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BUSINESS AND F IN A N C IA L C O N D IT IO N S IN THE THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT NOVEMBER I, 1922 By RICHARD L. AUSTIN, Federal Reserve Agent and Chairman FEDERAL RESERVE BANK of PHILADELPHIA GENERAL SUMMARY CONTENTS PAGE A griculture .......................... Autom obiles ........................ Bankers’ acceptances Building ............................... Cement ................................. C ig a r s ..................................... C lo t h in g ................................. Coal ....................................... Coal, anthracite .................. Coal, bituminous ............... Coke ....................................... Commercial paper ............. Cotton goods ...................... Cotton, r a w .......................... Cotton yarns ...................... Financial conditions ......... F loor coverings .................. F lour ..................................... Foreign exchange ............. H ides and s k i n s .................. H osiery ................................. Iron and steel .................... Leather ................................. Lumber ................................. M oney rates ........................ Paint ..................................... Paper ..................................... Paper boxes ........................ Plum bing supplies ............. P ottery ................................... Retail trade ......................... Savings deposits ............... Securities .............................. Shoes ....................................... Silk g o o d s ............................. Silk, raw ................................. T obacco, leaf ...................... U nderw ear .......................... W holesale drugs ............... W holesale drygoods ........... W holesale g r o c e r ie s ........... W holesale hardware ........... W holesale s h o e s .................... W holesale t r a d e .................. W o ol, r a w ........................ W oolen and worsted goods W oolen and worsted yarns 25 12 5 12 13 24 18 14 14 15 15 4 16 15 16 4 21 10 6 22 20 11 22 12 4 13 23 23 14 14 6 3 21 19 19 24 20 8 8 9 8 8 8 18 17 17 H A T the movement of business is definitely up ward is no longer open to question. The im provement during the past few months has been consistent and rapid, and although much of the better ment during the last six weeks is attributable to seasonal T influences, the larger part, by far, represents funda mental business recovery. Evidence of this is found in the gains in retail and wholesale trade, in the larger demand for almost all raw materials and manufactured products, in the expansion of the volume of production and the resultant increase in employment, in the steady gain in car loadings, and in the rise in the wholesale commodity-price index numbers. The latest available reports on retail trade indicate that the volume of sales is steadily growing. Sales by 486 department stores throughout the United States that make reports to the twelve Federal Reserve Banks, were 11.9 per cent larger in September, 1922, than in the same month of the previous year. In the Philadelphia district, the increase in retail trade was 15.3 per cent. Mail order houses and many of the chain stores also reported gains in the volume of business. Wholesale trade likewise has been active, and in most cases sales in September were larger than in August of this year and in September, 1921. No statistics are as yet avail able on October’s business, but current reports from wholesalers point to further betterment. Manufacturers report that business during October has been at least equal to, and in most cases, better than during September. Steel products have been sold in large quantities. But the demand for pig iron has fallen off slightly in anticipation of lower prices, and prices at the present time have declined somewhat as a result of the heavy importation of foreign iron and of increased production in this country. No decrease has occurred in sales of building materials, although a falling off is normally to be expected at this time of the year. This is due to the fact that the unseasonably warm weather has permitted the continuance of out door construction. Paint manufacturers report a brisk demand. Brick manufacturers are still oversold, and the demand for cement is excellent. Pottery and SYNOPSIS OF BUSINESS CONDITIONS COMPILED AS OF OCT. 23, 1922 THIRD FEDERAL RESERVE DISTRICT R B D u s in e s s F e m a n d P in is h e d r ic e s a w m a t e r ia l M E R C H A N D IS E or S IT U A T IO N C o l l e c t io n s STOCKS S u p p l y P r ic e Automobiles Cement Good Very good Declining Firm Normal Light Adequate Adequate Advancing Firm Cigars Very good Firm Light Plentiful Advancing Higher Fair to good . Good Good to very good Unchanged Moderate Plentiful Coke Fair and improved Excellent Fair Good Firm Declining Declining Increasing Declining Cotton goods Satisfactory Advancing Plentiful Advancing Good Cotton yarns Higher Imported drugs higher Plentiful Higher Good Drugs, wholesale Good Fair and improved Light Moderate Light Heavy but decreasing Normal Increased Easily obtainable Some advances Fair Dry goods, wholesale Fair Higher Light but increasing Plentiful Advancing Slow Floor coverings Flour Excellent Good Higher Firm Adequate Adequate Higher Stronger Good Fair Groceries, wholesale Fair Hardware, wholesale Hosiery, full-fashioned Clothing Coal, anthracite Coal, bituminous Improved Light Light Light but Some advances increasing Advancing Moderate Plentiful Some advances Slow Adequate Advancing Fair Unchanged Normal Adequate Higher Fair to good Unchanged Normal Adequate Higher Fair to good Declining Light Heavy but decreasing Pleavy but decreasing Heavy but decreasing Moderate Normal Normal Adequate Declining Plentiful Higher Good Moderate Higher Good Adequate Higher Good Adequate Adequate Plentiful Firm Advancing Advancing Fair Fair Pair to good Moderate Adequate Higher Fair to good Advancing Firm Firm Higher Moderate Moderate Moderate Normal Adequate Adequate Adequate Adequate Advancing Firm Higher P'air to good_ Pair to good Firm Normal Adequate Some advances Fair to good Iron and steel Good Fair and improved Fair and improved Good Leather, belting Good Higher Leather, heavy Good Higher Leather, upper Good Pligher Lumber Paints Paper Good Good Good Paper boxes Good Firm Firm Advancing Firm and advancing Plumbing supplies Shoes, retail Good Good Excellent Good Fair and improving Shoes, wholesale Good Firm Normal Adequate Higher Silk Tobacco Underwear, heavy weight Underwear, light weight Woolen goods Worsted goods Woolen yarns Fair Good Firm Higher Moderate Adequate Higher Fair Firm Normal Adequate Higher Good Fair Firm Normal Adequate Higher Good Good Good Fair Fair and improved Strong Strong Higher Moderate Light Light Plentiful Adequate Adequate Higher Higher Strong P'air Fair Improved Higher Light Adequate Strong Improved Hosiery, seamless Pottery Shirts Shoes, manufacture Worsted yarns Higher Slow P'air to good Fair and improving_ Satisfactory Good 2 plumbing supplies likewise are selling well, and lumber continues in great request. The warm weather, how ever, has interfered with the sale of domestic sizes of anthracite. Sales, of course* are still fairly large, but in view of the small supplies in the hands of consumers, it was anticipated that they would be much heavier. The demand for the steam sizes is light, with the result that prices of these have eased off some what. Production of anthracite is now reported to be above normal, which means that the return to maximum production has been accomplished in far less time than was estimated when the strike ended. The supply of cars being furnished to anthracite oper ators is good, but production of bituminous coal is seriously hampered by a shortage of cars. In many, mines, indeed, operations average less than 40 per cent of capacity on this account. Although the labor situa tion in the bituminous industry generally is satisfactory, there is still some difficulty in a few of the Pennsyl vania mines. The demand for textiles is very much better than it was last month, in practically all lines. Satisfactory orders for cotton goods are being received, cotton yarn sales to carpet mills and dress goods manufacturers are large, and the raw cotton market, with the removal of the selling pressure from Texas and the apparent settlement of the Near East difficulties, is displaying great strength. The raw wool market is especially active. Prices are rising, and large sales are re ported. It is significant that most of these are being made to mills and very few to dealers for speculative purposes. Woolens and worsted yarns are selling well at advanced quotations, and cloth also is in larger re quest than it has been for some time. The silk in dustry, too, is in better position. Broad silks are in good demand, and silk yarns are selling in fair quanti ties. The raw silk market during the second week of the month reached the highest point since 1920, but present prices have served to check purchases some what, and although the market is still good, it shows signs of weakening. Plosiery manufacturers report an improved demand for both silk and cotton merchandise. Underwear manufacturers have received repeat orders for heavy-weight lines and have noted slightly greater activity in the light-weight goods. Offerings of the new season’s carpets and rugs were made early in O c tober, and many manufacturers have already with drawn their lines on account of being oversold. The demand for shoes for early delivery is strong, and some business is being transacted in next spring’s styles. Leather markets are especially active. Both upper and sole leathers of all grades are in large re quest, and belting leathers are selling well at advanced prices. Hides and skins are active, and prices are in creasing as a result of the scant supplies. The paper industry is in better position than at any time during the past two years. Demand is exceptionally strong, and operations continue at capacity or very close to it. Manufacturers of wrapping paper are experiencing an almost unprecedented season, and makers of book and magazine papers are busy. Paper box manufacturers report that the demand has increased since last month. Cigar manufacturers are still oversold, in spite of the fact that many of them have increased their productive capacity by the installation of more machinery and the opening of new factories. Further evidence of general business improvement is to be found in production statistics. Steel ingot pro duction in September totaled 2,373,779 tons, as com pared with 2,214,582 tons in August. The production of pig iron for the respective months was 2,033,720 and 1,813,070 tons. Textile statistics also indicate that production is holding to high levels. The num ber of active cotton spindles was greater in August than in July, and in the silk industry improvement is evident from the fact that silk consumption increased from 24,996 bales in July to 34,772 bales in August. These data are the latest available at the present writing. As a result of the increased production in practically all industries, what was a problem of unemployment only a few months ago has now become a problem of employment. Unskilled labor is especially scarce, in some industries more so than in others because of the increased wages being paid in the steel, building, and one or two other industries. Skilled labor, too, is be coming very scarce, and wage increases are common. A clear indication of the change in employment condi tions is found in the reports of the Pennsylvania State Department of Labor. On January 1 of this year, that bureau reported 243,293 unemployed in the six cities of Altoona, Harrisburg, Johnstown, Philadelphia, Scranton and Williamsport. On October 1 there were only 44,822 unemployed, a decrease of 81.6 per cent. And it is to be remembered that there is some unem ployment even in times of greatest prosperity. Conclusive evidence of the large volume of business being transacted throughout the country is found in car-loading statistics. Loadings have been steadily increasing, and the latest figure available—988,381 cars for the week ending September 30, 1922— is the largest for any week since October, 1920. This total was 83,550 in excess of the loadings for the same week in 1921, and it is especially significant that the greatest gain was in the loading of general merchandise.., As freight-car loadings have increased, the shortage of cars has increased, and is now so great as to cause much concern. As already pointed out, it is restricting the output of bituminous coal, and this of necessity must react unfavorably upon production in all other industries. Moreover, it is causing delays in the de livery of iron and steel products, building materials, and merchandise in general. Unquestionably the car-loading figures would be considerably in excess of what they are were it not for the present freight situation. Finally, the upward trend of business is indicated by the continued rise in wholesale commodity prices. The Bradstreet number rose from $12.0793 in August to $12.5039 in September— an increase of 3.5 per cent and the largest monthly gain since the rapid rise of prices in 1919 and 1920. The Dun number rose from 172.479 in August to 175.649 in September. The Bureau of Labor Statistics’ index number, it is true, declined from 155 in August to 153 in September. But this decrease was caused entirely by a falling of coal prices. The fuel and lighting group declined from 271 to 244. Foods and house furnishing goods did not change, but all of the other groups, including farm products, cloths and clothing, metals and metal prod ucts, building materials, chemicals and drugs, and the miscellaneous group, advanced. from 3>4 per cent to 344 Per cent. These higher rates have increased the sales of commercial paper very per ceptibly, but have had little influence on acceptances. Call money has been loaned at from 4 to 6 per cent in the past month, but more recently loans have been made at from 4*4 to 5 per cent. Financial Statistics (000,000’s om itted) 'ederal Reserve System: Bills discounted......................... Purchased bills ......................... U. S. securities......................... Total deposits ........................... Federal reserve notes.............. Total reserves ........................... Reserve ratio ............................. sporting member banks : Loans and discounts: Sec’d by U. S. securities.. . . Sec’d by other securities.. .. All other (com mercial).... FINANCIAL CONDITIONS Further and more extensive gains in loans and dis counts during the past month are reported by the mem ber banks of the Federal Reserve system located in the principal cities of the country. Two factors— the expansion in general business and the seasonal need for additional funds to move the crops— were of major im portance in bringing about this gain. The statement of October 11 shows an increase over that of September 13 of 223 millions, and of this amount 139 millions are accounted for by commercial loans. A reduction of 37 millions in investments has taken place at the same time. Although the total of discounted bills held by the Federal Reserve banks was 87 millions higher on Octo ber 18 than on September 20, a large part of this change was traceable to an increase of 58 millions in the New York district. O f the other eleven districts, seven show a gain, and four— Atlanta, Minneapolis, Dallas and San Francisco— a decline. By deducting from the total of bills discounted that part which was discounted for member banks in larger cities, it is clear that borrowings from the Federal Reserve banks by banks in smaller cities and rural sections have been declining through September and thus far in October. Federal Reserve notes in circulation have increased 96 millions in the past four weeks. The Federal Re serve Bank of New York reported practically no change in this item, but for the others the increases ranged from 3 millions for the San Francisco bank to 15 millions for the Philadelphia bank. Deposits of the system are higher by 102 millions, and reserves by 24 millions. The greater increase in liabilities reduced the reserve ratio from 78.3 per cent on September 20 to 75.2 per cent on October 18. The increased demand for funds has been followed by firmer rates for money. Commercial paper, which a month ago was moving generally at 4*4 M oney per cenj-? now selling at A]/2 per cent. rates Similarly, in the case o f bankers’ acceptances, the offering rates on short, eligible bills have advanced Latest week Month ago $511 257 447 1,956 2,315 3,214 75.2% $424 220 439 1,854 2,219 3,190 78.3% $390 166 485 1,852 2,147 ‘ 3,193 79.8% $263 3,613 7,242 $264 3,528 7,103 $259 3,5l4 7,036 Total loans and discounts. Investments: U. S. securities....................... Other securities ................... 11,118 10,895 10,809 2,189 2,255 2,239 2,242 2,216 2,317 Total securities.................. Total deposits ........................... 4,444 14,937 4,481 14,866 4,533 14,778 Oct. 21, 1922 Month ago Money rates: Fed. Res. bank discount rates: 4 % Boston ..................................... 4 % 4 “ New York ............................. 4 “ Philadelphia ........................... 4/4 “ 4*4“ Chicago ................................... 4*4“ 4 /2 “ Commercial paper .................... 4(4-5 “ 4(4-4 U “ Bankers’ acceptances ................ 344-376 “ 3(4-346 “ Call monev ruling rate.............. 4 (4 “ 4 (4 “ Securities (average prices) : 20 industrial stocks .................. 20 railroad stocks .................... 10 first-grade rail bonds.......... 10 second-grade rail bonds___ 10 public utility bonds.............. 10 industrial bonds .................. 4 Liberty bonds......... ............ 4 Two months ago $93.45 101.95 88.01 86.52 89.75 95.89 99.16 $91.36 98.37 91.60 88.78 90.61 96.83 100.41 Two months ago 4 % 4 “ 474“ 474 “ 4 -4 (4 ;; 3 - 3*4 3*4 $93.05 99.71 91.24 89.22 89.0o 96.66 100.63 -------- ------- Rates for commercial paper, which began to advance last month, continue to stiffen. This is a normal con. dition for this season of the year, for Commercial n0^ onjy are iarge amounts of capital paper tied up in the movement of the various crops, but the retail stores are receiving goods for the fall and holiday trades, and their stocks are consider ably heavier. Sales of a few names are reported at 4j4 per cent, but these are exceptional, and the largest amounts are passing at 4*4 per cent, with a consider able sum at 444 and 5 per cent. The volume of sales is increasing, both citv and countrv institutions buying' more freely at the higher rates now prevailing. New York banks have been heavy purchasers, and much of the available paper has found a lodgment in that mar ket. Lists of offerings are small, and new offerings have been quickly absorbed. ' Dealers report that the advance in rates has in some quarters retarded borrow ing, and in others has resulted in borrowers using the banks instead of the open market. Sales made by six reporting dealers in the Third Federal Reserve District during the previous month, September, totaled $7,864,300, as compared with $5,985,483 in August. Philadelphia buyers took $4,222,500, and out-of-town institutions, $3,641,800. Five of these dealers sold $5,482,000 in September, 1922, as compared with $4,335,648 in September, 1921, a gain of 26 per cent. The sales at 4 + per cent were consid erably more than half the total, those at 4 per cent were about 10 per cent of the total, and those at 4 + per cent about 25 per cent. Above that rate the sales were only 5 per cent of the total. The price averages of stocks, which had fallen off in the last half of September, began to rise early in October, reached still higher levels in the Securities middle of the month, and again fell off in the following week. Sales of both stocks and bonds have been larger in October than they were last month. Bond prices have declined lately. Security price averages over the past three years are shown on the accompanying chart. ber, eight of the thirteen cities included in this tabula tion shared in the general decline, and of these, only two could be called typically coal cities, which might be expected still to show a falling off in savings de posits. The others cover a wide range of manufactur ing activity. Comparison of the October 1 figures with those of September 1 and of October 1, 1921, follow: Savings Deposits Number of reporting banks Altoona ................. Chester .................. Harrisburg........... Johnstown ............ Lancaster .............. Philadelphia......... Reading................. Scranton ............... Trenton................. Wilkes-Barre....... Williamsport ....... Wilmington .......... Y o r k ....................... Others ................... 5 5 4 6 3 9 3 6 6 5 4 5 5 14 Average......... Per cent increase or decrease October 1, compared with 1922 September 1 1921 October 1 1920 October 1 + — + — .9 .7 .3 __ 2 — 1.1 + .3 — 1.8 + 1.3 + -2 + -2 — .9 10.8 4.6 +64.7 — 4.5 +24.6 + 1.5 + 9.7 + 6.0 + 6.2 — 1.0 + 8.8 +14.0 +10.5 — 3.6 — .4 + 2.8 + + d — — — .6 —2.2 12.7 13.7 +107.8 — 2.0 + 33.0 + 4.5 + 17.1 + 23.9 + 6.8 + 17.1 + 14.5 + 15.4 + 30.7 + 10.3 7.6 The supply of bankers’ acceptances coming into the market has become larger but even higher rates have f not proven a very strong stimulus Hankers to saies< From the reports of five accep ances dealers who operate in the Third Federal Reserve District, it appears that the average weekly sales for the four-week period ending October 15 were only $1,449,000, as against $1,524,000 in the previous period. A resume of their transactions ap pears below : r (000 s omitted) Sales Purchases Apr. 17-May May 15-June June 12-July July 17-Aug. Aug. 14-Sept. Sept. 18-Oct. $790 827 489 596 323 336 To To F. R. Dank Local Out-of-town others $2,208 2,949 2,599 5,440 1,440 1,317 $361 46 114 150 61 122 $48 15 24 0 18 11 $35 0 0 0 5 0 Total $2,652 3,010 2,738 5,590 1,524 1,449 Exports of cotton and grain, imports of sugar, coffee, and silk, and the storage of cotton, tobacco, and sugar have given rise to many of the acceptances executed lately. The reports of twelve accepting banks in the Third District show a small increase in the amount of acceptances created. For the month ending on October 10 the amount was $3,218,000; on September 10, $3,020,000; on August 10, $3,966,000; and for the month ending October 10, 1921, $4,507,000. Source— " The Annalist” Figures from eighty banks in this district show a decline of 0.4 per cent in savings deposits during Sep„ . tember. The monthly changes thus far a^ inSs in the year, stated in percentages, have epostts keen as f0n0ws: January, + 0 .9 ; Febru ary, + 0 .2 ; March, + 0 .1 ; April, -6 .2 ; May, -0 .7 ; June, + 0 .3 ; July, -0.02; August, -0.5. In Septem 14 11 16 13 17 15 T o o ther banks 5 Rates have stiffened materially in the past month. In the third week of September the offering sheets of the dealers listed short-term eligible paper at from 3% to 3^8 per cent, but the usual rates at present are from 3^4 to 3li per cent. Short bills, of from 30 to 60 days, are in greatest request, but of these the supply is not large. Most of the European exchanges have fluctuated within narrow limits during the past month. The most notable exceptions to the general Foreign > listlessness of the market have been the exchange renewed strength in sterling and the continued decline in marks to the lowest point in their history. The pound has advanced from $4.43 on Sep tember 21 to $4.46 on October 21. At this point it is more than 50 cents higher than its quotation a year ago. The strength of sterling evidently reflects a fundamental improvement in England’s financial position, an im provement which is also evidenced by the commence ment of interest payments on Great Britain's debt to the United States. Even the resignation of the British Premier had but little effect upon English exchange. In the case o f Germany, the present low quotation on the mark is a reflection o f the deplorable results of unlimited note issues. The violent drop in marks dur ing the past month was accompanied by an unprece dented expansion in note circulation. The Reichsbank circulation was reported on September 22 as 271,597,800,000 marks and on October 21 as 374,506,800,000— an increase of more than one hundred billion marks during the month. Continental exchanges have moved but slightly dur ing the month. Some of the neutral currencies, notably Dutch, Swedish and .Spanish, have advanced slightly, but French and Belgian francs and Italian lire have lost ground. Indeed, Belgian exchange was quoted at only $6.80 cents on October 21, which is .36 cents less than the figure of a year previous. The accompanying table shows recent changes in the principal foreign ex changes : RETAIL TRADE Following the marked improvement in retail trade during September, the opening weeks of October have been disappointing, and unless trade in the latter part of this month improves greatly, total sales will probably show a decrease as compared with October, 1921. The cause for this sudden change for the worse is difficult to find, unless it be the somewhat timeworn excuse of unseasonable weather conditions. Undoubtedly the warm spell which lasted for more than two weeks of the month has retarded trade. In women’s wear, heav ier goods have been neglected and silks have increased in sale, and in men’s wear, fall lines are reported to be very dull. Although furniture sales are large, a slight seasonal decrease is noted. But carpets, rugs and lin oleums are very active. Price advances have been made on a number of arti cles, and it is probable that more lines would have in creased in price had the previous demand been main tained. Retail trade in the anthracite regions is im proving, but it, will probably be several months before sales are equal to those in other parts of the district. The accompanying charts illustrate two fundamental factors in retail trade, the importance of which is often underestimated— namely, the rate of turnover, and the percentage of orders outstanding to the total purchases of the previous year. Not infrequently the difference between success and failure in a business depends upon the rate at which a store can turn over its stock. In these days of keen competition, when it is impossible for one store to sell merchandise at a higher price than its rivals, the profit made on the sale of a given article is approximately the same in many .stores, and there- FOREIGN EXC H A N G E RATES (Noon Cables) Par o f October 21, exchange 1922 London .................. $4.8665 .193 Paris ..................... .193 Antwerp ................ .193 Milan ..................... .2382 Berlin .................... .2026 V ienna................... .402 Amsterdam .......... Copenhagen .......... .268 Stockholm ............ .268 .193 Madrid .................. .193 Berne ..................... Buenos Aires . . . . .9648 .7082 Shanghai ............... $4.4636 .0733 .0680 .0417 .000227 .000014 .3916 .2008 .2673 .1535 .1827 .8214 .7343 September 21, October 21, 1922 1921 $4.4342 .0766 .0724 .0424 .000711 .000014 .3878 .2097 .2651 .1524 .1870 .8046 .7679 $3,945 .0728 .0716 .0395 .006045 .000591 .0440 .1914 .2323 .1326 .1845 .7256 .7825 ^-.1 . ■ ____ —______ _ 1920 1921 ■ 1 ............ ..... 1922 The chart shows that the rate of turnover varies with considerabl regularity through the year, the highest rate coming in early sum m er and at the end of December 6 Source— Reports of 16 retail firms to Philadelphia Federal Reserve Bank fore the difference in the total yearly earnings of the various stores becomes largely a question of how often during the year that profit can be made. If, for in stance, in one store the turnover of stock takes place three times during the year, and in another store four times, the profit on each sale being the same, the one with four turnovers will make 33 1/3 per cent more money than the other. In the chart it will be seen that the rate o f turnover increases during the periods of largest sales,— that is, during the fall and the holiday season; and that it falls off after the first of January, increases again during the spring, and falls very sharply during the dull period of summer. The second chart pictures another important phase of retail trade, which has a direct bearing on turnover, for what in one month is an order outstanding becomes, within a month or so, stock to be turned over. Buying of course precedes selling, and it will be seen that the increases in percentage in this chart antedate the months of large sales and that the decreases in percent age occur during those months. The steady increase in orders outstanding during the past four months to a point considerably higher than at the corresponding time in 1921 shows that retail stores have been buying Source— Reports of 10 retail stores to Philadelphia Federal Reserve Bank more liberally. This is probably because of the greater stability of prices and their tendency to advance, and Retail Trade Comparison Sept., 1922 with Sept., 1921 All reporting firms ( 1 4 4 ) .......... Firms in — Philadelphia ............ Allentown, Bethlehem & Easton Altoona .................... Chester..................... Harrisburg .............. Johnstown............... Lancaster................. Reading .................... Wilkes-Rarre .......... Williamsport .......... Wilmington ............... York ......................... All ether cities........ of N et Sales July 1 to Sept. 30, 1922 with July 1 to Sept. 30, 1921 Comparison Sept. 30, 1922 with Sept. 30, 1921 of S tocks Rate of T urnover Percentage o f orders outstand ing Sept. 30, July 1 to 1922 to Sept. 30, total purchases 1921 in 1921 Sept. 30, 1922 with A ug. 31, 1922 July 1 to Sept. 30, 1922 + 1 1 .9 % + 1 2 .5 “ 2.5 2.9 2.4 2.7 9 .0 % 9.3 “ 9 .0 “ 8 .9 “ 1.9 2.3 1.5 2.2 4.2 “ 11.5 “ + 1 5 .3 % + 1 8 .5 “ + + + 2 1 .3 + 8.2 + 5 2 .9 + 3 6 .3 + .4 + 1 3 .7 + 1 8 .2 — 12.5 + 1 5 .1 — 3 .0 — 5.6 + 2 6 .0 + 2 2 .6 + 8.7 + 7.4 “ — .5 “ + 1 5 .5 “ + 1 3 .8 “ — 9.4 “ + 1.3 “ + 1 0 .3 “ — 21.8 “ + 8.2 “ — 10 3 “ — 2 .9 “ + 7.0 “ + 8.1 “ + .6 “ — 2 .6 “ — 10.7 “ + + + 9.3 “ — 3.8 “ — 2.5 “ + .8 “ + 8.1 “ — 9“ — 9 4 “ — 1 .0 “ — 6.5 “ — 5 5 “ + 1 0 .1 “ + 1 9 .1 + 9 .4 + 8 .8 + 1 0 .0 + 9 .0 + 4 .6 + 1 1 .8 + 1 1 .4 + 9.9 +11 0 + 1 5 .6 “ “ “ “ “ “ “ “ “ “ “ *2.4 2.5 2.1 1.8 2 3 2 5 2 1 2.3 1.5 2 1 1.9 2 .2 2 .6 2.1 1.7 23 23 2 4 2.3 1.3 18 2.1 “ “ “ “ “ “ “ “ “ “ “ “ “ “ — — 4 .2 % 6 .7 “ 2 .6 % 4 .0 “ 8 .0 “ 6 .8 “ 8 .6 “ 9.8 “ All department stores................ Department stores in Phila.... Depart, stores outside Phila... . + 1 3 .6 “ + 1 8 .3 “ + 7.8 “ + + — 4.3 “ 8.3 “ .8 “ — 1.3 “ — 2 .0 “ — .5 “ + 9.9 “ + 1 0 .3 “ + 9.5 “ 2 .6 2.9 2.2 2.4 2.7 2.2 9 .8 “ 10.6 “ 8.1 “ All apparel stores....................... Men’s apparel stores— in Philadelphia........ outside Philadelphia W omen's apparel stores— in Philadelphia..... outside Philadelphia + 1 8 .4 “ + 1 .6 “ — 7.7 “ + 1 9 .6 “ 2.3 2.3 6 .6 “ + 2 4 .0 “ + 1 2 .5 “ + — 4 .8 “ 2 .3 “ — 2 .9 “ — 2 .7 “ + 1 6 .1 “ + 1 3 .2 “ 2 .0 1.3 2.2 1.3 9.2 “ + 1 3 .0 “ + 2 1 .7 “ — + 3 .8 “ 7 .7 “ — 12.1 “ + 3.5 “ + 2 6 .1 “ + 2 7 .9 “ 3 .6 2 .6 3.2 2 .4 5.7 “ 13.1 “ Credit houses + 3 0 .0 “ + 1 3 .4 “ + 1 0 .3 “ + 2 .0 2 .0 6.6 “ ..................................... 7 8 .6 “ also because of the better outlook for business in gen eral. The table on page 7 indicates that retail sales in September in the Third Federal Reserve District in creased 15.3 per cent, as compared with those of Sep tember, 1921. Some improvement is noted in the anthracite region, but conditions there are not yet nor mal. The sales in Altoona, Williamsport, and York are given separately for the first time this month. Wholesale rygoo s warm weather and the lack of confidence on the part of the retailer, all orders are for immediate delivery. Prices of cotton and woolen goods are somewhat higher. Denims, work shirts, and overalls have ad vanced. Quotations on low-grade ginghams for next spring are relatively lower than those on the high-grade ginghams, and prices quoted by Southern mills are somewhat less than those of the New England mills. Wholesale stocks continue to be light, but they are increasing slightly. Collections in regions that were affected by the coal and railroad strikes are slow, but according to the figures for the whole district, collec tions have somewhat improved. During September sales by the reporting firms in creased 24.1 per cent, as compared with August, but they showed no change over those of o esa e September, 1921. A considerable part of the gain is no doubt attributable to the fact that the retailers in the coal regions were start ing to replenish their stocks, which had been allowed to fall to a very low point. Collections improved during September. The ratio of accounts outstanding to sales on September 30 was 193.2 per cent, as against 198.8 per cent on August 31. Reports from 35 wholesale hardware firms in this district show that sales for September were 5.3 per cent greater than those for August, o esa e ancj q per cent g reater than those ar ware £Qr s eptember) 1921. The accompany WHOLESALE TRADE Since August, conditions in the five wholesale report ing lines have decidedly improved. In all cases, sales in September were greater than in August, but in dry goods and groceries they were smaller than the Septem ber sales of last year. Although there is now some indi cation that future buying is increasing, the preponder ance of orders for immediate delivery is still common to all the reporting lines. Hardware and drygoods stocks in the hands of wholesalers are light, but grocery sup plies are being increased bv the arrival of seasonable goods. The after-effect of the coal strike is shown in the collections, which in all lines, except hardware, are slower than they were last year. Wholesale drug sales in September were .1 per cent larger than the August total, and, as compared with . . September of last year, they have indrugs 6 creased greatly. The demand shows marked improvement, and the feel ing of the trade is excellent in view of the fact that the months of September, October, and November are an off season. Orders from retailers are now larger in size. Owing to the advance in the prices of imported drugs that was expected to follow the application of the new duty, and because o f the fear of freight congestion, wholesale stocks have increased. With the exception of those that are collected in Russia or the Near East, drugs are easily obtainable. As yet, the new duty has had little effect upon the general level of drug prices, but the cost to the wholesaler and the price to the re tailer, of some imported crude drugs, have been in creased. Spanish saffron and tragacanth gum are high, and although the trend of the market has been strong, it may be affected by the new crop. In the fine chemical group, citric acid has advanced. Because of the scar city of phenol, the whole salicylate group is higher. The September ratio o f accounts outstanding to sales was 143.5 per cent, as compared with 134.0 per cent for last August, and 142.5 per cent for September, 1921. September sales of drygoods were 27.4 per cent larger than in August, but they were .2 per cent smaller than in September of last year. The demand for goods has increased and is now fajr However, on account of the ing chart indicates the steady increase in sales that has taken place since July of this year and also the relation of this year’s business to that of 1920 and 1921. It will be noted that since May of this year sales have either equalled or excelled those of 1921, but that they have all along been considerably below those of 1920. Building hardware is still in brisk demand, although a seasonal slackening is thought to have occurred since last month. In the rural districts sales of all classes of hardware are reported to be improving, and increased business has been done with mills and mines. A greater amount of purchasing for the future is being done, be cause retailers, having experienced some difficulty in securing certain classes of goods, are now stocking upStocks on the whole are low, and wholesalers have had trouble in obtaining some kinds of goods because of transportation difficulties. Prices on many lines ot fabricated steel and iron products have continued to rise. The ratio of accounts outstanding to sales showed lit tle change from August and was 168.5 per cent, as com pared with 169.2 per cent at the end of the previous 8 month. The ratio in September, 1921, was 179.2 per cent. Collections are still fair. Sales for 1922 have recently exceeded those for 1921, but they are still greatly below those of 1920 A steady call has existed for seasonable staples, such as sugar, cereals, beans, condensed milk, canned peas and tomatoes, and spices, prunes and raisins. Although A comparison of the m onthly sales of wholesale grocery firms shows that they are affected but little by seasonal changes. Sales in this year are smaller than the sales in either 1921 or 1920 Source— Reports of 21 dealers to Philadelphia Federal Reserve Bank Source— Reports of 39 firms to the Philadelphia Federal Reserve Bank Trading in wholesale groceries is brisk, but the heavy seasonal selling that formerly occurred during Septem ber, October, and November has not Wholesale yet tapen piace. Owing to lack of congroceries fia n ce or to the competition,of chain stores, retailers generally have adopted the policy of buying merely from hand to mouth in order to keep their stocks light. Thus, in spite of an improved de mand for spot goods, the amount of future orders is very small. On the average, less than 15 per cent of the orders placed are for future delivery. The effect of this change in the buying policy of retailers is that or ders which formerly poured in during the fall months are now distributed throughout the year. Sales in September were 1.4 per cent larger than those in August, but 1.5 per cent smaller than the September sales of last year. The accompanying chart shows the decline in wholesale grocery sales since the peak in July, 1920. the demand for sugar has declined, it has held up surprisingly well. The request for spices has been increased by the pickling season, and raisins, nuts, and figs are being ordered in preparation for the holiday trade. The goods that are moving least rapidly are canned fruits and vegetables. Canned corn is especially slow, and the demand for jellies and preserves is very dull. Because of the arrival of the new pack of vegetables, wholesale stocks are increasing, but they are still below normal. At this time of the year, supplies usually in crease, but because turnover has become more rapid, stocks that are considered to be normal today are much smaller than the normal stocks of ten years ago. During the past month, no radical changes have taken place in the prices of wholesale groceries, but they are tending to become stronger. Sugar and canned toma toes are higher, and all dairy products have advanced. Grocers report that the freight situation is causing Condition of Wholesale Trade During September, 1922 Number o f reporting firms Boots and shoes f jrugs ............... J+y g o o d s........ Groceries .......... Hardware ........ 12 16 22 67 35 Percentage o f Increase or Decrease in A ccounts outstanding Net sales September, 1922 compared September, 1922 compared with with A ug., 1922 Aug., 1922 Sept., 1921 Sept., 1921 0.0 +24.1% + 1“ +27.4 “ + 1.4“ + 5.3 “ + 5.2% — .2 “ — 1.5“ + 1 6 .0 “ 9 +23.9% + 5.8“ +26.7 “ + .5.8“ + 4.8“ + 2.7% + 6.6 “ — 1.7“ + 7.1 “ + 1 1 .5 “ Ratio o f accounts outstanding to sales September, 1922 193.2% 143.5“ 178.8 “ 110.1“ 168.5 “ considerable difficulty by delaying shipments of mer chandise that they have sold to customers. In the coal districts, collections are still very unsatisfactory, but as the anthracite collieries are now paying their employees, wholesalers hope that collections will improve. In the district as a whole, collections are fairly good. The September ratio of accounts outstanding to sales, which was 110.1 per cent, was higher than the figures of 100.1 for August, and 102.2 for September, 1921. Exports of Wheat and Flour in 1920 New Orleans.. Galveston ....... New York . . . . Baltimore ....... Philadelphia ... Although the demand for flour is good, it has been affected greatly by the congestion in traffic. Delays in shipments to eastern markets have so depleted the available stocks that spot flour is still in great demand, and during the past month premiums have been paid for immediate deliveries. The same situation has re duced the volume of orders for the future. Customers hesitate to buy ahead while transportation conditions remain uncertain, and they naturally fear that when congestion on the railroads is relieved, this section will be overstocked with flour and prices will decline. The export demand is now brisk, but the quantity of flour shipped from the port of Philadelphia during Sep tember of this year was much less than the amount exported in September, 1921. Also the total of flour exports from Philadelphia between January 1 and O c tober 1 of 1922 was much less than that of the corre sponding period of last year. However, as indicated by the table below, the exports of wheat for the first nine months of 1922, when compared with those of the same period last year, have increased 43 per cent. The following figures were compiled by the Commer cial Exchange of Philadelphia: First 9 months of 1922 ........................................ 1921 ........................................ September, 1922 ...................... August. 1922 ............................ September, 1921 ....................... September, 1920 ....................... 388,163 585.988 54,023 62,871 94,734 95,017 31.489,771 17,980,938 2,091,929 4.250.265 1.636,520 1,985,417 Much of the gain in the export of wheat from Phila delphia has been due to the growing importance of the port. In 1920, as shown by the table below, this city ranked fifth in its exports of wheat and second in its exports of flour. And since 1920, the relative impor tance of Philadelphia as an export point for wheat has increased. The foreign shipments in the first nine months of this year were 13,805,428 bushels larger than those in the same period of 1920. New York . . . . Philadelphia ... Baltimore ....... New Orleans .. 7.599,292 2,983.548 1,882,532 1,617,169 Estimated Wheat Crop of the U. S. (In bushels) Crop o f 1922 Winter wheat ...................................... Spring wheat ....................................... Exports of Flour and Wheat from Philadelphia W heat (in bushels) 48,695,864 46,561,406 36,148,606 27,798.338 17,684,343 The majority of flour mills in this district have been operating at 100 per cent of capacity. However, many of them during the past six weeks have been forced to curtail their production when, on account of difficulty in securing empty box cars at Buffalo and Minneapolis, they have run short of grain. Although the railroad situation is largely responsible for the shortage of flour, the scarcity has been increased by the lightness of stocks carried by jobbers. Because the latter had lost heavily in the past when the value of their supplies de clined, many of them have made a practice of keeping relatively small quantities on hand. In sympathy with the quotations on wheat, which have advanced during the past month, flour prices have become stronger. But they are considerably lower than they were six months ago. The wheat crop this year promises to be bountiful. According to the October forecast of the Department of Agriculture, the yield in the United States, it is estimated, will amount to 810,000,000 bushels, which is larger than the crop of last year. FLOUR Flour (in barrels) Flour (in barrels) W heat (in bushels) Total ............................................. Crop o f 1921 542.000. 000 587.000. 268.000. 000 208.000. 810,000,000 000 000 795,000,000 However, to judge from estimates for the important wheat-producing countries, with the exception of Russia and Mexico, the world’s production will be somewhat smaller this year than last. The larger yields of Canada and the United States will be counter balanced by smaller yields in other countries. The World’s Estimated Wheat Crop (000’s om itted) 10 (In bushels) 1922 1921 Average of 1909-1913 U. S. and Canada......... Europe .......................... World ............................ 1,125,968 985,650 3,012,293 1,095,751 1,215,284 3,049,074 883.810 1,275.157 2.890,353 Both Canada and the United States are expected to have a large surplus to export. In fact, Canada’s crop is expected to equal the bumper war yield of 1915-1916, when she exported 394,000,000 bushels. This quantity alone would supply more than one-half of Europe’s usual requirements. The carry-over from last season, although not as large as that from the year before is much larger than that from 1920. The following table shows the carry over on July 1 of each year: Carry-over of Wheat (In bushels) 1922 .......... ............79,813,000 1921 .......... ............92,167,000 1920 .......... ............11.424,000 1919 .......... ............48,465.000 IRON AND STEEL During the month of September the iron and steel industries made considerable recovery from the effects of the miners’ and shopmen’s strikes, but transportation difficulties have hampered improvement, and embar goes and car shortages are at the present moment the cause of no little concern. Traffic conditions are made worse by the heavy coal shipments, and as some carriers have found it necessary to place embargoes on the movement of steel and iron products, many steel mills are seeing their output piled up in their warehouses. Shipments have been made by motor truck where such a course has been possible, but this means of transpor tation is o f course not feasible for long distances. The situation is so serious that some operators are con fronted with the necessity of shutting down their plants unless they are given some relief. In spite of traffic conditions, however, considerable headway has been made in production, and the average percentage of operations for both iron and steel manu facturers at present is estimated at approximately 75. During September the output of steel ingots by 30 companies, representing about 87 per cent of the capac ity, was 2,373,779 tons, or 159,197 tons greater than that for August. In line with this improvement, it is estimated by the ‘‘ Steel and Metal Digest” that the United States Steel Corporation during September booked orders for approximately 2,000,000 tons, the largest total for a single month since January, 1920. Unfilled orders o f the Corporation are now 6,691,607 tons, which is a greater amount than any since Febru ary, 1921. The accompanying chart shows the improvement in the production of pig iron which took place during the nionth of September. On October 1, there were 188 furnaces in blast, and an increase of 46 since Septem ber 1, and with the exception of June this year when 191 were blowing, the largest number active since Janu ary, 1921. It is pointed out, however, that many of Recent reports indicate that furnace activity is greater now than at any time since January, 1921. However, less than half of the total number of blast furnaces in the United States are now in blast Source— “ Iron Trade Review’’ these furnaces belong to steel companies, having their own coke ovens, and that the number of merchant fur naces has not increased proportionately. During Sep tember the demand for pig iron was so strong as to lead to the continued importation of considerable amounts from England, Scotland, and France, which, together with the increased domestic output, relieved the shortage in the local market and brought about a weakening of prices. Since October 1, the demand has slackened con siderably, and domestic irons that were bringing $36 per ton a few weeks ago are now to be had at $32. The continued high price of coke is, of course, an important factor in the present quotations on pig iron, but some operators declare that they will blow out their furnaces rather than sell iron at prices which will not cover the costs of production. The demand for various classes of steel products has been fairly heavy during the past few weeks. Heavy buying of rails for future delivery was brought about during the last two weeks of September by the an nouncement of the Steel Corporation that the price would be advanced from $40 to $43 a ton on October 1. Although no increases in orders are reported, plate manufacturers have had a good demand from railroads and locomotive plants. Wire mills, on the whole, have experienced little change in the amount of their busi ness, but during recent weeks they have made fairly large sales to railroads, mines and oil wells. Foundries in this district are hampered by the high coke prices, which, together with the prevailing rates for pig iron, raise the cost of castings to the manufacturer by about a cent a pound, and in many cases foundrymen are find ing it difficult to make proportionate increases in sell ing prices. Tin plate is in active demand from auto mobile manufacturers, and some mills are operating at close to capacity. Machine and machine-tool factories have had exceptionally heavy orders during recent weeks, and prices have been seeking a higher level. Operators attribute the rather extraordinary demand to the widespread resumption of activity in industrial plants. Among other purchasers of this type of goods, manufacturers of automobiles and automobile parts seem to be the heaviest takers, although railroads and oil wells are rather active buyers of pipe-threading ma chinery. Orders for practically all classes of steel and iron products are for spot delivery, and, except in some lines such as rails, few orders have been placed for the first quarter of the year. In fact, producers are not en couraging the placing of orders for future require ments, as the traffic situation is unfavorable to their en tering into long-time contracts. Prices on several lines of steel and iron products have softened since the middle of September. This is partly because of the better fuel situation and increasing pro duction, and partly because of a decrease in the eager ness of buyers since the first of October. Plates have declined during the past month, and local quotations on scrap iron have dropped from fifty cents to a dollar a ton in the last week. The market for several lines of steel products is described as spotty, and it is said that orders can be placed in some cases at a price below cur rent quotations. On the whole, however, the tendency seems to be for the market to stabilize itself, and this belief is strengthened by the fact that the quotations of independents and of the Steel Corporation are gradually approaching each other. Reports of scarcity of common labor continue to come in, and some manufacturers are advocating less restriction in the matter of immigration as the best remedy for the situation. With the coming of colder weather, however, the labor market may improve considerably, as many men now engaged in the build ing trades will be obliged to seek inside employment. In several cases during the past few weeks wages have been increased from 10 to 20 per cent. AUTOMOBILES In the automobile industry both manufacturers and dealers in this district report excellent business. Sales of both pleasure cars and trucks during the past three months have been far in excess of those for the same period of last year, and in many cases the increase has been 100 per cent or more. For the first nine months of this year sales are reported to have been from 65 to 100 per cent greater than those of the corresponding period of 1921. In fact, demand has been so heavy in some cases that production has not caught up with sales, and for that reason deliveries ate somewhat de layed. One or two dealers, however, have reported a slight seasonal falling off in sales during recent weeks, and in some instances stocks of new cars are increas ing. Practically all dealers continue to accept used cars in part payment for new ones, but several state that stocks of second-hand cars will bear close watching, as prices are still on the decline. In fact, it is said to be difficult to sell used cars at their true value. Methods of paying for new cars vary considerably. The majority of the low-priced automobiles are financed on a partial payment plan, and with some firms, as many as 95 per cent of all sales are made on this basis. The more expensive cars, however, are usually paid for in cash. During recent months prices have been reduced on several makes, but some manufacturers have not lowered their quotations since January of this year. It is of interest to note that the tendency in the industry is toward the production of comparatively inexpensive cars and that several models to be sold at less than a thousand dollars are to be brought out in the near future. Collections throughout the industry are from fair to good. BUILDING Although the number of building permits fell off somewhat in September, the estimated value of opera tions in fourteen cities of the Third Federal Reserve District showed an increase of about half a million dol lars. In August, 3,044 permits were issued for 3,957 operations estimated to cost $15,352,655. The accom panying table shows figures for September, 1921, as well as those for September of this year, and the ac cumulated total for the first nine months of both vears. Although the number of permits was greater during September of last year, it will be seen that the estimated value of operations for that month was about one-half of that for September, 1922. This is chiefly accounted for by the number of large operations in Philadelphia, where, it will be noted, September permits represented nearly three times the value of those for the correspond ing month last year. The upward movement of prices has continued in nearly all classes of building materials. Some materials have become rather difficult to obtain because of the transportation situation. In spite of the fact that lumber sales usually fall off at this period, only a few reports have been made of decreased business during the past month. Lum ber Demand for building lumber has remained strong, and high-grade hardwToods for finishing purposes have been in heavy request. Deal ers also note greater sales of low-grade hardwoods to mines and industries. Although furniture manu facturers are not buying heavily, one or two dealers have noted larger orders from this source. The ma jority of sales are still being made for building pur poses, and the continuance of this buying, of course, depends somewhat upon weather conditions. If the mild weather continues, it is not unlikely that opera tions will be carried on well into the winter. At the present time the great majority of orders from all sources are for immediate delivery. Although traffic conditions, have shown some im provement, considerable difficulty is still being experi enced with shipments. But some southern railroads have recently lifted the embargoes they had placed on lumber movements, and dealers and mill operators are receiving more reports of cars arriving at their destina tions. In some cases these shipments have been held up for weeks. In many cases mills are being operated at capacity, but in spite of this, stocks in the hands of both whole salers and retailers are light. Traffic conditions and light stocks have kept the market strong, and prices on some grades of hardwoods have advanced slightly. Certain dealers believe that the differences in price be tween low-grade and high-grade hardwoods is too great, and that the quotations on low-grade woods should be brought more in line with their true value. Several mills have reported a scarcity of labor, and higher wages have been granted in a few cases. Col lections are fair. Cement manufacturers in the district are with out exception operating at capacity and are enjoying an excellent demand for their product; Cem ent so excellent, in fact, that they are unable to supply it. Contractors are buying heavily at this time in order to obtain supplies to com plete their work before bad weather sets in. The ma jority of sales, probably more than 75 per cent, are for immediate delivery. Future sales are few because or ders for next spring’s requirements are not usually placed until after the first of January. The railroad situation hqs affected some producers seriously. In deed, several have found it impossible to book any or ders recently because of the freight situation, and in all but one or two cases car shortage and embargoes have either hampered the movement of finished products or held up shipments of incoming materials. Some diffi culty has been experienced in obtaining raw materials, and the price trend on these, with the exception of coal, is upward. All operators except those who are unable to make shipments because of traffic conditions, are carrying very light supplies of finished cement. In fact, some manufacturers state that their stocks are at the lowest point consistent with safety. Prices, on the whole, are steady. Considerable difficulty is reported in securing common labor, and manufacturers have granted wage increases of from 10 to 50 per cent dur ing recent weeks. Collections are from fair to good. The majority of paint manufacturers report a good demand for their products, and except in unusual cases they are operating at capacity. Heaviest Paint sales are of course in connection with new building operations, but some industrial users are also coming into the market. In practically all cases orders are for immediate delivery. In common with operators in other industries, paint manufacturers have been hampered by freight move ments and embargoes, and the traffic situation is hinder ing both the delivery of outgoing freight and the re ceipt of raw materials. Prices on raw materials have increased during the past few weeks. White and red lead, dry colors, and linseed oil are among the raw products that have risen in price. Quotations on ready-mixed paints have not changed, although some local manufacturers believe that they will have to be advanced to meet the rising costs of raw materials. Sev- Building Permits Issued and Their Estimated Cost Third Federal Reserve District Jan u ary S eptem ber 1922 Permits Operations A lle n to w n ...................... Altoona .......................... Atlantic C i t y ................ f amden .......................... H a r r is b u r g ................... Lancaster ...................... P h ilad elp h ia................. Reading ......................... ^cranton ........................ B enton .......................... W ilk e s -B a r r e ............... Williamsport ................ ^'ilm ington ................. y ork .. Total for Sept........ 89 142 242 131 80 75 1,260 278 103 131 72 111 94 132 2,940 Do not report operations. 102 142 242* 187 127 75 2,020 298 103 152 72* 114 94 132 3,860 Est. cost $572,860 218,978 659,848 333,315 300,414 411,320 11,714,140 523,580 210.030 266.552 224,364 136,779 214,928 81,562 $15,868,670 Permits Operations 89 163 238 103 77 40 1 554 273 29 145 72 49 76 82 2,990 S eptem ber, I n c l u s iv e 1921 Est. cost Permits Est. cost Permits Est. cost $250,250 408,406 511,815 114,979 169,053 221,350 4,304,570 206.835 278,500 305,110 277,332 71,245 640,089 61,160 751 1,424 2 929 919 756 679 11,212 2,556 1,142 1,155 1,025 891 782 1,127 $2,805,790 2,132,779 6,646,406 3,372,544 3,371,695 2,217,020 85,620,425 3,980,451 4,004,416 3,335,596 3,156,951 1,368,104 2,404,650 1,018,419 560 1,444 1,792 769 463 476 10,575 3,341 474 1,187 648 396 748 887 $1,217,368 1,571,999 3,475,542 1,496,941 1,942,243 1,157,993 28,390,405 1,793,585 1,519,374 2,712,292 1,371,955 1,232,191 1,941,743 879,957 27,348 $125,435,246 23,760 $50,703,588 $7,820,694 13 to 1922 1921 eral firms report some difficulty in securing labor, but wages remain at about the same level as heretofore. In some factories wages have not been reduced from their war-time maximum. Collections are fair but show no improvement over recent months. Manufacturers of sanitary ware continue to report a good demand. The industry depends largely upon activity in the building trades, and of Pottery course the large amount of construction in progress this year has had its effect upon the demand for pottery. All plants reporting, with the exception of one that is closed because of a gen eral strike, and another because of fire, are operat ing at from 90 to 100 per cent of capacity. Sales have been especially large during recent weeks because the trade has been attempting to anticipate its require ments, knowing that the agreement which most earthen ware manufacturers have with their workmen expires on October 31, and that up to the present time no new agreement has been negotiated. No shortage of labor is apparent, but manufacturers have been unable to re duce wages from their war-time peak. Because of these conditions most operators have refused to book orders for more goods than they can turn out by N o vember 1. Raw materials, on the whole, are readily obtainable, although shipments of these have been held up in some cases by freight conditions. Car shortage and embargoes have also prevented some factories from making shipments of finished products. Prices of raw materials are reported to be firm or advancing. Stocks of finished goods are, for the most part, light and de creasing. Many goods, however, are made according to specification, and it is therefore not the usual prac tice to carry heavy stocks of finished products. Collections vary from fair to good. Manufacturers of plumbing supplies have been experiencing a very active demand during the past three months, but in some cases sales are rlum bing rep0rted to have undergone a slight seasupp tes sonaj decline since the middle of Septem ber. All manufacturers, however, report that sales are greater than they were at this time last year. The ma jority of orders are for immediate needs, and no ap preciable tendency is noticed to anticipate future re quirements. Some idea of the amount o f business be ing done may be gained from the fact that of the firms reporting their percentage of operations all but four are working at capacity. Stocks o f finished products, on the whole, are light and generally are decreasing. Prices on finished goods show an upward tendency in sympathy with the increased quotations on many raw materials. These materials are reported as rather diffi cult to obtain in some instances, owing to freight em bargoes and transportation deficiencies. In some cases, also, transportation difficulties have hampered the movement of finished products. Several manufactur ers report a scarcity of unskilled labor, and in certain instances wage increases have been granted. Skilled labor, on the whole, is in sufficient supply, although there are a few reports of difficulty in obtaining suit able men. Collections vary from fair to good, and are much the same as they have been in recent months. COAL The warm weather during September and early Octo ber helped the anthracite situation considerably, insofar as consumption was concerned; but the Anthracite recent cold period has again brought consumers into the market. The grow ing use of such substitutes as bituminous coal and fuel oil has had a depressing effect upon the market for steam sizes, and in some cases supplies of these grades have become so plentiful that operators have had difficulty in disposing of their stocks and certain producers are storing a portion of their output. In the prepared sizes the problem has been that of securing a sufficient supply and distributing it equitably. Heavy ship ments have been made to New England and other northern territories, and it is expected that those markets will receive practically all of their requirements. Some reports have been received of shortage of cars in the anthracite fields, but the shortage is not so marked as it is in the bituminous sections. Production has been very encouraging and for the week ending October 21 was estimated at close to 2,000,000 tons. This output is slightly above normal, and the fact that such production was possible, though not quite all the miners have returned, indicates the exceptional activity of those men who are working. Of the anthracite mines reporting operations, all but one are working at from 80 to 100 per cent of capacity. The exception was due to an inadequate car supply* which is probably only temporary. Except on steam sizes, which have softened in price owing to slackened demand, quotations have not changed during the past month. An effort has been made, however, to reduce the difference between prices quoted by the large operators and those of independents. The company mines have listed quotations on stove coal varying from $8 to $8.35 a ton, whereas inde pendent prices on the same size range from $8.50 to $9.50. An agreement has been reached between the Federal Fuel Distributor and the Pennsylvania Fuel Commission whereby it is expected that the maximum fair price allowed independents will be approximatel} $9.25. The accompanying chart shows the tremendous increase which has taken place in the price of prepared sizes since 1913. Stove coal has been taken as a basis because it is the size least liable to seasonal fluctuation^It will be noted that present prices for this grade are more than double those of the pre-war period. 14 Output of both beehive and by-product coke for the month of September was 2,850,000 tons, or approxi mately 517,000 tons above the August production. Demand is of course good because of the increased activity of blast furnaces. Prices eased up a little in the middle of October owing to the increased production, but Connellsville furnace coke on October 19 was still bringing $10 a ton, and foundry grade was quoted at $12. Some British coke has come into the country during recent weeks, but not in sufficient quantities to have any noticeable effect upon the market. COTTON Since the cotton consumption during the coming year can be less accurately predicted than the size of the present crop, changes in price will ^ aw be determined largely by developments that affect the world demand. However, the factor of supply rather than of demand was the chief cause of the rapid rise of cotton quotations after spot cotton had reached the low level of 20.35 cents on September 30. The selling pressure in Texas, together with the threat of war in Europe, caused cotton quota tions to decline steadily. Planters were anxious to dispose of their crop because they needed money, and the long-continued drought west of the Mississippi had ripened the cotton prematurely. That the crop has been ready for market much earlier this season than in the two previous years may be seen from the com parison of the ginning figures given below : average of weekly company quotations for stove size per gross ton, at the mine Sources— “ Black Diamond” and “ Coal Age” Most bituminous operators have been confronted with a sluggish market during the past month. With railroads, public utilities, and indusBituminous tries the tendency seems to be to hold off for lower prices, and as a result few orders have been placed except for immediate needs. Buyers show no inclination to place contracts over a long period. Production in the Central Pennsylvania District fell off considerably during September and early October because of car shortages and lack of motive power. In some regions the continued drought has so decreased water supplies that it is difficult for mines and collieries to run their boilers. For these reasons, but chiefly because of lack of cars, production has been reduced in some cases to from 15 to 20 per cent of capacity, and the average is probably not above 40 or 50 per cent. In spite of decreased output, prices during the past month have declined on many grades, indicating to what extent the demand has fallen off. The continued importation of British coal also has doubtless had a depressing effect upon the market, but it is believed that the coal movement from England is now about at an end. Spot prices at the mines on some low grades of bituminous are as low as $3.25 a ton, which represents a drop of about one dollar during the past month. A few contracts to April 1 on high grade coals have been made at from $4.25 to $4.50 a ton. As explained above, however, contracts are the exception, and the great majority of users are purchasing at spot prices. Despite labor difficulties and car shortages in the Connellsville region, coke output has improved since the middle of September. During the week Coke ending October 14 it is estimated that the production of beehive coke was 183,000 tons, an increase of 10,000 tons from the previous week. Bales of Texas cotton ginned ....................... Total bales ginned in United States .......... 15 September 25, 1922 September 25, 1921 September 25, 1920 1,825,568 1.223,484 1.359,002 3,883,006 2,920,392 2,249,606 Early in October, the number of contracts to sell be came smaller and the European outlook brightened, with the result that quotations rose quickly from 21.65 cents on October 10 to 23.95 cents on October 21. In the last Government report, issued on October 3, the condition of the cotton crop on September 25 was reported as 50 per cent, and the yield was estimated at 10,135,000 bales. Although this was 440,000 bales less than the estimate of the previous month, the bullish nature of the report had been so fully dis counted that its announcement had little effect upon the market. In fact, the figures reported by 13 private agencies had averaged 10,149,000 bales, which com pares very closely with the Government estimate. A l though a crop of 10 million bales is extremely short in comparison with last year’s consumption of almost 13 million bales, there has been no runaway market. An examination of the Government figures shows that in Georgia only 37 per cent, and in South Carolina only 38 per cent, of a full crop was expected, owing to dam age by the weevil. Since farmers had made a great effort this year to raise a large crop in order to take advantage of the high prices, it is evident that the boll weevil may seriously threaten the world’s best source of cotton unless means are discovered to combat it* The trend of prices received by farmers in the past few years is shown by the accompanying chart. A l though this year’s prices have been much lower than those prevailing between 1918 and 1920, they have been much higher than last year’s. Source— “ Weather, Crops and Markets” The supply and takings of this season’s crop of American cotton are indicated by the following figures of the New York Cotton Exchange : Supply and Takings of American Cotton Season o f 1922-1923 Season o f 1921-1922 Season o f 1920-1921 1,968,159 4,112,651 2,943,882 Crop in sight, American, to October 20 of each season. . 3,558,045 3,385,366 2,182,966 5.526,204 7,498,017 5,126,848 Visible supply, American, on October 20 of each season.. 3,118,714 4,383,478 3,335,088 World’s takings of American cotton to October 20 of each season ........................... 2,407,490 3,114,539 1.791,760 (In bales) Visible supply, American, at end of previous season (July 3D .............................. Total ............................. 16 During October, the demand for cotton yarns has in creased. Not only are large quantities being consumed by the carpet mills, but yarns'are in deKsOtton mand for insulated wire and for skirtyarns ings. Some business is being booked from both hosiery and underwear mills, but it is not heavy. Unlike that for natural cotton yarns, the de mand for mercerized yarn has increased but little, and for more than three months sales of this commodity have remained almost constant. Because of the strong statistical position of cotton and the increase in confidence that has followed the settlement of the railroad, coal and textile strikes, de livery of yarns has increased. More than one-half of the orders are for shipment in the future, and some are for delivery as far ahead as February. Since ship ments, especially those from Southern points, were delayed by railroad difficulties, a demand existed for yarns in stock. Consequently, supplies in the hands of spinners and jobbers in this district have decreased and are now light. Spinners have taken advantage of the better demand, the light stocks, and the upward trend of raw cotton to raise their quotations. The greatest increase, both actual and relative, was in Southern carded yarns, which have advanced more than 10 per cent. Although this year’s cotton crop is short, the yield is reported to be of such uniformly good quality that the raw material for carded yarns, which are made of cotton with a shorter staple, may be expected to be relatively higher than that for combed yarns. According to the Department of Commerce the percentage of active spindles during September was 90. The stronger demand has caused the production of the spinning mills to increase since last month. Collections are good, and weavers in particular are paying more promptly than heretofore. The important feature of the cotton goods market during October has been the advance in quotations. In spite of the fluctuations that have taken Corron place in the price of raw cotton since goo s September 1, quotations on cotton goods have steadily strengthened. The general level of prices is now approximately the same as that prevailing a year ago. The most striking advances have been in print cloths, sheetings, and drills. Many mills have now announced their prices on ginghams for next spring. Competition from Southern mills on the lowgrade ginghams is severe, and the presence of some foreign ginghams confined the advance on the better qualities to about one cent per yard. Prices for tapes try remain unchanged. On the accompanying chart is shown the relative position of quotations for cotton goods as compared with those for the yarn and the raw material. The level of cloth prices is relatively lower than it was either in 1914 or at this time last INDEX NUMBERS OF COTTON PRICES 1 NUMBEBS ____American Yarn —— Cloth a Arrlencan 600 \ \\ / A v' :\ 500 — f / t li \i / / Aii t A I \ V 400 . / I / / L1 J i L: 300 •7 / u 200 INDEX ------- 1------- 1------- A /. 100 o 1914 1915 1916 1917 1916 1919 1920 1921 1922 1923 unable to accept orders for immediate delivery because of the lightness of their stocks. Owing to the high cost of raw materials, the uncertainty of the demand from the public, and the preference for novelties instead of staples, mills generally have reduced their stocks to a minimum. In many cases, the only finished goods on hand are those that have accumulated from cancelled orders. As shown by the following table, all exports of textiles declined sharply in 1921 from the peak reached in 1920. Although the exports of cotton and silk goods were greater during the first eight months of this year than in the corresponding period of 1921, exports of wool goods have declined greatly. H ow ever, they are much larger than the average exports for the first eight months of 1911, 1912, and 1913. Exports of Textiles from United States In August, the prices of raw cotton and of cotton yarns were double those of 1914, but quotations on cotton cloth were relatively lower than those on cotton and yarns. Except in 1920, the peaks and low points of the three curves occurred at the same time. Since August, all three prices have advanced greatly. W o o l goods First 8 months of 1922 ..................................... 1921 ..................................... Source— "International Cotton Bulletin” year. Current advances are the result of an effort to correct this difference. These advances have been made possible, however, by the improvement in demand. Satisfactory orders have been placed for staple goods, such as sheetings and print cloths, and novelties like ratines and their imitations are in demand for women’s wear. Towels are in somewhat larger request, and in the upholstery lines the pile fabrics continue to sell actively. Although the selling season for light draperies has commenced, it is too early to determine what the call for these may be. Stocks of finished goods are moderately heavy, but they are decreasing. In this district many mills are running on full time, and the average percentage of activity on a one-shift basis is over 80. The curtailment of production in the New England mills during the period of the strike has doubtless resulted in greater activity in other sections. Collections are good. WOOL During the past month the demand for both woolens and worsteds has increased. Although worsteds for men’s wear are selling in larger Woolen and quantities than they were a year worsted goods ago, their competition has not greatly reduced the sale of woolens. However, in the dress goods field, poiret twills, which are worsteds, are the center of interest. The demand for these fabrics has made the tricotines inactive. Bolivias for cloakings and coatings continue to sell rapidly. Orders for both woolens and worsteds are being booked for both imme diate and future delivery, but many manufacturers are 1920 .............................................. Average, first 8 months of 1911-1913 ........................... Silk goods Cotton goods $4,154,744 $7,159,576 $90,580,816 7,549,560 6,690,616 77.826,304 34,764,680 19,325,272 281,894,952 2.120,976 1.407,000 34,058,872 Owing to the improvement in the demand for goods, operations since June 1 have increased greatly, and at the present time mills are running about 80 per cent of their looms. Weavers report that their stocks of yarn are of medium size. I he American Woolen Company has announced an increase in its quotations on next spring’s lines, and the advance in worsted prices was relatively greater than that in the prices on woolens. Manufacturers in this district have not been able to raise prices, but in general the trend of prices is toward greater strength. Delays in transportation are interfering with the ship ment of both finished products and the raw materials. Collections have not changed since last month and are only fair. Although both weaving and knitting yarns have shared the improvement in demand, the increase of orders for the former has been more Woolen and pronounced, and since business wors e yarns f rom weavers has been extremely dull for the past two years, the change is noteworthy. The increased sales of both men’s wear and dress goods have been reflected in orders for yarn. Because this is the busy season for knitters the demand for knitting yarns is strong and is about equal to that of a year ago. Orders are being booked for delivery throughout the rest of the year. The call for carpet yarns has been better during the past few months than it was in the same period last year, as a result of the activity of the carpet mills following upon the strike. 17 Owing to the lack of orders from weavers, many mills that spin Bradford yarns were idle until late in the summer. Although they have now resumed opera tions, spindles working on French spun yarns are still more active than those spinning Bradford yarns. Since many mills have been operating on orders rather than for stock, the supplies of yarn are light. During the past month quotations on yarns have again advanced, the increase on many amounting to 10 per cent. Collections are improving. Since mills have been buying wool briskly in order to meet the increased call for yarn from worsted manufacturers, the demand for wool has been R aW good. Flowever, there has been no feverish wo° activity, as the buying has been less for speculative purposes than for mill account. Because of their cheapness in comparison with similar imported grades, medium grade territory wools have been much desired, and the scarcity of fine imported wools has made domestic wools more active. Although trading in pulled wools is rather quiet, the demand for them has improved also. Since much of the bonded wool was owned by mills before the new duty went into effect, the reduction in duty had little immediate effect upon prices. In fact, prices have been growing steadily stronger, and Ohio delaine fleeces are now quoted at 55 cents per pound, in the grease, whereas last May they were selling for 46 cents. Not only is wool higher in this country, but in foreign markets as well. The strength of wool prices is due to the scarcity of fine merinos the world over and to the fact that our stocks of domestic wool are light. Now that most of the territory wool, which had been held by pools, has been sold, little wool is obtainable in the west. Pro spective buyers are thus forced into the eastern markets, where stocks also are lighter than usual. Whereas in normal times wool is usually plentiful in the hand of dealers when stocks in the country are low, at the present time supplies in the east are small even though the big movement of wool has been completed. Collections are reported to be good. The probable explanation of this is that the shelves of the retailers are bare and they are anticipating a heavy holiday business. Shirt makers are operating at 100 per cent of capacity, and clothing firms at from 75 to 100 per cent. Although considerable difficulty is reported in getting skilled labor in the stitching and cutting rooms, the labor troubles that threatened the Philadelphia clothing industry last summer have now vanished. At that time the workers in the one plant which was unionized were called out to aid in an attempt to unionize another es tablishment. The strike failed and all clothing factories in the city are now on an open-shop basis. Stocks of raw materials in the hands of manufactur ers are light. The prices of woolen and worsted goods are stronger, and quotations on silk and cotton goods for shirts are from 10 to 15 per cent higher. Because of the latter advances, shirt prices are very firm, but they are no higher than they were last year. In spite of the increased cost of raw materials, clothing manu facturers are encountering decided resistance to price advances. The tendency is now upward, but this year's level is somewhat lower than last year's. Makers of shirts report that collections are slow, and that western customers are paying more promptly than those in other districts. Collections in the clothing lines were exceedingly slow until the middle of October. Then money arrived in great quantity in settlement of over-due accounts. Since customers were anxious to obtain further commitments of goods, they hastened to put themselves in good standing. Although the value of the clothing manufactured in Philadelphia, when compared to the value of that pro duced in New York and Chicago, is relatively small, CLOTHING Although salesmen have been on the road with the spring lines of clothing for only a few weeks, the pres ent indications are that the demand for spring suits will be heavier than it was a year ago. However, the warm weather in the early fall has been a great deterrent to activity in fall clothing, and the demand for cloaks and suits is only fair, although that for overcoats is good. Manufacturers of shirts report that the call for their product is excellent. Orders for shirts are being placed both for the near future and for spring, but it is sig nificant that the proportion of orders for spot delivery is much higher this year than it has been in the past. In the manufacture of clothing Philadelphia ranks third. In contrast to the situation in New York, the larger proportion of the clothing manufactured in Philadelphia is for m en’s wear. The sales figures, which are partially estimated, are for the twelve • m onths ending July 1, 1922 18 Source— Monthly Letter, National Credit Office the sales of this city rank third in importance. As in dicated by the accompanying chart of clothing sales, the production of men’s wear in Philadelphia is over three times as great as that of women's wear, which is just the reverse of the situation in New York. The chart, showing the sales per firm in the five prin cipal clothing centers, portrays significant differences in the size of the firms in those markets. In Chicago the sales per firm in men’s wear are 2.5 times as large as the sales per firm in women’s wear, on account of the presence of one large company that manufactures men’s clothing. In New York, however, the factories mak ing women’s goods are the larger. In Philadelphia the size of the plants in the two lines is approximately the same. The relatively smaller size of Philadelphia firms is apparent. sales figures, which are partially estimated are for the twelve m onths ending July 1, 1922 have been put in operation, and yet the silk industry is still less active than either the cotton or wool industry, its production schedules averaging not more than 60 per cent. And although quotations on raw silk have advanced sharply, mills have increased their prices but little, for manufacturers desire to keep the level of prices steady in order that the demand may not be weakened. Owing to the financial risk that is entailed when heavy stocks of raw silk are carried, the supplies kept by mills generally are light. For the same reason, stocks of finished goods are not excessive. Manufac turers of ribbons, many of whom have accumulated heavy inventories of finished product, report that their stocks are decreasing. Collections, although unchanged, are satisfactory, and are better than they were last year. Until the middle of October, the price of raw silk made a remarkable advance. Extensive buying for .American account, together with the apK<silk Parenf scarcity in Japan, caused silk quotations to rise to the highest point reached since 1920. The present prices are almost treble those prevalent before the war. But the advance had the effect of curtailing purchases by the mills, as many silk consumers believed that the rise was purely speculative. Thus the high prices resulted in a market that was inactive. The trend of silk quotations since 1920 is shown by the accompanying chart. The Source— Monthly Letter, National Credit Office SILK Although the demand for broad silks has improved decidedly, it is not yet satisfactory. However, the Sep tember sales were not only greater than those of September, 1921, but much larger goods tjian tpe sa]es 0f the month before. Crepe fabrics continue in request, and there are in dications that the demand is broadening. Neverthe less, the demand for yarn-dyed silks is still poor. Vel vets, especially chiffon velvets, and some satin-faced weaves are very popular. Although sales of ribbons cannot be called heavy, their volume continues to in crease. Customers are largely ordering the staple varie ties of narrow ribbons, but in the wide ribbons they want novelties. Tie silks are in small request. More orders are being booked for immediate than for future delivery, but the proportion of future orders is increasing. Since June 1, a large number of looms Price of Yokohama Double Extra A Kansai silk. Recent quotations for this product have been the highest since May, 1920 Source— “ Silk” 19 Visible stocks in Japan are light, but as shown by the following figures of the Silk Association of America, stocks in the principal warehouses o f this country in creased by 4,280 bales during September. American Imports, Stocks and Deliveries of Raw Silk (In Bales) 1920 A ugust............. September . . . . October ........... 1921 A ugust............. September....... October ........... 1922 January ........... March .............. May .................. July................... A ugust............. September....... Imports Storage 1st o f month during month 52,265 51,130 51,523 17,866 18,899 23,036 24,804 28.982 19,268 26,895 27,474 32,515 17,966 17,017 9,396 34,590 35,906 23,084 40,177 19,746 34,842 25.575 39,813 38,492 Deliveries to mills 19,101 16,624 11,112 33,557 31,769 26,816 33,842 26.651 33.284 24,996 34,772 34,212 Operations in the Hosiery Industry Storage end o f month (In terms o f dozens o f pairs) 51,130 51,523 49,807 Number o f reporting firms— 37 F ir m s sellin g to the w h o lesa le tra d e: Product manufactured during September .................................... Finished product on hand Sep tember 30 .......................................... Orders booked during September Cancellations received during September .................................... Shipments during September........ Unfilled orders on hand Septem ber 3 0 ................................................... 18,899 23,036 19,304 31.139 22,077 20,826 27,474 32,515 36,795 — 3 .9% — 7 .8% + 4.1 “ + 1 1 5 .4 “ + 3 6 .4 “ + 4 0 .5 “ — 74.2 “ + .2 “ + 5 3 .8 “ — 3.8 “ + 5 2 .5 “ — 1 2 .7 “ + 13.0% — 2 6.8 % — + 7 .5 “ 34.3 “ + 2 1 .1 “ + 3 8 .4 “ — + 1 7 .0 “ 29.4 “ — 1 .7 “ — 7 .5 “ Num ber o f reporting firms—-12 F ir m s sellin g to the reta il tra d e: Product manufactured during September .................................... Finished product on hand Sep tember 30 .......................................... Orders booked during September Cancellations received during September .................................... Shipments during September........ Unfilled orders on hand Septem ber 3 0 ................................................... HOSIERY For several months hosiery failed to show the im provement that was noted in many other manufacturing lines, but during the past month conditions have grown better. Sales have increased considerably, and al though the bulk of the orders have been for prompt deliverv, a fair volume is for shipment during December, January, and February. Last month attention was called to an increase in both the prices and the orders for cotton hosiery. Not only has this demand con tinued and prices been well maintained, but in addition there is a call for both women’s and men’s wear in silk and in a silk and fibre mixture. Buyers, however, are largely concerned with price, and the cheaper lines are selling best. For this reason the gain in business is probably greater in the seamless mills than in those making full-fashioned wear, although in the latter class the volume of business is larger. The greatest concern of hosiery manufacturers is that, excepting in cotton lines, prices when changed, have been lowered, and this in the face of a much higher silk market and, in a few cases, of a slight advance in labor cost. Those manufac turers who had contracted for silk some time ago are es pecially fortunate, but the position of those who have to enter the market now is one of difficulty. Conflicting reports are received regarding so-called heather hos iery, which is made of wool, a mixture of wool and fibre, or various other combinations of yarns. Some manufacturers report an improvement in this depart ment also, but others state that the large orders placed about the opening of the year, based upon a continua tion of last year’s demand, have resulted in an over stocked condition at present. It is likely, however, that cooler weather will bring a larger sale for these heavier lines. A summary of the business done by reporting firms in the Third Federal Reserve District follows: Sept., 1922, Sept., 1922, compared with com pared with Sept., 1921 August, 1922 — 7.5.“ UNDERWEAR An increased demand is reported for heavy-weight underwear, and as nearly all the orders call for imme diate shipment, it would appear that buyers are finding their stocks low at a time when the selling season is about to open. This business is coming mostly from houses that had previously contracted for part of their needs, but some also comes from trade that had refused to buy earlier in the hope that late in the season prices would weaken. Quotations on woolen garments have been advanced to meet, in part at least, the increase in the cost of wool, but although the cost of cotton has also advanced, manufacturers of cotton underwear find it extremely difficult to obtain any increase in the price of their product. Orders of only moderate size are being booked for light-weight underwear. Firms that failed to buy at or near the opening of the season appear to be in no hurry to make commitments. The feeling among the manu facturers is, however, that prices are not likely to be lower, not only because of the strength of the raw material market, but also because wages are tending upwards and the chance of lowering the cost of manu facture is small. Production is slowly increasing and varies from 60 to 100 per cent of capacity in the dif ferent mills. A summary of the business done by reporting firms in the Third Federal Reserve District follows: 20 Conditions in the Underwear Industry Sept., 1922, Sept., 1922, com pared with compared with August, 1922 Sept., 1921 (In terms o f dozens) Number o f reporting S u m m er u n d erw ea r: Product firms— 14 manufactured during Finished product on hand Sep tember 30 ..................................... Orders booked during September Cancellations received during Shipments during September........ Unfilled orders on hand SeptemNum ber o f reporting W in t e r u n d e r w e a r : + 2.0% — 35.9% + 1 4 .8 “ +32.6 “ +126.6 “ — 84.5 “ — 8.2 “ — 47.4“ + 14.1 “ — 33.7 “ firms— 10 Product manufactured during September .................................... Finished product on hand SepOrders booked during September Cancellations received during September .................................... Shipments during September........ Unfilled orders on hand Septem ber 3 0 ............................................. — 3.8% — 37.8“ —26.7 “ + 12.3 “ —36.0 “ has been no necessity of adjusting these to meet the wages paid to workmen in similar occupations. Sales of rugs and carpets at retail appear to be ex cellent, as manufacturers are receiving a great number of orders requesting that shipments be rushed forward by express. Linoleum makers do not all observe this period of the year as ’a new season, but those that do, report a large influx of new business; and the others also are report ing satisfactory sales. No changes of importance have been made in prices, although costs are mounting. The increase in the duty on linseed oil and higher taxes on jute have caused these commodities to strengthen in price, and an advance in the wages of common labor has been made in some factories. Plants generally are running at full capacity, and in some cases night shifts and Sunday operations are necessary to keep pace with the demand. All parts of the country are buying, but probably the greatest im provement has occurred in New England, where earlier in the season business had been dull as a result of the number of strikes in that section. Collections in all floor covering lines are reported as being satisfactory. FLOOR COVERINGS The new season for the sale of rugs and carpets was opened during the week beginning October 9. Instead of holding the usual auction sale, the largest manufac turer issued a price-list containing offerings of his goods at quotations guaranteed until March 1. The other makers likewise issued price lists, and as was ex pected, all quotations were higher than those of last April, the changes in nearly all cases ranging from 7 to 12 per cent. In a few lines the gain was as high as 15 per cent, but the average of all increases is probably 8 or 9 per cent. As, however, the principal raw mate rials which enter into the making o f carpets and rugs —wool, cotton, and jute— are considerably higher in price than they were six months ago, it is generally be lieved that the advances now made on the finished products are still insufficient to cover the increase in the cost of manufacture. A large number of orders were carried over from last season by some mills, and the new business received is so heavy that during the first few days of the season many lines were entirely sold for delivery over the com ing six months and were therefore withdrawn. A xminsters and Wiltons, as in the past, have been the most sought for, but all varieties of rugs and carpets have shared in the demand, and manufacturers o f chenilles, velvets and tapestries are running their mills at or near full capacity. In fact, that branch of the trade which makes fibre rugs is the only one which reports a lim ited call for its products. Wages remain stable. The reductions made a year or more ago from the peak prices paid in 1920 were not large, and therefore there 21 LEATHER Orders for shoes for delivery during the balance of this year have been received in good volume, and a number of manufacturers report sales callShoes ing for shipment during the early months of 1923 and some for delivery as far ahead as March. The orders for 1923 shipment are for the most part for staple lines, and, as usual, many of the early orders originate in the South. Those man ufacturers whose output consists of shoes of the latest styles are able to sell only for prompt delivery, and this method of merchandizing in this class of shoes seems likely to continue as long as fashions in footwear, change so rapidly. Because of the advance in the price of leather and cotton, many makers of shoes have found it necessary to raise the price of their finished product. But a num ber of firms are still booking orders at the old quota tions. Slight advances in wages are reported by some of the country factories, but in Philadelphia wages are unchanged. The present agreement does not expire until December 1. According to a report issued by the Department of Commerce, the number of pairs of boots and shoes made in this country during August greatly exceeded the number made in July. The August total of 28,077,392 pairs was the largest for any month of this year, with the exception of March, and the July figure, 23,044.727 pairs, the smallest. Collections are reported to have improved and are now satisfactory, except in some districts of the South. Even, there, however, they are better than they have been for some time. A summary of the business done by boot and shoe manufacturers reporting in the Third Federal Reserve District shows that production in September increased 1.6 per cent, as compared with August, but decreased 7.3 per cent as compared with September, 1921. Conditions in the Boot and Shoe Industry (I n terms o f pairs) Number o f reporting firms— 44 Production ..................................... Shipments ....................................... Orders booked ............................. Orders on hand............................. Cancellations ................................. Stocks on hand............................... Number of operatives on payroll September, 1922, September, 1922, com pared with com pared with September, 1921 August, 1922 + - 1 .6 % 1 .4 “ +38.7 “ + 3.3 “ — 14.1 “ + 3 .4 “ — 7.3% + 2 .6 “ + 1 3 .6 “ — 3.8 “ — 24.1 “ + 5 .0 “ October sales in the wholesale shoe business are seldom as large as those for September. Nevertheless, the business done has been steady and of considerable volume. Deliveries, however, have been somewhat delayed by the freight embargoes. November ship ments promise to be only slightly smaller than those for October. A report of conditions in the wholesale shoe trade will be found on page 8. Retail sales of shoes during October are reported to have been satisfactory, but they were somewhat re tarded by the unusually warm weather of the first half of the month. Prices paid by retailers are rising, but prices to the consumer so far have changed only slightly. The following table shows the marked improvement in the retail shoe business of the reporting firms in this district during September, 1922, as compared with that Retail Shoe Trade (In terms of dollars) 1. N et S a le s : (a) September, 1922, as compared with August, 1922 ................................................................ (b) September, 1922, as compared with Septem ber, 1921 ....................................................... (c) July 1 to September 30, 1922, as compared with July 1 to September 30, 1921.......... +38.8% + 1 8 .2 “ + 2 .4“ 2. S tocks (selling price) : (a) September, 1922, as compared with August, 1922 ................................................................ (b) September, 1922, as compared with Septem ber, 1921 ....................................................... 3. R ate + 4.0“ — 21.8“ of T urnover (times per year based on cumulative period) : (a) July 1 to September 30, 1922 ........................... (b ) July 1 to September 30, 1921........................... Number of stores reporting above items: 1..................28 2 and 3 ..................24 2.4 1.9*1 in September, 1921. Sales increased 18.2 per cent, and stocks decreased 21.8 per cent. Prices for all leather are again higher than they were a month ago, and sales continue to be heavy. Pro duction is reported to have increased someLeather what, but stocks of finished leathers, al though adequate, are decreasing. The re port of the Department of Commerce for the month ending August 31 shows that the decreases in leather stocks during August were as follows : Backs, bends and sides................................................ 4.7 per cent Belting butts ................................................................. 1.7 “ Offal, sole and belting.................................................. 2.3 “ “ Cattle side, upper.......................................................... 7.8 “ Calf and kip......................................................................... 8 “ Goat and kid................................................................... 4.0 “ Cabretta ......................................................................... 12.2 “ “ In heavy leathers sales to both the shoe and belting trades are large, and prices are advancing. An in crease in price that is fairly typical of the course of the market is that for belting butts, which rose during the month from 72 to 75 cents per pound. Sales of leather belting from week to week show an almost continued increase, and the last published figures, for the week ending September 30, are the largest for the year. It is now estimated that sales of belting are about normal, when it is taken into con sideration that at the present time there are practically no sales for new equipment. This means that approxi mately 30 per cent of the business done in times of expansion is missing, and that the business now being done is about 70 per cent of the maximum. Prices for belting have again advanced. Upper leathers are all moving freely and at increased prices. In the upper leather tanneries in Philadelphia wages have advanced twenty per cent during the month, and as raw hides and skins continue to rise, the tanner of upper leather is facing a heavy increase in the cost of his product. Domestic demand for side leathers, calf, and kid con tinues to consume a large part of the production of these, and exports, particularly of kid, are improving. In this connection it is reported that the position of the German tanners is extremely critical and that production in that country is being curtailed. Sheep leather tanners are able to operate their plants at about the limit of capacity, and prices are higher for their product because of the advance in the raw skin markets. An especially good demand is reported for chamois and hat leathers. Although the market for hides and skins is higher than it was a month ago, the gain during the period has been less than during recent months. * skins™** Heavy native steer hides have ad vanced only one cent per pound, to 23 cents, and calf skins, too, have risen about one cent per pound to 23 cents. The first drop in prices that has been reported for a considerable period occurred at a recent sale when light native cow hides sold at 1 8 's 22 to mill delays, so that not infrequently the wholesaler must wait from four to six weeks for his goods to arrive. Transportation delays are reported by mills only on their outbound shipments. Labor, especially unskilled, is becoming scarce, and much restlessness in the workers’ ranks is noted. The labor turnover is becoming greater, and most manu facturers have increased their wage scales about 10 per cent. Envelope makers report a scarcity of both skilled and good unskilled workers. Reports on collections vary. Some firms characterize them,as being only fair, but the majority'find them to be good. On the whole, collections are much better than they were a year ago. cents per pound, representing a decline of three-eighths of a cent. The season for the best quality of hides and calf skins will continue for about another month, and present prices are expected to be maintained for that time at at least. This is considered probable because of the fact that packers are sold up and the visible supply is very small. Goat and sheep skins of the various descriptions have made further advances in price, but in these, too, the gain over a month ago is comparatively small. India goat skins are now of the good season, and the demand for these is heavy. PAPER All grades of paper are in excellent request, and reports from mills and wholesalers alike show an even better demand than prevailed last month. The im provement in the trade since October, 1921, is most encouraging. Nearly all of the mills in this district are operating at capacity on orders for immediate de livery, and in general, manufacturers are refusing or ders for future delivery, except at prices prevailing on the date of shipment. Wholesalers have noted a ten dency on the part of their customers to anticipate their needs for longer periods, and since September, orders for future delivery have been more frequent. More over, orders are larger than they have been for many months. Prices for finished papers of all grades continue their upward movement and are now about 10 per cent higher than they were on August 31. Raw materials, with the exception of coal, are likewise going up, as is shown by the following table. PAPER BOXES Prices of Raw Materials Current Price Price. Sept. 20, 1922 $34 to $40 $32 to $36 Mechanical pulp, No. 1 imported Mechanical pulp, No. 1 domestic 28 to Sulphite (foreign) No. 1 strong unbleached (ex-dock, Atlantic Port) ........................................... Sulphite (domestic) bleached... 4x /2 4 to 3<f to 4y£ to 4 l/ 2 2 iM 4% 4 32 to 2 to 4G to 4 y 2 Finished stocks at mills are reported as decreasing and are, on the whole, light. Stocks of raw materials are from light to normal, but no mills except those that utilize waste paper, report any difficulty in securing them at the new prices. Wholesalers’ stocks also are decreasing in some lines, but in most cases this is due to inability to secure prompt deliveries from the mills. Many manufacturers are behind in their shipments, and freight embargoes on most of the railroads have added 23 Paper boxes are in better demand than they have been for some months, with the exception of boxes for the hosiery trade. Makers of candy, shoe, sweater, hardware, and shirt boxes report that their output is large, and nearly all of the plants devoted to the manu facture of these are operating at full capacity. But manufacturers who specialize in the production of boxes for the hosiery trade report only a moderate demand, which is far from satisfactory for this season of the year. Normally, October is a busy month in the hosiery trade and therefore in the hosiery-box industry also; but operations in hosiery-box plants range at present only from 50 to 85 per. cent of capacity. The demand for corrugated boxes is somewhat sporadic, but plant operations are as high as 85 or 90 per cent of capacity. Price cutting, which has been indulged in extensively by box manufacturers, has been temporarily checked, although it is still in evidence on quotations for hosiery boxes. The steady advance of chipboard prices, how ever, is making price cutting a factor of decreasing im portance, and most manufacturers are contemplating the raising of prices to a point consistent with the pre vailing costs of board. Indeed, some have already ad vanced prices. The raw material market still continues its movement upward, and some delays in the delivery of board are reported. Chipboard, which was quoted at $35 per ton in June, has now risen to $58 and $60 a ton. Strawboard, for use in corrugated boxes, is now $75 per ton, in contrast to $40 per ton in June. Jute liner is selling at close to $88 per ton, an advance of nearly $30 over June quotations. Paper mills making boxboards are not accepting orders for future delivery, except at prices prevailing on the date of shipment, because of the uncel tainty of their supply of raw materials. Waste paper, which is the base material in the manufacture of chipboard, ranges now from $22 to $30 per ton instead of from $12 to $15 as in June. One large mill making this class of board is frequently compelled to operate on a 50 per cent basis during one or two days of the week, Output because of its inability to secure an adequate supply of waste paper. Delays in deliveries of raw materials to box manufacturers are due in part to the inability of mills to make prompt shipments and also to the freight embargoes in effect on many railroads. Products Increasing difficulty in obtaining skilled workers, es Cigars, large pecially female, is experienced by many manufacturers, *Class A ----but only a few firms report any recent wage advances. Class B .. .. Class C . . . . Most box makers are paying the same wages as pre Class D . . . . vailed a month ago. Class E. . . . Collections may be described as being from fair to Total . . . . good. TOBACCO Makers of cigars report without exception an even better demand this month for their products than last month. Most of the large manufacturers are Cigars heavily oversold and are obliged to allot shipments to their customers in order to dis tribute their product equitably. This condition, which has prevailed with some firms for the past three months, has thus far shown no signs of abatement, although it is possible that many of the orders are duplications. The majority of the larger manufacturers are operating their factories at full capacity, and a few are increasing their output by opening new plants. Smaller manufacturers have also increased their production and some of them are operating on a 100 per cent basis. Others are running at only from 50 to 80 per cent, but reports from two of these state that, though their orders war rant 100 per cent operations, they are unable to secure sufficient help to maintain capacity production. Manufacturers who make a five-cent cigar state that they are unable to supply the demand; but none are contemplating a material increase in their output of cigars of this grade. For one thing, the raw material market is too uncertain to warrant the addition of new machinery to make them, and as most of the five-cent brands are made from clippings that cannot be utilized in the better brands, the output of a manufacturer is necessarily limited to his supply of scrap. Despite the call for the five-cent cigar, the demand for the better grades of cigars has suffered little, and the ten-cent cigar is still the best seller. The following table based on statistics compiled by the Bureau o f Internal Revenue shows the output of cigars and cigarettes in the United States, for August, 1922, as compared with August, 1921. Prices of all cigars are firm, but reports of advances are rare, the present policy of manufacturers being to continue their current prices. Tobacco leaf, both wrap per and filler, of foreign or domestic origin, continues its upward movement. A reduction of 25 cents per pound in the new tariff schedule on foreign wrapper, which went into effect this month, will help manufac turers who use Java or Sumatra wrappers. The new rate is $2.10 per pound, on unstemmed. of Cigars and Cigarettes in United States Increase (-+-) or Decrease (— ) No. o f W ithdrawals August, 1922 August, 1921 Quantity Per Cent +29.77% — 15.93 “ — 5.36 “ — 13.33 “ +22.21 “ 261,671.803 143,480,922 223,782,597 9,667,863 2,560,996 201,629,692 170,686,352 236,472,764 11,154,806 2,095,419 4-60,042,111 27,205,430 — 12,690,167 — 1,486,943 + 465,577 641,164,181 622,039,033 4-19,125,148 t+3.07% — Cigars, small 60,498,280 53,630,000 4- 6,868,280 + 12.80“ Cigarettes, large ........... 1,005,642 1,447,104 — 441,462 —30.50 “ Cigarettes, sm all.......... 6,373,890,453 5,136,577,133 + 1,237,313,320 +24.08 “ 24 * Class A includes stogies, cheroots, and cigars not over 5 cents each at retail, f Average. Stocks of cigars in the hands of manufacturers are decreasing and in most cases are light. Most raw ma terials can be secured in any quantity at prevailing prices. Many firms have granted wage advances recently, and the pay scale throughout the industry is now from 7 to 10 per cent higher than on August 1. Despite the higher wages prevailing, skilled labor is very scarce in the larger cigar manufacturing centers, and in some instances factory output is being curtailed by the lack of sufficient labor. Collections are better than they were a year ago and in general are good. Those manufacturers who are oversold state that collections are very good. The domestic tobacco crop will be considerably smaller than earlier estimates indicated, reports from all Tobac o ^ie *mPortant tobacco growing centers » ^ showing a considerable decrease in yield. The United States Department of Agri culture reduced its estimate bv 72,000,000 pounds on September 1, and an analysis of the figures shows that nearly all of the decline occurred in Kentucky. How ever, the forecast of October 1 was greater by 2,800.000 pounds than the previous estimate. The indicated yield for the United States on October 1 was 1,355.456,000 pounds, as against $1,425,000,000 pounds on August 1. A cablegram to the United States De partment of Commerce from the Consul at Havana shows that there is a considerable decrease in the 1922 Cuban crop as compared with that of 1921. The pro duction for all districts is estimated at 304,000 bales, in contrast with the total production during 1921 ot approximately 355,000 bales. The estimated yield for Lancaster County, Pennsyl vania, as reported by the Lancaster County Farm Bu reau, is 75 per cent of the 1921 crop. The York County crop is apparently smaller than the Lancaster County crop. The excessive moisture during the early part of the growing season and the extreme drought during the latter part contributed chiefly to this result. Some of the Connecticut shade-grown tobacco was cut and injured by severe storms, and the crop in that state is smaller than in 1921. Most of the 1921 Pennsylvania crop is now in the hands of dealers and manufacturers, less than 10 per cent being still held by growers. First grade wrappers for binders, of the 1921 crop, are now selling at from 30 to 35 cents per pound; first grade wrapper B ’s, 1921 crop, at from 22 to 24 cents; and 1921 fillers, at from 8 to 10 cents. Approximately from 33 to 40 per cent of the 1922 Pennsylvania crop has been bought in the sheds by manufacturers and dealers, at a contract price o f 17 cents for wrappers and 4 cents for fillers. That portion o f the 1922 crop not previously contracted for is now bringing an average of from 18 to 20 cents per pound at the farm, which is 4 cents higher than last vear’s price of from 14 to 16 cents. Tobacco growers in Pennsylvania are showing a greater tendency to hold their crop in storage, in anticipation of higher prices, than they did last year. The price trend of all grades of tobacco is upward. Havana and Porto Rican fillers are from 30 to 50 per cent higher than they were a year ago. Sumatra and Java wrappers of from good to best grades cost from $3.90 to $5.25 per pound, landed in Atlantic ports. The 1921 Connecticut shade-grown wrappers, best grade, are selling at from $3.75 to $4.00 per pound. The 1922 prime Connecticut shade-grown wrappers without streaks, spots, or discolorations, are quoted at $4.25 to $4.75 per pound. from rot, because weather conditions prevented the growth of this fungus. On the whole, it may be said that crops throughout this district were brought to better maturity because of ideal conditions for har vesting. Crop yields, despite the adverse weather conditions during the latter part of the growing season, are greater than they were in 1921, except in the case of corn and tobacco. It is estimated that the yield of corn will be from 10 to 15 per cent less than in 1921, and reports from Lancaster County indicate a yield of tobacco that is only 75 per cent of that of last year. The potato crop, it is thought, will prove to be greater this year than last, except in Huntingdon and Wyoming Coun ties, Pennsylvania, where it is smaller. The New jersev yield is estimated as being 40 per cent larger than in 1921, and the Lancaster County output, 50 per cent greater. The 1922 hay crop is from 15 to 50 per cent larger than last year’s, and the apple crop from one and a half to four times larger. Reports from Clearfield County show a yield of apples equal to 150 per cent of last year's crop ; from Berks County, a yield of 200 per cent; from Lancaster County, of 400 per cent; and from the state of New Jersey, of 400 per cent. Dauphin County is the only reporting county to show a smaller crop than last season, the estimates by the county farm bureau pointing to a 15 per cent decrease. The peach crop in the Third Federal Reserve District this year was nearly six times as large as it was last year, and the state of Delaware again came to the front as a peach growing region. The following chart shows how the yields of three of this year’s most bountiful crops compare with the yields in 1921 and with the ten-year average. AGRICULTURE The long drought which prevailed throughout the district during August and September and continued unbroken until about October 10 has exerted a marked influence upon the maturing of all crops. The corn crop in many counties ripened before the ears were fully de veloped, the late potato crop was adversely affected bv the drying up of vines, the cabbage and tobacco crops were also hurt, and the yields of the latter are smaller than in 1921. Winter wheat and cover crops have been much delayed by lack o f rain, and a heavy rainfall is required to assure a good wheat yield next year. In many regions pastures were prematurely killed by drought. In the high altitude counties of Pennsylvania frosts normally destroy pastures by October, but this year pastures dried up in many districts before October. This dry spell, however, has not been without its ad vantages. Farmers have been able to start their har vesting earlier than usual; the corn crop will all be cut by November 1, and from 60 to 90 per cent of it will be husked by that date, which is about a month earlier than normal. The winter apple crop will be harvested completely bv November 1. Potatoes are relatively free According to the preliminary estimates of the Department of Agriculture the output of peaches, apples, and potatoes will show an enormous increase in 1922 over that of 1921. The heavy output of potatoes in the present year is due largely to increased yield per acre rather than to increased acreage 25 Sources— ",Agricultural Year Book,” " U. S. Statistical Abstract” and " Weather, Crops and Markets” Although a few crops this year are lower in price than they were last, the following chart shows that of four staple farm commodities only potatoes have de creased in price; and with these, the increased yield should counterbalance the lower price. Milk prices, for the country as a whole, are the same as last year. Corn is about the same, and alfalfa is slightly higher. A study of the chart will show that potatoes, corn and alfalfa are very near the pre-war prices o f 1914, but milk is considerably above the price at that time. last year. This has been such as to make hog fattening more profitable than in 1921, because corn, the principal fattener, is no higher than it was last fall. An interest ing feature concerning this chart is the convergence of the prices for hogs, sheep, and beef cattle, which about September 1, 1922, touched the same level. The relatively greater fluctuation in the price of hogs than in that of sheep and beef cattle, over a period of years, is attributable chiefly to the fact that hogs can be raised for market in shorter tim e than sheep or steers. Consequently, there can be a sharp increase or decrease in the number of hogs in a year. Prices quoted are per 100 lbs, live weight The price of m ilk is still being maintained well above pre-war levels, but the other products have returned to approximately the levels of 1914 Source— " Weather Crops and Markets” and Interstate Milk Producers’ Association In general, the number of hogs on farms in this district is from 5 to 10 per cent greater than in 1921. Prices for hogs are higher than last year, and many farmers have found it more profitable to fatten them than in 1921. On account of the low price prevailing for corn, it should be more profitable to sell com in the form o f hogs than to ship it to market. The ac companying chart shows the rise in hog prices since 26 Source— " Dun’s Review” Reports from nearly all of the agricultural bureaus indicate that returns per crop-acre will be as high, as, or higher than, they were in 1921. Necessity forced the farmer to produce crops this year at a cheaper cost than he did in 1921, and as a result his earnings for 1922 will be greater than they were last year. Increased sales of agricultural machinery, farm implements, and tractors throughout this district, indicate greater pros perity in rural communities. C O M P IL E D A S O F O C T O B E R 23, 1922 This business report will he sent regularly without charge to any address upon request 27 B U S IN E S S THROUGHOUT C O N D IT IO N S THE U N IT E D STATES AS REPORTED B Y FEDERAL RESERVE BOARD NOVEMBER 1, 1922 IFFIC U LTIE S in handling the in creased freight traffic due to car shortage have become an important factor in the current industrial situation. The total number of cars loaded increased during September chiefly because of heavy loadings of coal and livestock. The produc tion of bituminous and anthracite coal was restricted in the latter part of September, when a shortage of over 40,000 coal cars de veloped. A shortage of box cars appeared in the first week in August, and by October 7 amounted to 71,063 cars. The difficulty in securing cars for shipment has led to some curtailment of production in lumber and finished steel products. The output of pig iron and steel ingots, however, has ex panded steadily since August. Cotton and woolen mills continue to oper ate at close to capacity. Agricultural re ceipts continue to be heavy. Wholesale trade showed improvement during September. Increases occurred in sales of hardware and furniture, which re flected the large volume of residential building. Seasonal declines occurred in D sales of farm implements and automobile supplies, but sales were much larger than a year ago. Retail trade continued to improve during September, and department store sales were larger in all districts than in September, 1921. The wholesale price index of the Bureau of Labor Statistics declined from 155 in August, to 153 in September, owing chiefly to the fall in coal prices. , Prices of build ing materials and metals continued to rise. Bank debits in 140 cities, excluding New York, were 4 per cent larger in September than in August, 1922, and 9 per cent larger than in September, 1921. Loans of reporting banks in leading cities show an increase of $366,000,000 for the four weeks ended October 18, and demand deposits advanced $245,000,000. Federal Reserve Bank discounts for the four weeks ended October 25, increased $49,000,000, and note circulation expanded by $56,000,000. The reserve ratio shows a slight de crease from 78.4 to 77.6 per cent.
@FedFRASER