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THE BUSINESS REVIEW
THIRD FEDERAL
PHILADELPHIA
RESERVE DISTRICT
MAY i, 192.6
By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent
FEDERAL RESERVE BANK t f PHILADELPHIA
B U SIN E SS C O N D IT IO N S IN T H E U N IT E D S T A T E S
Industrial output increased in March
and the distribution of commodities con
tinued in large volume owing to seasonal
influences. The level of wholesale prices
declined for the fourth consecutive month.
cent last year and an average of 79.2
per cent for the same date in the past ten
years.
Production.
The Federal Reserve
Board’s index of production in basic in
dustries increased in March to the highest
level for more than a year. Larger out
put was shown for steel ingots, pig iron,
anthracite, copper, lumber, and news
print, and there were also increases in
the activity of textile mills. The output
of automobiles increased further and was
larger than in any previous month, with
the exception of last October. Building
contracts awarded also increased in
March, as is usual at this season, and
the total was near the high figure of last
summer. Particularly large increases in
building activity as compared with a
year ago occurred in the New York,
Atlanta, and Dallas Federal reserve dis
tricts.
Contracts awarded continued
larger during the first half of April than
in the same period of last year. Condi
tion of the winter wheat crop has im
proved since the turn of the year and
on April 1 was estimated by the D e
partment of Agriculture to be 84 per
cent of normal, compared with 68.7 per
Trade. Wholesale trade showed a sea
sonal increase in March and the volume
of sales was larger than a year ago in
all leading lines except drygoods and
hardware.
Sales of department stores
and mail-order houses increased less than
is usual in March. Compared with March
a year ago sales of department stores
were 7 per cent and sales of mail-order
houses 9 per cent larger. Stocks of prin
cipal lines of merchandise carried by
wholesale dealers, except groceries and
shoes, were larger at the end of March
than a month earlier but for most lines
they were smaller than a year ago. Stocks
at department stores showed slightly
more than the usual increase in March
and were about 3 per cent larger than
last year. Freight car loadings during
March continued at higher levels than
in the corresponding period of previous
years. Shipments of miscellaneous com
modities and merchandise in less-thancarload lots were especially large. Load
ings of coal, owing to the large produc
tion of anthracite, were also large, while
shipments of coke decreased considerably
from the high levels o f preceding
months.
Index of value of building contracts awarded,
as reported by the F. W . Dodge Corpora
tion (1919 = 100). Latest figure—
March, 231.
Federal Reserve Board’s indexes of factory
em ploym ent and payrolls (1919 = 100).
Latest figures— M arch; employm ent,
97.2; payrolls, 113.0.
Prices. Wholesale prices, according to
the bureau of Labor Statistics index,
declined by more than 2 per cent in
March to the lowest level since Septem
ber, 1924. The decline was general for
nearly all groups of commodities and the
largest decreases were noted in grains,
cotton, wool, silk, coke and rubber. In
the first two weeks of April prices of
basic commodities were steadier than in
March.
Prices of grains, flour, and
potatoes increased, while prices of cotton
goods, wool, silk, bituminous coal, pig
iron and rubber declined.
Bank credit.
Commercial loans of
member banks in leading cities were
relatively constant between the middle
o f March and the middle of April at a
level about $200,000,000 higher than at
the end of January and approximately
equal to the high point reached last
autumn. Continued liquidation of loans
to brokers and dealers was reflected in
a further decline in the total of loans on
securities, which on April 14 were more
than $500,000,000 below the high point
reached at the end of last year.
At the reserve banks an increase in
the volume o f member bank borrowing
during the last two weeks of March was
followed by a marked decline in the
first three weeks of April, which brought
Index of United States Bureau of Labor Sta
tistics (1913 = 100, base adopted by B u eau). Latest figure— March, 152.
Page One
Latest figure
compared with
BUSINESS IN DICATORS
Philadelphia Federal Reserve District
M onthly averages of daily figures for 12 Fed
eral reserve banks. Latest figures are
averages of first 22 days in April.
the total near the lowest levels of the
year. Holdings of U. S. securities in
creased continuously during the month,
while acceptances declined seasonally.
Total bills and securities were in smaller
volume at the end o f the period than
at any other time during the year and
only slightly larger than a year ago.
Open market rates on commercial
paper declined in April from 41A-4I/2
per cent to 4-4% per cent and rates on
acceptances and on security loans were
also lower in April than in March. On
April 23 the discount rate at the Federal
Reserve Bank of New York was reduced
from 4 to 3% per cent.
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 SE R V E D IST R IC T
Most lines of trade in the Philadelphia
Federal Reserve District experienced
large seasonal increases usual in March,
and productive activity in that month
continued to be well maintained. A l
though factory employment in the states
of the district declined slightly in
March,— and our preliminary reports in
dicate a somewhat larger decline in
April,— wage payments, which furnish a
good measure of industrial operations,
were larger in March than at any time
in more than two years. Despite the
high rate o f business activity prevailing
currently, there have been some recent
reports o f curtailed buying, while wide
spread declines in commodity prices have
continued and, in March, the general
average reached the lowest point since
October, 1924.
The current rate of business activity,
however, in addition to showing recent
improvement of a seasonal nature, con
tinues to be well above last spring’s level.
The volume o f check payments in leading
cities of the district gained 22 per cent
in March and was 10 per cent above the
total for the same month o f 1925, despite
the fact that wholesale prices have been
substantially lower this year.
Retail
trade, of course, has been seasonally
larger, and the sales of all reporting
stores were 9 per cent above those o f last
year. Apparel and shoe stores showed
Page Two
March, 1926
Previous
month
Year
ago
+ 3 2 .5 %
+ 3 2 .1 “
+ 2 5 .3 “
+ 106.3 “
- 1 .0 “
+ 9 .3 %
+ 7 .6 “
+ 1 2 .2 “
+ 4 2 .0 “
+ 1 6 .6 “
Retail trade— Estimated net sales (146 stores) ................ .
Department stores (6 5 )..........................................................
Apparel stores (3 6 )...................................... ..
Shoe stores (2 6 ).........................................................
Credit stores (1 9 ).......................................
824,583,000
$19,680,000
$3,252,000
$764,000
$887,000
Wholesale trade— Net sales (152 firm s)................................
Boots and shoes (11 firm s)......................................... j ’
Drugs (14 firm s)..................................................... ' ' '
D ry goods (17 firm s)..................................................
Electrical supplies (7 firm s)............................. •............. '
Groceries (50 firm s)............................................
Hardware (29 firm s).......................................... ’ ’ ” ’ ‘ ’ [ ’
Jewelry (11 firm s).....................................................
Paper (13 firm s).................................................................’ ’ ’
$11,286,728
$479,698
$1,914,481
$1,116,867
$672,394
$3,523,861
$2,026,349
$380,675
$1,172,403
+ 2 4 .0
+ 9 4 .8
+ 2 2 .0
+ 3 5 .5
+ 1 7 .7
+ 12.5
+ 3 6 .1
+ 2 0 .4
+ 2 3 .1
“
“
“
“
“
“
“
“
“
Production:
Shoes* (92 factories)............................................................... prs.
1,446,943
Pig iron...........................................................
tons
381,959
Hosiery* (115 m ills)...............................................
doz. prs. 1,181,106
Iron castings (39 foundries).................................................. tons
6,666
Steel castings (11 foundries)................................................. tons
9,199
Cem ent........................................................................
bbls.
.3 ,0 3 3 ,0 0 0
Anthracite............................................................
tons
8,7 9 0,00 0
Bituminous coal— P enna...........................................
tons
11,984,000
W ool consumption* (83 m ills)...................................
lbs.
7,6 0 2,20 3
Active cotton spindle hours (Penna. and N. j.)...
110,561,290
Electric power (14 system s)..........................................
K W II
388,556
+ 1 5 .3
+ 2 6 .9
+ 1 5 .2
+ 1 9 .0
+ 2 8 .4
+ 2 3 .9
+ 3 2 2 .0
-1 0 .6
+ 17.2
+ 2 7 .6
+ 11.6
“
“
“
“
“
“
“
“
“
“
“
Distribution:
Freight car loadings (Allegheny district— weekly average)
Tonnage of vessels (Port of Philadelphia).........................
Exports of wheat (from Port of Philadelphia).............
Exports of flour (from Port of Philadelphia).............
Imports of crude oil (into Port of Philadelphia).............
+ 6 .0
+266.
+ 5 5 .3
+ 138.1
+ 8 6 .0
“
“
“
“
“
Financial:
Loans, discounts and investments of member banks
(weekly average).............................................................
Bills discounted held by F. R. B. of Phila. (daily average)
Acceptances executed (9 banks for month ended April
10) ...........................................................................
Bankers’ cceptances sales (4 dealers— weekly average
for period ended middle following m on th )...............
Commercial paper sales (6 dealers)..........................
Savings deposits (98 ban ks)....................................... .. . . . .
General:
Debits (18 cities)......................................................................
Commercial failures— number............................................
Commercial failures— liabilities............................................
Building permits (16 cities).................................... . . . . . . .
Building contracts awarded (Philadelphia district)........
Employment— 1,269 plants in Penna., N. J. and Del.:
Number of wage earners.............................................
Total wages....................................................................
Average weekly earnings.............................................
Sales of life insurance (Penna., N. J and Dei.,
tons
bus.
lbs.
gals.
197,787
3,361,521
1,702,766
7,8 8 0,68 9
20,648,964
$1,1 34 ,1 0 0 ,0 00
$59,901,000
+ 1 .0 “
+ 6 .5 “
+ 2 .5
+ 3 .4
+ 1 5 .3
- 0 .9
+ 1 4 .3
- 1 .6
- 2 .8
+ 2 6 .0
- 2 .8
“
“
“
“
“
“
“
“
“
+ 4 .5 “
+ 14.4 “
- 0 .7 “
+ 2 4 .9 “
-1 5 .4 “
+ 2 2 .0 “
+ 3 .5
+ 5 .3
-5 4 .2
- 8 .3
+ 1 0 3 .8
“
“
“
“
“
+ 6 .3 “
+ 6 1 .4 “
$ 3,960,000
+ 2 1 .0 “
-
$ 2,262,000
$ 5,1 32 ,5 0 0
$591,791,000
+ 4 2 .9 “
-1 5 .1 “
- 0.1 “
+ 5 4 .8 “
-3 1 .4 “
+ 4 .9 “
+ 2 2 .3
-3 0 .1
-1 5 .6
+ 5 7 .1
+ 7 9 .0
“
“
“
“
“
+ 1 0 .5
+ 12.1
+ 8 .4
-3 3 .6
- 6 .5
“
“
“
“
“
- 0 .7 “
+ 0 .5 “
+ 1.1 “
+ 19.6 “
+ 2 .2
+ 5 .3
+ 2 .8
4-11.5
“
“
“
“
$ 2,568,030,000
65
$1,776,957
$21,022,232
$45,718,566
440,066
$11,801,909
$26.82
$96,334,000
7 .5 «
* Bureau of Census preliminary figures.
gains of 12 and 42 per cent, respectively.
Wholesale trade in all lines was also
seasonally larger than in February and
in most cases, as well, compared fav
orably with last year. Transportation of
goods, as measured by freight car load
ings in the Allegheny District, was 3.5
per cent larger in March, 1926, than in
March, 1925.
Productive activity in the iron and steel
industry has reached high levels both in
this district and in the country as a whole,
but recent reports indicate some slack
ening in demand and widespread price
declines. It is significant that, while pro
duction o f steel ingots reached record
levels in March, the unfilled orders o f
the Steel Corporation were reduced
sharply during that month. The coal
markets are quiet and in the case of
bituminous, buying has been curtailed
and prices have fallen, of late.
Although construction this spring in
the country as a whole is in larger vol
ume than in 1925, some slackening has
occurred in the Philadelphia district.
March contract awards were 7 per cent
less than last year while the value of
permits issued in sixteen cities o f the
district for the first quarter o f 1926 was
only 45 million dollars as compared with
55 million in 1925. Most building ma
terials are in less active demand than
they were last year.
Conditions in the majority of the tex
tile industries are reported as being far
from satisfactory. Employment in the
textile mills o f the district fell off more
than 4 per cent from February to March
and our preliminary reports indicate a
further large decline in April. Business
in raw cotton, wool and silk and in the
finished goods has been curtailed consid
erably of late, and prices are reported to
be notably weak. Prices of carpets and
rugs have also declined recently. Rayon
continues in good demand at steady
prices, however.
Conditions in the
hosiery and underwear trade are some
what m ixed; clothing manufacturers re-
port fairly active trade at steady prices.
Business in hides and in leather and
shoes is also somewhat unsatisfactory.
Demand for shoes is only fair and
manufacturers are not well supplied
with orders.
The late spring has retarded agricul
tural activity in the district, and spring
plowing has been only about half com
pleted. The outlook otherwise is fairly
satisfactory, although the condition of
pasturage and o f winter wheat is poorer
than last year. About the same acreage
will be planted to crops as in 1925 and
larger amounts o f fertilizer have been
purchased by farmers.
March, 1926 compared with March, 1925
CONDITIONS
Philadelphia Federal
Reserve District
E m ploy
ment
Wage
payments
Allentown
+ 5 .6 %
+ 1 2.3 %
+ 7 .1 “
-2 8 .1 “
- 4 .6 “
+ 0 .9 “
+ 1.8 “
-1 1 .1 “
- 0 .2 “
+ 2 2 .0 “
+ 10.7 “
+ 15.8 “
- 2 .5 “
+ 17.2 “
-2 2 .7 “
- 5 .3 “
+ 11.4 “
- 0 .9 “
-2 5 .2 “
- 3 .2 “
+ 11.3 “
+ 2 3 .4 “
+ 11.6 “
- 5 .8 “
Harrisburg
Johnstown
Lancaster
Philadelphia
Reading
Scranton
Trenton
Wilkes-Barre
Williamsport
Wilmington
York
“
“
“
“
“
“
Allentown
area. . .
Altoona
“ ...
Harrisburg
“ ...
Johnstown
“ ..
Lancaster
“ ...
Philadelphia “ . . .
Reading
“ ...
Scranton
“ ...
Trenton
“ ...
Wilkes-Barre “ . . .
Williamsport “ . . .
Wilmington “ . . .
York
“ ...
R E T A IL T R A D E
Following the completion of Easter
business, retail trade continues moderately
active.
Except for slight declines in
prices of such items as cotton goods,
quotations remain unchanged from the
level o f four weeks ago.
Sales in March by all reporting de
partment, apparel and shoes stores and
credit houses throughout this district ex
ceeded those of March, 1925, by 9.3 per
cent, owing mainly to pre-Easter activi
ties. The only decreases in sales oc
curred in Harrisburg, Johnstown, Read
-2 5 .7
-3 1 .6
-6 2 .1
-5 1 .1
-4 6 .0
-1 4 .6
- 8 .9
-3 7 .0
—55.9
+
+
+
+
+
1 .4 %
1.4 “
0 .4 “
3 .4 “
1.7 “
0 .2 “
0 .6 “
0 .8 “
0 .4 “
2 .4 “
1.0 “
0 .5 “
0 .6 “
+
+
+
+
+
+
+
+
+
3 0 .8 “
+ 7 1 .2 “
6 7 .9 “
+ 183.0 “
+ 378.5 “
+ 376.4 “
+ 4 0 1 1 .2 “
+ 7 6 .7 “
+
23.2“
+ 1 2.2 %
+ 1 3 .9 “
+ 3 .3 “
+
0 “
+ 10.0 “
+ 6 .4 “
+ 10.3 “
- 0 .6 “
+ 6 .0 “
- 4 .1 “
+ 3 .2 “
+ 6 .0 “
+ 3 .6 “
3 .8 %
9 .7 “
4 .8 *
4 .2 “
6 .8 ‘
10.5 “
3 .8 “
0 .2 “
4 .5 “
4 .7 “
8 .4 “
14.5 “
16.4 “
+ 2 2 .1 % *
+ 15.1 “
+ 1 7 .9 “
+ 2 1 .5 “ t
+ 10.4 “
+ 16.8 “
+ 2 6 .7 “
+ 3 5 .2 “
+ 2 0 .1 “ {
§
................. §
+ 4 0 .9 “
+ 11.6 “
+ 4 1 .8 %
+ 5 6 .1 “
+ 4 1 .9 “
-2 4 .7 “
+ 5 6 .9 “
+ 4 0 .0 “
+ 2 9 .2 “
+ 7 6 .8 “
+ 2 3 .7 “
+ 6 5 .5 “
+ 3 2 .9 “
+ 1 6 .1 “
+ 2 3 .9 “
+ 3 0 .6 % *
+ 0 .6 “
+ 5 .1 “
+ 9 .2 “ f
+ 3 .6 “
+ 2 .8 “
+ 5 .0 '
+ 1 3 .9 “
+ 4 .0 “ {
................. i
................. §
+ 13.3 “
+ 5 .7 “
+
+
+
+
+
+
+
+
+
+
+
..........
+
+
+
+
—
+
+
-
0 .1 %
2 .0 “
0 .3 “
0 .6 “
5 .5 “
0 .4 “
0 .4 “
3 .5 “
0 .5 “
0 .8 “
1.0 “
0 .4 “
2 .2 “
ments declined almost 16 millions in the
latest four weeks. The total of loans
and investments fell off less than one
million.
Material increases, however,
took place in both demand and time de
posits.
A decline of almost 18 millions in
loans to member banks in the four weeks
ended April 21 is reported by the Federal
Reserve Bank of Philadelphia. The total
on March 24 was the largest reported
this year and the decline since that date
was largely the result of a reduction in
borrowings by reporting banks in Phila
delphia. The total of other bills and
securities held by the reserve bank in
creased five millions in the past four
weeks. Changes in the reserve ratio and
in the items from which it is derived, are
given in the table
The loans of reporting member banks
in Philadelphia, Camden, Scranton and
Wilmington increased from 785 millions
on March 17 to 800 millions on April 14.
This resulted from an increase of one
million in loans on securities and a gain
o f 14 millions in commercial loans,
which, on April 14, exceeded the figure
of a year before by 15 millions. Invest
Comparison of stocks
Rate of turnover
Jan. 1 to Mar. 31
1925
1926
All reporting firms.................
+ 9 .3 %
+ 4 .3 %
-
1 .4 %
+ 11-0%
+ 7 .6 “
+ 9 .2 “
+ 3 .9 “
+ 3.1 “
+ 4 .9 “
- 1.4 “
-
2 .3 “
0 .5 “
5 .8 “
+ 1 1 .3 “
+ 1 2 .0 “
+ 9 .8 “
.76
.83
. 63
.79
.84
.65
All apparel stores..................
M en’s apparel stores.............
in Philadelphia...................
outside Philadelphia.........
W om en’s apparel stores. . . .
in Philadelphia...................
outside Philadelphia.........
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+ 5 .0
- 5 .0
- 1.6
-1 0 .3
- 5 .9
- 3 .3
-1 6 .0
“
“
“
“
“
“
“
+ 10.9
+ 9 .5
+ 8 .6
+ 1 0 .6
+ 9 .7
+ 9.1
+ 12.6
.95
.60
. 66
.97
Credit houses..........................
+ 1 6 .6 “
+ 6 .0 “
-
6 .6
Shoe stores..............................
+ 4 2 .0 “
+ 1 1 .6 “
“
“
“
“
“
“
“
+ 19.3 %
+ 2 5 .7 “
+ 1 8 .1 “
+ 1 4 .3 “
+ 4 2 .0 “
+ 2 1 .6 “
+ 19.1 “
+ 4 7 .5 “
- 0 .6 “
+ 3 7 .4 “
+ 3 0 .9 “
+ 4 9 .8 “
+ 2 2 .3 *
ing, Scranton and Wilkes-Barre. While
stocks on March 31 were 11 per cent
above those on February 28, they were
1.4 per cent smaller than on the corre
sponding date last year.
Stock turn
over was 2.6 per cent greater in the first
quarter of 1926 than in the same period
last year.
All department stores...........
in Philadelphia...................
outside Philadelphia.........
+ 1 2.0 %
+ 15.9 “
- 3 .4 “
+ 5 .8 “
- 0 .6 “
+ 9 .8 “
+ 4 1 .5 “
+ 3 .2 “
+ 2 1 .5 “
- 1 .4 “
+ 17.0 “
+ 4 5 .3 “
+ 6 .5 “
Retail
Electric
trade sales power sales
{P roduction (not sales).
Jan. 1 to
Mar. 31,1926, Mar. 31,1926, Mar. 31,1926,
with
with
with
Mar. 31, 1925 Feb. 28, 1926
Jan. 1 to
Mar. 31, 1925
11.2
3 .5
3 .8
3.1
3.2
3 .5
1.4
Savings
deposits
♦Includes Wilkes-Barre and Williamsport areas.
§Included in Allentown area.
.77
12.2 “
6 .5 “
8 .0 “
4 .5 “
5 .8 “
6 .5 “
2.2 “
“
“
“
“
“
“
“
“
“
+ 2 54 .3%
+ 5 2 .4 “
+ 2 8.2 “
1 -0%
6 .6 “
1 .9 “
3 .1 “
1.2 “
0 .7 “
2 .2 “
0 .6 “
2 .4 “
2 .7 “
1.7 “
1 .9 “
1.4 “
F IN A N C IA L C O N D IT IO N S
Comparison of net sales
Mar., 1926,
with
Mar., 1925
“
+ 6 0 .2 %
-3 4 .0 “
+ 6 .2 “
Debits
March, 1926 compared with February, 1926
City conditions. In most of the cities
of the district conditions have improved
seasonally as compared with February
and in most cases, also, activity in March
was ahead o f that of a year ago. More
active business in Philadelphia is indi
cated by large increases over 1925 in
factory wage payments, debits and retail
sales, although building in March was
smaller than it was a year previous. The
Allentown, Williamsport and Wilmington
areas also report increases in all three
of these items. In Reading, as well, al
though there was a slight decline in wage
payments, trade was considerably more
active. Most of the other cities of the
district experienced decreases in either
factory operations, debits or retail trade.
RETAIL TRADE
Philadelphia
Federal Reserve
District
area. . .
Value of
building
permits
“
“
“
“
“
.79
(Dollar fig
ures in
millions)
1925
April 2 2 ..
Fed. res.
Total
note cir deposits
culation
Cash
reserve
Reserve
ratio
7 6 .1 %
$148
$130
$212
.
.
.
.
.
145
146
143
146
150
136
133
139
132
136
207
207
213
201
215
7 3.7
7 4.3
7 4.7
7 2.3
7 5.2
7. .
14. .
21. .
143
144
139
140
140
138
217
219
209
7 6.7 “
7 7.5 “
7 5.6 “
1926
March 3.
10.
17.
24.
31.
April
{Includes Camden area.
“
“
*
“
“
.65
.70
.52
.5 9
“
1.34
1.41
.98
1.37
1.41
1.13
“
+ 7 .0 “
.5 6
.
+ 10.0 “
+ 9 .1 “
.63
.64
65
An improvement in the demand for
commercial paper is noted in Philadelphia,
but the supply of paper is said to be
unusually small for this time o f the
year.
Rates continued at
to
per cent up to the 20th o f April.
Page Three
Sales in this section by six dealers
totaled $5,132,500 in March, as compared
with $6,042,500 in February and $7,477,500 in March, 1925. O f the March, 1926,
total, only $920,000 was sold to banks in
Philadelphia, as against $2,532,500 in
February. Sales outside of this city, how
ever, increased from $3,510,000 in Feb
ruary to $4,212,500 in March. Judging
from such reports as give the amounts
sold at the various rates, it appears that
the bulk o f the sales in March were
made at 4% per cent.
W H O LE SA LE TRADE
Trading at wholesale in this district
continues moderate, and prices generally
remain unchanged from those of four
weeks ago.
Stimulated by the preEaster demand, sales in March increased
greatly over February’s volume, gains
ranging from 12.5 per cent in groceries
to 94.8 per cent in boots and shoes. Com
pared with those in March, 1925, sales of
jewelry, electrical supplies, drugs and
shoes were greater, but those o f paper,
hardware, groceries and drygoods were
smaller.
Drygoods. Business in drygoods con
tinues active, the demand for underwear,
hosiery, cotton piece goods and novelties
being greater than that o f four weeks
ago. Most of the present orders call for
delivery within the next thirty days, al
though many o f them are for shipment
in sixty days or beyond that period. E x
cept for slight recessions in wool and
cotton piece goods, prices remain un
changed.
Jewelry. Business in various grades
o f jewelry has been more active since
March 20 than that in the same period
last month. Prices remain unchanged.
Stimulated by Easter demand, sales in
March exceeded February’s volume by
20.4 per cent and were 26 per cent
greater than those in March, 1925.
Groceries. Since March 20 business
in groceries has improved considerably
but, compared with the same period of
last year, the demand appears to be
slightly less active. Items showing price
declines outnumbered those for which
quotations have been advanced recently.
March sales were about 13 per cent
above those in February, but were nearly
2 per cent below the volume for March,
1925.
Net sales,
Mar., 1926, com
WHOLESALE
pared with
TRADE
Philadelphia Federal
Reserve District
Mar.,
Feb.,
1925
1926
Boots and shoes. . . .
D rugs..........................
Dry good s.................
Elect, supplies..........
Groceries....................
Hardware...................
Jewelry.......................
P aper..........................
+ 3 .4 %
+ 1 5 .3 “
- 0 .9 “
+ 14.3 “
- 1.6 “
- 2 .8 “
+ 2 6 .0 “
- 2 .8 “
+ 9 4 .8 %
+ 2 2 .0 “
+ 3 5 .5 “
+ 1 7 .7 “
+ 1 2 .5 “
+ 3 6 .1 “
+ 2 0 .4 “
+ 2 3 .1 “
Stocks,
Mar., 1926, com
pared with
Mar.,
1925
-2 4 .9 %
+ 8 .0 “
+ 2 .4 “
-1 1 .4 “
+ 2 .2 “
- 8 .4 “
- 6 .6 “
+ 0 .2 “
year ago. Unfilled orders are sufficient
to insure mill operations at the present
rate o f about 80 per cent of capacity for
over forty days. Stocks continue mod
erately light, and collections are prompt.
Electrical supplies. Since March 20
trading in electrical supplies has been
only moderate, general supplies such as
fixtures and wiring merchandise being in
seasonal demand.
Prices are fairly
steady, except for slight recessions in
such items as storage batteries, sockets,
lead cables, iron boxes and wiring ma
terials. Manufacturers o f electrical sup
plies continue active.
Hardware. The demand for factory
supplies, building materials and such sea
sonable goods as paints, garden tools and
seeds has improved considerably since
March 20.
No material changes are
noted in prices. Sales in March were
36.1 per cent greater than those in the
previous month but were nearly 3 per
cent under the volume for March, 1925.
Drugs. Sales o f seasonable drugs are
somewhat more active than they were
four weeks ago, and prices generally re
main unchanged. Trading in March ex
ceeded that of February by 22 per cent
and was 15.3 per cent above the volume
o f March, 1925. Collections are prompt.
Shoes. The demand for summer foot
wear is fairly active, and prices remain
firm at levels unchanged from those of
four weeks ago. The volume of this
year’s trade in March was the greatest
since 1923, the index numbers of sales
for that month being 150 in 1923, 102 in
1924, 121 in 1925 and 127 in 1926. In
considering these figures, it should be
noted that in 1923 and 1926 Easter took
place very early in April, whereas in
1924 and 1925 it occurred later.
Accounts out
standing
Mar., 1926, com
pared with
Feb.,
1926
+
+
+
+
4 .7 %
1 .0 “
0 .8 “
1 .8 “
1 .2 “
2 .6 “
1 .3 “
0 .6 “
Mar.,
1925
+
+
+
+
+
+
-
7 .2 %
9 .0 “
1 .9 “
1 .9 “
3 .2 “
3 .8 “
8 .3 “
0 .7 “
R atio of accounts
outstanding to sales
Feb.,
1926
Mar.,
1925
Feb.,
1926
Mar.,
1926
+ 2 1 .2 %
+ 3 .8 “
+ 4 .6 “
- 5 .0 “
+ 1 .0 “
+ 6 .6 “
+ 2 .4 “
+ 9 .8 “
2 13 .1%
142.4 “
222.2 “
132.7 “
107.4 “
177.6 “
433.6 “
134.5 “
3 5 9 .9 %
160.9 “
296.2 “
146.5 “
127.6 “
226.5 “
438.5 “
154.2 “
2 2 0 .2 %
136.6 “
228.6 “
118.3 “
113.3 “
162.3 “
372.8 “
137.5 “
three classes experienced large gains. In
consequence o f the large turnover, stocks
of new cars at the end of March were
smaller than they were a month earlier.
Sales of used cars gained 91 per cent in
value and 97 per cent in number over
February but stocks remained about sta
tionary, indicating that a large number
o f new car sales were made by tradingin old cars.
M arch, 1926,
change from
Feb., 1926
AUTOMOBILE TRADE
Philadelphia Federal Reserve
District
14 distributors
Number
Value
Sales, new cars, wholesale. . .
Cars under $1,000..............
Cars $1,000 to $2,000........
Cars over $2,000.................
+
+
+
+
Sales, new cars at retail........
Cars under $1,000..............
Cars $1,000 to $2,000........
Cars over $2,000.................
+ 1 1 8 .1
+ 1 2 4 .2
+ 71.6
+ 9 6.6
“
“
“
“
+ 1 0 3 .4
+ 1 2 4 .0
+ 7 0.5
+ 7 2.9
“
“
“
“
Stocks of new ca rs..................
Cars under $1,000..............
Cars $1,000 to $2,000........
Cars over $2,000.................
+
-
“
“
“
“
+
-
“
“
“
“
6 5 .4 %
7 9.5 “
5 6.6 “
14.1 “
21.7
4 2.2
42.6
10.1
+
+
+
+
5 9 .7 %
8 2.3 “
5 7.0 “
2 7 .5 “
11.6
3 8.3
4 2.2
12.6
Sales of used ca rs.................... + 96.8 “ + 9 0.6 “
Stocks of used ca rs................. + 0 . 4 “ 0 .0 “
Retail sales, def. paym ent. . . + 1 2 1 .0 “ + 9 4.3 “
E L E C T R IC P O W E R
Output and sales of electricity by re
porting central stations of the Philadel
phia Federal Reserve District increased
seasonally in March as compared with
February and also were substantially
larger than in the previous year. Total
sales o f electricity in March were 8 per
March, 1926,
change from
ELECTRIC POWER
Philadelphia Federal Reserve
District
Feb.,
1926 *
March,
1925 f
/
Paper.
Sales o f paper, which, in
March, were 23.1 per cent above Febru
ary’s volume, continue to show slight im
provement, the demand for fine, book,
bond, wrapping, kraft tissue and crepe
papers being most active. Except for
small reductions in prices of toilet and
kraft papers, quotations remain at the
same steady level as they were four
weeks ago.
Paper manufacturers report a gain in
demand over that of last month and a
Page Four
A U T O M O B IL E S
March proved to be a very active
month in the automobile trade o f Phila
delphia. Retail sales reported by 14 dis
tributors in Philadelphia were more than
twice as large in March as in the previ
ous month and the total o f wholesale
business was 60 per cent greater in value.
The greatest improvement in sales, both
wholesale and retail, was in the cars
selling at less than $1,000, although all
Rated generator capacity.........
-
Generated outp ut.......................
H ydro-electric.........................
Steam ........................................
Purchased................................
+ 1 1 .6
+ 1 2 .6
+ 1 3 .7
- 1.1
Sales of electricity.......................
L ighting....................................
M unicipal............................
Residential and commercial
P ow er........................................
M unicipal.............................
Street cars and railroads ..
Industries.............................
All other sales..........................
+ 8 .0 “
- 2 .3 “
- 3 .0 “
- 2 .2 “
+ 1 3 .5 “
+ 1 .0 “
+ 7 .6 “
+ 1 5 .8 “
+ 2 .4 “
* 14 systems.
1 13 systems.
0 .2 % + 1 0 .7 %
“
“
“
“
+ 2 2 .0
+ 4 .9
+ 1 9 .5
+ 4 7 .5
“
“
“
“
+ 2 4 .2 “
+ 1 1 .9 “
+ 9 .5 “
+ 1 2 .2 “
+ 2 3 .2 “
+ 8 .2 “
+ 1 1 .6 “
+ 2 7 .6 “
+ 7 2 .9 “
cent ahead of the February figure and
24 per cent larger than in March, 1925.
Sales for lighting purposes, however,
naturally declined from February to
March. For power purposes sales were
larger than in February and considerably
ahead o f 1925. In the case of industrial
power an increase over last year’s figures
o f nearly 28 per cent occurred.
EMPLOYMENT AND WAGES
In Pennsylvania, New Jersey
and Delaware
All industries (52)
M etal manufactures:
EM PLOYM ENT AND WAGES
Factory operations in Pennsylvania,
New Jersey and Delaware were more
active in March than in February, as is
evidenced by a small increase in the pay
roll total, although employment was
slightly less. Most of the groups re
ported slight advances in both employ
ment and wages. The textile group is
the only one to show a decided decline.
Practically all the textile industries re
ported decreases in employment and
many also reported declines in wage pay
ments.
Shipyards, canneries, and the building
industry showed the most marked gains,
which are chiefly due to spring expan
sion. Further evidence that spring con
struction is under way was furnished by
the fact that building material producers
reported seasonal expansion in operations
and also a slight advance in employment.
The increase in the novelty and jewelry
industry was due to the reopening o f one
large plant after a shutdown in February.
FLOUR
The market for flour is fair, but it does
not compare favorably with that of the
preceding month and of a year ago.
Sales o f middlings, bran and other by
products also are rather slow, the de
mand being somewhat less active than a
year before. Flour dealers and millers
in this district state that prices of fin
ished products and grains are relatively
weak, whereas quotations for various
grades of flour and grains at New York
are higher than they were a month a g o ;
they are also above those of a year
before, except for corn, barley and rye.
On April 23 spring patent flour sold at
from $8.40 to $8.90 a barrel and hard
winter straights at from $8.40 to $8.90
as compared with the range of from
$8.15 to $8.50 and from $8.00 to $8.50,
respectively, on April 23, 1925. Mill
operations average more than 70 per cent
of capacity. Stocks of flour at public
warehouses in Philadelphia on April 1
were nearly 4 per cent below those of a
month ago and about 34 per cent below
those on April 1, 1925. Supplies of the
principal grains on the same date were
40 and 50 per cent, respectively, smaller.
B U IL D IN G
Construction activity in the Philadel
phia reserve district has improved con
siderably during the past four weeks, al
though it is still somewhat behind the
Automobiles, bodies, and p a rts...
Car construction and repair.........
Elec, machinery and apparatus. . .
Engines, machines, mach. tools. .
Foundries and machine sh o p s.. . .
Heating appl. and apparatus . . . .
Iron and steel blast furnaces........
Iron and steel forgings...................
Steel works and rolling mills........
Structural iron works.....................
Misc. iron and steel products........
Shipbuilding.....................................
Hardware..........................................
Non-ferrous m etals.........................
No. of
plants
report
ing
1,269
Number of
wage earnersweek ended
T otal
weekly wagesweek ended
Average weekly
earnings—
week ended
Mar.
15,
1926
Mar.
15,
1926
Mar.
15,
1926
440,066
406 202,713
11,169
25
22
23,106
20,581
39
14,786
56
13,205
76
6,526
20
14,180
13
12
3,540
44,777
48
20
5,926
26,515
43
11,797
9
2,066
8
4,540
15
Per cent
change
-
0 7 $11 ,801,909
Per cent
change
+ 0 5 $26.82
+ 0 2
+ 0 5
+ 0 4
—
1 7
+ 2 2
— 1 5
+ 0 5
—
1 5
—
2 9
—
0 4
+ 1 6
+ 0 3
+ 6 0
+ 1 0
+ 0 1
5 ,865,148
351,974
680,013
507,158
431,964
392,285
202,272
408,804
95,153
1 339,628
167,268
769,475
331,472
53,456
134,226
+
+
+
—
+
—
+
—
1 7
5 8
2 3
3 0
2 5
0 2
5 1
0 0
5 2
1 5
3 6
1 1
9 8
1 1
20
6
1
4
3
+ 0
—
9
+ 5
—
0
-2 8
+ 8
Per cent
change
+
1.1
28.93
31.51
29.43
24.64
29.21
29.71
30.99
28.83
26.88
29.92
28.23
29.02
28.10
25.87
29.57
+ 1.6
+ 5.3
+ 1.9
—
1.3
+ 0.3
+ 1.4
+ 4 .6
+ 1.4
—
2.3
+ 1.9
+ 2 .0
+ 0 .8
+ 3 .6
+ 0.1
+ 1.9
9
6
8
0
3
7
1
8
8
6
22.83
26.85
17.57
26.13
22.48
19.72
21.65
24.76
25.58
20.33
2 .6
0 .4
—
4 .7
—
0 .9
+ 0 .6
4 .0
+ 4 .9
—
0.3
-1 0 .5
+ 6 .7
2
0
6
3
—
2
4- 2
■+ 2
1
4
1
2
9
8
9
21.57
29.86
21.04
21.85
27.59
30.96
14.82
+ 1.5
+ 0.3
0.3
+ 3 .6
3 .0
—
0 .2
+ 3 .7
2
0
5
2
2
8
4
1
5
1
29.21
25.67
31.03
28.77
31.13
+ 2.3
—
0.3
+ 4 .6
+ 2.1
+ 1.6
+ 8 3
+ 13 3
+ 2 1
+ 1 2
27.75
31.79
21.12
25.70
+
+
+
+
—
+
+
+
+
+
+
Carpets and rugs.............................
Clothing............................................
Hats, felt and other.......................
Cotton goods....................................
Silk goods..........................................
W oolens and worsteds...................
Knit goods and hosiery.................
Dyeing and finishing textiles. . . .
Miscellaneous textile products . ..
254
14
44
9
30
60
25
43
22
7
80,133
4,221
7,091
4,977
9,894
22,212
7,805
14,595
7,813
1,525
4
1
—
0
—
2
—
0
—
6
+ 0
—
0
-2 0
+ 1
4
2
1
2
3
0
2
5
4
7
1 ,789,758
113,325
124,595
130,062
222,463
438,069
168,985
361,395
199,862
31,002
Foods and tobacco:
Bakeries............................................
Canneries..........................................
Confectionery and ice cream........
Slaughtering and meat packing. .
Sugar refining..................................
Cigars and toba cco.........................
133
39
7
27
15
3
42
31,809
4,549
3,369
5,894
2,796
2,991
12,210
+ 0 6
+ 0 2
+ 6 5
—
0 4
+ 0 1
3
0
+
- 0 8
686,224
135,848
70,881
128,795
77,129
92,587
180,984
99
41
15
28
15
28,542
5,700
8,212
9,652
4,978
+
+
+
+
+
0
0
0
0
0
5
7
5
4
5
833,826
146,310
254,849
277,681
154,986
B uildin gs..........................................
Street and highway........................
General............................................ ,
34
19
5
10
3,359
1,765
848
746
+ 1
+ 9
—
0
-1 4
0
8
5
0
93,196
56,109
17,913
19,174
Chemicals and allied products:
Chemicals and drugs......................
Explosives.........................................
Paints and varnishes......................
Petroleum refining..........................
C ok e...................................................
86
47
12
16
8
3
34,633
8,657
3,584
1,698
19,592
1,102
+ 0 7
+ 3 5
+ 4 0
1 3
—
0 6
- 3 2
1 004,610
237,886
91,159
45,124
598,053
32,388
+ 1
+ 4
4
—
1
+ 1
1
2
4
6
5
4
9
29.01
27.48
25.43
26.57
30.53
29.39
+ 0 .5
+ 0 .9
8 .4
—
0 .2
+ 1.9
+ 1.3
Miscellaneous industries:
Lumber and planing mill p ro d . . .
Furniture..........................................
Musical instruments.......................
Leather tanning...............................
Leather products.............................
Boots and shoes...............................
Paper and pulp products...............
Printing and publishing.................
Rubber tires and g o o d s.................
Novelties and jew elry....................
All other industries.........................
257
30
27
6
34
12
28
27
51
17
12
13
58,877
4,569
3,570
8,684
9,180
2,390
5,188
6,364
4,986
5,729
3,677
4,540
0 3
+ 0 8
+ 0 6
—
0 8
—
1 8
—
3 3
—
0 5
—
0 5
—
3 4
+ 3 1
+ 6 2
0 5
1 529,147
97,257
89,294
247,482
240,253
49,104
102,747
164,227
164,745
158,043
92,566
123,429
+ 2
_
2
+ 2
+ 2
+ 0
9
—
3
+ 2
+ 2
+ 1
+ 7
+ 11
0
2
5
6
4
0
0
9
7
4
9
4
25.97
21.29
25.01
28.50
26.17
20.55
19.80
25.81
33.04
27.59
25.17
27.19
+ 2 .3
_
1.4
+ 1.8
+ 3 .4
+ 2 .3
5 .9
—
2 .6
+ 3 .4
+ 6.3
1.6
+ 1.6
+ 1 1 .9
Textile products:
Building materials:
Brick, tile, terra cotta p roducts. .
Cem ent..............................................
Glass...................................................
P ottery...............................................
Construction and contracting:*
-
—
-
—
—
—
+
+
+
+
+
+
+
+
+
—
—
7.3
3 .2
2 .5
17.6
* Pennsylvania only
rate o f a year ago. Building contracts
awarded during last March totaled $45,718,566 as against $48,902,099 in March,
1925, a drop of 6.5 per cent. In the
United States, on the other hand, the
volume of contracts awarded during the
same period increased 21.8 per cent. Per
mits issued in March in 16 cities of
this district numbered 2,876, calling for
an expenditure of $21,022,232, compared
with 6,972 permits and cost of $31,655,763 in March, 1925.
Cement. A considerable improvement
has occurred during the past four weeks
in the distribution of cement. Prices are
unchanged from those of thirty days ago.
Compared with the volume for the same
season last year, however, business has
been materially smaller as a result of
the unfavorable weather which has in
terfered with construction activity. Most
o f the present orders call for early de
livery. Plants are now operating at over
90 per cent of capacity. In spite of the
fact that contracts on hand are now as
large as they were a year before, ship
ments in this district during March were
nearly 13 per cent smaller. Stocks in
this section on April 1 were about 12 per
cent greater than those on the same date
last month and a year ago. March output
was nearly 24 per cent above that in
February, but was 1 per cent below the
level o f a year ago.
Page Five
Lumber. Business in lumber is more
active than it was four weeks ago but,
compared with the same month last year,
sales are a trifle smaller. Buying, at
prices practically unchanged from last
months’ levels, is mainly for prompt ship
ment.
Unfilled orders, however, have
increased during the past four weeks
sufficiently to insure mill operations at
the present rate of over 90 per cent of
capacity for about sixty-five days. Stocks,
though somewhat heavy, are not exces
sive. Collections are fairly prompt.
Paint. Since March 23 the demand
for paint in this district has increased
somewhat over that in the previous
month, and present sales equal the mod
erate volume for the same period last
year. Price advances have been made in
several items, both in finished products
and in raw materials, but quotations gen
erally continue unchanged from those of
thirty days ago.
Unfilled orders are
sufficient to insure plant operations at
the present rate of 70 per cent of ca
pacity for about a month. Stocks are
not large. Collections are only fair.
IR O N A N D S T E E L
Activity in iron and steel products in
the Philadelphia reserve district continues
moderate, although demand for castings,
crude steel, scrap, hardware, machinery
and tools has slackened somewhat during
the past four weeks. At present, among
the most active buyers are building con
tractors, railroads, public utilities, coal
mines, and automobile manufacturers.
Contract awards for structural steel for
the Delaware River Bridge, Sesqui-Centennial and other buildings have been con
siderable since March 23.
iron dropped further to $20.46 a ton on
April 20 from $21.38 one month ago.
Connellsville furnace coke remains at $3
a ton at the oven, which is the same as
it was a month ago, but foundry coke de
clined 25 cents a ton since March 23.
Plant operations in this district, at 70
per cent of capacity, continue unchanged
from last month’s rate. The output of
pig iron during last March rose from
300,974 tons in February and 365,383
tons in March, 1925, to 381, 959 tons, the
largest o f any month since March, 1924.
Production of steel ingots in the
United States during March exceeded
that of any month in the past ten years,
but unfilled orders o f the United States
Steel Corporation registered a further
decline. The volume of production and
unfilled orders is as follow s:
In gross tors
(000’s omitted)
Production in the U. S.—
Pig iron .........................
Unfilled orders—
U. S. Steel C orp...........
Mar.,
1926
3,564
4,199
2,923
3,805
3,442
4,492
4,864
4,617
4,380
March
C ap acity............... 12,190 tons
Production...........
9,199 “
Shipments............
5,820 “
Value................. $944,230
Unfilled orders %..
6,626 tons
Value J ............. $1,063,857
Raw stock:
Pig iro n .............
3,427 tons
Scrap.................
9,212 “
C o k e..................
1,543 “
* 11 plants,
omitted.
t 5 plants,
Change
from
Feb.,
1926 *
Change
from
Mar.,
1925 t
0
+ 2 8 .4 %
+ 8 .8 *
+ 1 2 .2 “
+ 4 1 .1 “
+ 1 8 .2 “
+ 3 2 .2 %
- 6 .6 “
-1 0 .7 “
+ 8 2 .7 “
+ 5 5 .3 “
0
+ 3 8 .8 “ + 9 .9 “
+ 6 .3 “ - 4 .6 «
+ 4 3 .0 “ + 1 6 .0 “
t Figures of one plant
COAL
Anthracite. The demand for domestic
sizes, particularly chestnut, stove and pea
coals, continues fairly steady, but selling
of steam sizes, except barley, is com
paratively slow. In Philadelphia, com
pany prices have remained stable during
the past four weeks, but independent
quotations in the main have declined.
Compared with a year before, both com
pany and independent prices at present
are higher.
Most Pennsylvania collieries are now
working at capacity. W ith a few excep
tions, stocks of mined coal are not large.
Weekly production has been as follow s:
In thousands of net tons
Per cent
of change
Week ended
Mar.
Mar.
Apr.
Apr.
Apr.
20. .. .
27. . . .
3 ....
1 0 ....
17___
1925
1926
1,513
1,640
1,438
1,672
1,522
1,963
1,991.
1,548
1,793
2,0 8 6
+ 2 9 .7
+ 2 1 .4
+ 7 .6
+ 7 .2
+ 3 7 .0
Source: U. S. Geological Survey.
C ap acity...............
P roduction...........
Malleable iron .
Gray iro n .........
Jobbing........
F o r fu rth e r
m fr.............
Shipments............
Value.................
Unfilled orders. . .
Value.................
Raw stock
Pig iron .............
Scrap.................
C ok e..................
Page Six
Feb.,
1926
Iron foundries. Iron foundries in this
district continue active.
Gains during
March in nearly all operating items were
reported by 39 foundries whose combined
monthly capacity of 12,764 tons remained
unchanged from that of a year ago. As
will be seen from the table below, large
increases over the February totals oc
curred in the output of castings, malleable
and gray iron.
Iron foundry
operations
Except for slight declines in prices of
pig iron, castings, crude steel and scrap
and small advances in sheets, plates and
shapes, quotations in this district have
remained steady during the past thirty
days.
Average prices in the country
as a whole rose from 2.431 cents a pound
for finished steel one month ago to 2.439
cents on April 20, whereas prices of pig
Mar.,
1925
Steel foundry
operations
March
Change
from
Feb.,
1926
0
12,764 tons
6,666 “ + 1 9 .0 %
736 “ + 2 8 .4 “
5,930 “ + 17.9 “
4,210 “ + 2 0 .4 “
1,720 “
5,519 “
$735,639
4,533 tons
$715,768
+ 12.2
+ 2 6 .7
+ 1 6 .6
+ 8 .3
+ 11.3
“
“
“
“
“
Change
from
Mar.,
1925
0
+ 14.4%
+ 2 0 .3 “
+ 13.7 “
+ 15.5 “
+ 9 .5
+ 1 6 .3
+ 11.4
+ 9 .5
+ 11.4
“
“
“
“
“
7,789 tons + 2 .3 “ + 5 .0 “
3,313 “ + 13.5 “ + 1.3 “
2,032 “ + 16.2 “ - 6 .1 “
Steel foundries. The output of steel
castings in this district, which in March
was 28.4 per cent above/ February’s volume
and 32.2 per cent greater than that in
March, 1925, continues at a high rate.
Shipments during March exceeded those
of the previous month by nearly 9 per
cent, but were 6.6 per cent below the
volume of a year ago. Gains in the
volume of unfilled orders were very large,
as is shown in the following table:
Bituminous. Poor demand, a down
ward trend in prices, and curtailed pro
duction have characterized the soft coal
industry in this district during the past
four weeks. The opening of the coal
year on April 1 stimulated neither spot
buying nor contracting; in fact, several
large cancellations have occurred since
March 20. Spot prices continue to de
cline, the “ Coal A ge” index dropping
from 167 on March 22, 1926, and 161
on April 20, 1925, to 158 on April 19,
1926,— the lowest level since 1916.
The weekly output in the United
States is given below.
In thousands of net tons
Per cent
of change
Week ended
Mar.
Mar.
Apr.
Apr.
Apr.
20. . . .
2 7 . .. .
3 ... .
1 0 ... .
1 7 . .. .
1925
1926
8,283
8,353
7,547
7,843
7,515
10,263
9,626
9,034
9,429
9 ,2 9 5
Source: U. S. Geological Survey.
+ 2 3 .9
+ 1 5 .2
+ 1 9 .7
+ 2 0 .2
+ 2 3 .7
T E X T IL E S
WAGE PAYMENTS IN TEXTILE MILLS
PENNSYLVANIA AND NEW JERSEY
Cotton. Activity in the cotton indus
try, though moderate, does not compare
favorably with the rate that prevailed
in the previous month and at the same
time a year before.
Buying is com
paratively slow and orders for delivery
beyond sixty days are scarce. Unfilled
orders are much smaller than they were
thirty days ago, and are sufficient to in
sure plant operations at the present rate
o f 80 per cent of capacity for a little
over a month. No excessive accumula
tion o f stocks is reported in either yarns
or fabrics.
Since March 19, quotations for finished
merchandise, as reported by the Fairchild
Analytical Bureau, have declined about
4 per cent in yarns and nearly 2 per cent
in fabrics, gray goods showing the great
est drop. Compared with those of a year
ago, prices o f yarns are more than 18
per cent lower and those of various cloths
15 per cent lower. Raw cotton also is
more than 20 per cent below the prices
of a year before. During the past four
weeks spot cotton fluctuated between
19.05 and 19.55 cents a pound, selling
on April 24 at 18.90 cents a pound.
Domestic consumption rose from 621,222 bales in last February and 642,228
bales in March, 1925 to 695,125 in March,
1926. Exports for the four weeks ended
April 23 were 10.6 per cent below last
month’s volume and 11.6 per cent below
that of a year ago. The present position
of American cotton is :
American cotton*
(thousands of bales)
Visible supply at end of
previous season (July
3 1 )..................................
Crop in sight on Apr. 23
T o ta l.........................
Visible supply on Apr. 23
W orld’s takings to Apr.
2 3 ..............................
Season Season
’2 3 -’24 ’2 4 -’25
Season
’2 5 -’26
870
10,454
952
14,116
1,125
15,230
11,334
1,964
15,068
3,184
16,355
3,972
9 ,3 6 0
11,885
12,382
♦Compiled by the New York C otton Exchange
According to private and official re
ports, the outlook for this year’s cotton
crop appears to be favorable, though the
planting season is somewhat belated, ow
ing chiefly to cold weather and excessive
rains in some large sections of the cotton
belt. Acreage is estimated to be close
to that of 1925, but the amount o f fer
tilizer used is said to be larger. Labor
supply in the main is ample and wages
are about the same as those of last season.
W ool.
During the month ended
April 24 business in wool manufactures
and raw wools was not as active as it
was in the previous month or a year ago.
The demand for both yarns and fabrics
has fallen off considerably, buying being
chiefly for prompt delivery.
Unfilled
orders on books of manufacturers and
dealers are now somewhat smaller than
Raw silk*
(in bales)
Mar.,
1925
Feb.,
1926
Mar.,
1926
Im ports.......................
S tocks..........................
Mill takings...............
31,571
46,663
45,157
38,568
43,418
42,476
31,930
35,948
39,400
♦Silk Association of America.
Silk m ill activity expanded alm ost steadily
since the sum m er of 1924 until very
recently, while the woolen industry,
after a temporary rise, slackened
operations during the past
year.
Source— Federal Reserve Bank o f Philadelphia
they were four weeks ago. Plant opera
tions in this district, though slightly be
hind the schedule maintained in the same
period last year, continue practically un
changed from last month’s rate of about
65 per cent of capacity. Stocks, which
are moderate, are said to be decreasing.
Prices of woolen and worsted fabrics
show a marked weakness, reflecting the
downward trend in quotations for raw
materials. According to Fairchild’s in
dex prices, since March 19, have declined
nearly 3 per cent in domestic, and 1 per
cent in foreign wools, and are now more
than 19 and 16 per cent, respectively, be
low those of a year before. Composite
worsted yarn quotations are nearly 12
per cent lower than they were at the
same time last year.
March consumption of wool in this
district was 17.2 per cent greater than in
February, and in the country was 8 per
cent larger.
Silk. In the past four weeks the dis
tribution o f broad and narrow silks has
lagged considerably behind the volume
sold in the same period a month ago
and last year. Demand has continued
only fair, about 90 per cent of orders on
hand being for delivery within the next
sixty days. Compared with the previous
month, unfilled orders are smaller; they
are sufficient to insure plant operations
at the present rate of about 80 per cent
of capacity for nearly fifty days. Sup
plies of finished goods are ample and
show a slight tendency toward accumula
tion.
Prices of silk goods show a further
decline. Fairchild’s index number, which
stood at 132.05 on March 1, 1926 and
122.61 on April 1, 1925, was reported at
127.41 on April 1, 1926. Quotations for
raw silk also have registered a decrease
since March 24, Kansai double-extra
cracks selling at $6.05 a pound on April
24 as against $6.55 a month before and
$6.50 on April 24, 1925. Activity in raw
silk is indicated below.
Rayon. The demand for rayon from
makers of hosiery, underwear, cotton and
silk goods continues steady. Domestic
prices in the main remain unchanged from
those o f four weeks ago, despite recent
rumors of recession. Plants are working
almost on full schedule. At the present
rate of output it is estimated that the
output of rayon in the United States in
1926 will be 35 per cent above that of
1925. The table below shows consump
tion of rayon in comparison with that of
other major textile fibers.
United States Consumption
in thousands of pounds
1920...................
1921...................
1922...................
1923...................
1924...................
1925...................
Rayon*
Cotton
W ool
Silk
12,100
18,670
27,150
39,400
40,450
57,700
3,381,104
2,704,490
3,274,427
3,656,101
3,108,646
3,582,397
500,744
452,912
560,218
550,878
460,401
450,019
29,729
44,676
49,077
47,849
48,853
66,929
♦Imports included.
Hosiery. Manufacturers of seamless
hosiery report little change in the situa
tion. Reports are rather evenly divided
as to whether business is fair or poor.
Fancies for men still constitute one of
the bright spots.
Prices have not
changed except in a few instances. Stocks
of goods are much the same as last month,
and in most cases are said to be either
medium or heavy. A number of firms re
port a decline in operations, and more
declines than increases in unfilled orders
are reported.
Demand for full-fashioned ladies’ silk
hosiery continues good. The majority
of firms are operating at 100 per cent of
capacity. Stocks are not heavy and are
about the same as they were a month
ago. A few firms report sufficient orders
to maintain capacity operations for the
balance of the year.
Underwear. April is usually a month
in which new business is light as the
first rush o f orders for the spring trade
has passed. The majority of firms re
porting to this bank find demand either
fair or poor, and state that it does not
equal that o f last month or o f April last
year. Weakness in prices also is re
ported but only one report indicates any
decline in the last month.
Stocks of
goods are light and are either stationary
or decreasing.
Operations at reporting firms hold up
well. A few are operating at 50 per
cent or less, but the majority are carry
ing on at 80 to 100 per cent of capacity.
Unfilled orders have declined, but a suffiPage Seven
cient amount remains on the books to per
mit the maintenance of present output for
from two to three months in most in
stances.
Clothing. During the past four
weeks, the demand for clothing and
furnishings has continued active and sales
have exceeded materially those in the
same period of last year. Except for
some concessions, prices have been fairly
stable. The majority of plants are work
ing close to the full schedule but the
average rate of operations in the Phila
delphia reserve district is 80 per cent
of capacity. Unfilled orders are con
siderably smaller than they were thirty
days ago, the decline being mainly sea
sonal. Stocks o f finished goods and raw
materials are comparatively light. Col
lections are fairly prompt.
Floor coverings At the auction sales
of carpets and rugs held by the A lex
ander Smith and Sons’ Carpet Company
during the week beginning April 5,
prices were about 10 per cent lower than
those realized at the December sales.
Unusually cold weather, the season be
ing much behind, has retarded demand
in this district, but little can be deter
mined definitely about fall business until
salesmen have returned from the road.
Stocks are moderate, averaging about
the same as they were a month ago.
Reporting plants have unfilled orders
sufficient to insure about one month’s
operation. There is quite general resis
tance to present prices. Factories pro
ducing linoleums and felt base goods re
port business as fairly good.
L E A T H E R A N D SH O ES
During the closing weeks of March
and in the beginning o f April further
weakness developed in the market for
packer hides and quotations at Chicago
declined about one cent a pound on the
average. More recently greater interest
has been manifested and prices for some
descriptions have recovered somewhat.
Compared with last month the market
for goatskins suitable for colors is
slightly stronger in some instances, but
skins adapted to the production of blacks
continue without feature.
Business in glazed kid is a little quieter
than it was a month ago, but manufac
turers of colored kid find a fairly good
demand for their products. The demand
for black kid is quiet. Prices of kid
leather show little change, although re
sistance is offered to quotations for lower
grades according to a few reports.
Operations at plants reporting to this
bank average 84 per cent of capacity.
Orders now on the books are largely for
delivery within sixty days. Business in
sole leather is mixed but according to
reports, the findings trade is buying more
actively than the factory trade. Prices
of sole leather show an easing tendency.
Page Eight
The demand for shoes continues fair
but does not equal that in March or in
April o f last year. Stocks are moderate
or light and, compared with a month ago,
either have remained stationary or have
declined. The majority of firms have
a smaller volume of business on their
books than last month, and in few in
stances will they permit operations for
longer than one month.
Production of shoes in the Philadelphia
Federal Reserve District in March was
15.3 per cent greater than in February,
according to preliminary figures o f the
Bureau o f the Census. In the United
States the increase was 15.2 per cent.
In this chart the purchasing power of farm "
products is expressed in term s of n o n agricultural com m odities. The rise in
the purchasing power of farm pro
ducts in recent years leaves
them still m uch below the
pre-war
parity
with
other com modities.
Figures submitted by 86 establish
ments in this district are given below :
Sources— Standard Daily Trade Service and
Bureau o f Labor Statistics
PRODUCTION OF SHOES*
Philadelphia Federal Reserve
District
(in thousands of pairs)
High and low cut (leather) total
M en 's..........................................
B oys’ and youths’ ....................
W omen’s .....................................
Misses’ and children’s .............
Infants’ .......................................
All other leather or part leather
footw ear..................................
Mar.,
1926
Per cent
change
from
Feb.,
1926
1,447
1,384
117
146
232
510
379
+ 1 5 .3
+ 1 5 .3
- 5 .0
+ 1 7 .1
+ 2 7 .8
+ 1 1 .4
+ 2 0 .8
63
+ 1 6 .6
plowing will be completed by the end of
April, although in some counties the per
centage is somewhat higher. The acreage
ready for planting or seeding ranges from
35 to 60 per cent o f the total acreage
plowed. The area to be planted to prin
cipal money crops appears to compare
favorably with that o f last spring. T o
bacco growers, however, are reducing
their acreage chiefly because of unsatis
factory prices realized on last year’s crop.
Farmers have bought commercial fer
tilizer in amounts from 10 to 15 per
cent above last season’s tonnage, except
in one large county which shows a de
crease of about 30 per cent.
No marked damage from frost has
been noted in the fruit growing sections.
Although the number of weeks during
which winter grains were partially or
wholly protected by snow was about the
same as in the previous year, the condi
tion of winter wheat in this district on
April 1 was poorer than that o f last
season, whereas in the United States as a
whole the condition was substantially bet
ter, as is indicated in the accompanying
table.
Dairy herds and other cattle are in
fair condition, and pasturage on April 1
was estimated at 81 per cent of normal
as against 86 per cent a year before and
a ten-year average of 84 per cent. The
supply of farm labor is a trifle smaller
than it was in April, 1925, and wage
rates are about 2 per cent higher.
*Preliminary report— Bureau of the Census.
CIGARS
Compared with that of last month and
a year ago, the market for cigars has
improved somewhat during the last four
weeks. Sales have been a little larger
and more frequent, although most orders
called for immediate shipment.
Cigar
quotations continue firm in the face of
marked resistance to prices, particularly
in lower grades. Unfilled orders will in
sure plant operations at the present rate
of 65 per cent, on the average, for about
a month. Stocks are not heavy.
A G R IC U L T U R E
Adverse weather conditions have re
tarded spring farm activities by more
than two weeks, according to reports re
ceived from county agents in the Phila
delphia reserve district. From present
indications less than 60 per cent of spring
Rye,
per cent normal
W inter wheat,
per cent normal
KsliiuitiLtiJ ci op conditions on
April 1, 1926
1926
1925
10-yr.
aver.
1926
1925
10-yr.
aver.
84
77
79
85
69
85
88
90
79
88
88
86
80
81
82
88
84
87
90
90
87
90
90
88
@FedFRASER