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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT MARCH i, 1916 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA B U SIN E SS C O N D IT IO N S IN T H E U N IT E D S T A T E S Industrial activity in January was in slightly smaller volume than in December, and the distribution of commodities showed a seasonal decline. The level of prices r--named practically unchanged. P rod u ction . The Federal Reserve Board’s index o f production in selected basic industries was about one per cent lower in January than in December. The output of iron and steel, copper, and zinc increased, while activity in the woolen and petroleum industries declined, and mill consumption of cotton, the cut of lumber, ar 1 bituminous coal production increased less than is usual at this season o f the jeetr. Automobile production, not included in the index, was slightly smaller than in December, but consider ably larger than in January, 1925. Factory employment changed but little in January but the earnings o f workers decreased considerably, owing to the clos ing o f plants in most industries at the onening o f the year for inventory-taking • repairs. The volume of building id contracts awarded in January, although seasonally less than in December, exceeded that o f any previous January on record. Contracts awarded were particularly large in the New York and Atlanta dis tricts. Index of 22 basic commodities, adjusted for seasonal variations (1919=100). Latest figure— January, 120. T rade. Sales o f department stores and mail order houses showed more than the usual seasonal decline in January, but were larger than in January o f last year. Wholesale trade declined con siderably and was in smaller volume than a year ago. Stocks at department stores showed more than the usual in crease in January and were about 11 per cent larger than at the end o f Jan uary, 1925. Freight car loadings declined in January and the daily average for the month was approximately the same as a year earlier. P rices. Wholesale prices, as measured by the index number of the Bureau of Labor Statistics, remained practically unchanged from December to January. By groups o f commodities, prices o f grains, coke, and paper and pulp increased while dairy products, cotton goods, bituminous coal, and rubber declined. In the first three weeks o f February there was a decline in the prices of grains and follow ing the settlement of the strike in the anthracite region, a drop in the price o f bituminous coal and coke. Price ad vances were shown for refined sugar, copper, and petroleum. Weekly rates in New York m oney m arket; commercial paper rate on 4 to 6 m onths paper and acceptance rate on 90-day paper. Bank credit. A t member banks in leading cities the seasonal decline in the demand for credit, which began at the turn o f the year, came to an end to ward the close of January, and in the early part o f February the volume of loans and investments at these banks in creased considerably. The increase was largely in loans for commercial purposes, which after declining almost continuously from their seasonal peak early in October advanced by more than $50,000,000 in February. The growth in the commercial de mand for credit throughout the country, together with some increase in currency requirements, was reflected in a with drawal o f funds from the New York money market and was a factor in the increase in the demand for reserve bank credit after the end o f January. Re serve banks’ holdings of bills and secu rities increased by about $66,000,000 be tween January 27 and February 17. As the result o f the withdrawal of funds from New York the rates on call loans became somewhat firmer in Feb ruary, but commercial paper rates were slightly lower. Index of United States Bureau of Labor Sta tistics (1913— 100, base adopted by Bu reau). Latest figure-—January, 156. Page One Latest figure compared with BUSINESS INDICATORS Philadelphia Federal Reserve District January, 1926 Previous month Year ago -4 8 .4 % -4 9 .6 “ -3 9 .3 “ -3 2 .4 “ -5 5 .4 “ + 5 .5 % + 5.1 “ + 7 .6 “ + 1 3 .7 “ - 4 .8 “ -2 0 .7 - 8 .4 - 5 .4 -1 5 .5 -4 1 .8 -1 3 .1 -2 4 .2 -7 2 .2 + 5 .7 “ “ “ “ “ “ “ “ “ - 6 .9 “ + 0 .8 “ - 0 .7 “ -1 4 .8 “ - 9 .0 “ -1 0 .7 “ - 4 .0 “ + 7 .5 “ - 4 .9 “ prs. 1,317,315 tons 322,667 doz. prs. 1,114,168 tons 4,126 tons 6,293 bbls. 2,765,000 tons 173,000 tons 14,011,000 lbs. 6,561,461 117,516,065 KW H 291,046,700 + 1 0 .0 + 4 .3 + 0 .2 - 6 .9 - 3 .0 - 9 .4 -3 0 .8 + 6 .3 — 6 .3 + 3 3 .7 + 3 .3 “ “ “ “ “ “ “ “ “ “ “ + 0 .3 “ + 1 4 .5 “ 177,080 3,068,158 2,9 3 3,44 5 4 ,3 0 9,40 0 16,426,410 - 4 .7 + 2 .2 - 7 .9 -4 0 .0 -1 6 .9 “ “ “ “ “ + 0 .2 - 0 .5 -2 8 .6 -6 1 .3 -4 1 .8 Retail trade— net salesf (143 stores)...................................... Department stores (6 1 )........... .............................................. Apparel stores (3 6 ).................................................................. Shoe stores (2 7)........................................ ............................... Credit stores (1 9 ).................................................................... M onthly averages of weekly figures for banks in 101 leading cities. Latest figures are averages for first weekly report date in February. $17,704,000 $14,165,000 $2,393,000 $508,000 $638,000 Wholesale trade— net sales (146 firms).................................. Boots and shoes (10 firm s).................................................... Drugs (13 firm s)...................................................................... D ry goods (16 firm s).............................................................. Electrical supplies (7 firm s)............................................ Groceries (50 firm s)................................................................. Hardware (28 firm s)............................................................... Jewelry (12 firm s)................................................................... Paper (10 firms)....................................................................... $8,986,958 $278,717 $1,531,823 $748,721 $579,998 $3,223,835 $1,586,146 $281,411 $756,307 Production: Pig iron...................................................................................... B U SIN E SS C O N D IT IO N S IN T H E P H IL A D E L P H IA F E D E R A L Iron castings (30 foundries).................................................. C em ent....................................................................................... Anthracite.................................................................................. R E S E R V E D IS T R IC T Business in the Philadelphia Federal Reserve District continues in a fairly stable and prosperous condition. There was a slight recession in factory activity during the inventory period in January, but preliminary reports received by this bank indicate a quick recovery in plant operations early in February. At the pres ent time factory employment in the states o f the district is nearly 3 per cent ahead of last year, while wage payments are about 5 per cent larger. Another very favorable development has been the set tlement o f the anthracite suspension and resumption of mining on February 18. This has not only relieved the domestic fuel situation, but has already resulted in a marked betterment in retail and whole sale business in the hard coal counties. December activity in trade and industry was followed by natural seasonal reces sions in many lines. In retail business, o f course, large declines occurred, but the January volume experienced by stores in the district reporting to this bank was more than 5 per cent ahead of last year, with shoe and apparel stores making the greatest gains. Wholesale trade was also smaller than in December in all lines but paper, which showed a 5 per cent increase, and wholesale dealers in all lines but shoes and jewelry reported total Jan uary, 1926 sales below those o f the same month of 1925. Debits to indi vidual accounts also declined in January, but considerably exceeded the volume in any previous January. Railroad freight car loadings were about 5 per cent smaller in January but equalled the vol ume o f last year in spite o f the fact that there were virtually no anthracite ship ments this year. Building operations naturally have Page Two A ctive cotton spindle hours (Penna. and N. J .).............. Electric power— 13 system s.................................................. Distribution: Freight car loadings (Allegheny district— weekly average) Tonnage of vessels (Port of Philadelphia)......................... Exports of wheat (from Port of Philadelphia)................. Exports of flour (from Port of Philadelphia)................... Imports of crude oil (into Port of Philadelphia)............. Financial: Loans, discounts and investments of member banks (weekly average).................................................................. Bills discounted held by F. R . B. of Phila. (daily average) Acceptances executed (11 banks for month ended Feb. 1 0 )......................................................................... Bankers’ acceptances sales (4 dealers— weekly average for period ended middle following m o n th ).................... Commercial paper sales (5 dealers)..................................... Savings deposits (98 b an ks).................................................. General: Debits (18 cities)...................................................................... Commercial failures— number.............................................. Commercial failures— liabilities............................................ Building permits (16 cities)................................................... Building contracts awarded (Philadelphia district)........ Employment— 1,236 plants in Penna., N. J. and Del.: Number of wage earners................................................... Total wages.......................................................................... Average weekly earnings................................................... Sales of life insurance (Penna., N. J. and D el.)............... *Bureau of Census preliminary figures. tons bus. lbs. gals. - 8 .3 “ - 2 .3 a + 2 2 .0 “ -9 7 .7 “ “ “ “ “ “ $ 1,124,000,000 $48,172,000 + 1 .5 « -1 8 .9 “ $4,113,000 + 15.0 “ - $1,714,000 $10,075,000 $591,664,000 + 13.5 " + 34.5 “ + 0 .5 “ + 9 6 .1 » -1 7 .1 “ + 5 .5 “ $ 2,516,705,000 56 $1,348,759 $10,635,388 $20,321,588 - 6 .0 -3 9 .1 -4 9 .1 -2 7 .4 -1 4 .5 “ “ “ “ “ + 4 .9 -3 0 .0 -2 2 .8 + 15.0 + 1 1 .0 “ * “ “ “ 431,840 $11,281,875 $26.13 $68,521,000 - 0 .7 - 3 .2 - 2 .5 -2 2 .1 “ “ “ “ + + + - “ “ “ “ + 6 .6 “ + 8 4 .6 “ 4 .0 “ 2 .9 5 .3 2 .3 3 .5 fEstimated. slackened, but the value of contracts awarded continues substantially larger than in the corresponding period a year previous. Dealers in building materials report general quietness, though in most cases the volume compares favorably with that of last year. Prices remain fairly steady. The coal and coke markets have, of course, been affected by the resumption of anthracite mining. Domestic demand for soft coal and coke has slumped, with sharp price declines in the latter. Indus trial buying, however, continues active. The iron and steel industry continues fairly active with increased production reported for January. However, unfilled orders o f the Steel Corporation on Feb ruary 1 were smaller than a month be fore, and, in this district, the market for many products has quieted recently. Silk goods continue to lead the textile markets, and pronounced gains in busi ness and rising quotations have been re ported recently. The wool goods mar kets have also been more active, o f late, though demand and prices are consider ably less than they were early in 1925. Cotton goods, as well, have been selling recently in larger volumes, but prices are still below those o f a year previous. Hosiery mills in the district making fullfashioned grades are meeting excellent demand and continue active. City Conditions. January conditions in various sections of the district, as com pared with the situation in the preceding month and in January, 1925, are shown in the accompanying table. In building permits, debits and retail sales, large sea sonal decreases between December and January occurred in most o f the cities. As compared with the previous year, however, debits and retail business showed increases in most of the cities. Important exceptions were the cities of Scranton and Wilkes-Barre, as well as Altoona and Johnstown. Factory operations in January also compared favorably in the majority of cities with conditions in January, 1925, though in Reading, Lan caster, Scranton, Johnstown and W il liamsport both employment and wage payments showed declines. F IN A N C IA L C O N D IT IO N S In the four weeks ended February 10 the total loans and investments of report ing member banks in Philadelphia, Cam den, Scranton and Wilmington increased only about one million but total deposits fell 19 millions, and these banks added to their borrowings from the reserve bank. Loans on securities declined from 425.0 to 419.9 millions, but commercial loans rose from 360.3 to 364.7 millions and investments from 341.8 to 343.6 millions. Total loans and discounts are 100 millions higher than they were a year ago, but 94 millions o f this increase was in loans on securities. The Federal Reserve Bank o f Phila delphia reports an increase from 45.0 to 55.3 millions in discounts for member banks in the four weeks ended February 17. Holdings o f other loans and securi ties advanced only slightly. Federal re serve note circulation increased 4 millions, but total deposits declined by about the same amount and reserve cash fell 11 CITY CONDITIONS Philadelphia Federal Reserve District Philadelphia area. . . Trenton “ ... Wilmington “ . . . Reading “ ... Lancaster “ ... York “ ... Harrisburg “ ... Allentown “ ... Wilkes-Barre “ . . . Scranton “ ... Altoona “ ... Johnstown “ ... Williamsport “ . . . Comparison of net sales RETAIL TRADE Philadelphia Federal Reserve District Jan., 1926, with Jan., 1925 W age ment payments - 0 .2 % - 1 .0 “ + 1.6 “ -1 1 .3 “ - 0 .6 “ - 4 .2 “ + 1.7 “ - 1 .0 “ - 3 .5 “ + 1 .8 “ + 12.8 “ -1 6 .4 “ - 0 .4 “ - 2 .6 % - 2 .8 “ + 0 .4 “ -2 0 .2 “ + 0.1 “ - 6 .2 “ + 3 .5 “ - 6 .3 “ - 9 .4 “ - 6 .5 “ + 4 .9 “ - 9 .7 “ - 5 .8 “ + 5 .0 % + 1 2 .2 “ + 1 1 .4 “ - 9 .0 “ - 1.9 “ + 3 .0 “ + 8 .3 “ + 6 .3 “ + 2 5 .3 “ - 5 .2 “ + 1 0 .1 % + 13.6 “ + 5.1 “ - 5 .4 “ - 1 .1 “ + 3 .2 “ + 14.7 “ + 16.9 “ + 2 4 .5 “ -2 1 .6 “ « Johnstown Williamsport -2 5 .3 “ -1 1 .9 “ -2 7 .4 “ -1 6 .9 “ ... u ♦Includes Camden area, area. Jan. 31, 1926, with Dec. 31, 1925 All reporting firms................................................................... + 5 .5 % - 1 .8 % - 4 .8 % + 5.1 “ + 6 .3 “ 0 .0 “ - 2 .5 “ 1 .3 “ 4 .9 “ - 3 .9 “ 3 .2 “ 5 .2 “ All apparel stores..................................................................... M en’s apparel stores............................................................... in Philadelphia..................................................................... outside Philadelphia........................................................... W om en’s apparel stores......................................................... in Philadelphia..................................................................... outside Philadelphia........................................................... + 7 .6 + 5 .7 + 9 .1 + 0 .7 + 6.1 + 5 .2 + 1 2 .4 + 4 .2 - 2 .5 + 5 .4 - 9 .0 + 1.9 + 5 .8 -1 7 .5 “ “ “ “ “ “ “ Credit stores.............................................................................. - Shoe stores................................................................................ + 13.7 “ millions. The reserve ratio on February 17 was 72.8 per cent as compared with 76.8 on January 20. C om m ercial Paper. The commercial paper market is quiet. Banks still want 4 y2 per cent paper, but little o f this is available, and the supply of paper gen erally is not large. Rates have eased slightly in the past month. Sales of five dealers increased from $7,492,500 in December, 1925, to $10,075.000 in January, 1926. This gain, however, does not equal that from $6,505.000 in December, 1924, to $12,159,000 in January, 1925. O f the sales in Jan uary, 1926, $4,012,500 was purchased by Philadelphia banks. The great bulk of the paper moved at 4% and 4 /?. per cent. Value of building permits -1 8 .8 % -8 1 .3 “ -4 0 .5 “ -1 3 .3 “ -2 2 .2 “ -6 5 .7 “ - 9 .7 “ -6 9 .2 “ -7 3 .9 “ -6 0 .0 “ + 6 2 .1 “ -8 3 .3 “ Electric power sales Debits Savings deposits Retail sales - 6 .6 % + 11.3 “ -1 5 .3 “ - 5 .7 “ - 2 .7 “ - 5 .8 “ - 9 .7 “ - 4 .4 “ - 9 .3 “ + 6 .5 “ - 6 .6 “ -1 6 .7 “ - 2 .8 “ + 0 .7 % + 0 .5 “ + 3 .2 “ -0 .5 “ + 3 .6 “ -1 .6 “ + 0 .3 “ + 1 .6 “ -1 .7 “ -0 .8 “ + 1.4 “ + 0 .8 “ - 0 .9 “ -4 7 .0 % -5 8 .3 “ -5 1 .9 “ -4 2 .5 “ -5 0 .2 “ -5 2 .3 “ -4 6 .8 “ -4 7 .5 “ -5 6 .8 “ -5 6 .7 “ —56.8 “ -5 2 .7 “ -5 1 .3 “ + 4 .3 % + 0 .5 “ * + 7 .5 “ + 3 .3 “ + 0 .5 “ + 2 .2 “ + 7 .6 “ + 4 .0 “ t + 6 .7 % + 2 .5 “ + 1.2 “ + 2 1 .0 “ + 17.5 “ + 2 2 .4 “ + 3 .2 “ + 9 .8 “ -2 4 .8 “ -1 7 .7 “ — 5 9 “ - 7 .7 “ + 6 .5 “ + 1 5 .6 % + 17.7 “ * + 4 8 .9 “ + 2 0 .0 “ + 13.8 “ + 5 0 .4 “ + 17.3 “ + 0.1 “ t + + 4 .0 “ + 14.1 “ -0 .5 “ + 5 .5 “ i January, 1926, compared with January, 1925 Philadelphia area. . . Trenton “ ... Wilmington “ . . . “ ... Reading “ . Lancaster “ York Harrisburg “ ... Allentown “ Wilkes-Barre “ “ Scranton Jan. 31, 1926, with Jan. 31, 1925 All department stores............................................................. in Philadelphia..................................................................... outside Philadelphia....................................................... '. . January, 1926, compared with December, 1925 E m p lo y Comparison of stocks + 2 1 .1 % -1 4 .8 “ + 8 0 .0 “ + 9 6 .0 “ -3 4 .1 “ -7 0 .5 “ -1 7 .4 “ -6 6 .5 “ -7 3 .3 “ -2 9 .7 “ -1 .3 “ -8 9 .6 “ + 5 .0 % + 14.6 “ + 2 4 .9 “ + 19.2 “ - 1.6 “ + 3 .9 “ - 1 .8 “ + 2 2 .4 “ -2 1 .2 “ -1 6 .9 “ + 0 .7 “ + 4 .0 “ -1 .3 “ + 7 .0 % + 5 .3 “ + 5 .6 “ + 9,1 “ + 12.2 “ + 5 .8 “ + 15.7 “ + 7.1 “ - 3 .8 “ + 1.9 “ + 1 3 .1 “ - 1 .3 “ + 7 .4 “ fincludes Wilkes-Barre and Williamsport areas, + flncluded in Allentown 4 .8 “ -1 4 .5 -1 6 .4 -1 9 .1 -1 2 .8 -1 4 .3 -1 3 .7 -1 7 .8 “ “ “ “ “ “ “ “ “ “ “ “ “ “ 6 .3 “ - 0 .2 “ + 1 0 .2 “ - 5 .7 “ - R E T A IL T R A D E Improvement in retail sales since Feb ruary 1 has been noted by nearly onehalf o f all retailers reporting to this bank, whereas the other half state that the volume of trade is slightly below that o f a year ago, owing chiefly to unfavorable weather conditions. In January, sales for this district as a whole increased 5.5 per cent over those for January, 1925; however, declines o f 5.9 per cent for Altoona, 7.7 per cent for Johnstown, 17.7 per cent for Scranton and 24.8 per cent for Wilkes-Barre are noted. The total sales of department stores, men’s and women’s apparel, and shoe stores throughout this district were larger in January than in the same month of last year, but credit stores registered a decline o f nearly 5 per cent. Increased sales are noted especially in silk and vel vets, linens, toilet articles and drugs, leather goods, men’s clothing and women’s dresses, misses’ ready-to-wear, furs, knit goods, millinery, gloves, hosiery, infants’ wear, draperies, lamps and shades, musical instruments and radios. Retail prices of staple commodities continue fairly steady. W H O LE SA LE TRADE During the past month business at wholesale in the Philadelphia reserve dis trict, as a whole, has been only fair. Current sales, particularly in paper, drugs, shoes and jewelry, compare favorably with those for February, 1925. Spot buying continues widespread, although some orders for shipment during the spring months are in evidence. Wholesale prices remain about the same as they were four weeks ago and collections are fairly satisfactory. W ith the exception of paper, wholesale trade in January declined considerably below that for December. Compared with January, 1925, sales of shoes and jewelry alone showed a slight gain. On January 31, stocks o f shoes, electrical supplies, hardware and jewelry were lower than Page Three those o f a year ago, but supplies of drygoods, groceries and paper were heavier. D rygood s. Although the current de mand for summer goods is moderately active, business in drygoods at wholesale generally lags somewhat behind the vol ume sold at this time last year. About fifty per cent o f present purchases call for delivery within the next thirty days; the other fifty per cent o f orders are for shipment in from one to two months. Except for slight advances in silk hosiery and declines in such cotton goods as sheetings, ginghams, underwear and hosiery, prices are unchanged from last month’s level. Sales in January were nearly 15 per cent below those in Janu ary, 1925, but stocks on hand at the end of January were about 10 per cent higher than those on January 31, 1925. Jew elry. During the last three weeks the demand for silverware, clocks and watches, brooches, rings and platinum goods has improved a trifle over that for the same period in the preceding month and compares favorably with that of a year ago. Except for slight advances in silverware and diamonds, prices continue unchanged from those that prevailed four weeks ago. Sales in January, though 72.2 per cent smaller than they were in December, exceeded those of January, 1925, by 7.5 per cent. Groceries. During the past four weeks price advances in wholesale groceries have outnumbered declines, although at pres ent average quotations are about the same as they were a year ago. The demand for all staple articles, though somewhat less active than it was thirty days ago, compares well with that for February, 1925, except in the anthracite region, which has suffered acutely from the re cent strike. It was probably due to this fact that total January sales for this dis trict dropped 13 per cent below the D e cember volume and were nearly 11 per cent lower than in January, 1925. Paper. Compared with the volume of four weeks ago and that o f February, 1925, trading in various grades of paper has increased materially. Book, fine, board, wrapping, kraft, tissue and crepe papers are among the best sellers at the present time. Similarly, an improvement is noted in the manufacture o f papers; the demand is considerably ahead o f that of a year ago, and paper plants are now working at close to 90 per cent o f capacity, which is slightly above the rates that prevailed thirty days ago and in the corresponding month last year. Stocks are moderate. Following a rise in January of 7 per cent above the December level and 10 per cent above that o f January, 1925, quotations for paper and pulp in the main now remain stable. Page Four WHOLESALE TRADE Philadelphia Federal Reserve District Net sales, Jan., 1926, com pared with Dec., 1925 Boots and shoes. . . . D ru gs......................... Dry good s.................. Elect, supplies.......... Groceries.................... Hardware................... Jewelry....................... Paper.......................... Accounts out standing, Jan., 1926, com pared with Stocks, Jan., 1926, com pared with Jan., 1925 - 8 .4 % - 5 .4 “ -1 5 .5 “ -4 1 .8 “ -1 3 .1 “ -2 4 .2 “ -7 2 .2 “ + 5 .7 “ + 0 .8 % - 0 .7 “ -1 4 .8 “ - 9 .0 “ -1 0 .7 “ - 4 .0 “ + 7 .5 “ - 4 .9 “ + 2 .2 % - 1.1 “ + 11.1 “ - 6 .6 “ - 0 .9 “ + 1 0 .8 “ + 5.1 “ + 2 .2 “ Dec., 1925 Jan., 1925 Dec., 1925 -2 8 .0 % + 9 .8 -2 4 .6 + 0 .4 - 6 .2 - 8 .1 + 0 .3 Electrical supplies. Since January 20 the distribution o f electrical supplies at wholesale has fallen somewhat below the volume for the same period last year. Prices remain about the same as they were four weeks ago, except for slight declines in such items as radios, armored cables, porcelain and rubber-covered wire. Sales in January were nearly 42 per cent smaller than in December and 9 per cent smaller than in January, 1925. Stocks also were smaller. Hardware. During the past four weeks sales o f hardware have declined consid erably below the volume for the month ended January 20. At present the de mand for seasonable goods and, to some extent, for spring merchandise, is fair, but hardware activity in general is not as satisfactory as it was at the same time last year. Prices are about the same as they were thirty days ago, although more items show advances than declines. Drugs. Since February 1 sales o f drugs have equalled those for the corre sponding period o f last year, and prices have remained about the same as they were thirty days ago, except for slight advances in spices and essential oils and small declines in denatured alcohol and a few other items. Trading in January was more than 5 per cent below the Decem ber volume, and stocks at the end of January were somewhat lower than at the same time a year ago. Ratio of accounts outstanding to sales “ “ “ “ “ “ Jan., 1925 Jan., 1926 Dec., 1925 Jan., 1925 -1 2 .4 % - 1 .7 “ - 7 .5 “ -1 4 .7 “ - 5 .2 “ - 8 .3 “ -4 1 .2 “ + 3 .2 “ + 1 0 .4 % + 9 .1 “ -1 .9 “ - 4 .8 “ - 7 .4 “ + 1 .0 “ + 7 .5 “ - 1 .8 “ 308 .0% 159.1 “ 309.7 “ 154.3 “ 125.2 “ 209.3 “ 508.6 “ 144.4 “ 3 3 2 .2 % 159.4 “ 282.9 “ 105.4 “ 113.0 “ 172.1 “ 240.4 “ 147.9 “. 2 8 3 .0 % 142.8 “ 269.1 “ 147.5 “ 115.0 “ 198.4 “ 508.5 “ 140.0 “ A U T O M O B IL E S Reports from 14 wholesale distributors o f automobiles in Philadelphia show a decided increase in the total number and value o f cars sold at wholesale during January, as compared with the previous month. Retail business reported by these distributors was slightly larger in num ber of cars, but smaller in dollar value, than in December. Used car sales, both in number and value, were smaller than in the previous month, as were retail sales on deferred payment. Stocks of all classes o f new cars showed a usual sea sonal increase and stocks o f used cars also were larger than in December, al though their value was less. AUTOMOBILE TRADE Philadelphia Federal Reserve District 14 distributors Jan., 1926, change from D ec., 1925 No. Value Sales, new cars, wholesale........ + 1 4 .4 % + 1 0 .7 % — 4 .9 " — 4 .6 a Cars $1,000 to $2,000............ + 5 5 .9 “ + 3 7 .0 “ - 1 0 . 8 “ - 7 .6 “ + 2 .4 + 8.1 Cars $1,000 to $2,000............ + 1 .7 -3 7 .8 “ “ “ “ - 3 .5 + 7 .7 + 1 6 .9 -2 8 .7 + 2 2 .4 + 19.0 Cars $1,000 to $2,000 ........... + 1 6 .0 + 4 5 .8 “ “ “ “ + 3 0 .7 “ + 2 2 .4 “ + 9 .0 “ + 5 3 .6 “ * “ “ “ —2 0.9 “ - 1 3 . 4 “ + 6 .6 “ - 3 .2 “ Retail sales, def. paym ent........ - 2 4 . 0 “ - 1 7 . 0 “ E L E C T R IC P O W E R Shoes. Trading in shoes in this dis trict since January 20 has exceeded slightly the volume for the corresponding month o f last year, but it has not come up to that for the preceding month. At present, the demand for standard, as well as for fancy grades o f shoes, is fairly active. Buying for quick shipment still features the market, although a number of orders are for delivery during March and April. Prices, as a rule, remain at about the same level as they were a month ago, but are a trifle higher than they were at the same time last year. Collec tions in the main are prompt. Stocks are a little heavier than they were a year ago. Both production o f electricity and sales to all classes of buyers showed sub stantial increases in January as compared with the same month o f the preceding year. The rated generator capacity of the 13 reporting systems, in January, 1926, was 13.5 per cent greater than a year previous, while output and total sales had increased 12.1 and 14.5 per cent, re spectively, during the same period. Janu ary operations, as compared with Decem ber, showed a slight decline in total gen erated output and several other items. Consumption o f electric power by indus tries was smaller in January than in December, owing to the slackening during inventory period, but as compared with the previous year, an increase o f 14.6 per cent in this item was reported. ELECTRIC POW ER Philadelphia Federal Reserve District Change from Dec., 1925* Rated generator ca p a city. . . . + 4 .7 % Change from Jan., 1925| + 12.1 - 1 .4 “ + 1 9 . 3 “ + 150.0 + 9 .2 - 1 .5 “ + 2 8 .7 - 1 .5 “ “ “ “ “ Sales of electricity.................... L ighting.................................. M unicipal........................... Residential and commercia l................................... P ow er...................................... M u nicip al......................... Street cars and railroads. Industries........................... All other sales....................... + 3 .3 “ + 1 2 .1 “ + 3 .3 “ + 1 4 .5 “ + 13.2 “ + 9 .5 “ + 1 3 .5 “ + 0 .4 “ - 2 .2 “ + 1 .7 “ - 1.1 “ - 5 .2 “ + 13.7 + 12.1 + 18.2 + 9 .3 + 14.6 + 4 6 .4 “ “ “ “ “ “ t 12 systems EM PLOYM ENT AND W AGES Factory operations and employment de creased slightly throughout Pennsylvania, New Jersey, and Delaware during Janu ary. Employment fell off 0.7 per cent and operations dropped 3.2 per cent. The textile and chemical groups were the only ones to show advances in either employ ment or wages. Inventory and annual repairs were chiefly responsible for the decreases, which in some cases, were very large because of the figures of one im portant plant in the industry. The industries showing the largest de creases were the iron and steel blast furnace, canning, cigar and tobacco, glass, printing and publishing, and novelty and jewelry industries. The last two dropped after the seasonal rush at Christmas time. Iron and steel forging plants, paint and varnish plants, leather product and boot and shoe factories were the only ones to show any notable advances in both em ployment and wages. Number of wage earners— week ended Jan. 15, 1926 Per cent change T otal weekly wages— week ended Jan. 15, 1926 Per cent change Jan. 15, 1926 Per cent change 1,236 431,840 - 0 .7 $11,281,875 3 .2 $26.13 - 2 .5 400 25 22 38 56 76 19 12 14 45 20 43 9 7 14 195,381 10,304 22,574 20,161 14,095 13,655 6,076 11,540 4,507 43,191 5,881 25,893 11,310 1.977 4,217 - 0 .7 - 0 .4 + 7 .6 - 3 .3 + 0 .3 - 0 .8 - 4 .3 -1 7 .2 + 1.4 + 1.5 + 0 .5 - 1.2 + 1-7 + 1.4 - 1.9 5,464,859 305,342 655,935 488,116 410,396 389,389 184,510 315,889 113,871 1,239,797 157,016 721,762 314,706 49,060 119,070 - 3 .3 - 1.9 + 3 .9 - 8 .5 - 1.1 - 3 .7 - 9 .6 -2 2 .6 + 3 .9 - 0 .9 - 4 .5 + 0 .2 - 3 .5 - 1.5 - 2 .0 27.97 29.63 29.06 24.21 29.12 28,52 30.37 27.37 25.27 28.70 26.70 27.87 27.83 24.82 28.24 + + - 2 .6 1.5 3 .4 5 .4 1.4 2 .9 5 .5 6 .5 2 .5 2 .4 5 .0 1.4 5.1 2 .9 0.1 Textile products: Carpets and rugs............................. C lothing............................................ Hats, felt and other........................ Cotton good s.................................... Silk goods............................... .......... W oolens and worsteds.................... Knit goods and hosiery.................. Dyeing and finishing textiles........ Miscellaneous textile products. . . 256 13 43 10 31 61 26 44 21 7 83,788 4,138 6,764 5,099 9,780 23,691 9,123 14,348 9,367 1,478 + + + + + 0 .4 0 0.1 0 .8 1.5 1.7 0 .5 2.1 5 .0 0 .7 1,833,201 114,267 123,602 124,132 210,486 455,115 197,221 337,086 239,708 31,584 - 4 .0 2 .3 1.3 4 .2 5 .9 4 .8 1.9 6 .3 1.5 0 .6 21.88 27.61 18.27 24.34 21.52 19.21 21.62 23.49 25.59 21.37 - 4 .4 2 .3 1.5 3 .4 4 .5 6 .5 1.3 4 .3 6 .2 1.3 Foods and toba cco: Bakeries............................................. Canneries.......................................... Confectionery and ice cream........ Slaughtering and meat packing . . Sugar refining................................... Cigars and to b a cco ......................... 136 39 7 26 16 4 44 32,133 4,459 3,334 5,768 2,915 3,405 12,252 + - 3 .7 2 .4 6 .3 1.6 0 .6 8 .2 8 .0 678,119 133,673 69,671 117,425 83,375 98,566 176,409 - 5 .2 - 1.2 - 8.1 - 2.1 - 1.7 - 0 .5 -1 1 .9 21.10 29.98 20.90 20.36 28.60 28.95 14.40 + - 1.5 1-1 1.9 0 .5 1.1 8 .0 4 .2 Building materials: Brick, tile, terra cotta products . . Cement.............................................. Glass.................................................. P ottery.............................................. 97 39 15 28 15 28,117 5,476 8,106 9,629 4,906 + + - 0 .9 1.5 2 .6 5.1 0 .5 788,180 136,749 235,447 258,017 157,967 - 5 .7 - 1.0 - 4 .6 -1 1 .3 - 1.3 28.03 24.97 29.05 26.80 32.20 - 4 .9 2 .5 7 .0 6 .5 0 .8 Chemicals and allied products: Chemicals and drugs...................... Explosives......................................... Paints and varnishes...................... Petroleum refining.......................... C ok e................................................... 85 45 12 17 8 3 33,694 8,360 3,447 1,747 19,024 1,116 + + + 0.1 0 .2 3.1 7 .8 0 .0 2.1 1,030,790 224,726 88,237 46,732 638,593 32,502 + + + - 3.1 2 .6 7 .0 7 .0 6 .8 1.2 30.59 26.88 25.60 26.75 33.57 29.12 + + - 3 .0 2 .4 4.1 0 .8 6 .8 3 .3 Miscellaneous industries: Lumber and planing mill products 262 32 27 7 35 12 29 28 50 17 12 13 58,727 4,823 3,573 8,666 9,363 2,256 5,017 6,670 4,924 5,333 3,643 4,459 + + + -1 - 1.0 1.8 3 .0 2 .0 2 .8 3 .0 1.0 .1 6 .0 0 .7 3 .9 0 .8 1,486,726 99,049 87,522 237,207 231,570 50,492 99,071 166,347 156,410 153,775 87,616 117,667 - 3 .5 - 2 .4 - 5 .6 - 8 .9 - 1.4 + 14.2 + 5 .5 - 1.6 -1 2 .4 - 2 .0 - 5 .8 + 2.1 25.32 20.54 24.50 27.37 24.73 22.38 19.75 24.94 31.76 28.83 24.05 26.39 - 2 .5 - 0 .6 - 2 .7 - 7.1 - 4.1 + 1 0 .8 + 4 .5 - 0 .6 - 6 .8 - 1.3 - 2 .0 + 2 .9 Musical instruments....................... Leather tanning............................... Leather products............................. Boots and shoes............................... Paper and p u lp p r o d u c t s .................. Printing and publishing................. Rubber tires and good s.................. Novelties and jew elry.................... All other industries......................... - Average weekly earnings— week ended M etal manufactures: Automobiles, bodies, and p a rts... Car construction and repair.......... Elec, machinery and apparatus . . Engines, machines, mach. tools . . Foundries and machine s h o p s.. .. Heating appl. and apparatus........ Iron and steel blast furnaces........ Iron and steel forgings................... Steel works and rolling m ills........ Structural iron w orks..................... Misc. iron and steel products. . . . Shipbuilding..................................... Hardware.......................................... Non-ferrous m etals......................... All industries (49) + 1 3.5 % Generated ou tp u t..................... H ydro-electric....................... Steam ...................................... Purchased............................... * 13 systems, EM PLOYM EN T AND WAGES In Pennsylvania, New Jersey and Delaware No. of plants report ing F U R N IT U R E B U IL D IN G Since January 20 sales of furniture in the Philadelphia reserve district have increased considerably over the volume o f the preceding month and of a year ago. Buying, however, is still confined to prompt deliveries, although bookings calling for shipment in May and June are reported by some manufacturers. Compared with last month, unfilled orders are somewhat larger and will enable pro ducers to utilize their machinery at the present rate o f about 80 per cent of capacity for from forty days to two months. Stocks are moderate. Prices o f finished products remain firm and un changed from those o f thirty days ago, but quotations for raw commodities, par ticularly lumber and hardware, are said to show an upward tendency. Collections are not wholly satisfactory. Building activity in the Philadelphia Federal Reserve District has seasonally slackened during the past six weeks. The number o f permits issued in January in sixteen cities declined to 1,291 from 1,665 in December but compared with 1,207 in January, 1925. The estimated cost of operations, $10,635,388, was 27 per cent below the December expenditure but was nearly 15 per cent above that of a year ago. Construction of residential build ings, as measured by contracts awarded in January, increased 6.5 per cent over that in December and was 23 per cent higher than in January, 1925. In other classes o f buildings January contract awards decreased 15 per cent, but were 11 per cent higher than those of a year ago. Prices of building materials are firm at levels unchanged from those of thirty days ago. Compared with a year ago, quotations are about the same, except for an advance in prices of red cedar, spruce laths and commercial bricks. Bricks. Since January 15 the demand for bricks, fluxes and refractories has im proved considerably and now compares favorably with that of a year ago. Sev eral producers report that recently there has been a marked tendency toward buy ing further into the future, although the bulk o f current orders still call for quick delivery. A number of plants are now shut down, chiefly for the purpose of repairing machinery; the majority of pro ducers, however, are working at about 80 per cent o f capacity. Unfilled orders are sufficient to maintain operations at this rate for over 70 days. In January, Page Five employment in plants making brick, tile and terra cotta products gained 1.7 per cent, and wage payments increased 0.5 per cent over the preceding month. Stocks o f finished products, though somewhat larger than they were four weeks ago, are moderate. Prices have remained fairly stable dur ing the past thirty days, except for cer tain grades of face and common bricks. At $17.50 per thousand, quotations for commercial bricks are considered nomi nal ; they compare with $15.00 per thou sand on January 22, and $14.00 a year ago. Fluxes and refractories are firm at prices unchanged from last month’s levels, but they are somewhat below quotations that prevailed in February, 1925. Plumbing. Dealers in plumbing sup plies state that the call for their products has fallen off slightly, but sales by manu facturing plants, particularly since Feb ruary 1, have increased over both last month’s and last year’s volume. Spot buy ing continues widespread and future com mitments are not numerous. With the ex ception of slight advances in brass and cast iron soil pipes and declines in malle able fittings, boilers and radiators, prices remain as steady as they were four weeks ago. Production is maintained at about 80 per cent of capacity in most mills, although the average rate for this dis trict is 75 per cent. The volume of un filled orders is a trifle larger than it was thirty days ago, and stocks generally are moderate. Lumber. The market for softwood and hardwood lumber in this district com pares favorably with the volume of four weeks ago and that for the corresponding month of last year in spite of the recent unseasonable weather and a decline in building activity. Forward buying, how ever, continues limited, prompt shipments featuring most of the present orders. Plant operations average 75 per cent of capacity and unfilled orders will insure the continuance of this activity for nearly two months. Stocks remain moderate and are decreasing. Since January 22, quotations for North Carolina pine have advanced from $4.25 to $5.25 and for western hemlock 50 cents per thousand feet, whereas prices of white oak, poplar, ash and basswood have declined. Other grades o f lumber are selling at about the same prices as they were thirty days ago. Compared with last year’s level, how ever, lumber quotations generally are lower, although various grades of pine, poplar, plain white oak and red gum are higher. Collections are fairly prompt. Paint. Activity in the paint industry, though still unsatisfactory, shows a slight improvement over that of four weeks ago, but is not as brisk as it was at the same time last year. Buying for immediate requirements continues to predominate. Mainly because of the dearth of advance orders, the present rate of plant opera Page Six tions, at about 70 per cent, is somewhat below that of thirty days ago, but it com pares favorably with last year’s schedule. Stocks are not excessive. Except for a slight decline in such ma terials as linseed oil, shellac and certain dry colors and an advance in turpentine, prices have remained stable since January 22, but, compared with last year’s quota tions, prices of such items as ochre, ver milion, and foreign zinc are a trifle higher and litharge, red and white leads, and domestic zinc are a bit lower. Collec tions are only fair. are still below domestic prices, although lately they are said to have been stiffen ing somewhat. The output o f iron and steel in this district varies from 45 to 100 per cent of capacity, but operations at most plants range from 75 to 100 per cent. January production of pig iron in this district in creased more than 4 per cent over the December output, compared with an in crease of 2 per cent for the entire coun try. The output in this district, 322,667 tons, was the largest since last April. Steel ingot production in the United States during the same period also rose about 4 per cent and in January was the largest since last March. Unfilled orders of the Steel Corporation in January de clined nearly 3 per cent, whereas in Janu ary of the three preceding years a gain was registered. With a few exceptions, supplies of raw materials and finished products in the Philadelphia district are not excessive. Production and unfilled tonnage in the country as a whole are shown below. Slate. The demand for structural slate and blackboards is active, but the mar ket for roofing slate continues quiet, ow ing partly to lessened demand from builders and partly to unfavorable weather conditions which make working and shipping difficult. Operations of most quarries average about 80 per cent of capacity, which is 5 per cent above last year’s rate. In anticipation of spring and summer requirements, slate pro ducers are increasing their stocks, and supplies are somewhat heavier than they were last month. Prices are firm at levels unchanged from those o f four weeks ago, and collections are fairly prompt. Production in the U. S. Pig iron ........................ IR O N A N D S T E E L Unfilled orders— U. S. Steel C orp......... The market for iron and steel prod ucts in the Philadelphia reserve district in the main is only fairly satisfactory. Compared with four weeks ago, the de mand for iron and steel castings, ma chinery and tools, track supplies, wire and w ire rods has improved somewhat, but the call for light and heavy hardware and iron and steel scrap has declined. Activity in pig iron is only moderate. Contracting for the second quarter is progressing slowly, although furnaces generally have sufficient orders on hand to insure operations at the present rate of 75 per cent of capacity up to May 1. The steel market as a whole is not up to expectations; buying is limited to small lots for quick delivery. The demand for fabricated structural steel, as measured by total contract awards in the past four weeks, has fallen below last month’s vol ume. Trading in iron and steel scrap at present is quiet, and prices of heavy steel scrap have declined since January 19 about $1 a ton. Owing mainly to re cessions in sheets, the average quotations for finished steel, as indicated by the “ Iron A ge” index, dropped to 2.424 cents a pound on February 23 from 2.439 cents thirty days ago and 2.546 cents a year ago Average prices o f pig iron, after hold ing steady at $21.54 a ton since Decem ber 1, 1925, also declined to $21.46 a ton on February 23. Last year on the same date the composite pig iron prices stood at $22.50 a ton. Quotations for foreign pig iron, a considerable quantity o f which has been imported here in the last month, In gross tons Jan. 1926, Dec., 1925 3,316,201 4,1 5 3,54 5 3 ,2 5 0,44 8 3 ,9 7 5,82 4 4,882,739 5,033,364 Iron foundries. Operations at thirty representative iron foundries in this dis trict continue somewhat less active than they were four weeks ago and at the same time last year. In January, how ever, the output of malleable iron castings was more than 3 per cent higher than in December, but 9 per cent lower than in January, 1925. January unfilled orders were greater than both in December and January last year. Raw stocks, on the other hand, decreased. Iron foundry operations January Change from Dec., 1925 0 C apacity............... 10,234 tons P roduction........... 4,126 “ - 6 .9 % 521 “ + 3 .2 “ Malleable iron. - 8 .2 “ Gray iro n ......... 3,605 “ 2,787 “ - 9 .5 “ Jobbing........ F o r fu r th e r 818 “ - 3 .3 “ m fr............ - 8 .2 “ Shipments............ 3,653 “ - 9 .7 “ Value................. $490,127 Unfilled orders. . . 3,527 tons + 4 . 3 “ + 2.1 “ Value................. $529,170 Raw stock: Pig iro n ............ 5,401 tons - 0 . 2 “ - 3.1 “ Scrap................. 2,854 “ -4 1 .2 “ C o k e .................. 1,235 “ Change from Jan., 1925 - 0 2 .3 % 9 .2 “ 1 .3 “ 3 .0 “ + 5 .0 + 6 .4 + 6 .8 + 1 7 .5 + 19.5 “ “ “ “ “ -1 1 .8 “ - 4 .9 “ -3 3 .4 “ Steel foundries. Compared with last month and a year ago, operations in steel foundries during January slackened a lit tle, but unfilled orders showed a slight increase, as in indicated in the following table: Change from Dec., 1925* Change from Dec., 1924f C apacity............... 11,940 tons 0 P roduction........... 6,293 “ - 3 .0 % 5,158 “ - 0 .8 “ Shipments............ Value................. $797,405 - 1 .2 “ Unfilled orders!. . 6,601 tons + 1 . 0 “ Value t .......... $1,023,795 + S .l “ Raw stock" Pig iron............ 1,864 tons + 0 . 8 “ Scrap................. 9,995 “ -1 4 .5 “ C ok e.................. 1,078 “ -3 7 .5 “ 0 - 5 .9 % -1 4 .1 “ -1 7 .5 “ + 3 2 .6 “ + 4 2 .6 “ Steel foundry operations * 10 plants, omitted. January f 5 plants, -4 9 .9 “ -1 6 .2 “ -2 5 .9 “ t Figures of one plant COAL Following the five-year agreement reached on February 12 by the operators and miners, thereby ending the longest and costliest suspension in the history of the hard coal industry, mining operations were resumed on February 18. Chiefly as a result o f this settlement, prices of such household substitutes for anthracite coal as coke and soft coal broke sharply. Connellsville furnace coke for prompt shipment dropped to $3.75 a ton at the oven from its peak o f $10.50 on February 9 and $9.00 on January 19.- Foundry coke also declined from its high point o f $11.50 a ton on February 9 to $4.75 on February 19. Quotations for prepared sizes o f soft coal also have fallen off about 40 cents a ton and mine run 22 cents a ton since February 12. Prior to that date the demand for bituminous coal was growing stronger, but since the termina tion of the strike is has naturally slack ened. The call from industrial consumers, however, continues at a steady rate, and production during the month ended Feb ruary 13 was maintained close to capacity. The total weekly output of soft coal in the United States was as fo llo w s: In thousands of net tons Per cent of change Week ended 1926 Jan. 2 3 ........... Jan. 3 0 ........... Feb. 6 ........... Feb. 1 3 ........... 11,588 11,073 10,910 9,756 American cotton* (thousands of bales) Season Season Season ’2 5 -’26 ’2 4 -’25 ’2 3 -’24 Visible supply at end of previous season (July 3 1 ).................................. 1,125 Crop in sight on Feb. 19 13,937 T o ta l......................... 15,062 Visible supply on Feb. 19 5,054 W orld’s takings to Feb. 19.................................... 10,007 952 12,656 870 9,696 13,578 4,478 10,566 2,887 9,130 7,679 * Compiled b y the New York Cotton Exchange. Wool. Although the demand does not compare favorably with that o f last year, trading in woolen and worsted yarns and fabrics has improved materially. At pres ent the call for men’s fall wear is much better than that for dress goods, though buying of both continues restricted chiefly to immediate requirement. Since Janu ary 29 prices o f raw materials and fin ished goods have remained unchanged, ex cept for a slight drop in tops and worsted yarns. Compared with last year’s prices, 1925 12,431 12,563 12,134 12,008 sufficient to insure plant operations at the present rate of 70 per cent of capacity up to the middle of April. Supplies of yarns and fabrics are not heavy, and collections as a rule are fairly prompt. Cotton prices have fluctuated during the past thirty days within a compara tively narrow range, spot cotton selling at 20.35 cents a pound on February 24, as compared with 21 cents a pound on Janu ary 23 and 24.80 cents on February 24, 1925. Consumption o f cotton in the United States during January totaled 639,657 bales, linters included, compared with 630,972 bales in December and 645,147 bales in January, 1925. Stocks at mills and warehouses on January 31 were 31 per cent greater than last year. At 592,414 bales for the month ended February 19, cotton exports declined more than 28 per cent below last year’s volume. The position of American cotton is indi cated in the table below. + 7.3 + 13.5 + 11.2 + 2 3 .0 Source: U. S. Geological Survey. T E X T IL E S Cotton. Sales of cotton yarns at prices a trifle higher than they were at the end o f January, but about 10 per cent below last year's level, have increased consid erably over the volume of four weeks ago. The demand for cotton goods also has been somewhat more active recently than was the case in the month ended January 23, but quotations have dropped slightly and are nearly 10 per cent lower than they were in February, 1925. Cur rent buying o f cotton manufactures is limited chiefly to prompt deliveries, and the amount of unfilled orders is hardly Since the last quarter of 1924 textile activity in the Philadelphia reserve district, as measured by wage payments, has been considerably ahead of that for the United States as a whole. Actual wage rates have remained prac tically unchanged since 1923. Sources— Federal Reserve Board, Federal R e serve Bank o f Philadelphia however, average quotations for various yarns are 22 per cent lower, woolen goods from 12 to 15 per cent lower and worsted fabrics 10 per cent lower. This decline reflects price trends in raw wools, which are now 22 per cent in domestic and 27 per cent in foreign grades below last year’s level. Local dealers state that trad ing in raw wool is only moderate, and contracting for the new clip thus far does not exceed 10 per cent, as compared with 50 per cent under contract at this time last year. The outlook for increased wool production in the United States is favorable. Last January the number o f sheep was 3.4 per cent greater than in the same month of 1925. Mainly because of improved breeding, the average weight per fleece rose from 6.8 pounds in 1914 to 7.3 pounds in 1925. The rate of production of wool manu facturers in this district, at from 70 to 80 per cent o f capacity, is nearly 10 per cent higher than it was thirty days ago. Con sumption o f wool in January declined 6.3 per cent below the December volume, and in the country as a whole, the decrease was 7.9 per cent. Imports into the United States increased from 23,175,718 pounds in December to 45,102,104 pounds in Janu ary. W ool stocks in the United States on December 31 totaled 346,678,427 pounds, as compared with 373,009,908 pounds on September 30, 1925, a decrease o f 7 per cent. Silk. Compared with four weeks ago and with the same period last year, the demand for silk goods, notably taffetas, pongees and crepe satin, has improved considerably. Similarly, sales of thrown silk show a pronounced gain, after a few weeks of quiet following the holiday sea son. Both throwsters and makers of silk fabrics report that recently there has been a stronger tendency toward buying for future delivery than for some time past. Silk plants in the Philadelphia reserve district at present have a sufficient amount of business to assure their operation at the present rate o f 95 per cent of capacity for about two months. Stocks continue fairly light. Prices o f thrown silk re main firm, and quotations for silk goods show an upward trend. Fairchild’s index of average prices, which stood at 131.35 on January 1 and at 123.03 on February 1, 1925, rose to 132.35 on February 1, 1926, the highest point since February 1, 1924. This has followed advanced quotations for raw silks, which are now more than 2 per cent higher than they were a year ago. Kansai double-extra cracks, which sold at $7.05 a pound on January 23 and $6.85 on February 24, 1925, were quoted at $7 a pound on February 23, 1926. Takings of raw silk by American mills in January last were the second largest in the last five years. The table on page 8 gives the record of silk movement. Page Seven Raw silk* (in bales) Jan., 1926 Dec., 1925 Jan., 1925 Im ports....................... S tocks.......................... M ill takings............... 43,650 47,326 46,148 45,495 49,824 42,484 37,084 58,732 39,885 * Silk Association of America. Hosiery. Manufacturers of women’s full-fashioned silk hosiery still find a good demand for their products and their mills are working at, or close to, capacity. A few scattered returns from those mak ing other varieties o f hosiery also indi cate satisfactory business, but the ma jority o f reports from producers of seam less products classify demand as either fair or poor and their operations vary widely, though the average is close to 70 per cent of capacity. Chiffons and fancies are much wanted. Prices of hosiery have changed little in the past month and stocks of finished goods are moderate. Orders are largely for delivery within the next sixty days. Collections are fairly good. Floor coverings. Reports received from carpet and rug manufacturers are diverse. The majority are receiving a fair volume of orders and a few find business good but, on the other hand, a number report it to be unsatisfactory. Compared with last month, more reports of increases than decreases in demand have been received. Stocks of finished goods are moderate and about the same as they were a month ago. Plant opera tions have changed little since last month, but show such divergent rates as 10 per cent of capacity in one instance and over time in another. Unfilled orders will per mit the maintenance o f operations at present rates for about six weeks on the average. Prices are unchanged. R U B B ER The market for rubber tires and me chanical rubber goods continues seasonally quiet, although the current demand is said to be a little more active than it was at the same time last year. Most o f the present orders call for quick ship ment, but the volume of unfilled orders exceeds that of last month and o f a year ago. The present rate of output, at about 80 per cent of capacity, is 5 per cent higher than it was in February, 1925. Productive activity in reclaimed rubbers is especially brisk, owing mainly to the strong demand for rubber products at lower prices. Supplies o f finished goods, though increasing, are not excessive, and stocks o f raw materials are moderate. In spite of numerous concessions, notably in tires, which recently have fallen about 10 per cent below last month’s levels, prices o f finished goods remain fairly stable, whereas quotations for crude rub ber anu cotton fabric show a downward trend. Plantation rubber, first latex Page Eight crepe, sold on February 23 at 61 cents a pound as compared with $1.11 a pound reached in December 1925, which was the highest since January, 1913. Imports o f crude rubber into the United States rose from 735,980,070 pounds in 1924 to 888,478,385 pounds in 1925. Consumption of crude rubber by 75 per cent of the American tire industry, including casings, tubes, solid and cushion tires, totaled 552,389,272 pounds in 1925, compared with 453,845,546 pounds in 1924; mill takings of cotton fabrics also rose from 142,415,356 pounds in 1924 to 168,295,927 pounds in 1925. Kid leather is popular and the lighter colors remain the center o f interest as this leather is much in demand for shoes for the Easter trade. Manu facturers o f black kid are meeting with only a fair demand, and prices are about the same as last month. Sole leather is selling in fair volume at unchanged prices. Stocks o f leather are compared below : Dec. 31, 1925, com pared with Stocks of leather M onth ago Sole (c a t t le ).................... Belting butts and butt bends ............................ Offal, sole and belting. . Upper leather (cattle and kip side)........ ................ Calf and kip (except kip side upper)................... Goat and k id ................... C abretta........................... Sheep and la m b .............. -4 .6 % Year ago - -0 .4 “ -8 .1 “ 2 .7 % -1 5 .6 “ -4 3 .3 “ -0 .5 “ - + 5 .9 + 0 .9 + 1 .5 + 3 .3 - 1 .0 - 1 .0 -1 5 .2 - 7 .9 “ “ “ “ 5 .5 “ “ “ “ * Source: Department of Commerce. Production of tires and the number of auto mobiles registered have increased m ate rially since 1920. Owing largely to in creased durability of tires, effected through technical improvements and betterment of highways, the n u m ber of tires per car fell from the high point of 3.8 in 1922 to 3.2 in 1925, a drop of more than 15 per cent. Source— National Autom obile Chamber Com m erce, Departm ent o f Com m erce of L E A T H E R A N D SH O E S Weakness has prevailed in the hide markets over much of the past month. This is the season of poorer quality, but the declines in prices appear to be larger than a falling off in quality would war rant. More recently, however, there has been a tendency toward firmness in packer hides. The demand for goat skins suitable for colors, according to some reports, is not quite as strong as it was last month, and a decline also is noted in the demand for skins adapted to the manufacture o f black kid. Percentage changes in stock of hides and skins on hand or in transit on December 31, 1925, in comparison with a month and a year before, are given in the table: Shoe manufacturers report a fairly good demand and in quite a number o f cases find it to be better than it was a month ago. Operations have been increased at many o f the factories and unfilled orders on hand are somewhat smaller than they were a month ago, but they are sufficient to permit the continuance o f present operations' for from one month to six weeks on the average. Stocks o f shoes are not heavy and in most cases are said to be about the same or smaller than they were last month. Prices are unchanged. Preliminary reports from the Bureau o f the Census show that the production o f shoes in the Third District during January was 10 per cent larger than in December. Details for factories in this district are given below. Boots and shoes, to ta l................. High and low cut (leather) total Jan., 1926 Per cent change from Dec., 1925 1,317 1,191 107 159 215 420 290 + 1 0 .0 + 5 .5 + 7 .2 - 0.1 + 1 6 .1 + 1.1 + 7 .9 127 PRODUCTION OF SH OES* Philadelphia Federal Reserve District (in thousands of pairs) + 8 1 .5 All other leather or part leather * Preliminary report— Bureau of the Census. Stocks of hides and skins Dec. 31, 1925, com pared with Month ago Year ago + 4 .9 % - 3 .4 “ -1 3 .6 “ -1 0 .4 “ - 7 .3 % + 3 6 .3 “ + 19.9 “ + 10.1 “ Source: Department of Commerce. The leather markets have been more stable than the hide and skin markets. CIGARS The demand for cigars, though fair, is somewhat less active than it was four weeks ago and at the same time last year. The present rate of output, which is about 80 per cent of capacity, is slightly above the January schedule, but unfilled orders remain about the same as they were thirty days ago. With a few ex ceptions, supplies are not burdensome. Prices are fairly stable, and collections in the main are fair.
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