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1 BUSINESS AND FIN A N C IA L C O N D IT IO N S THIRD FEDERAL l|fp> PHILADELPHIA J I L RESERVE DISTRICT MAY I, 1923 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA SUMMARY OF BUSINESS CONDITIONS IN THE UNITED STATES Further increases in the production of basic com modities, in wholesale prices, employment, wage rates, and wholesale and retail trade, took place in March. Production in basic industries, according to the Fed eral Reserve Board’s index, increased 4 per cent in March to a level 8 per cent higher than Production at the 1920 peak and 67 per cent above the low point of 1921. The output of pig iron, steel ingots, automobiles, and crude petro leum, and the mill consumption of cotton exceeded all previously reported monthly totals. Building opera tions showed a further large expansion, and the value of contracts let for residences in March was the highest on record. Railroad freight shipments have been larger every week this year than in the correspond ing weeks of the past four years. Car shortage has been.reduced to the lowest point since September as a result chiefly of the addition of new equipment, a de crease in the number of bad order locomotives and cars,' and a concerted effort to increase the average loadings. Employment in the building trades and in many lines of manufacturing continued to increase in the eastern states. The surplus of unskilled labor in the West, re ported in earlier months, is being gradually absorbed by the seasonal increase in farm work. A number of leading textile mills, steel mills and packing plants an nounced general wage advances ranging between 11 and l2l/ 2 per cent, and numerous wage advances in other industries also were reported. March sales by department stores reporting to Fed eral Reserve Banks were 22 per cent above those of March a year ago, partly because Easter Trade purchases were made in March this year, whereas last year such purchases were largely deferred until April. Stocks of goods held by department stores were 6 per cent larger than those BANK CREDIT BANK CREDIT © 00 MEMBER BANKS IN LEADING CITIES growth in the demand for credit from member banks in leading cities resulted in an increase of held a year ago but this increase was not as large as the increase in sales, and hence the rate o f stock turn over has been somewhat more rapid. Sales by mail order houses were larger than for any month since November, 1920, and 35 per cent larger than in March, 1922. Wholesale trade in all reporting lines was larger than in March a year ago. Wholesale prices as measured by the Bureau of Labor Statistics’ index advanced 1.2 per cent during March, and were 15 per cent above the low Wholesale point of January, 1922. As in recent prices months the prices of metals and build ing materials showed the greatest increases, while fuel prices showed a further decline from recent high levels. Compared with a year ago, metals were 37 per cent and building materials 28 per cent higher. The cost of liv ing increased slightly more than 1 per cent during March to a level o f 3 per cent higher than a year ago. During the month prior to April 11a more moderate Bank "credit a^out $48,000,000 in their loans made largely for commercial purposes, as compared with an increase of $235,000,000 in the preceding month. Through withdrawal of funds from investments and a further inflow of gold, member banks have been able to meet demands of their customers for increased credit and currency independently of the Reserve banks. Consequently, the total volume of Federal Reserve bank credit, measured by total earning assets has re mained relatively constant during the past month, and in fact since the seasonal liquidation at the turn of the year. The volume of Federal Reserve notes in circula tion has also changed but little as the larger demand for hand-to-hand money has been met chiefly by an increase in other forms of money in circulation. There has been little change in money rates from those prevailing in March. TABLE OF CONTENTS 28 Automobiles .................................................. 15 Bankers’ acceptances .............................. 7 Building ........................................................... 12 Cement ........................................................ Clothing ...................................................... 13 20 Coal .................................................................. 16 Coal, anthracite ........................................ Coal, bituminous .................................... 16 16 Coke .................................................................. 17 Commercial paper .................................... Cotton goods ................................................ 8 18 Cotton, raw .............................................. Cotton yarns ............................................ District summary .................................... 17 17 3 Drugs, wholesale .......................................... Drygoods, wholesale ................................... 10 10 Employment and wages............................ 5 PAGE PAGE PAGE Agriculture ................................................ Financial conditions ................................ Floor coverings ........................................ F lo u r ............................................................ Foreign exch an ge...................................... Groceries, wholesale ................................ Hardware, w holesale................................ Hides and skins.......................................... H o sie r y ........................................................ I r o n .............................................................. L e a th e r........................................................ L u m ber....................... National summary .................................. Paint ............................................................ P a p e r ............................................................ Paper boxes .............................................. Plumbing supplies .................................... Pottery ........................................................ Retail t r a d e ................................................ 2 6 22 11 8 11 11 25 21 14 24 12 1 14 25 26 14 14 9 Savings deposits........................................ S ecu rities.................................................... Shirts .......................................................... S h o e s............................................................ Shoes, wholesale ...................................... Silk goods .................................................. Silk, r a w ...................................................... Steel ................. Summary, district .................................... Summary, national .................................. Synopsis of business conditions............ Tobacco ...................................................... Tobacco leaf ............................................ U nderw ear.................................................. Wholesale t r a d e ........................................ W ool, r a w .................................................. W oolen and worsted goods...................... W ool yams .............................................. 7 7 20 23 10 20 21 14 3 1 4 27 27 22 10 19 18 19 I SUMMARY OF BUSINESS CONDITIONS IN THE THIRD FEDERAL RESERVE DISTRICT E A V Y production and distribution, but some what decreased buying, have featured the busi ness situation in the Third Federal Reserve Dis trict during the past month. The decline in demand, however, is not an unfavorable sign, for it indicates that both wholesalers and retailers have adopted a con servative policy. Even where they are unable to secure all the goods they desire, buyers are not placing dupli cate orders, as they did during the boom period of late 1919 and early 1920. N or is there today the great speculative buying of goods which was so prevalent at that time, and which in so large a measure contributed to the reaction. Manufacturers also are following a conservative policy, in refusing to accept business for very distant deliveries. And they are making a con scious effort to keep prices within limits that will assure a steady volume of orders. Quotations on some products, it is true, have risen during the month, but the number and size of these increases have been much smaller than during January, February, and March. These developments, as contrasted with the feverish buying activity and the rapid price increases o f the first three months o f the year, are most favorable signs. The labor situation, however, is serious. Produc tion is proceeding at a high rate, but in view of the number o f orders on the books, it should be greater, arid would be were it not for the acute labor shortage. Manufacturers have been almost unanimous in report ing a scarcity of both skilled and unskilled workers, and wage scales are rising rapidly. A large number of these increases have been made voluntarily in an effort to keep working forces intact, but in other cases they have been granted as the result of demands. Thus far, therefore, there are no important labor disturbances, and the seriousness o f the labor problem is at present almost entirely a matter o f scarcity. The freight situ ation is also retarding production. Some improvement has been made during the month, but it is still far from satisfactory. The heaviest buying in the past four weeks has oc curred in the building material industries. So great has been the call for cement, plumbing supplies, and H a pottery that some firms have been forced to limit the size of the orders they will accept and to refuse entirely the business offered by new customers. Sales of iron and steel products have fallen off considerably, but are still very good. Production of these products and of building materials is proceeding at as high a rate as is possible under the existing labor and transportation difficulties. In the textile industries, a falling off has oc curred in the demand for cotton yarns and goods, and underwear. Cotton goods sales, however, are still heavy and are better than they were in April, 1922. Sales of silk goods have increased during the month, and worsted goods have continued in large re quest. Silk prices have advanced because of wage increases and the higher cost of raw silk, but the prices of finished goods by no means reflect the entire increase in production costs. The openings of the fall lines of carpets and rugs were made early in April, and the volume of business booked, at prices from 5 to 10 per cent above those of last October, was very satisfactory. Almost all o f the textile industries have reported labor shortage and wage increases. The demand for linoleum has continued excellent in spite of price increases vary ing from 2 to 12 per cent. Linoleum manufacturers, too, have reported labor scarcity and higher wages, and also a shortage of some raw materials. Shoe manufacturers have received but little new business during the past two weeks, but they are work ing at a fairly high rate on orders previously booked for late spring and early summer delivery. Here, too, there is a scarcity of labor and wages have been advanced. But prices have not increased, except on some of the novelty shoes. Sales of leather have been much smaller than those of last month. Paper manufacturers report the acceptance o f con siderable business for prompt delivery, but they are refusing future •orders except at prices that will pre vail at the date of shipment. Producers o f book and magazine papers are from four to six weeks behind on deliveries. Paper prices have made no general advance, although in a few cases increases are reported. Paper SYNOPSIS OF BUSINESS CONDITIONS Compiled as of April 23, 1923 Demand Business Third Federal Reserve District Prices Labor situation Finished stocks Collections Supply Wages % Automobiles Good Firm Moderate Cement Good Firm Moderate Scarce Increasing Good Cigars Good Firm U nchanged Good Clothing Fair Higher Some scarcity Some scarcity, skilled Sufficient Advanced Fair Unchanged Fair to good Sufficient Sufficient Unchanged Fair Linchanged Fair to good Sufficient Unchanged Good Sufficient Increased Fair to good Coal, anthracite Good Decreasing Moderate Moderate to light Light Coal, bituminous Fair Decreasing Moderate Coke Good Decreasing Cotton goods Fair to good Firm Poor Decreasing Drugs, wholesale Good Lower trend Dry goods, wholesale Fair Higher Light Moderate to light Light Moderate to heavy Moderate Floor coverings Excellent Flour Fair Higher Advancing slightly Groceries, wholesale Fair Unchanged Hardware, wholesale Good Advancing Cotton yarns j Good 1 Fair Fair to good Light Some scarcity Higher Good Light at mills Some scarcity Firm to higher Fair Moderate to light Moderate to heavy Fair Fair Iron and steel Good Unchanged to higher Unchanged to higher Firm Leather belting Good Unchanged Moderate Some scarcity Leather, heavy Fair Unchanged Moderate Sufficient Leather, upper Fair Unchanged Moderate Sufficient Lumber Good Light Some scarcity Paints Good Moderate Some scarcity Paper Very good Light Scarce Firm to higher Fair to good Paper boxes Plumbing supplies Good Good Firm ' Firm Firm or advancing Firm Advancing Unchanged Some increases Some increases Some increases Firm to higher Scarce Scarce Firm to higher Firm to higher Fair to good Good Pottery Good Advancing Light Light Extremely light Scarce Increasing Good Some scarcity Some increases Fair to good Hosiery, fullfashioned Fair Hosiery, seamless Fair Moderate Some scarcity Firm to higher Moderate Some scarcity Firm to higher Good Light Scarce Increasing Fair Fair Shoes, manufacture Fair to good Unchanged Moderate Shoes, retail Shoes, wholesale Fair to good Fair to good Unchanged Unchanged Silk goods Fair to good Higher Moderate Moderate Moderate to light Scarcity Moderate Some scarcity Underwear, heavy weights Underwear, light weights Woolen and worsted goods Woolen and worsted yarns Fair Unchanged to higher Unchanged to higher Good Strong Poor Higher Poor to fair Good Good Good Good Fair to good Good Fair to good Higher some increases Some increases Fair to good Fair to good Moderate to light Moderate to light Some scarcity Higher Fair to good Light Scarcity, skilled Higher Good 4 Some scarcity Fair to good boxes have continued in good demand, but production has been considerably retarded by a lack of sufficient labor and a heavy labor turnover. The demand for cigars i's now increasing after having declined materially during the last week of March and the first week of April. Some cigar manufacturers report a scarcity of skilled workers, but others state that they have an adequate supply. Operations in the cigar plants in this district average from 80 to 85 per cent of capacity. Cigar prices have not been increased recently, although the cost of production has risen con siderably and is about 15 per cent greater than at this time last year. The bituminous coal market as a whole has been in active during the month and prices have continued to weaken. High grade steam coals have moved fairly well, but the low grades are a drug on the market. Export sales have not reached any great proportions, and shipments have been small, owing in part to the lack o f bottoms and to the higher ocean freight rates. Domestic sizes of anthracite are still in fairly large request, although sales are much smaller than they were last month. Shipments, however, are still very heavy. Independent operators have lowered quotations to a point more in line with company quotations, but this action has not yet been reflected to any great extent in lower retail prices. dries and machine shops, have shown an expansion of from 8 to 76 per cent over the 1922 averages, whereas the clothing, carpet and rug, boot and shoe, and bak ing industries, which supply the needs of the ultimate EMPLOYMENT AND WAGES Employment in reporting plants in principal cities In the manufacturing establishments of the Third Federal Reserve District, both employment and wages increased in March. Our weighted index of employ ment, which now represents 501 reporting firms em ploying over 200,000 operatives, increased from 117 in February to 120 in March, as compared with an average of 100 in 1922. Most of the 31 industries represented in the index contributed to the general expansion in employment, but the increases were not as widespread as in Febru ary. In the latter month only four industries— meat packing, cigars and tobacco, boots and shoes, and cotton goods— reported a decline in employment as compared with the preceding month; whereas, in March three of these four industries showed further declines, and in addition five other industries reported fewer employes than in February. The greater part of the general im provement is attributable to the heavy increases which occurred in the metal manufactures, as the textile group showed little if any improvement, and most of the foodproducts industries showed declines. The expansion of employment during recent months has been much more Pronounced in establishments manufacturing produc tion goods, i. e., those to be used in further manu facturing processes, than in the industries producing consumption goods. Thus, the car repairing, electrical machinery, cement, and chemical industries, and foun- Third Federal Reserve District Employment in industries m anufacturing production goods was [30 per cent greater in March, 1923, than the average of the year 1922, whereas factories producing consum ption goods showedjan increase of only 5 per cent. Apparently this indicates that a much steadier demand exists for the latter class of products than for the former. Source— Federal R eserve Bank of Philadelphia Cities Number of reporting firms Philadelphia . . Camden ......... Wilmington .. . Reading ......... Trenton ......... Chester ........... Allentow n....... Harrisburg .. . Williamsport . . Hazleton ....... Scranton ....... Y o r k ................ E aston............. Lancaster ....... Bridgeport . . . . Bloomsburg . . . Pottstown . . . . Lebanon ......... Wilkes-Barre .. Columbia ....... Norristown . . . Bethlehem....... All oth ers....... 193 16 14 17 18 6 18 9 12 3 14 18 8 7 3 4 4 4 5 3 3 4 118 Total ........... 501 i Index numbers Average 1922=100 ! Number j employed January | [ February | March March 117 107 115 121 100 108 102 110 108 120 109 114 94 112 103 113 109 113 102 89 112 112 110 121 108 115 128 104 125 103 108 100 123 106 120 94 106 107 111 114 113 103 105 110 114 110 121 109 119 122 111 119 102 116 106 128 110 112 154 106 95 111 116 131 107 115 111 113 114 91,262 i 16,057 8,642 7,855 6,926 4,819 3,652 2,710 2,695 2,505 2,460 2,185 1,962 1,906 1,577 1,420 1,271 1,102 1,062 751 631 507 37,689 201,646 Wages and Employment Third Federal Reserve District Average weekly wages Industries Number of _ reporting i firms Index numbers Average 1922=100 Employment Actual January February March March 501 109 113 115 $25.39 Metal products: Automobiles and parts.......................................... j Electrical machinery........................... Foundries and machine sh o p s............................. Iron and steel products........................................... j Locomotive and car construction and repair__ Shipbuilding .......................................................... 19 18 37 32 9 5 110 104 110 127 110 99 108 106 115 129 115 102 114 107 123 132 118 101 Textile products: Carpets and r u g s ................................................... Clothing .................................................................. Cotton goods ..........................................................1 Felt h a ts.................................................................. Knit goods ............................................................ Silk goods .............................................................. Worsteds and w oolen s.......................................... 14 21 17 4 26 37 24 99 106 103 98 103 109 98 104 117 105 103 108 115 104 Food products: Bakeries .................................................................. Canneries ................................................................ Confectionery and ice crea m ............................... Slaughtering and meat packing .......................... Sugar refining ....................................................... 18 8 20 11 3 105 80 108 103 99 Building materials: Cement ......... Glass ....................................................................... Pottery .................................................................... 15 7 10 M iscellaneous: Boots and sh oes..................................................... Leather ................................................................... Chemicals and paints ............................................ Cigars and tob a cco ............................................... Furniture ................................................................ Musical instruments .............................................. Paper and pulp ..................................................... Printing and publishing ...................................... Petroleum refining ............................................... Rubber tires and g o o d s ........................................ 17 29 17 14 17 2 13 20 5 12 All industries January Actual February March March 115 117 120 201,646 27.32 21.45 25.91 28.18 29.50 25.58 121 112 114 119 162 112 127 114 125 120 170 118 131 123 129 128 176 117 7,471 3,417 6,383 21,631 27,920 11,046 107 117 107 96 111 110 110 - 28.09 20.74 22.57 23.87 20.78 18.73 22.07 111 99 104 119 103 105 101 113 99 103 121 105 105 102 113 101 104 121 107 107 98 4.104 3,309 7,115 4,817 5,750 12,922 9,827 105 77 104 103 98 103 97 110 102 110 27.08 18.84 20.44 26.88 29.80 102 109 99 106 88 103 110 100 105 102 105 105 95 102 103 2,876 2,325 4,545 1,685 2,401 122 126 75 114 119 80 131 132 84 29.05 34.97 28.08 103 95 88 104 108 90 108 115 94 7,312 937 1,814 105 111 114 107 105 96 116 108 108 100 104 114 111 115 107 99 111 108 112 106 109 116 107 112 109 102 117 106 113 106 19.45 24.58 26.98 15.79 23.89 26.37 24.84 33.26 25.98 25.58 106 104 123 102 113 109 106 100 103 105 103 104 125 96 113 109 106 105 105 110 101 105 126 93 115 111 104 105 106 118 2,547 8,492 4,989 5,824 2,760 7,951 2,668 4,667 6,211 5,930 consumer, have shown only slight, if any, increases since 1922. This is evident from the accompanying chart, giving a comparison o f the changes in employment in these two groups. Numerous wage increases also occurred during March, so that average weekly earnings rose from $24.74 to $25.39 or 2.6 per cent. The weighted index shows that average weekly earnings in the 31 industries represented are now 15 per cent above the 1922 level and 5 per cent above the January level. As in the case of employment, however, a great divergence exists be tween the different industries, a few showing little or no increase, and others increases as high as 30 per cent over the 1922 average. Index numbers Average 1922=100 ; FINANCIAL CONDITIONS 6 The reserve ratio of the Philadelphia Federal Re serve Bank moved upward in the four weeks end ing April 18, owing to a marked increase in reserves and little change in note and deposit liabilities. Earn ing assets fell from 119 to 100 millions, as a result of declines of 12 millions in discounted bills, of 3 millions in purchased bills, and of 4 millions in holdings of United States securities. For the Federal Reserve Sys tem as a whole, the reserve ratio declined slightly, reserves decreased from 3,193 to 3,178 millions, note circulation fell off from 2,231 to 2,220 millions, and discounted bills increased from 630 to 643 millions. Reporting member banks in the Third District in creased their commercial loans in negligible amount in the four weeks ending April 11, but increased their secured loans from 280 to 294 millions. Investments, too, gained 3 millions, the net result o f an increase of 6 millions in Government securities and of a falling off of 3 millions in other securities. Demand deposits decreased from 711 to 706 millions, and time deposits increased from 84 to 88 millions. An increase of 0.6 per cent in savings deposits dur ing March is reported by 80 banks in this district. „ . Changes in the same month of the three aoings preceding years were: 1920, + 0 . 5 % ; deposits 1921j _ 0.1 % ; 1922, + 0 .2 % . Deposits this year increased from $446,773,000 on March 1 to $449,252,000 on April 1, or $2,479,000, and of this last sum only $62,000 represented the crediting of interest. As compared with the figures of a year ago, the gains have been most conspicuous in the industrial cities out side of Philadelphia. Percentage changes by cities follow : Banking statistics—Third District (000,000’s omitted) Latest * Four 1 weeks ago Eight weeks Reporting member banks: Loans and discounts: Sec’d by U. S. securities___ Sec’d by other stocks and bonds ................................. All others (commercial) . . . . $18 $18 $20 276 333 262 332 237 334 Total .................................. Investments .......................... Total deposits ...................... $627 305 795 $612 302 795 $591 306 777 Federal Reserve Bank: Discounts ................................. Commercial paper ................ United States securities......... Total earning assets ........... Federal res. note circulation. .. Total deposits ........................ Total reserves ........................ Reserve ratio ........................... Savings deposits in the Third Federal Reserve District ago Number of reporting tanks | $50 25 25 $100 198 120 | 236 | 74.2% $62 28 29 $58 26 29 $119 $113 198 205 119 116 216 225 68.1% 70.1% A ltoon a.............. Chester ............... Harrisburg......... Johnstown ......... Lancaster ............ Philadelphia ....... R eading.............. Scranton ........... T ren ton .............. Wilkes-Barre .. . Williamsport .. . . Wilmington ....... York .................. Others ................ Total .............. 5 5 4 6 3 9 3 Per cent increase or decrease April 1, 1923, compared with— March 1923 5 4 5 5 14 + .8 +1.4 +1.3 +1.0 +1.4 + -4 + -6 +2.4 + .04 + -2 - -2 + .3 —3.0 +1.0 80 + 6 6 -6 ! April 1922 April 1921 1 | +13.4 + 6.8 +34.6 + 6.4 +37.0 + 4.5 + 8.4 + 2.4 + 9.4 — 4.0 + 9.3 +17.4 +14.5 + 3.6 + 14.6 — 7.8 +100.1 + 1.3 + 45.3 + 5.3 4 - 11.0 + 16.2 + 7.9 + 8.3 + 14.1 + 18.1 + 23.4 + 10.7 ! + 5.4 + 1 ! 7.7 A * M°.r„ reP°rtinK member banks April 11; for Federal Reserve Bank April 18. Average weekly sales of bankers’ acceptances in this district by five dealers fell off sharply in the five weeks f ending April 15. Demand since then ankers has increased somewhat in other disaccep ances trjcts^ hut js not actjve jn this. Under The level of stock prices on April 20 was materially lower than it was a month ago, and public utility, indus trial, and Liberty bonds also fell off. RailSecurities road bonds, however, gained. Activity in the stock market slackened perceptibly, and up to the 21st of the month there were only 5 mil lion-share days, as compared with 10 in the same period of March, and 11 in February. Comparative averages o f security prices follow : 1923 Month ago Two months ago $101.38 87.35 85.72 82.45 86.65 92.57 97.24 $105.38 89.60 84.49 81.27 87.25 92.90 97.86 $103.56 90.17 87.25 84.04 88.25 94.61 98.62 • April 20, Securities (average prices) : 20 20 10 10 10 10 4 industrial stocks ................ railroad stocks .................. first-grade rail bonds ....... second-grade rail bonds... public utility bonds ........... industrial bonds ................ Liberty bonds .................... 7 the impulse of this improvement, offering rates, which during the first few weeks of the month were from 4 to 4l/% per cent, were marked up to 4*4 and 4^4 per cent, but subsequently declined to 4*4 and 4*4 per cent. The supply of bills is rather small, but twelve banks in this district reported $4,240,000 of acceptances executed in the month ending April 10, as against $3,513,000 in the previous month, and $3,097,000 a year ago. From the dealers’ reports it appears that the exporting of cotton and grain, the importing of coffee, sugar, hides, and silk, and the warehousing of cotton, sugar, and tobacco, are among the transactions giving rise to many of the acceptances executed recently. Comparative weekly averages, based on the reports of the five dealers, are given on page 8. Weekly averages for period— Sales to F. R. Bank Sales to others Purchases 1923: March 12 to April 15........... $1,208,000 $116,000 $525,000 182,000 642,000 February 12 to March 11---2,424,000 135,000 299,000 January 15 to February 11.. 2,815,000 1922: March 12 to April 16........... 2,548,000 439,000 530,000 Sales of commercial paper in this district continue to be small, with the country banks doing most of the . buying. Many other sections of the Commercial country report that an active market paper exists for commercial paper. Chicago, the Pacific coast, New England, and New York are good markets. The supply of commercial paper is not as large as it was early in the year, when, according to figures collected by the Federal Reserve Bank of New York, it had increased from less than $750,000,000 at the end of December to $825,000,000 at the end of February. And it is thought that in recent weeks bor rowers have been using the banks rather than the open market, because they could secure money at the same rate from the banks as from the dealers and save the commission they would otherwise have to pay to the latter. Although quotations are much the same as at the opening of April, more paper is selling at 5 per cent than was the case several weeks ago, when the prevail ing rate was 5l/\. per cent. During the month rates on different offerings have ranged from 5 to 5F> per cent. The following table gives the total sales made in this district by six dealers in each month from May, 1922, to March, 1923, inclusive. Sales by six dealers 1922 M a y ....... June . . . . July ....... August . . September October . November December 1923 January . February March ... $9,588,000 7.372.000 7.238.000 5.985.000 7.864.000 7.033.000 5.717.000 6.788.000 9.477.000 6.825.000 5.932.000 Sales in March, it will be noted, were smaller than in any month save November; smaller even than in August, which is always one of the poorest months of the year. Sales in March to Philadelphia banks totaled only $2,054,500, and the balance, $3,877,500, was taken by out-of-town institutions. Rates varied from 4J4 to 8 5Yz per cent, with a great preponderance of the total at 5 per cent. A rather unusual feature is the report of transactions at 4% per cent; it is seldom that sales are made in less than multiples of JJ. Sales by five dealers in this district in March, 1923, were $4,402,000, as against $7,460,000 in March, 1922, a decrease of more than 41 per cent. And in the same period, according to the report of the Federal Reserve Bank of New York the outstanding commercial paper increased by approximately $125,000,000. Francs have been the center of interest in the foreign exchange situation during the past month, and although . they have fluctuated considerably, first foreign rising sharply and then falling, a com® parison of present quotations with those of a month ago shows little change. Belgian francs have moved in sympathy with French francs and are likewise about the same as they were last month. Sterling has been rather inactive and has lost several points since the middle of March. Numerous reasons are advanced for this, but rather heavy pur chases of American securities are probably the chief factor in the decline. With rising interest rates in this country, capital has tended to flow in from London, and in addition the British Government has been buy ing Liberty Bonds, which, it will be remembered, are acceptable in payment of the debt due to the United States. At any rate there has been a considerable in crease in the number of bills offered on London, and buyers have not been purchasing heavily, partly because of the Franco-German situation. Marks were steady at $.000047 until April 17, when they fell sharply, and on the following day touched $.000032. The efforts of the German Government to stabilize exchange had previously been successful, and upon the Reichsbank’s announcement that it would con tinue its stabilization policy, rates on Berlin improved, touching $.000038 on April 20. Germany has made rather heavy sales of certain neutral currencies that she had recently acquired, and this has been an impor tant cause of lower rates on Denmark, Switzerland, and Holland. Another factor tending to depress these cur rencies has been the drop in sterling. Spanish pesetas have lost several points, probably because of the Moroc can situation. The Far Eastern exchanges, with the exception of Japanese yen, after rising'toward the end of March, fell off rather sharply, following the announcement by the Lmited States Treasury that the Government’s sil ver requirements under the Pittman Act would be filled by July 1. Rates on Argentine and Chile declined slightly, and Brazilian milreis dropped considerably. The decline in Brazilian currency was attributed to an unfavorable trade balance and somewhat depleted gold reserves. Canadian dollars fluctuated within narrow limits and at present show little change from last month. The accompanying table shows the changes that have taken place since last month and also gives comparisons with quotations at this time last year: Foreign exchange rates Noon cables Par value London ................ $4.8665 Paris .................... .1930 Antwerp .............. .1930 Milan ................... .1930 Berlin .................. .2382 Vienna ................ .2026 Amsterdam ......... .4020 Copenhagen ......... .2680 Stockholm ........... .2680 Madrid ................ .1930 .1930 Berne .................... Buenos Aires . . . . .9648 Shanghai ............. .7082 April '20, 1923 March 20, 1923 April 20, 1922 $4.6577 .0666 .0576 .0495 .000038 .000014 .3919 .1891 .2677 .1535 .1816 .8304 .7411 $4.6923 .0651 .0563 .0485 .000048 .000014 .3949 .1918 .2661 .1546 .1853 .8404 .7590 $4.4183 .0931 .0857 .0542 .003524 .000133 .3795 .2122 .2599 .1555 .1945 .8049 .7492 RETAIL TRADE After Easter, retail trade is apt to be dull for several weeks, as a result of the natural reaction from the heavy buying preceding the holiday. This year unusu ally cold and stormy weather accentuated the decrease in retail buying, but recently sales have been improving. Although the total sales for April cannot be expected to show again over those of last April— Easter then falling on the fifteenth— the improved status of trade and the higher prices as compared with last year will compensate for at least part of this difference. Mer chandise in most lines has continued to advance, and on many articles it is becoming more difficult to obtain early delivery. Elousehold goods are in great demand because of the continuance of building in all sections of the country. Prices of furniture and floor coverings have again risen. Nearly all goods for fall trade are considerably higher than were spring and summer lines, and the retailer is exercising caution in purchasing ar ticles that have risen greatly. The following table, compiled from reports of retail merchants in the Third Federal Reserve District, shows Condition of retail trade during March, 1923 C o m p a r is o n Mar., 1923 with Mar., 1922 of N et C o m p a r is o n o f S t o c k s S ales Jan. 1 to March 31, 1923 with Jan. 1 to March 31, 1922 March 31, 1923 with March 31, 1922 March 31, 1923 with Feb. 28, 1923 R ate of T u r n o v e r * | Percentage of brders outstandI ing Mar. 31, Jan. 1 to Jan. 1 to 1923, to Mar. 31, Mar. 31, total purchases 1922 1923 in 1922 Ml reporting firms (136)........ Firms in—Philadelphia ........... —Allentown, Easton and Bethlehem.. . . —Altoona .................. --Chester .................... —Harrisburg ............. —Johnstown ............... —Lancaster ................. —Reading .................. — Scranton ................. —Trenton .................. —Wilkes-Barre ......... —Williamsport........... —Wilmington ............. —York ........................ —All other cities......... + 34.1% + 25.8" +21.7% +18.6 “ + 10.8% + 10.4“ + 9.3% + 8.1 “ 3.1 3.9 2.8 3.6 8.8 + + + + + + + + + + + + + + +23.7 “ +20.9 “ +78.4 “ +21.3 “ +33.3 “ +26.3 “ +27.3 “ +36.5 “ + 1 8 .6 “ +29.4 “ + 14.2 “ +26.0 “ +24.5 “ -i-21.0 “ + 3.2 “ + .1 “ + 9.8 “ + 9.7“ 2.5 2.7 2.1 2.3 8. 0 “ +25.0 “ +13.2 “ +11.2 “ + 10.8“ + 1 2 .5 “ — 5.0 “ +21.8 “ + 9.5 “ A - 7.4“ — 1.7“ +20.6 “ + 1 3 .7 “ +15.6 “ +11.5 “ + 9.6 “ + 9.2 “ + 6.3 “ +12.3 “ + 9.9 “ + 8.6 “ + 7.0 “ + 1 5 .5 “ 2.5 3.0 2.5 2.2 3.4 2.7 2.9 2.2 1.6 2.5 1.9 2.6 2.9 2.1 1.9 2.7 1 2.2 1 2.6 | 2.2 1.3 2.0 1.7 All department stores........... Department stores in Phila.... Depart, stores outside Phila.. .. + 29.8 “ + 21.8“ + 40.0“ +19.9 “ + 1 7 .3 “ +23.3 “ + 11.8 “ + 12.1 “ + 11.3“ + 7.7 “ + 6.0 “ + 10.0“ 3.1 3.7 2.5 2.8 3.5 2.2 All apparel stores............. Men’s apparel stores —in Philadelphia....... —outside Philadelphia Women’s apparel stores —in Philadelphia......... —outside Philadelphia + 47.6 “ +24.8 “ + 6.2 “ +15.5 “ 3.6 3.0 4.4“ + 37.1 “ + 72.7“ +22.5 “ +34.1 “ +23.1 “ + 1.4“ +16.1 “ + 9.5 “ 3.0 1.9 2.7 1.5 8 .8 “ + 43.3 “ + 29.2 “ +27.9 “ + 11.9“ — 6.0 “ + 9.6 “ +11.8 “ +23.9 “ 6.9 3.4 5.2 3.3 4.9 “ 3.7 “ Credit houses......................... + 51.7“ +38.9 “ + 1 6 .8 “ + 6.4“ 2.5 1.9 2.3 “ 37.6“ 29.2 “ 131.4“ 34.0 “ 52.0“ 41.0“ 42.0“ 70.5 “ 30.4“ 61.5“ 37.1 “ 52.5 “ 34.7 “ 42.1 “ Times per year, based on cumulative period. 9 8.5% “ 13.3 “ 5.4 “ 5.0“ ’ 7.8 “ 9.5“ 10.0 “ 8.4“ that the gain in sales, as compared with March, 1922, was 34.1 per cent. This unusual increase is not due altogether to improvement in general business condi tions, but in large part to increased prices, and to the fact that the Easter trade last year fell in April. WHOLESALE TRADE Not only were sales in all o f our reporting wholesale lines larger in March than in February, but they were also heavier than those of March, 1922. The increase over February was to be expected, however, because of the fewer business days in that month. The improve ment over last year’s sales, especially in dry goods and shoes, must be attributed to the influence of an early Easter, to an increased physical volume of trade and to the advance in wholesale prices. This advance in prices is shown in the index of all commodities, com piled by the Bureau of Labor Statistics, which was 159 for March, 1923, as compared with 142 for March, 1922. Sales at wholesale during April have been retarded by the poorer retail demand for shoes caused by the after-Easter dullness, which this year has Shoes been rather more marked than usual because o f the cold weather o f early April. Business is being booked in fair volume, but it is not expected that April shipments will compare favorably with those of last April, because o f the large pre^Easter trade in cluded in that month. Shoe prices have not changed except on very modish patterns, and next fall lines now being shown are therefore meeting with fair success. Collections have improved during the month but are still slow in some parts of the south. During March sales in this district, as reported to the Federal Reserve Bank, increased 115.3 as compared with February and 28.1 per cent as compared with March, 1922. This latter figure was no doubt largely influenced this year by Easter business. The ratio of accounts outstanding decreased from 257 per cent for February to 162 per cent for March and compares with 176 per cent, the figure for March, 1922. March sales of wholesale drygoods showed an in crease of 23.3 per cent over those of February and a still greater gain of 28.6 per cent over Drygoods the figures for March, 1922. How ever, the present demand for drygoods is quiet, and many firms report that since Easter busi ness has fallen off. Except with a few houses, over 90 per cent of the orders on the books are for prompt delivery. The merchandise in greatest request is hosiery, dress ginghams/cotton underwear, and summer dress goods such as voiles and crepes. Prices of nearly all textile products reflect the ad vances in the costs of raw materials and labor, but wholesalers report that so far the raising of whole sale prices has not greatly affected the demand for goods. In some cases it has caused retailers to delay or reduce their orders, but on the other hand a few firms report that business in certain lines has been stimulated by rising prices. Wholesale stocks are not increasing. During March, collections made their customary improvement. This is indicated by the decline of the ratio of accounts outstanding to sales from 230.4 per cent for February to 210.6 per cent for March. Col lections were also more prompt than in March of last year. The demand for drugs from wholesalers is very good, as is reflected in the heavy sales in March, which were 8.6 per cent larger than those of Drugs February, and 5.8 per cent greater than those of last March. That sales in January and February were 21.6 and 9.9 per cent larger respectively than in the corresponding months of last year bears out the assertions that the wholesale drug business is ex cellent. Since January, stocks have been increasing in prep aration for the early summer business and now range from moderate to heavy. The majority of firms re port heavy stocks. Quotations on botanicals in the crude drug markets have been increasing this spring because of the scarcity of many items. Now, however, Condition of wholesale trade during March, 1923 Percentage o f increase or decrease in— Number of reporting firms Net sales March, 1923, compared with— Feb., 1923 Boots and shoes. » . . . Drugs ........................ Dry goods ................. Groceries ................ Hardware ............... 13 16 20 63 35 + 115.3% + 8.6“ + 23.3 “ + 9.7“ + 41.2“ Ratio of accounts outstanding to sales Accounts outstanding March, 1923, compared with— Mar., 1922 Feb., 1923 Mar., 1922 +28.1% + 5.8“ +28.6“ + 12.4 “ +23.6 “ +43.3% + 3.0“ +12.7 “ — .5“ +12.5“ +25.0% +24.1 “ +15.9 “ +17.3 “ +23.7 “ 10 Mar., 1923 : Feb., 1923 ; 162.0% ! 257.0% 138.4“ 1 131.5 “ 210.6 “ 230.4 “ 117.0“ . 106.3 “ 160.1 “ 199.5“ Mar., 1922 176.0% 112.5 “ 233.6“ 102.1 “ 159.2 “ the arrival of shipments from abroad has caused prices on some items to decline, and during the past month the index of botanical drugs has remained unchanged, as may be seen from the table below. Quotations on menthol weakened because of the arrival of a shipment from Japan. In the heavy chemical group, the chemical metal derivatives, such as copper sulphate, sugar of lead, and tin and zinc salts have been verv strong on account of advancing prices of the basic metals during the first quarter of the year. Of 40 botanicals (normal— 136) . Of 35 drugs and fine chemicals (normal—60) .......................... Last month Last year 151.7 151.8 106.4 171.6 172.8 152.2 Index numbers of wholesale grocery sales (Average sales in 1922=100) January .................. February ................ March .................... April ...................... Mav ........................ June ........................ July ......................... August .................... September .............. October .................. November .............. Decem ber................ Price index numbers* Week ending April 23 The following table gives index numbers of whole sale grocery sales, based on reports of 38 firms in this district: 1919 1920 1921 1922 1923 112 94 107 116 138 137 152 131 142 154 162 138 151 135 167 170 178 200 199 137 152 136 140 118 103 99 118 101 100 106 104 115 107 111 108 93 88 86 96 83 97 105 94 140 102 114 117 116 110 107 115 *' Compiled by “ Oil, Paint and Drug Reporter.” Almost half o f our reporting firms have advanced wages. A few report some scarcity of help, espe cially of female workers. The decrease in the ratio of accounts outstanding to sales from 138.4 per cent for February to 131.5 per cent in March was to be expected, but collections are less prompt than they were in March of last year. Sales in March, as reported by 35 wholesale hard ware firms, were 41.2 per cent larger than those of February, and 23.6 per cent above those Hardware of March, 1922. Our index of sales increased from 89 in February to 122 in March. Demand for practically all products is good, and although there is some tendency to dupli cate orders, it is not widespread. Stocks are heavy in the majority of cases, and in spite of the large sales are generally increasing. Prices continue to ad vance, and not a few’ houses find considerable resistance is being offered to the higher quotations. Collections are somewhat slow and are about the same as they were a year ago. The March ratio of ac counts outstanding to sales was 160.1, as compared with 199.5 for February, and 159.2 for March, 1922. During the past month the demand for groceries at wholesale has barely held its own. Although many firms report that their present volume Groceries of business is about the same as that of a month ago, others report a de crease. March sales were 9.7 per cent greater than those of February and 12.4 per cent larger than the sales of March, 1922. Future orders for goods of the 1923 pack are somewhat larger than were the future orders at this time last year, but they are not as plentiful as usual. However, orders for Wiscon sin canned peas are reported to be good. 11 Wholesale stocks are moderately light, and in the great majority of cases they continue to decrease. As far as can be determined, retail stocks range from light to moderate. The memory of 1920 has caused retailers to buy more conservatively. Since canned goods must be used by housewives for some time yet, they are in ready demand by retailers. The most active commodities last month were canned vegetables, canned fruit, sugar, dried fruit, cereals, macaroni, flour, and coffee. In general, wholesale prices have changed but little. However, refined sugar has fluctuated between 8.60 cents and 9.85 cents a pound. Soaps and paper bags have advanced. Although the freight congestion is being slowly re lieved, deliveries are still delayed. To many points it is necessary to allow from 50 to 100 per cent more time for shipments than was allowed before the war. Collections improved as usual during March, and the ratio of accounts outstanding to sales fell from 117.0 per cent for February to 106.3 per cent for March. However, in comparison with the ratio of 102.1 per cent for March, 1922, this year's figure was higher. FLOUR Although domestic purchases of flour are larger than they were a year ago, foreign buying is lighter, and millers state that the demand is only fair. The flour market has remained practically stationary since Feb ruary, and the demand show’s little or no improvement over-that of the previous months of this year. Bran, middlings, and other mill feeds were in exceptionally good request during the first three months of the year, but some mills report that their sales of middlings have declined sharply this month. The call for bran and other feeds, however, is still strong. On account of the heavy buying, millers have been getting from 10 to 15 per cent more for feeds this year than they got in April, 1922. Flour prices, however, are from $1.25 to $1.50, or from 15 to 18 per cent, lower than last year. And wheat is about 20 cents per bushel, or 15 per cent, lower. In March, exports of flour from the port of Philadel phia were forty thousand barrels less than in March, 1922. Exports of wheat, however, were two million bushels larger, while exports of corn were nearly 1% million bushels less. The rising price of corn and the relatively low cost of wheat seem definitely to have checked corn shipments and increased wheat exports. The countries of Europe, which are our best grain cus tomers, have found that they can buy wheat nearly as cheap as corn, and are therefore buying more nearly as they did before the war. The following table, based upon statistics compiled by the Commercial Exchange of Philadelphia, shows how the exports of grain and flour in March, 1923, from the port of Philadelphia, compare with those in March in the two previous years : Exports of flour and grains from port of Philadelphia Exports March, 1923 ....... February, 1923... March, 1922 ......... March, 1921 ....... .. .. .. .. Flour Wheat Corn Rye (bbls.) (bus.) (bus.) (bus.) 33,002 40,559 73,865 36,445 4,231.275 3,262,915 1,965,645 1,471,654 561,711 1,504,813 1,756,790 1,996,269 64,786 17,143 58,502 45,894 Receipts of flour and wheat at Philadelphia were con siderably heavier during the first three months of 1923 than in the first quarter of 1922. The increased wheat shipments were largely absorbed by foreign countries and were exported, but the heavier flour shipments were absorbed by local consumers. The consumption of wheat by Philadelphia millers is not as heavy as it was a year ago, and apparently western millers are sharing in the Philadelphia market to a greater extent than they did last year. The following figures, gathered by the Commercial Exchange of Philadelphia, show the re ceipts and exports of flour and wheat for the port of Philadelphia during the first quarter of 1923 and of 1922: Receipts and exports of flour and wheat 1923 Receipts Flour (bbls.) .. 900,005 Wheat (bus.).. 13,848,402 Exports Flour (bbls.).. 94,614 Wheat (bus.).. 13,015,620 1922 Increase 713,966 11,842,127 186,039 2,006,275 139,271 8,934,991 4,080,629 Decrease 44,657 Philadelphia public warehouse stocks of both flour and wheat were 33 per cent greater on April 2, 1923, than they were a year ago, and slightly greater than on March 1. Public warehouse stocks j Flour (bbls.) Wheat (bus.) i April 2, 1923 . . ...................................... j 211,072 xMarch 1, 1923 . ...................................... 200,854 April 1, 1922 .. ...................................... 1 153,028 2.153,108 2,027,632 1,578,268 1 he average of mill operations in this district is about from 70 to 80 per cent. The mills in inland cities, which are dependent only on domestic trade, are running at capacity, but the seaport mills, which do considerable export business, are operating at only 60 per cent. Most millers have large supplies of grain on hand, but their stocks of finished products are light, as very few mills will accumulate stocks. A scarcity of both skilled and unskilled labor is noted at many mills, and recently a general advance of 5 per cent in wages was granted. Collections are rather slow and on the whole are only fair. The Department of Agriculture on April 1 estimated the condition of winter wheat in the whole United States to be 75.2 per cent of normal. The total pro duction, the department estimates, will be 572,317,000 bushels, as compared with 586,204,000 bushels, the final estimate of the 1922 crop. This forecast has served to stiffen wheat prices, and since the first of the month cash wheat prices have advanced about 8 cents per bushel in the Philadelpia market. Future quotations on the Chicago market for May wheat have risen about 5 cents per bushel, or a little more than 4 per cent. BUILDING The value of building permits issued during March in fourteen cities of the Third Federal Reserve District reached the impressive total of $31,844,831, as com pared with $9,877,412 in February. As is shown in the table below, permits issued during March, 1922, totaled $14,116,292, or less than one-half the value of those is sued last month. In Philadelphia alone permits amounted to $21,064,685, a new record, the previous high point being $13,190,220 in June, 1922. Two-story dwellings accounted for $7,503,675, or nearly one-third, of the permits issued in Philadelphia. _ Wholesalers continue to report a good demand for building lumber, although there has been a slight lull in buying during the past few weeks. This Lumber is chiefly because retail dealers are carry ing heavy stocks which, though largely sold, they have not been able to move from their yards because of bad weather or shortage of labor. With manufacturers, business has continued to be excellent, and many report even larger orders than during the previous month. In not a few cases manufacturers are refusing further orders' or limiting the size of those they are accepting. The bulk of the demand is for delivery within sixty days, and practically no commit ments are being made for delivery beyond that length of time. Wholesale dealers report little change in quotations during the past month, but prices have been quite firm, and the slackened buying has tended to check further advances. Numerous manufacturers, however, have marked up their lists somewhat. Manufacturers’ stocks vary greatly, but in general they are either moderate or light. Operations average nearly 90 per cent of capacity, and in several cases scarcity of labor, especially skilled labor, is causing a curtailment. Because of this, wages to both skilled and unskilled workmen have been advanced from 5 to 25 per cent during recent weeks. Collections with manufacturers are fair, and some wholesalers report them to be good. In both cases they show little change from last month, but several find them slower than they were a year ago. Portland cement manufacturers in this district are re ceiving exceptionally heavy orders, indeed, in some in stances they are refusing further business, Cement and in a few cases are making commit ments only to old customers. Sales are larger than those both of a year ago and a month ago. A large proportion, probably two-thirds, are for future delivery, and of these over one-half are for delivery more than 90 days in the future. Manufacturers are scrutinizing orders carefully and are avoiding any busi- Shipments and production of Portland cement in March were con siderably above those for the same m onth of the previous two years. Stocks are now decreasing, as is usual at this season. The figures for production and shipments in 1920 are m onthly averages. Source— U. S. Geological Survey ness that appears speculative; nevertheless, it is felt that some duplicate orders have been placed. Practically all the plants in this district are now pro ducing at capacity, and stocks on hand vary from moderate to heavy. In most cases, however, stocks are decreasing and will doubtless continue to do so, as is customary, until the fall, when they will again begin to accumulate. The accompanying chart shows the monthly production and shipments, and the stocks at the end of each month, since 1920, and average monthly shipments and production for the year 1920. Building permits issued and their estimated cost—M arch, 1923 Third Federal Reserve District January to March, inclusive 1922 1923 Permits Operations Estimated cost Allentow n.................. Altoona ..................... Atlantic C it y ............. Camden ...................... H arrisburg................ Lancaster .................. Philadelphia.............. R eading..................... Scranton .................... T ren ton ...................... Wilkes-Barre............ Williamsport ............. Wilmington .............. Vork . ................... Total for December 122 170 335 110 120 121 1,359 304 122 168 94 45 107 131 3,308 * Do not report operations. 215 175 335* 184 272 121 2,615 324 122 216 94* 45 107 131 4,956 $1,265,120 285,021 1,087,605 737,400 2,961,355 386,670 21,064,685 878,525 586,503 1,171,084 235,256 478,440 235,922 471^45 $31,844,831 Permits : Operations Estimated cost ! 106 171 399 120 93 141 1,464 379 129 156 93 105 82 | ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... 119 3,557 ......... ......... 13 1923 1922 Permits Estimated cost Permits Estimated cost $157,195 267,328 970,659 369,150 307,300 387,250 9,210,010 983,735 284,967 472,423 347,037 149,425 97,457 112,356 175 263 726 205 186 174 2,874 552 202 276 173 82 230 249 $1,464,345 454,006 2,951,069 1,395,861 3,188,105 748,195 34,368,745 1,434,055 894,713 1,978,616 451.901 523,125 930,956 705,695 160 265 859 240 145 196 3,682 612 182 251 189 148 169 163 $375,195 384,427 2,312,748 1,003,015 905,375 542,750 19,002,765 1,346,936 462,322 636,203 688,797 210,185 1,247,844 151,591 $14,116,292 6,367 $51,489,387 7,261 $29,270,153 it will be noted that both production and shipments are larger at present than they have been for the past two years, and that although stocks are heavier than they were at this time in 1921, they are somewhat below those of the corresponding period of last year. Stocks of raw materials for the most part are moderate and show little change. In spite of the heavy demand, prices have not been advanced since last October, and although present quo tations are lower than those of the peak of 1922— which was reached in late summer— they are somewhat above those prevailing at this time last year. Costs of pro duction are advancing, and practically every establish ment during recent weeks has granted wage increases varying from 5 to 25 per cent, to both skilled and un skilled labor. Unskilled labor, which is the more im portant in the cement industry, is especially scarce. The freight situation on the whole appears to be satis factory. Collections vary from fair to good and, as compared with those both of last year and of last month, show no change. The majority of paint manufacturers report con tinued good business, but certain makers of colors and of special paints find it only fair. In some Paint lines higher prices have caused the loss of numerous orders, and it is said that in colors there is considerable competition from foreign sources. Among the larger manufacturers operations are at or near capacity, and no great scarcity of labor has de veloped. For the most part employees have been with manufacturers for many years, and labor turnover is relatively small. The chief problem facing producers is the steadily rising cost of raw materials, especially lead and linseed oil. The market for these is very firm and in some cases they are difficult to obtain. Collections have been rather slow, but have recentlv improved somewhat, although they cannot be classed as better than fair. So great is the demand for sanitary pottery that many manufacturers have limited the size of orders, and others have declined to make further Pottery commitments. The Brotherhood of Opera tive Potters has been on strike since November 1, 1922, and the consequent reduction in operations has prevented any increase in stocks, so that goods at present are being shipped as soon as manufac tured. The great majority o f orders are for immediate delivery, but in many instances delivery will be impos sible for several months. Stocks are for the most part light or only moderate; indeed, some manufacturers report them lower than ever before in their experience. Supplies of raw materials, too, are only fair, but there seems to be no difficulty in procuring them. Because of the strike there is a distinct shortage of skilled labor, and unskilled labor also is scarce. Sev eral operators are now breaking in new men, and this has relieved the situation somewhat in the past few weeks. Wage increases varying from 5 to 16 per cent have been granted in nearly all cases to both skilled and unskilled labor, but wages of skilled labor are still below those paid when the strike began. Operations average about 75 per cent of capacity, but many manufacturers whose production is low at present, state that they ex pect to be running at capacity as soon as their new men are better trained, and this they believe will be a mat ter of only a few weeks. Prices are strong, and some increases have been made during the past month. Because of the heavy demand, little or no resistance is being offered to these advances. Collections vary from fair to good and show prac tically no change since last month, although certain operators find them more prompt than they were a year ago. Manufacturers and dealers in plumbing supplies re port an excellent demand for their products, and in some cases they have been obliged to limit riumoing sajes ancj tQ refuse not a pttle business. pp Several of them are unable to accommo date any new customers. Orders for the most part are for immediate delivery, but certain manufacturers are unable to make delivery for some time in the future. Under these conditions, prices have advanced, over those prevailing last year and over those of a month ago. Here and there considerable resistance is being offered to these increases, but this has not affected sales appreciably. Stocks vary considerably, but in general they are moderate or light, although certain manufacturers and dealers report them to be heavy. Where stocks are heavy there is of course no difficulty in making imme diate shipments. Among manufacturers operations average about 90 per cent of capacity, labor supply usually being the controlling factor. The supply of both skilled and unskilled labor is reported to be short, especially of skilled workmen. In the majority of cases wage increases of from 5 to 25 per cent have recently been granted to both classes of workers. The freight situation is still hampering business to some extent, but an improvement has been noted in re cent weeks. Collections on the whole are fair, and though they have changed but little during the past month, are slower in many instances than they were at this time last year. IRON AND STEEL A slight lull in buying has developed in the iron and steel industry during the past two weeks, but the fever ish activity that characterized the market earlier in the year could hardly be expected to continue indefinitely. The larger interests especially have curtailed buying, as they had already made extensive purchases. How ever, the call for most products has continued good. Manufacturers o f iron and steel castings report a brisk demand, and some of them have been obliged to limit the size of orders. Forging shops are fairly busy, but some are having difficulty in securing raw materials. Plates and structural shapes are in such good request that producers are accepting only limited portions of the orders they receive. Pig iron manufacturers too are busy, and many of them have their books filled for the second quarter of the year and have made substan tial commitments for the third, although now they are receiving fewer inquiries. Machinery and tools are moving well, and the majority of orders are for imme diate delivery. The active business of the entire industry is reflected in the statement of unfilled orders of the United States Steel Corporation. On March 31 there were 7,405,332 tons, an increase of 119,343 tons over those of February 28. That there was not a greater relative increase is evidence of the high rate of shipments. The accom panying chart shows the monthly production of pig iron, together with the composite price of several grades. It will be noted that the output for the first three months of 1923 exceeds that for the preceding five years, and that prices have returned to about the level of 1919. Although quotations have been firm dur ing the past week, there have been many increases from the prices prevailing during the middle of March. Philadelphia 2 X pig iron, however, is unchanged at S32. The “ Iron A ge” composite price of pig iron on April 17 was $30.79, as against $29.96 on March 13, and the same journal’s composite price of finished steel during that period advanced from 2.710 cents to 2.810 cents. Source— “ Iron A ge” 15 Operations are at an exceptionally high rate, and during March new records were made in the output of both steel ingots and pig iron. Pig iron produc tion totalled 3,521,275 tons. The nearest approach to this was in October, 1916, when 3,508,849 tons were produced. The output of steel ingots during Marchj by 30 companies that made 87.50 per cent of the total in 1921, was 3,402,007 tons, as against 2,919,017 tons in February. The highest previous figure had been 3,352,196 tons in October, 1918. A gain of 15 active blast furnaces was made during the month, bringing the total to 293 on April 1. In this district 6 furnaces were blown in, and 39 are now in blast. The average per centage of operations for the various branches of the industry in this district is about 90. Almost daily the shortage of both skilled and un skilled labor becomes more acute, and in many cases lack of labor has been an important cause of curtailed production. On April 9 the United States Steel Cor poration announced an 11 per cent increase in wages, which brings the hourly wage for common labor to 40 cents, a 20 per cent advance to 36 cents having been granted on September 1, 1922. This action of the Cor poration was followed by numerous independent com panies. The average weekly earnings of employees in the iron and steel industry, as reported to the Federal Reserve Bank of Philadelphia by 32 firms, increased in March from $27.57 to $28.18. The wage index of iron and steel workers advanced from 129 to 132. Collections, on the whole, are unchanged from last month and may be classed as fair. AUTOMOBILES Sales of both passenger cars and trucks during the past three months have in general been considerably larger than those in either the first or last quarter of 1922. In only one or two instances has there been a slight falling off. As regards pleasure cars there is a distinct and growing preference for closed bodies, and the percentage of sales of this type is increasing. In numerous instances dealers are behind on deliveries, either because they have been unable to obtain sufficient cars from the factory, or on account of the earlier buy ing by customers this year. As a result, stocks in most cases are considerably lighter than is customary for this period. Indeed, some dealers state that never in their experience have their stocks been so depleted at this season of the year. To supply the demand, manufacturers have pushed production to such an extent that output during March was the highest on record, totaling 318,424 passenger cars and 34,593 trucks. The ratio chart on page 16 shows average monthly production of passenger cars and trucks for 1919 and 1920 and for the first six months of 1921, and actual monthly production thereafter. It will be noted that the output of passenger cars for the first three months of 1923 is far above that for the cor- AUTOMOBILE 1922 is given below. l"he small production during the first two weeks of April last year was due to the out break of the miners’ strike. PRODUCTION IHUUbAMIS CARS / Passencjer car . Week ending lO O 1923 1922 / 50 Trucks March 2 4 ...................... 2,126,000 net tons 2,095,000 1.896,000 “ March 21 ...................... 2,008,000 “ 9,000 “ April 7 ........................ 1,602,000 “ 6,000 “ April 1 4 ........................ 2,067,000 “ •• •• ■ / *17 io 1 5 1 1919 1920 1921 1922 1923 Production of both passenger cars and trucks in March set a new record. For 1919, 1920, and the firstsix m onths of 1921, average m onthly, instead of actual, production is shown Source— National Automobile Chamber o f Commerce responding period o f last year, which year, it will be remembered, set a record of over 2,500,000 cars. At the present rate the total for 1923 will easily exceed that o f 1922. Manufacturers are experiencing some trouble in the delivery of raw materials, steel being especially difficult to obtain. In addition, prices on nearly all materials are rising. Prices of cars, how ever, have been steady on the whole, although one or two small advances have recently been made. An off setting factor tending to hold prices in check, in spite of the rising costs of materials, is the strong competi tion among manufacturers. Collections are good, and dealers state that they are having no difficulty in obtaining payments that fall due under financing plans. COAL As usual at this season, the demand for domestic sizes of anthracite has slackened to some extent, but sales are still large and shipments are heavy. Anthracite The market for steam sizes, however, continues to weaken, and many oper ators who have space have commenced storing. The large tonnage of bituminous coal that is coming on the market has, of course, affected considerably the demand for steam sizes of anthracite. Production has been maintained at a high level, aver aging over 2,000,000 tons a week, with the exception of the week after Easter, when the holidays caused a reduced output. Shipments during March, as reported to the Anthracite Bureau o f Information, amounted to 7,183,518 tons. Only six times before have shipments exceeded 7,000,000 tons and that was during the war years of 1917 and 1918. Estimated production for the past four weeks and for the corresponding weeks of net tens “ “ “ *• “ “ Operations in most cases have been maintained at capacity, and the supply of cars has been adequate. A slight scarcity of miners is reported in a few instances, and occasionally a local strike has developed; but the labor situation in general is good. Several independent operators have reduced their list prices on domestic sizes, bringing them more into line with company quotations, and both independent and company mines have lowered their quotations on pea coal and the various grades of buckwheat. Independent prices on steam sizes are now in line with or below company rates. Retailers report that collections from industrial users are good, but that from householders they are only fair. The bituminous market has continued to be sluggish during the past month, and the chief demand has been for the higher grades of steam coal. Bituminous Low sulphur gas coals are only in fair demand, but high sulphur Fairmont gas coal is somewhat more steady, largely because of the export demand. Certain operators are closing con tracts for export in May and June, but temporary lack of bottoms and increasing shipping rates have some what affected sales. Rates to Hamburg and the French Atlantic ports since March have advanced about fifty cents a ton. In the domestic market the most active buyers are the industries, especially iron and steel plants. Railroads and public utilities have bought but sparingly. Several embargoes are still in force to New England points, shipments thither being possible only with permits, and this has had considerable effect upon business in this district. Prices on many grades have continued to weaken, and pool 10 grade is now quoted at from $2.45 to $2.85, as against $3.20 a month ago. The lower prices have tended to force the closing of some high-cost mines that produce an inferior grade of coal, but these shut downs have as yet not resulted in a better car supply for the other mines. Because of the continued lack of cars, operations in this district average no more than 50 per cent of capacity, and the supply of miners is ample. In spite of these factors, production continues at a high rate and has averaged nearly ten and a half million tons a week, except in the week following Easter, when the holidays caused a reduction. Esti- mated total output for the last four weeks was as fol lows : Week ending: / March 24 .................................................... March 31 .................................................... April 7 ................................................... April 14 ...................................................... 10,428,000net 10,430,000 “ 9,629,000 “ 10,393,000 “ tons “ “ “ A recent study by the United States Geological Sur vey of stocks of commercial coal indicates that on March 1 they were about 36,000,000 tons, as against 38,000,000 on February 1. These figures indicate the high rate of consumption caused by heavy operating schedules in most industries. The coke market has weakened considerably during the past month, partly because many furnaces have cov ered their needs, and partly because export Coke shipments have been curtailed by congestion at ports. Production, on the other hand, has continued at a fairly high rate, and the estimated output of bee-hive coke for the last four weeks is as follow s: Week ending: March 24 ....................................................... March 31 ..................................................... April 7 ......................................................... April 14 ......................................................... 384,000 388,000 428,000 420,000 net tons “ " “ “ “ “ Mississippi. The weather during the coming montn will be a factor of prime importance in determining the size of this year’s crop. Domestic takings and exports of American cotton In bales Season of Season of Season of 1922-1923 1921-1922 1920-1921 Northern mill takings to April 20 2,107,006 1,935,815 1,495,091 Southern mill takings to April 20 3,792,983 3,058,302 2,144,821 Total American mill takings to April 2 0 .................................... 5,899,989 4,994,117 3,639,912 Exports to April 20.................... 4,211,971 4,614,029 3,963,153 The table above shows that although the exports of American cotton are somewhat smaller this year than they were last, the domestic takings are so much heav ier that the total consumption to date is half a million bales larger than last year’s and about 2 ^ million bales larger than that of 1921. How far this consumption has reduced the supply of American cotton is indicated in the table below: Supply and takings of American cotton Because of the decreased demand, quotations have softened since last month. Connellsville furnace grade on April 17 was quoted atj$6.00, as against $7.50 on March 20; and during the same period foundry grade declined from $8.50 to $7.00. COTTON 1 In bales Season of i Season of I Season of 1922-1923 j 1921-1922 1920-1921 1 Visible supply, American, at end o f previous season (July 31) 1,968,159 4,112,651! 2,943,882 ! Crop in sight, American, to April 2 0 .................................... 10,248,940 9,133,532 9,170,769 1 Total .................................... 12,217,09913,246,183|12,114,651 Visible supply, American, on April 2 0 .................................... 1,974,538 3,518,464 4,494,520 Strong as is the statistical position of the old cotton crop, the uncertainty regarding the size of the coming yield caused the price o f spot cotton to W orld’s takings o f American to Raw decline in the period following March 19 April 2 0 ...................................... 10,242,561 9,727,719 7,620,131 cotton until it reached 28.55 cents a pound on April 2. Since that date the market has fluctuated vio lently, and on April 21 the price fell to 27.30 cents a The chart on page 18 shows the large discrepancy pound. Although the total domestic consumption in between world supply and world consumption during March was the largest ever known, the average daily the last two years that resulted from two short crops. consumption decreased. Among the other causes of the If the consumption of cotton is as heavy this year as it reaction in cotton prices has been the heavy selling of was last, the damage done to the American crop by the the new crop, which tended to widen the spread be boll weevil will largely determine whether or not there tween the old crop quotations and the new. Other bear will be another deficit this year. The dulness in the cotton yarn market during the ish factors have been the larger sales of fertilizer in the South and the prospect of an increased acreage. These past month has resulted from the fact that customers generally had covered their requirements have been offset, however, by the same bullish argu and preferred not to buy heavily until the ment as has affected the cotton market all winter, Cotton yarns effect of the coming crop reports on the namely, that visible stocks, which are already low, are being rapidly depleted. Although the weather reports trend of raw cotton prices is more apparent. Conse have been both favorable and unfavorable, rains have quently, few large contracts were placed, and the new delayed planting in much of the cotton belt east of the business transacted was verv small. However, some 17 T he dark shaded areas show the seasons in which the world’s supply of cotton failed to equal the consum ption. Although the consum p tion during the last two years was the heaviest since the end of the war, the crops were the sm allest since the bumper yield in 1914-1915 and as a result stocks have becom edepleted. Sources— Department o f Comm erce, “ Cotton Facts,” “ Journal o f Com m erce” customers have requested shipment on orders that they had previously held up. O f the future orders on the books, 65 per cent on the average are for delivery within 60 days, and about 30 per cent during the month thereafter. After holding firm for several weeks in the face of a falling cotton market and a dull demand, quotations on carded yarns declined during the second week of April. Prices on combed yarns continue to be extremely low in comparison with those on carded and on some counts are almost the same. During the war the large profits made on combed yarns caused a surplus of equipment to be installed for spinning them. Now that they have been replaced by carded yarns for many uses, such as the manufacture of tires, combed yarns are in excess supply. Stocks of yarns are fairly light. The mills located in this district have moderate, but decreasing, supplies of raw cotton. They report an adequate supply of labor. Wages have been increased from to \2]/2 per cent for skilled labor and from 5 to 10 per cent for unskilled. The freight situation has improved greatly, but ship ments to points in New England are still delayed. Col lections are fairly good, and are much better than they were last January. The weakness of the raw cotton market which began near the end of March has caused new orders for cot ton goods to diminish, and the demand is Cotton not as strong as it was during the first goo s three months o f the year. Still, the busi ness booked in most lines has been fairly good, and in comparison with that of the same period in 1922 it is 18 decidedly better. Narrow fabrics and mohair plush are in good request, but the call for cretonnes and other draperies has been only fair. The falling off in demand affected cloth quotations but little, because they had lagged somewhat behind cotton prices when the latter were rising rapidly. Prices of goods declined slightly during the latter part of March, but since that time they have remained firm. With the exception of a few lines, such as flannels, in which it is customary to place business far in ad vance, the great majority of orders on the books are for delivery immediately or within 60 days. Few mills desire to book orders too far ahead because of the risk of possible cancellations. O f the future commitments, from 25 to 40 per cent are for delivery in from 60 to 90 days. Converters in this district are operating almost at capacity, but the production schedules of cotton mills in general average about 85 per cent. Most manufacturers report that sufficient labor is available. Some have ad vanced wages 10 per cent, but most of them have made no changes during the month. Owing to the heavy de mand since the first of the year, stocks of finished goods are light and are decreasing. Supplies of yarns in the hands of weavers are moderate. As in last month, collections are good, and in general are more prompt than they were a year ago. WOOL Both the present condition and the future outlook of the worsted cloth industry are good. Manufacturers w . of men’s wear have booked all the oo en an initial heavyweight business that worsted goods they dcsjre ' Ins £act> many mii|s have been forced to limit the size of the orders taken, especially for coatings. Initial orders for dress goods are also satisfactory and are much heavier than they were last year, when dress goods were in small request. The high grade dress goods have been in the great est demand, because of the reaction of consumers against the poor quality of some of the goods bought last year. Although this season worsted suitings are preferred to woolen for men’s wear, the chief interest is centered in worsteds of the poorer qualities. Manu facturers of cassimeres report that their product is in good request. O f the orders now on the books, 45 per cent are scheduled for shipment within 60 days, 35 per cent in from 60 to 90 days, and 30 per cent for ship ment after 90 days. Owing to advances in wages and in the cost of yarns, prices are tending upward, but few mills have taken business at prices higher than their opening quota tions. It is significant that both weavers and clothing manufacturers have attempted to prevent the prices of their products from being advanced to such an extent as would check the movement of goods. The memory of events in 1920 seems to have had a great influence on the fixing of prices this spring. Mills are running about 90 per cent of their looms. Weavers and menders are found to be scarce, especially by mills that do not run steadily, and in some districts semi-skilled labor is also difficult to obtain. Wages have in general been advanced from 10 to \2l/ 2 per cent. Supplies of yarn in the hands of weavers are moderate and are decreasing, as also are stocks of finished goods. Many mills are shipping their product out as fast as it is woven. Collections are fairly good. They have changed but little since last month, but are more prompt than they were a year ago. Although spinners are well supplied with business, the call for yarns is now quiet. Weavers have already bought enough yarn to cover their ^ 00‘ initial requirements, and they are unwilling yarns tQ con(-raCj- for yarns at the present high prices because of their fear that the cloth made from them cannot be sold profitably. Sales of hand-knitting yarns are not as heavy as they were a year ago, but mohair-upholstery yarns are in excellent request. O f the total orders booked, from 30 to 60 per cent are for delivery in the next 60 days, from 20 to 35 per cent in the succeeding month, and from 20 to 30 per cent after 90 days. This of course does not refer to mills that spin on commission. During the past month, yarn quotations have ad vanced. The tendency of some mills to offer conces sions, which was apparent a month ago, has disappeared with the disposal of the accumulations of yarns. Stocks, especially of worsted yarns, are light and decreasing. Spinners’ supplies of raw wool are also decreasing, but they still range from moderate to heavy. The majority of mills in this district are running at close to capacity. In many sections skilled help is scarce, and wages have advanced from 10 to 12'/> per cent. Collections are good and tend to improve. Since most mills have sufficient wool for their needs, the market has been comparatively inactive. During the past month interest has centered in the Raw further trend of demand toward fine grades wool in order to satisfy the desire of consumers for high-class fabrics, and the purchase of the new clip in the West. Now that shearing has begun in some of the western states, domestic wool will start to move eastward. But most of the buying of western wool has so far been done by the American Woolen Com pany and by a large Boston wool house, because west ern growers have held out for such high prices that many dealers felt they could not turn the wools over at a profit. The Christianburg and Jericho wool pools in Utah were bought for 50 and 51 cents respectively. Last year the Jericho wool sold for 40 cents. Not only has the actual weight of the world’s wool clip decreased during the last ten years, as is shown by the chart below, but in many producing countries the percentage of merino wool has tended to diminish. Thus the supply of fine wools has become increasingly short. The world’s clip has dwindled to such an ex- WOOL BILLIONS UUllARS POUND ■■■i. Prices of fin e medium Montana (scoured basis) ____ W o rld ’s p ro d u c tio n o f w oo l POUNDS 3 3 2 2 1 1 O 1910 1911 1912 1913 1914 1915 1916 1917 1916 1919 1920 1921 1922 1923 Although the production of wool in 1917, 1918 and 1919 was stimulated by high prices, the general trend of production since 1912 has been downward. The sharp decline in the clip ofJ1920 was caused by the heavy killing of sheep. Sources— Department of Comm erce, “ Textile W orld" ent that the good sorts of ail grades are scarce, and with the decrease in supply, prices have tended upward. Though the monthly consumption of wool by the mills reporting to the Department of Commerce has WOOL CONSUMPTION ZfW, Totol American wool consumption (over 6oo mills) - American consumption of foreign wool ------American consumption of domestic wool------------------- 60 1919 1920 # 1921 1922 1923 The total area under the top line shows the quantity of wool entering production in over 600 m ills in this country.*! Black areas indicate the excess of Toreign over domestic wool consumed, and.white areas the reverse. 19 Source— Department o f Commerce increased greatly during the last two years, as indicated by the following chart, it has not quite reached the level of 60 million pounds attained during the boom of 1919. During 1921 and 1922, the greater part of the wool consumed was of domestic origin; but when, late in last year, the supplies of domestic wool ran low, the use of imported wools began to exceed that of domestic wools, just as it did in 1919 and 1920. CLOTHING Since clothing manufacturers have but recently opened their lines of fall suits, it is too early to deter mine how large a demand will develop. But so far the demand for medium-priced fall suits is good, and the overcoat business booked by salesmen on their early trips was excellent. Although it is difficult to make an exact comparison of prices of the heavy-weight lines of this year with those of 1922, because of changes in style and quality, it may be said that nearly all are higher, owing to advances in the costs of raw material and labor. It is significant, however, that the increases have been conservative, and that in general clothiers have preferred to cut their margin of profit than to curtail sales. So far, clothing firms have en countered very little resistance to their price advances. At present, manufacturers of men’s clothing are still engaged in filling orders for spring suits that were booked late last year. The current spring demand is solely for prompt shipment, but for this time of year, it is fair and is heavier than it was a year ago. O f the orders now on the books nearly all are for shipment within 60 days, only a few manufacturers having orders for later delivery. Prices on spring suits are higher than they were last year, but there have been few changes during the past month. Finished stocks of suits range in size from moderate to light, but stocks of overcoats are nearly exhausted. Supplies of raw material are fairly light and tend to decrease. Operations in the men’s clothing industry in this district average about 84 per cent of capacity. The supply of unskilled labor is adequate, but more than half o f our reporting firms state that skilled help is scarce; and in the clothing trades skilled labor is of much greater importance than unskilled. Wages in general have been advanced from 10 to 30 per cent for skilled employees, and from 5 to 25 per cent for unskilled. The usual advance in each case was 10 per cent. Collections are fair. They are about the same as they were last month, but are slightly more prompt than they were a year ago. Shirt makers are now filling the orders booked last fall for April delivery. Owing to freight congestion. 20 considerable difficulty is encountered in making deliv eries on time. The orders at present on the books are for delivery within two months, and salesShirts men have now started on their trips to get fall business. Owing to the increased cost of raw materials and labor, the trend of shirt prices is upward, and many numbers have been advanced. Wages in many cases have been raised 15 per cent, and good help, both skilled and unskilled, is difficult to obtain. Shirt makers find that collections are fair, but pay ments from agricultural districts still lag. SILK The movement of silk goods continues to be fairly brisk and is somewhat larger than it was a month ago. „ In manv establishments, monthly sales are ° q ooc[s running 100 per cent ahead of the corre sponding months of last year, and from 30 to 50 per cent of the orders are for future delivery. O f the future business booked, 60 per cent is to be deliv ered within 60 days and 30 per cent in between 60 and 90 days. Not only printed fabrics but also solid colors have been in request. Crepe de chine, canton crepes, and romaines are selling well, and the call for charmeuse, taffeta, and satin crepe has slightly increased. However, the demand for yarn-dyed goods is poor, and there is still a tendency to neglect the staple fabrics for the fancy varieties and for the mixed goods of fibre silk. The percentages of plant operations reported aver age 72, but ribbon mills are running only half of their machinery. Production difficulties have been increased both by the scarcity of skilled labor and by demands for higher wages. The majority of mills have granted increases ranging from 10 to 20 per cent, to both skilled and unskilled labor. These advances, together with the high price of raw silk, have caused nearly all mills to raise their prices. The decided resistance of customers to price advances, however, has caused quotations on silk goods to lag behind those on the raw material, and this is also true of wool and cotton fabrics. But some firms feel that the resistance of jobbers and retailers is weakening. Since raw silk quotations are now higher than at any time since January, 1920, stocks of raw silk held bv manufacturers are moderately light. These are de creasing in volume, as are also stocks of finished goods. Collections have changed but little since last month and are fairly good. They are much more prompt than they were a year ago. During April, raw silk prices reached their highest point since January, 1920, when Sinshiu no. 1 filature was quoted at $17.40 a pound. During April, Sinshiu no. 1 rose to $9.45, and Kansai double-extra cracks to $9.80 a pound. These increases have been due ^oth t0 ^le suPPosed scarcity in Japan and to the large consumption in knit goods and heavy crepes. But the high silk prices during the past month have made the market inactive. The accompanying chart shows both the very rapid increase in the production of fibre silk in 1921 and 1922 and its price relative to that of spun silk during the last decade. In the last ten years, the production of artificial silk in this country has increased over 1500 per cent, and since 1920 it has expanded from 8,000,000 to 24,406,000 pounds. However, in spite of the in crease in both domestic production and imports, the de mand has continued to grow faster than the supply. Although some fibre silk has been consumed in cloth, it has been used most extensively in knit goods. A R T IF IC IA L S IL K COLLARS POUND MILLIONS POUNDS 77777?. Production of a rtific ia l silk — Prices of a rtific ia l silk . . —. Prices Of spun Silk (natural) 20 but some manufacturers have issued new price lists for early delivery and have made advances of $1 per dozen. Other manufacturers feel that the present is a poor time to issue price lists showing advanced quotations when it is not possible to sell freely at old prices. Seamless stockings made of a combination of silk and fibre, for which the demand has been good during the early months of the year, have now become consider ably less active. And business in heavier hosiery, such as mixtures of wool and silk and wool and fibre for fall wear, has been dull. Mills have taken orders for a part of their output, but the total booked is thought to be considerably smaller than was contracted for at this period last year. Infants’ mercerized hosiery, although in greater re quest than during the past few months, is not selling as freely as was expected at this season, which is usually one of considerable activity. Cotton yarns are some what lower in price than they were a month ago, but silk, worsted, and woolen yarns are all strong and gen erally higher in price. Further shortage in labor, espe cially of skilled labor, is reported from some parts of the district, and a number of manufacturers state that they have raised wages from 5 to 10 per cent. Collec tions are reported for the most part to be good. The summary of reports from manufacturers in the Third Federal Reserve District, tabulated below, shows that during March, production by firms selling to the wholesale trade increased 12.2 per cent as compared lO Conditions in the hosiery industry During the month of March 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 The increase in the production of artificial silk during the last two years has been extremely rapid. The prices of spun (natural) silk and of artificial silk are now 66 and 58 per cent respectively above the 1913 levels. Sources— Silk Association of America, War Industries Board HOSIERY Little change has taken place in the hosiery markets during the past month. Chiffon stockings for early delivery continue to be the most sought-for line. Prices for them are strong, and the mills can sell all they are able to make. The output, however, is small when compared with the total hosiery production. Full-fashioned silk hosiery in the usual weights is not selling freely, and it is reported that large sales have been made of surplus stock priced at considerably below the asking quotations of most manufacturers. This unsatisfactory condition, together with the high cost of silk— quotations for which are at the highest point in more than two years— has postponed the nam ing of prices for delivery in the second half of the year, In terms of dozens of pairs March, 1923, March, 1923, compared with compared with February, 1923 March, 1922 Firms selling to the wholesale trade: Number of reporting firms— 32 Product manufactured during' month ........................................ Finished product on hand at end o f month .................................. Orders booked during month. . . . Cancellations received during month ........................................ Shipments during month............. Unfilled orders on hand at end of month .................................. 1 Firms selling to the retail trade: Number of reporting firms— 10 _ Product manufactured during month ........................................ Finished product on hand at end of month .................................. ! Orders booked during m onth.... Cancellations received during month ........................................ Shipments during month............. Unfilled orders on hand at end of month .................................. + 12.2% r + 1.9 % — .1 “ + 8.6“ + 27.7 “ +139.4“ +114.8 “ + 9.9“ — 50.1 “ + 4.9“ — 3.1 “ 1 + 61.2“ + 13.3% + — 10.7“ + 1.5 “ + 45.4“ — 24.0 “ + 25.9 “ + 26.9 “ + 46.9“ + 23.1 “ 9.1% + 76.9 “ with February and 1.9 per cent as compared with March, 1922; and that the output of firms selling to the retail trade was 13.3 per cent greater as compared with February and 9.1 per cent as compared with March, 1922. Orders on hand at the end of the month in creased 61.2 per cent among firms selling to the whole sale trade and 76.9 per cent with firms selling + -etail houses, as compared with March 31, 1922. UNDERWEAR Comparatively little new business has been booked during the past month by manufacturers o f either sum mer or winter underwear. Many mills have already sold all they can deliver during the spring season, so that the supply now available for early shipment is small, and further business can be anticipated only on a small scale. The amount o f winter underwear sold earlier in the season is estimated in some quarters to be 80 per cent o f the probable requirements, and though that figure may be too high, it can safely be said that a considerable majority o f next fall’s business has been placed. Some manufacturers report that because of the heavy demand they were obliged to allot their product among the buyers. The prices now asked for the unsold balance are decidedly higher than those pre vailing at the opening of the season, and buyers do not seem eager to place further business. Prices for cot ton yarns have weakened somewhat in sympathy with the decline in raw cotton, but wages have in many cases Conditions in the underwear industry During the month of March In terms of dozens March, 1923, March, 1923, compared with compared with February, 1923 March, 1922 Summer underwear: Number o f reporting firms— IS Product manufactured during month ........................................ Finished product on hand at end o f month ................................... Orders booked during month.. . . Cancellations received during m on th .......................................... Shipments during month............. Unfilled orders on hand at end o f month ................................... + 22.9% — 25.0% — 22.9 “ 4- 20.6 “ —(-148.0 “ + 4.4“ +129.1 “ +108.4 “ > — 4.4“ — — 2.6“ + 80.7 “ — 27.1% - — — 9.0“ 34.1 “ + 26.5 “ + 43.4 “ 4- 10.3“ + 21.4“ — 3.4“ +105.4 “ 7.7“ Winter underwear: Number o f reporting firms— 7 Product manufactured during month ................................................. Finished product on hand at end of month .......................................... Orders booked during m on th .... Cancellations received during m on th .......................................... Shipments during month ................ Unfilled orders on hand at end of month .................. ................... 18.5% been advanced, and labor is nowhere plentiful, either skilled or unskilled. Collections are said to be from fair to good. Reports received from manufacturers in the Third Federal Reserve District, tabulated above, show that during March the production of summer underwear de creased 25 per cent and that of winter underwear de clined 18.5 per cent, as compared with March, 1922, and that orders on hand at the end of the month increased 80.7 per cent in summer weights and 105.4 per cent in winter weights, as compared with March 31, 1922. FLOOR COVERINGS Most of the carpet and rug manufacturers opened their lines for the fall season during the first few days of April, and the response by buyers was satisfactory. The demand for Axminsters, although sufficient to absorb the season’s output of most of the mills, was not as large as in October last. The goods were allotted, as they were in October, but the surplus orders were considerably less. Velvets and tapestries have been freely bought, and sales of these are fully as large as at the previous opening; indeed, mills have contracted for all they desired to sell. Prices for Axminsters, vel vets, and tapestries are from 5 to 10 per cent higher than those named last October. Some firms, which made these advances during the season, made no price change in April, but others, which had been taking or ders at October prices, raised their quotations. The majority of Wilton manufacturers have shown their new lines, but as the old quotations held good through April, they have not as yet published new price lists. The prices for Wiltons that have been announced are about 10 per cent higher for worsted, and 5 per cent higher for woolen, than those of last October and N o vember. A considerable business has been booked for Wiltons subject to prices to be announced, but the total business in this branch of the industry is decidedly less than it was at the last opening. This applies particu larly to woolen Wiltons, which appear to be in fair supply. All parts of the country have been represented in the opening purchases, and the continued prosperity of the carpet and rug industry is ascribed to the large amount of building going on throughout the United States. Notably good business is reported in the Pacific states and in the South. Raw material prices are still strong. Carpet wools are higher, and cotton and jute quotations are firmly maintained. The supply of labor, though not large, is sufficient to enable the mills to run at the same high rate of productivity. But wages have been advanced in nearly all the mills; in those making Wiltons and Axminsters, by 10 per cent, and in those making vel vets and tapestries by about 5 per cent. Although ingrains and wool fibres are not as active as the makes above mentioned, the demand has im proved. 22 The accompanying chart, which depicts the annual im ports of carpet wools and the price of one of the prin cipal kinds o f them, shows that from 1915 to 1918, or during the period of the war, imports— and it must be noted that all carpet wools are imported— decreased steadily because of the same difficulties that confronted all importers during that period; and also that the price of these wools, because of the small supply, steadily in creased. In 1922 imports made the largest gain in any one year of the period and were 173,000,000 pounds. Prices also rose and about doubled during the year, and they have continued to advance up to the present time. It is probable that about 10 per cent of the imports in 1921 and 1922 were used for the manufacture not of carpets but of clothing, in the form of tweeds. CARPET WOOL The great activity during the past year In the carpet and rug Industry Is reflected In the large am ount of carpet wool imported in 1922 — 173,000,000 pounds— and in Its steadily advancing price. Since 1912 and prior to 1922 the largest importations of carpet wool were in 1915, 1919, and 1921. In these years the total imports were 93, 96, and 97 m illion pounds respectively. Sources— National Association o f Wool Manufacturers, " M onthly Summary o f Foreign Com m erce” Linoleums are selling in larger volume than ever before, and production is unable to keep pace with the demand. Price advances were made by manufactur ers in either March or April, but all sections of the country continued to pour in orders. The price ad vances were from 2 to 12 per cent, according to make and grade. Raw materials are steadily rising and in some cases are said to be difficult to obtain. A scarcity o f rags is reported by makers o f felt-base goods, and linseed oil and lithopone have risen to the highest prices in recent months. Labor, too, is scarce, and advances in wages have been made by all local manufacturers. The price now paid to new common labor varies from 40 to 45 cents per hour. The freight movement in the entire floor-covering in 23 dustry, although steadily improving, is still slow, and factories report that delay in incoming materials has in some cases been quite serious and that complaints from customers on outgoing freight are still numerous. Collections are reported to be good by nearly all manufacturers, although slow payments are reported by some. LEATHER In many shoe factories in this district the great ma jority of the orders booked are for shipment within six weeks, but some manufacturers have secured Shoes business up to October. These latter are making lines of shoes for children and misses which are fairly staple. For women’s wear compara tively few orders for next fall have as yet been booked. The sale of shoes at retail during the two weeks fol lowing Easter were as usual small, and this resulted in the placing of a reduced business with the factories dur ing the early part of the month. It is estimated that production in April will prove to be lower than that of the preceding months of the year. Novelty shoes, largely because of the increase in the cost of making, but partly also on account of the high cost of the leather used in them, are somewhat higher than they were a month a g o ; but for the most part shoe prices have not changed. The leathers most used for novelty shoes are suede, in grey, sand, and black, and glazed kid and calf in white, red, green, and blue. The total production of the bright colored leathers, how ever, is not large. Patent leather is again becoming popular, and orders call for its use in a large propor tion of the business booked for fall wear. Production of shoes in the United States during February, as reported by the Department of Commerce, was 29,590,670 pairs, and for the first two months of this year was 60,148,346. In January and February, 1922, 49,671,164 pairs were made. Exports in Febru ary totaled 591,295 pairs, as compared with 395,661 pairs in the same month last year. Raw material prices, except for some of the novelty leathers and some grades of patent leather, which are somewhat higher, are unchanged. Scarcity of labor in the fitting rooms has resulted in some further in creases in wages. Collections are reported by most manufacturers to have improved and are from fair to good. Numerous complaints of slow collections in the South, however, continue to be heard. In the Third Federal Reserve District production of shoes, as shown in the table on page 24, increased, as compared with February and with March, 1922. Orders on hand at the end of March, however, showed a de crease as compared with February, but an increase as compared with March, 1922 : Conditions in the boot and shoe industry Number o f reporting firms— 36 (In terms o f pairs) Product manufactured during month Shipments during m on th ................. Orders booked during month........... Orders on hand at end of month. . . Cancellations received during month Stocks (unsold) on hand at end of month ............................................ Number of operatives on payroll.. . March, 1923, March, 1923, compared with compared with February, 1923 March, 1922 +16.6% +29.5 “ +96.7 “ — 14.3 “ +30.6 “ +10.0% + 8.4“ +46.6 “ +50.4 “ —28.4 “ —19.7 “ — .9 “ —25.2 “ + 5.2“ Sales o f shoes by wholesale houses are in good vol ume, but the after-Easter dulness in the retail trade has affected the volume of new wholesale orders. From the table printed on page 10 it will be seen that March sales represented a gain of 115.3 per cent as compared with those o f February, and of 28.1 per cent as com pared with those of March, 1922. In the retail shoe stores, business was, as usual, dull for about two weeks following Easter, and the late snow and cold have probably accentuated this decrease in sales. An im provement, however, is now noted; but sales during the month will naturally be smaller than in 1922, when Easter fell on April 15. During March the sales at retail in this district showed a large increase, as compared with February, 1923, and with March, 1922. Shoe factories have in most cases covered their needs for the balance of the spring orders and have not yet secured enough orders for fall to warrant their entering the market in a large way. O f the heavy leathers, sole leather is not active, and shoulders and bellies, although selling in fair volume, are in less request than they were a month ago. Butts continue to be called for, although in these too it is doubtful if the demand is as urgent as formerly. In upper leathers, only the novelties, which constitute but a small percentage of the production, are selling well. Suedes and white and bright colored kid and calf are sold about as fast as tanners can produce them. Patent leather is also in increasing demand, and the prices of all these leathers are either firm or higher. Brown kid is in fair request, but black kid and calf grain leather in black and brown are not meeting with an active call, and our reports indicate that stocks of these are in creasing. The accompanying chart shows that the index num ber of scoured oak backs, from which the best soles are PRICES OF LEATHER AND ALL COMMODITIES r\ \t t # 1 scour :d oak backs tr i ✓ Retail shoe trade / / r ✓t ■ j 4TJ o p (In terms of dollars) A II corn 1914 1915 1916 1917 _____ 1916 1919 1920 1921 1922 1923 Stocks (selling price): (a) March, 1923, as compared with Feb., 1923.. (b ) March, 1923, as compared with March, 1922. 3. es "^0^ sales • (a) March, 1923, as compared with Feb., 1923.. +88.6% (b ) March, 1923, as compared with March, 1922 4*37.3 “ (c ) January 1 to March 31, 1923, as compared with January 1 to March 31, 1922............. +22.4 “ 1913 2. \ \ — .7% — 17.1 “ The price of scoured oak backs, from which the best quality and largest quantity of soles are m ade, has not kept pace in recent m onths with the advancing com m odity prices. Prices are expressed as index num bers on a 1913 base. Sources — U. S. Bureau o f Labor Statistics, War Industries Board, “ Dun’s R eview ” Rate of turnover (i. e., times per year based on cumulative period): (a ) January 1 to March 31, 1923........................ (b ) January 1 to March 31, 1922 ........................ 3.2 2.3 Number o f stores reporting above items: 1.................29 2 and 3.................26 Sales o f nearly all kinds of leather have decreased during April. This decline is no doubt seasonal, but nevertheless sellers are showing an inLeather creased anxiety to reduce stocks, and quo tations for some descriptions are barely steady, in spite o f a strong hide market. 24 made, was higher than the all-commodity number dur ing the first Zl/ 2 years of the war, but that since that time, except for a short period in 1919, leather has been lower than the all-commodity number and that in March, 1923, was more than 35 points below that fig ure. It shows, too, that leather has not shared in the general advance in prices during the first quarter of this year. The following table gives the changes in production and stocks of the leading leathers between February, 1922, and February, 1923: Production Backs, bends and sides Belting, butts ............. Offal, sole and belting Cattle, side upper Calf and kip ............... Goat and k i d .............. Cabretta ...................... — 1.9% +72.3 “ + 16.2 <£ +25.9 “ +45.9 “ u — 1.6 “ | r than they were last month, and plant operations in this branch of the industry are at about 80 or 85 per cent. Envelope manufacturers state that their orders show a considerable increase over last month and their factories are running at from 70 to 80 per cent. The call for tissue papers also shows some improvement, but the heavy buying season for these is not yet at hand. The demand for boxboard is only fair, and chip and newsboard mills are operating at only 65 or 70 per cent. Container board mills are running at about 85 or 90 per cent. Most of the orders booked by paper mills are for prompt shipment, as the majority of manufacturers will not accept orders for future delivery, except at market price on date of delivery. Wholesalers report that the demand for nearly all grades of papers is ex cellent and that on account of slow deliveries from New England and western mills their stocks of some grades are very light. Most of the wholesalers state that their customers are still buying only from hand to mouth, though a few find that orders for future delivery are increasing. Many grades of both fine and coarse papers have ad vanced from 2 to 5 per cent in price during the month, but no general increases have been made. Some grades of paper board, however, particularly building, news, and chip boards, declined in price at the beginning of the month. News and chip board dropped $5 per ton or about 8 per cent. On the whole, paper prices are holding very firm. Chemical pulp prices have advanced slightly during the month, and are from 2 to 5 per cent higher than they were a month ago. The strike in Sweden has now been settled, but several months will necessarily be required to make up the loss of Stocks —21.4% — 10 0 . “ —23.9 “ —13.0 “ — 1.9“ — 3.4“ —18.4“ * Production not separated. These figures, compiled from the report of the De partment of Commerce, show the great improvement that has occurred in the leather business during the year, and that despite a large increase in production, stocks have decreased greatly. Leather belting sales are large and are estimated at 80 per cent of the maxi mum reached in that industry in 1921. That they have continued to remain at about the same figure during the past few months shows that manufacturing activity in this country is being maintained on a large scale. Tan ners state that collections are excellent. During the past month the packers have sold at un changed or higher prices the balance of their winter hides. Sales of the April salting have not Hides been made in sufficient volume to estab and Skins lish prices, but offerings of this better quality are at higher figures than were paid for Febru ary and March hides. Foreign markets are strong, and stocks everywhere are moderate. Calf skins have shown fair activity, and prices are well maintained. Goat skins have been quiet, but some tanners have pur chased spot lots and have obtained only slight conces sions in price. Foreign markets, although in some instances somewhat lower than they were a month ago, are generally firm, but the reports are that tanners are buying but little. Prices of sheep skins continue firm, and supplies of some grades are said to be small, tan ners reporting difficulty in securing sufficient quantities for their needs. PAPER The demand for all grades of paper is good, and pro duction throughout the district continues at a high rate. Mills making book and magazine papers are operating at capacity and are from four to six weeks behind in deliveries. The demand for manila papers, building papers, building boards, and card boards is very good, and mills making these are running at capacity. Wrapping papers, too, are in good request, although a few manufacturers report that orders show a decrease as compared with last month. The call for writing, ledger, and fine papers is heavy, and mills mak ing these grades are on the whole operating at capacity. Crepe toweling and toilet papers are in better demand Although mechanical, unbleached sulphite, and kraft pulps reached their record prices during the sum m er of 1920, soda pulp did not attain its peak price until January, 1921. Even though present quotations on paper pulps are from 50 to 100 per cent above the 1913 prices, they are only from 30 to 50 per cent of the peak prices. 25 Source— “ Paper Trade Journal” months’ production. Mechanical pulp has declined about five per cent during the month, and prices are holding firm at $41 to $42 per ton, f. o. b. mill. The chart on page 25, which shows paper pulp prices from 1913 to date, illustrates how far pulp prices have fallen from the peak quotations of 1920-1921. However, it will be seen that bleached soda pulps ard mechanical pulps are twice as high as in 1913, although kraft and unbleached sulphite pulps are only 1^4 times the 1913 price. Stocks o f finished paper at the mills are moderate and are mostly on order, and stocks of raw materials also are moderate. Many manufacturers are buying only for immediate needs although large users o f chemical pulps have contracted for a four or five months’ supply o f these materials. Very few mills are contracting for more than a thirty day supply o f coal. Both skilled and unskilled labor is scarce at many mills, although most plants have sufficient labor of all classes. In general, the mills in small towns are well supplied, but those in the cities are short. Many paper makers have granted wage advances o f 10 per cent dur ing the month, but the increase is not general. Several manufacturers report that outbound ship ments to New England points are still greatly delayed, and a shortage o f cars to other points is also noted. One paper maker states that he was obliged to hold 15 per cent o f his output in storage last month, because of em bargoes on New England roads. Manufacturers report that collections are better than they were last month and on the whole are good, but wholesalers find them only fair. PAPER BOXES Some box makers report that the call for their prod ucts has weakened since the close o f March, but the ma jority have noted little change as compared with last month, and on the whole the demand is fairly good. Orders from candy, shoe, and underwear manufacturers have decreased; but the hardware, shirt, auto accessory, and electrical and radio supply industries are buying heavily. Hosiery manufacturers are taking more boxes than in many months, but their purchases are not yet large. Folding boxes and mailing tubes are in good re quest, as are also extra fancy boxes for jewelers and perfumers. Plant operations vary from 50 to 100 per cent, the average for the district being 75 or 80 per cent. Manufacturers o f fibre shipping containers and corru gated boxes report that the demand is fairly good, and much better than it was a month ago. But they com plain that most o f their customers are buying only from hand to mouth. Production in this branch o f the indus try is about 80 per cent o f capacity. The vast majority o f orders booked are for delivery within sixty days, less than 10 per cent being for beyond that period. Some slight increases in price have occurred, but keen competition has prevented most manufacturers from attempting to make any advances. At the begin ning of the month both chip and news board declined $5 per ton, to $57.50 and $62.50 respectively. Strawboard, jute liner, and container board have held very firm and are at the same levels as they reached last month. Glue has advanced about 5 per cent during the month. The following chart shows the price levels of news and chip board and of waste papers from 1913 to date. In 1920, prices of board and waste paper reached a level nearly twice as high as the present prices of these materials. During the years 1913 to 1915 board prices fluctuated less violently than they have since. The fluctuations in waste paper prices follow closely those in paperboard; in fact, the price of paperboard tends to determine the price of waste paper. From 1916 to date the paperboard in dustry has been less stable than it was in the years pre vious, and price advances and declines have been s extremely violent during this period. Source— "P aper Trade Journal" Stocks of finished goods at the factories are either moderate or light, and these are all on order. The supplies of board, glue, and other raw materials in the hands of manufacturers are moderate and slightly below normal. The policy of box makers is to buy only for immediate needs. Several manufacturers report that the supply of both skilled and unskilled labor is inadequate at their fac tories and complain o f a heavy turnover despite their having granted recent increases in wages. Production at some large factories is limited to 85 per cent of capacity by the lack of sufficient labor. Wages have been raised about 5 per cent at several factories, but no general advance has taken place in the industry. Deliveries of materials by railroads are not as prompt as they were a month ago, and many manufacturers, especially of fibre and corrugated boxes, state that ship ments from their western mills are delayed about two weeks because of embargoes and lack o f cars. Collec tions show little improvement as compared with those o f last month or of April, 1922, and on the whole are only fair. TOBACCO Although the demand for cigars was rather light dur ing the closing week of March and the first week of April, there'has been a distinct increase in Cigars purchases since. The majority of manu facturers, both large and small, report that the call for their goods is greater than it was either in March or in April, 1922. Makers of class B cigars state that since the first of the month the demand has been very good, and several of the large factories, which were operating on only part time in March, have returned to a full-time schedule. Class C cigars, par ticularly ten-cent brands, are in excellent request, and several of the large manufacturers are oversold on this size. The five-cent cigar, too, is in good demand, al though on account o f the high prices prevailing for tobacco leaf some manufacturers are limiting their out put of this grade. One big cigar maker, who contem plated the production of a five-cent cigar at the begin ning of the year, abandoned the plan because he could not make a cigar of the quality he desired to retail at five cents. The average of operations in this district is approximately 80 or 85 per cent o f capacity. The ma jority of large factories are operating at above 85 per cent, but the small factories are running at from 50 to 100 per cent. Most of the orders booked by cigar mak ers are for immediate shipment, less than 10 per cent being for future delivery. The accompanying chart, based upon sales of internal revenue stamps, shows that in March, 1923, the sales of large cigars were 8.5 per cent, and of small cigarettes 38.6 per cent, greater than those o f March, 1922. Prices of cigars are firm and unchanged, but tobacco leaf prices are still advancing slightly. Although the costs of production are from 12 to 15 per cent higher rette output In March was 9 per cent larger than In February, but 5 per cent less than In January. All classes of large cigars are included In the total shown In the chart. Source— Commissioner o f Internal Revenue than in April, 1922, the makers of cigars have not found it advisable to raise their prices, which on the whole are the same as they were a year ago. Stocks of cigars held by most manufacturers are moderate and at many factories are decreasing. A few report that stocks are light and that they are planning further expansion and a larger output. In. general, manufacturers’ stocks of tobacco leaf are mod erate. At several factories a scarcity of skilled operatives is apparent, although the majority of manufacturers have an adequate supply of all grades of labor. How ever, in Philadelphia, the labor supply is not as plenti ful as it was last month and skilled cigar makers are scarce. A few manufacturers have advanced wages about 10 per cent in order to bring their rates up to the general level established two months ago. But in gen eral, wages are unchanged. Collections are slightly better than they were last month and are from fair to good. Purchases in the Philadelphia and Lancaster leaf markets have been light during the past five weeks and — . considerably smaller than they were in Z e / C° April, 1922. Leaf packers and dealers report that although many inquiries have been received from cigar manufacturers, buying is on the whole for immediate needs only. Most of the 1922 crop of Pennsylvania tobacco has been purchased, less than 10 per cent being still held by the growers, as against about 50 per cent last April. Current quotations on 1922 wrappers vary from 18 to 20 cents per pound, and fillers are bringing from 4 to 7 cents per pound, a considerable advance over the fall prices of 17 cents for wrappers and 3 cents for fillers. Jobbers report that the Pennsylvania farmers will realize 30 per cent more for their 1922 crop than they got for that of 1921. At the first four sales of Sumatra tobacco at Amster dam, Holland, record-breaking prices were established and the prices ranged about 20 per cent higher than in 1922. At the first sale the quality of the tobacco o f fered was not so high as last year, but at the three later sales better qualities were forthcoming. For the very choice lots of light shade wrappers the prices ranged from $7 to $10 per pound without duty and freight. Cigar manufacturers view these prices with much concern and are trying to induce smokers to use cigars with darker wrappers, as these wrappers can be bought at a fair price. Manufacturers point out that a light wrapper does not necessarily mean a cigar is mild, as it is the blending of tobaccos in the filler and binder that determines flavor and strength. Despite the very high prices, brokers bought heavily at Amsterdam, and dealers report that many inquiries are being re ceived, although actual buying by manufacturers has not yet become extensive. The supply of Wisconsin and New England binders 27 is only about half as large as had been anticipated, and leaf dealers believe there will be an actual shortage of these grades before the 1923 crop is ready for use. The Ohio crop, which is of good quality, is now almost entirely in the jobbers’ hands. AGRICULTURE The cold weather that has prevailed this spring throughout the district has retarded agricultural activity and greatly delayed spring plowing and planting. But on the other hand it has checked the development of fruit buds, so that little damage has been done to the trees and a normal crop of peaches and apples is in prospect. Reports from Pennsylvania, New Jersey, and Delaware Departments of Agriculture show that though plowing is greatly retarded everywhere, no damage has been inflicted upon the fr-uit trees by frosts except in some sections of southern New Jersey and parts of Delaware, where some peach buds were killed. On April 1 the condition of the rye crop in New Jersey was 92 per cent of normal, as compared with 93 per cent last year and with 90 per cent, the average condition on April 1 for the past ten years. In Penn sylvania the condition of the crop was 91 per cent of normal, as compared with 95 per cent on April 1, 1922. In Delaware it was 98 per cent of normal. Despite a Agricultural conditions (estimated) Locality Per cent spring plowing completed by April 30 cent Per cent o fPer normal Damage to acreage condition fruit buds ready for April 15 planting crop April 30 wheat April 1 87 85 Negligible None 95 50 85 50 90 40 60 95 90 85 Normal 95 90 85 80 60 50-55 50 89 Gloucester Co., N. J. 85 85 Delaware ................. 60 50 None None None Negligible None Negligible Negligible None None 15 to 20% (to peaches in southern l part) None Slight to peaches Pennsylvania ......... Lancaster Co., Pa... Northumberland Co., Pa........................... Franklin Co., P a .... Bradford Co., Pa.. .. Cumberland Co., Pa. Huntingdon Co., Pa. Clinton Co., Pa....... Dauphin Co., P a .... Berks Co., Pa........... Bucks Co., Pa.......... New Jersey ............. 66 60 75 90 75 90-95 30 50 90 50 90 100 0 98 very poor start due to the long drought last fall, the condition of the wheat crop in the three states is up to the average of the past ten years. Good precipitation and generous snow protection during the winter in the principal wheat districts decreased the losses that usu ally occur through winter killing. In New Jersey the condition of the winter wheat crop on April 1 was 89 per cent of normal, as compared with 90 per cent last year and with 88 per cent, the average condition on April 1 for the past ten years. The condition of the winter wheat in Pennsylvania on April 1 was 87 per cent of normal, as compared with 93 per cent one year a g o ; and in Delaware it was 98 per cent. The preceding table, based upon reports from county farm bureaus and state departments of agriculture, shows the agricultural conditions in the Third Federal Reserve District. Only in the southern and low lying counties along the Delaware and Susquehanna rivers will the spring plow ing be three fourths completed by the close of April. Usually at this time about three fourths of the entire acreage in the District is ready for planting and seeding. Estimates of the acreages of cash crops that will be planted this year show a decline in several counties from the 1922 figures. County agents believe that the potato and spring wheat acreage will be smaller, and that in some counties the total acreage will be smaller because of the scarcity of farm labor. But on the whole the acreage of oats, corn, and truck crops will be about the same as was planted last year, and in the tobacco growing districts larger plantings of this crop than in 1922 are forecast. The farm labor supply is a matter of much concern, and as at present it is considerably smaller than in 1922, a real shortage is in prospect by harvest time. The Pennsylvania Department of Agriculture esti mates that 20 per cent of the farmers of the state are unable to get the help they need, and in New Jersey the present labor supply is estimated at 80 per cent of last year’s and at 74 per cent of the normal. The scarcity of farm labor is most pronounced in the indus trial counties, as the farmers cannot compete with other industries in wages under present conditions. In Lan caster County, Pennsylvania, where agriculture is of great importance, the farm labor supply is at present adequate. On the whole, the agricultural outlook in this dis trict is good. The weather has been distinctly favorable to the fruit crops and also to the grain crops during the late winter and spring. But the size of the harvest depend to a great extent upon labor, and present indications point to a severe shortage of help. wiir COM PILED AS OF A P R IL 23, 1923 This business report will be sent regularly without charge to any address upon request 28
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