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B U S I N E S S AND F I N A N C I A L
CONDITIONS
IN THE
THIRD FEDERAL
PHILADELPHIA
RESERVE DISTRICT
M AY
1, 19 2 1
By RICHARD L. AUSTIN, Federal Reserve Agent and Chairman
FEDERAL RESERVE BANK of PHILADELPHIA
G ENE RAL SUMMARY
satisfactory answers have as yet been advanced.
A survey of industrial conditions during the
Acceptances, bankers’ .................
.... 5
first three weeks of April reveals the futility, when
Agriculture..................................
.... 7
generalizing
on the entire situation, of attempting
Automobiles................................
. . . . 12
Carpets and rugs.........................
. . . . 16
to answer them either affirmatively or negatively.
Cement........................................
. . . . 21
The conditions in no two industries are identical.
Coal, anthracite...........................
Coal, bituminous.........................
The silk industry is receiving a large volume of
Commercial paper.......................
6
orders, whereas the iron and steel industry dis
Cotton.........................................
14
Cotton goods...............................
13
plays continued weakness. Between these two
Cotton yarns...............................
13
industries as the limits, all other lines show
j^ebits to individual account.......
5
Employment................................
either improvement or decreased activity, varying
2
Federal Reserve banks, condition .
4
in degree.
financial conditions.................... .
4
General summary.........................
Shoe factories are producing at a rate consider
1
Groceries, wholesale.................... .
26
ably
in excess of January, and a hopeful sign is to
Hardware, wholesale................... .
21
Hosiery.
be found in the increased interest in staples,
16
Iron and steel.........................
9
which were neglected a month ago. The demand
Cumber..................................
21
Member banks, condition
for specialties continues active.
4
Eaints....................
23
The woolen and worsted manufacturing in
Paper.......
24
Paper boxes.............................
dustry has shown marked improvement. The
24
Pottery.............
25
business in spring goods was unexpectedly heavy
Peal estate...............................
18
Petail trade........... ! . ! . ! ! ! ! ! !
and the interest shown in these has partially
6
havings deposits......................
4
carried over to fall lines, of which a fair volume
hhoes.........
23
Silk goods................................
of orders has been booked. The market for cotton
15
ynopsis of business situation,
3
goods, apart from a decided interest in ginghams
lobacco. .
26
Wool...........
and a few other lines, shows little sign of better
14
Wool, goods.............................
14
ment.
Wool, yarns....................
15
Coal production, both anthracite and bitumi
nous, has fallen off due to the lack of demand.
AS the liquidation process been completed ? Domestic buyers have been inactive, principally
Is business now at the turning point, pre- because of the curtailment in iron and steel pro
Tu
pared for a return to normal activity? duction and the decrease in railroad traffic. The
nese are the pertinent questions which are Car Service Division of the American Railway
eing asked con stan tly and for which no Association reports that during the week ending
TABLE OF CONTENTS
H
PAGE
NUMBER
2
BUSINESS
April 8 there were 507,427 idle cars, which is 21
per cent of the country’s total number. This sets
a new record and is an increase of 210,000 idle
cars over the beginning of the year. 261,294 coal
cars were included in the total number of idle cars.
The coal strike in Great Britain has resulted in
numerous inquiries for American coal. Should
this strike continue for any length of time, the
foreign demand may serve to offset in part the
decreased consumption in the United States.
Retail trade continues fairly active, but shows
definite signs of retardation. Reports from de
partment stores in this district for the month of
March showed sales only 1.8 per cent in excess
of March, 1920, and stocks of goods 19.0 per cent
less. As compared to February, 1921, stocks in
creased 5.9 per cent. Retail prices are lower than
a year ago, but the sale of an increased number
of units accounts for the present volume. Con
sumers continue to demand merchandise of good
quality and are intolerant of attempts to sub
stitute cheaper grades. A t the same time, how
ever, they are not displaying the extravagance
which characterized the war period and the latter
part of 1920.
Dun’s and Bradstreet’s index numbers of com
modity prices declined 4.2 per cent during March.
Dun’s index decreased 2.1 per cent in February
and it would appear that a quickening in the rate
CONDITIONS
of price decline has occurred. An analysis of the
index shows that, from the viewpoint of manu
facturers, this fact is not as significant as would
appear. The drop in March reflects principally
large declines in the prices of food materials such
as grains, flour, dairy and garden products. The
clothing group, in which Dun’s include textile
raw materials and finished products, and hides
and leather, decreased only 2.3 per cent in March,
as compared to 7.8 per cent in February and 6
per cent in January. The metals group declined
1.2 per cent in March, 3.8 per cent in February
and 7.3 per cent in January. In these two groups,
therefore, prices were not dropping as rapidly as
theretofore.
Early in April a questionnaire was sent to firms
throughout the district asking for information on
employment, payrolls and wage reductions. Re
plies were received from 447 firms which employed
in all 140,101 workers on April 1, 1920. On April
1, 1921, they had only 107,625 employees, a
decrease of 23 per cent. This does not fully
measure the extent of unemployment, however,
as a large number of those employed at the latter
date were working part time. The payroll of
these concerns for the week nearest to April 1,
1920, was $4,069,574, and for the week nearest to
April 1, 1921, was $2,675,494, a decrease of 34
per cent. This decline in payroll is accounted for
EMPLOYMENT AND WAGES
la the Third Federal Reserve District
April 1, 1921 compared to April 1, 1920
Number of
concerns
reporting
Iron and steel.............................
Textiles......................................
Building materials......................
Leather and leather products... .
Printing and publishing.............
Paper and paper products.........
Tobacco and tobacco products. .
Public utilities............................
Chemicals...................................
Rubber.......................................
Coal...........................................
Confectionery.............................
Furniture....................................
Hats...........................................
Fertilizer....................................
Wooden boxes............................
Totals...................................
N um ber of em ployees
Apr. 1, 1920 Apr. 1, 1921
Percentage
changes
A m o u n t o f p a y -r o ll
Apr. 1, 1920 Apr. 1, 1921
Percentage
changes
96
84
59
45
21
18
20
36
8
9
5
9
20
7
6
4
58,531
22,288
7,311
11,194
6,329
3,833
5,380
10,576
1,493
3,109
1,420
4,350
2,989
378
616
304
39,558
18,542
5,119
7,818
5,401
3,229
6,327
10,708
1,204
2,192
1,156
3,397
2,009
268
505
192
-3 2 %
-17
-3 0
-3 0
-15
-15
+ 18
+ 1
-19
-2 9
-18
-2 2
-3 3
-2 9
-18
-3 7
31,798,999
570,486
218,248
300,999
179,705
127,188
102,716
383,284
34,936
91,327
53,606
97,832
78,572
8,533
17,574
7,569
3924,581
444,992
129,536
186,285
150,776
97,622
86,548
370,851
26,695
54,566
50,230
83,473
48,404
5,502
11,543
3,890
-4 9 %
-2 2
-4 1
-38
-16
-2 3
-15
- 3
-2 3
-4 0
- 6
-14
-3 7
-3 5
-3 4
-4 8
447
140,101
107,625
-2 3 %
34,069,574
32,675,494
-3 4 %
BUSINESS
CONDITIONS
by reduced wages and part-time work, as well as
the decreased number of employees. It appears
that 44 per cent of the firms made reductions in
the wages of unskilled workers, 41 per cent in
3
skilled workers, and 11 per cent in office workers.
There is given on page 2 a table showing the
number of employees and the amount of the pay
rolls, divided by industries:
SYNOPSIS OF BUSINESS SITUATION
Compiled as of April 21, 1921
B usiness
Philadelphia Federal Reserve District
P rices
Demand
R aw material or
MERCHANDISE SITUATION
Collections Finished stocks
Automobiles.......... Good
No change
Easily obtainable—cheaper Good
Cement..
Good
Holding steady
Easily obtainable—cheaper Good
Hardware
Improved
Downward
Adequate in most lines
Fair
Lumber.
Improved
Downward
Ample
Good
Paint..
Excellent
Downward
Ample—prices lower
Good
Coal, Anthracite.. . Fair—declining
Lower
Fair
Coal, Bituminous. . Negligible
No change
Slow
Carpets and rugs... Slight
Lower
Ample
Cotton goods......... Fair—“ spotty”
Lower
Ample
Fair to good Low
Cotton yarns
Slight improvement
No change
Ample
Fair to good Heavy
Groceries........
Improved
Lower
Easily obtainable—cheaper Fair to good Adequate
Iron and steel....... Declining—poor
Lower
Easily obtainable—cheaper Fair
Paper..
Lower
Easily obtainable—cheaper Fair
Low
Lower
Easily obtainable—cheaper Fair
None
Ample
Heavy
Limited
Paper boxes........... Improved slightly
Heavy
Pottery
Elec, products—negligible Lower
Tableware—fair
Shoes..
Good
Firm
Silk..
Very good
Ample in general
Firm to slight advances Shortage in certain numbers Good
Iobacco.
Low-grade le a fplentiful, cheap
Good for cheaper products Cheap products—lower
None for more expensive Better products—firm High-grade leaf—
scarce, high
Variable
Ample in general
Fair
Scarcity in certain colored
leathers
Fair
Heavy in staples
Very low in spe
cialties
Very low
More than ade
quate
Ample
Fair to good Adequate
Adequate
Fair to good None
Hosiery—Seamless Silk lines—good
Cotton—“ spotty ”
Full fashioned ... Very good
Some increase
Firm at low levels
Firm
Underwear—
Light weight....... Very good
Heavy weight__ Poor
Firm to slight increase Adequate
Firm
Adequate
Fair
Fair
Wool cloth
Good
Firm
Abundant
Fair to good Very low
Wool yarns........
Fair
Abundant
Fair
Wool, raw
Fluctuating
Low
Good
None
Adequate
4
BUSINESS
CONDITIONS
The April 15 estimates of the local offices of
the Pennsylvania Bureau of Employment indi
cated that unemployment was still on the in
crease. It will be seen in the table below,
however, that two of the five cities showed a
decrease in the latest period under consideration:
cent below the peak. The loans of the system as
a whole did not reach their high point until
November 5, 1920— $2,826,825,000, and are now
25 per cent below that amount.
M
Feb. 15
Mar. 15
Mar. 31
April 15
Philadelphia.........
Altoona................
Harrisburg...........
Johnstown............
Scranton..............
80,000
19,625
20,360
7,700
13,100
83,000
23,350
20,735
7,260
12,770
91,000
27,975
20,200
9,830
18,580
101,000
27,750
17,050
11,115
20,730
Totals.................
140,785
147,115
167,585
177,645
An improvement in collections is reported by
many, but they are principally firms which manu
facture or handle textiles or shoes. Iron and steel
concerns are still slow, owing to the curtailment
in operations and the difficulties in securing
payment from the railroads and other large
customers.
Dun’s report 63 failures in the Third Federal
Reserve district in March, with liabilities of
$1,082,419, as compared to 71 failures, with
liabilities of $3,701,526, in February. In March,
1920, there were 33 failures and liabilities were
$644,376.
em ber
B anks
A comparison of the reports of 58 member
banks in this district on April 15 and March 18
shows a decrease in total loans and investments
from $851,439,000 to $839,342,000, an increase
in total deposits from $708,340,000 to $709,863,000, and a decline in borrowings from the
Federal Reserve Bank from $117,522,000 to
$108,748,000. The items which make up the
total loans and investments are listed below, with
percentages of change:
March 18
Loans and discounts:
Secured by U. S. ob
ligations ..................
Secured by oth er
stocks and bonds... .
All other.................
Investments:
United States securi
ties ..........................
Other securities.......
$36,617,000
$37,767,000 + 3.2%
198,630,000
372,881,000
202,885,000 + 2.1%
366,191,000 - 1.8%
87,469,000
155,842,000
76,327,000 - 1 3 .8 %
156,172,000 + -2%
Totals....................... $851,439,000 $839,342,000 -
S a v in g s D
FIN AN CIAL CONDITIONS
F ederal R
e se rve
B an ks
H E reserve ratio of the Federal Reserve Bank
of Philadelphia on April 15 was 54.8 per cent,
which shows little change from the ratio of 54.5
per cent on March 18. This condition arises from
the fact that reserves decreased slightly and a
decrease in Federal Reserve note circulation from
$241,622,000 to $235,815,000 was balanced some
what by an increase in total deposits from
$104,286,000 to $107,478,000. Borrowings of
member banks on April 15 were $144,496,000, a
decrease of 4 per cent from March 18.
The peak of borrowing by member banks in
this district was attained on February 19, 1920,
with a total accommodation of $255,000,000. On
April 15, 1921, the bills discounted were 43 per
T
April 15
1.5%
e p o s it s
For the first time since last October the deposits
reported by 24 savings banks in this district show
a decrease. The decrease only amounts to 0.2 per
cent but gains in significance with the statement
that 15 out of 24 institutions participated in the
decline. Deposits on April 1, 1921, as compared
to April 1, 1920, increased 5.9 per cent. Com
parative figures are given below:
In
Outside
Philadelphia Philadelphia
1921—Apr.
Mar.
Feb.
Jan.
1920—Dec.
Nov.
Oct.
Apr.
1 ........
1 ........
1 ........
1 ........
1 ........
1 ........
1 ........
1 ........
$256,336,000
256.901.000
256.575.000
252.607.000
243.506.000
242.990.000
242.304.000
242.892.000
District
totals
$53,066,000 $309,402,000
53.100.000 310.001.000
52.431.000 309.006.000
51.377.000 303.984.000
51.237.000 294.743.000
49.156.000 292.146.000
49.848.000 292.152.000
49.085.000 291.977.000
BUSINESS
D e b it s
to
I n d iv id u a l A
CONDITIONS
cco un t
The figures obtained from clearing house mem
bers, showing debits to the accounts of indi
viduals, firms, corporations and the United States
Government, are thought to be accurate indi
cators of the business situation. In the table
given below the percentages of change are derived
from the average figures for the four weeks ending
011 the specified date:
April 13,1921, April 13,1921
compared to compared to
Mar. 16, 1921 April 14,1920
Districts
boston
New York...
Cleveland. . .
Richmond.......
Atlanta..
Chicago.. .
St. Louis.........
Minneapolis.........
Kansas City .
Dallas. .
San Francisco..............................
-0 .1 %
-8 .2
- 1 .9
-1 .6
-2 .2
-9 .4
-8 .4
-9 .9
- 1 .0
-7 .6
-4 .6
-3 .8
-2 6 .4 %
- 2 4 .3
- 1 4 .6
- 1 7 .7
- 1 9 .2
- 3 4 .3
- 2 6 .3
- 3 1 .3
- 2 5 .2
- 2 5 .5
- 1 5 .0
-1 1 .6
United States...........................
- 6 .6 %
- 2 3 .4 %
P hiladelphia.................................
Debits in the Philadelphia district for period
ending April 13, 1921, declined only 1.9 per cent
from the period ending March 16, 1921, whereas
the country as a whole shows a decline of 6.6 per
Cent* Compared to the previous year Philadel
phia shows a decline of 14.6 per cent, the lowest
° f any district with the exception of San Fran
c e 0- The largest declines from last year are in
*he great farming sections of the Middle West.
C e r t if ic a t e
of
I n d e b t e d n e ss I ss u e s
An active demand for United States certifi
cates of indebtedness has marked all recent issues
p these securities. The issue of April 15, which
cats interest at 5F2 per cent, brought forth sub
rep tio n s of $52,535,000 in this district, or 176
Per cent in excess of the amount finally allotted
ere $19,047,000. This allotment was only
10 per cent of the total for the country, whereas
subscriptions were over 16 per cent of the total.
B ankers A
5
cceptan ces
Sales of bankers acceptances in the Third
Federal Reserve district during the first few weeks
of April did not keep pace with the earlier months
of the year. This is due in part to the fact that
many institutions preferred to invest in United
States certificates of indebtedness. As com
pared to last year, sales have been much larger.
The supply of bills has decreased, but is ample
for the requirements of the market. Factors in
reducing the supply are the disposition of business
firms to liquidate acceptances covering goods in
warehouses, and the lessening in import and ex
port business. Latest reports of the Depart
ment of Commerce show that March exports
totaled $384,000,000 as compared to $820,000,000 in the previous year; and imports totaled
$252,000,000 against $524,000,000 last year.
Commercial banking institutions are the larg
est purchasers of acceptances, but it is stated
that industrial and business corporations have
purchased considerable amounts with the funds
released by curtailment of their operations.
Acceptance dealers complain of the State laws
restricting investments of savings banks and in
surance companies, as they feel that this class of
paper furnishes an investment combining security
and liquidity in a high degree. The purchases
of the Federal Reserve Bank of Philadelphia
have averaged $2,741,000 weekly thus far in
1921, as compared to a weekly average of
$1,469,000 in 1920, and $270,000 in 1919.
Inquiries among accepting banking institu
tions in Philadelphia show that during the
month ending April 10 eleven of these institu
tions accepted bills aggregating $4,561,000, as
compared to $5,321,000 in the previous month, a
decline of 14 per cent. The total amount of their
acceptances outstanding on April 10 was $13,150,000; on March 10 the amount was $14,095,000. Cotton, wool, silk, leather and oil figure
largely among the commodities covered by these
acceptances.
Selling rates quoted by dealers operating in the
district are given on the next page, with com
parative rates a month ago and a year ago:
6
BUSINESS
CONDITIONS
Eligible members’ bills
April, 1921
Maturity
Thirty days...........
Sixty days.............
Ninety days..........
5f6
S}/2
5^ i
March, 1921
5H
SH
April, 1920
SK
5$4
6
SH 5J/S
5 ~yi 6
s y
Eligible non-members’ bills
April, 1921
Thirty days.........
Sixty days...........
Ninety days........
5-Mj 5 y
5 ^ 5J4s
March, 1921
5^4
S J4
5 }i
6
ey8
6]4
April, 1920
5X
$7/i
5J4
5J4
6
6'A
C o m m e r c ia l P a p e r
Commercial paper sales have, on the whole,
fallen behind last year, but this is due, in part
at least, to the fact that the supply of good paper
is limited. A disposition on the part of most
business concerns to curtail operations to the
filling of immediate needs has cut down most of
the financing necessary and has impelled them
to fill this need by borrowing from the banks,
because of the high rates in the open market.
The paper of concerns in very good standing has
found a ready sale at rates as low as 7 and 7E*
per cent, though the average is still holding
around 7JT to 7 ^ per cent. A month ago the
lowest quotations were 7E4 to 7y i per cent.
this factor into consideration, sales are un
doubtedly slowing up materially.
Retailers
however look for good business during the re
maining spring and summer.
The demand is active for silks, silk wearing
apparel, women’s ready-to-wear clothing, hosiery,
millinery, shoes, and many household articles.
Men’s and boys’ clothing and hats are moving
slowly, although many specialty stores handling
only men’s wear report good sales in such mer
chandise. Purchasers are exceptionally careful
in their shopping, and retailers have found that
with a certain class of trade sales can be affected
more easily by stressing the quality factor rather
than price. The price, too, must meet with the
customer’s approval, for if it is not satisfactory
and a cheaper grade of merchandise is offered at
the desired price, the sale is usually lost. The
RETAIL TRADE
Net sales
Firms in Philadelphia (15).........
Firms outside Philadelphia (31).
All reporting firms (46).............
Stocks of goods
Jan. 1 to
March, 1921, Mar. 31,1921,
compared to compared to
March, 1920
Jan. 1 to
Mar. 31, 1920
+ .9%
+4.6%
+ 1.8%
+2.0%
+2.1%
+2.0%
Mar. 31,1921, Mar. 31,1921,
compared to compared to
Mar. 31, 1920 Feb. 28, 1921
RETAIL TRADE
O N SID E R E D as a whole, retail trade in
this district continues active and may be
said to be holding up fairly well. Easter trade
for the most part was in excess of that of last year
in terms both of number of sales and dollars,
although prices were generally 20 to 25 per cent
below those of last year. A number of stores
reported a decrease in the value but an increase
in the number of sales. The total increase of
Easter business over that of last year was not
relatively so great as that of last Christmas
season over the same period of 1919, which
would indicate that retail business is retarding.
This is accounted for in part by the lower prices
on April 1 as compared with those which pre
vailed at the end of last year, but even taking
C
Firms in Philadelphia................
Firms outside Philadelphia........
All reporting firms.....................
-20.4%
-14 .3 %
-19 .0 %
+5.4%
+7.3%
+5.9%
Average stocks Jan. 1
to Mar. 31 compared to
average sales Jan. 1 to
Mar. 31
Stocks compared to sales
Firms in Philadelphia.........................
Firms outside Philadelphia.................
All reporting firms..............................
330.5%
465.8%
361.9%
Orders compared to purchases
Orders outstanding Mar. 31,
1921, compared to total
purchases in 1920
Firms in Philadelphia................
Firms outside Philadelphia........
All reporting firms.....................
7.6%
6.1%
7.3%
BUSINESS
CONDITIONS
highly advertised low price sales on cheap quality
Merchandise still meet with some response, but
are by no means as successful as a few months
ago. In some classes of goods, more especially
ln shoes, the deciding factor with the majority of
purchasers is style. The supply of most articles
handled by the retail trade is ample to meet
present demand, with the exception of women’s
hill-fashioned silk hosiery, certain styles of shoes,
and several silk lines of which there is a shortage.
I he demand for silks, which came as a result of
National Silk Week, continues unabated with
Canton crepes still leading popular fancy. While
the pre-Easter demand in women’s ready-toWear garments was mainly for suits, at the present time, dresses, coats and wraps are in active
request, and business in these is highly satis
factory to merchants. Retailers in general ex
press themselves as well pleased with the trade
thus far during 1921.
AGRICULTURE
A N, encouraging feature of the agricultural
■ ^situation this spring is that the supply of
tarm labor is more plentiful and at lower wages,
hhe winter weather has been mild and cover
crops have done exceptionally well.
The Department of Agriculture of New Jersey
leports the condition of wheat in that state on
April 1 to be 96 per cent of normal, compared with
per cent last year, and an average for the past
ten years of 87 per cent. Rye on the same date
Was reported at 95 per cent of normal, as com
pared with 86 per cent last year and an average
89 per cent for the past ten years.
I he average condition of winter wheat throughthe United States on April 1 was 91 per cent
normal, as compared with 75.6 per cent on
^Pnl 1, 1920, 99.8 per cent on April 1, 1919, and
3-6 per cent the average condition for the past
ten years.
At intervals the temperature was so high that
ruit buds of the peach, apple and cherry trees
Were developed to a stage approximately one
^onth ahead of normal. Most unfortunately |
^ this time when the buds were far developed
r° st came, on March 28-29, with the tempera
7
ture falling to 20 degrees, resulting in serious
damage to peach and apple orchards throughout
the district. The loss to fruit growers is vari
ously estimated at from 75 to 90 per cent, but
it is too early in the season to determine this with
any degree of accuracy.
It is estimated that the acreage in the main
crops sown in this section will not exceed last
year’s figures despite the fact that farmers had a
poor season last year. Heavy farm crops were
held over last fall in expectation of better prices.
With few exceptions last year’s crops were grown
at high cost. A heavy slump in prices, especially
in white potatoes, has led the growers to try
diversified farming.
Supplies, such as seeds, tools, machinery and
fertilizer are ample. Seed prices show an appre
ciable decrease since last year. Small reductions
in tools and machinery prices are recorded but
farmers are restricting purchases. Mixed fer
tilizer prices have receded slightly but not enough
to induce much buying. Prices of raw materials
used in home fertilizer mixing have declined
considerably. In illustration of this, the list
below gives figures this year as compared with
last year:
March 29, 1920
March 29, 1921
Nitrate of soda............. #3.85 per 100 lbs. #2.60 per 100 lbs.
3.00 per unit
Dried blood................... 8.75 per unit
2.75 per unit
8.00 per unit
15.00 per ton
Acid phosphate, 16% .. . 19.00 per ton
1.75 per unit
Nebraska potash........... 2.25 per unit
1.15 per unit
Muriate of potash......... 2.50 per unit
A survey of the livestock on farms in the
United States has been taken and comparing
1920 with 1921 it will be seen by the table given
below that there has been a slight decrease this
year.
Animals on farms
Jan. 1, 1920
Jan. 1, 1921
20.785.000
5,041,000
23.619.000
44.750.000
47.114.000
71.727.000
20.183.000
4,999,000
23.321.000
42.870.000
45.067.000
66.649.000
213,036,000
203,089,000
BUSINESS
8
CONDITIONS
COAL AND COKE
A
n t h r a c it e
L IG H T reductions in retail prices of prepared
sizes of anthracite coal, effective April i,
resulted in some quickening of demand, but on
the whole the result has been rather disappointing
to the dealers. The buying public apparently
shows no desire to lay in winter stocks of coal at
the present time and at the present prices.
Although dealers and operators assure consumers
that no further price reductions are contemplated,
there has not been the expected increase in de
mand. Probably the larger part of the month’s
deliveries remains stored in the yards of dealers.
The lack of retail demand may be partly ac
counted for by the fact that the remarkably mild
winter has left many consumers with a large part
of last winter’s supply on hand, but there is no
doubt that initial price reductions have led pur
chasers to expect further reductions before fall.
The greatest difficulty is being experienced in
steam sizes. Industrial curtailment and soft coal
competition are forcing dealers to store large
amounts.
New mine prices on prepared sizes 5 ° cents
lower than last year’s scale have been announced
by all the railroad coal companies except one, and
retail prices universally are from 75 cents to $1.50
lower than winter prices. Mine and retail quota
tions and freight rates per ton from Scranton to
Philadelphia, effective April 1, are shown in the
accompanying table:
S
Broken..................
Egg.......................
Stove.....................
Nut.......................
Pea........................
Mine
Retail
Freight
37.25
7.25
7.55
7.55
5.90
313.50
13.50
13.75
13.75
10.50
32.92
2.92
2.92
2.92
2.55
Although the above quotations represent aver
age retail prices in this district, there has been
some further retail price cutting and prices have
been quoted as low as $12.75 f°r egg> $I3-°° I°r
stove and nut, and $10.50 for pea.
Reports to the Anthracite Bureau of Informa
tion show that shipments for the month of March
amounted to 5,737,771 gross tons as compared
with 5,966,101 tons during February and 6,077,821 tons in March, 1920. The total shipments for
the coal year ending March 31 amounted to
69,366,731 tons, which is only 448,303 tons less
than the total shipments for the previous year.
Firms in this district report collections as being
fair, but tending to slowness.
B it u m in o u s
If the strike in Great Britain should continue
for any length of time, it is quite possible that
South American and European markets will be
again opened to American export trade as Great
Britain, according to available estimates, has no
very extensive stocks of coal for export at the
present time.
At home the soft coal industry has been
characterized by further decreases in output.
Demand continues at a very low ebb and there
are no present indications of improvement except
in the possibility of export demand. Estimates of
the Geological Survey show that total production
for the week ending April 2 was 5,797,000 net
tons, a daily average of 1,054,000, which shows
a decrease of 670,000 tons or n per cent from
the previous week’s figures of 6,467,000 tons and
a daily average of 1,078,000 tons. This decrease
is not entirely attributable to slackening of de
mand, however, because of the occurrence of
“ Mitchell D ay,” a widely celebrated holiday in
the union mining districts.
Consumers have evinced little desire to con
tract for next fall’s deliveries at present prices
and quotations have shown little tendency
towards further declines.
Prices have not
changed greatly during the past month, some
grades showing an increase while others show a
decrease. The following table shows spot prices
quoted on April 12 and on March 15:
Pool
Pool
Pool
Pool
Pool
1 ........................................
10........................................
1 1 ........................................
9 ........................................
34........................................
April 12
March 15
33.50
2.75
2.25
3.25
2.00
33.50
2.50
2.30
3.25
2.15
Some wage cuts and further reductions of
BUSINESS
CONDITIONS
forces and of operating time are being made in
the non-unionized mines, but the wage contract
with the unions prevents any reductions at union
Mines before April i, 1922. Collections on the
whole are fair but in the case of the railroads a
Marked slowness is reported.
C oke
Further price declines, decrease in production,
and a reduction of wage scales have characterized
the coke industry during the past month. A t the
Present rate, it is doubtful if more than one-fifth
° f the nation’s productive capacity is being
utilized. Reports from the Geological Survey
estimate daily average production of coke for the
Week ending April 2 at 16,000 tons, which repre
sents a six per cent decline from the daily average
t°r the previous week and only slightly more than
20 per cent of the daily average for the week
ending April 3, 1920.
Absence of demand, coupled with the existing
0yersupply} has induced further price cutting
until prices as low as $4.00 for furnace and $5.50
*or foundry have been quoted by some inde
pendents. This reduction to a figure which is only
22 per cent of the peak prices of 1920 has failed
to stimulate demand. As production figures are
Materially less than the rate of metallurgical con
sumption, it is evident that consumers are drawlng largely upon their existing stocks of coke
father than purchasing even at this low figure.
I he demoralization in the industry has forced
a large number of independents to cut the wage
Scale from 10 to 15 per cent, although no such
action has as yet been taken by the largest
Producer, a Steel Corporation subsidiary.
IRON AND STEEL
p R l C E movements in the iron and steel
industry during the past month have been
confusing. In face of reports from firms in this
district reporting still further price reductions in
!r° n and steel products, several of the larger
Mdependents, on April 8 and April 9, announced
advances in price of $2.00 per ton on bars, plates
and structural steel shapes. Following this
action the U. S. Steel Corporation, after a con
9
ference between Judge Gary and the presidents
of the subsidiary companies, announced reduc
tions on standard steel products from 6 to 15 per
cent lower than the Industrial Board prices,
which had been adhered to by the Corporation
since March 21, 1919. This increase by the
larger independents and subsequent reduction
by the Corporation subsidiaries has made the
average prices of the two groups identical. Even
with this new level, steel and iron prices quoted
are from 67 to 108 per cent higher than average
prices in April 1914. The following table taken
from the Iron Age shows the new prices announced
by the Corporation as compared with the Indus
trial Board Prices:
New
4 x 4 in. and heavier billets, per gross ton. 5537.00
38.00
2.10
Bars, per 100 lbs........................................
2.20
2.20
Structural shapes, per 100 lbs....................
48.00
Wire rods, per gross ton............................
3.00
3.25
Wire nails, per keg, base............................
6.25
Tin plate, per base box..............................
Sheet bars and small billets, per gross ton. 39.00
Old
338.50
41.00
2.35
2.65
2.45
52.00
3.00
3.25
7.00
42.00
No reductions were announced in prices of steel
rails, sheets, tubular products and hoops. In
spite of this apparent stabilization of prices by
identical quotations of the larger independents
and the Corporation, it is questionable whether
the smaller independents will be able to maintain
this level of prices in face of the existing small
demand.
Some firms in this district report a further de
cline in sales and, in most instances, lower quo
tations on standard iron and steel products.
Although there has been an improved demand
from automotive manufacturers, it has been far
below expectations. Even if it were a normal
demand, however, the effect on the iron and steel
industry would be almost negligible since the
total consumption of iron and steel by automo
bile and truck manufacturers is only about 5
per cent of the total product. The expected
spring building program has failed to materialize
and hence there is little demand from this quar
ter. The deplorable financial conditions of rail
roads have prevented any considerable purchases
10
BUSINESS
CONDITIONS
of rails or structural shapes by them and the ef
fect has been very noticeable in the steel industry.
Another appreciable factor in the situation is
that those consumers who have been able to buy
but who have not been compelled to do so have
tended to delay purchases in the belief that a closer
approach to the pre-war price scale is probable.
Whether the recent reduction of prices by the
Corporation will be sufficient to induce buying is
uncertain, for no immediate increase in demand
has followed the price adjustment. It must be
remembered, however, that the items of expense
entering into the manufacture of iron and steel
are nearly ioo per cent higher than before the
war. Coke at $4.00 is slightly less than double
the pre-war price, while wages in the industry ap
proximate 100 per cent above the pre-war level.
Prices of other raw materials have increased
materially and the present high freight rates
have practically doubled the cost of assembling
the raw materials necessary to the manufacture
of iron and steel products. The table at the top
of the next column indicates the present assembly
costs for the raw materials used in producing one
ton of iron in the Pittsburgh district, as compared
with costs in 1912:
Another important factor in explaining the
1912
Rate from mine to dock on two tons of ore SI.10
Boat rate and unloading..........
1.20
Lake to furnace.........................................
1.92
Freight on 1 1/10 tons coke.......................
.80
Freight on l/ i ton limestone......................
.32
Slag disposal..............................................
Total......................................................
S5.34
1921
S2.06
2.48
2.80
2.80
.80
.54
S10.48
present lack of demand is the almost total cessa
tion of export demand. As European industrial
activity approaches a state of normalcy it be
comes increasingly apparent that our own in
dustry will encounter severe competition, not
only in the foreign field, but at home, as well.
Much lower production costs have enabled
German, Belgian, French and British concerns
to seriously underbid us in South American and
Southern European markets. Freight conces
sions on returning Atlantic steamers have allowed
Belgian concerns to offer steel billets delivered at
our Atlantic ports as low as $28.00 per ton.
Present high domestic freight rates have per
mitted successful foreign competition at the G ulf
and Pacific ports. Belgian bars have recently
been delivered to San Francisco at 2.30c. whereas
domestic bars at 2c. Pittsburgh with 1.665c.
freight to the coast would cost 3.66c. delivered
BUSINESS
CONDITIONS
As a consequence of this fear of foreign competi
tion, great interest has been evidenced by the
trade in the proposed protective tariff legislation.
Reports from firms in the Third Federal Re
serve district indicate a considerable decrease in
demand for pig iron, castings and steel shapes
and bars even in the face of the slight increase of
niquiries from agricultural, structural and auto
motive manufacturers. It is quite evident that
structural work in this district is far below the
usual spring volume while the automobile indus
try Js not furnishing more than 60 per cent of
fast spring’s demand.
firm s manufacturing nails, chains, wire, wire
products and similar products also report an
extremely light demand and practically no in
crease over last month. Those concerns manu
facturing automobile castings and frames and
uiotor parts report increased sales, but only
ab°ut 50 per cent of last spring’s demand.
Operations show further curtailment, and pro
duction a continued decline over last month. The
slT|all independents in this district report a
Uieager hand-to-mouth business, while many
urnaces and mills are entirely closed down or are
Preparing to close down in the near future,
further price reductions during the month have
entirely failed to stimulate demand. The daily
average production of pig iron for the country as
a whole showed a greater reduction in March than
1,1 any previous month. According to reports
Published in the I ron Age, the total pig iron pro
duction for March was 1,595,522 tons, or 51,468
funs daily, as compared to 1,937,257 tons in
ubruary, or 69,187 tons daily. During the month
0 March a net loss of fifty blast furnaces was
Recorded, which indicates that only 102 blast
urnaces are in operation at the present time,
tatistics gathered by the American Iron and
feel Institute indicate that steel ingot produc
er*11 for March was 1,570,978 gross tons, which
p P resents a decline of over 10 per cent from
February’s output of 1,749,477 tons. Unfilled
°tders of the United States Steel Corporation as
0 March 31 amounted to 6,284,765 tons, a
Reduction of 649,102 from February’s figure of
>933,867. 'Phis figure represents the eighth conSccutive monthly decrease and brings the unfilled
funnage close to the previous low point of I
11
6,284,638 in September, 1919. The figure for
March shows a total decline of almost 50 per
cent from the record unfilled tonnage of the
Corporation in April, 1917, which amounted to
12,183,083 tons. It is doubtful if the present
output of the industry in general is more than
one-third of capacity. Reports from firms indi
cate that production in this district is less than
30 per cent of capacity and that even this
output is not being entirely consumed, hence
stocks are accumulating in the hands of pro
ducers.
Curtailment of operations has resulted in
universally reduced employment and, in the case
of independents, in wage reductions varying from
5 to 30 per cent. Reports received from 96
firms in this district show that the total number
of workers carried on the payroll in this month is
about two-thirds the total personnel in April,
1920. A reduction of 32 per cent in number of
workers is reported and a total reduction in
total wages paid of 47 per cent from the amount
paid out for wages in April, 1920. O f the 96 re
porting firms, 44 reduced wages 10 per cent or less;
33 firms reduced wages more than 10 per cent,
while in the remaining firms the scale remained
the same. The average income per worker, of
course, has been reduced to a far greater ex
tent on account of the curtailed working hours.
Wage reductions continue in the industry in spite
of the failure of the Steel Corporation to take any
action in regard to wages and working hours.
The reports of the Bureau of Labor indicate that
unemployment during the past month was more
marked in the iron and steel industry than in any
other, a decrease of 6 % per cent from February
being reported.
Little difficulty is being encountered with
cancellations as most business is being taken in
small orders for immediate delivery and buyers
are not over-extending. Collections are charac
terized as fair.
M
a c h in e r y
The outlook in the machinery and machine
tool manufacturing industry is hardly more favor
able than that in iron and steel. Demand is slack
and prices have shown a decidedly downward
12
BUSINESS
CONDITIONS
tendency in the past month, some reductions of
io to 15 per cent having been made. With
industry curtailed as at present, it is not surpris
ing that manufacturers are unwilling to make new
capital expenditures when they already have
large amounts of idle equipment and machinery
on hand. Revival in the automobile industry has
been hardly sufficient to react appreciably upon
the machinery and tool manufacturers, although
some orders are being reported. Demand for
agricultural equipment and machines has shown
some quickening, but farmers generally are not
in a financial position to make extensive pur
chases. Representative firms in this district
report that present orders are not sufficient to
necessitate operations at more than 40 per cent
capacity on an average, although many concerns
are operating at 20 per cent or less. Employ
ment shows a corresponding decrease and wage
reduction is becoming more prevalent as the
available supply of skilled labor is increasing
materially. Raw materials are easily obtainable
and at considerably reduced prices. In general
the industry is affected by the same factors which
are causing such marked inactivity in other
industries. The nature of the product necessitates
general industrial activity before demand for
machine products becomes evident. Reduced
prices of raw materials and wage reductions have
enabled manufacturers to materially reduce
prices, but there seems to be an almost total
absence of demand at any price. The same
factors abroad have contrived to bring about an
almost total cessation o f export demand.
Cancellations are offering little difficulty at
present, but collections are not more than fair and
arc especially slow in the case of railroads.
AUTOMOBILES
'H E advent of spring has been accompanied
by a pronounced revival of demand for auto
motive products. Dealers in this district report
an improved demand and a large increase in
volume of sales as compared to last month. This
improvement has been especially noticeable in
the case of certain popular medium and low
priced pleasure cars and in the case of second
T
hand cars. A few dealers in these types report an
actual increase in volume of business over March
and April of last year, which were peak months in
the automobile industry. An actual increase in
sales over last year, however, is exceptional, and
dealers in most models report sales of from 60 to
80 per cent of the 1920 peak.
The demand for high-priced pleasure cars, how
ever, while larger than during the winter months,
does not show as great an increase as in the case
of the medium and low priced models. It is
noticeable, moreover, that those cars, the prices
of which were reduced last September, are in
much better demand than the makes which did
not announce reductions. Sales of heavy-duty
trucks, while somewhat advanced over last
winter, are far below normal and do not nearly
approach the volume of sales attained during the
peak months of 1920. This has been caused by
the curtailment of industrial operations, leaving
many firms with large numbers of idle trucks on
their hands at the present time.
Although the trade is generally optimistic over
the outlook for the future, the more conservative
dealers feel that this natural seasonal improve
ment appears much larger than the facts would
warrant when contrasted with such an excep
tionally dull winter as was the last one. Although
many dealers reported a 100 per cent increase
in sales in April over the preceding months, it
must be remembered that sales during January,
February and March were, in many instances, to
quote one firm, “ practically nothing.”
Operations and employment during the fall and
winter months did not average more than 25 per
cent of normal and many plants were entirely
closed. The spring revival has resulted in in
creased operations according to reports from
firms in this district, quite a number of which are
preparing to operate at capacity while operations
in general at the present time approximate 60 per
cent of normal. With the resumption of opera
tions in March and April, workers, in numerous
instances, have been re-employed at wages 15 to
30 per cent lower than last year’s scale. Raw
materials, especially castings, are plentiful and
obtainable at much lower prices than last year.
Although practically no reductions in prices of
standard models have been made since the cuts
BUSINESS
CONDITIONS
pflast September, many dealers are making what
|s>virtually, an actual price reduction by includlng with the new car extra parts such as acces
sories or tires, which amount to from $50 to $200
ln some instances.
Little difficulty with cancellations is being en
countered this spring, and collections are generally considered to be good, although there was
some slowing up in March due to the income tax
payments in that month.
Last year’s production of trucks and automo
biles in the United States was 2,241,000, the
jargest output in the history of the industry. It
ls estimated that there are now more than nine
Million trucks and automobiles in use in the
country, of which number about 90 per cent are
aiitomobiles. The following chart shows the
rapid growth of the automotive industry, as
cornpared to population, from 1912 to 1920:
. n this eight-year period the number of cars has
lncreased from a ratio of one car to 94 persons in
to the remarkable figure of one car to 11
Persons in 1920. Whether the pronounced flattenlng out of the curve in recent years indicates the
aPproach of a “ saturation point” is problem
atical.
13
COTTON
H E condition of the cotton goods market at
the present time is spotty.
No decided
change was evident during the past month;
demand continues active in some lines, while
others show considerable inactivity. The market
for ginghams and sheetings is the strongest, while
heavy cotton fabrics show the weakest tendencies.
Sales are practically all in the spot market and,
despite the fact that the season for placing orders
for fall delivery is already well advanced, little
interest is shown in orders for future delivery.
The cutting up trade and manufacturers of cotton
garments continue to defer buying with hopes of
lower prices and although stocks of retailers are
low, they are buying far less than in normal years.
The dictates of fashion and the refusal of the
consumer to buy high-priced goods have caused
the inactivity in those lines which is so apparent.
The spring season has already shown a consider
able demand for low-priced gingham dresses and
aprons and as a result sales in this line are nearly
normal in volume. Manufacturers of ginghams
are reported as sold up and are operating at full
capacity. The demand for heavy cotton fabrics
used in the manufacture of tires reflects the
inactivity in that industry and plants devoted to
the manufacture of this grade of goods have cur
tailed operations to a large extent.
There seems to be no general trend of opera
tions. In some lines stocks of finished goods in
the hands of manufacturers are sufficient for
current demand and they are reluctant to increase
such supply. In other lines the demand is
sufficient to absorb the capacity of the plant.
Generally, buying is on a hand-to-mouth basis and
manufacturers are operating only on orders.
Except in the instances referred to where there is
an active demand, prices continue to decline.
The cotton yarn market has reflected the trend
of the cotton goods market to a large degree, but
some increase in interest has been noted. Sales to
manufacturers of low-priced cotton goods and
low-priced hosiery have improved somewhat.
A ctivity was evident in January and February,
and a number of mills increased production at
that time. The recession of the early part of
T
14
BUSINESS
CONDITIONS
March found manufacturers with increased stocks conditions have been good for early farm work.”
on hand and as a result mills have been curtailing The stock of cotton on hand, exclusive of
operations, and the present demand is being met linters, and the active spindles for the past two
months as compared with March of last year is
largely from stocks.
There has been comparatively little change in as follows:
yarn prices during the month, and at present they
Mar. 31,
Feb. 28,
Mar. 31,
are about on a par with those of 1913.
1920
1921
1921
The consumption of raw cotton in the United
In manufacturing es
States during March was larger than any month
1,337,790
1,335,435
tablishments ...........
1,854,996
since September, and according to the monthly
5,597,019
3,240,197
5,235,360
In warehouses............
Active spindles........... 32,104,946 32,458,528 34,697,812
report of the Census Bureau, a total of 437,933
bales was consumed. This is 20,325 more bales
than in February and 137,856 less than March of
No cancellations have been reported in either
last year. Despite this fact there were fewer the cotton goods market or in the yarn market,
spindles in operation during March than in and in the raw cotton market the evil is ap
February, the total being 32,104,946, a reduction parently a thing of the past. Collections have
of 353,582. The greater portion of this reduction shown a slight improvement and m ay be classed
was in the cotton-growing states, the mills as fair to good at the present time.
throughout that district showing 317,794 of the
total reduction. Consumption of linters in March
WOOL
was 37,991 bales, in comparison with 31,597
W o o l C loth
during March of 1920.
We are advised by the Federal Reserve Bank !
E F E R R E D openings of fall lines caused an
of Dallas, Texas, that: “ Planting of cotton in
unusually heavy demand during the months
southern part of the state is now progressing of March and April. An unexpected demand for
normally. The season has been rather unfavor spring tricotines found the majority of manu
able and crop planting will be somewhat delayed facturers unprepared to meet it. Fall orders for
in other parts of the state. Fair season in ground these goods are numerous. The majority of
conditions. Little labor shortage. Low prices of mills report operations as being in excess of a
last crop and heavy amount unsold will probably year ago. Practically all lines are selling well,
make effort at reduction of acreage more success with velours, tricotines, and other twilled ma
ful than usual. Recent cold weather and excessive terials in the lead. Some concerns report that
rains in some places have slightly injured outlook, men’s suitings were oversold at the first openings,
but except for reduced acreage there is promised and demand for them continues so heavy that
fairly normal conditions for the future. Cotton is independent firms are counting upon the over
moving slowly and still being held pretty flow orders for their share of fall business.
strongly.”
Finished stocks on hand are low. Most of
The Atlanta Reserve Bank states: “ Prepara them are the result of cancellations and are not
tion for planting has progressed rapidly and is in demand this year. Other stocks which meet
probably more advanced than for average years. this year’s requirements were purchased and
Conservative estimates place reduction of cotton manufactured at high costs, and must be sold at
acreage compared with last year from 10 to 20 prices entailing great loss. Little change in
per cent. However, there is no let up in the prices has been noted since last month, and this
campaign for reduction of from 25 to 50 per cent. is considered by some an indication of stabiliza
Amount of fertilizer used up to the present time tion.
is estimated at only one-third to one-half of the
Many plants are operating at capacity, others
amount used up to the same time last season and at 50 to 75 per cent with plans for expansion as
reports indicate this ratio will not be increased soon as reorganization of their forces can be ac
during the remainder of the season. Weather complished. The number of employees is being
D
BUSINESS
CONDITIONS
steadily augmented, appreciable additions to
forces having been made since January i. It is
thought that owing to late openings and generally
curtailed operations up to that time, production
on the whole will be considered below normal.
No cancellations of recently placed orders are
recorded, and collections are improving, being
characterized as fair to good.
Y arns
Worsted yarn production is marked by varied
conditions. The following incident illustrates
fhe uncertain condition of the market. A firm
informed us rather early in April that demand
had fallen off since last month, and compared with
j1 normal year was “ very much sub-normal, with
mquiries for prices and small sample lots, but
nothing in the way of a tangible order.” In the
nnddle of the month, this same firm advised us
that several of their larger customers had placed
good-sized orders for yarns, which they felt re
jected a decided improvement over last month.
Generally speaking, demand does not keep
pace with the increased activity among woolen
§°ods manufacturers. These are operating from
stocks on hand and when forced into the market
|Ee ordering on a hand-to-mouth program.
1 imidity on all sides is limiting trading.
Another firm manufacturing only the finest
founts from the best imported Australian wool
has been running at capacity all during the war
jttid since. Present orders, however, although
arge are entirely for immediate delivery. An°ther large yarn manufacturer is operating at ioo
Per cent capacity, but states that his orders are
f to cover spring business; no forward orders
lVtfVe ^een Placed to care for fall deliveries.
^Manufacturers of the medium and lower counts,
°wever, have not participated in this business,
°Perations being reported at from one-third to
two-thirds of normal.
Baw materials are easily obtainable at low
Prices. The employment situation indicates
^ proving conditions, all mills reporting addi10pal workers over the number on January i.
. * nces of yarns, on the whole, are unchanged
Slnce last month, although some recessions are
15
noted. No forward orders being placed, there is
little opportunity and no desire to cancel. Col
lections show improvement and are generally
regarded as fair.
R aw W ool
The ‘ £see-sawing” on the tariff question has
kept raw wool dealers in a state of perplexity—
demand strengthening and weakening with the
varying rumors. Present demand is negligible
and stocks continue to accumulate. It is stated
that much of the wool on hand was consigned at
prices considerably above the market and cannot
be moved at present prices, which are low and are
being forced down by pressure of foreign wool.
Prices on the finer grades of wool show little or
no change since last month, but the lower grades
are being neglected and their prices are but
nominal.
In spite of the little trading, there is record of
some cancellations; when the market is threat
ened with lower prices, orders placed at slightly
higher levels are immediately canceled.
Collections are characterized as 'good.
SILK
A L L present signs point to a return of normal
^-demand in the silk industry. During March
the demand for spring silks was exceptionally
active and duplicate orders were numerous. A
shortage in many of the more desired lines devel
oped, as the industry was unable to produce the
quantities called for, due to the delayed buying
season and the scarcity of certain raw silks.
April, foreshadowing the close of the spring dis
tributive season, witnessed a slight falling off in
this demand, which was counterbalanced, how
ever, by orders for fall goods. Jobbers are begin
ning to buy for forward deliveries and production
is being increased daily. Retailers are also buy
ing in good volume for retail sales of silks and silk
wearing apparel have been exceptionally good and
continue so at the present time.
Prices of silk goods have been holding firm and
manufacturers anticipate no further downward
revision until wages in the mills are decreased.
16
BUSINESS
CONDITIONS
When mill operations were resumed in January,
reductions of 25 to 30 per cent in wage schedules
were announced. This cut, coupled with the
decline in raw materials, resulted in a readjust
ment of prices, which at the present time are
about 40 per cent below the peak levels of early
1920.
Prices of raw silk are firm. The efforts of the
Japanese government to stabilize prices in that
country have thus far been successful and as a
result have engendered a spirit of confidence in
the American trade. There are no indications of
a further relapse in the market, but neither is a
radical increase in prices looked for, or indeed
desired. A slight advance of prices in some
quarters however was noted during April.
The demand for raw materials is active, but
almost entirely for immediate delivery. Although
mill owners are optimistic as to the coming
months, they have not expressed their confidence
by making large commitments for future delivery
of silk. They are following a more or less handto-mouth policy, which is giving to the market
conservative strength.
Collection' conditions in the silk industry are
generally characterized as good. In most cases
where accounts are past due, interest is being
exacted and this practice has had considerable
influence in improving the collection situation.
CARPETS AND RUGS
P E R A T IO N S in the carpet and rug industry
have been maintained at a low level. M any
prospective customers withheld their orders be
cause of the expectation of lower prices after
April 1. This was, in large measure, realized, as
quite a number of firms in this district reduced
prices 25 per cent. Sales at a large auction sale in
New York realized prices 25 to 35 per cent below
those of November. The confidence engendered
by these reductions was reflected in improved
demand during the month of April. This im
provement, however, is slight and conditions are
far below normal.
Wilton and Body Brussels manufacturers are
still experiencing labor difficulties. Manufacturers
are unwilling to operate their mills at former wage
O
scales and employees, thus far, have not accepted
reductions.
Other manufacturing conditions are satis
factory— raw materials are plentiful at consider
ably lower prices, and the orders received are tor
actual needs which obviates cancellations.
HOSIERY
E N E R A L improvement was noted in the
market conditions of the hosiery industry
during the past month, the feature of the situa
tion being the marked increase in demand for all
silk lines. The strike in the majority of Phila
delphia full-fashioned hosiery mills continues, and
with this source of supply cut off, the quickening
of interest in these goods resulted in a deluge of
orders for mills in the Reading district. One
manufacturer writes that never before in the
history of his business has he experienced so great
a demand, which he attributes to the Philadelphia
strike.
Notwithstanding this extraordinary demand
for full-fashioned hosiery and the fact that raw
materials registered an increase during the month,
mill prices have shown no change. Present
quotations are on a par with those of January 1,
but are more than 50 per cent below those of last
spring, and manufacturers claim they do not
yield a legitimate profit. Orders being placed are
all for rush shipment and little attention is being
given to forward deliveries.
As a result of the inability to secure immediate
delivery on full-fashioned hosiery, buyers have
turned to mock fashioned and seamless silk
lines and manufacturers of these goods also re
port increased business. Finished stocks have
been rather thoroughly absorbed in distributive
channels and most mills are now working on
orders. Prices for these goods have stiffened
considerably.
Demand for mercerized and lisle hosiery con
tinues spotty but the number and size of orders
| show improvement as compared to last month.
[ The general call for these goods at the present
time is estimated at 50 per cent of that of a
| normal year. Jobbers are not anticipating re-
G
BUSINESS
CONDITIONS
17
fell off during February, for jobbers, having
ordered sufficient underwear during the preced
ing month to meet their early needs, refused to
anticipate developments. The warm weather
of late February and March resulted in a public
demand which was wholly unexpected. Buyers
therefore re-entered the markets during March,
and the volume of orders placed increased with
each succeeding week until at the present time
the business offered is beyond the industry’s
ability to handle in the required time.
The majority of mills are now booked to capac
ity until the end of the light-weight season, but
because of the shortness of the season, due to
late buying, it is doubtful whether the business
of any mill will total more than 75 per cent of
normal for the season. All things considered,
this is viewed by manufacturers as highly satis
factory, being far beyond anticipations at the
beginning of the year. A t a number of mills
which have not yet booked to capacity, prices
OPERATIONS IN THE HOSIERY INDUSTRY
have been advanced slightly and orders are being
March, 1921 March, 1921
received at the new level. Prices in general are
compared to compared to
March 1920
Feb. 1921
firm on a basis of 50 to 60 per cent below those of
last year.
Birins selling to the wholesale trade:
I roduct manufactured during
Openings have been made by all mills in this
March .
-6 5 .6 %
+ 15.8%
district
manufacturing heavy-weight underwear
fin is h e d p ro d u ct on hand
March 31..............................
-2 3 .7 %
- 1 0 .6 %
but the response has not reached expectations.
Raw materials on hand March
Several mills have booked sufficient orders to
31. ...
-4 8 .6 %
+ 6.3%
+ 105.8%
Orders booked during March... -3 0 .6 %
maintain total capacity until the end of August,
Unfilled orders on hand March
but the majority thus far have received but little
- 5 5 .1 %
+ 17.4%
... 3 1..........................................
business. Jobbers, taken as a group, are making
" ms selling to the retail trade:
Product manufactured during
only
small-sized commitments, although they are
March. .
-8 3 .6 %
+ 87.8%
watching developments very closely. The price
1'inished p ro d u ct on hand
March 3 1..............................
- 4 1 .6 %
- 1 8 .7 %
factor is one of the chief deterrents to buying
Raw materials on hand March
31. ..
activity; jobbers demand lower quotations while
-4 6 .4 %
+ 7.3%
+48.5%
Orders booked during March..
+ 8.8%
manufacturers
are firm in their stand for present
Unfilled orders on hand March
31. ..
levels which they maintain allow for only a
- 8 4 .6 %
+ 34.9%
meager profit. Another disturbing element is the
uncertainty as to the volume of stocks carried
over from the past winter. The estimates vary,
UNDERWEAR
but nothing of a definite nature is known. The
situation
is similar in all respects to that which
J ^ U P L I C A T E orders for light-weight under
existed
when
1921 spring underwear was offered
wear resulted in a spirited market during the
to
the
trade
last
fall, and manufacturers cite the
Past nionth. Practically no interest was displayed
present
shortage
in these goods as ample reason
ln these goods until the active revival of midwhy
buyers
should
not delay in placing orders for
January, although during a normal year orders
heavy
weights.
Few
if any mills are producing
are completely placed and largely made up and
for
stock,
for
they
refuse
to speculate on a demand
leady for shipment by that time. The demand
ffiiirements, and although their stocks for the
niost part are liquidated, they are placing orders
only when there is an immediate outlet. As an
example of the present buying policy of the job
bing trade, one manufacturer cites the case of a
customer who normally orders 50 to 100 cases.
I he first order received this year was for five
cases, followed by two more when these were
delivered, with later a third order also for two
cases. It may be seen, therefore, that manu
facturers are now carrying the stocks which or
dinarily would be in jobbers’ warehouses. Prices
f°r these goods stiffened somewhat during the
past month and at present appear to have reached
a firmer basis.
Considered as a whole, the hosiery industry
nas greatly improved its position since the first
°f the year. Collections are reported as fair to
good.
18
BUSINESS
CONDITIONS
which may, or may not arise, to consume stock
which would accumulate under such a policy.
The following table reflects manufacturing
operations in the underwear industry during the
month of March:
CONDITIONS IN THE UNDERWEAR
INDUSTRY
March 1921 March 1921
compared to compared to
Feb. 1921
March 1920
Product manufactured during
March......................................
Finished product on hand March
31 ...........................................
Raw materials on hand March 31
Orders booked during March. . . .
Unfilled orders on hand March 31
+ 85.8%
-2 9 .5 %
- 8.9%
- 3.6%
- 1 3 .5 %
+ 1 0 .0 %
+ 143.4%
-4 5 .8 %
+317.3%
-6 0 .4 %
REAL ESTATE AND BUILDING
N E of the far-reaching ills that we inherited
from the world war is a scarcity of houses.
During the conflict, the high costs of building
materials and their shortage, together with high
labor costs and the stressing of war material pro
duction, resulted in a serious decline in home
building. As a consequence, the supply of small
homes became unequal to the demand and rentals
soared.
In the chart below is given the number of
building permits and their estimated costs issued
in Philadelphia for the construction of two and
three story houses from 1905 to 1920, inclusive.
During the years 1905 to 1917 a total of 98,074
permits for dwellings of that kind was issued, an
annual average of 7,544. From 1918 to 1920 the
average was only 5,094.
A number of operative builders, realizing the
need for houses, started to build in 1919 even
in the face of high costs. Difficulties of one kind
or another held up construction work in some
cases and many of them were completed at a time
when money had become scarce and purchasers
were few. It is estimated that 1,200 of the houses
built at that time remain in the hands of the
builders, some of whom have resorted to renting
in order to lighten the carrying costs.
The type of house within the means of the
working man is scarce. Rentals are high and
monthly leases are the rule. In a few instances
BUSINESS
1905-mo
I9 0 5 i
tz z m x
I
|------------------------ 1 _
I
I
7 m
m
|
^ 2 3
|
19
rentals have been slightly advanced, but in
general, they are about the same as last year.
While applications for medium-priced houses and
apartments are still numerous, the demand is not
quite so insistent as last spring.
Humberor Boildimg Permits Taken Out in Philadelphia
z z z z a —
CONDITIONS
!
1
no7j
Mortgage money has been difficult to obtain
for the past two years and has commanded large
bonuses. Within the past month or two, however,
a slight betterment is noted and premiums have
decreased considerably. The scarcity of mortgage
money to be obtained from banking institutions
and high rentals impelled many to purchase
homes through building and loan associations.
The chart on page 19 shows a steady increase in
the number of members and the number of
houses bought through these associations from
1914 to 1919.
1
1909{
1 9 to j
^ ^ 2
1911 [
191 2 J
R
O
B
r
m
b
b
h
B b
h
m
—
1913j
-------------|
1914 j
—
m
1915
7Z77A
—
1 9 lt|
I9 l7 j
a
____ L c a r n o .____ w m m i w a :
____ E W aT H gM
19»o|
— J L
191<)|
m
_______
192o[
a
1
2
nw3* i© 0
^
IC
The more expensive homes, which were not so
much in demand during the height of the real
estate boom, are enjoying a boom at present.
This is particularly the case with suburban
Increase in Activities or'Tme B u ild in g a n d Loan Associations or Pennsylvania
WI4 - Ml*)
1
llUJluJL
u n i uu u n
il l ijjm
Lcqemd
vrn rrn
—
Total Numbi R O f 3HARCM01 OCRS
NonBtRor3tt VRD BO R ftCW E s On
—
(
1915
LJ1U.1IIIII IIITTTIIIimillllllll 3 -------------191C
lLLi n
1915
1919
u i m m m m m m m i i m m i H ----------
■
j j u u u u u i n m i m i n i n n n m m m -------
U J J llU J ll '.IIIlllllllllllllllllHl ' i i n i i i i n i i n — —
/YT
ifno
?cno
2 >00
24-00
20
BUSINESS
CONDITIONS
properties. While in some instances sale prices
on these are reported as receding slightly, on the
whole, they remain about the same as last spring.
The situation in the business districts has been
as strained as that in the residential sections. A
year ago, it was almost impossible to rent office
space in desirable buildings in the center of the
city, and even now there is but little choice among
the offices available.
Reports from the cities throughout the district
are almost monotonously unanimous in their
building news, the advices stating that there is
little or no building at present, but that construc
tion plans calling for an expenditure of large sums
of money are in the hands of architects awaiting
a decline in building costs.
The increased cost of building a typical twostory house is illustrated by the following table
compiled by a prominent builder, and published
in the “ Philadelphia Home Builder” :
COMPARISON OF COST OF
TW O-STORY DWELLING
Six rooms and bath, based upon a building operation embracing 100 houses
19 14
G
r o u n d ....................................
$ 500.00
19 20
$ 60 0.00
1921
Building permits and affidavits..............................
Water permit (brick and
Fire insurance on building
Fire insurance on buildings.
Compensation insurance. . .
Title company’s charges.. ..
Deed—acknowledging, revenue and recording........
Expense— placing first
mortgage........................
Expense — placing second
Supplies..............................
19 20
19 21
$ 40.95
$ 93 .60
10 0.00
8.75
2 1.5 0
$ 99.45
40 8.70
703.67
9 5 5.41
8^0 00
385.04
258.54
16 .00
48.47
12 0.00
545.00
44 0 .0 0
81.25
16 6.00
50.00
12.00
30.00
10 5.00
56.00
35.00
33.00
22 5.00
15.00
65 .00
12 .00
48 .60
2 .1 0
3.15
35.00
143.75
8.85
6.65
26.00
12 9.60
8.85
6.3 0
42.75
44.25
2.43
.65
1 1 0 .0 0
90 .00
4.85
1.00
106.88
85.00
4.05
1.00
$ 2 ,0 0 5 .15
$ 6 , 103.64
$ 4 , 842.79
$ 600.00
CONSTRUCTION
STREET
IMPROVEMENTS
GENERAL CONDITIONS
19 14
$ 22.50
$ 60.00
$ 60 .00
15.00
6.00
25.00
30.00
16 .50
90.57
30.00
16 .50
90.57
$ 68 .50
$ 197.07
$ 197.07
$ 1.00
$ 2.00
$ 2.00
3.50
5.00
5.00
5.00
7.50
7.50
1.80
1.80
1.80
4.0 0
4.0 0
11.25
101.25
69.75
.1 0
3.87
15.00
17 6.00
88.00
78 .60
7.93
25.00
263.00
150.25
.1 0
2.58
12 .00
14 4.00
72.00
6 5 .50
6.80
77.45
2 19 .4 0
123.75
4.0 0
8.50
5.00
20.00
220.00
10 8.00
23.00
18 .00
5.00
278.00
36.00
15 .00
12 5.00
36.00
12 .00
$ 395.65
$ 1 ,445.55
$ 1 ,0 3 6 .18
.10
1.60
5.00
6 1 .0 0
32.00
29.40
Excavation.........................
Stone masonry...................
Brick masonry...................
Rough carpentry...............
Plastering...........................
Cement work.....................
Cut stone...........................
Structural steel..................
Roofing and spouting.........
Plumbing and gas fitting.. .
Heating...............................
Electric wiring...................
Stairwork...........................
Labor—general..................
Tile work...........................
Iron fence and clothes poles.
Sheet metal work..............
Cabinet work....................
Hardware—finish..............
Hardware — rough.............
Painting and glazing.........
Art glass............................
Range and connection.......
Gas water heater and connection............................
Parquetry floor.................
Flue lining and crocks.......
Grading—general..............
Paper hanging and decoratmg...................................
Lighting fixtures...............
Sodding and seeding..........
Numbering houses.............
145.54
226.25
255.42
26 ^ no
104.61
83.00
7.70
11 .8 0
50.00
167.00
166.00
30.00
37.50
25.00
5.50
17 .00
35.00
22 .70
11.00
11.00
354.42
659.71
555.67
6 1 0 on
269.42
198.76
16 .00
33.63
110 .0 0
44 2.00
368.00
65.00
125.00
50.00
9.9 0
25.00
85.00
40 .00
32.00
24.00
2 15 .0 0
15 .00
65.00
BUSINESS
CONDITIONS
CEMENT
IV / f A N U F A C T U R E R S o f cement are encour* X aged by a revival in their industry, which
had been dormant for the past few months. Fine
weather, apparent ease in securing raw materials,
excellent freight service, and reductions in the
pnce of bituminous coal have all contributed to
make ideal working conditions.
The volume of orders received this month is
substantially in excess of last month and de
mand is almost equal to that of a normal year.
Small construction operations and jobbing form
^he basis of a large number of present orders.
Railroads are still holding up their orders, while
smte and municipal road construction is some
what slow in getting under way.
Last year was said to be the largest cement
year on record, and it may be recalled that
cement mills experienced some difficulty with pro
duction on account of the coal shortage. Many
° f the plants are working close to capacity.
I he number of employees is appreciably
greater than on January i. Manufacturers
nave their storehouses filled and are ready to
meet demand.
For the past few months cement prices have
held relatively steady, but during the last thirty
Pays a reduction from $i to 40 cents has been
made on the price of cotton containers, which
makes the net price to the consumer much more
reasonable.
cancellations are not causing much concern.
In a t e w i__
o t r/~\ n
s n l n f p r l rac(=>c r a t i r p l l ^ t - i n n c
1
by adjusting the contract price to meet market
quotations.
Collections are reported to be good at the present time.
sales represents a flood of small orders for mer
chandise for immediate use; that is, seasonable
goods such as farming implements, garden
tools, wire fencing and netting. Stocks of mer
chandise are fully adequate to meet the demand.
The movement of most finished products from
manufacturers to dealers is regarded as satis
factory, except in wire products, such as poultry
wire and window screening. Difficulty was ex
perienced last year also from this source as wire
factories were unable to supply demand. For
this reason, stocks on hand at present are low
and shipments come through slowly.
The general price trend has been steadily
downward, minor changes in prices being noted
almost every month, especially in cast iron and
wrought steel goods. Wire products, on the
other hand, are holding relatively firm. N ot
withstanding the constant declines, hardware
prices have not yet reached pre-war levels.
Collections have improved considerably as
compared with a few months ago. It is stated
by one of the reporting firms that concerns which
formerly took forty-five to sixty days to meet
their bills are now paying in thirty days. Out
standing accounts in most cases show a substan
tial decrease over the previous month. The col
lection situation may be summed up as “ fair.”
WHOLESALE HARDWARE TRADE
Mar. 1921
Mar. 1921
compared to compared to
Feb. 1921
Mar. 1920
Net sales during month..............
Accounts outstanding at end of
month......................................
+30.2%
- 1 9 .2 %
+ 4.1%
- 1 4 .0 %
Ratio of accounts outstanding to sales:
March, 1921.............................................172.2%
February, 1921........................................ 213.3%
January, 1921.......................................... 195 .2%
December, 1920....................................... 165.0%
November, 1920.......................................188.6%
October, 1920...........................................153.7%
HARDWARE
rM P R O V E M E N T throughout the hardware
trade has been a development of the past month.
emand increased and the volume of business
transacted was considerably greater in April
mm during the previous month, but was some
what below that of last year. Analysis of this
activity shows that the major portion of current
21
LUMBER
H E tone of the lumber industry shows im
provement over the month o f March.
Prices are getting down to a level where they will
be more attractive to buyers and the raw material
T
22
BUSINESS
CONDITIONS
supply is adequate to meet present demand.
The demand for lumber has improved slightly,
as the inactivity which has characterized build
ing and construction during the past months has
apparently been broken to some extent, due to
the favorable weather for repairing and con
struction. The greater part of the repair work
being done is in the outlying districts where
wages seem to be lower. In Philadelphia and
other large cities, high wages continue to retard
building. The executive board of National
Congress of the Building Construction Industry
has inaugurated a national movement to re
habilitate the industry. Their aim is to restore
confidence by eliminating wasteful strife and
substituting a co-operative association which will
unite all factions and interests for the public
welfare.
The production of lumber is approximately
55 per cent of normal, but the supply in the
hands of dealers is fully adequate to meet present
demand. O f the orders received 80 per cent are
being filled from stocks on hand, whereas under
normal conditions only about 50 per cent of the
orders are filled from stock.
The price trend of lumber has been and con
tinues downward, and is now at the lowest point
reached since the war. There is little stability
in the market for Southern Pine and Douglas Fir.
The figures shown in the charts below were
compiled from average monthly quotations taken
from the American Contractor, and cover a
period from January, 1919, to March, 1921. These
have been classified into the two most important
structural woods, Southern Pine and Douglas
Fir. It will be seen that these two grades of
lumber started to move upward in M ay, 1919,
reaching their peak in April, 1920, and since then
they have been coming down. Some grades of
hardwood flooring have dropped as much as $100
per thousand feet.
The number of men employed in the various
lumber mills and yards has decreased consider
ably since the first of the year.
B U S I N E S S
C O N D I T I O N S
Cancellations have become almost nil and are
no longer a source of annoyance. The majority
°f reporting firms characterize collections of
outstanding accounts as good.
P A IN T
V IG N IF IC A N T improvement in the paint industry has been noted during the past month.
Uus is attributed to the decline of prices and a
much increased demand due to the impetus which
the mild spring weather has given to house paintlng- M any men temporarily out of employment
are taking advantage of this opportunity to
Renovate both the exterior and interior of their
uotnes. During the period of high prices many
People postponed painting their houses until it beeame imperative to do so in order to preserve them.
According to manufacturers, reductions since
ast November approximate about 25 per cent on
a * heavy paints, including house paints, but
Quotations on stains, varnishes and enamels are
holding relatively firm.
Raw materials are said to be in ample supply
and the prices of these are lower. To illustrate
le reductions which have occurred, we list
elow the high and present prices on some of the
°us used in the manufacture of varnish and paint:
High
Present
price
erilla oil at Pacific coast................... 30.25 lb. 30.07 lb.
~°ya bean oil.............
.04 lb.
.18 lb.
E^ina wood oil (coast)........................ .30 lb.
.07'A lb.
Linseed oil.
.51 gal.
2.00 gal.
(in tanks)
.58 gal.
(in barrels)
Manufacturers are commenting upon the
Method followed by dealers and jobbers in placing
° . ers. They say that where formerly they re
vived only one order in a week from an indiVldual, they now receive from three to five
rOers, which shows that business over the counter is extremely heavy. Shipyards and railr°ads are buying little as yet.
Cancellations are no longer a source of annoyariCe> and collections in general are said to be
good.
23
SHOES
E T A IL shoe stores experienced a most active
^-Easter business and the reports received are
unanimous in the statement that the volume of
sales in terms of both number of pairs sold and
dollars exceeded the 1920 Easter trade. This was
true despite the fact that prices averaged 20 per
cent below the level of last spring. Business con
tinued active during April, and the volume of
sales for the first three weeks compared very
favorably with the similar period of after-Easter
trade in 1920.
Women’s shoes were in much more active
demand than men’s during March, but in April
the sales of men’s shoes showed improvement over
the previous month. Public demand thus far this
spring has been confined almost exclusively to the
specialty goods. For women, the strap effects in
gray and brown kid, calf and ooze have been in
most active request, and blacks have also partici
pated to some extent. Walking oxfords in brown
kid and calf have also been popular. Boots are
totally neglected, and stores report that it has
been impossible to move them at prices much
below present replacement values. Brogues con
tinue to be the leading seller for men.
The deciding factor with most purchasers is
style, with quality and price being given only
secondary consideration. Retailers delayed plac
ing orders for spring goods so long that many
were unable to secure shipments in time for the
Easter trade, thereby losing a portion of business
which otherwise would have been theirs. In spite
of this experience, buyers still refrain from order
ing for future delivery and the business now in
the hands of manufacturers is practically all for
immediate shipment.
M any manufacturers have sent salesmen on the
road with fall samples, but the orders received
have totaled barely 25 per cent of the normal for
this period of the year. Having anticipated this
response to fall openings, other firms have not
concerned themselves with fall goods and have
made no announcements as to prices. The
hesitancy on the part of buyers is attributed in
large measure to uncertainty as to the public
reaction to fall styles and prices. So many
24
BUSINESS
CONDITIONS
retailers are stocked with goods which cannot be
moved that they are unwilling to contract for
future supplies until such times as the public
taste evidences itself in definite form.
In general, it may be said that the shoe manu
facturing industry at the present time is operating
close to capacity and that business for the spring
and summer seasons is approaching normal. The
most encouraging factor in the situation during
the past month was the increased demand for
staples.
While most raw materials continue in ample
supply with prices firm at low levels, a scarcity
has been noted in some of the grades of leather
used in producing those shoes in most active
demand at the present time. Collection condi
tions continue to be characterized as fair.
PAPER
O decided change in the conditions which
prevailed in the paper industry during
February and the first part of March has been
apparent in the month just past. Buyers con
tinue their inquiries, but only a small proportion
of these materialize in actual orders. More cau
tion on the part of consumers of paper is noticed.
Very few of them are placing orders on a price
from one dealer, but there is a decided tendency
to shop around in search of lower quotations.
The expectation of lower prices before the goods
are actually required is leading to frequent post
ponements in the placing of orders. Surveying
the industry as a whole, there has been a weaken
ing demand throughout, with the actual orders
placed barely reaching 50 per cent of normal.
Heavy papers, box board, sheathing and
rougher grades of wrapping paper continue in
lightest demand, while writing paper, print paper,
and the finer grades of wrapping paper, although
not experiencing the same degree of inactivity,
are also decidedly weak. The decline in the
volume of business, which has been taking place
since last October, has caused the dealers to
maintain smaller stocks.
Manufacturers in many cases have continued
to operate their plants for stock, feeling that it
is to their advantage to retain their experienced
N
employees during this period of inactivity. As a
result, jobbers and wholesalers can obtain im
mediately from the mills practically all grades of
paper. This condition prevails in spite of the fact
that the industry is maintaining practically the
same curtailed operations as last month; namely,
60 to 75 per cent of capacity. The employment
situation is also unchanged.
The steady decline in prices on practically all
kinds of paper continued during March and the
first part of April, another rather general drop of
10 per cent having been reported. Present
prices of bond and book papers are now about
equal to those which obtained a year ago, while
prices of rougher grades of paper have dropped
even more rapidly since the peak of last Sep
tember. During 1920, however, the increase
in the price of the rougher papers was larger than
the high-grade bond and writing papers, and
consequently their drop during the general de
cline of the last six months has been more rapid.
There seems to be no real standard for prices at
present, especially for rougher papers, as there
are frequent changes and prices are influenced to
a large extent by competition.
The raw material situation is easy at the pres
ent time and prices continue downward. There
is no real basis for price quotations on pulp or
waste paper however as these prices also are
influenced largely by competition. M any manu
facturers are still operating on pulp wood b o u g h t
at war-time prices.
Practically no cancellations are reported.
Buyers in most instances are not carrying large
stocks and what they buy is usually sold before
it is ordered. There is still a tendency to look
for lower prices and for this reason orders are at a
minimum. Collections are reported as fair ex
cept in sections which depend on agricultural
conditions, where they are reported as poor.
PAPER BOXES
H E latter part of March and early April
witnessed a better demand in the paper box
industry. Inquiries are numerous at present and
indicate that buyers are preparing to place orders
in large volume. The industry has been in an ex-
T
BUSINESS
CONDITIONS
tremely inactive position since last fall, however,
an(a the slight actual increase which has been
ftoticed, although giving a more encouraging
aspect to the situation, has not raised the total de! ^ d to more than 50 to 60 per cent of normal.
nis is at best less than half of the demand of last
year at this time, when plants were operating at
.I2° to 130 per cent of normal. Buyers of paper
0Xes are apparently well stocked with supplies
Purchased prior to the period of inactivity, and
01 ders being placed are for small quantities and
0 varied types. Confectionery lines offer the
smallest demand at the present time while that
<
?r parcel post containers, shipping boxes and
f e like remains fairly steady but for limited
Quantities.
In only a few instances are paper box manufac
turers able to manufacture for stock, practically
a orders being for special designs which are not
avail able for sale in the open market.
there is no uniformity in prices. In the enea.vor to secure the small orders now being
P aced, manufacturers are giving little attention
costs. As a result, the confidence of purlasers has been shaken, and numerous inquiries
are being made before even the smallest orders
are placed.
AH raw materials are easily obtainable at conlriually declining prices. The closing of some
1 s which manufacture board primarily for the
Paper box industry indicates that the demand is
at a low point. Board which sold during the
h, ar f°r $115 to $130 a ton is now selling about
3 °, which is within a few dollars of the pre-war
1 Ve * I here was some feeling of stability in the
^°ard market during the early part of March
j. ln Uct some of the mills increased prices
t gntly, but this disappeared toward the end of
p tnonth and the mills again reduced their
1(yes to the present low level. The various
st'H CS
PaPer Have declined in price, but are
considerably above normal. There has been
e interest shown in patterned papers and in
goods, however.
de
numHer of employees in the industry has
j creased as compared to the figures of January
sj^ ancI as a result labor is easily obtained and
j^°Ws a willingness to meet changing conditions.
eP°rts indicate that skilled labor is not over-
25
J abundant,
however, for most factories are using
every effort to keep their present organization
intact and retain their skilled help. *
Collections are generally reported as fair, but a
number of the larger manufacturers appear to
be in a somewhat better position, characterizing
them as good.
POTTERY
E M A N D for pottery generally is limited and
much below that of a normal year. Manu
facturers of hotel and restaurant ware are excep
tions, however, and while their demand is not so
insistent as at this time last year, it is holding up
well. A recent influx of Japanese ware, cheaper
than the domestic, has had a slightly deterrent
effect upon the market.
Potteries manufacturing electrical and other
porcelain products dependent upon building
activities are extremely dull, operating only a few
days a week. Most plants have endeavored by
curtailing hours of operations to retain practically
their full force, thus insuring to every worker at
least a partial income. The output is going
largely into stock as demand is variously placed
at from only 10 to 33 per cent of normal.
Finished stocks are large and more than
sufficient for present needs. One firm ventures
the opinion that stocks on hand are adequate to
supply a normal demand for 90 days, and could
take care of the present rate of demand for nine
months. This affords a good indication of the
limited demand for these products.
Raw materials are easily obtainable, but prices
are only slightly lower and in most instances con
tinue firm. This is said to be due to the con
tinued call for tableware.
Last month’s prices on finished products have
been maintained, and are on the whole 20 to 25
per cent below peak prices.
Conflicting reports concerning cancellations
would indicate that each plant has had different
experiences. Some report no cancellations of
orders received since January; others character
ize orders as unstable, being revoked a few days
after placement; while an equal number have not
received cancellations but have been requested to
hold for future shipment.
D
26
BUSINESS
CONDITIONS
Collections seem similarly dependent upon in
dividual conditions among the firms, being
reported as good, fair and poor; the last condition
prevails especially in Southern accounts. Those
supplying foreign trade complain that collections
are at a standstill in Cuba and the South
American countries.
WHOLESALE GROCERIES
IM PROVEM ENT was noted in the wholesale
grocery market during March and April. The
volume of net sales for March materially exceeded
the February sales and indications are that April
business has kept pace with that of the previous
month. Increased sales are normally to be ex
pected this time of the year, however. Buyers are
still conservative and both wholesale and retail
grocers are purchasing only for immediate needs
and are confining their sales largely to staples.
The poorest business was done in the mill dis
tricts where shut-downs have occurred with
consequent unemployment.
Although a pessimistic attitude was evidenced
in many of the reports, the figures for March offer
some encouraging features. First, increased sales
and declining prices were reported during the
month as compared with February, and as com
pared with March, 1920, the decrease in total sales
was not great considering the difference in the
price levels of the two periods.
Prices continued to decline during April, the
general level being about 5 per cent lower than
that of the previous month. Peas, coffee, butter
and cheese have been quite firm as a rule. Dried
fruits, with the exception of California peaches
and prunes, may also be included in this list.
Sugar remained steady during March, but de
clined slightly about the middle of April. The
greatest weakness was shown in canned goods.
There are still large stocks of these goods on hand,
although prices are said to be below the estimated
cost of production. Lard experienced a noticeable
decline. Flour prices have fallen steadily and the
latest quotations on some grades are a dollar
below those of two weeks previous. Slight reduc
tions have occurred in rice and beans. Groceries
of all kinds are easily obtainable and deliveries
are prompt. Wholesalers are hesitant about
making purchases, for stocks of goods on hand
are ample.
Collections are reported as good in many cases
and fair in all others. In general, accounts receiv
able show no change, even though the volume of
sales increased during the same period. A few
concerns reported an increase in accounts
outstanding, but this was more than offset in
practically every case by a greater volume of
sales.
WHOLESALE GROCERY TRADE
Mar. 1921
Mar. 1921
compared to compared to
Feb. 1921
Mar. 1920
Net sales during month..............
Accounts outstanding at end of
month......................................
+ 18.6%
- 2 7 .9 %
0.0%
- 2 5 .1 %
Ratio of accounts outstanding to sales:
March, 1921.......................
90.8%
February, 1921................... .................. 106.3%
January, 1921..................... ....................106.7%
December, 1920.................. .................. 101.3%
November, 1920................. .................. 102.7%
October, 1920.....................
99.3%
TOBACCO
r"PH E past month has witnessed a tendency on
the part of many large concerns in the cigar
manufacturing industry to reduce prices of their
medium-grade cigars. There is a pronounced
demand throughout the trade for a cheaper cigar
of reasonably good quality, and firms which have
not reduced prices on their standard lines have
introduced new varieties at somewhat lower
prices. As a result practically all firms which
have met this demand for low-priced goods have
received, or are beginning to receive, an increased
volume of orders. On the other hand, the de
mand for high-grade cigars continues to be 0*
very limited proportions, and factories dealing
only in this type of goods have somewhat
curtailed their operations. M any small coun
try factories are also operating on a reduced
time schedule, indicating that current de
mand is largely for standard and well-advertised
goods.
BUSINESS
CONDITIONS
Firms which are producing the cheaper prod
ucts have increased production materially and
*re preparing to operate on a full time basis.
7 he industry as a whole, however, is still operatlng considerably below normal. In many quar
ters there is a feeling that even though reductions
nave been made these are rather premature and
therefore the increased operations by concerns
quoting the new prices is not a sign of general
lrnprovement.
The leaf market has been dull throughout the
Past month. Manufacturers are purchasing only
such stocks as they actually need and most of
nem have sufficient supplies on hand for present
Purposes. Packers are well stocked in some
.lnes>but there is a scarcity of old tobacco for use
ln present production, and prices are conse
quently high. There is practically no demand
for filler tobacco of this year’s crop, and as a
result the market is flooded and prices are ex
tremely low. The supply of binders and wrap
pers is somewhat limited, however, and they are
bringing higher prices.
The buying activity on the part of large pack
ers, which was noticed in Lancaster County early
in March, subsided about the middle of the
month. Several weeks later local packers began
combing the county for any remaining high-grade
supplies. Most of the sales were below 16
cents and averaged less than the prices paid by
manufacturers two weeks previous. All the
high-grade tobacco in the county apparently has
been disposed of, so that these activities also
subsided about the middle of April.
Collections are reported as good in some cases
and fair in others.
COMPILED AS OF APRIL 22, 1921
This business report will be sent regularly without charge to any address upon request.
27
28
BUSINESS
CHARGES TO DEPOSITORS’ ACCOUNTS
Other than Banks’ or Bankers’, as Reported by
Clearing Houses
Apr. 15, 1921
Weeks Ending
Mar. 18, 1921
CONDITIONS
RESOURCE AND LIABILITY ITEMS
of Member Banks
in Philadelphia, Camden, Scranton and Wilmington
At the close of business
Apr. 15
Apr. 23
Mar. 18
1921
1921
1920
(In thousands of dollars)
Apr. 14, 1920
33.124.000
33.538.000
33.413.000
Altoona................
4.220.000
Chester.................
5.187.000
5.213.000
6,811,000*
4.927.000
Harrisburg............
6,240,000*
Johnstown............
4.590.000
5,049,000*
4,855,000*
Lancaster.............
5.946.000
5.529.000
7.553.000
Philadelphia......... 290,116,000* 331,786,000* 363,227,000
8.755.000
6.400.000
Reading................
6,308,000*
Scranton...............
16.310.000
13.351.000
15.907.000
11.385.000
Trenton................
10.555.000
10.500.000
8.442.000
8 .0 0 2 .0 0 0
8.070.000
Wilkes-Barre........
4.837.000
4.061.000
4.369.000
Williamsport.........
Wilmington..........
7.235.000
8.463.000
8.240.000
York.....................
4.525.000
4.385.000
5.181.000
Totals............... 3375,085,000* 3412,645,000* 3448,875,000
* Larger number of banks reporting.
Loans and discounts:
3118,566
336,617
Secured by U. S. securities. $ 3 7,76 7
Secured by other stocks and
205,435
198,630
bonds .............................. 202,885
585,067
372,881
All other............................ 366,191
Investments:
44,456
43,971
United States bonds.........
9,427
10,025
10,144
U. S. Victory notes............
U. S. certificates of indebt
59,554
33,354
edness ............................... 21,846
Other bonds, stocks and se
155,842
curities ............................. 156,172
Total loans, discounts and
investments................... 3839.342 3851,439 31,018,422
665,827
Demand deposits................. 632,188 634,660
26,700
38,905
Time deposits...................... 40,950
Borrowings from Federal
187,875
117,522
Reserve Bank..................... 108,748
BUSINESS INDICATORS
STATEMENT
Federal Reserve Bank of Philadelphia
(In thousands of dollars)
Month ago Year ago
RESOURCES
Apr. 15,1921 Mar. 18,1921 Apr. 16,1920
Gold reserve.......................... 3184,724 3184,740 3138,148
3,428
Other cash.............................
3,783
705
Total reserve.................... 3188,152
3188,523
3138,853
Discounts—Secured by U. S.
securities........................... 3104,274 3109,403 3176,231
40,222
41,440
33,160
Discounts—all other.............
16,856
13,482
2,981
Purchased bills.....................
33,642
30,588
32,321
U. S. securities.....................
Total earning assets.......... 3191,940
Uncollected items.................
All other resources................
357,072
592
Total resources.................. 3439,564
LIABILITIES
Capital paid in......................
Surplus.................................
Profit and loss.....................
Government deposits...........
Members’ reserve account..
Other deposits.......................
Total deposits..................
Philadelphia banks:
Loans......................... 3736,003,000
Deposits..................... 615,777,000
119.5%
Ratio loans to deposits
Federal Reserve Bank:
Discounts and collatera
loans...................... 3144,495,612
54.8%
Reserve ratio..............
90-day discount rate..
6%
Commercial paper.........
7 V2 %
3197,967 3244,693
358,941
537
March, 1921
3448,038 3453,949
Apr. 15,1921 Month ago
Year ago
38,600
17,010
38,609
17,010
2,715
103,666
1,097
1,132
101,939
1,215
38,198
8,805
21,018
2,931
104,832
6,312
3107,478 3104,286 3168,412
3439,564 3448,038 3453,949
Percentage increase or
decrease co mpared with_
Previous
Year ago
month
+2.9 % —10.4 %
- 1 . 7 % — 12.3 %
115 %* 117 %*
- 4 . 4 % —23.9%
54 %* 44 % *
6 %*
6
7 %*
7M%*
__ _
Percentage increase or
decrease co mpared with
367,904
699
Federal Reserve notes.......... 3235,815 3241,622 3245,238
Federal Reserve Bank notes..
16,117
17,889
19,020
Deferred availability items..
51,360
56,146
54,337
3,184
All other liabilities................
2,476
4,276
Total liabilities.................
April 15, 1921
Previous
month
Year ago
Bank clearings:
In Philadelphia ........ 31,765,680,000 + 14.0% —17.2 %
Elsewhere in district..
127,377,711 +35.0 % — 5.7 %_
Total.......................... 31,893,057,711 + 15.2% — 16.6%
Building permits, Phila..
2,851,380 + 111.9% —61.2%
Post office receipts, Phila.
1,376,987 + 16.8% — 2.6 %
Commercial failures in
d is tric t (per B rad0 *
52 *
61
street’s) ......................
Latest commodity index
figures:
Annalist (food prices
179,893 - 7 . 6 % —44.0%
only).......................
174,404 - 4 . 2 % —32.4%
Dun’s.........................
113,749 - 4 . 2 % —45.1%
Bradstreet’s ...............
*Actual figures
@FedFRASER