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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT M AY 2192.7 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA B U SIN E SS Industrial activity increased further in March and was larger than a year ago, while the general level o f prices con tinued to decline. Distribution o f com modities at wholesale and retail was somewhat smaller than a year ago. Production. Industrial production, after increasing continuously for three months, was larger in March, when al lowance is made for usual seasonal changes, than in any month since last September. Output o f bituminous coal, crude petroleum, and steel ingots, and mill consumption of raw cotton in March were larger than in any previous month. Since April 1, however, steel mill operations have been somewhat cur tailed, and bituminous coal output has been reduced by about 40 per cent since the beginning of the miners’ strike on April 1. The consumption of silk and wool, sugar meltings, flour production and the output of rubber tires increased in March. Production o f automobiles has shown seasonal increases since the first o f the year, but has been in smaller volume than a year ago. The value of building contracts awarded in March was larger than at any previous time, and the production of building mate rials has increased considerably in recent weeks. The largest increases in contracts, as INDUSTRIAL C O N D IT IO N S IN THE U N IT E D STATES compared with last year, were in the middle western states, while the largest decreases occurred in the southeastern states. In the first half o f April con tracts awarded were in slightly smaller volume than in the same period o f last year. Trade. Sales o f department stores increased less than usual in March and were slightly smaller than last year, ow ing in part to the lateness of Easter. Sales o f mail order houses and chain stores, however, were somewhat larger than a year ago. Inventories o f depart ment stores increased slightly more than is usual in March in anticipation of the expansion in retail trade before the Eas ter holidays, and at the end of the month they were in about the same vol ume as a year ago. Wholesale trade in March continued slightly smaller than in the corresponding period a year ago. Stocks o f merchandise carried by whole sale firms wTere seasonally larger at the end o f March than in February, but in most lines continued smaller than last year. Freight car loadings which showed seasonal increases in March declined in the first ten days of April, owing to the smaller shipments o f coal, but continued larger than in the corresponding period o f previous years. Loadings of miscel laneous freight and of merchandise in less-than-car-load lots were in large volume. Prices. The general level o f whole sale commodity prices declined further in March, reflecting decreases in most o f the important groups o f commodities. Prices o f non-agricultural commodities as a group declined to the lowest level since the war, while the average for agricultural products which advanced somewhat from November to February, r e m a i n e d practically unchanged in March. During the first half o f April, prices o f winter wheat, sugar, cotton, silk, bituminous coal, and hides ad vanced ; while those o f hogs, crude pe troleum, gasoline, and non-ferrous met als declined. Bank credit. There was some de cline in the volume o f loans for com mercial purposes and in loans on securi ties at member banks in leading cities between the middle o f March and the middle o f April. Member bank holdings of United States securities, which had increased considerably in the middle of March in connection with the operations of the Treasury, have declined by more than $ 100,000,000 since that time, but are still about $200,000,000 larger than in the early months o f the year. At the reserve banks total bills and F e d e r a l R e s e r v e B o a r d ’ s in d e x e s o f v a lu e o f b u ild in g c o n t r a c ts a w a rd e d as r e p o r te d b y th e F . W . D o d g e C o r p o r a t i o n (1 923-25 a v e r a g e = 10 0 ). L a t e s t fig u r e s — M a r c h , a d j u s t e d in d e x , 131, u n a d ju s t e d in d e x , 151, I n d e x o f U n it e d S t a t e s B u r e a u o f L a b o r S t a t is t i c s ( 1 9 1 3 —100, b a s e a d o p t e d b y B u r e a u ). L a t e s t fig u r e — -M a r c h , 145.3. PRODUCTION PER CENT PER CENT 150 150 100 100 50 1923 1924 1925 1926 1927 0 In d ex n u m b e r o f p r o d u c t io n o f m a n u fa c tu r e s a n d m in e r a ls c o m b i n e d , a d j u s t e d f o r s e a s o n a l v a r i a t io n s (1923-25 a v e r a g e = 1 0 0 ). L a te st fig u r e — M a r c h , 112. Page One M E M B E R B A N K C R E D IT 8 6 Latest figure compared with BUSINESS IN DICATO RS Philadelphia Federal Reserve District kLL OTHER LOANS ( l a ^GELY COM m e r c ia Q March, 1927 8 6 I n v e STMENTS T r 4 i u 4 ON SECUR TIES 2 2 1923 1924 1925 1926 1927 M o n t h l y a v e r a g e s o f w e e k ly fig u r e s f o r b a n k s i n 101 l e a d i n g c it i e s . L a t e s t fig u r e s a r e a v e r a g e s f o r fir s t t h r e e w e e k ly r e p o r t d a t e s i n A p r i l . securities, which have fluctuated near the $ 1,000,000,000 level since the end of January, showed little change during the six weeks ending April 20. Discounts for member banks were in about the same volume on that date as on March 9, while acceptances showed a decrease and holdings o f United States securities a slight increase. During the first three weeks o f April quoted rates on prime commercial paper and on acceptances were the same as in the latter part o f March, while call money averaged somewhat higher. B U S IN E S S 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 Seasonal business expansion has been somewhat less than usual during the past two months and the current volume of production and distribution in the Phila delphia Federal Reserve District, though large, is below the record high levels reached in the spring of 1926. Factory output in the district, as measured by reports o f employment, wage payments and employe-hours worked, was prac tically constant in February and March, but in April a decline in employment of nearly 3 per cent is indicated by pre liminary figures. At this level the num ber on factory payrolls is less than at any time since 1924. In the bituminous mining industry there has also been a slackening, owing to the suspension which has been effective in union fields since April 1. Curtailment has not stimulated the market, however, and demand is actually quieter than it was before the strike. Anthracite col lieries have been more active in the last few weeks and buying of steam sizes has improved. There has been further expansion of building in the Philadelphia district. Con tract awards in March, as in January and February, were considerably larger than in the same month of last year although residential building was in smaller volume and constituted a much smaller share of the total. The market for building ma terials, especially for cement, has shown good seasonal strength, and factories making these products are working at within 10 or 15 per cent of capacity. The iron and steel industries of the Page Two Previous month Year ago + 2 0 .1 % + 2 2 .7 “ + 1 7 .9 “ + 3 5 .0 “ -2 4 .0 “ - 9 -1 % - 9 .0 “ - 6 .1 “ -1 2 .4 “ -1 6 .2 “ - 2 .3 -1 4 .1 - 8.1 -1 2 .7 + 1 5 .4 + 1 .9 - 0 .1 - 3 .7 - 3 .4 Retail trade— estimated net sales (136 stores)..................... Department stores (6 1 )............................ Apparel stores (3 3 )....................... Shoe stores (2 5)......................... Credit stores (1 7 )........................................... $21,655,000 $18,440,000 $1,941,000 $585,000 $689,000 W holesale trade— net sales (137 firm s).................................. Boots and shoes (9 firm s)............................................. Drugs (14 firm s)................................ D ry goods (16 firm s).............................................................. Electrical supplies (5 firm s).................................................. Groceries (46 firm s).......................... Hardware (26 firm s)............................................................... Jewelry (11 firm s).............................................. Paper 10 firm s)....................................................................... $9,621,692 $356,283 $1,759,671 $890,890 $442,572 $3,144,081 $1,991,997 $366,645 $669,553 + 2 3 .7 + 5 1 .3 + 16.2 + 3 9 .5 + 4 .8 + 1 7 .2 + 4 0 .8 + 2 0 .8 + 1 8 .6 “ “ “ “ “ “ “ “ “ 1,621,782 363,230 1,264,331 5,921 7,512 2,997,000 6,098,000 14,811,000 7,754,181 95,677,771 433,138,000 + 1 8 .1 + 1 9 .3 + 1 7 .3 + 1 5 .1 - 8 .7 + 2 7 .4 + 4 .2 + 12.8 + 1 0 .5 + 18.2 + 9 .3 “ “ “ “ “ “ “ “ “ “ “ 208,719 3,466,299 1,517,456 3,938,715 12,012,440 + 7 .8 + 1 3 .2 . + 1 .5 -7 9 .1 + 9 2 .3 “ “ “ “ “ “ “ “ “ “ “ “ “ “ Production: Pig iron........................................ Hosiery* (107 m ills)............................................................... Iron castings (35 foundries).................................................. Steel castings (12 foundries)................................................. Cem ent......................................................... Anthracite............................................................ Bituminous coal— P enna....................................................... Active cotton spindle hours (Penna. and N. J .) .............. Electric power— 13 system s.................................................. Distribution: Freight car loadings (Allegheny district— weekly average) Tonnage of vessels (Por 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 discount d held by F. R. B. of Phila. (daily average) Acceptances executed (9 banks for month ended Apr. 10) Bankers’ acceptances sales (4 dealers— weekly average Commercial paper sales (6 dealers)..................................... Savings d posit (97 banks).................................................. General: Debits (18 cities)..................................................................... Commercial failures— number.............................................. Commercial failures— liabilities............................................ Building permits (16 cities)................................................... Building contracts awarded (Philadelphia d istrict)........ Employment— 866 plants in Penna.: Number of wage earners................................................... Total wages.......................................................................... Average weekly earnings................................................... Sales of life insurance (Penna., N. J. and D e l.)............... prs. tons doz. prs. tons tons bbls. tons tons lbs. KW H tons bus. lbs. gals. - 4 .9 “ - 7 .0 -1 9 .9 - 1 .2 -3 0 .6 + 2 0 .7 “ “ “ “ “ -1 3 .5 “ + 8 .4 “ + 5 .6 + 3 .1 -1 0 .9 -5 0 .0 -4 1 .8 “ “ “ “ “ $ 1,182,000,000 $41,319,000 $4,320,000 + 1 .5 “ + 15.7 “ + 1 2 .4 “ + 4 .2 “ -3 0 .2 “ + 9 .1 « $2,076,000 $7,878,000 $645,819,000 -1 4 .8 “ -1 9 .8 “ + 0 .5 “ + 5 3 .5 “ + 7 .2 “ $2,623,415,000 83 $3,966,722 $19,097,461 $52,350,551 295,974 $7,904,301 $26.71 $106,385,000 + 17.1 + 2 2 .1 -5 2 .0 + 6 6 .3 + 5 8 .2 “ “ “ “ “ + + “ “ “ “ 0 .2 0 .2 0 .3 19.6 + 2.1 + 2 7 .7 + 1 2 3 .2 - 9 .2 + 14.5 “ “ “ “ “ - 3 .2 “ - 1 .9 “ + 1 .3 “ + 10.4 “ * Bureau of Census preliminary figures. district have experienced some recent slackening in demand and operations, fol lowing an active first quarter. In March production of pig iron and steel both in this district and in the country as a whole was at a very high rate; daily out put of steel ingots was the greatest on record. Prices have been fairly steady in recent weeks at levels somewhat below those of last year. March also witnessed great activity in the cotton and silk industries as indicated by the heaviest mill consumption of raw cotton and mill takings o f silk ever re corded. Good business is being done in cotton goods, and prices both of goods and raw cotton, have been fairly steady of late at levels much below those of last year. Quotations for silk goods also are steady and demand is fair, after some im provement since the middle of March. The wool industries are quiet and prices o f domestic wool have weakened, despite the rising quotations in the foreign raw wool market. Mill operations in this dis trict are at about 70 per cent of capacity. A poor market exists for most grades of hosiery, except women’s full-fashioned, which has experienced some improvement in the last month. Business in carpets and rugs has not improved since the Smith auction, at which record sales were made, and operations average less than two-thirds of mill capacity. Clothing producers report a fair volume of spring business at steady prices, and factories in the district are operating at 70 per cent of capacity. The market for packer hides and for sole leather has strength ened, but demand for goatskins and for black and colored kid has weakened since last month. The shoe industry is fairly active and demand is a little better than it was last month. The later occurrence of Easter this year was probably partly responsible for the poor showing made in Alarch by vari ous lines of retail and wholesale trade. Retail sales of reporting stores were 9 per cent smaller than in 1926, and the wholesale volume declined more than 2 per cent, with losses registered by all lines but electrical supplies and groceries. Freight car shipments in the Allegheny district, however, during the last four weeks have been 6.6 per cent ahead of those in the same period o f 1926 and debits in the district, despite lower whole sale prices, were 2.1 per cent larger in March, 1927'than in the same month a year earlier. City conditions. A seasonal improve ment has occurred in most o f the leading city areas of this district as compared with conditions prevailing in February. In contrast with a year before, however, March proved to be a slightly less active month industrially and commercially than the corresponding period of last year. While nearly all cities listed in the ac companying table showed appreciable gains in savings deposits, the volume of check payments and retail trade declined in most areas from the totals of March, 1926. Factory employment and wage payments also declined somewhat, but the consumption of electric power increased in all cities but Scranton. The value o f building permits, too, registered gains, except for Johnstown, Scranton, W il liamsport, Philadelphia and Harrisburg. F IN A N C IA L C O N D IT IO N S Large sums were withdrawn by the Government from funds on deposit at commercial banks in this district in the four weeks ended April 20 and in the week o f March 30 nearly 4 millions of income tax checks were credited to the account o f the Treasurer of the United States. These drains upon the banks ex ceeded amounts disbursed in the redemp tion of Government securities and the payment of coupons on Government is sues. In the transit clearings, however, owing to a gain o f 29.4 millions in the week of April 6, this district had a favor able balance of 20.2 millions in the four weeks. Currency and coin moved out ward in anticipation of Easter needs, but returned in considerable volume shortly afterward, with the result that receipts from and payments to banks in the dis trict nearly balanced. Member banks in Philadelphia reduced their indebtedness to the reserve bank from 18.9 to 13 millions, but banks outside o f this city added slightly to their borrowings. Cash reserves increased largely and the reserve ratio advanced from 79.9 to 82 per cent, notwithstanding increases in the note and deposit liabilities. The reports o f 127 member banks in the Philadelphia Federal Reserve District show that loans and discounts increased only 1.9 millions and that investments declined 8.3 millions in the four weeks ended April 13. Net demand and time deposits fell off slightly. In the past year the loans o f 126 banks increased 8 millions, but investments and deposits gained in much greater measure, the ad vances in these items being 34 and 36 millions, respectively. Ninety-seven banks classified their loans and discounts, showing the follow ing changes: CITY CON DITION S Philadelphia Federal Reserve District Al.entown Harrisburg Johnstown Lancaster Philadelphia Reading Scranton Trenton Wilkes-Barre Williamsport Wilmington Y ork a re a ... “ “ “ “ “ “ “ “ “ “ “ ... ... ... .. . ... ... ... ... ... ... ... March, 1927, compared with March, 1926 Em ploy ment - 7 .4 % — + + 5 .1 9 .0 8 .6 0 .1 0 -1 1 .7 -1 1 .0 - 9 .0 - 2 .9 -1 3 .7 + 2 .7 Value of bu lding permits Wage payments - “ “ “ “ “ “ “ “ “ “ “ 4 .7 % - 0 .4 + 7 .6 -1 0 .7 + 2 .7 - 4 .6 - 1 0 .1 - 7 .2 -1 6 .7 + 0 .7 - 9 .7 + 0 .6 “ “ “ “ “ “ “ “ “ “ “ + 5 3 .3 % + 4 9.4 “ - 12.9 “ -2 1 .1 “ + 17.1 “ - 16.1 “ + 15.1 “ - 3 0.6 “ + 8 .1 “ + 14.1 “ - 7 9.6 “ + 7 6.5 “ + 3 0 6 .5 “ Retail trade sales Savings deposits Debits + 0 .7 % + 0 .9 “ - 3 .8 “ -1 .6 “ -1 4 .3 “ + 3 .8 “ - 0 .9 “ - 2 .3 “ . - 0 .8 “ + 2 .0 “ + 4 .3 “ - 4 .1 “ - 1.1 “ + + + + + + + + + + + + 3 .6 % 11.0 “ 11.6 “ 4 .4 “ 8 .6 “ 7 .7 “ 1 .0 “ 15.3 “ 2 .2 “ 6 .5 “ 6 .5 “ 5 .4 “ 2 .9 “ Electric power sales + + + + + + 2 .9 % * 16.2 “ 0 .6 “ 8.1 “ f 4 .0 “ 8 .2 “ + 2 .2 % + 3 .3 “ -1 7 .7 “ + 8.1 “ + 3 .8 “ -1 0 .9 “ - 9 .0 “ - 7 .2 “ - 7 .8 “ + 1.5 “ - 7 .5 “ - 9 .6 “ - 4 .0 “ - 1.7 * + 7 .3 “ .................§ .................§ + 3 .0 “ + 1 3 .4 “ + 2 6 .5 % + 4 7 .9 “ + 17.7 “ -1 0 .3 “ + 6 4 .6 “ + 2 6 .0 “ + 14.6 “ + 4 4 .4 “ + 15.7 “ + 3 3 .9 “ + 14.9 “ - 1.7 “ + 3 2 .1 “ + 6 .3 % * + 1 .3 “ - 2 .6 “ + 8 .6 “ t - 6 .5 “ - 0 .9 “ + 4 .0 “ - 7 .2 “ - 3 .7 “ t .................§ .................§ - 6 .6 “ -1 0 .7 “ March, 1927, compared w th February, 1927 Allentown Harrisburg Johnstown Lancaster Philadelphia Reading Scranton Trenton Wilkes-Barre Williamsport Wilmington York a re a .. . “ “ “ “ “ “ “ “ “ “ “ ... ... ... ... ... ... ... ... ... ... .. . + 2 .7 % + 2 .8 % + + + - + + + - 1 .2 * 6 .0 “ 0 .7 “ 0 .1 “ 2 .2 “ 0 .3 “ 0 .0 “ 1 .9 “ 2 .2 “ 2 .9 “ 0 .2 “ 3 .4 1.7 0 .5 0 .8 7.1 1 .8 0 .1 2 .8 2 .7 1.3 1 .0 “ “ “ “ “ * “ “ “ “ “ + 2 7 .4 % + 199.7 “ + 2 7 6 .3 “ + 157.6 “ + 3 0 2 .6 “ + 8 1.4 “ + 123.3 “ + 19.4 “ + 5 4.4 “ + 7 7.5 “ - 4 7 .0 “ 3 .7 “ + 2 4 6 .7 “ ♦Includes Wilkes-Barre and Williamsport areas, § Included in Allentown area. Loans on securities Other loans and discounts + 18.2 % + 2 0 .9 “ + 9 .8 “ + 11.8 “ + 2 5 .1 “ + 1 8 .4 “ + 1 3 .5 “ + 16.5 “ - 9 .8 “ + 18.9 “ + 18.1 “ + 3 2 .8 “ + 2 2 .8 “ + + + + + + + + + + + + 0 .3 % 1.0 “ 0 .1 “ 0 .8 “ 2 .9 “ 0 .4 “ 0 .9 “ 1.5 “ 1.3 “ 0 .4 “ 2 .0 “ 0 .2 “ 0 .1 “ f Production (no sales), Sales T o country banks T o city banks T otal— 3 months $13,124,000 $15,360,800 $28,484,800 reporting banks Loans and discounts 6 8 3 5 4 3 5 5 3 3 3 36 7 5 t 3 5 3 6 10 4 127 t 1926 M a rch . . $ 920,000 $ 4,2 1 2,50 0 $ 5,1 3 2,50 0 3.510.000 6 ,0 4 2,50 0 2,532,500 February January 4,2 7 5,00 0 6.270.000 10,545,000 T otal— 3 months $ 7,727,500 $13,992,500 $21,720,000 Changes in year ended April 13, 1927 Changes in four weeks ended April 13, 1927 Number -$ + — + — + — + — + — — + + — + + — + + 79 159 271 160 131 405 32 161 173 116 283 690 8 1,735 41 695 54 392 455 64 + 1,920 Invest ments $ and Deposits * Loans discounts — + + — + 4+ + — + + — + + + + 23 311 60 732 163 84 193 76 121 399 384 6,695 331 1,401 455 736 232 71 190 104 - 8,339 - — — — — + + — + + + — — — — + — — Total 1927 M a rch . . $ 4,735,000 $ 3,1 4 3,30 0 $ 7,8 7 8,30 0 9,8 2 2,50 0 5,405,000 February 4.417.500 6,8 1 2,50 0 10,784,000 January 3.971.500 Commercial paper. Commercial paper sales by six dealers in the first three months o f this year have much exceeded sales in the same period last year. Sales in March did not equal those in Febru ary, but surpassed those of March, 1926, because of more active purchasing by Allentow n............................. Atlantic C ity ....................... C am den................................ Chester.................................. E aston .................................. Harrisburg........................... H azleton............................... Johnstow n........................... Lancaster............................. Lebanon............................... N orristown........................... Philadelphia......................... R eading................................ Scranton............................... T ren ton ................................ W ilkes-Barre....................... W illiam sport....................... W ilm ington......................... Y o r k ...................................... Others................................... Includes Camden area. Totals 1927 Apr. 13 $457,277,000 $491,440,000 $948,717,000 Mar. 16 464.983.000 484.323.000 949.306.000 1926 Apr. 14 459.660.000 484.628.000 944.288.000 Banking changes in cities of toe Philadelphia Federal Reserve District (ooo’s omitted in dollar figures) t +$ + — — + — 117 31 393 4 85 931 259 267 129 226 354 1,891 40 537 1,204 1,336 155 1,710 561 34 726 818 +$ — 715 + 2,390 1,748 + 299 + 365 + 120 + 193 600 + 202 + 254 + — 13,380 680 + — 224 5,986 + 1,230 + 731 + 5,441 + 512 + 924 + + 7,788 Invest ments -$ + + + + + + + + + + + + 799 408 3,237 142 1,210 186 353 1,002 367 809 828 25,425 634 2,535 1,216 2,246 222 321 684 322 + 33,938 Deposits * 4"$ — + + + + + + + + + + + + + + + + + + 567 1,580 5,395 1,600 593 652 742 544 711 724 524 5,400 1,724 4,455 2,623 2,998 1,029 4,943 1,103 1,527 + 36,274 * Net demand and time deposits. t 4 banks in comparison with year ago. J 126 banks in comparison with year ago. Page Three Comparison of net sales RETAIL TRAD E Philadelphia Federal Reserve District March, 1927, with March, 1926 All reporting stores..................... - - 9 .0 -1 1 .5 - 2 .0 - 6.1 —11.6 — 7 9 -1 5 .9 - 2 .8 - 3 .3 - 0 .4 —12.4 -1 6 .2 W om en’s apparel stores........ Credit stores................................ 9 .1 % “ “ “ “ “ “ “ “ “ “ “ “ Jan. 1 to March 31, 1927, with Jan. 1 to March 31, 1926 with March 31, 1926 -5 .1 % - - 2 .1 — 1.1 - 4 .4 + 10.4 + 11.2 —11.7 + 7 .3 + 9 .5 + 7 .5 + 19.0 + 1 0 .3 + 1 0 .3 0 .4 % “ “ “ “ “ “ “ “ “ “ “ “ with Feb. 28, 1927 1926 Collections during month compared with year ago + 1 1 .9 % 0 .79 0.76 + 1 0 .9 % + 3 .7 % + 5 .7 % + 1 1 .9 + 12.6 + 1 0 .3 + 1 2 .8 + 8 .2 4 -3 0 + 1 5 .9 + 18.5 + 18.1 + 2 0 .2 + 1 4 .7 + 9 .4 0 .7 9 0.84 0 .6 6 1.02 0 .67 0 .7 0 0 .6 3 1.42 1.47 1.20 0.64 0.63 0 .7 5 0 .7 8 0 .6 8 1.00 0.64 0 .69 0.57 1.38 1.46 1.05 0.59 0.59 + 8 .4 “ + 2 .5 -1 6 .7 + 8 .4 + 10.1 + 6 .2 “ “ “ “ “ + + + - 7 .9 0 .7 9 .6 8 .4 1 .6 “ “ “ “ “ + 6 .2 + 10.5 + 1 1 .0 + 8 .6 + 6 .9 + 3 .2 “ “ “ “ “ “ - 1 .6 + 1 0 .2 + 8 .5 + 2 0 .4 -1 0 .2 - 1 .4 “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ gained about 11 per cent over the volume of a year earlier. Collections, too, were more active, the only marked decline be ing in shoes. W H O LESALE TRADE Trading at wholesale continues at a fair rate and sales generally are somewhat larger than those of four weeks ago. R E T A IL T R A D E Preliminary reports on retail sales in this district during the four weeks ended April IS are divided between those show ing greater volume o f sales and those registering smaller business than in the same period of last year. Prices, while in some cases below last month’s level, remain generally unchanged. Owing partly to the fact that Easter in 1926 was about a fortnight earlier than this year, March sales by reporting firms declined about 9 per cent from the total of a year before, and the volume of retail business in the first quarter o f this year was 5 per cent under that for the same period of 1926. As shown by the accompanying table, large decreases are reported by department and men’s ap parel stores in Philadelphia; shoe and credit houses also registered pronounced declines. The greatest improvement is noted in the sale o f silverware and jewelry, leather goods and luggage, women’s coats, silk underwear, juniors’ and girls’ ready-to-wear, furniture and bedding, musical instruments and radio; whereas the largest losses occurred in woolen and cotton dress goods, neckwear and veilings, handkerchiefs, men’s cloth ing and furnishings, boys’ wear, women’s suits and dresses, millinery, knit under wear, toys and sporting goods. Total stocks at the end o f March were slightly under those on the same date of last year, although supplies held by ap parel, shoe and credit stores were notice ably heavier. The rate o f turnover since January 1 has not been as rapid as that in the corresponding period of 1926. Re ceivables at the end of the month increased nearly 4 per cent and outstanding orders Accounts receivable at end of month compared with year ago March 31, 1927 - 6 .0 “ -8 .5 “ + 1 .2 “ + 0 .2 “ -5 .7 “ —3 3 “ -8 .8 “ + 4 .1 “ + 4 .1 “ + 3 .9 “ -1 .6 “ - 0.1 “ city banks. The sales of six dealers are summarized on page 3. Based on the reports o f four dealers, 90 per cent o f the sales in March were made at 4 or 4 % per cent. The per centage at these rates was somewhat higher in February, but in March, 1926, no sales were reported at as low as 4 per cent, and the bulk was at 4 % per cent. Page Four 1927 Outstanding orders at end of month compared with year ago Rate of turnover Jan. 1 to March 31, Department stores...................... outside Philadelphia............... Apparel stores.............................. Comparison of stocks + 1 1 .1 “ + 5 1 .8 “ + 5 1 .8 “ March sales were about 24 per cent above the February volume but were more than 2 per cent under those in the same month of last year. Principally because Easter this year occurred about two weeks later than in 1926, business in drygoods, shoes and jewelry during March was smaller than a year before. Sales o f drugs, hardware and paper also decreased, but those of groceries and electrical supplies gained over the total for March, 1926. W ith the exception of drugs and jewelry, stocks at the end of March were lower than those on the same date of last year, and accounts outstand ing also were smaller in all but two lines. The ratio o f accounts outstanding to sales in March was about 15 per cent higher than that of a year earlier. Col lections, while greater than in February, did not come up to the total of March, 1926. EM PLOYM ENT W h o le s a le t r a d e i n g r o c e r ie s i n t h i s d i s t r i c t d u r in g t h e p a s t th r e e y e a rs h a s fo llo w e d th e g e n e r a l t r e n d o f s a le s i n t h e U n it e d S t a t e s . P r ic e s h a v e d e c l in e d a l m o s t s t e a d i ly s i n c e t h e l a t t e r p a r t o f 1925 a n d i n M a r c h w e r e t h e l o w e s t s i n c e t h e f a l l o f 1924. Source: Federal Reserve Bank of Philadelphia. Shoes, groceries, hardware, drygoods and paper show the greatest increase, while several jewelry and electrical supplies firms report declines. Orders for quick delivery predominate. Prices remain un changed, except for some declines in elec trical supplies, hardware and groceries. W HOLESALE TRADE Philadelphia Federal Reserve District Boots and sh oe s... D ru gs..................... D ry g o o d s ............. Electrical supplies G roceries............... H ardware.............. Jewelry................... P aper...................... Net sales, Mar., 1927, com pared with Mar., 1926 Feb., 1927 -1 4 .1 % - 8.1 “ -1 2 .7 “ + 15.4 “ + 1 .9 “ - 0.1 “ - 3 .7 “ - 3 .4 “ + 5 1 .3 % + 16.2 “ + 3 9 .5 “ + 4 .8 “ + 1 7 .2 “ + 4 0 .8 “ + 2 0 .8 “ + 1 8 .6 “ The industries in which the largest decreases occurred from February to March were iron and steel forgings, g e n e r a l construction, and explosives. Among the industries reporting the greatest increase in activity were the manufacture of automobiles, bricks, tile and terra cotta, leather products, and rubber tires and goods. Street and high way construction, as well as the erection of buildings, also showed quite a large increase. O f the 866 industrial establishments re porting employment and wage figures, 494 Stocks, Mar. 31, 1927, compared with Accounts out standing, M ar. 31, 1927, compared with Mar. 31, Feb. 28, 1927 1926 Mar. 31, Feb. 28, 1927 1926 - 0 .6 % + 2 6 .0 “ -3 1 .7 “ - 1.4 “ -1 2 .6 “ - 3 .8 “ + 19.5 “ - 5 .5 “ - 1 .9 % - 7 .3 “ - 7 .9 “ -1 3 .5 “ - 5 .1 “ + 0 .2 “ - 1 .8 “ + 1 .5 “ + 3 .2 % + 1 .0 “ - 1.7 “ - 0 .4 “ - 3 .0 “ + 1 .6 “ + 3 5 .5 “ + 0 .4 “ + 8 .9 % - 0 .3 “ + 10.9 “ - 3 .7 “ + 0 .3 “ + 1 1 .3 “ + 1 .2 “ + 4 .9 “ Ratio of ac counts out stand ing to sales Mar., 1927 Mar., 1926 Feb., 1927 2 64 .2% 140.7 “ 2 3 2 .8 “ 133.9 “ 107.4 “ 173.4 “ 380.1 “ 135.8 “ + 1 .0 % - 7 .4 “ - 8 .7 “ -1 6 .2 “ + 2.0 “ - 4 .2 “ -2 3 .4 “ + 2 .6 “ + 1 5 .9 % + 7 .9 “ + 7 .5 “ . - 8 .5 “ + 1 2 .9 “ + 8 .8 “ - 9 .6 “ + 1 1 .3 “ Collections M arch, 1927, compared with plants also reported the number of man hours worked. These firms showed an increase o f .3 per cent in the number of hours worked and a gain of .2 per cent in hourly earnings. E L E C T R IC P O W E R Consumption o f electric power by in dustries and street railroads in the Phila delphia Federal Reserve District during March increased materially over the Feb ruary volume and was 6.9 and 2.4 per cent, respectively, greater than in March o f last year. Purchases by municipalities also increased. Sales of electricity for light ing purposes, however, declined seasonally from February’s totals, but exceeded those of a year earlier by more than 8 per cent. Production of electricity by reporting central stations was 9.3 per cent greater in March than in February and 8.4 per cent greater than in March, 1926. ELECTRIC PO W E R Philadelphia Federal Reserve District 13 systems No. of plants report ing All industries (4 6 ).............................. 866 295,974 + 0 .2 $ 7 , 904,301 - 0.2 $ 26.71 M etal manufactures: Automobiles, bodies, and p a rts... Car construction and repair.......... Elec, machinery and apparatus .. Engines, machines, mach. tools .. Foundries and machine shops. . . . Heating appliances and apparatus Iron and steel blast furnaces........ Iron and steel forgings................... Steel works and rolling m ills......... Structural iron w orks..................... Misc. iron and steel p roducts. . . . Shipbuilding..................................... Hardware.......................................... Non-ferrous m etals......................... 289 18 20 20 38 58 16 11 11 37 15 25 3 8 9 154,769 10,617 22,239 7,142 11,444 9,356 4,120 13,400 3,017 41,833 3,797 19,085 6,138 1,739 842 + - 0.3 3 .7 1.7 5 .6 1.5 1.3 1.8 1.1 0 .9 0.1 2 .4 0 .0 4 .1 0 .7 0 .5 4 , 490,080 318,227 651,341 174,546 340,322 277,215 122,673 362,265 73,042 1,276,582 103,165 562,114 163,125 45,076 20,387 + 0 .8 7.7 4.1 6 .2 3 .5 0.4 0 .5 6 .6 10.8 2 .5 5 .5 1.6 0.8 4 .2 4.7 29.01 29.97 29.29 24.44 29.74 29.63 29.78 27.03 24.21 30.52 27.17 29.45 26.58 25.92 24.21 0 .5 3 .9 - 2 .5 - 0 .7 - 2 .0 - 1.6 - 1.2 - 5.6 - 9 .9 + 2 .5 - 3.2 + 1.6 - 4 .7 - 3 .5 - 5 .2 Textile products: Carpets and rugs............................. C lothing............................................ Hats, felt and oth er........................ Cotton good s.................................... Silk goods.......................................... W oolens and worsteds................... Knit goods and hosiery.................. Dyeing and finishing textiles........ 175 10 34 5 16 43 15 42 10 59,256 3,107 5,441 4,470 4,6 9 5 18,439 6,519 14,487 2,098 + + + + + 0.8 1.4 2.3 0.3 1.8 1.9 0 .8 0.8 3 .5 1 , 331,526 80,182 103,302 119,383 113,662 344,831 145,104 370,826 54,236 1 .0 4.0 1.4 1.3 2 .7 - 0.5 - 1.9 + 0.5 - 2 .4 22.47 25.81 18.99 26.71 24.21 18.70 22.26 25.60 25.85 + - - 1.8 2 .6 0 .8 1.0 4 .4 2 .4 2 .7 0.3 5 .7 Foods and tobacco: Bakeries............................................ Confectionery and ice cre a m .. . . » Slaughtering and meat packing . . Cigars and to b a cco ......................... 105 32 21 13 39 21,574 4,643 3,603 2,013 11,315 - 2.3 0 .0 4 .7 1.4 2 .5 448,599 135,920 82,065 57,110 173,504 + 0 .8 + 1.9 - 2.1 - 1.2 + 2 .0 20.79 29.27 22.78 28.37 15.33 + + + + + 3.1 1.9 2 .8 0 .2 4 .5 Building materials: Brick, tile, and terra cotta products Cem ent.............................................. Glass.................................................. P ottery.............................................. 67 26 13 24 4 20,757 4,356 7,235 8,265 901 + + + + + 4 .5 7 .7 3 .8 3 .6 2 .7 587,784 112,945 222,870 227,257 24,712 + + + + + 4.3 6.5 3 .0 4 .7 2 .2 28.32 25.93 30.80 27.50 27.43 - 0 .2 - 1.1 - 0 .7 + 1.0 - 0.5 Construction and contracting: Street and highway......................... General.............................................. 35 17 3 15 3,376 885 87 2,404 - 9.2 + 7 .5 + 70.6 - 15.4 96,435 27,455 1,914 67,066 + + - 1.9 5.6 17.9 5 .0 28.56 31.02 22.00 27.90 + 8-1 - 1.9 - 30.9 + 12.3 Chemicals and allied products: Chemicals and drugs...................... E xplosives......................................... Paints and varnishes....................... Petroleum refining.......................... 39 22 3 9 5 10,004 1,396 553 1,076 6,979 + + + + 2.6 1.3 2 .3 7.4 2 .5 285,911 36,948 13,431 29,291 206,241 + 2.4 - 0.2 - 11.6 + 5.3 + 3 .6 28.58 26.47 24.29 27.22 29.55 - 0 .1 - 1.5 - 9 .5 - 1.9 + 1.0 Miscellaneous industries: Lumber and planing mill products Furniture.......................................... Leather tanning............................... Leather products............................. Boots and shoes............................... Paper and pulp products............... Printing and publishing................. Rubber ti.'es and g o o d s .................. Novelties and jew elry..................... 156 28 21 17 8 23 18 35 3 3 26,238 3,919 1,966 5,628 633 4,159 3,955 3,713 857 1,408 + + + + + + + 0.3 0 .4 0 .8 1.9 1.9 1.3 1.1 1.8 4 .4 4 .3 663,966 83,823 46,501 144,794 13,441 81,366 104,986 130,348 26,017 32,690 + + + + + + + 25.31 21.39 23.65 25.73 21.23 19.56 26.55 35.11 30.36 23.22 + + + + + + + - Rated generator capacity.......... Generated output....................... H ydro-electric......................... Steam ........................................ Purchased................................ Sales of electricity....................... Lighting.................................... M unicipal............................. Residential and commercial P ow er........................................ M unicipal.............................. Street cars and railroads .. Industries.............................. All other sales.......................... March 15 1927 Feb., 1927 + 7 .7 % + 8 .4 “ + 5 2 .6 “ + 1 .6 “ + 4 1 .5 “ + 7 .6 “ + 8 .3 “ + 5 .9 “ + 8 .7 “ + 5 .9 “ + 1 1 .4 “ + 2 .4 “ + 6 .9 “ + 2 6 .5 “ 0 % + 9 .3 “ + 1 8 .8 “ + 6 .6 “ + 18.6 “ + 1.1 “ -1 0 .0 “ - 2 .2 “ -1 1 .1 “ + 3 .6 “ + 0 “ + 4 .7 “ + 3 .4 “ + 9 .9 “ Per cent change from month ago + + - + + + + + Per cent change from month ago March 15, 1927 + + + - - 0.4 2 .8 2.1 3.1 5 .7 2.1 0.1 3.5 5.4 3.0 Per cent change from ' month ago March 15, 1927 - 0 .3 + - - 0 .2 2 .4 1.3 1.2 3 .7 0 .7 1.1 1.7 1.0 1.2 March, 1927, change from AUTOM OBILE TRADE Philadelphia Federal Reserve District 14 distributors March, 1927, change from March, 1926 Average weekly earnings— week ended E M PLO Y M E N T AND W AG ES in Pennsylvania A U T O M O B IL E T R A D E Spring trading in automobiles in Phila delphia continues very active. Retail sales by 14 distributors of this district were more than 77 per cent greater in March than in February and exceeded those of a year before by nearly 35 per cent in number and 25 per cent in value. The total o f wholesale business increased about 56 per cent over that of the previ ous month and was 62 per cent in num ber and 42 per cent in value in excess of sales in March, 1926. The greatest im provement in sales, both at wholesale and retail, occurred in the cars selling under $1,000 and over $2,000. While the me dium priced automobiles show substantial gains over the February total, they showed a decline in number and value from the volume o f a year earlier. The demand for used cars, however, was much greater in March than either in the pre ceding month or a year ago. This is also true of automobiles sold on deferred pay ment. As a result o f the large turnover, stocks of new cars at the end of March were smaller than those on the same date a month previous and last year. Stocks o f used cars, on the other hand, while lower than at the end of February, were materially heavier than at the end o f March, 1926. T otal weekly wages— week ended Number of wage earners— week ended March, 1926 February, 1927 Number Value Sales, new cars, wholesale................................................... Cars under $1,000............................................................ Cars $1,000 to $2,000...................................................... Cars over $2,000............................................................... + 6 1 .6 % + 1 0 0 .2 “ 0 .5 “ + 9 5.7 “ + 4 1 .8 % + 9 6 .8 “ - 5 .7 “ + 5 3 .5 “ + + + + Sales, new cars, at retail...................................................... Cars under $1,000............................................................ Cars $1,000 to $2,000...................................................... Cars over $2,000............................................................... + 3 4.9 “ + 4 0 .5 “ - 2 0 .2 “ + 9 .2 “ + 2 4 .9 + 4 0 .6 -2 4 .0 - 0 .1 “ “ “ “ + 7 7.2 + 76.1 + 6 3.8 + 1 1 0 .0 Stocks of new ca rs................................................................ Cars under $1,000............................................................ Cars $1,000 to $2,000...................................................... Cars over $2,000............................................................... + - + 2 .4 -1 1 .3 + 2 6 .0 - 9 .8 “ “ “ “ 6 .8 + 3 .2 - 10.7 - 2 1.4 Sales of us 3d cars.................................................................. Stocks of used cars............................................................... Retail sales, deferred paym ent.......................................... + 4 7 .6 “ + 17.5 “ + 18.3 “ 3 .0 13.1 13.1 7 .8 “ “ “ “ Value Number + 2 8 .4 “ + 2 1 .2 “ + 3 .7 “ 5 6 .4 % 6 0.4 “ 4 1 .4 “ 7 8.4 “ + + + + 5 6 .6 % 6 0.8 “ 4 2.9 “ 7 4 .8 “ “ “ “ “ + + + + 7 7.4 7 5.7 5 0.3 9 8.7 “ “ “ “ “ “ “ “ - 10.9 + 4 .6 - 10.3 - 2 0.4 “ “ “ “ + 5 2.4 “ 5 .7 “ + 9 8 .5 “ + 50.7 “ 1.2 “ + 1 5 8 .0 “ Page Five The largest increase over a year ago oc curred in the output of hydro-electric plants. Percentage changes are given in the accompanying table. IR O N A N D S T E E L Manufacturing activity in industries making various iron and steel products in this district continues at about the same moderate rate as that prevailing in the month prior to March 20. The de mand is fair, although a number o f re porting firms note recessions in sales. M E T A L INDUSTRIES P E N N S Y LV A N IA 150 during the first two months o f this year, prices o f pig iron have strengthened somewhat, the “ Iron A ge” price index standing at $19.21 a ton on April 19 as against $19.04 a month before and $20.96 a year ago. Steel foundries. The volume of pro duction, shipments and unfilled orders was somewhat smaller in March than in the preceding month, although the value of shipments increased nearly 22 per cent. Compared with a year ago, both the physical and dollar volume o f shipments was greater, but production and unfilled orders were considerably smaller. Stocks of pig iron and scrap at the end of March were lighter, while those o f coke were heavier than on the same date last year. Details fo llo w : 125 WA6 100 PAYMENTS Mk___ £ Change from March, 1926 Change from Feb., 1927 C apacity............... 12,490 tons 0 P roduction........... 7,512 “ -1 9 .9 % + 8 .2 “ Shipments............ 6,484 “ Value................. $1,165,801 + 17.1 “ Unfilled orders * . 3,279 tons —5 1.6 “ Value * ............. $584,506 -4 7 .2 “ Raw stock: Pig iron ............. 1,808 tons - 4 7 . 2 “ Scrap................. 8,676 “ - 8 .8 “ C o k e .................. 1,713 “ + 11.0 “ 0 - 8 .7 % - 0 .4 “ + 2 1 .7 “ -1 7 .1 “ -1 3 .8 “ Steel foundry operations EMPLOYMENT March, 1927 75 IOO • 1923-1 >25 AVERAGE 50 1924 1925 1926 1927 A c t i v it y i n t h e m e t a l i n d u s t r ie s o f P e n n s y l v a n ia , a s m e a s u r e d b y e m p l o y m e n t a n d w a g e p a y m e n t s , h a s b e e n a t a f a ir l y h i g h r a t e d u r i n g t h e p a s t f if t e e n m o n t h s a s c o m p a r e d w i t h t h e p r e v i o u s y e a r a n d a h a l f . L a t e ly , h o w e v e r , e m p l o y m e n t h a s d e c l in e d s o m e w h a t . Source: Federal Reserve Bank o f Philadelphia. * Figures of one plant omitted. Plant operations average from 70 to 75 per cent o f capacity. Both employment and wage payments in Pennsylvania dur ing March decreased less than one per cent from the February totals, but man hours worked in reporting plants rose slightly. Daily production of pig iron in this district in March was the greatest since last April but was nearly 5 per cent under that of March, 1926, which was the peak month of that year. Simi larly, the output o f pig iron in the coun try exceeded the volume shown for any month since April, 1926, and was sur passed only twice in the past eleven years in the daily total for March. Production of steel ingots during March— 168,867 tons a day—was the greatest on record. This increase was probably attributable to a desire of ingot procedures to have reserve stocks of crude steel against a possible shortage resulting from the coal strike in the soft coal union field. Com parisons o f totals fo llo w : In gross tons (000’s omitted) March, 1926 Feb., 1927 - 8 .2 “ + 7 .3 “ + 4 .6 “ March, 1927 Iron foundries. March showed a pro nounced gain over February in produc tion, shipments and unfilled orders. Com pared with a year ago, unfilled orders in creased more than 9 per cent, but the total output and shipments decreased. Stocks of pig iron and scrap at the end of March were smaller while supplies of coke were much greater than on the same date of last year. Changes are given below : Change from March, 1926 Change from Feb., 1927 0 C apacity............... 12,076 tons Production........... 5,921 “ - 7 .0 % 708 “ - 3 .8 “ Malleable iro n . - 7 .4 “ Gray iron ......... 5,213 “ J obbing........ 3,850 “ - 1 .6 “ F o r furth er -2 0 .8 “ m fr............. 1,363 “ - 4 .2 “ Shipments............ 5,037 “ $692,569 - 2 .3 “ V alue................. Unfilled orders. . . 4,801 tons + 9 .2 “ $848,024 + 2 0 .2 “ Value............... Raw stock: Pig iron ............. 6,865 tons - 8 .0 “ - 1 .5 “ Scrap................. 3,126 “ + 2 7 .4 “ C ok e.................. 2,499 “ 0 + 1 5.1 % + 4 4 .8 “ + 12.0 “ + 16.9 “ Iron foundry operations March, 1927 + 0.1 + 2 0 .5 + 19.7 + 1 1 .2 + 1 7 .3 “ “ “ “ “ + 10.5 “ - 2 .8 “ + 1 5 .1 “ cite prices in noticeably below that o f a year ago. Since April 1 colliery opera tions have increased materially; the out put of anthracite in the first fortnight o f that month was about 48 per cent greater than in the previous two weeks. The production of anthracite during the coal year— from April 1, 1926 to March 31, 1927—totaled 92,481,000 net tons, a figure which has been exceeded only three times during the past fourteen years. Un doubtedly such heavy production was due largely to the shortage caused by the strike o f 1925-1926 when only 51,430,000 tons were mined. Labor supply at present is adequate. Bituminous. Conditions in the soft coal industry are quiet, the demand being less active than it was four weeks ago. Shipments, as measured by freight car loadings, have fallen off materially since April 1. Reporting operators state that spot prices have decreased from last month’s levels and are somewhat below contract quotations. According to the “ Coal A ge” price index, however, average quotations increased from $2.06 a ton on March 21 and $1.92 on April 19, 1926, to $2.11 on April 18, 1927. Owing largely to the suspension of min ing which began on April 1 in many of the union fields, the production of bituminous coal in the two weeks ended April 16 declined to 16,272,000 tons, or 33.4 per cent, from 24,427,000 tons in the previous two weeks. B U IL D IN G Construction o f commercial, industrial and residential buildings in this district continues active. W age payments and employment in Pennsylvania during March increased 6 and 8 per cent, re spectively, over the February totals, al though the gain in the same period last year was greater. Contemplated expen diture under 3,267 permits calling for 4,741 operations in 16 cities o f this dis trict totaled $19,097,461 in March as against $21,022,232 in the same month of last year. Contracts awarded during March were the greatest on record. Com parisons fo llo w : Contracts awarded (000’s omitted) March, 1925 March, 1926 $ 48,902 25,219 $ 45,719 23,127 $ 52,351 21,996 491,011 226,928 597,879 262,644 620,738 250i078 March, 1927 Philadelphia Fed. Res. Dis. R esidential........ United States: Production in the U. S.— P ig iron ......................... Steel ingots................... Unfilled orders— U. S. Steel C orp........... 3,442 4,488 2,941 3,831 3,483 4,559 4,380 3,597 3,553 COAL Source: F. W . Dodge Corporation. Quotations for finished steel have con tinued unchanged since March 1 and the present average— 2.367 cents a pound— is the lowest shown for any week since the summer o f 1922. Following a decline Page Six Residential........ Anthracite. Stimulated somewhat by lower prices and probably by the strike in the bituminous union fields, the mar ket for steam sizes, which is now active, has improved appreciably since April 1. The demand for domestic sizes, however, is only fair. The general level of anthra Building m a t e r i a l s . Reflecting greater spring activity in construction the market for building materials has improved substantially since the middle of last month. The demand for cement is exceptionally strong, orders for deliv- PO R TLAN D CEM ENT M ovement of flour and wheat at Port of Philadelphia* Flour (bbls.) Wheat (bus.) Receipts March, 1926.................... February, 1927............... March, 1927.................... 216,800 171,916 148,794 1,122,574 1,751,497 1,639,618 29,417 36,687 10,599 1,690,722 1,427,910 1,468,226 Exports February, 1927............... March, 1927.................... Stocks April 1, 1926................... March 2, 1927................. April 1, 1927................... 107,344 153,214 132,272 929,741 1,348,280 1,488,326 Source: Bureau of M ines, Department o f Commerce. * The Commercial Exchange of Philadelphia. ery within sixty and ninety days exceed ing greatly those o f last month and of a year ago. Increased buying o f paint, lumber and electrical supplies is also re ported, although total sales of the last two items do not compare favorably with the volume o f a year before. Prices are said to be firm, although several firms, particularly dealers in lumber, report some weakness. Compared with last month’s level, quotations remain un changed, except for slight declines in lumber and electrical supplies. At this time last year, prices o f building mate rials were about 5 per cent higher than at present. Collections generally are fair. Manufacturing activity shows marked seasonal gains, particularly in the output o f cement and paint, and these industries generally are utilizing from 85 to 90 per cent o f their machinery. Unfilled orders of reporting firms are sufficient to as sure production at this rate for about 45 days in lumber and paint and for nearly 5 months in cement. In Pennsylvania, employment, wage payments and man hours worked during March increased about 4 per cent over the February totals. Compared with a year before, however, employment and payrolls declined nearly 2 and 3 per cent, respectively. With the exception o f cement, stocks are moderate and are either stationary or decreasing. FLOUR The domestic demand for flour, which is only fair, does not compare favorably with that of four weeks ago. Exports from the Port o f Philadelphia also are somewhat smaller than in the month prior to March 20. Sales o f middlings, bran and other by-products, on the other hand, have increased since the middle of last month and exceed the volume of a year before. Flour mills in this district are working at an average rate of about 70 per cent of capacity. Prices o f flour, which have remained fairly stable since March 20, are about 19 per cent lower than those at this time last year. Stocks o f flour and wheat at local warehouses as well as receipts at and exports from the Port of Philadelphia are shown in the following table: T E X T IL E S Season ,’2 4 -’25 Visible supply at end of previous season (July 3 1 )................. Crop in sight on April 2 2 .............................. 952 1,125 2,279 14,116 15,170 17,426 15,068 16,295 19,705 3,184 4,003 5,942 11,885 12,293 13,763 T o ta l................... Visible supply on Apr. 2 2......................... W orld’s takings to April 2 2 ................... Season ’2 5 -’26 Season ’2 6 -’27 American cotton (thousands of bales) Source: The New York Cotton Exchange. W ool. Business in woolen and worsted yarns and piece goods is scarcely fair and sales, though larger in many instances, do not compare favorably with the vol ume o f a year before. Nor has there been much improvement in the demand for raw wool. In contrast to this situa tion, the foreign market for raw wool continues strong and prices are from 5 to 10 per cent above the February level, despite the fact that there was a material increase in the Australian clip. Domestic prices, on the other hand, have shown marked weakness since February 1; in fact, the disparity between prices of do mestic and foreign wools has been so pronounced that recently there has oc curred a considerable exportation o f for eign wool held in bond here, thereby re ducing domestic stocks. Quotations for finished goods continue fairly stable, al though they are from 5 to 10 per cent below the level o f a year ago. Collec tions generally aje satisfactory. Operations o f reporting plants making yarns and fabrics average about 70 per cent of capacity. While employment in Pennsylvania during March increased nearly one per cent over that in Febru ary, wage payments decreased almost 2 per cent, thus reflecting a slight recession in mill activity. A year before, the re verse was true: wage payments rose 4.5 Cotton. Business in cotton goods con tinues well sustained, although the market for cotton yarns has been rather quiet during the past four weeks. Sales and shipments of cotton fabrics are reported to have increased considerably since N o vember. Prices o f cotton yarns are a trifle higher than they were a month ago but average quotations for piece goods are slightly lower. Compared with a year ago, prices o f fabrics and yarns are 8 and 17 per cent, respectively, lower. Spot cot ton prices have remained fairly -steady since March 1, after rising a little dur ing each o f the preceding three months. Lately, however, spot prices have strengthened slightly. Collections are fairly prompt. Reflecting the increasing volume of business in finished goods, March con sumption of raw cotton in the country was the largest in history, exceeding the previous monthly record established in March o f last year by nearly 10 per cent. Operations o f cotton plants in this dis trict now average over 80 per cent of capacity. Employment in Pennsylvania was about 2 per cent greater in March than in February, but wage payments de creased nearly 3 per cent. Last year, on the other hand, payrolls were .2 per cent greater while employment was .1 per cent smaller in March than in February. Stocks o f finished goods are moderate and are a bit smaller than those on the same date last year. Cotton exports be tween August 1 and April 22 were about 37 per cent above the total for the corresponding pe riod of last year. The position of American cotton as of April D u r in g t h e fir s t q u a r t e r o f t h i s y e a r i m p o r t s o f r a w s ilk w e r e c o n s i d e r 22 is shown by a b ly a b o v e th e to ta l fo r t h e c o r r e s p o n d in g p e r io d o f t h e p a s t th re e y e a r s . I m p o r t s o f r a w w o o l w e r e m u c h s m a l le r , o w i n g c h i e f l y t o s t r o n g the f o l l o w i n g w o o l p r ic e s p r e v a ilin g a b r o a d . table: Source: Department o f Commerce and the Silk Association o f America. Page Seven per cent, while employment declined 1.2 per cent from the totals o f the previous month. Unfilled orders, though somewhat smaller than a month earlier, are suffi cient to assure production at the present rate for about fifty days. Stocks o f fin ished goods are from moderate to light, and in comparison with those on the same date o f last year, are smaller. Consump tion o f raw wool in this district during March was 10.8 per cent greater and in the country as a whole 18 per cent greater than in February. March imports of raw wool totaled 33,457,221 pounds as against 48,002,435 pounds in the same month of last year, a drop o f 30.3 per cent. Silk. Conditions in the silk industry in this district have improved since the middle of March, although the demand for finished goods is only fair. Nearly 80 per cent o f the current purchases are either for spot delivery or for shipment within the next two months. Quotations for silk goods remain fairly stable, Fair child’s price index showing only a slight fluctuation since the first o f the year. The average price of raw silk also shows very little change from the level prevail ing in February, although present prices are nearly 8 per cent below those o f a year ago. Manufacturers appear to be a trifle more active than they were at this time last year, plant operations averaging a' little over 80 per cent o f capacity. Em ployment in Pennsylvania during March increased nearly 2 per cent over the Feb ruary total, but wage payments and the total employe-hours decreased .5 and .3 per cent, respectively. In March, 1926, employment declined 6.4 per cent and payrolls 11 per cent from the totals of the month previous. Stocks o f finished goods, though somewhat heavy, are de creasing as compared with those of four weeks ago. Raw silk in storage at the end of March was the lowest since August, whereas March consumption o f raw silk was the greatest on record. Com parisons follow : R aw silk* (in bales) M ar., 1926 Feb., 1927 Mar., 1927 Im ports....................... S tocks.......................... M ill takings............... 31,930 35,948 39,400 33,991 43,758 42,860 38,600 33,116 49,242 * The Silk Association of America. Clothing. Manufacturers of clothing and furnishings have had a fairly good volume o f spring business, and are now working chiefly on orders for immediate delivery. Orders for shipments during the fall have not yet materialized to any large extent. Operations of clothing plants in this district average about 70 per cent o f capacity. Stocks are somewhat lighter than those on the same date last year. Prices continue fairly steady, there Page Eight being virtually no change since March 20. Collections are only fair. Floor coverings. A t the auction sale of carpets and rugs held by the A lex ander Smith and Sons’ Carpet Company during the week beginning April 1, the prices realized were slightly below those of last fall’s auction, but the total amount of sales, $8,048,264, was a record figure for these auctions. A fall price list, guaranteed until September 30, was issued shortly after the sale and the trade feels that it can proceed on the basis of a stabilized market until October. Our reporting firms say that business is fair or poor, with demand not so good as that o f a month and a year ago. Following a considerable increase in man ufacturing activity during the last half of 1926, as measured by wage payments, operations declined somewhat in the first quarter o f this year. Compared with the like period o f a year before, how ever, t o t a l payrolls were somewhat greater. Stocks o f finished goods are lighter than at this time last year. Prices are but little changed in the month, a few slight reductions being noted. Mills are operating at 55 per cent o f capacity, on the average, unfilled orders insuring plant activity for from two to three weeks. Manufacturers o f linoleums and felt base goods report a good demand for their product, with operations close to capacity and no changes in prices. Hosiery. A majority o f our report ing firms say the demand for seamless hosiery is poor, though a considerable number report increased demand in the month. Prices are, in general, unchanged, with a few decreases noted. Reporting plants have sufficient orders on hand to permit operations at current rates for one month. Stocks o f finished goods are smaller than those o f a month and a year ago. Demand for women’s full-fashioned hosiery is better than that o f a month ago while that for men’s full-fashioned is still said to be poor. Prices remain unchanged. Operations o f reporting plants average 91 per cent o f capacity, a slight increase over last month’s figure. Un filled orders will assure operations for an average period of two and a half months. Stocks o f finished goods are moderate but larger than those o f a year ago. PAPER The market for paper is fairly good, and prices continue unchanged. M ill ac tivity in this district is maintained at an average rate o f about 90 per cent of capacity and advance business is sufficient to assure production at this rate for nearly three weeks. Stocks o f both pulp and finished products are from moderate to light and are decreasing. are fairly prompt. Collections C O N F E C T IO N E R Y Owing probably to the fact that Easter this year was about a fortnight later than in 1926, business in confectionery since the middle of March has not equaled the volume o f a year before, and the market at present is only fair. Prices continue fairly stable and unchanged. Confectionery factories are working at about 70 per cent of capacity and un filled orders are sufficient to assure pro duction at this rate for only a little over two weeks. Both employment and wage payments in Pennsylvania declined dur ing March from February’s total, while in the same month last year there was an increase o f 3.3 per cent in payrolls. Stocks are moderate. Collections are fairly prompt. C IG ARS Business in cigars shows a slight im provement over that o f four weeks ago, but sales do not equal the volume at this time last year. Unfilled orders, which continue about the same as last month, are sufficient to enable cigar makers to use their machinery at the present rate for over a month. Stocks are not heavy and are a trifle below those o f a year earlier. Prices generally remain firm and unchanged. Collections are fair. LEATHER The packer hide market is strong, with prices advancing in spite of resistance on the part o f tanners to further increase. The market for goatskins is quiet, prices having shown some slight decreases in the month. Demand for black kid is only fair or poor, with some decrease from that o f last month. The fair demand for colored kid does not equal that o f a month ago. Unfilled orders are smaller. The demand for sole leather is better than that o f last month. Shoes. Reports o f shoe manufacturers show that demand is equally divided be tween good and fair while a few declare it poor. It has increased slightly over that o f a month and a year ago. P ro duction for the month o f March, in this district, was 1,621,782 pairs, as compared with 1,373,113 pairs in February. Total production for the United States for March was 27,162,010 pairs, as compared with 23,793,490 in February. Our re porting firms state that stocks of finished goods are moderate and are somewhat lighter than those carried a month or a year ago. Unfilled orders are smaller than those of last month, assuring operations, on the average, at 71 per cent o f capacity for about three weeks. All report prices firm and unchanged.
@FedFRASER