in average weekly earn ings is very largely due to curtailment in working hours rather than to any change in rates o f pay. In view of the decline o f 2.6 per cent in employment and o f 4.2 per cent in average earnings, it appears that plant opera tions in January were more than 6 per cent lower than in December. FINANCIAL CONDITIONS The weekly fluctuations since the beginning of Sep tember in the loans and investments of reporting mem ber banks in Philadelphia, Camden, Scranton and Wilmington are illustrated in the accompanying chart. Commercial loans, following a decline from 361 mil lions on October 3 to 336 millions on January 2, have since risen and on February 13 stood at 348 millions. A year ago they totaled 334 millions. Secured loans have not pursued so regular a cou rse; the latest figure, 280 millions, compares with 285 a month ago and 257 on February 14, 1923. Investments declined slightly in the past month, and deposits increased. LOANS AND IN V E S T M E N T S REPORTING MEM BER BANKS - THIRD FEDERAL RESERVE D ISTR IC T C om roerc ia l lo a n s / 1 — In v e s tm e n ts S e cu re d 1 Seasonal tendencies in note circulation are m uch the same from year to year. Note circulation this year is falling behind that of a year ago. Source— Federal Reserve Bank of Philadelphia during the greater part o f January and in February. Prices of railroad and industrial stocks are much the same as they were a month ago. Tendencies in the bond market were diverse. Securities rail bonds declining in prices, and industrial, public utility, and Liberty bonds gaining. The stock market continued active, and sales ran close to a million shares per day. Sales on February 15— 1,848,300 shares— were larger than on any day in the past three months. Average prices of groups o f securities follow : lo a n s AVERAGE PRICES OF SECURITIES ______ 1923 — — -------- ------------- 1------------ 1924 Downward tendency in com mercial loans from October 3 to Jan uary 2 has been reversed in past m on th . Source— Federal Reserve Bank of Philadelphia The statement o f the Federal Reserve Bank of Phila delphia as of February 20 shows a slight increase in bills discounted as compared with those o f a month ago, but a falling off in purchased paper and in United States securities from 56 to 48 millions. Deposits and the circulation of Federal reserve notes changed little, but cash reserves increased from 242 to 250 millions. The reserve ratio rose from 76.4 to 79.1 per cent. The trend o f circulation since the beginning o f October is pictured in the chart for 1922-1923 and 1923-1924. Close correspondence in the tendencies is to be observed, but it is worthy o f note that circula tion in the earlier period exceeded that o f the latter Average prices of— 20 industrial shares.................... 20 railroad shares....................... 10 first grade rail bonds............. 10 second grade rail bonds......... 10 public utility bonds.............. 10 industrial bonds.................... 4 Liberty bonds....................... February 20, 1924 January 19, 1924 December 20, 1923 $96.58 80.63 85.56 83.64 86.51 93.76 99.48 $96.60 80.79 87.06 84.02 86.44 94.34 99.40 $94.00 79.80 86.20 82.30 84.86 93.08 98.73 . A n increase in savings deposits from $480,131,000 on January 1 to $483,826,000 on February 1 was re ported by 79 banks in the Third Savings deposits District. Interest credited during the month amounted to $506,000. leaving a net excess of deposits over withdrawals of more than three million dollars. On February 1 deposits were 9.5 per cent larger than those of a year ago, and this increase was participated in by all the cities for which separate figures are listed. Comparative per centages of change follow : T ■ 924 F hird ederal R eserve D istri ct TRANSACTIONS IN BANKERS’ ACCEPTANCES SAVINGS DEPOSITS Third Federal Reserve District Number of banka 4 5 3 9 3 6 6 5 4 5 5 14 Totals..................................... 79 5 5 Sales in Third District Per cent of change February 1, as com pared with Month ago Altoona...................................... Chester...................................... Harrisburg................................. Johnstown.................................. Lancaster................................... Philadelphia............................... Reading...................................... Scranton .................................... Trenton...................................... Wilkes-Barre.............................. Williamsport.............................. Wilmington................................ \ ork........................................... Others........................................ Year ago + 2.3 . + -7 + + + + + + + + + + + + + + 16.8 10.2 17.1 11.3 24.4 7.0 14.4 20.1 7.6 21.2 2.8 9.0 9.9 12.6 + -8 + 9.5 4 - 4.1 .4 + 1.0 + 1.2 + 3.4 + -9 + -3 + 1.7 - 1.2 + -2 + -3 + -6 Sales o f commercial paper in this district during February have been smaller than they were in Jan uary, especially those to city Commercial paper banks. In some o f the other districts, however, notably those o f Chicago and Atlanta, a good volume of sales is reported. Borrowers are taking advantage of the present favorable rates to cover their requirements, and paper is in fair supply. Rates are the same as they were a month ago, the best names being held at 4 D per cent and others at 4J4 and 5 per cent. It is increasingly difficult, however, to secure notes at the higher figure. During January the sales by five reporting firms in the Third Federal Reserve District totaled $11,157,000, the largest amount recorded since the beginning of these reports in May, 1922. Although only five dealers reported instead of six as formerly, one having ceased the selling o f paper, we believe that the figures are rightly comparable, because others o f our reporting firms are now selling the names formerly listed by the firm withdrawn. Sales to Philadelphia banks amounted to $5,274,500, and outside sales to $5,882,500. The total amount sold at 4J4 per cent was larger than that at any other rate, but sales at \l/ 2 per cent U'ere in considerable volume, while those at 5 per cent were in much smaller proportion than they have been in recent months.v A few sales are still reported at 5 /. and 5p2 per cent. A large falling off in sales o f bankers’ acceptances within the Third Federal Reserve District for the ~ 9 period from Tanuarv 10 to FebBankers ruary 13 is reported by five accep ances dealers. Transactions by these dealers are given in the following table: 7 Weekly average for period 1924— Jan. 10 to Feb. 13........... Dec. 13* to Jan. 9 ........... 1923— Nov. 15 to Dec. 12......... Oct. 11 to Nov. 14.......... Jan. 15 to Feb. 11........... Purchases in Third District To Federal Reserve Bank To others $1,408,000 2,406,000 $329,000 352,000 $791,000 353,000 2,215,000 3,071.000 2,815,000 1.045.000 286,000 135,000 867,000 1,210,000 299,000 *0923 Offering rates continue to be much the same as they were last month, that is, 4 per cent for 30-day bills, and from 4 to 4 per cent for 60 and 90 day bills. Dealers in general describe both demand and supply as fair. Figures on acceptances created by twelve banks during the month ending on the following dates w e re : Februarv 10, 1924— $3,338,000; lanuary 10, 1924— $4,281,000; February 10, 1923— $3,764,000. The total o f acceptances outstanding on February 10, 1924, was $9,849,000. Chief among the developments in the foreign ex change market during the past month has been another fall in the value o f the French Foreign exchange franc, which, because o f the po litical situation and alleged specu lation, declined on February 19 to a new low record o f $.0410. Quotations on sterling are substantially higher than they were at this time last month, though they too have declined somewhat since the early part o f the month. On February 21 sterling wras quoted at $4.3166 for noon cables. A s is usually the case, Belgian francs followed the downward course o f the French franc, and on February 18 were listed at a new low o f $.0362. For the second time on record, quotations for Italian lire, which on February 18 stood at $.0431, were higher than were those for French francs. Currencies of the former neutral continental countries have been relatively stable. Dutch guilders advanced somewhat during the early part o f the month, but are now' at practically the same point as they were at this time last m onth; and Spanish pesetas, at $.1271 on February 18, have shown but little fluctuation in the past four weeks. Swiss fiancs at $.1735 are several points below their position o f a fortnight ago, but are stronger than they wrere at this time in January. Owing to efforts by Sweden to keep its currency as near to dollar parity as possible, Swedish kroner are now fairly stable at $.2605, though this figure represents a decline o f several points from that o f last week. Norwegian kroner also declined considerably, and at $.1314 on the 16th o f this month, were lower than they have been for many months. Far Eastern currencies, with the exception o f Japa nese yen, are stronger than they were a month ago. 8 T he B u s i n e s s FOREIGN EXCHANGE RATES Noon cables Par value Feb. 20, 1924 Jan. 20, 1924 Feb. 20, 1923 London................ $4.8665 $4.2956 $4.7154 $4.2094 .0440 Paris.................... .0609 .1930 .0414 .0402 .1930 .0536 Antwerp.............. .0347 Milan.................. .1930 .0433 .0483 .0429 .000014 Vienna................. .2026 .000014 .000014 .4020 .3698 Amsterdam.......... .3723 .3968 .1622 Copenhagen......... .2680 .1576 .1931 Stockholm........... .2680 .2610 .2596 .2665 .1930 .1270 .1265 Madrid................ .1568 .1930 .1730 .1726 Berne................... .1891 .7712 Buenos Aires....... .9648 .7366 .8423 Shanghai.............. .7050 .7023 .7745 .7135 Quotations for the latter declined on February 18 to $.4537, as compared with $.4609 on the corresponding date in January. This depreciation is attributed to the flotation of the recent Japanese loan and to fu r ther purchases made abroad. Quotations on both Shanghai and H ongkong tael have been steady so far this month and are substantially higher Jhan they were at this time last month. Argentine and Brazilian cur rencies have been steadily advancing, and quotations R M arch e v i e w for these too are higher than they have been for sev eral months. Chilean pesos, however, are weak and have consistently declined since early in January. They were quoted on February 18 at $.0985. Canadian dollars have declined and are now listed at $.969217, a low point for the month. RETAIL TRADE Many retail dealers, especially those outside of Phila delphia, have been awaiting the arrival of cold and stormy weather to help create a demand for winter staples, but this did not come until about February 10. The time elapsed since then has been too short for us to receive many reports on the changed conditions. Preliminary statements, however, indicate that sales during February will equal those of February, 1923. Special sales have in most cases been successful, and in furniture, floor coverings, and house furnishings have exceeded those of a year ago. Shoes and women’s apparel show a gain, but furs have been dull, and men’s overcoats have sold in less than normal quantity. During January, conditions in the individual stores varied considerably, even in the same c ity ; but total RETAIL TRADE Third Federal Reserve District Comparison of stocks Rate of turnover* Percentage Comparison of orders of net sales outstanding Jan. 1924 Jan. 31, 1924 Jan. 31. 1924 Jan. 31, 1924 Jan. 1 to Jan. 1 to with to total with with Jan. 31, Jan. 31, purchases in Jan. 1923 Jan. 31, 1923 Dec. 31, 1923 1924 1923 1923 All reporting firms............................................................................ Firms in—Philadelphia.................................................................... —Allentown, Bethlehem and Easton................................ —Altoona............................................................................ —Chester......................... .............. —Harrisburg..................................................................... —Joh nstown..................................................................... —Lancaster......................... —Reading................................... ........................................ —Scranton........................................................................ —Trenton.........................................: ............................... —Wilkes-Barre................................................................. —Williamsport................................................................ —Wilmington..................................................................... —York.............................................................................. —All other cities................................................................. + 1.3“ -1 2 .6 “ + 11.0“ + 16.4“ + 17.6“ + 6.9“ + 5.9“ + 3.0“ + 13.7“ + 8.7“ + 5.8“ All department stores....................................................................... Department stores in Philadelphia.................................................. Department stores outside Philadelphia.......................................... 4.1% 3.5“ 2.5" 6.6“ 3.3 3.7 2.1 2.4 3.3 3.7 2.3 2.7 + 12.0“ - 1.3“ + 2.0“ + 6.7“ +22.6 " - 0.7“ + 8.3“ + 0.0“ -1 0 .4 “ + 1.3“ + 8.6“ - 4.8“ -1 4 .0 “ - 5.9“ - 3.1“ - 8.9“ - 3.4“ - 2.0“ - 2.9“ - 7.0“ - 3.6“ - 7.6“ 2.3 2.7 2.8 3.1 2.1 1.7 2.6 1.8 2.6 3.1 2.5 2.0 2.9 2.7 3.2 2.3 1.5 2.4 1.9 + 4.9“ + 4.5“ + 5.8“ + 6.5“ + 6.6“ + 6.4“ - 2.3“ 1.5“ 4.2“ 3.2 3.5 2.5 3.2 3.5 2.5 8.5“ 9.1“ 7.4“ All apparel stores............................................................................. Men’s apparel stores........................................................................ —in Philadelphia..................................................................... —outside Philadelphia.............................................................. Women’s apparel stores................................................................... —in Philadelphia...................................................................... —outside Philadelphia.............................................................. + + + + + + + 15.3 “ 6.8“ 3.1 “ 11.7“ 17.5“ 18.8“ 11.6“ + 19.4“ +24.8 “ + 12.4 “ + 7.5“ + 7.3“ + 6.8“ + 8.9“ -1 7 .9 “ -1 5 .9 “ -18.3 “ -14.1 “ -1 2 .9 “ -1 2 .2 “ -15.1 “ 4.5 2.5 2.9 2.1 6.7 7.6 3.8 4.7 2.9 3.2 2.3 6.2 6.9 4.0 4.2“ 10.7“ Credit houses................................................................................... + 3.4“ + 12.1 “ - 1.8 2.0 2.9“ * Times per year based on cumulative period. + + + - 6.4% 6.3“ 11.7“ 1.6“ + + + + 7.9% 7.3“ 6.8“ 17.0“ - 0.6“ 2.8 2.2 2.8 . 7-8% “ 8.1 2.5“ 10.4 “ 4.6“ 6.2“ 5.0 “ 5.0 “ 4.8 " T 1924 hird F e deral R sales in most o f the centers in the eastern part o f the district were higher than in January, 1923, and in the district as a whole there was an increase o f 6.4 per cent. Altoona and Johnstown, however, again report a slight loss. Stocks continue to be larger than they were a year ago, but except in a few cases are not heavy. From the accompanying chart it will be seen that the relation o f the sales made each month to the annual sales is fairly constant. The variations in March and in April are caused by the change in the date o f the Easter holidays. RETAIL TR A D E T H IR D FEDERAL SALES RESERVE DISTRICT 1921 1922 1923 14 eserve D i s tri ct 9 INDEX NUMBERS OF MONTHLY SALESWHOLESALE TRADE Average of 1923 = 100 Boots and shoes Drugs Dry goods Gro ceries Hard ware 95 124 116 98 73 87 98 92 86 87 82 89 86 93 86 84 87 115 100 87 87 76 103 111 121 99 73 88 85 101 87 87 91 90 98 93 96 93 93 76 72 94 105 90 91 75 77 81 90 79 80 50 57 113 113 89 79 54 80 118 126 116 99 87 89 101 87 92 87 87 91 91 96 92 91 86 81 93 69 70 76 62 90 111 118 113 86 75 74 84 72 85 92 83 90 89 99 102 93 61 61 89 95 98 91 79 89 94 103 99 94 75 78 150 104 110 92 73 108 113 117 92 86 106 98. 106 101 103 98 95 100 95 107 95 96 106 98 117 89 91 88 75 94 128 127 110 81 78 107 113 115 110 96 101 100 117 91 78 87 86 93 93 98 105 103 104 104 118 112 96 93 93 83 1921 January................ February.............. March.................. April..................... May...................... June...................... July...................... August.................. September............. October................ November............. December............. 1922 January................ February.............. March.................. April..................... May...................... June...................... July...................... August.................. September............ October................ November............. December............. 12 1923 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec This chart shows, for each of the past three years, the percentage of the annual sales occurring in each m on th . For example, sales in December, 1923, am ounted to 13 per cent of the total for that year, whereas those In December, 1922, were 14 per cent of the 1922 total. Source—Federal Reserve Bank of Philadelphia WHOLESALE TRADE W holesale trade during February has, as a whole, improved but little over that o f January, but this is not an unusual condition, especially in those lines which are affected by a late Easter. During the month few price changes o f note have occurred. Drugs and fine chemicals have risen slightly and are considerably higher than they were a year ago. On the other hand, the down ward tendency o f raw silk and artificial silk has been reflected in lower quotations for the finished products made from them. The accompanying table o f indices gives the monthly changes for the past three years in the several wholesale lines for which statistics have been collected by the Phila delphia Federal Reserve Bank. During January, sales in all lines except drugs and dry goods were heavier than in January, 1923. In drugs, dry goods, and paper they were larger than in December, but in the other lines they decreased. The great difference in the figures for jewelry is quite usual, as December is by far the best month and Janu ary one o f the poorest in that trade. January................ February............... March.................. April..................... May...................... June...................... July...................... August.................. September............. October................ November............. December............. 91 1924 January................ 78 104 The volume o f orders placed with wholesale dealers in shoes for shipment during February, March, and early April is good, and some reShoes port it to be larger than it was at this time a year ago. Since the tenth o f February, the colder and more stormy weather has resulted in an increased sale o f rubber goods by retailers, but except in rare cases they have not been forced to go to the wholesalers to replenish stocks. In fact, it is now so late in the season that re-orders for rubber goods are certain to be unim portant. W holesale houses report that the stocks in retailers' hands are either light or moderate. Stocks held by wholesalers, as shown in the accompanying table, are larger than they were last year. The demand has covered a wide range, and novelty shoes for women, 10 T he B u s i n e s s R M ar ch e v i e w WHOLESALE TRADE Third Federal Reserve District Percentage of increase or decrease in Net sales Stocks Jan. Accounts outstanding Jan. 1924 compared with 1924 compared with Jan. 1924 compared with Boots and Shoes............................... Drugs.............................................. Dry Goods...................................... Groceries.......................................... Hardware........................................ Jewelry............................................ Paper............................................... Dec. 1923 Jan. 1923 Dec. 1923 Jan. 1923 Dec. 1923 Jan. 1923 Jan. 1924 Dec. 1923 Jan. 1923 - 8.8% + 8.4“ + 19.5“ - 2.7“ - 8.6“ -7 1 .0 “ + 18.6“ + + + + + +25.9% - - 8.7% + 7.1 “ - 1.8“ - 2.4“ - 1.9“ -4 5 .0 “ + 7.7“ + + + + + + - 285.0% 135.0 “ 236.5 “ 112.0“ 179.1 “ 416.6“ 149.9 “ 2S0.6% 147.0“ 288.0 “ 115.0“ 167.7 “ 219.6“ 165.0 “ 294.3% 124.5“ 210.7 “ 114.2“ 181.4“ 386.0 “ 152.5“ 4.6% 2.7“ 4.9“ 5.0“ 12.3“ 3.1 “ 1.0“ + + + + - 11.2“ .3 “ 1.8“ 6.5“ 1.6“ misses, and children, and also more staple lines of oxford s for men, women, and children, have all been bought with considerable freedom. Collections have decreased somewhat during the month, and more than the usual number o f slow accounts are reported. The ratio of accounts outstanding to sales stood at 285.0 on January 31, at 280.6 on December 31, and at 294.3 on January 31, 1923. Sales during January were 8.8 per cent smaller, than in December, but gained 4.6 per cent over those o f January, 1923. Business in dry goods during February has been de cidedly spotty; some firms state that it shows improve ment, but almost as many say Dry goods that it is either unchanged or poorer as compared with that o f a month ago. In nearly all lines, the merchandise sold is for delivery within 60 days, and the majority o f it is for shipment within 30 days. The best call is for white goods, ginghams, wash goods, linens, sum mer underwear, work suits, and popular priced hosiery. Prices are generally unchanged, but a slight decrease is noted in the quotations for silk piece-goods and hosiery, and a still larger decline in articles made either wholly or in part o f artificial silk. During January, sales were 19.5 per cent greater than in December, but were 4.9 per cent smaller than in January, 1923. Collections were better in January than they were in December, but not as good as in January, 1923. This may be seen from the accom panying ratios of accounts outstanding, which were 236.5 on January 31, 288 on December 31, and 210.7 on January 31, 1923. Stocks are in most cases heavy and at the end o f January were larger by 11.2 per cent than on December 31, and by 26.0 per cent than on January 31, 1923. According to our new index of wholesale hardware sales, the figure for January, which was 83, repre sented a loss o f 8 points from the Hardware number for December, but a gain of 2 points over that for Jan uary, 1923. In the table on page 9 are given the index Ratio of accounts outstanding to sales 0.3% +26.0 “ + 3.3“ + 6.0“ + 2.9“ -1 0 .9 “ numbers for 3.0% 6.9“ 6.7 “ 3.5“ 11.3“ 14.1 “ 0.7“ each month o f the past three years. The total sales o f 31 hardware firms reporting in this district were 8.6 per cent smaller in January than in December, but 12.3 per cent greater than in Jan uary, 1923. The demand for hardware is from fair to good but is perhaps slightly weaker than it was last month. Mine, mill, and contractor supplies have been selling well, and plumbing, electrical, and light hardware fixtures have been in fairly good request. Prices on many products are higher than they were at this time last year, though in only a few instances have they ad vanced over those o f the preceding month. Stocks are either moderate or heavy and are larger than they wrere a month ago. The ratio o f accounts outstanding to sales was 179.1 in January, as compared with 167.7 in December and 181.4 in January o f last year. Wholesalers report that the demand for drugs is fair and slightly greater than it was in January. Phar maceuticals, chemicals, spraying Drugs materials, and seasonable patent medicines are at present the best sellers. The botanical drug market is still quiet; prices have continued to soften and are considerably lower than they were a year ago. Fine chemicals and drugs are in good demand, and quotations are increasing and are considerably higher than they were at this time last year. The price indexes o f 40 botanical drugs and 35 drugs and fine chemicals, as compiled by the “ Oil, Paint and Drug Reporter,” are given in the table on page 11. Reports from wholesale druggists show that Janu ary sales were 8.4 per cent larger than those for D e cember, but 2.7 per cent smaller than those for January, 1923. Jobbers’ stocks vary from moderate to heavy and are about the same as they were last month. Collections range from fair to good. The ratio o f accounts outstanding to sales in January was 135.0, T 1924 Price index of 40 botanical drugs January 28....... February 4....... Februaryjll.. . . February_18... . F hird e deral R Price index of 35 drugs and fine chemicals 1024 1923 1924 1923 109.6 108.4 108.3 108.3 125.1 127.6 143.7 150.1 197.6 197.6 197.6 201.3 171.6 171.6 171.6 171.5 as compared with 147.0 in December and with 124.5 in January, 1923. The demand for groceries is fair and about the same as it was last month, but greater than in February, 1923. Canned goods, bulk syrups Groceries and molasses, dried fruits and vegetables, and staple groceries are at present the most active sellers. Prices are firm, and during the month there have been few changes. Flour, sugar, coffee, syrup, beans and salted fish have advanced, but canned milks, cheese, prunes, raisins, and lard have declined. Stocks held by whole salers vary from moderate to heavy, but are lighter than they were in January. Our reports from wholesale grocers show' that sales in January were 2.7 per cent smaller than those in December, but 5.0 per cent greater than those of Jan uary, 1923. The ratio o f accounts outstanding de creased from 115.0 in December to 112.0 in January. Sales o f jewelry at wholesale during February although not large, will probably exceed those of Feb ruary, 1923, in spite o f the fact Jewelry that in some cases buying has been delayed on account o f the late date on w’hich the spring holidays fall this year. In January, as is showm in the table on page 10, sales eserve D i s tri ct i i were 3.1 per cent larger than in January, 1923, but of course were much smaller than in December, the decrease being 71.0 per cent. A number o f dealers were somewhat surprised at the good showing in Jan uary, as they felt that the month would be unusually dull because of the exceedingly large business done in December. Diamonds were inactive during a large portion o f January, because of a flurry in December business which was accompanied by a sharp increase in prices. The ratio of accounts outstanding stood at 416.6 on January 31, at 219.6 on December 31, and at 386 on January 31, 1923, indicating that as com pared with a year ago collections are slower. The accompanying chart pictures the increase in in dicated jewrelry sales in each month o f 1923, except January, as compared with the corresponding month in 1922. The chart is compiled by estimating that the excise tax paid represents 5 per cent of the total sales. Distributors report that the demand for paper is fairly strong and about the same as it was a month ago. Fine papers, particularly bond, are sellPaper ing well, and the call for book papers is tolerably good. Tissues and coarse papers are moving in fair volume, but heavy importations of foreign kraft paper still cause consid erable price weakness in some grades o f kraft. New'sprint and cover papers are in good demand. Prices, except on certain kraft papers, are firm and prac tically the same as they wrere last month. Stocks held by wholesalers are moderate in size and practically the same as they were in December but slightly less than in January, 1923. Collections are fair and are more prompt than they wrere a year ago. Our reports from distributors show that wholesale paper sales in January were 18.6 per cent larger than in December and 1.0 per cent greater than in January, 1923. The ratio o f accounts outstanding to sales in January was 149.9, as compared with 165.0 in Decem ber and 152.5 in January, 1923. BUILDING These sales for the United States are estimated on the basis of the Federal excise tax paid. Source— Jewelers' Circular During January, 1,754 building permits wrere issued by thirteen cities in the Third Federal Reserve District, representing a proposed expenditure o f $11,944,406. This is an increase o f 58 permits and o f $3,182,081 over the figures for the preceding month, and o f 281 permits and o f $2,196,387 over the totals for January o f last year. The number o f permits issued in most o f the reporting cities, however, is smaller than it was in December, though, with the exception o f Trenton, the cost o f operations in each o f the cities is greater. Most o f the gain in the District was made in Philadelphia, which reported that in January 884 permits w^ere granted, representing a total cost o f $8,642,525, as com pared with 814 permits at a total cost o f $5,298,995 dur ing the preceding month. T 12 B he usiness R M ar c h eview BUILDING PERMITS Third Federal Reserve District January, 1924 Permits Operations January, 1923 Estimated cost Allentown...................................... Altoona.......................................... Atlantic City*................................ Camden......................................... Harrisburg........................ ............ Lancaster...................................... Philadelphia.................................. Reading......................................... Scranton*....................................... T renton......................................... Wilkes-Barre*................................ Williamsport.................................. Wilmington.................................... York.............................................. 42 66 136 55 40 36 884 118 74 100 58 *** 73 72 82 66 136 92 55 40 1,249 133 74 118 58 *** 73 72 $419,500 47,968 643,908 531,648 197,600 272,445 8,642.525 241,025 252,215 189,239 208,724 *** 181,079 116,530 Total for January...................... 1,754 2,248 11,944,406 Permits Operations 19 61 173 51 37 28 747 128 40 49 42 13** 66 32 Estimated cost 35 69 173 52 49 28 967 131 40 52 42 13** 80 32 $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 1,750 1,473 9,748,039 * Operations not reported. ** For comparative purposes, not included in total. *** No figures available for the month of January, 1924. NEW BUILDINGS AND ALTERATIONS 1924 1923 Alterations New buildings Allentown....... Altoona........... Camden........... Harrisburg....... Lancaster........ Philadelphia. . . Reading........... Trenton........... Williamsport.. . Wilmington... . York................ Permits Oper ations Estimated cost Permits Oper ations 26 13 22 30 19 404 27 77 *** 44 40 66 13 59 40 23 761 42 95 *** 44 40 $397,550 29,907 493,150 175,550 248.945 8.227,050 117,700 160,100 *** 150,204 81,330 16 53 33 10 17 480 91 23 *** 29 32 16 53 33 15 17 488 91 23 *** 29 32 New buildings Estimated cost $21,950 18,061 38,498 22,050 23,500 415,475 123,325 29,139 *** , 30,875 35,200 Alterations Permits Oper ations Estimated cost Permits Oper ations Estimated cost 9 14 28 29 10 284 22 30 7 46 12 25 22 29 40 10 498 25 32 7 60 12 $98,250 107,700 531,450 122,525 206,650 6,083,885 223,825 72,068 18,145 135,925 28,745 10 47 23 8 18 463 106 19 6 20 20 10 47 23 9 18 469 106 20 6 20 20 $9,475 33,600 20,348 29,400 31,975 420,215 122,100 12,115 960 13,361 10,975 *** No figures available for the month of January, 1924. The call for bricks is fair and in a few instances good, and though opinion is about evenly divided as to whether or not it is better than it was at Bricks this time last month, most manu facturers say it is not as strong as it was a year ago. Delivery dates on orders now on the books range from within 60 days to beyond 90 days, but the majority fall before the middle o f April. Prices in general are firm, though in one instance it is reported that prices on common bricks are weakening as a result o f keen competition among manufacturers. Quotations on fire and the better grades o f building bricks are the same as they were a month ago. V ery little resistance is being offered to present prices, and consumers are placing orders in good volume. Manu facturers state that unfilled orders will insure a high rate o f operation for from one week to six months. Though several plants are operating at full capacity, a few have closed down for repairs; the general average rate o f operations is slightly higher than it was during January. Stocks o f finished goods are in most cases moderate and are increasing. Supplies o f raw materials are mod erate, and these are, in the main, stationary. The supply o f both skilled and unskilled labor is sufficient and in several instances plentiful. There has been no change in wages during the month. Collections are fair and the same as they were at this time last m onth; but they are slower than they were in February, 1923. 1924 T hird F e deral R The call for lumber- is tolerably good, and since in some cases it is better than it was at this time last month, and in others not so good, Lumber no distinct change in the general demand can be observed. Very few o f the orders now taken are for delivery beyond 90 days, the greater part being for shipment either imme diately or within 60 days. W ith a few exceptions prices are firm and the same as they were at this time last month. Quotations on northern white pine, hemlock, and cypress are steady, as are prices for hardwood flooring, laths, and shingles. Some cutting o f prices on yellow pine was reported, but it was attributed to competition and not to any weak ness in the market. Manufacturers o f boxes and crates say that there is some resistance to prices but that in general sales are not curtailed on this account. Stocks o f finished lumber are moderate and nearly stationary, but supplies o f raw materials, though also moderate, are increasing. Manufacturers are running their mills at an average rate o f 81 per cent o f capacity, which is about the same as that o f January. T o fill orders already taken, the mills will be required to main tain this rate for from one to six months. Some scarcity is reported in the supply o f skilled labor, but unskilled tabor is plentiful. On January 15 there were 2.292 workers on the pay-rolls o f 7 lumber and planing mills in this district, an increase o f .9 per cent over those on December 15. The average wage during this period declined 5.9 per cent. Collections are fairly good and practically the same as they were at this time both last month and last year. The demand for paint is little more than fair, but manufacturers are not complaining as sales in January and during the first part o f FebPaints ruary were greater than they were during December and at this time last year. Considerable optimism exists among dealers in this district, who are o f opinion that the unusual rate at which construction work is being started points to a good demand for paints and varnishes in the spring. During the first week o f February an additional ad vance in the price o f pig lead resulted in higher quota tions for lead pigments. But some dealers, on account o f sharp competition, have been forced to cut prices on already mixed house paints and on some grades o f varnish stains. Others report that their prices have not changed during the past month and that quotations are firm. Spot prices for linseed oil are steady at 92 cents per gallon for tank car lots. Stocks o f finished goods are moderate and in some cases light, but supplies o f rawTmaterial are fairly heavy. Stocks o f both are held at very nearly stationary levels, though the former are tending slightly to increase. Manufacturers reporting in this district are operating at an average rate o f something over 77 per cent o f eserve D i s tri ct 13 capacity, which is higher than the figure for this time last month. Unfilled orders will insure this rate o f production for from one week to two months. O f those now being filled the majority are for shipment either immediately or within 60 days, though as usual some are for delivery up to and beyond 90 days. The supply o f both skilled and unskilled labor is sufficient and in several instances plentiful. In one case there was an advance o f ten per cent in the wages o f skilled workmen. Collections are only fair, and though they are about the same as they were at this time last year, are not as satisfactory as they were during January. Manufacturers report that the call for plumbing sup plies is tolerably good, but dealers state it is little better than fair. Both are agreed that Plumbing supplies the demand is stronger than it was a month ago and fully as good as at this time last year, if not better. A s is true in most o f the other building trades at this time, both producers and dealers see indications o f a good spring business in plumbing supplies, as a result o f an unusually extensive building program in this district. Unfilled orders are o f about the same size as those o f a month ago, and the greater part are for delivery either at once or within 60 days. Both manufacturers and dealers, however, have many orders on which shipments are specified for from 60 to 90 days and beyond. Prices are firm and in most cases the same as those o f January. Quotations on several iron, brass, and lead products are slowly advancing, and considerable resis tance to present prices is being offered. Stocks o f finished goods and raw materials are in general moderate, though a few manufacturers say that supplies o f the former are heavy. It is difficult to as certain definitely whether or not manufacturers’ stocks are increasing or diminishing, as reports vary on this subject. H owever, stocks on the shelves o f dealers are increasing, which is the result o f anticipating consumers’ requirements rather than o f unsatisfactory sales. Manufacturers are operating at an average rate o f approximately 87 per cent o f capacity, and it is variously estimated that unfilled orders will insure this rate o f production for from tvco weeks to three months. There is no shortage o f either skilled or unskilled labor, and in some instances, the supply is plentiful. Collections are from fair to good, and are about the same as they were last month, but more prompt than they were in February, 1923. The demand for slate is from fair to good, and though not as strong as it was a month ago, it is better than during February, 1923. Most o f Slate Aie unfilled orders, for roofing, blackboard, and electrical slate are for delivery within two months, and while there are in stances in which shipments are specified for up to and beyond three months, weather conditions have a great T he B u s i n e s s deal to do with deliveries o f roofing slate, and shipping dates are often changed. The size o f the individual order is somewhat smaller than it was in January, which is entirely seasonal. Prices o f the better grades are firm, and very little change has occurred during the month. Quotations for a few specialty products are slightly higher, but these gains have been largely offset by reductions in prices o f inferior grades o f slate. Stocks o f finished goods are mostly from moderate to light, but a few producers say their supplies are heavy. W hile several state that stocks are increasing, an equal number report them to be decreasing. Supplies o f raw materials range from light to heavy, depending upon facilities for working quarries and mills during the winter months. Notwithstanding the seasonal nature o f the slate in dustry, firms reporting to us are operating at an average rate o f nearly 80 per cent o f capacity. The supply of skilled workers is scarce in several instances, but un skilled labor is plentiful. Collections are either fair or good and are about as they were both at this time last month and during Feb ruary, 1923. REAL ESTATE Builders report that the call for workmen’s houses costing $6,000 or less is still very strong and that the supply o f houses ranging from $6,000 to $10,000 con tinues to be inadequate. But the demand for residences costing $10,000 and more has been satisfied, and except in the suburbs, is almost negligible. In some sections apartment houses are still in request, but the supply of office buildings seems to be adequate for all present needs. Industrial and public structures, particularly school buildings, are still in good demand, and several new contracts for this type o f work have recently been let. Real estate dealers report that a ready market exists for houses selling at from $6,000 to $10,000 and that the demand is heaviest for those selling between $6,000 and $7,000. A fair market still exists for those ranging from $10,000 to $15,000, but sales o f higher-priced houses are slow and difficult to make. In the cities, few houses are vacant and rents remain firm. Indi vidual dwellings renting at from $40 to $50 are in big demand, as are apartments that rent at from $50 to $75. In fact, the supply o f such buildings is still inadequate, but the call for homes which rent at higher prices has been fully met. The prices o f building sites have not changed materially during the past quarter, and dealers report that commercial sites and locations for offices are not difficult to obtain. Mortgage money is scarce, and builders have found it very difficult to finance new dwelling operations. The majority o f building and loan associations have made loans up to their legal capacity, and the banks are refus R e v i e w M ar ch ing to extend them further loans. Many insurance com panies, however, are investing in sound mortgages, and the extreme scarcity o f funds which existed three months ago has been somewhat relieved. Trust com panies are lending funds on first mortgages up to 60 per cent o f the appraised value o f completed buildings and up to 50 per cent o f the cost o f new construction. The majority o f trust companies are lending money only on completed structures, and many report that they have used all their available funds. In fact, the mort gage loans o f all trust companies are considerably larger than they were a year or six months ago. The rate o f interest charged by trust companies on mortgage loans is unchanged at 6 per cen t; and no commissions are charged, though a nominal fee is exacted to defray the expenses o f appraising and o f recording titles. Sec ond mortgage funds are extremely scarce and heavy commissions are charged by mortgage brokers for secur ing them. The rate o f commission varies from 5 to 10 per cent, the latter being the most frequent. F or first mortgage funds, brokers ask from 2 to 5 per cent, the prevailing rate on high-class mortgages being 2 per cent. On account o f this scarcity o f funds, some operative builders have been obliged temporarily to rent many o f the houses they have built only for sale, until mortgage funds become more plentiful. However, no difficulty in securing satisfactory rentals and tenants has been experienced. Building materials are at present in plentiful supply, and the prices o f most materials, except lumber, are slightly lower than they were a year ago. The supply o f labor is adequate, and builders report that on very short notice they are able to obtain more men than they need. IRON AND STEEL The past month has brought forth additional requests for many products in the iron and steel industry, and indications o f good business in the future are commented upon by many manufacturers in this district. The de mand for pig iron is fairly good, and some sub stantial sales have been recently made by foundry inter ests in Philadelphia. The call for soft steel bars is better than that for any other rolled product, and the demand for iron bars is also improving. _Automobile manufacturers are taking sizable quantities o f iron and steel castings and o f steel stampings. Makers o f machinery and tools are fairly busy, and though in some instances the demand for their products is characterized as good, in others, though the inquiries are numerous, actual sales are light. The call for scrap steel, plates, and structural shapes is slightly better than it was a month ago, and deliveries have been made to foundries and automobile supply houses. Some improvement is also seen in the demand for wire and wire rods and for both light and heavy hardware. Miscellaneous products such as axles, springs, bolts, nuts, and bearings are mov T 1924 hird F ederal R ing well, and substantial sales have been made to the usual class o f consumers. One manufacturer reports the closing o f a large contract for road-making equip ment and for other types o f heavy outside machinery. Generally speaking, prices are firm, though conces sions have by no means disappeared and a few quota tions are lower than they were during January. On the other hand, prices on several miscellaneous products have increased, offsetting the declines, so that the “ Iron A g e’s” composite price index o f finished steel remains constant at 2.789 cents per pound. A t the first o f the month quotations for Philadelphia 2 X pig iron declined from $24.26 to $23.63 per net ton, but the price rose to $24.13 on February 12, and has since remained steady. For the first time since June, production o f pig iron is again increasing. In January 3,018,890 tons were produced, as compared with 2,920,982 tons during De cember, an increase of 97,908 tons. Steel furnace com panies were responsible for the gain. On January 31 there were 226 blast furnaces in operation in the entire country, four less than at the end o f December. That the total number o f furnaces in blast has been declining since July o f last year is shown in the accompanying chart depicting the trend o f opera tions since 1918. eserve D i s t ri c t January 31 stood at 4,798,429 tons, an advance o f 353,090 tons from the total at the end o f December. W ith but one exception, manufacturers reporting to us are having no difficulty in securing an adequate sup ply o f both skilled and unskilled labor. A few wage changes have been made, and the tendency has been downward. On January 15 there were 14,449 em ployees on the pay-rolls o f 75 foundries and machine shops in this district, a decrease o f 337 from the number employed in the same plants on December 15. Average weekly wages fell from $28.33 to $27.50, a reduction of 2.9 per cent. Collections are from fair to good and much the same as they were at this time last month. COAL Demand for domestic sizes o f anthracite has slack ened during the past month, especially that for egg and pea. Steam sizes, which Anthracite have been moving slowly for sev eral months, are in somewhat better request, but no permanent strengthening in the market is apparent. Though prices are not particularly firm, no changes have been made by dealers. Some independent mines have reduced quotations on domestic sizes by from 50 to 75 cents, but Company quotations are the same as they were in the latter part o f January. It is reported that steam coal is moving under contract prices and that in the few instances in which spot sales have been made, quotations have been below the cost o f pro duction. On February 18 stove coal was quoted at $8.90 per net ton, Company price, which is the same as it was on January 2 8 ; and rice was listed at $2.50 per net ton, as it was a month ago. During the past few weeks production has not been as great- as it was in the corresponding weeks of last year, but it is still maintained at a high level. In the following table, output is given in tons for the past four weeks and for the same period in 1923. PRODUCTION OF ANTHRACITE* Week ending In July of last year the num ber of furnaces in blast was as large as in 1920, but in the following m onths the num ber declined sharply until December, when it again increased. Source—Iron Trade Review In this district at the end o f January there were 34 furnaces blown in and 31 blown out, a gain o f 3 over the number in operation on December 31. Corpora tion companies are operating at close to 90 per cent o f capacity, which rate is higher than it was a month ago. The average rate o f operations in this district is esti mated at between 75 and 80 per cent o f capacity. U n filled orders o f the United States Steel Corporation on January 19....................... January 26....................... February 2....................... February 9....................... 1924 1.884.000 1.782.000 1.893.000 1.906.000 1923 net tons 2,010,000 “ “ 2! 119,000 “ “ 2.056.000 “ “ 2.023.000 net tons “ “ “ “ “ “ * As estimated by the Geological Survey. Some operators believe that a curtailment o f produc tion will occur shortly on account o f a heavy surplus of steam size stocks. A t present, however, the mines are working at close to capacity, and there is the cus tomary shortage of miners and miners’ helpers in some sections o f this district. i T 6 he B usiness The recurrent cold waves that have swept the East and Central W est at various times during the past month have caused fluctuations Bituminous in the demand for bituminous, but generally speaking, sales in this district so far this month have shown no material increase over those in January. Operators state that most o f the tonnages now being shipped are under contracts made in the spring o f 1923 and that sales o f spot coal are almost at a minimum. Few railroads as yet have entered the market, though several are expected to do so within the next thirty days. Spot prices are from 60 cents to $1.00 less than contract prices, but in some instances consumers have demanded and received reductions in prices made under previous contracts. In Philadelphia on February 18 pool 10 coal was quoted at from $1.70 to $2.00, the same as it was this time last month. Production has been at record levels since the first o f the year, and the total output since January 1 is greatly in excess of the figure for the corresponding period o f last year. W eekly output is well above 11 million tons, as will be seen in the table below, which gives production in tons for each o f the past four weeks. For comparative purposes, figures for the cor responding four weeks o f last year are also given. PRODUCTION OF BITUMINOUS* Week ending January 19.................... January 26.................... February^.................... Februarv49.................... 1924 11,622,000 11,569,000 11,315,000 11,531,000 1923 net tons 10,925.000 net tons “ “ 10,985,000 “ “ “ “ 10,686,000 “ “ “ “ 10,725,000 “ “ R M ar c h eview Exports of bitum inous reached the highest point, forlth e last five years, during October, 1920, and the largest shipments of coke were made in April of 1923.; Source— Department of Commerce spectively, and these quotations are from 15 to 25 cents higher than they were a month ago. The output o f beehive coke has been fairly steady since the beginning o f the year, at between 250,000 and 300,000 tons, but total production up to the present time is less than it was for the same period last year. Figures showing the output in tons during the past four weeks and for the same four weeks of 1923 are given in the table below. PRODUCTION OF BEEHIVE COKE* Week ending 1924 1923 January 19....................... January 26....................... February 2....................... February 9....................... 251.000 net tons 263.000 “ “ 262.000 “ “ 287,000 “ “ 328.000 net tons 343.000 “ “ 348.000 “ “ 359.000 “ “ * As estimated by the Geological Survey. It was expected that part o f this large supply would be exported to England, where the striking railway men threatened to engender a strike among the coal miners. U pon the speedy settlement o f the difficulty, however, the hope of increased sales on that account was abandoned. Exports o f bituminous are declining, as will be seen in the chart below, which depicts the trend o f foreign shipments during the past 5 years. It will be noted that the movements o f coke are very similar to those o f bituminous. V ery little scarcity o f labor is reported, as the con tinued curtailment o f operations in many mines has made available an increased supply o f both miners and helpers. In consequence o f the improvement in the demand for iron and steel products the call for coke is stronger than it was at this time last Coke month, and prices have recently advanced. Furnace and foundry coke are quoted at $4.15 and $5.00 per net ton re- * As estimated by the Geological Survey COTTON Although the final ginning report o f the 1923-24 cot ton crop will not be issued until March 20, the size o f the crop is known with practical Raw cotton certainty, and as it is too early for trustworthy estimates on the planting o f the next crop, the main factor now influenc ing the market is the demand in this country and abroad for the comparatively small supply o f American cotton remaining. The following table shows how this amount compares with that o f the past two years, and also gives the world’s takings o f American cotton. It is undoubtedly true that the sale o f most cotton fabrics for spring has up to the present been curtailed i 924 T hird F e deral R SUPPLY AND TAKINGS OF AMERICAN COTTON* In bales Season of 1923-1924 Visible supply, American, at end of previous season (July 31)......................... 869,968 Crop in sight, American, on February 16 .................... 9,640,971 Season of 1922-1923 Season of 1921-1922 1,968,159 4,112,651 9,368,635 7,864,609 Total........................... 10,510,939 11,336,794 11,977,260 Visible supply, American, on February 16.................... 2,980,467 3,015,451 4,135,568 V orld’s takings of American to February 16................ 7,530,472 8,321,343 7,841,692 * Figures compiled by New York Cotton Exchange. both by the higher quotations and by the general apathy in all textile lines. Reduced sales have checked produc tion as compared with that o f a year ago, especially in the North. During January the domestic consumption o f cotton totaled 576,644 bales, as against 461,560 bales in December and 610,306 bales in January, 1923. Exports continue to show a gain over those o f the previous year and since August 1 have amounted to 3,870,156 bales, an increase o f nearly 500,000 bales for the present cotton year. The range in the daily quotations for spot cotton in New Y ork has been fairly wide during the month. On January 21 the spot price was 32.90 cents, but by Feb ruary 4 it had advanced to 34.85 cents. Since that time, however, it has declined sharply, and on February 20 was 29.90 cents. Dealers in the Philadelphia market find that demand for cotton yarns is dull, unsatisfactory conditions being largely a reflection o f apathetic Cotton yarns business in cotton fabrics. Buyers evidently lack confidence in the stability o f prices. Their customers have displayed opposition to quotations and for the most part are buvlng finished goods very conservatively. Consequently, manufacturers o f cotton goods have for the most part bought yarn only for current needs, and dealers find that about three-quarters o f the business on their books is for delivery within the next 60 days. Recent weak ness in raw cotton, which resulted in lower prices for yarn, has not been conducive to increased buying for the future. It is reported that knitting yarns for underwear and hosiery are selling but poorly to eastern producers, though some dealers have experienced a steady request from manufacturers in the W est and South. On the whole the call for weaving yarns has probably been better than that for knitting yarns. Although few cus tomers have bought yarns actively, some producers who are fairly busy have made larger purchases than others. Thus yarns for cotton dress goods and plush have sold better than yarns for tapestry, towrels, underwear, and eserve D i s tri ct i7 hosiery. It is interesting to note that, according to a few dealers, certain manufacturers o f cotton fabrics are experimenting with different yarns in an attempt to produce novelty goods. A s noted above, recent weakness in raw cotton, in conjunction with only moderate or poor demand for yarns and resistance to prices on the part o f buyers, has caused reductions in quotations on yarn. On Febru ary 20 prices for carded yarns were on the average about 7 per cent lower than those o f a month ago, and combed yarns were 6 per cent lower. In some instances a rather wide range o f quotations among different dealers is noticeable, and prices are described as very unsat isfactory to both spinners and dealers. Supplies in the hands o f the latter are moderate. Collections are fair. Business in cotton goods is “ spotty,” but on the whole, demand ranges from poor to fair. Buyers give little evidence o f abandoning their polCotton goods icy o f purchasing mainly for cur rent needs, and producers find that from 80 to 100 per cent o f the orders on their books are for delivery within the next 60 days. H ow ever, drapery and upholstery fabrics, plush, and cotton dress goods have been in active request. On the other hand, towels, tapestries, and hair cloth continue to move but slowly. Makers o f tapestry report that the volume o f business placed by wholesalers is smaller than that o f a year ago and that retailers are buying very con servatively, preferring to let producers carry the stocks. Towrel manufacturers find that cheaper grades o f towels to be used in sales by department stores have sold in small amounts for immediate delivery. The market for gray goods is rather quiet, and quotations are extremely sensitive to fluctuations in raw cotton. Notwithstanding continued resistance to prices on the part o f buyers, quotations on finished goods are gen erally unchanged from those o f last month. In some lines, however, keen competition for business is reported and prices have been reduced. Quotations on gray goods are lower than they were last month, owing to weakness in raw cotton and to selling by second hands. Operations in the cotton goods industry in this dis trict are still restricted, and many plants are running only one-half to two-thirds o f their equipment. A s a rule, demand for cotton fabrics has not kept pace with supply, and stocks of finished goods in the hands of manufacturers are reported to be moderately heavy. Supplies o f raw material are of medium size. Labor is either sufficient or plentiful, and though in most cases wages remain unchanged, a slight reduction has been made in many towel mills. Collections, which are fair, show little change since last month except for a tendency to slow up somewhat in the hair cloth and towel trades. 18 T iie B R u s i n e s s WOOL The call for raw wool in the Philadelphia market is less strong than it was during the preceding month, and dealers attribute this mainly to the Raw wool opening o f fall lines o f goods for men’s w'ear by the largest pro ducer at lower prices than the trade in general had an ticipated. N ot only were sales to mills reduced, but activity among raw wool dealers was also checked, and reports o f contracting for the new clip wools in the W est are less numerous. Some dealers, however, have found that carpet wools for both immediate and future delivery are in better request. Demand continues to favor the lower grades o f wool, and mills manufacturing woolens are reported to have made moderate purchases o f noils and waste. Notwithstanding smaller sales, prices for raw wool as a rule remain firm. The reasons for this are various. In the first place, foreign markets for wool continue to display strength, and prices in this country compare unfavorably with those abroad. M oreover, dealers have allowed their stocks to become depleted, and in the local market, supplies are reported to be very light, espe cially o f foreign wools. That stocks o f wool in the country as a whole are relatively small is indicated by the following figures o f the Departments o f Commerce and Agriculture. Since the first o f the year, however, imports o f raw wool have increased considerably. D ur ing January, they aggregated 30,785,931 pounds, in con trast with 11,797,032 pounds during the preceding month, 7,882,870 pounds during September, 1923, and 56,312,747 pounds during January, 1923. Business in woolen and worsted yarns is rather ‘spotty.” Although a number o f spinners continue to report that the demand is poor, Woolen and many state that it has increased worsted yarns and is fair. Spinners differ also as to the number o f future orders taken. Some find that most o f the business on the books is for shipment within the next 60 days, but others report that from 25 to 50 per cent o f the orders are for delivery after that period. On the whole, though business is not as good M arch e v i e w as it was a year ago, appearances indicate that it is gradually expanding. In a few instances weaving yarns for men’s wear have shown the greatest improvement. But this has not been general and some spinners find that yarns for men’s wear are selling in small amounts only. Some firms report that worsted knitting yarns for outer wear, especially in light and bright colors for spring sweaters, are moving more actively, and though makers o f bath ing suits are still buying sparingly, a few spinners note increased interest from this trade. Carpet yarns are in moderate request. Quotations on yarns are firm, and notwithstanding decided resistance on the part o f buyers, many spinners reporting to this bank have made advances ranging from 3 to 10 per cent during the past month. But spinners still consider present prices unsatisfactory from the standpoint o f profits. The amount o f business booked has enabled numerous producers to operate at or near capacity without accumulating large supplies o f yarn, but in a number o f plants operations continue to be re stricted. W ool consumption in this district, as shown by returns from 81 establishments, was 26 per cent greater in January than in December. A s a rule, stocks o f finished goods in the hands o f producers are light, and supplies o f raw materials are o f medium size. Labor, both skilled and unskilled, is in either sufficient or plentiful supply, but no reductions in wages are reported. Collections range from fair to good. During the past month the market for woolen and worsted goods has been featured by the opening o f heavy-weight lines and the namWoolen and ing 0 f prjces on staple and fancy worsted goods r r • r , , W s fabrics for men s wear by the largest producer. On January 31 quotations on staple fabrics were announced, and much to the surprise o f the trade, which had expected substantial advances, prices on many numbers were about the same as they were a year ago. On the average, quotations were slightly higher than those for the fall season o f 1923, but con siderably lower than those named at the openings o f 1924 spring lines. The same is true o f quotations an- WOOL STOCKS IN AND AFLOAT TO THE UNITED STATES* In pounds Dealers December 31, 1923.......................................... September 20, 1923......................................... June 30, 1923................................................... March 31, 1923................................................ December 31, 1922.......................................... September 30, 1922......................................... June 30, 1922................................................... * Departments of Commerce and of Agriculture. Total Boston Philadelphia All others 175,150,787 216,864,338 232,032,947 174,150,542 177,715,894 206,303,157 181,203,498 108,592.531 126,048,294 147,555,952 119,682,792 117,552,127 127,517,286 108,167,907 17,714,510 23,503,276 31,537,599 25,341,283 23,203,634 28,554,899 24,039,626 48,843,746 67,312,76S 52^939,396 29,126,467 36.960.133 50,230,972 48,995,965 Manufacturers Total 170,840,582 180,395,847 215,989,803 235,787,655 250,767,717 245.504,564 225,081,781 345,991,369 397,260,185 448,022,750 409,938.197 428,483,611 451,807,721 406,285,279 T924 T hird F e deral R nouncecl on February 18 for fancy goods for men’s wear, which averaged only 1 ^ per cent higher than those o f a year ago. eserve D i s tri ct 19 size and have tended to increase. The supply o f labor is adequate, and wages in general are unchanged. Collections are either fair or good. Although many independent producers have delayed the showing o f their lines, prices named by those who have held openings correspond to quotations named by the largest producer. In considering these prices it is interesting to note that quotations on raw wool are about the same as they were in February, 1923, or slightly higher, and that in many mills wages have advanced. But it must be remembered that during last fall prices for raw wool were considerably lower than they are at present, and that some producers are re ported to have purchased wool at the lower quotations. It is still too early to form a trustworthy conclusion as to the amount o f business booked, but reports in dicate that buyers have been conservative in making commitments for the future. Unseasonable weather is said to have delayed the liquidation o f stocks o f heavy weight clothing in the hands o f retailers. This has tended to make retailers cautious in ordering ahead and has also reduced their purchasing power. A s a result, clothing manufacturers have found that business in spring suits has been comparatively dull, and they in turn have placed but few duplicate orders for spring fabrics and are now exercising caution in ordering heavy-weight piece goods for fall. Many producers, however, find that business is bet ter than it was last month, and some firms have taken orders for delivery after the next 60 days, though the majority state that the bulk o f their business is for delivery during the next two months. Conditions in this district are unequal, some manufacturers report ing that the demand is good, others that it is still quiet. In general, fancy dress goods in light colors for spring continue to sell most actively. Makers o f women’s wear have recently noticed a good request for twills with hair line stripes. W oolen cassimeres for men are selling poorly, but other woolen fabrics are in better demand. In fact, it is reported that some pro ducers have enjoyed especially good business in woolens. Competition with Great Britain in woolen goods and worsted yarns has increased sharply since 1913, as is indicated by the accompanying chart. But during 1923, imports o f worsted fabrics from Great Britain were on the average smaller than they were during 1913. Imports o f worsted goods and yarns slackened considerably during the second half o f 1923 owing to dull business in this country. Operations in mills making woolen and worsted goods have in a number o f cases been increased during the past month, and many producers are running from three-quarters to all o f their equipment. In some plants, however, operations are still curtailed. Stocks o f finished goods are moderately light and have de creased, while supplies o f raw materials are o f medium In spite of the protective tariff, im ports of woolen goods and worsted yarns from Great Britain have increased sharply since 1913; im ports of worsted goods have declined. Source— British Government Statistics SILK Quietness has featured the raw silk market during the past month, and prices have weakened, Kansai double extra cracks decreasing Raw silk from $8.25-$8.30 per pound on January 19 to $7.45-$7.50 on February 21. Factors affecting both the supply and demand were responsible for the lower quotations. In the first place, finished goods are not moving actively, and because o f the uncertainty o f future demand, manufacturers are carrying fairly light supplies of raw material and are purchasing raw silk mainly as required. Moreover, notwithstanding a sharp increase in shipments o f raw silk to mills during January, im ports have continued to exceed deliveries, with the result that stocks in warehouses have accumulated, as the table on page 20 shows. Since last July, sup plies o f raw silk have nearly doubled, and during Jan uary were greater than at any time since February, 1923, when stocks were rapidly decreasing owing to good demand from mills. In addition to the above fac tors, continued fluctuations o f the yen in foreign ex change have retarded trade, and lower prices for raw silk at Yokohom a have contributed to weakness in the domestic market. O f great importance to consumers has been the sharp reduction o f quotations on artificial silk during the past month. Prices were lowered by from 10 to 33 per cent, the greatest decreases being on the coarse sizes. In view o f the fact that quotations on artificial silk have been remarkably stable during the past two T 20 B he u s i n e s s R M a r ch e v i e w SILK IMPORTS, STOCKS AND DELIVERIES—AMERICAN MILLS* Storage at end of month Imports during month Deliveries to American mills In bales 1924 1923 1922 1924 1923 1922 1924 1923 1922 January......................... February............ March......... \pril............... Mav.............................. June.............................. July............................... August.......................... September..................... October....................... November..................... December......... 36,364 32,593 33,759 28,336 27,414 25,814 23,727 25,622 36,092 28,837 31,229 27.944 28^835 40,177 19,950 19,746 21,438 34,842 35,598 25,575 39,813 38,492 46,569 36,733 33,057 44,398 47,087 44,615 39,436 28,657 29,962 25,865 22,914 25,459 27,367 32,679 35,398 40,959 31,139 28,982 22,077 19,268 20,826 26,895 27,474 32,515 36,795 45,893 47,159 49,174 32,925 34,680 36,231 33.515 38,193 24,509 27,824 28,573 33,547 26,929 25,917 25,225 23,274 33,842 22,107 26,651 24,247 33,284 29,529 24,996 34,772 34,212 37,471 35,467 31,042 T otal....... Monthly average... 36.364 36.364 350,202 29,184 391,990 32,666 44,398 33,367 32,350 32.925 32.925 358,417 29,868 367.620 30,635 * Silk Association of America. years, the decline in prices was unexpected. Some producers have granted rebates to consumers on goods shipped during January. Expanding imports, lessened demand, increasing stocks, and the economies o f quantity production have been mentioned as being mainly responsible for reduc tions in price. The accompanying table illustrates the rapid expansion o f the domestic artificial silk industry during the past few years. It is noteworthy that im ports o f artificial silk yarns, threads, and filaments were 87 per cent greater in 1923 than in 1922. DOMESTIC PRODUCTION AND IMPORTS OF ARTIFICIAL SILK* In pounds Year 1923.................................. 1922.................................. 1921.................................. 1920.................................. 1919.................................. 1918.................................. 1917.................................. 1916.................................. 1915.................................. 1914.................................. Domestic production 35,490,000 24,406,400 15,000,000 8,000,000 8,000,000 5,828,000 6,687,000 4,744,000 4,111,000 2,445,000 Imports of artificial silk, yarns, and threads 3,906,037 2,087,775 3,667,180 1,846,875 1.148,513 93,099 552,244 836,980 2,718,689 2,923,356 * Silk Association of America, Textile World, Department of Commerce. Many manufacturers continue to report a fair re quest for silk fabrics, but the expected improvement in demand has failed to develop to Silk goods any great extent. In fact, some producers find that demand is poor and less active than it was a month ago. A s in other branches of the textile industry, buyers hesitate to make future commitments for silk goods and are confining their purchases mainly to current require ments. Moreover, during the past month reductions in both pure and artificial silk have increased the con servatism o f buyers. A s a result, few manufacturers have been able to book orders for delivery after the next 60 days. The style trend for spring is still more or less uncertain, but buyers have manifested a preference for novelties and prints, and piece-dyed fabrics such as georgettes and crepe-de-chines have retained their popu larity over yarn-dyed goods such as taffeta. Demand for narrow ribbons from the millinery trade con tinues to be much more active than that for the wide variety. In consequence of the decline in raw silk, resistance to broadsilk prices on the part o f buyers has in creased, with the result that many producers have low ered quotations. But reductions have been conservative, in some instances amounting to no more than 2 or 5 per cent. However, in knitted wear, hosiery, and other goods in which considerable artificial silk is used, cuts have been more drastic, owing to the sharp decrease in quotations on artificial silk. Stocks o f finished fabrics, which a month ago were heavy, have tended to decrease during the past month and the majority o f producers now report them to be moderate. Supplies o f raw material are light. Oper ations in the silk goods industry in this district vary considerably; but few plants are running on full time, and most manufacturers are operating from 50 to 80 per cent of their equipment. It is noteworthy that whereas manufacturers o f cotton and woolen goods find that labor is plentiful, a few producers o f silk fabrics and many silk throwsters still report some scarcity o f experienced help in spite o f curtailed oper ations. This is mainly due to the fact that a larger percentage o f female labor is used in the manufacture o f silk goods than in other textile industries. 1924 T hird F e de ra l R Collections are fairly good. Demand for thrown silk is still rather quiet, having shown little improvement during the past month. Busi ness continues on a hand-toThrown silk mouth basis. But this is not to be wondered at in view o f the weakness in raw silk, the sharp reductions in the price o f artificial silk, and the uncertain demand for silk products. A few throwsters, however, report a fairly good demand for their products, and find that m ix tures o f artificial and pure silk have sold most actively. Spun silk is in dull request. Quotations on thrown silk are in most instances weak, and the trend of prices is downward, especially on combination yarns in which artificial silk is used. Some throwsters find that resistance to prices has been particularly noticeable on hosiery tram. A s a rule, throwsters are carrying fairly light stocks o f both fin ished goods and raw materials. Operations continue in general to be restricted, and for this district they range from 50 to 80 per cent o f capacity. But not withstanding curtailment, many throwsters have ex perienced difficulty in securing skilled help. Collections are for the most part satisfactory, though in a number of cases they are reported to be slow. eserve D 21 i s tri ct profit, and therefore some mills are working at only a small percentage o f their capacity. Some manufacturers whose output is fancy hosiery or specialties report a fair business, but in chiffons, which recently have been in good request, complaint is heard o f many rejections on account o f alleged ir regularities or imperfections. This has resulted in the sale at low prices o f a considerable quantity o f irregu lars or seconds, and these sales have' had a bad effect upon the market. The export business during the past year, as is illustrated in the accompanying chart, has failed to show much increase over that o f 1922, and except to Cuba and “ all other countries,” was no better. In fact, shipments to the United Kingdom decreased sharply and were smaller than in 1921, which was a very poor year. EXPORTS OF HOSIERY HOSIERY The feature o f the month in the hosiery trade has been a reduction in the price o f artificial silk, in some cases amounting to more than 30 per cent. This very large and generally unexpected drop has had a serious effect upon the trade, which, because o f the recent severe fluctuations in silk and cotton, had not been in a satisfactory condition for some months. During this period of disturbed silk and cotton quotations, prices on artificial silk had been unchanged, and this led to a considerable increase in its use in h osiery; in some cases it was used alone, but more frequently in combination with pure silk, mercerized cotton, or wool. Many jobbers either had stocks o f such hosiery on hand or had contracted for it wkh the mills, so that although the reduction in hosiery prices is much smaller than that on the raw material, jobbers are nevertheless facing a loss. This situation has led many o f them to demand a reduction on goods' already contracted for, and in other instances to cancel orders. Some hosiery manufacturers have in turn asked the artificial silk makers to grant them a rebate in price equal to the recent decline. In the face o f this disturbance, silk quotations are lower, and at the same time cotton and mercerized yarns have also eased off. Quotations on hosiery, too, have been revised downward, and as stocks in the hands of both manufacturers and wholesalers are at least moderate, the trade has become somewhat demoralized. A number o f manufacturers say that at present it is difficult to sell hosiery at a price which assures any Exports of hosiery during 1922 and 1923 have been only about half of what they were in the two years following the war. Source— Department of Commerce Collections are in most cases described as either fair or good, but a number o f firms so reporting state that they are slower than they were a year ago, and a minority find them poor. The Department o f Commerce announces that in December the production o f hosiery in 448 mills was HOSIERY INDUSTRY pairs December November 3,710,254 3,607,999 4,428,588 3,811,010 7,450,563 3,207,613 267,615 Cancellations received during month.... Unfilled orders on hand at end of month. 8,964,584 7,413,476 4,415,921 279,583 9,775,697 In dozen Finished product on hand at end of T 22 he B u s i n e s s 4,400,590 dozen pairs. These establishments produced 70.9 per cent of the total value of hosiery as given in the census of manufactures in 1921. The compara tive figures for the 391 mills reporting for both N ovem ber and December are set forth in the accompanying table. A further analysis o f the above figures discloses the fact that the totals o f unfilled orders at the end of December in full-fashioned hosiery for both men and women were larger than at the end o f November, but that in seamless hosiery they were smaller. UNDERWEAR The market for underwear is for the most part quiet, though some producers reporting to this bank find that demand is slightly more active than it was during the preceding month. A s in many other textile lines, buyers are extremely cautious in making commitments for underwear. The majority of producers are meet ing with but slow response to their offerings o f heavy weight lines, which were recently opened, and the call for spring underwear is dull. Conservatism on the part o f buyers is attributable to a number o f causes. In the first place, demand for lightweight underwear from retailers has been poor, and consequently jobbers are placing few duplicate orders with manufacturers. M ild weather has de layed the liquidation o f stocks o f heavy-weight under wear in the hands o f retailers. This has not only reduced the purchasing power o f retailers, but has in creased their caution in ordering for the future. M ore over, buyers lack confidence in the stability o f prices. Because o f higher raw material costs, many producers o f underwear made sharp increases on spring goods, and the openings o f heavy-weight lines show advances ranging from 5 to 20 per cent over the prices o f a year ago. Jobbers seem to doubt their ability to merchandise underwear at these figures and resistance to quotations is pronounced. Recent weakness in raw cotton has not tended to increase their confidence. However, though in a number o f cases prices for underwear are weak, few concessions are reported. A s a result o f the above factors, the amount o f fall business which has been booked compares quite un favorably on the whole with that o f a year ago. But in a few cases, by offering attractive values and prices, some producers h aw received a fair number o f orders for heavy-weight underwear. F or example, a manu facturer o f children’s knit underwear, who raised his prices only 5 per cent over those o f a year ago, re ceived enough business to keep his plant busy until about the first o f September. Some makers o f men’s and boy’s underwear were equally fortunate and re port that demand is fairly good. But ladies’ cotton underwear for both spring and fall is in poor request. One producer reports that for old established lines R e v i e w march o f ladies’ underwear, orders total not more than 40 per cent o f those o f 1923, while on a new line o f men’s goods, orders are booked well ahead. The vogue o f silk underwear for ladies has reduced the demand for the cotton variety considerably. Operations in this district vary, but the majority o f mills are running from 50 to 80 per cent o f their equip ment. A few plants have increased operations some what during the past month. Stocks o f underwear and o f yarns in the hands o f producers are moderately light, and both are tending to decrease. The supply o f labor is as a rule sufficient, and wages are in general unchanged. In a few instances, however, skilled help is reported to be scarce, and in isolated cases slight ad vances in wages have been made. Collections show little change since last month and range from fair to good. FLOOR COVERINGS Sales o f carpets and rugs during January varied con siderably, even among mills producing the same ty p e ; and although the majority o f our reports indicate that business has improved since the first o f February, some state that orders have decreased. In nearly all cases the orders booked are small and call for early ship ment. Buyers state clearly that they have no desire to buy either for stocking purpose or for future delivery. The rate o f production has changed but little during the month, but what change has occurred has been in the nature o f an increase. Stocks are either moderate or heavy and in some cases have grown larger. Manufacturers report that buyers are in many in stances objecting to the prices asked but that they are maintaining them firmly, as the cost o f carpets and CONSUMPTION OF CARPET WOOLS E&sa Foreign combing CZD Foreign fillin g _ Total consum ption 1921 1922 1923 1924 The change in the demand for carpets and rugs from those o: high quality to those of cheaper grade is reflected in the consum ption of filling wools over that of com b ing wools during the second half of 1923. Source— Department of Commerce 1924 T hird F e deral R rugs shows no tendency, to decrease. Prices o f raw materials, especially o f wool and worsted yarns, are firm or higher, and labor, though plentiful, is receiving the same wages as it has in recent months. Moreover, as the total production is less than it was a year ago, the overhead expense is somewhat higher. The accompanying chart shows that the consumption o f carpet wools increased in 1923 as compared with 1922 in every month except December, and that in both of these years it was far heavier than in 1921. During 1922 and the first half of 1923 combing wools constituted the larger part o f the con sumption, but in the second half o f 1923 filling wools were used in larger quantities than combing wools. Linoleums are in good demand, and some o f the manu facturers are sold well ahead on most descriptions. Inlaid linoleums are perhaps in slightly poorer request than the other kinds. Felt-base lines are selling well, and one o f the largest manufacturers made an ad vance in price on February 1. Raw materials are either firm or higher in price, with the exception o f lithopone, which has recently declined somewhat. Collections in all lines o f floor coverings are either fair or good. eserve D i s tri ct unskilled labor is plentiful. On January 15, 3327 wage earners were employed in 22 furniture factories report ing to us, at average weekly wages o f $24.62, or 5.2 per cent less than the average earned by 3390 em ployes on December 15. Collections may scarcely be characterized as fair. They are distinctly poorer than they were a year ago, but much the same as they were in January. LEATHER Throughout the month, the price o f hides has steadily advanced, both in this country and in the Argentine. A s large packers are said to have Hides and skins contracted up to the present slaughter on nearly all selections, the position o f the market is a strong one. Some tan ners, however, state that the recent advances in hides have carried prices beyond the basis o f present leather quotations. The following table shows the extent of these increases. CHICAGO PACKER HIDES FURNITURE Only a fair demand for furniture is reported by manu facturers in this district. Though the call for several o f their products is stronger than it was a month ago, it is noticeably weaker than it was during February, 1923. Radio cabinets are in good request, especially in the cheaper qualities, but the call for bedroom and dining room furniture is only fair. Living room sets, too, are moving rather slowly, but as sales o f the better grades o f these follow closely the rate at which new building and remodeling is completed, manufacturers expect that the next few months will mark the beginning o f greatly increased business. Makers o f miscellaneous articles o f furniture are working on orders for im mediate shipment, which is also true o f manufacturers o f complete suits. Practically none o f the orders now on the books are for delivery beyond 90 days, and most are for shipment in not more than 30 days. Manu facturers reporting to this bank are operating at an average o f 85 per cent o f capacity, which is about the same as that o f last month. Prices are strong, and in but few cases have any reductions been made since this time last month. These few are said to be wholly the result o f sharp competi tion among makers o f some o f the lower priced furni ture. Stocks o f finished goods are in most cases moder ate, though in a few they are either heavy or light. Supplies of raw materials are almost in all instances moderate and are very much the same as they were during the preceding month. There is a scarcity o f skilled workers in several factories in the Third Federal Reserve District, but 23 Heavv native steers............ Heavv Texas steers............. Butt brands........................ Branded cows..................... Heavy native cows............. Light native cows............... Branded bulls...................... Week ending Week ending January November 19,1924 24, 1923 Week ending February 16, 1924 1 3 cents 14J4 cents 11 13 11 13 9 7 Li “ 12 1234 “ 9 Li “ 11-1134“ 7R-8 “ 7 16 cents 1534 “ 1534 “ 11 1234 “ 12 “ 1034 “ Argentine frigorificos, in response to heavy buying both for European and American account, have ad vanced to 18jd cents. Calf skins, too, have been active in a quickly ad vancing market, and almost the entire supply is said to have been purchased. On January 19 the best bid for Chicago packer skins was 18J4 cents, which was the last recorded price. But packers declined to accept the bid, and shortly afterwards sales were made at 20 cents, and more recently at 2lR> cents. European buying STOCKS OF RAW HIDES AND SKINS Cattle Dec. Jan. Dec. Jan. Dec. Jan. Dec. 31, 30, 31, 30, 31. 30, 31, 1920.. . 1921. . . 1 9 21.. . 1922.. . 1922. . . 1923.. . 1923.. . 7 ,793.762 7 ,06 1,06 7 5 ,81 9,21 9 5 ,347,279 6 ,345,676 6 ,086,120 5 ,086,286 Goat and kid Sheep and lamb Calf and kid 13,773,089 13,755,042 12,661.438 10,971,445 9 , 151,484 9 ,915,681 7 ,400,296 4 .577,681 11,721,505 4 ,916,736 9 ,67 9,84 7 3 ,99 0,42 7 10,3 7 9,70 3 4 ,473,948 10,799,335 4 .46 1,94 6 8 ,730,219 4 ,360,239 10, 186,623 2 ,935,094 9 ,92 6,128 T 24 he B u s i n e s s has been partly instrumental in raising prices. Goat skins, especially those suitable for the manufacture of colored kid, have ceased to decline, and on larger sales have in some instances advanced slightly from the low quotations. Stocks o f raw hides and skins in this country have decreased considerably during the past three years, as is shown by the accompanying table. The market for heavy leather during the month has shown a marked improvement; the volume o f business has increased and prices have Leather risen, but the advance is said by some tanners to have been less than the increase in the price o f hides. The shoe trade has bought much more freely than during recent months, and sales to belting manufacturers, though not showing as great a gain, have increased. Belting manufacturers report that orders are in good volume but that buyers continue to cover only immediate needs. The accompanying table shows that production, except o f belting butts, decreased in December, and that stocks o f backs, bends, and sides and o f belting butts were practically unchanged, while those o f offal, sole, and belting decreased. Since January 1 the wetting o f hides is said to be on about the same scale as in D e cember, although some small tanners who were then very inactive have increased their wettings slightly. HEAVY LEATHER* December, 1923, as compared with November, 1923. Production dur Stocks at end of ing month month - 5 .2 % + 2 .4 “ - 2 .6 “ M ar c h e v i e w the whole have shown an improvement. Calf leather has increased both in demand and in price, but the advance in price is reported to be only about 60 per cent o f the gain during recent months in the quotations on raw calf skins. Grain calf in black and the light shades o f brown, in white and some o f the bright colors, is selling freely, and the call for suede con tinues to be good. Kid leather in black shows only a slight improvement, but the lighter shades o f brown have strengthened considerably. The darker shades, however, are neglected, as the fashion for spring shoes has changed. Patent leather continues to sell in good volume, and cattle side leather for cheaper shoes is in some cases replacing calf because o f the advance in the price o f the latter. The accompanying table shows that stocks o f upper leathers increased during De cember, but not as rapidly as the production o f cattle side and kid leathers. The output o f calf leathers was slightly less in December than in November. UPPER LEATHERS* December, 1923, as compared with November, 1923 Cattle side...................................... Calf and kid................................... Goat and kid............................... i Cabretta...................................... J Production dur Stock at end of ing month month + 13.5% - 1.1“ + 10.7“ +2.0% + .8 “ + 3 .2 “ + 1.1“ * Figures compiled by the Department of Commerce. + .01% - .1 “ !^ ’ eo 1 Backs, bends and sides................... Belting butts................................... Offal, sole and belting.................... R * Figures compiled by the Department of Commerce. From the following statistics o f leather production for the past three years it will be seen that in spite o f the drastic curtailment during the latter part of 1923, the output o f each description except goat and kid and cabretta was considerably greater in 1923 than in 1922. Upper leathers have moved rather unevenly but on Labor in the tanneries in all branches o f the trade is plentiful, and except in two kid leather factories, wages are unchanged. In these, a reduction o f 5 per cent in one and o f ten per cent in the other has been put into effect. Collections are in general reported as satisfactory. Production o f shoes in December, totaling 22,676.436 pairs, was smaller than that in any month since 1921. but the output for the year 1923 Shoes was the largest o f which there is accurate information. The previ ous record was made in 1919. In the following table is given the annual production in some recent years. SHOE PRODUCTION* ANNUAL PRODUCTION OF LEATHER* 1923 1922 1921 Backs, bends and sides. . 18,732,180 17,734,603 18,063,096 1,471,100 1,073,801 1,195,116 Belting butts................. Offal, sole and belting... 135,166,967 121,637,004 100,103,807 18,570,726 16,431,749 12,595,982 Cattle, side, upper......... 16,621,568 13,643,610 12,667,607 Calf............................... Goat and k i d 1 49,187,019 50,032,197 37,255,827 Cabretta.................... J * Figures compiled by the Department of Commerce. 1914............................................................. 1919............................................................. 1921 .......................................................... 1922 ............................................................. 1923 .......................................................... 292,666,468 pairs 331,224,628 “ 286,771,101 “ 323,876,458 “ 351,114,273 “ * Figures compiled by the Department of Commerce. Since January 1, output in the factories o f this dis trict has increased, and at many the orders on hand are sufficient to keep them running at capacity until Easter. 1924 T hird F e de ra l R During the past few wdeks women’s shoes have sold more freely than formerly, and styles for early spring are now fairly definitely decided on. Straps and sandals are to continue in vogue, and although many varia tions o f these are offered, it appears that few extremely new models are being adopted. Lighter browns will take the place o f the darker shades for both women’s and men’s wear. Prices are in most cases unchanged, but a few manu facturers have made sligh reductions. Stocks o f shoes in the factories are in most cases reported as moderate, but in some they are heavy and in a few light. Collec tions are in a number o f instances stated to be slow, and the reason given is the large unsold stock o f rubber goods in the hands o f jobbers and retailers. But a large proportion o f manufacturers report that collec tions are fair. Exports o f shoes in 1923 totaled 7,696,857 pairs, a gain o f 36.8 per cent over those o f 1922. M en’s shoes showed the largest increase, 69.7 per cent. Cuba was our best customer, and M exico came next. A t wholesale, the total sales of shoes in January were smaller than in December but were larger than in January, 1923; a majority o f the firms, however, re ported decreases. Fuller details o f the sales at whole sale will be found on page 9. A t retail, the colder and more stormy weather of February has somewhat stimulated the sale o f shoes and rubber goods, and a fair business is reported. W om en’s shoes are in better request than men’s, and the best sellers are those in black and brown suede, patent leather, and satin. In the men’s departments tan high shoes and oxford s take the lead; and for children, flexible stitchdowns are in request. Stocks, although lower than in the previous month, continued to be larger than they were a year ago. eserve D i s tri ct RUBBER Mainly because o f inactive demand from consumers, the market for crude rubber has been rather quiet. N ot withstanding improvement in the Crude call for tires and other rubber products, and contrary to the ex pectations o f the trade, manufacturers have been very conservative in making commitments for the future. The bulk o f the business in crude rubber has been in small amounts for current requirements. Moreover, though imports o f crude rubber are much smaller than those o f a year ago, they have increased considerably since last September, as the table on page 26 indi cates. During the past month developments in rub ber restriction have unsettled business in crude rubber. The “ standard” production o f Malaya was reduced by only 10,000 tons, instead o f by a larger amount antici pated by the trade, and the exportable percentage was allowed to remain at 60. A s a result, prices for crude rubber have weakened and on February 19 first latex crepe was quoted at 25 y2 cents per pound, in contrast with 28j^ cents on November 22 and 2 6 cents on January 5. Although present quotations for crude rubber are higher than they were during the two years immediately preceding the adoption o f the Stevenson restriction plan, they are still only about two-fifths as high as they were in the sixyear period from 1913 to 1918. In view o f the fact that the United States uses about three-fourths o f the w orld’s production o f rubber, as is indicated by the following chart, attempts by the British to control prices by artificial means are o f great interest to this country. Plantation rubber comprises about 90 per cent o f the total production o f rubber, and o f this CRUDE RETAIL SHOE TRADE Third Federal Reserve District NET SALES (in terms of dollars): (a) January, 1924, as compared with December, 1923......................................................................-26.9% (b) January, 1924, as compared with January, 1923................................................................ +14.0 “ 400 2. STOCKS (selling price): (a) January, 1924, as compared with December, 1923............................................................... -12 .9 “ (b) January, 1924, as compared with January, 1923............................................................... +2.9" 200 W orld’s production 1 All other Percent of total imported into U.S. L RATE OF TURNOVER (times per year based on cumulative period): (a) January 1 to January 31, 1924......................... 3.5 “ (b) January 1 to January 31, 1923 ......................... 3.1U Number of stores reporting above items: 1........................19 2 ......................17 3 ...................... 17 RUBBER Eggs P la n ta tio n v777z\ B r a z il r~ 3. 25 IOO 1900 wing to enormous expansion in the am oun t of plantation rubber produced the world’s production of crude rubber has increased greatly in the last decade. In 1900 the United States imported only 41 per cent of the total output, but by 1922 the percentage had risen to 79. Source— Department of Commerce 26 T iie B us i nes s R M arch ev i e w IMPORTS OF CRUDE RUBBER INTO THE UNITED STATES* 1924 1922 1923 1921 1920 Month Quantity in pounds Value in dollars Jan....... 49,080,640 $12,066,929 Feb....... Mar...... Apr....... May. . . . June.... July. . . Aug.. . Sept... . Oct. . . . Nov...... Dec....... Total. . . Monthly Average Quantity in pounds _ Value in dollars Quantity in pounds 79,763,620 $14,310,825 54,010,946 60,379,290 13,150,823 66.744.240 69,280,706 19,041,565 64,215,222 69,580,014 21,925,814 43,407,359 80,107,447 24,953,222 35.725.240 79,188,711 23,941,937 50,952,024 44,634,798 13.008,840 56,854,758 42,741,430 11,612,618 54,332,275 6,509,319 44,344,862 25,902,645 7,345,347 74’315,183 39,473,412 34,822,867 9,236,078 54,343,659 66,596,926 16,991,331 75,164,624 Value in dollars $8,110,912 10,827,106 10,999,040 7,272,098 5,427,605 7,422,114 8,259,754 7,884,512 6.202,136 10,189,101 7,837,851 11,410,959 Quantity in pounds Value in dollars Quantity in pounds Value in dollars 26,911,753 $7,922,433 66,427,415 $27,967,228 21,933,165 6,885,677 71,354,904 30,646,535 28,508,995 8,683,368 82,477,607 37,383,161 26,087,408 5,505,177 63,629,269 29,489,666 23,890,838 4,051,921 44,099,902 19,788,550 34,624,748 5,831,817 43,538,723 19,961,307 27,647,874 4,214,459 45,454,437 19,982,559 33,103,804 4.938,038 44,047,264 20,097,267 34,-546,411 4,750,534 27,883,748 10,957,8-54 47,642,303 6,694,418 20,516,090 7,518,880 51,741,184 7,721,644 32,955,016 11,688,128 58,644,821 8,370,344 24,161,761 7,314,638 692,467,527 $185,057,719 674,410,392 $101,843,188 415,283,304 $73,772,677 -566,546,136 $242,795,773 57.705 627 *15.421.477 56,200,866 $8,486,932 34,606,942 $6,147,723 47,212,178 $20,232,981 * Department of Commerce. over 72 per cent is grown in British colonies, from which its export can be controlled by taxation. But the Dutch East Indies are not directly subject to the restriction plan, and the fact that exports from this source are increasing has caused no little concern to the advocates o f restriction. During 1923, 16.2 per cent o f our total imports came from the Dutch East Indies, in comparison with 13.7 and 12.8 per cent respectively in 1922 and 1921. Business in mechanical and hard rubber goods is in general satisfactory, and with a few exceptions producers . . . . , and dealers in this district report ii _ , that sales are either fair or good. rubber goods ^ January j demand has with mechanical goods, a moderate number o f orders for various kinds o f hose, belting, and packing have been placed with producers and distributing agents. Some manufacturers find that heavy belting has sold best, while others report this to be true o f hose. A fair vol ume o f filling-in orders for garden hose have been received by producers. Makers o f hard rubber goods state that demand for their products is fair, and that at present the radio and automotive industries are purchas ing the largest amounts. Rubberized fabrics such as motor topping have likewise sold well, mainly to auto mobile manufacturers rather than to jobbers. many firms tended to increase, though in an equal num ber o f cases it has remained about the same. A s a rule, buyers are making few commitments for the future, preferring to purchase mainly for spot delivery. H o w ever, a number of producers find that the volume o f business received compares favorably with that o f a year ago. On January 1 mechanical and other rubber goods con taining cotton fabrics were increased in price by from 5 to 10 per cent by the majority o f producers. This ad vance was mainly due to the higher cost o f cotton fabrics. Quotations on rubber heels and hard rubber goods were not raised. In a number o f cases opposi tion to present prices on the part o f buyers is reported, especially in some lines o f hard rubber goods where competition is said to be keen. Dealers in the Philadelphia market state that at the present time railroads are buying cautiously, but that the construction trade is purchasing more actively, ex cept in the South where it is reported that inclement weather has interfered with building activity. On the other hand, in this district the open winter has re tarded sales o f rubber clothing and footwear, leaving sizable stocks in the hands o f retailers and distributing agents. Dealers, however, have received an excellent amount o f business in rubber soled keds and tennis and sport shoes, and they are now making shipment on orders placed last fall. Manufacturers report a fair re quest for rubber heels for immediate delivery. In In this district most plants making rubber products are running from three-quarters to all o f their equip ment, and since January 1 operations have in a number o f instances been increased. In general, stocks o f fin ished goods are about the same as they were a year ago, or somewhat larger. A t the present time, how ever. they are tending to diminish, owing to shipments o f spring merchandise. A s a rule, the'supply o f labor is adequate. W hile many manufacturers and distribu tors have experienced little difficulty with collections, others find they are rather slow. Complaints from distributors o f rubber footwear are particularly notice able. T T924 hird F ederal R eserve D 27 istrict PNEUMATIC CASINGS* Production Inventory Shipments Month 1922 1923 1923 1922 1923 1922 J a n u a r y .............................................................................. F e b r u a r y ........................................................................... M a r c h ...................................... A p r il.................................................................................. M a y ............................................................................. J u n e .................................................................. J u l y ............................... A u g u s t................................................................................ S e p te m b e r ......................................................................... ( ) c t o b e r ......................................................................... N o v e m b e r ......................................................................... D e c e m b e r ......................................................................... 4,695,916 5.224.387 5,670,601 6,088,272 6,906.594 7,040,600 6,471,124 6.058.387 5,397,557 4,876.352 4,689,329 4,329,300 4,174,216 4,691,329 5,183,286 5,464,336 5,523,095 5,042,147 4,834,106 4,629,392 4.612,037 4,682,958 4.964,976 4,599,208 3.127,270 3,217,987 3,855,726 3,539,326 3,659,986 2,956,943 1,992,989 2,355,915 2,029,581 2.361,340 2.399,725 2,437,148 2.055.134 2,084,308 2,645,790 2,401,187 2,721,503 2,838,890 2,476.636 2,905,209 2,504,744 2,674,662 2.733.134 2,656,942 2,994,297 2,588,639 3,322,637 2,976,160 2,757,764 2,502,185 2,539,425 2,807,432 2,623,775 2,819,583 2,456,296 2,603,617 1,596,806 1,562,365 2^073,963 2,086,651 2,639,273 3,133,260 2,695,095 3,029,823 2,502,106 2,588,770 2,379,708 2,934,079 T o t a l ..................................................................... 67,448,419 58,401,086 33,933,936 30,698,139 32,991,810 29,221,899 M o n t h ly a v e r a g e ............................................. 5,620,702 4,866,757 2,827,828 2,558,178 2,749,318 2,435,158 * Rubber Association of America. Conditions in the rubber tire business have improved considerably. Not only has demand increased since January 1, but quotations have Rubber tires strengthened and operating sched ules have been raised. True, only a few producers, as yet, indicate that business is good, but many find it fair. As a result o f drastic curtailment o f operations dur ing the second half o f 1923, stocks of tires in the bands of manufacturers have been sharply reduced. Ir. this district stocks of finished goods are much smaller than they were a year ago, and in a number of cases are reported to be fairly light. That this is true for the country as a whole is shown by the ac companying figures o f the Rubber Association o f America. Since June, 1923, shipments o f tires have exceeded production, with the result that supplies dropped from 7,040,600 on July 1 to 4,329,300 on Janu ary 1, 1924, the smallest total since January, 1922. And in consequence of larger sales, manufacturers have again increased operations. In some cases pro ducers in this district are running most of their equip ment. Early in January a number o f manufacturers ad vanced prices by from 5 to 15 per cent. The higher cost o f cotton fabrics was probably the main reason for this, but other factors were the strengthening demand for tires, the reduced inventories, and the les sening o f price competition among producers. The development o f balloon tires is o f great im portance to the industry and is causing considerable discussion. The India Rubber W orld reports that some manufacturers in Trenton are already producing balloon tires and that others are planning to do so in the near future. However, according to the Standard Raily Trade .Service, confusion over wheel and rim changes and the comparatively high prices quoted, are factors that will militate against the popularity o f the new tire. Recently, one o f the large producers of balloon tires cut prices by 20 per cent. Some manufacturers and dealers in rubber tires have experienced difficulty in making collections, and on the whole they are but fair. PAPER In general, the paper industry is more active than it was in January, but the demand is not quite as heavy as it was in February, 1923. The call for book and fine, papers is fair, and most mills are operating at about 80 per cent. Plants producing wrapping papers have more orders on hand than they had last month, and in this district they are operating at close to capacity. The demand for toilet tissues and crepe towels has greatly increased, and the mills making these are run ning on full time. Paperboard, particularly box boards, and building paper are in better request than they were a month ago, and production at the mills has been in creased to 90 per cent of capacity. Fine tissues and glazed paper are in fair demand, and the spring season for wall papers is opening with much promise. Paper converters report that business is fairly good, the majority running their factories at 80 per cent. Tablets are selling in considerable volume and envelopes are in demand. Practically all orders are for prompt ship ment, very few mills having more than 30 days’ busi ness on hand. Jobbers report that sales show little if any increase over those o f January. However, as is shown in the table on page 10, wholesale paper sales in January were slightly larger than those o f Jan uary, 1923. Imports of newsprint and wrapping paper during the year 1923 were more than 25 per cent greater than those o f 1922. A s illustrated in the following 28 T he B usiness chart, imports of wrapping paper were nearly 20 times as large as in 1920, and more than twice as great as in 1914. The imports o f newsprint were nearly twice those o f 1920 and four times those o f 1914. j, R M arch eview Fancy specialty boxes are in moderate demand and are selling better than they were last month. The call for folding boxes is good, but paper tubes, par ticularly mailing tubes, are in poor request. Corrugated boxes and fibre shipping containers are in slightly greater demand than they were in January, but most factories are still operating at only three-fourths of capacity. On the whole, however, the call for boxes is better than it was a year ago. About 85 per cent o f the orders received by box makers are for delivery within 60 days, and very few commitments for future delivery are being made. Some weakness is still displayed in prices, but pricecutting is not so severe as it was a; month ago, and many manufacturers report that quotations are firm. B ox board prices have fluctuated only a little during the month and are practically the same as they were in January. Stocks o f finished boxes at the factories vary from light to moderate, and supplies o f board are moderate. The supply o f unskilled labor at all factories is plenti ful, but at some o f the set-up box factories skilled workers, particularly table workers, are scarce. W ages are unchanged. Reports concerning collections vary greatly, but in general collections are fair and the same as they were last month. Paper prices are now relatively firm, and there have been practically no changes since last month. Buyers are still seeking concessions on book and wrapping papers, but, except on some grades o f kraft paper, none have been granted. Mechanical and chemical pulps have declined about 5 per cent in price during the month. Finished stocks at the mills vary from light to mod erate and are increasing slightly. Supplies o f raw materials are moderate and show little change since last month. Both skilled and unskilled labor is in ample supply at all mills, and wages have not changed. Col lections are reported to be from fair to good and are slightly more prompt than they were in January. PAPER BOXES Although several box makers have more orders on hand than they had in January, the majority report that the demand is no greater than it was a month ago. A s a result, factories are still operating at re duced capacity, the average rate for the district being about 75 per cent. Cheap candy boxes are in good re quest, but the call for high grade boxes is only fair. The hardware, foodstuffs, electrical supplies, and shirt industries are active buyers, but the underwear and hosiery trades are making only small purchases. The shoe industry is becoming more active, and manu facturers o f shoe boxes state that they have received more orders from this industry than for several months. TOBACCO Leaf dealers report that the demand for cigar tobaccos, particularly the cheaper grades, is fairly good and that the market is slightly Tobacco leaf more active than it has been for the past three months. The majority o f dealers state that sales thus far in 1924 ex ceed those o f January and o f February, 1923. The large cigar manufacturers are the principal buyers, but the smaller producers are purchasing more heavily than'in January. The Lancaster tobacco market has been rather inac tive, but considering the season, business is fairly good. Only a few thousand cases of 1922 packings remain unsold, and the 1923 packings are not yet ready for marketing. February and March are always dull months in that market, and little business is expected. Prices o f Pennsylvania tobacco are very firm. The 1922 packed wrappers are selling at from 28 to 32 cents per pound, actual weight, and fillers at from 10 to 15 cents. Packers have been buying the 1923 crop in large quantities and are now actively engaged in preparing it for market. Leaf dealers estimate that the farmers have sold fully 75 per cent o f last year’s crop at very attractive prices. The 1923 w’rappers and binders, in the bundle, are bringing from 15 to 23 cents per pound, and fillers from 4 to 6 cents. At these prices the growers have been selling freely, and they show little desire to hold their crops for later sale. T hird 1924 - F R ederal Cable advices from Cuba state that excessive rains in some o f the provinces have wrought considerable damage to the new crop, which is now growing. The extent o f the injury has not been fully ascertained, but it seems certain that the new crop of Havana tobacco will not be as large as was earlier estimated. Even so, the yield should exceed that o f 1923. The market for 1923 Connecticut tobacco has been quite active, and buyers have purchased both the shadegrown wrappers and Havana Seed in considerable quantities. The quality o f the 1923 crop is exception ally good, and despite high prices, the new tobacco is being readily sold to dealers and manufacturers. Withdrawals of Sumatra, Java, and Havana tobacco from the warehouses have been large during the month, but chiefly on old contracts. Importers are now prepar ing their plans for the new Sumatra inscriptions at A m sterdam, and many will sail for Holland next month. Imports o f tobacco leaf in 1923 were smaller than in any year since the close o f the war with the exception of 1921, and were about 9 million pounds less than in 1913. H owever, as the following chart shows, the 1923 imports o f leaf suitable for cigar wrappers ex ceeded those of 1913 and o f every year following the war with the exception o f 1920. eserve D istrict 29 what better demand than they were a year ago. P ro duction continues at the same rate as in January; some factories are operating at capacity and some at only 60 per cent, but the average rate for the district is about 80 per cent. American cigarettes are in good demand, and most factories are working at close to capacity, but the call for Turkish cigarettes continues to be only fair. A s a result the output o f Turkish cigarettes is greatly cur tailed, and few factories are operating at more than 60 per cent. Snuff and chewing tobacco are in fair request, and manufacturers o f these are running their plants at 80 per cent of capacity. Practically all orders on manufacturers’ books are for prompt shipment. Jobbers of cigars and tobacco report that their sales are fairly good and slightly exceed those o f a year ago. The following chart, based upon figures compiled by the Commissioner o f Internal Revenue, shows that the output of large cigars in January, 1924, decreased 9.9 per cent, but that of cigarettes increased 17.0 per cent, as compared with the totals fo r January, 1923. PRODUCTION OF CIGARS AND CIGARETTES IMPORTS OF TOBACCO 1913 (5$orless) Leaf suitable f o r ci^ ar w rappers mm Total all other incl. product o f RI. 1C 20 30 40 50 60 70 80 90 lOO Source— Department of Commerce Considering the season, the demand for cigars is fairly good, most manufacturers reporting that it has fy. changed but little since last cT arU month. In Senera1’ the 0311 for ® v cigars is slightly less than it was in February, 1923. Class C grades continue to be the best sellers, but class B and class A brands are in some (5i<(.to6<t) (6 i<t +ol5<t) Source—Commissioner of Internal Revenue Cigar, cigarette, and tobacco prices are firm and un changed. Tobacco leaf prices, too, are well maintained, despite the assertion o f some cigar manufacturers that the price is statistically too high. Stocks o f finished tobacco products at the factories vary from light to moderate and show little change since last month. Stocks o f raw materials also vary from light to moder ate. Both skilled and unskilled labor is in ample sup ply, and wages have not changed. Collections range from fair to good and are the same as they were last month. COMPILED AS OF FEBRUARY 21, 1924 ___________________________________ This business review will be sent regularly without charge to any address upon request 30 H O W OUR BUSINESS R E V IE W IS COMPILED Business is no longer satisfied to know only the facts about its own branch o f industry. It goes further, embracing within the scope o f its interest business conditions in all lines and in all countries. Lacking the facilities to survey this broad field himself, the average man must depend upon those sources o f information which come to him without cost or at a reasonable fee. tical information on retail trade, including department stores, mail order houses, and three or four types of chain stores, and data on sales in many wholesale lines are now available. Employment and certain branches of manufacturing, too, are now covered statistically. Existing financial statistics have been supplemented by weekly reports on loans, deposits, etc., from banks in over one hundred o f the principal cities o f the country, and monthly information is available on savings de posits and money rates in a great many centers. The old figures on bank clearings have been replaced by weekly figures on debits reported by banks which are members o f clearing house associations throughout the country. Checks drawn on the accounts of banks and bankers are not included, but those drawn on all other accounts (individuals, firms, corporations, and the United States Government) are comprised within the debit figures reported, whether these checks have gone through the clearings or not. Thus the debit figures are entirely indicative o f the dollar volume o f business. The development o f the statistical reporting systems is o f particular interest. The method followed is sub stantially this: A fter consultations with trade asso ciations and firms in a particular line o f business, a re porting form is devised which those in the trade believe will furnish helpful statistics to them. Representative firms are then requested to report to the reserve banks each month on such a form. A fter all o f the reports for a particular month have been received, the figures for each item are added together and the composite results for the industry or trade as a whole are published, show ing percentages o f increase or decrease for the various items, for the month, in comparison with preceding periods. Experience gained over the past four or five years stresses the necessity of broadening still further the basis o f information upon which the business reports rest. Little new material in the financial field is sug gested at this time, but there is much scope for further research in the business world. In preparing a better foundation for these business reports, however, recog nition will not be lost o f the necessity for presenting the data in such form that its significance may be still more easily understood. It is the desire o f the reserve banks to make available to the average man the best inform a tion on business conditions that it is possible to obtain. The degree o f success which attends their efforts de pends largely upon the co-operation which they receive. The Federal reserve banks occupy a position of ad vantage in the collection o f this information. For their own guidance they were early under the necessity of becoming acquainted with the facts of business, and to obtain this knowledge with exactness they had recourse to the original sources— the business men and bankers o f their respective districts. Feeling under obligations to those who had helped them, and feeling, too, that the general dissemination o f accurate information on business conditions would be o f value, they started the publication o f monthly reports. These reports were prepared without bias, political or otherwise, gained the confidence o f the business community, and with the passing o f the years it becomes ever easier to secure its assistance in conducting this co-operative undertaking for the common benefit. It is simply the desire o f the reserve banks to give business men reliable tools with which to shape their own affairs. Accuracy of in for mation without forecast is the test o f the finished articles. The great bulk o f the information contained in the Philadelphia report is gathered at first hand from the business men, farmers, bankers, traders and others who make up the business world of the Third Federal Reserve District. Data coming from secondary sources are taken only from those o f accepted reliability and are checked in so far as this may be possible. All in dividual interviews, letters and statistical reports are held in strict confidence and the articles which are pub lished in the monthly reports are purely resumes of the data which have been received. Business conditions that appear good to one man fre quently seem only fair to another, with the result that reports which confine themselves to general comment are at times difficult o f interpretation and combination into a composite picture o f the current situation. The reserve banks recognize this, and their striving for greater accuracy finds expression in the establishment o f statistical reporting systems which serve to sub stantiate and make exact the general comment. Statis 32
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