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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT M AY i, 1 9 2 .5 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA B U SIN E SS C O N D IT IO N S IN T H E U N IT E D S T A T E S Production in basic industries was smaller in March than in the two pre ceding months but was as large as at any time in 1924. Distribution o f merchan dise both at retail and wholesale was in greater volume than a year ago. W hole sale prices, after increasing since the middle o f 1924, remained in March at about the same level as in February. Production. The Federal Reserve Board’s index of production in basic in dustries declined in March to a level 5 per cent below the high point reached in January. Iron and steel production and cotton consumption showed less than the usual seasonal increase during March and activity in the woolen industry declined. There was a further decrease in the out put o f bituminous coal. Increased activ ity in the automobile industry was re flected in larger output, employment, and payrolls. In general, factory employment and payrolls increased during the month. Value o f building contracts awarded in March was the largest on record, not withstanding the recent considerable re duction in awards in New York City. Trade. Wholesale trade in all prin cipal lines increased in March and the total was larger than a year ago. Sales at department stores and by mail-order houses increased less than is usual at this time o f the year. Stocks of shoes and groceries carried by wholesale dealers were smaller at the end o f March than a month earlier, and stocks o f drygoods, shoes, and hardware were smaller than last year. Stocks of merchandise at de partment stores showed more than the usual seasonal increase and were some what larger than last year. Prices. Wholesale prices of most groups o f commodities included in the index o f the Bureau o f Labor Statistics declined somewhat in March but owing to an advance of food prices, particularly of meats, the general level of prices re mained practically unchanged. Prices of many basic commodities, however, were lower at the middle o f April than a month earlier. Bank credit. Volume of loans and investments at member banks in prin cipal cities continued at a high level dur ing the five-week period ending on April 15. Total loans declined, reflecting chiefly a reduction in loans on stocks and bonds, PER CENT W H OLESALE and also some decrease in loans for com mercial purposes. Investment holdings, which early in March had been nearly $300,000,000 below the high point o f last autumn, increased by the middle of April by about half this amount. D e mand deposits, after declining rapidly be tween the middle o f January and March 25, increased during the following weeks, but on April 15 were still $633,000,000 below the maximum reached in January. A t the reserve banks the volume o f earning assets on April 22 was about $75,000,000 below the high point at the end o f February, but continued above the level o f a year ago. Discounts for mem ber banks were about twice as large in April as at the exceptionally low point in the middle o f January, while total United States securities and acceptances held were in smaller volume than at any time during the year. Somewhat easier money conditions in April were indicated by a decline o f oneeighth o f one per cent in the open-market rate on 90-day acceptances to 3 ^ per cent and by sales o f prime commercial paper at below 4 per cent. P R IC E S 200 . 150 100 50 O Index of 22 basic com modities corrected for seasonal variation (1919— 100). Latest figure— March, 120. 1922 1923 1924 1925 Index of U. S. Bureau of Labor Statistics (1913 = 1 0 0 , base adopted by Bureau). Lat est figure— March, 161. Weekly figures for m em ber banks in 101 lead ing cities. Latest figure, April, 15. Page One Weekly figures for 12 Federal Reserve Banks. Latest figure, April 22. B U SIN E SS C O N D IT IO N S IN T H E P H IL A D E L P H IA F E D E R A L R E S E R V E D IS T R IC T The business hesitancy which first be came noticeable in February has con tinued in evidence during March and April. The past month has witnessed a further curtailment of production in many lines, a slight reduction in factory working forces, widespread though moderate price recessions, but a volume o f distribution nearly equal to that of the same period of 1924. In the iron and steel industry, although production schedules during March exceeded those o f February both in this district and in the United States as .a whole, the past month has witnessed a subsidence of de mand, a weakening of prices and a con sequent slackening in operations. It is significant in this connection that the un filled orders o f the United States Steel Corporation declined 8.0 per cent between the end o f February and the end of March. The coal markets, both bitumi nous and anthracite, have also been un satisfactory in recent weeks, albeit there has been some recent improvement in the latter trade following price readjust ments. Prices have been weak in both grades and weekly output has been smaller than in March. Textile products have also been en countering yielding prices and weakened demand, with the exception of silk goods which have been selling in better volume and at firm prices. Mill operations, how ever, have been well maintained. Orders for hosiery and underwear are reported in satisfactory volume although there has been some slackening in the underwear business since March. The carpet indus try is approaching the end of a fairly successful season. Clothing wholesalers and retailers are buying more freely for their spring and summer requirements and business is better than it was last month or last year. Dulness continues to pervade the hide and leather markets with lower prices for many grades. The new season is just Page Two commencing in shoes and retailers’ stocks are believed to be low. Paper products are in fair demand at firm prices al though there has been some price cutting on paper boxes. Cigar makers also re port a fair market but less activity than in 1924. The violent fluctuations in wheat prices have been accompanied by similar movements in flour quotations and a re sultant unsettlement in the flour market. The volume of distribution has ex panded seasonally in March and April and in most lines is up to last year’s levels. Car loadings were heavier in March but failed to equal the total for March, 1924. Conditions in the whole sale trade are mixed. Nearly all lines im proved in March, but sales were smaller than last year except in shoes, drugs, and hardware. Retail buying has im proved and is somewhat better than it was last spring. Check payments, or debits to individual accounts, increased in March and have been substantially above last year’s levels. o f more than 5 per cent in working forces, while iron and steel forging plants, felt hat factories, confectionery and ice cream establishments and furni ture and musical instrument factories showed declines of a like amount. Total weekly wages paid, which reflect fluctuations in factory operations, were only .6 per cent larger for all industries than in February, but in several indus tries, the fluctuations were very large. Car repair shops, shipyards, sugar re fineries and leather products factories all reported increases o f more than 8 per cent. Many industries reported reduc tions in wage payments, the largest being 11.6 per cent and 10.8 per cent, in musi cal instrument factories and explosive plants respectively. Detailed changes in employment and wages at 1,006 estab lishments in the three states are shown in the table on page 3. E M P LO YM EN T AND W AG ES From 1,076 millions on March 18, the total loans and investments o f member banks in four o f the leading cities o f the Third District advanced to 1,085 millions on April 8— the largest figure attained at any time within the past four years. This resulted from an increase o f 21 millions in loans which more than bal anced a decline o f 12 millions in in vestments. In the following week a fall ing off in both loans and investments carried the total down 13 millions. Loans, chiefly commercial in character (all other A further slight increase occurred in employment and wages in the states of the Third Federal Reserve District dur ing March. Although the net gain in employment was only .2 per cent, textile products advanced 1.3 per cent and chemi cals 1.8 per cent, and several of the indi vidual industries made even larger advances. Car repair shops, miscellaneous textile plants, structural iron works, and sugar refineries each reported increases F IN A N C IA L C O N D IT IO N S SYNOPSIS OF BUSINESS CONDITIONS Compiled as of April 23, 1925 Business Philadelphia Federal Reserve District Demand Prices Stocks Heavy Unchanged Collections Good Decreasing Unchanged Declining Unchanged Unchanged Heavy Unchanged Unchanged Unchanged Heavy Fair Firm Unchanged Unchanged Unchanged Firm Unchanged Light Poor Unchanged Unchanged Unchanged Unchanged Lower Moderate Fair Light Moderate Fair EMPLOYMENT AND WAGES Throughout Pennsylvania, New Jersey and Delaware Group and industry All industries (48) No. of plants report ing Number of wage earners— week ended Mar. 15, 1925 1,006 379,473 Per cent change from month ago Total weekly wages— week ended Mar. 15, 1925 Per cent change from month ago Average weekly earnings— week ended Mar. 15, 1925 Per cent change from month ago + 0.2 110,089,064 + 0.6 $26.59 + 0.3 Metal manufactures: Automobiles, bodies, and parts.. Car construction and repair. . . . Elec, machinery and apparatus. Engines, machines, mach. tools. Foundries and machine shops. .. Heating appliances and apparat us Iron and steel blast furnaces___ Iron and steel forgings............... Steel works and rolling mills___ Structural iron works................. Misc. iron and steel products. . . Shipbuilding................................ Non-ferrous metals..................... 348 181,204 23 7,744 15 16,190 38 18,813 37 9,438 72 12,541 18 5,849 13 15,425 13 4,887 48 48,611 12 3,335 45 26,353 8 8,544 3,474 6 + + + + + + - 0.1 3.7 7.9 3.4 0.4 1.8 1.3 3.1 5.6 2.1 5.1 2.1 2.5 0.9 5,082,323 222,386 491,649 457,158 270,820 362,033 179,929 427,573 122,734 1,366,469 93,853 732,235 252,432 103,052 + 0.4 + 5.1 +12.0 - 6.6 + 1.9 + 1.7 - 1.8 + 2.6 - 6.5 - 2.0 + 4.6 - 2.2 + 8.1 + 0.8 28.05 28.72 30.37 24.30 28.69 28; 87 30.76 27.72 25.11 28.11 28.14 27.79 29.54 29.66 + + + + + + + 0.5 1-4 3.8 3.3 2.3 0 0.5 0.5 0.9 0.1 0.5 0.1 5.5 1.6 Textile products: Carpets and rugs........................ Clothing....................................... Hats, felt and other................... Cotton goods............................... Silk goods.................................... Woolens and worsteds. .............. Knit goods and hosiery.............. Dyeing and finishing textiles. .. Misc. textile products................ 233 16 24 11 28 56 27 43 21 7 71,460 4,669 3,720 5,157 8,495 17,872 10,793 10,699 8,325 1,730 + + + + + + + + 1.3 0.4 4.1 5.1 1.5 35 3.7 3.6 2.4 7.8 1,660,902 132,223 68,906 135,394 195,969 389,312 230,509 248,080 226,242 34,267 + + + + + + + + + 2.2 2.3 3.9 4.1 3.0 4.1 4.9 4.2 1-7 4.5 23.24 28.32 18.52 26.25 23.07 21.78 21.36 23.19 27.18 19.81 + + + + + + - 0.9 1.9 0.2 9.7 1.5 0.5 1.2 0.6 0.8 3.0 Foods and tobacco: Bakeries....................................... Canneries..................................... Confectionery and ice cream___ Slaughtering and meat packing. Sugar refining.............................. Cigars and tobacco..................... 82 19 6 20 12 4 21 25,299 3,477 3,293 5,396 2,557 4,080 6,496 + + + 0.0 0.8 1.5 5.3 4.1 7.1 1.8 569,747 104,125 71,923 108,532 67,217 121,356 96,594 + + + + + 1.1 0.1 1.9 7.2 4.4 9.1 6.9 22.52 29.95 21.84 20.11 26.29 29.74 14.87 + + + + + 1.1 0.9 0.4 2.0 0.4 1.9 5.0 Building materials: Brick, tile, terra cotta products. Cement........................................ Glass............................................ Pottery......................................... 77 20 15 27 15 25,974 3,644 7,665 9,696 4,969 + + + 0.3 3.6 1.3 0.8 2.9 738,404 90,919 211,096 275,583 160,806 + + + 1.8 0.5 0.6 2.0 6.4 28.43 24.95 27.54 28.42 32.36 + + + + 1.5 4.0 0.7 2.8 3.4 Chemicals and allied products: Chemicals and drugs.................. Explosives................................... Paints and varnishes.................. Petroleum refining...................... Coke............................................. 75 39 10 15 8 3 29,588 7,639 2,580 1,483 16,865 1,021 + + + + - 1.8 3.9 1.7 2.6 1.7 3.6 870,071 205,792 67,132 38,043 527,442 31,662 - 1.2 + 1.5 -1 0 .8 + 0.9 - 1.2 + 1.4 29.41 26.94 26.02 25.65 31.27 31.01 + 3.0 2.2 9.2 1.7 2.9 5.2 Miscellaneous industries: Lumber and planing mill prod. . Furniture..................................... Musical instruments................... Leather tanning.......................... Leather products........................ Boots and shoes.......................... Paper and pulp products........... Printing and publishing............. Rubber tires and goods.............. Novelties and jewelry................ All other industries..................... 191 8 21 6 34 6 28 21 26 19 9 13 45,948 2,572 3,142 4,282 8,534 587 5,542 5,153 3,854 5,506 2,352 4,424 + + + + + 1.1 3.4 8.0 7.5 1.1 2.5 2.0 2.7 0.4 1.1 2.6 2.5 1,167,617 48,714 79,083 110,201 216,795 13,245 110,815 136,113 122,455 152,414 61,253 116,529 - 0.7 - 7.3 - 8:9 -1 1 .6 + 0.8 + 10.4 + 2.0 + 0.4 + 1.9 - 0.4 - 1.3 + 10.6 25.41 18.94 25.17 25.74 25.40 22.56 20.00 26.41 31.77 27.68 26.04 26.34 + 0.4 -1 0 .3 - 0.9 - 4.3 - 0.2 + 13.1 + 0.1 + 3.2 + 1.5 + 0.7 + 1.4 + 7.9 loans), on April 15 amounted to 367 millions. At this level these loans were 12 millions higher than at the low point for this year reached on February 4, but they were still 23 millions below the peak attained last October. Loans se cured by stocks and bonds, on the other hand, reached their highest point in re cent years on April 8. The report o f the Federal Reserve Bank of Philadelphia for April 22 shows that holdings of bills discounted on that date were 5 millions below the figure for March 25, but that little change, took place in the holdings o f other earning assets. The circulation of Federal re serve notes declined seven millions, total deposits gained tw o' millions, and cash reserves fell one million. The reserve ratio on April 22 was 76.1 per cent, as compared with 75.4 per cent on March 25. In contrast with the figures of a year ago, the Federal reserve note circulation has declined 49 millions and the cash re serves have fallen 53 millions. These changes in the course of a year reflect to some extent the effects o f the policy adopted in April, 1924, of making pay ments partly in gold certificates instead of in Federal reserve notes. Firmness in money rates toward the close o f March was followed by greater ease in April. Commercial paper was generally offered in New York at 4 per cent throughout the month, although within recent weeks a fair amount of such paper has been sold in other cen ters at per cent. Bankers’ accept ances maturing in ninety days were o f fered at 3)4 per cent till the beginning o f April, but the rate has since declined to 3)4 per cent. The Dow-Jones average o f 20 indus trial stocks on April 22 was $120.52 as against $119.60 a month before, but in the same period the average o f railroad stocks fell from $97.35 to $95.61. The bond averages show advances. During March an increase o f only .02 o f one per cent took place in savings deposits, according to reports received from 99 banks in the Philadelphia (T hird) Federal Reserve District. The totals for nine cities increased, but de clined in seven others. Percentage changes follow : Changes April 1, 1925, compared with Cities Previous month Allentown.......................... Altoona.............................. Bethlehem......................... Chester............................... Easton................................ Harrisburg......................... Johnstown......................... Lancaster........................... Philadelphia...................... Reading............................. Scranton............................ Trenton.............................. Wilkes-Barre..................... Williamsport..................... Wilmington....................... Y ork................................... Others................................ Totals......................... Previous year -i.o % + 1 .2 “ - .3 “ + 1 .7 “ -7 .8 “ + 3 .6 “ + .8 “ -3 .4 “ + .4 “ - 1 .1 “ - .1 “ + .02% + 4 .7 % + .1 “ - .4 “ - .3 “ + 7.1% + 9.0 “ + 5.6 “ + 2.9 “ + 16.7 “ + 20.3 “ + 1.7 “ + 17.6 “ + 7.2 “ + 11.4 “ + 11.5 “ + 1.5 “ + 9.9 “ + 8.2 “ + 4.9 “ + 16.0 “ + 4.4 “ + + 7.2% .02% Commercial paper. Sales of com mercial paper in the Third Federal Re serve District increased early in A p ril; this improvement was mainly in Phila delphia. Later in the month the mar ket became quiet. The largest trans actions have been at 4 per cent but a number o f sales were also made at 4)4 and at 4)4 per cent. In the middle west important dealings are reported at 3^4 per cent and some short maturities have also sold in this market at that rate. The amount of new paper coming to dealers is small and their lists are com paratively light. In March the sales of six dealers in this district were $7,610,000; this com pares with $9,532,500 in February and $11,181,400 in March, 1924. The amount sold to Philadelphia banks was $3,032,500 and to outside institutions $4,577,500. The rates at which these sales were closed varied from 3)4 to 4)4 per cent, but about 70 per cent of the total was at 4 per cent. Page Three FINANCIAL STATISTICS Philadelphia Federal Reserve District Changes in course of 000’s omitted in all figures except percentages Latest One month One year Reporting member banks: Loans secured by stocks and bonds............................. All other (largely commercial) loans........................... $336,800 366,600 +$2,400 + 6,700 + $ 58,900 + 2,900 Total loans.................................................................. Investments.................................................................... $703,400 368,800 +$9,100 -1 3,00 0 + $ 61,800 + 71,100 Total loans and investments..................................... Total deposits................................................................. $1,072,200 963,500 -$ 3,90 0 - 1,500 +$132,900 + 140,300 Federal Reserve Bank: Bills discounted.............................................................. Other earning assets...................................................... $36,000 51,000 -$ 5,10 0 0 + $2,100 17,700 Total earning assets................................................... $87,000 -$5,100 + $ 15,600 Federal reserve note circulation................................... Total deposits................................................................. Cash reserves.................................................................. Reserve ratio.................................................................. $148,100 130,500 212,100 76.1% -$ 6,70 0 + 2,100 - 1,400 + 0.7 % - $ 49,300 + 13,100 53,400 - 8 .2 % Debits (banks in 18 cities)*.............................................. Savings deposits (99 banks)............................................. Bankers’ acceptances :f Purchases by 5 dealers.................................................. Sales by 5 dealers: To Federal Reserve Bank......................................... To others.................................................................... Executed by 11 banks!................................................. Commercial paper sales, 6 dealers................................... $550,485 565,995 +$28,323 + 161 + $34,203 + 39,283 482 1,378 83 4,279 7,610 - 352 - 99 - 141 61 663 2,103 + + - 1,322 380 684 3,594 New York City April 22, 1925 Actual figures in all columns Money rates: Commercial paper.......................................................... Bankers’ acceptances..................................................... Call money renewals...................................................... Security price averages: 20 industrial stocks........................................................ 20 railroad stocks........................................................... ♦Weekly totals. jWeekly averages. R E T A IL T R A D E Year ago 4% 3H% 4% 4% 3^% 3H % 4K -4M % 4-4 ys% 4% $120.52 95.61 91.94 101.84 $119.60 97.35 91.24 101.50 $89.22 81.20 87.94 100.04 JTotal for month ending 10th. Easter sales were heavy in volume, and although buying has since slowed down considerably, preliminary reports indicate that April sales will nearly equal those of a year ago. Last year Easter came a week later, consequently there were more preceding shopping days in April, than in the same month this year. Mediumpriced and cheap goods are moving in good volume, but even in these classes o f merchandise, retailers find it necessary to hold frequent price-cutting sales to produce business. Department stores report that silk hosiery and gloves, underwear, leather goods, toilet goods, children’s dresses, boys’ clothing, curtains, draperies, silk yard goods and dress goods are selling actively. Neckwear, underwear, light suits and hats are the most active items in men’s apparel, and silk hosiery, fancy gloves, underwear, dresses and coats are the best sellers in women’s apparel. Lino leums, lightweight rugs and carpets, draperies, livingroom suites, refrigera tors and porch furniture are moving in Page Four Month ago good volume at house-furnishing stores. Women’s shoes, particularly black or blond satins and tan calf, and children’s shoes are in good demand, but men’s shoes are selling only in fair volume. Prices, in general, are firm and show no change from those prevailing in March. Collections in many cities are reported as being slower than they were last month. W H O LESALE TRADE Sales at wholesale during April are described by dealers as only fair, and in nearly all instances are for prompt delivery. Prices have not changed greatly, but reductions have been made in the quotations for a number o f the most used groceries, including sugar, coffee, tea and starch and also for botani cal drugs. A sharp drop in the prices o f radio equipment is also to be noted. In March sales were larger than in February in all lines except electrical supplies, a feature being the notable gain in shoes. Transactions, however, were smaller than in March, 1924, except in shoes, drugs and hardware. Stocks as a whole are lower as compared with the previous month and with March, 1924. The increases were both few and small as compared with the decreases. Collec tions are better than they were a month ago in all lines, but as compared with March, 1924, four lines are better and four are poorer. H ardw are. Thirty-two wholesale hardware firms in this district report that their combined net sales during March were 31 per cent larger than they were during the preceding month and 2.4 per cent greater than in March o f last year. The demand for builders’ hardware is increasing and agricultural implements and garden tools as well as all seasonal goods are beginning to move actively. Prices in nearly all instances are the same as they were last month, but as compared with those prevailing at this time last year, they are slightly higher. On the other hand a few grades o f gar den tools and farm equipment are said to be lower than they were in the spring of 1924. Jew elry. Only a fair volume o f sales during April is reported by wholesale jewelers, and these were confined prin cipally to staple articles such as watches, diamonds, rings, bracelets and platinum ring mountings. Some wholesalers state that their outstanding purchases are larger now than they were at the same time in 1924, but a larger number re port that they are about the same. Re tailers are buying only for their imme diate needs. Price levels are unchanged. Sales in March were 9.0 per cent larger than in February, but 6.6 per cent smaller than in March, 1924. E le ctrica l supplies. The call for electrical supplies is scarcely fair and both wholesalers and retailers say that it is not as strong as it was either at this time last month or a year ago. That this condition was also true in the preceding month is shown by the reports c f seven wholesale electrical firms in this district whose net sales during March were 1.1 per cent smaller than in Febru ary and 10.5 per cent less than during March, 1924. Radio supplies are in fairly good request, partly on account o f sales, which have tended to reduce prices. W ir ing supplies, too, are moving in good volume, with prices somewhat under those listed four weeks ago. Stocks are moderate and stationary. Stocks held by reporting wholesale firms at the end of March were 7 per cent smaller than on the last day of the preceding month and 5.1 per cent lighter than on March 31, 1924. According to wholesalers, the ratio of accounts outstanding to sales was lower in March than it was in the month be fore.and during March o f last year. Shoes. Until Easter the demand for shoes was good, but since then the usual RETAIL TRADE Philadelphia Federal Reserve District Comparison of net sales Mar., 1925, with Mar., 1924 Stock turnover Comparison of stocks Jan. 1 to Mar. 31, 1925, Mar. 31, 1925, Mar. 31, 1925, with with with Jan. 1 to Mar. 31, 1924 Feb. 28, 1925 Mar. 31, 1924 1925 1924 + 4.3% + 5.1 “ - 1.3% 1.9 “ + 1.8% + 3.6 “ + 11.7 % + 14.1 “ .791 .926 .802 .922 + + - 0.9 “ 0.2 “ 7.7 “ 3.1 “ 2.4 “ 2 .8 “ 2.1 “ 0.2 “ 6.1 “ 0 1.9 “ 6.0 “ 3.6 “ 1 .4 “ - 0.5 “ - 4.8 “ + 16.2 “ + 3.1 “ - 9 .5 “ + 1 .5 “ -1 1 .1 “ - 1 .4 “ + 4.1 “ + 4.4 “ - 9.4 “ + 14.7 “ - 3.2 “ + 5 .4 “ + 8.1 “ + 6.7 “ + 14.4 “ + 8 .8 “ + 13.1 “ + 10.9 “ + 7.6 “ + 4.4 “ + 9.7 “ + 8.1 “ + 11.2 “ + 5.2 “ + 1 1 .8 “ + 9.9 “ .620 .669 .612 .616 Harrisburg.................... Johnstown..................... Lancaster...................... Reading......................... Scranton........................ Trenton......................... Wilkes-Barre................. Williamsport................. Wilmington................... Y ork.............................. All other cities.............. + 4.9 “ - 0.2 “ + 5.9 “ + 5.9 “ - 4.0 “ + 9.9 “ + 1 .8 “ + 1.6 “ + 0.5 “ + 1 .4 “ - 2.3 “ + 10.6 “ + 2.7 “ + 1.1 “ .530 .671 .601 .542 .674 .663 .712 .576 .425 .602 .464 .533 .691 .612 .493 .676 .704 .690 .478 .435 .593 .484 All department stores. . . . in Philadelphia............. _ outside Philadelphia_ + 2.5 “ + 2.2 “ + 3.1 “ - 2.7 “ - 4.5 “ + 0.9 “ + 1.2 “ + 3.2 “ - 1.7 “ +12.1 “ + 14.8 “ + 8.3 “ .790 .902 .623 .809 .946 .608 All apparel stores............. Men’s apparel stores........ in Philadelphia............. outside Philadelphia. . . Women’s apparel stores... in Philadelphia............. outside Philadelphia. . . + 15.3 + 3.7 + 2.7 + 5.0 + 20.4 + 2 0 .8 + 18.1 + + + + + + + + + + + + + + 13.2 + 9.1 + 4.6 + 13.7 + 17.5 + 16.9 + 19.7 “ “ “ “ “ “ “ 1.014 .550 .659 .449 1.507 1.683 .900 .957 .538 .622 .458 1.409 1.587 .832 All reporting firms........... Firms in Philadelphia. . . . Allentown, Bethlehem and Easton............... Altoona......................... “ “ “ “ “ “ “ Credit houses.................... - Shoe stores........................ +24.1 “ 3.9 “ + + 7.2 2.6 5.9 1.5 9.5 10.4 4.9 2.8 “ 3.6 “ 6.6 “ 1 .0 “ 1.9 “ 2.4 “ 0.4 “ 2.6 “ + 8.3 “ + 5.3 “ .514 .555 +10.7 “ + 4.6 “ + 12.1 “ .569 .529 - lull is reported and it is uncertain whether sales in April will be as large as they were in April, 1924, when Easter was a week later. Shoes most in demand in cluded women’s pumps in strap and gore effects made of patent leather, black satin and tan calf, men’s and boys’ oxfords in tan and dull calf, and misses’ and chil dren’s patent and tan calf oxfords and strap pumps. In sport shoes tan calf oxfords with crepe soles predominated. Wholesalers report that not only are stocks lower than they were last year but that their outstanding purchases are smaller. Prices are firm but have not changed during the month. Orders on the books consist largely o f tennis shoes for late April or May shipment and rub bers for autumn delivery. Sales in March showed a satisfactory gain, and were larger by 67.4 per cent than in February and by 17.5 per cent than in March, 1924. Stocks were lower by 10.7 per cent on March 30 than on that date in 1924. Paper. The call for paper is fair and, though it is not quite as good as in March, is about equal to that of a year ago. Book and fine papers are not sell ing as well as in March, but wrapping and kraft papers are in better demand. Newsprint continues in good request. Tissues, crepes, cardboards and building boards are moving in only fair volume. Prices are unchanged. Sales during “ “ “ “ “ “ “ March were 12.8 per cent greater than in February but 4.7 per cent smaller than in March, 1924. Jobbers’ stocks at the end o f March were 0.6 per cent smaller than at the close of February. Drygoods. During April conditions in the wholesale drygoods business have been spotty, some reports stating that sales are increasing though others take the reverse view. From preliminary esti mates it appears than the total volume for April will approximate that of the corresponding month in 1924. Retailers in the main continue their hand-to-mouth buying policy, but a fair quantity of fall goods has been purchased by them. The lines in which sales for late sum mer or early autumn delivery have been made are gloves, sweaters, underwear and hosiery. For immediate delivery, novelty dress goods, ginghams, percales, dress trimmings, laces, neckwear and hosiery are in request. Prices have varied but little and, on the whole, are the same as they were a month ago. Outstanding purchases by wholesalers are smaller than at the same date in 1924. Sales in March were 15.5 per cent larger than in February, but 3.7 per cent smaller than in March, 1924. Stocks on March 30 were 19.6 per cent lighter than on that date in 1924. Drugs. The market for drugs con tinues active, the demand being about equal to that o f March, but greater than in April, 1924. Insecticides, spraying ma terials, disinfectants and spring specialties are the best sellers. Drugs and fine chemicals are the same in price as they were last month, but botanicals are a trifle lower. The “ Oil, Paint and Drug Reporter’s” index number for 35 drugs and fine chemicals on April 20 was 202.5 as compared with 202.9 on March 16; that for 40 botanical drugs on April 20 was 119.2 as against 122.1 on March 16. Sales in March were 9.0 per cent greater than in February and 7.2 per cent larger than in March, 1924. Groceries. Groceries are selling in fair volume and the demand shows little change from that of March. Dried fruits, canned vegetables and fruits, jellies and staples are selling in good volume. The general price trend, for the first time in months, is now downward. Sugar, syrup, coffee, prunes, dried beans, currants, corn meal, bulk oats, starch, and canned as paragus are cheaper than they were a month ago; only cottonseed oil and but ter are higher. Sales in March were 3.1 per cent larger than those of February but 4.7 per cent smaller than in March, 1924. Stocks at the close of March were 4.2 per cent smaller than at the end of February, but were 4.1 per cent larger than at the end of March, 1924. WHOLESALE TRADE Philadelphia Federal Reserve District Net sales Mar., 1925, com pared with Feb., 1925 Boots and shoes. . . . Drugs....................... Dry goods................ Electrical supplies... Groceries.................. Hardware................. Jewelry..................... Paper........................ Mar., 1924 + 67.4% + 9 .0 “ + 1 5 .5 “ - 1.1 “ + 3.1 “ + 31.0 “ + 9 .0 “ + 1 2 .8 “ + 17.5% + 7 .2 “ - 3.7 “ -1 0 .5 “ - 4.7 “ + 2.4 “ - 6 .6 “ - 4.7 “ Stocks Mar., 1925, com pared with Feb., 1925 + + + - Mar., 1924 Accounts out standing Mar., 1925, com pared with Feb., 1925 5.8% -1 0 .7 % + 21.0 % + 0.7 “ 0.2 “ -1 9 .6 “ + 3.3 “ 7.0 “ - 5.1 “ - 8 . 0 “ 4 .2 “ + 4.1 “ - 4 . 2 “ 2.3 “ - 1.1 “ + 9.1 “ 1 .2 “ + 0.6 “ + 0.9 “ 0.6 “ + 0.7 “ + 1 .4 “ Ratio of accounts outstanding to sales Mar., 1924 Mar., 1925 Feb., 1925 Mar., 1924 + 0.8% + 11.5 “ -1 2 .0 “ -1 5 .6 “ - 4 .6 “ + 3.0 “ + 11.6 “ - 3.6 “ 209.9% 153.0 “ 222.4 “ 132.7 “ 112.9 “ 176.6 “ 433.6 “ 127.3 “ 293.3% 163.8 “ 248.7 “ 142.6 “ 122.6 “ 212.1 “ 4 6 8 .8 “ 141.6 “ 242.9% 148.2 “ 243.6 “ 140.7 “ 114.2 “ 175.4 “ 362.7 “ 125.9 “ Page Five B U IL D IN G Chief among the developments in the Third Federal Reserve District during March was the unprecedented rise in the total estimated value of new construction. Comparisons with the figures for March 1924 may be seen in the table below. It is worthy of note that the total value of building permits in March was more than double that during February and a third greater than in March 1924. Though Philadelphia contributed the greatest in dividual increase, all reporting cities en joyed substantial gains over the previous month. Attention is called to the fact that Easton is now included in the list of reporting cities and that comparisons henceforth will be made on the basis of 16 instead o f the usual 15 cities. The total volume of building contracts in 36 states rose sharply in March of this year as is usual at the beginning of spring. The am ount of industrial and business con struction was greater than in March of last year but that of residential and public and semi-public con tracts was less. Source— F. W . Dodge Corporation Cement. Though an increase in the demand for cement is usual in the spring, it is interesting to note that the call so far this month, which has been good, is now materially better than it was at this time last year. Reports received from manufacturers are in the main optimistic; production appears to be at close to rec ord levels for the season, with manu facturers in this district working at close to maximum output. Unfilled orders are larger than they were a month ago and, though production schedules were main tained at a good rate throughout the winter, shipments are now such that manufacturers will be able to run their plants practically a.t capacity for the balance o f the spring season. Stocks of finished goods are heavy and for the most part stationary, while supplies of raw ma terials are held in moderate quantities. Prices o f both finished cement and raw materials are generally firm and are unchanged from those listed at this time last month. Collections are fairly good. Page Six U. S. output * In thousands of barrels 1925 January................... February................. March..................... 8,856 8,255 11,034 Per cent of change 1924 8,788 8,588 10,370 + .8 -3 .9 + 6.4 * Estimated by the Geological Survey. Lumber. Reflecting the seasonal in crease of new construction, the call for lumber is fairly good and is distinctly better than it was a month ago, though both dealers and manufacturers report that it is not as satisfactory as it was at this time last year. Some grades of hardwood, however, are not moving as well as was expected, but supplies of West coast lumber are going forward in good volume. Prices of both finished lumber and raw timber are weak and quotations for nearly all products are lower than they were four weeks ago. This is par ticularly true of prices of the better qualities o f hardwood and of North Caro lina pine. Stocks held by manufacturers are heavy and stationary in spite of the fact that substantial shipments have been made and that most of the orders on the books specify delivery either at once or within 60 days. The size of the total unfilled orders is much the same as it was in March but the average rate of 75 per cent of capacity, at which report ing mills are running, is somewhat less than it was a month ago. Collections are better than fair but are not as prompt as they were in April 1924. Paint. Earlier in the year jobbers and dealers entered the market for fairly sub stantial quantities o f paint for the spring trade, and they are now engaged in dis posing of these supplies before placing new orders. Nevertheless, nearly all manufacturers reporting to us are agreed that the present call is better than it was a year ago. As is usual at this season, practically all of the orders on the books of reporting firms are for shipment either immediately or within 60 days and, as stocks of finished paint are, in general, moderate and decreasing, out put and demand are now thought to be fairly well adjusted. Paint makers re porting to this bank are operating their equipment at about 70 per cent o f ca pacity, which is slightly below the aver age rate of a month ago. Prices of both finished goods and raw materials are in some instances weak and lower than they were at this time last month. This is especially true of quota tions for white and pig lead and linseed and china wood oils. On April 23 linseed oil was quoted at $1.04 per gallon, car load lots (cooperage basis), as compared with $1.09 per gallon on the correspond ing date o f the preceding month. Collections are either fair or good. IR O N A N D S T E E L As the season advances it becomes in creasingly apparent that production since the late fall of 1924 has been greater than consumption. Since most of the in coming orders can now be filled imme diately from stocks, consumers are re stricting their purchases to current needs. This has resulted in a lessened demand for nearly all iron and steel products during the past month, a further soften ing in prices, and a curtailment of pro duction schedules throughout the industry as a whole. The demand for machinery and tools and both light and heavy hardware, how ever, is fairly good and better than it was BUILDING PERMITS Philadelphia Federal Reserve District January 1 to March 31 March, 1925 March ,1924 1925 1924 No. Estimated cost in thousands No. Estimated cost in thousands No. Estimated cost in thousands No. Allentown............ Altoona................ Atlantic C ity. . . . Bethlehem........... Camden............... Easton................. Harrisburg........... Lancaster............ Philadelphia........ Reading............... Scranton.............. Trenton............... Wilkes-Barre....... Williamsport....... Wilmington......... York..................... 142 225 174 65 178 40 96 79 1,718 351 199 252 187 173 102 154 $964 276 932 394 869 556 392 419 22,425 791 780 779 562 495 788 244 136 173 197 59 149 41 121 116 1,610 293 141 220 150 108 112 156 $712 345 593 129 402 154 890 1,012 15,757 667 372 847 315 129 972 322 177 338 422 82 335 65 160 147 3,289 522 368 421 282 227 193 228 $1,318 598 2,250 416 1,283 1,118 681 709 39,313 1,426 1,285 1,254 1,170 584 1,163 481 200 297 482 97 288 65 198 196 3,450 544 306 404 279 144 240 288 $1,252 492 1,617 229 1,174 297 1,223 1,906 31,573 1,133 845 1,346 706 197 1,257 532 Total............ 4,135 $31,666 3,782 $23,618 7,256* $55,049* 7,478* $45,779* * Williamsport figures for January are not included. Estimated cost in thousands a month ago and structural steel too is moving more actively, as is usual in the spring. But the call for pig iron, crude steel, plates, iron and steel castings and iron bars has subsided noticeably. Prices of several grades of pig iron were reduced from $1 to $1.75 per ton, during the month. Quotations for Phila delphia 2X pig iron are now listed at $22.51 per ton as compared with $24.26 on March 23. The weakness in prices of finished steel has been accentuated by concessions granted from time to time, and quotations in many instances are now lower than they were four weeks ago. The “ Iron A ge” composite price of pig iron fell from $21.88 to $20.75 in the month ending April 21, and that for finished steel .declined 57 points to 2.474 cents per pound during the same period. Production of pig iron is declining to some extent, as is evidenced by the clos ing down of blast furnaces both in this and other districts. Only one furnace was shut down in the Third Federal Reserve District during March but in western Pennsylvania two went out of blast in that month and early in April several more were blown out in the Pittsburgh and Youngstown areas. A c cording to the “ Iron Age,” the Steel Corporation as a whole is operating at below 85 per cent of capacity and the independent companies probably at about 70 per cent. Notwithstanding expecta tions to the contrary, output of both pig iron and steel ingots was greater in March than in February but unfilled orders of the United States Steel Corporation de clined substantially, as will be noted in the table below. In gross tons March February Production— Pig iron...................... Steel ingots................ Unfilled orders— U. S. Steel Corp......... 3,564,247 4,180,413 3,214,143 3,740,004 4,863,564 5,284,771 Steel foundries. Moderate increases were noted in most o f the operating items o f the five steel foundries report ing to this bank. In accordance with the increased production stocks o f pig iron and scrap steel decreased during March. Change from February Steel foundry operations March Capacity.......................... Production....................... Shipments........................ Value............................ Unfilled orders................ Value............................ Raw stock: Pig iron........................ Scrap............................ Coke............................. 6,050 tons 4,377 “ 3,310 “ $535,678 4,491 tons $1,307,782 + + + + 2,448 tons 8,000 “ 481 “ -1 3 .8 “ -1 3 .6 “ + 8.8 “ 0 7.5% 1.7 “ 1.1 “ 5.2 “ 2.0 “ Iron foundries. Gains during March in nearly all operating items were re ported by 38 iron foundries in this district whose combined iron-making capacity totals 13,635 tons per month. As will be noted in the table below, the greatest in creases over the February totals occurred in the output of malleable iron and in the value of shipments of both grades. The only declines were those in stocks of pig iron and coke. Iron foundry operations March Capacity.......................... Production....................... Malleable iron............. Gray iron..................... Jobbing.................... For further mfr........ Shipments........................ Value............................ Unfilled orders................ Value............................ Raw stock: Pig iron........................ Scrap............................ Coke............................. 13,635 tons 6,419 “ 1,265 “ 5,154 “ 3,616 “ 1,538 “ 4,937 “ $779,954 3,989 tons $631,204 9,639 tons 3,311 “ 2,214 “ Change from February + + + + + + + + + 0 8.6% 14.0 “ 7.4 “ 9.1 “ 3.6 “ 10.5 “ 14.7 “ 6.2 “ 5.6 “ - 4.0 “ + 4.4 “ - 4.3 “ S H IP B U IL D IN G There has been little change for the better in the shipbuilding industry dur ing the past six months and shipbuilders reporting to us state that the demand for new ships at this time is extremely poor. It is true that recently a few orders were placed by the city for dump scows but since the first of the year there has been no increase in shipbuilding. The greater part o f the work now being done is the construction of Diesel engines, steam turbines and other hydraulic and motive machinery. One large builder re ports that his plant is being operated at 75 per cent o f capacity but that only onefourth o f the equipment now in use is devoted to the construction and repairing of ships. Another plant is being run at only 25 per cent o f maximum output. Prices of new ships are much the same as they were six months ago but quota tions for raw materials are said to be slightly lower. The supply of skilled labor is now suffi cient, but at various times within the last three months satisfactory unskilled workers have been difficult to obtain. COAL Anthracite. A fter a slackening in the demand for anthracite which began last month the market has lately improved to some extent on account o f the restock ing programs begun by dealers. Some revisions in classifications o f domestic sizes were put into effect this month in an endeavor to increase the consumption o f the small grades o f anthracite. This is expected to improve a situation which dealers and operators have long wished to remedy. Steam sizes are moving fairly well with rice and barley coal in best request. In some instances, independent prices are higher than they were a month ago, but company quotations for domestic sizes are from 40 to 75 cents lower. On April 23, company prices of stove grades were listed at from $8.75 to $8.90 per ton as compared with from $9.15 to $9.50 on the corresponding date o f the preceding month. On the other hand, quotations for rice and buckwheat sizes are from 25 to 50 cents higher than they were a month ago. Production in each of the past five weeks and during the corresponding weeks o f 1924 is shown in the table below. In thousands of net tons Week ended March 21.. March 28.. April 4.. . April 11 ... April.18.. . 1925 1,513 1,640 1,482 1,723 1,567 Per cent of change 1924 1,804 1,942 1,548 1,856 1,623 -1 6 .1 -1 5 .6 - 4.3 - 7.2 - 3.5 Bituminous. There has been no im provement in the bituminous market dur ing the past month. Demand is ex tremely quiet, not only in this district, but in other parts of the country as well. At the present time there is very little difference between spot and contract quotations though the former are, if any thing, somewhat lower. Prices are weak, though established quotations are the same as they were a month ago. For several weeks Pool 10 coal has been priced in Philadelphia at from $1.55 to $1.80 per ton. Operators reporting to us say that their operating schedules have been materially curtailed during the month and that this condition is largely representative of the industry as a whole. This is borne out by the figures in the table below showing the decline in total weekly production. The national output is now noticeably less than it was at the end o f March. Week ended March 21.. March 28.. April 4.. . April 11.. April 18. . In thousands of net tons 1925 1924 8,283 8,353 7,546 7,890 7,509 9,573 9,122 7,041 6,983 7,142 Per cent of change -1 3 .5 - 8.4 + 7.2 +13.0 + 5.1 Coke. With consumers carrying suffi cient stocks on hand to care for all im mediate needs, the demand for coke is inactive and promises to remain so until such time as buyers enter the market for third quarter requirements. Prices are weak and lower than they were at this time last month. On April 23, furnace coke was quoted at $3.00 per ton as com pared with $3.25 on March 23, and prices of foundry grades were reduced from $4.25 to $4 per ton during the same period. Since the middle o f March production Page Seven of beehive coke has declined still further, as will be seen in the table below. Week ended In thousands of net tons 1925 March 21.. March 28.. April 4 .. . April 11... April 1 8 ... 226 221 220 214 201 Per cent of change 1924 315 296 278 265 256 -2 8 .3 -2 5 .3 -2 0 .9 -1 9 .2 -2 1 .5 National output of by-product coke in March totalled 3,468,000 tons as com pared with 3,125,000 tons in the preced ing month and 3,220,000 tons during March, 1924. COTTON Raw cotton. Trading in cotton con tinues active, but buying for foreign ac count is not up to the level of the previ ous month. This is shown by the fact that exports for the five weeks ended April 17 decreased to 723,060 bales from 910,330 bales for the similar period of last month but they greatly exceed those o f last year which totalled 374,514 bales. Domestic consumption, on the other hand, rose to 641,519 bales in March as against 600,730 bales in February and 527,037 bales in March, 1924. Supplies in con suming establishments, public storage and at compresses on March 31 were 20.3 per cent below those o f February 28, but they exceeded those o f last year by 5.1 per cent. The present outlook for the new cotton crop is rather auspicious, des pite the alternating reports of favorable and adverse weather conditions and the threat o f the boll weevil pest in certain large sections o f the cotton belt. The following table shows the present position o f American cotton: American cotton (thousands of bales) Season ’24-25 Season ’23-24 Visible supply at end of previous season (July 31)............... 952 Crop in sight, on April 17................. 13,762 870 1,968 10,376 10,293 14,714 11,246 12,261 3,311 2,079 1,978 11,404 9,167 10,283 Total.................. Visible supply on April 17................. W orld ’s takings to April 17................. Season ’22-23 Price fluctuations have been relatively narrow during the month, but the aver age quotations for spot cotton have fallen off to 24.60 cents a pound for the week ended April 18th, as compared with 25.67 cents on March 21 and 28.75 cents a year ago. Cotton yarns. Business in cotton yarns in this district has failed to im prove during the past thirty days. With Page Eight the exception o f mercerized yarns which are selling in moderate volume, current orders are still confined to small lots, sufficient to cover the immediate require ments. In consequence nearly all sales call for quick shipments. Stocks of fin ished yarns are not excessive. Prices o f combed yarns have main tained a steadier level during the greater part of the month than those of carded yarns. Lately, however, quotations for nearly all varieties of cotton yarns have turned downward. Fairchild’s index number dropped to 42.12 for the week ended April 18 from 44.44 on March 21 and 47.50 last year. This decline is in sympathy with the current trend o f quo tations for raw materials and cotton goods. Buyers of yarns persist in search ing the market for bargains. Collections are fairly prompt. In recent years prices of woolen and worsted goods have followed quotations for all com modities more closely than have the prices of cotton fabrics. Although lately cloth prices have turned downward, they are still above the level that pre vailed in April, 1922. Source— Bureau of Labor Statistics Cotton goods. Although the volume o f new busness during the past thirty days has not come up to the expectations of most manufacturers o f cotton goods, it continues fairly good. Indeed, present indications point to an increased demand for both grey and finished fabrics. Print cloths, wash goods, towelings, rayon mix tures and novelties are selling steadily, numerous orders calling for deliveries during May and June. Orders for such domestics as sheetings, however, are lim ited to small lots, sufficient to cover im mediate requirements. The average rate of production in this district has risen to about 75 per cent of capacity from that o f 70 per cent last month, and it compares favorably with the corre sponding month of a year ago. The total o f unfilled orders remains about the same as it was last month. Supplies o f fin ished products, though generally moder ate, are somewhat large and are increas ing in some instances, but stocks o f raw materials are for the most part medium and are unchanged from those o f the previous month. Along with the slight recession of quo tations for raw cotton and yarns, prices for manufactured goods have, in the main, eased off slightly, though advances on some wanted weaves have also been reported. Fairchild’s index of average quotations stood at 15.6 for the week ended April 18 as against 15.8 a month ago and 16.1 last year. Sellers continue to encounter opposition to prices from the wholesale and retail trades. Accounts are being settled with fair promptness. WOOL Raw wool. No appreciable improve ment has been reported in the local wool market during the past thirty days. Sales have not come up to the volume o f those o f last month or o f a year ago. W ool consumption in the Philadelphia district during March, as shown by returns from 84 establishments, was 0.8 per cent be low the February level. Imports of foreign wools during March totaled 35,791,120 pounds, as compared with 37,724,975 pounds in February and 41,057,830 pounds in March o f last year. Shearing in the West has already begun in some wool-growing sections, as is evidenced by a few receipts o f small lots of the new clip. Local supplies remain light. Dun’s average o f ninety-eight quota tions of domestic wools dropped to 88.31 cents a pound on April 18 from 98.22 cents on March 20, but they are about 7 per cent higher than those o f last year. Since the last auction sales quotations for foreign wools have been somewhat stead ier than those for domestic qualities, but they, too, have declined. Woolen and worsted yarns. Prin cipally because o f unsettled conditions in the wool market and lagging demand from the manufacturers of piece goods, business in yarns has not been as active as it was in the preceding month or a year ago. While inquiries from the men’s wear and dress goods trades are numer ous, actual sales o f both woolen and worsted yarns can hardly be called fair. Carpet yarns, however, appear to be in slightly better request, but they, too, are affected by the seasonal quiet that pre vails in the carpet industry. Although the amount o f orders for future delivery decreased somewhat during the month, the rate o f production continues un changed at an average of about 75 per cent o f capacity. Supplies o f both finished products and raw materials are from moderate to light and are either stationary or decreasing. Prices of Bradford weaving and knit ting yarns have remained fairly steady during the month, but those o f the French worsted spun yarns have receded slightly, owing probably to the further decline in quotations for wool and tops. Collections are fairly prompt. SHEEP AMD PRODUCTION OF WOOL MILLIONS Or SHEEP U N IT E D S T A T E S MILLIONS OF POUNDS piled from the principal warehouses in New Y ork City show the follow ing: In bales March, Febru- March, 1925 ary, 1925 1924 Stocks....................... Imports..................... Mill takings.............. It will be noted that the drop in wool produc tion during the years 1920 to 1922 was less marked than that in the number of sheep, owing to the increased yield per head. The present stock of ewes, curtail m ent of slaughtering, and firm quotations for both wool and sheep indicate a steady im provement in this industry. Source—Department of Agriculture W oolen and worsted goods. Most of the reports from manufacturers of men’s and women’s fabrics show that con ditions in the woolen and worsted indus try continue practically unchanged. While sales in some instances compare favorably with those o f last month or a year ago, the bulk of the current orders, particu larly for worsted goods, are restricted chiefly to small lots calling for prompt shipment. Requests, however, for de liveries during June and July are not wanting. The apparent swing in demand from novelties to staples, as evidenced at the various openings o f the fall lines, gives producers much encouragement for the future. Meantime, the rate o f out put averages about 65 per cent of capac ity, and unfilled orders on hand will insure operation at this rate for a period o f about eighty days on the average. Stocks o f finished goods and raw ma terials are moderately light, and are either stationary or decreasing. With a few exceptions, the wholesale prices of woolen and worsted cloths re main firm and unchanged from those of last month. But as compared with quota tions that prevailed last year, the current prices of certain weaves are a trifle lower. Buyers continue to resist prices. Collec tions, while slow in a number of instances, are fairly satisfactory. S IL K Raw silk. Increased deliveries to mills and pronounced declines in imports and stocks reflect the present activity in the market for raw silk. Manufacturers of silk goods have purchased freely, most of their orders calling for shipment dur ing the next three or four months. Buy ing o f raw silk abroad, however, can hardly be characterized as active. Such slackening is not unusual as the end of the silk season draws near. Figures com 46,663 31,571 45,157 60,249 39,046 37,529 30,375 16,692 26,543 Quotations have fluctuated within a range of from ten to fifteen cents a pound, though the rate of exchange for yen has remained fairly steady during the month. Kansai double-extra cracks were quoted at $6.58 a pound on April 20, as compared with $6.50 on March 23 and $6.15 last year. Silk goods. Broad silks continue to sell in increasing volume. All reports received by this bank show that the amount o f business transacted during the past month has greatly exceeded that for the corresponding period of last year. Satins, crepes and such sheer silk fabrics as georgette are in good request. The call for ribbons has also improved some what, and the demand for rayon prod ucts is said to have been for some time ahead o f the supply. Although most of the current orders call for delivery within the next sixty days, sales for shipment during June and July are fairly numerous. Evidence o f the present activity is, more over, shown in the fact that mills are now working nearly at capacity, the average rate o f output being about 95 per cent, which is slightly higher than it was last month. Unfilled orders on hand, however, remain practically un changed, insuring operation at the pres ent rate for a period o f seventy days on the average. Supplies o f both finished goods and raw materials are moderately light. Prices have maintained a fairly steady level during the month, although some slight recessions have been noted. This is probably attributable to a slight shad ing of quotations for raw silk and to the closing o f the spring season in this in dustry. Opposition to prices is negligible. Payment o f accounts is satisfactory. H O S IE R Y Manufacturers of hosiery report that the demand continues good. A number of mills are sold up until July and a few for even a longer period. The heaviest call is for full-fashioned silk in both medium weight and chiffon for women, and for fancy seamless hosiery for women, and misses and children. This fancy hosiery is made of silk or of mix tures of rayon with either silk or mer cerized cotton. Men’s socks are in fair request, seamless hose of silk and rayon mixtures being good sellers. In this district 122 mills report that in March production increased 10.6 per cent and preliminary estimates indicate that output is being maintained in April at the high rate of the previous month; indeed a slight increase is anticipated by some manufacturers. The table shows February operations in 395 mills in the United States compared with those in the previous month. It is noteworthy that in spite o f several less working days pro duction and shipments both increased. Hosiery industry* United States in dozen pairs February change from Jan. 4,473,637 + .3 53,400 -1 3 .8 1,612,843 - 1.5 Full-fashioned, women. . . . 690,195 + 1.2 1,114,610 + 2.6 517,435 - 2.5 Children’s and infants’. . . . 447,077 + 5.4 38,077 + 3.2 4,206,380 + 1.5 Finished stock, end of month 7,926,147 + 3.3 4,596,249 - 9.7 114,546 -5 1 .3 Unfilled orders, end of month 8,964,555 + 3.2 *Compiled by the Bureau of the Census. Quotations for hosiery are unchanged and yarn prices, too, have been fairly stable, the greatest change being a de cline o f from 3 to 5 per cent in silk yarns. Labor, both skilled and unskilled, is in good supply, with wages unchanged. Collections are better than fair. UNDERWEAR The demand for underwear is good though not quite as active as it was a month ago. Prices are firm and gen erally unchanged; a few small advances, however, are reported for light weights. Operations in this district are on about the same large scale as in M arch; indeed, some manufacturers report that they have increased their output somewhat. P ro duction by 162 identical establishments in the United States in February was 468,711 dozens heavy weight and 699,688 dozens light weight garments, as com pared with 446,262 and 610,568, respec tively, in January. Shipments were 68,338 dozen garments larger in February than in the previous month and unfilled orders increased 12,994 dozens. Stocks are light and decreasing. Wages are unchanged, although some manufac turers state that skilled labor is scarce. Collections were fair and unchanged dur ing the month. C L O T H IN G Sales o f men’s clothing and shirts in this district have increased substantially over those o f the previous month and a year ago. Stimulated by favorable weather conditions and limited stocks on hand, both wholesalers and retailers have bought freely for their spring and sum mer requirements, quick delivery featur ing practically every sale. Considering the amount of advance business received thus far by many producers, the outlook for the fall is not devoid o f encourage Page Nine ment. This, however, must not be con strued as meaning that conditions in the clothing industry are wholly satisfactory; indeed, recessions in distribution and pro duction both of men’s clothing and fur nishings have occurred in several mills, but these are in the minority. The average rate of production is maintained at about 85 per cent o f capacity, but the volume of unfilled orders has declined to a point w’here it will insure operation at this rate for a period o f only about thirty days. W ith some exceptions, where stocks o f finished goods appear to be rather large, supplies of both manu factured products and raw materials are from moderate to light, and are gen erally decreasing. In the main, no advances in quotations have been reported during the month, the present level being as firm as it was a month ago or last year. Compared with the pre-war prices, the present quotations are about 70 per cent higher. Resistance to prices continues strong. Collections are fairly satisfactory. The calf skin market was weak in early April and the offerings contained a large percentage o f light-weight skins not de sirable for shoes for autumn, especially as the demand for calf leather for women’s pumps made of light-weight skins had decreased sharply. Later in the month, however, sales increased and prices advanced. Goat skins continue weak, most o f the purchases being of stock suit able for linings. Stocks in the United States, with the exception of goat and kid skins, de creased during February. There were fewer sheep and lamb skins in this coun try than at any period since January, 1921, the first month these statistics were gathered. An exceptionally heavy de crease— 34.5 per cent—has occurred since September 30, 1924. February 28 Change during February 4,748,511 2,738,544 4,769,259 7,421,662 Number of hides or sldns* -1% - 5.3 “ - 8.4 “ + 5.4 “ F L O O R C O V E R IN G S Comparatively little new business has come to manufacturers o f carpets and rugs during the past month. But suffi cient orders had been taken previously to keep many o f the mills busy until May 4, the opening o f the new season. The Alexander Smith & Sons Carpet Company have announced that on that date an auction sale of 92,000 bales of rugs and 6,500 rolls of carpet will begin. Prices for the new season will be gov erned in large part by the results of this sale. Production shows little change but probably is slightly smaller than it was a month ago, this being frequently the case towards the end of a season. Labor is in adequate supply and wages are un changed. Carpet wools and yarns are in some what larger supply and quotations are slightly lower, but are still much above those of 6 months ago. Transactions are reported as small. Linoleums and felt base goods are in good request and a slight increase in quo tations for felt base floor coverings was made by some manufacturers. Factories producing these smooth surface lines are running at capacity and are behind on deliveries on some lines. Linseed oil is lower in price than it was a month ago, and as this is the largest item in raw materals entering into linoleum, the change is an important one in the trade. ♦Compiled from figures of the Bureau of the Census. Leather. April has been a dull month in the leather trade. Sales have been small and have not been sufficient to absorb the output; therefore stocks have increased somewhat. Prices of upper leathers, including cattle side, calf and patent, are lower, and kid leather too, with the exception o f the low grades, is weak. Heavy leather quotations, though unchanged, in many cases are barely steady, and tanners report an increase in the use of composition and crepe soles. Sales o f leather belting are in fair vol ume, and those makers who did not ad vance prices early in March state that business is good. The table shows that the changes in stocks of leathers during February were, in the main, insignificant. Production was smaller in February than in January, partly because of the shortness of the month, and daily output in March did not vary greatly from that of the previous month, as is indicated by a gain of only .8 per cent in the total weekly wages paid by reporting tanners in this district in week of March 15 as compared with that of February 15. Change in February, 1925, as compared with January, 1925 * Production Stocks—end of month - 6.6% -3 1 .3 “ - 2.5 “ + 6.6 “ -1 7 .2 “ — 1.4 “ - 5.9 “ + -2 % + 1 .1 “ -4 .8 “ + .02 “ — .1 “ + 1 .3 “ -1 .5 “ LEATHER Hides and skins. Inactivity charac terized the hide and skin markets dur ing the past month. Packer hides in Chicago are unchanged, sellers endeavor ing to advance prices and tanners refus ing to raise bids. Country hides, how ever, on moderate buying, have recovered slightly from the extreme low figures. Page Ten Backs, bends and sides.... Offal, side and belting. . . . Cattle side, upper.............. Calf.................................... * Compiled from figures of the Bureau of the Census. Shoes. Salesmen for shoe manufac turers have started out with their fall lines but it is as yet too early to form any conclusion as to forward bookings. At present the only reports are from the south, where some sales have been closed. Comparatively few orders for May and June shipment have been taken, but it is anticipated by manufacturers that they will receive a good volume, as retailers are reported to have small stocks, fo l lowing the Easter business. Orders for white leather shoes are only fair, and for white fabric are small. Patent leather is the leading material for women’s wear, and calf, though still popular, is on the decrease. Prices of shoes are firm but generally unchanged, and a slight decrease in the quotations for most upper leathers is reported. Composition soles are being largely used in work shoes and crepe rubber soles predominate in lines for boys, growing girls and misses. Production in the United States during February was 26,903,438 pairs, an in crease o f 75,000 pairs as compared with February, 1924. In March the production was seasonally larger, preliminary reports showing an increase of 9.2 per cent. D e tails for this district are given in the following table: Production of shoes* Philadelphia Federal Reserve District (in thousands of pairs) March 1,704 High and low cut (leather) total 1,648 140 170 270 614 454 All other leather or part leather 56 Per cent change from Feb. + 11.3 + 11.5 + 11.2 + 8.1 + .8 + 17.8 + 11.8 + 7.0 ♦Preliminary report compiled by the Bureau of the Census. PAPER Most manufacturers report that the de mand for paper is fair, but not as active as it was last month or in April, 1924. Newsprint is in good request, but the call for book and fine papers has lessened. Coarse and wrapping papers are selling in slightly larger volume than they were a month ago. Tissues and crepe papers, cardboards and building boards continue to move rather slowly and, outside of Philadelphia, the call for boxboards is lighter than it was last month. Building papers are selling in slightly greater volume. Manufacturers of envelopes state that their products are in fair de mand, but are not selling as well as a year ago— most factories are running at only 60 per cent. The rate o f opera tions at paper mills in this district is being sustained at from 75 to 80 per cent of capacity. A few mills have big future delivery contracts in hand, but most paper manufacturers have only from ten to 30 days’ business booked. The prices o f most grades o f paper are holding firm, but quotations on some grades o f boxboards and building boards display softness. Mechanical pulp prices are holding firm, but chemical pulps, on account o f heavy shipments from Sweden, are lower than they were a month ago. Mill stocks o f both finished goods and raw materials are moderate. PAPER BO XES The call for paper boxes is fair,— some what greater than it was a year ago, but not as heavy as it was a month ago. The hosiery, hardware, electrical supply, foodstuff and underwear trades are buy ing news and chipboard boxes in good amounts; but the candy, shirt, shoe, sweater and clothing industries are buying sparingly. Fiber containers, although not in as active demand as they were last month, are in greater call than they were last April. Corrugated boxes and con tainers continue in only fair request, and demand is much the same as it was a year ago. Box factories in this district are operating at about 78 per cent o f capacity. The amount o f forward buying shows little change and most manufacturers have from two weeks’ to 60 days’ busi ness in hand. Box prices are unchanged, although much price-cutting is still reported by manufacturers. The prices o f board are also unchanged. Finished stocks and supplies of raw materials at box fac tories are, in most cases, moderate. that o f the 1923 crop, but some packers believe that the quality is slightly better than was indicated early in the winter. It is expected that the new tobacco after it is sweated will be very desirable for filler purposes. Both the 1924 Ohio and Wisconsin tobaccos are much poorer in quality than the 1923 crops, and packers are not anxious to buy it. Importers and large manufacturers have made large purchases at the Sumatra inscriptions held at Amsterdam, and the quality o f the tobacco which they have purchased is stated to be very desirable for the Amer ican manufacturer. Prices are much the same as they were last year. Cigars. The call for cigars is fair and is almost equal to that o f March, but is not as good as it was a year ago. Lead ing manufacturers report that business is either fair or good, and that they are operating their factories at an average rate o f about 80 per cent. Many o f the small producers, however, state that the demand is light and few are operating their factories at more than half of capacity. Most manufacturers have about two weeks’ business on hand, but several are working only on day-to-day orders. Cigar prices are firm and are the same as they were a month ago. The prices o f tobacco leaf are also unchanged. Stocks of both finished goods and raw materials at the factories are moderate and much the same as they were at the close o f March. FLOUR TOBACCO Tobacco leaf. With the exception of large purchases by two big cigar manu facturers in the Lancaster market, the demand for old Pennsylvania tobacco has been light. Dealers report that these two factors purchased about 10,000 cases of Pennsylvania tobacco during the first ten days o f April, but sales to other manu facturers have been small. The demand from small factories has been very poor. Quotations on 1923 packed wrappers range from 23 to 28 cents a pound, actual weight, but most o f the large sales have been made at 25 and 26 cents, actual weight. Prices o f 1923 Pennsyl vania fillers vary from 6 to 14 cents, ac cording to quality. A few 1922 wrappers are still being offered on the market at prices ranging from 20 to 26 cents a pound. About 75 per cent o f the 1924 Pennsylvania crop has thus far been sold by the growers. The prices paid for the better grades o f wrappers, which were sold early, ranged from 15 to 20 cents a pound, but for those which remain in the growers’ hands prices of from 8 to 16 cents are being paid by the packers. From 2 to 3 cents a pound is being o f fered for the 1924 fillers. The quality o f the 1924 Pennsylvania crop is as a whole much poorer than Rapidly changing prices have caused domestic consumers o f flour to buy very cautiously and as lightly as possible. Millers report that the demand is con siderably less than in February and March and lighter than it was in April, 1924. The export trade is quiet and buy ing is much smaller in volume than it was during the winter months. By-product feeds, chiefly bran and middlings, are in only fair request, although sales compare favorably with those of last month and o f a year ago. Early in the month wheat and flour prices declined sharply. On April 6 number 2 red winter wheat was selling at $1.73 a bushel in New York and straight winter flour at from $7.25 to $7.75 a barrel, as compared with $2.22^ a bushel and $9.40 to $9.90 a barrel on January 22, 1925. However, since the publication o f the unfavorable condition report o f winter wheat by the Department o f Agriculture prices have again ad vanced. Number 2 red winter wheat is now selling at $1.93^4 a bushel in New York and straight winter flour at from $8.00 to $8.50 a barrel, in car lots. Wheat bran and middlings are about 15 per cent higher than they were in April, 1924. Flour mills in this district are operating at about 60 per cent o f capacity and their output is being used by domestic con sumers. Finished stocks at the mills are moderate and slightly larger than in April, 1924. Stocks o f flour at public warehouses on April 1 were about 5 per cent larger than on March 1, and were 13 per cent greater than on April 1, 1924. Public ware house stocks at Philadelphia * Flour, barrels Wheat, bushels Rye, bushels April 1, 1925... March 1, 1925. April 1, 1924... 162,675 156,308 144,200 2,265,750 2,335,105 1,394,906 161,577 178,690 169,217 * Compiled by the Commercial Exchange of Philadelphia. Exports o f flour from the port of Philadelphia during the first quarter of 1925 were 28 per cent larger than those for the same period o f 1924 and exports of wheat were nearly 50 per cent greater than during the first three months of 1924. Exports from First First Philadelphia * quarter quai ter March, March, 1924 (000’s omitted) of 1925 of 1924 1925 Flour (bbls.) .. 134 Wheat (bus.). . . 12,836 Oats (bus.). . . Rye (bus.). . . Barley (bus.).'.. 205 464 116 104 8,605 1,303 50 19 44 38 3,736 96 181 26 2,562 515 40 * Compiled by the Commercial Exchange of Philadelphia. The British Isles have been the prin cipal buyers o f flour through Philadel phia, but Germany also purchased a few small lots. Foreign buyers have become exceedingly cautious and are confining their purchases to as small amounts as possible. Receipts o f flour, wheat, oats, rye and barley at Philadelphia during the first three months of 1925 were larger than in the same period of 1924, but receipts o f corn were much smaller. Receipts at First First Philadelphia * quarter quarter March, March, 1924 (000’s omitted) of 1925 of 1924 1925 Flour Wheat Corn Oats Rye Barley (bbls.) . . 727 (bus.).. . 12,970 324 (bus.).. . (bus.).. . 770 (bus.).. . 490 (bus.). . . 120 637 7,952 1,928 363 128 77 215 3,923 75 336 213 2 197 2,428 879 143 94 31 * Compiled by the Commercial Exchange of Philadelphia. A G R IC U L T U R E The new crop year has opened favor ably in the district. An early spring ac companied by many clear days has put agricultural operations from two to three weeks ahead of their condition at this time last year. Spring plowing in the Page Eleven southern half o f the district is from 80 to 85 per cent completed, and in the northern half, about 65 to 70 per cent is done. Most of the land which is plowed will be ready for seeding at the close of the month. The outlook for the pear and apple crops is very favorable, but in some o f the low-lying counties in the interior, and also in the valleys of many moun tainous counties, considerable damage has been inflicted by frost upon cherry and peach buds. Many peach buds were also winter killed in the higher elevation coun ties. Despite such injuries a fair peach crop is indicated. Protected by an adequate cover o f snow, the wheat and rye crops have come through the winter in good condition in this district. The stands in most counties are very good, being much better than they were last April and about equal to the average stand of the past ten years. The April 1 condition of winter wheat throughout the United States, however, was much poorer than it was a year ago and considerably below the average. Cover crops have wintered well and many county agents report the stand to be 100 per cent o f normal. Clover, vetch, rape and alfalfa are in excellent condition. Estimates received from agricultural agencies of the acreages that will be planted to cash crops this year in the Third Federal Reserve District indicate a decrease in the plantings of white potatoes and tobacco o f from 5 to 10 per cent; but an increase in acreage of corn, spring wheat, tomatoes and sweet potatoes ranging from 10 to 20 per cent. Despite higher prices for fertilizers than prevailed last spring, our corre spondents state that farmers are buying at least as many tons as they bought last year, and in several counties they are taking greater tonnages. The mixed fertilizers, commonly known as complete fertilizers, in some districts are not being bought as heavily as last spring; but straight fertilizers, particularly acid phosphate, are being purchased in greater quantity. The condition of dairy herds and other BUSINESS INDICATORS Philadelphia Federal Reserve District Retail trade— net salesf (155 stores).................................. Department stores (68)................................................... Apparel stores (43).......................................................... Shoe stores (23)................................................................ Credit stores (21)............................................................. $20,086,000 $15,873,000 $2,908,000 $474,000 $831,000 + + + + - Wholesale trade—net sales (156 firms)...................... Boots and shoes (12 firms).............................................. Drugs (13 firms)............................................................... Drygoods (18 firms)........................................................ Electrical supplies (7 firms)............................................ Groceries (53 firms)......................................................... Hardware (30 firms)........................................................ Jewelry (11 firms)............................................................ Paper (12 firms)............................................................... $10,823,759 $479,929 $1,555,988 $1,135,860 $588,489 $3,671,601 $2,118,570 $302,226 $971,096 + 12.6 “ + 6 7 .4 “ + 9 .0 “ + 15.5 “ 1.1 “ Production: Shoes* (111 factories)...................................................... Pig iron............................................................................. Hosiery* (122 mills))....................................................... Iron castings (38 foundries)............................................ Steel castings (5 foundries)............................................. Cement.............................................................................. Anthracite........................................................................ Bituminous coal (Central district—percentage of fuiltime output)................................................................. Wool consumption* (84 mills)........................................ Active cotton spindle hours (Pennsylvania and New Jer.) Distribution: Freight car loadings (Allegheny district— weekly aver.) Tonnage of vessels (Port of Philadelphia)..................... Exports of wheat (from Port of Philadelphia).............. Exports of flour (from Port of Philadelphia)................ Imports of crude oil (into Port of Philadelphia).......... Financial: Loans, discounts and investments of member banks (weekly average).......................................................... Bills discounted held by Federal Reserve Bank of Philadelphia (daily average)....................................... Acceptances executed (12 banks for month ended 10th of following month)..................................................... Bankers’ acceptances sales (5 dealers— weekly average for period ended middle following month)................. Commercial paper sales (6 dealers)................................ Savings deposits (99 banks)............................................ General: Debits (18 cities).............................................................. Commercial failures......................................................... Commercial failures—liabilities...................................... Building permits (15 cities)............................................. Building contracts awarded (Philadelphia district). . . . Employment— 1,006 plants in Pennsylvania, New Jersey and Delaware: Number of wage earners............................................. Average weekly earnings............................................. Sales of life insurance (Pennsylvania, New Jersey and Delaware)...................................................................... Year ago 21.6% 20.6 “ 38.6 “ 22.2 “ 7.0 “ + 31.0 “ + 9.0 “ + 12.8 “ + 4.3% + 2.5 “ + 15.3 “ +24.1 “ - 3.9 “ - 1.3 + 17.5 + 7.2 - 3.7 -1 0 .5 - 4.7 + 2.4 - 6.6 - 4.7 “ “ “ “ “ “ “ “ “ prs. 1,704,284 tons 365,383 doz. prs. 1,136,316 tons 6,419 tons 4,377 bbls 3,054,000 tons 7,058,000 + + + + + + - “ “ “ “ “ “ “ - 1.1 “ -1 3 .0 “ per cent lbs. 52.1 8,487,272 130,619,984 - 10.2 “ .8 “ + 18.0 “ + 1 5 .5 “ 190,787 3,191,431 3,716,185 8,595,868 10,130,550 + 2 .1 “ + 1 2 .4 “ - 24.7 “ - 5 8 .2 “ + 7.2 “ - 1.4 “ + 1 7 .0 “ + 5 7 .0 “ + 19.5 “ -5 6 .3 “ + + 1 5 .6 “ tons bus. lbs. gals. $1,067,000,000 $37,122,000 11.3 13.6 12.9 8.6 7.5 22.8 1.6 2 .1 “ - - 5.4 “ 6.8 “ + 2 2 .3 “ —11.4 “ $4,279,000 - 1 3 .4 “ +19.1 “ $1,461,000 $7,610,000 $565,995,000 - 12.1 “ 21.6 “ 0.0 “ + 18 1.5“ -3 2 .1 “ - 7.5 “ $2,321,873,000 58 $1,639,315 $31,110,064 $64,898,300 + + + 379,473 $26.59 + + 0.2 “ 0.3 “ $86,401,000 + 3.5 “ 18.1 19.4 24.2 119,2 93.5 “ “ “ “ “ + 1 1 .8 -3 0 .1 - 4.9 -3 2 .6 + 7 8 .3 - “ “ “ “ “ 5.5 “ * Bureau of Census preliminary figures, t Estimated. Rye Winter wheat 1925 United States............................... New Jersey................................... Pennsylvania................................ Delaware....................................... March, 1925 Previous month Per cent of normal Crop conditions on April 1 (U. S. Dept. Agr.) Estimate Latest figure compared with The following data refer to the Philadelphia Federal Reserve District except where otherwise noted 1924 10-year average 1925 1924 10-year average 68.7 88 85 90 83.0 85 83 85 81.2 86 87 86 84.0 90 87 90 83.5 89 86 88 87.1 89 89 87 cattle is fair and about normal for this season. The number of hogs on the farms in this district is about 15 per cent smaller than early in the fall o f 1924, because o f the heavy slaughters brought about by the scarcity o f corn. Steers for fattening are fewer in num ber than they were in the spring o f 1924. The farm labor supply, for the first time since 1921, is adequate for present needs in all parts of the district. COMPILED AS OF APRIL 23, 1925 * _ .. . — —- __________ __ _ _ = ■ = = = = = ... ■S,t This business review will be sent regularly without charge to any address upon request * = Page Twelve A
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