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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT NOVEMBER i, 1924 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK o f PHILADELPHIA SUMMARY OF BUSINESS CONDITIONS IN THE UNITED STATES Production o f basic commodities, factory employ ment, and distribution o f merchandise increased in September. During September and early in October there was a considerable increase in the volume o f borrowing for commercial purposes. The Federal Reserve Board’s index o f production in basic industries, adjusted to allow for seasonal varia tions, rose 9 per cent in SeptemProduction her, the first advance since last January. Increased activity was reported in many lines o f industry including textiles, iron and steel, and coal. Factory employment increased 2 per cent during September, reflecting larger working forces in nearly all reporting industries. Average weekly earnings o f industrial workers increased slightly, owing to a decrease in the extent of part-time employ ment. Building contracts awarded showed a small seasonal decline in September, but were considerably larger than a year ago. Crop conditions, as reported by the Department o f Agriculture, showed a further slight improvement during September, and the estimates o f production for spring wheat, oats, barley, and white potatoes on O cto ber 1 were larger than the month before. Estimates o f the yields o f corn, tobacco, and cotton, however, were reduced. Marketing of wheat was exceptionally heavy in September and exports o f wheat and cotton were larger than for the same month o f any recent year. Distribution o f commodities, as reflected in railroad shipments, increased during September and was greater than last year, owing to larger Trade loadings o f miscellaneous mer chandise, grain, and coal. Wholesale trade was 11 per cent larger than in August, as a result o f increased business in almost all reporting lines. Sales o f groceries and drugs were larger than a year ago, while sales o f meat and shoes were smaller. Retail trade showed more than the usual seasonal increase in September, and sales o f I n d e x o f 22 b a s i c c o m m o d i t i e s c o r r e c t e d f o r s e a s o n a l v a r i a t io n (1919 = 10 0 ). L a t e s t fig u r e — S e p t e m b e r , 102. I n d e x o f U . S . B u r e a u o f L a b o r S t a t i s t i c s (1913 = 100, b a s e a d o p t e d b y B u r e a u ). L a t e s t fig u r e — S e p t e m b e r , 149. 2 T he B u s i n e s s R N ovember e v i e w FACTORY EM PLOYM ENT PERCENT PER CEMT 150 150 lOO lOO 50 50 O 1920 1919 W e e k ly fig u r e s f o r m e m b e r b a n k s in 101 l e a d i n g c it i e s . L a t e s t f ig u r e — O c t o b e r 15. department stores and mail order houses were consider ably larger than last year. Merchandise stocks at department stores increased more than usual during September, but continued to be slightly smaller than a year ago. Wholesale prices o f farm products, clothing, fuel, and metals declined somewhat in September, while prices o f food products, building Prices materials, and chemicals ad vanced. The general level o f prices, as measured by the Bureau o f Labor Statistics index, was slightly lower in September than in August. During the first half o f October quotations on wheat, flour, cattle, hogs, wool, and rubber increased, while prices o f cotton, lumber, and gasoline declined. During the five weeks ending October 15 loans and investments o f reporting member banks in leading cities increased by more than Bank credit $600,000,000. Credit demand for financing the marketing o f crops and the fall activity o f trade were reflected in increased 1921 1922 1923 I n d e x f o r 33 m a n u f a c t u r i n g i n d u s t r ie s (1919 = 10 0 ). S e p t e m b e r , 90. 1924 L a t e s t fig u r e — commercial loans throughout the country and the total volume o f these loans rose to a level considerably above the peak o f October, 1923. Member bank investments in securities continued to increase and loans on stocks and bonds also advanced. A further growth o f demand deposits carried their total to the highest figure on record. A t the Federal reserve banks, discounts changed but little in September and declined in the first three weeks of October, while holdings of acceptances increased considerably and there was also some increase in United States securities. A s a consequence, total earn ing assets were larger than at any time since early in the year. Larger currency requirements partly seasonal in character were reflected between August 1 and O cto ber 1 in an increase o f $140,000,000 in the total volume o f money in circulation. Money rates in the New Y ork market remained rela tively constant in the latter part o f September and the early part o f October. On October 15 the discount rate o f the Federal Reserve Bank o f Minneapolis was reduced from Al/ 2 to 4 per cent. TABLE OF CONTENTS PAGE Agriculture .............................................. Automobiles ............................................... Bankers’ acceptances .............................. Building .................................................... Business indicators .................................. Cement ...................................................... Cigars ........................................................ Clothing, men’s wear ............................ Coal, anthracite ...................................... Coal, bituminous .................................... Coke ............................................................ Commercial paper .................................... Cotton goods ........................................... Cotton, raw .............................................. Cotton yarns ........................................... District summary .................................... Drugs, wholesale .................................... 30 17 6 13 32 14 30 22 17 18 18 8 20 19 19 3 9 D rygoods, wholesale ................................... 11 PAGE Electrical supplies, wholesale .............. Employment and wages .......................... Financial conditions ................................ Floor coverings ........................................ Flour ..................................................... Foreign exchange .................................... Groceries, wholesale .............................. Hardware, wholesale .............................. Hides and skins ...................................... Hosiery ....................................................... Iron foundries ........................................ Iron and steel .......................................... Jewelry, wholesale .................................. Leather ...................................................... Lumber ...................................................... National summary .................................. Paint .......................................................... Paper ........... 10 3 5 26 12 8 11 10 27 25 16 15 11 27 15 1 14 29 PAG E Paper, wholesale ...................................... Retail trade ................. Savings deposits .................................... Securities .................................................. Shirts ........................................................ Shoes .......................................................... Shoes, wholesale ...................................... Silk goods .................................................. Silk, raw .................................................. Steel foundries ........................................ Summary, district .................................. Summary, national .................................. Synopsis of business conditions .......... Underwear ................................................ Wholesale trade ...................................... Woolen and worsted goods .................. Woolen and worsted yarns .................. Wool, raw ................................................ 11 8 6 6 23 28 11 24 23 17 3 1 7 26 9 22 21 20 S U M M A R Y O F B U SIN E SS C O N D ITIO N S IN THE THIRD FED ERAL R E SE R V E D IS T R IC T showed the usual seasonal increase in September. Freight car loadings in the Allegheny district were only slightly below those o f a year ago, and sales at wholesale were larger than during the previous month in all but one o f the eight lines reporting to this Bank, and in only three trades were they below those o f a year ago. A similar expansion took place in retail trade, which was 1.2 per cent ahead o f that in September, 1923. The index o f wholesale prices, prepared by the Bureau o f Labor Statistics, was 148.8 in September as compared with 149.7 in August, and 153.7 in Sep tember, 1923. A rearrangement by the Federal Reserve Board o f the items included in the index shows that raw materials and producers’ goods declined quite sharply as compared with prices o f a year ago, but that consumers’ goods were unchanged at a level con siderably higher in proportion to the pre-war base than either o f the foregoing groups. Interest rates have remained practically unchanged since last month, and prime commercial paper continues to sell at 3 to 3*4 cent. Business activity has continued to increase during the past month, but at a somewhat slower rate than in early September. This hesitation was evidenced by a slight decline in the general price level, and by a reduc tion in orders for delivery in the future. Production o f basic commodities, however, expanded considerably in September, and a further increase in factory employ ment during the first part of October indicates that output has continued to grow. Money rates, though slightly firmer, have shown little change since last month. Though most textile products are still in good request, during the middle o f October there was a slight slack ening in demand, which affected nearly all branches o f the industry. The iron and steel market has not improved as much as was hoped, although conditions vary in different branches; sales o f some products have increased, but those o f others have declined. In spite o f the lateness o f the season, building materials are in fair request, and in most cases show an improve ment since last month. This is not surprising in view o f the large total o f contemplated construction, which was evidenced by the estimated value o f building per mits issued during September. Activity in the leather trades also continues at a high rate, and shoe manu facturers are again increasing their production sched ules. Encouraging reports are also received from other industries, such as paper, paper boxes, cigars and coal. The harvest season has been favored with excellent weather and this, together with an ample supply o f labor, has enabled farmers to make good progress in gathering their crops. Though yields are generally lower than they were a year ago, this is largely offset by higher prices for most farm products. In September, employment at industrial establish ments in Pennsylvania, New Jersey, and Delaware increased for the second consecutive month. A t the same time there was an advance in total wages paid and in average weekly earnings. Preliminary reports for October from 497 firms showed an increase o f 1.1 per cent in the number o f employees, a somewhat smaller gain than took place in September. The distribution o f goods, as measured by revenue freight car loadings and by wholesale and retail trade, EMPLOYMENT AND WAGES Evidence o f further expansion in industrial opera tions is seen in the fact that employment and wages at manufacturing establishments o f Pennsylvania, New Jersey and Delaware continued to advance in Sep tember. Employment increased 2.1 per cent in Sep tember following an increase o f 1 per cent in August and average weekly earnings have made a total ad vance o f more than 5 per cent since July. This means that during the months o f August and September, the operations o f manufacturing establishments in these three states have expanded more than 8 per cent. Although the majority o f the 48 industries included in the survey shared in this improvement, the most important increases occurred in the textile products and foods and tobacco groups. Employment at tex tile mills was 5 per cent greater than in August, and the increase at carpet mills, woolen and worsted mills and at dyeing and finishing establishments was even greater than this. Canneries and confectionery and ice cream plants were principally responsible for the 3 T 4 he B usiness R N ovember eview EMPLOYMENT AND WAGES IN PENNSYLVANIA, NEW JERSEY AND DELAWARE Number of wage earners— week ended Group and industry Number of plants reporting Sept. 15, 1924 Per cent change Sept. 15, 1924 Aug. 15, 1924 Average weekly earnings— week ended Per cent change Sept. 15, 1924 Aug. 15, 1924 Per cent change 347,358 + 2.1 $8,960,879 $8,683,948 + 3.2 $25.26 $25.00 + 1.0 Metal manufactures: Automobiles, bodies, and parts. . Car construction and repair....... Electrical machinery and apparatus.......................................... Engines, machines, and machine tools.......................................... Foundries and machine shops. . . Heating appliances and apparatus.......................................... Iron and steel blast furnaces. . . . Iron and steel forgings................ Steel works and rolling mills........ Structural iron works.................. Miscellaneous iron and steel products.................................... Shipbuilding................................. Non-ferrous metals...................... 343 164,692 164,452 + 0.1 6,310 + 5.1 23 6,629 14 13,891 14,650 - 5.2 4,296,060 4,269,664 + 0.6 181,554 167,517 '+ 8.4 361,241 383,249 - 5.7 26.09 27.39 26.01 25.96 26.55 26.16 + 0.5 + 3.2 - 0.6 All industries: (48) ..................... 1,024 354,711 Aug. 15, 1924 Total weekly wages week ended 39 15,880 15,408 + 3.1 382,788 370,801 + 3.2 24.11 24.07 + 0.2 36 70 11,496 10,795 11,255 + 2.1 11,012 - 2.0 289,441 276,976 295,506 - 2.1 281,101 — 1.5 25.18 25.66 26.26 25.53 - 4.1 + 0.5 19 10 13 47 11 4,902 12,120 4,430 43,469 2,964 5,014 12,058 4,432 42,186 2,848 5.0 1.7 2.4 4.5 8.4 29.77 25.79 23.23 26.45 28.20 27.71 26.37 23.80 26.08 27.08 + 7.4 2.4 1.4 + 4.1 46 9 6 24,896 9,929 3,291 24,874 + 0.1 11,044 -1 0 .1 3,361 - 2.1 621,816 + 3.3 310,329 -1 3 .4 99,655 - 1.4 25.81 27.05 29.84 25.00 28.10 29.65 + 3.2 - 3.7 + 0.6 Textile products: Carpets and rugs......................... Clothing................................... Hats, felt and other..................... Cotton goods............................... Silk goods..................................... Woolens and worsteds................. Knit goods and hosiery............... Dveing and finishing textiles. . . . Miscellaneous textile products... 247 14 34 7 23 67 31 46 17 8 66,081 3,872 5,219 5,173 6,304 17,844 10,559 8,999 6,035 2,076 62,913 3,195 4,960 5,131 6,133 17,092 9,904 8,779 5,710 2,009 + 5.0 + 21.2 + 5.2 + 0.8 + 2.8 + 4.4 + 6.6 + 2.5 + 5.7 + 3.3 1,390,294 1,320,070 + 5.3 95,466 76,856 + 24.2 89,515 85,681 + 4.5 118,717 129,306 - 8.2 136,271 + 4.4 142,313 335,923 + 0.3 336,786 213,250 + 13.3 241,562 154,484 + 11.5 172,317 146,632 + 3.0 151,005 42,613 41,667 + 2.3 21.04 24.66 17.15 22.95 22.58 18.87 22.88 19.15 25.02 20.53 20.98 24.06 17.27 25.20 22.22 19.65 21.53 17.60 25.68 20.74 + + + + + - Foods and tobacco: Bakeries........................................ Canneries...................................... Confectionery and ice cream. . . . Slaughtering and meat packing.. Sugar refining............................... Cigars and tobacco...................... 89 20 9 21 12 4 23 28,385 3,812 4,663 6,319 2,608 4,223 6,760 25,653 3,773 2,985 5,913 2,521 4,071 6,390 + 10.6 + 1.0 + 56.2 + 6.9 + 3.5 + 3.7 + 5.8 + + + + Building materials: Brick, tile, and terra cotta products............................................ Cement......................................... Glass............................................. Pottery......................................... 78 20,694 20,380 + 23 15 24 16 3,379 7,999 4,934 4,382 Chemicals and allied products: Chemicals and drugs................... Explosives............................................. Paints and varnishes................... Petroleum refining............................ Coke ........................................................ 73 40 10 13 7 3 28,582 7,561 2,624 1,306 16.237 854 28,434 7,271 2,479 1,332 16,498 854 Miscellaneous industries: Lumber and planing mill products........................................... Furniture...................................... Musical instruments.................... Leather tanning........................... Leather products......................... Boots and shoes........................... Paper and pulp products............ Printing and publishing.............. Rubber tires and goods............... Novelties and jewelry................. A ll other industries..................... 194 46,277 45,526 + 8 22 5 33 8 29 23 24 19 2,627 3,005 8,032 7,247 576 5,372 5,564 3,570 5,466 2,320 2,498 11 13 + + + 2.2 0.5 0 3.0 4.1 145,954 138,951 + 312,562 317,955 102,925 105,499 1,149,705 1,100,155 + 77,130 + 83,575 642,534 268,593 98,212 — 2 2 - + - 0.3 2.5 0.7 8.9 1.6 4.0 6.3 8.8 2.6 1.0 655,810 104,876 107,435 129,751 71,293 137,187 105,268 572,704 102,198 58,632 121,755 66,037 127,656 96,426 14.5 2.6 83.2 6.6 8.0 + 7.5 + 9.2 23.10 27.51 23.04 20.53 27.34 32.49 15.57 22.33 27.09 19.64 20.59 26.19 31.36 15.09 3.4 1.6 17.3 0.3 4.4 + 3.6 + 3.2 1.5 579,228 564,180 + 2.7 27.99 27.68 + 1.1 3,314 + 2.0 8,064 - 0.8 4,782 + 3.2 4,220 + 3.8 85,021 232,443 118,979 142,785 86,991 236,864 112,800 127,525 + + 2.3 1.9 5.5 12.0 25.16 29.06 24.11 32.58 26.25 29.37 23.59 30.22 + + 4.2 1.1 2.2 7.8 873,148 204,077 69,986 33,558 540,973 24,554 836,889 194,284 68,330 34,820 514,332 25,123 + + + 4.3 5.0 2.4 - 3.6 + 5.2 - 2.3 30.55 26.99 26.67 25.70 33.32 28.75 29.43 26.72 27.56 26.14 31.18 29.42 + + + - 3.8 10 3.3 1.7 6.9 2.3 1,166,339 1,120,441 + 4.1 25.20 24.61 + 2.4 19.35 25.11 27.11 25.26 22.50 19.49 24.25 31.93 27.49 22.89 27.74 20.59 24.17 27.11 24.90 20.01 19.19 23.80 30.18 24.40 23.32 28.68 - 6.0 + 3.9 0 + 1.4 + 12.4 + 1.6 + 1.9 + 5.8 + 12.7 - 1.8 2,818 2,780 7,859 7,057 561 5,308 5,096 3,600 5,432 2,425 2,590 + + + - - + + + + + + + - 0.5 4.0 5.8 2.0 1.6 0 1.6 6.8 8.1 2.2 2.7 2.7 1.2 9.2 0.8 0.6 4.3 3.6 50,839 75,457 217,712 183,084 12,959 104,687 134,932 114,004 150,265 53,115 69,285 58,029 67,192 213,090 175,710 11,225 101,885 121,294 108,652 132,534 56,554 74,276 + + + + + -1 2 .4 + 12.3 + 2.2 + 4.2 + 15.4 + 2.8 + 11.2 + 4.9 + 13.4 - 6.1 j - 6.7 - 3 .3 1924 T hird F ederal increase o f 10.6 per cent in the foods and tobacco group. Although all the other groups of manufactures also registered increases in employment from August to September, there were a few conspicuous declines in individual industries. The most noticeable o f these were in shipbuilding, planing mills and establishments manufacturing novelties and jewelry. Average per capita earnings also increased in most o f the industries, indicating longer working hours and fuller employment. Notable increases in earnings oc curred at steel works and rolling mills, at factories making heating appliances and apparatus, woolen and worsted mills, knit goods and hosiery mills, canner ies, potteries, petroleum refineries, leather products factories, printing and publishing plants and at estab lishments producing rubber tires and goods. Adyance reports received from a large fraction o f our report ing establishments indicate that both employment and wages continued to increase in October as compared with September. FINANCIAL CONDITIONS Debits to individual account at eighteen clearing houses in the Third District amounted to $1,466,000,000 in the three weeks ended October 15. This is an increase o f 8.3 per cent over the corresponding weeks R eserve D istrict 5 in September. A gain at this season is usual, but the increase this year is smaller than was the case in 1923 and in 1922. The total is very slightly in excess o f the same period last year. Secured loans at reporting member banks in this district were 294 millions on October 15, as compared with 292 millions on September 17. In the same four weeks all other (largely commercial) loans registered a much more striking increase, advancing from 380 to 389 millions. It . is possible, however, that much of this advance was to be accounted for by purchases o f bankers’ acceptances or commercial paper, rather than by larger loans to customers. Holdings o f United States securities remained practically unchanged at about 107 millions, but investments in other securities moved up from 244 to 249 millions. These changes have raised the total o f loans and investments from 1,024 to 1,039 millions in the period from September 17 to October 15. In 1923 the highest point reached by this combined total was 947 millions, after which a decline to 903 millions on January 23, 1924 ensued. The increase since that date has been almost continuous, amounting to 136 millions, or 15 per cent. Total deposits increased 143 millions or 18 per cent in the same time, and borrowings from the Federal Reserve Bank were reduced from. 11 millions to only 5 millions. In connection with the question o f borrowings from T 6 he B usiness the Federal Reserve Bank, it is particularly interesting to note that the reporting banks in the four cities— Philadelphia, Camden, Scranton, and W ilmington,— were taking only 5.3 millions out o f a total o f 17.9 millions under discount for all member banks on October 15. This is only 30 per cent o f the total, and contrasts strongly with corresponding percentages a year ago— 60 per cent, and four years ago— 78 per cent. In the course o f four weeks, from September 24 to October 22, the earning assets o f the Federal Reserve Bank o f Philadelphia increased from 52.5 to 58.7 millions, owing almost entirely to purchases o f bills in the open market. Federal reserve note circulation and deposits advanced slightly, but total reserves declined from 250.3 to 245.2 millions, with the result that the reserve percentage fell from 89.3 to 87.1 per cent. Money rates at New Y ork are given in the table: MONEY RATES AT NEW YORK Oct. 22, 1924 Sept. 22, 1924 Aug. 22, 1924 Call money renewals............ Time money, 60-90 days. . . Commercial paper, prime... Bankers’ acceptances, 90day offer........................... Discount rate— F. R. Bank. 2% 2 /4 - 3 % 3 -3 M % 2% 214-21 4% 31 4 % 2% 2 1 4 -3 % 3 -3 1 4 % 2M % 3% 2 -2 1 4 % 3% 21 4 % 3% The weighted average o f the rate charged by eight o f the larger banks in Philadelphia on four to six months customers’ paper declined very slightly from 4.11 per cent on September 15 to 4.10 per cent on October 15. The rediscount rate o f the Federal Reserve Bank here remains unchanged at 3 y2 per cent. Prices o f stocks declined during the past month, but the average o f 40 bonds is somewhat higher than it was a month ago. The average o f industrial stocks on October 22 was only $3.59 below the peak, for the year on August 20, and the average o f 40 bonds was at its highest point. AVERAGES OF SECURITY PRICES Average of— 20 industrial stocks*... 20 railroad stocks*....... 40 bonds*..................... 4 Liberty bonds.......... * Dow-Jones averages. Oct. 22, 1924 Month ago Year ago $101.96 88.72 90.77 102.31 $103.25 89.50 90.62 102.31 S87.13 78.41 86.50 97.85 R N ovember eview Savings deposits, as reported by 99 banks in the Third Federal Reserve District, increased 0.1 per cent during September, and on O cSavings deposits tober 1 were 6.9 per cent larger than they were a year before. The records o f 79 o f these banks, which go back further, show that their deposits on October 1 were 16.9 per cent in excess o f the figure on the same date two years ago. Data by cities follow : SAVINGS DEPOSITS Third Federal Reserve District Cities Allentown................................. Altoona..................................... Bethlehem................................ Chester..................................... Easton...................................... Harrisburg............................... Johnstown................................ Lancaster................................. Philadelphia............................. Reading.................................... Scranton................................... Trenton.................................... Wilkes-Barre............................ Williamsport............................ Wilmington.............................. York.......................................... Others....................................... Totals................................... Number of reporting banks 9 5 5 5 6 4 4 3 9 3 6 6 5 4 Change October 1, 1924, compared with Previous month -7 + .3 -2 .8 % “ “ + .1 + 1 .7 -1 .4 “ “ “ 07“ .8 “ + .2 “ + .9 “ -1 .4 “ + 1 .1 “ + 1 .1 “ .3 “ Previous year + + + + + + + + + + + 8 .7 % 1 4 .7 “ 7 .8 “ .3 “ 1 7 .2 “ .4 “ 2 .8 “ 1 6 .0 “ 6 .0 “ 1 4 .2 “ 1 1 .0 “ 6 5 14 + - .0 3 “ .6 “ .1 “ + 8 .3 + 5 .7 .3 + 6 .1 + 1 8 .7 + 7 .1 99 + -1 + 6.9 % % “ “ “ “ “ “ A very material improvement in the demand for bankers’ acceptances in the Third District was noted by dealers in the period from Bankers* September 11 to October 15. acceptances W eekly sales to the Federal R e serve Bank by the five reporting dealers increased from $104,000 in the preceding period to $474,000, and sales to others (chiefly local banks) advanced from $75,000 to $506,000. This latter figure has been surpassed only three times since these reports were started in March, 1922. Purchases o f acceptances in this district by dealers also reached a high figure, being exceeded only once in the past two years. Apparently the local supply o f these bills has substantially increased. This is borne out by the fact that twelve member banks accepted bills to a total amount o f $6,038,000 in the month ended October 10, as compared with $3,284,000 a month ago, and $3,082,000 a year ago. The records must be searched as far back as November, 1921, to find a figure even slightly in excess o f this. Dealers’ transactions in the Third District fo llo w : T 1 924- hi rd F ederal R eserve D istrict 7 SYNOPSIS OF BUSINESS CONDITIONS Compiled as of October 23, 1924 Business Demand Third Federal Reserve District Prices Finished stocks Drygoods, wholesale Electrical supplies, wholesale Floor coverings Flour Fair to good Some advances- Light to heavy some declines Unchanged Light Moderate to Firm light ■Unchanged Moderate Unchanged to higher Unchanged to higher Unchanged Firm Moderate Firm Moderate Unchanged to Moderate lower Firm Moderate Fair Firm Moderate Fair to good Fair Firm Higher Groceries, wholesale Good Higher Moderate Moderate Moderate to heavy Fair Some advancessome declines Unchanged Unchanged Unchanged to lower Unchanged Unchanged Higher Unchanged to higher Unchanged to lower Automobiles Fair to good Cement Good Cigars Fair to good Clothing Fair Coal, anthracite Fair to good Coal, bituminous Fair Coke Cotton goods Cotton yarns Fair Fair to good Fair Drugs, wholesale Fair to good Hardware, wholesale Hosiery,f ull-fashioned Fair to good Fair to good Hosiery, seamless Iron and steel Fair Jewelry, wholesale Leather belting Leather, heavy Fair to good Fair Fair to good Leather, upper Fair to good Lumber Fair Collections Wages Poor to good Sufficient Unchanged Fair to good Sufficient Unchanged Fair Sufficient Unchanged Fair to poor Some scarcity Unchanged Fair Sufficient Unchanged Fair Sufficient Sufficient Sufficient Unchanged Unchanged Unchanged Fair Fair to good Fair to good Fair Fair to good Fair Sufficient Sufficient Unchanged Unchanged Fair to good Fair Fair to good Fair Moderate Moderate Sufficient Sufficient Unchanged Unchanged Fair to good Fair to good Moderate Sufficient Unchanged Fair Moderate Moderate Moderate Sufficient Sufficient Unchanged Unchanged Fair Good Good Moderate Sufficient Unchanged Good Moderate Sufficient Unchanged to lower Fair to good Sufficient Unchanged Fair Sufficient Unchanged Fair to good Fair Slight scarcity skilled Sufficient Unchanged Fair to good Unchanged Good j Paint Fair Firm Paper | Paper, wholesale Fair to good Fair to good Firm Firm Paper boxes Fair to good Unchanged Moderate Shoes, manufacture Fair to good Unchanged Shoes, retail Fair to good Unchanged Shoes, wholesale Fair to good Unchanged Supply Moderate Moderate to light Moderate Moderate Silk goods Underwear, heavy weight Underwear, light weight Woolen and worsted goods Woolen and worsted yarns Labor Fair Unchanged Moderate Light to moderate Light to moderate Moderate Sufficient Unchanged Fair to good Fair to good Unchanged Moderate Sufficient Unchanged Fair Fair Unchanged Moderate Sufficient Unchanged Fair Fair to good Firm Moderate Sufficient Unchanged Good Fair to good Firm Moderat Sufficient Unchanged Good Fair Fair to good T he B usiness TRANSACTIONS IN BANKERS’ ACCEPTANCES Sales in Third District Weekly averages for periods ending— 1924— October 15.................. September 10.............. August 13................... 1923— October 10.................. To Federal Reserve Ba $474,000 104,000 0 2,520,000 To others Purchases in Third District $506,000 $1,095,000 139,000 75,000 38,000 13,000 281,000 424,000 Banks continue to purchase commercial paper in fair amounts but only on a few days during October has the market been active. A lCommercial paper though as a rule dealers’ lists are small, some have a good number o f names. Rates have been steady, the best names selling at 3 and 3*4 per cent. Sales at the lower figure are mostly for shorter maturities but some six months’ paper has been marketed at that rate. A considerable volume has also been sold at 3J4 per cent, but above that rate transactions have been few. Dealers report that the Chicago market has shown great activity and that large amounts o f paper have been sold there at both 3 and per cent. During September the sales o f five dealers in this district amounted to $9,685,000, as compared with $7,432,500 in August and $6,272,000 in September, 1923. The total sold to Philadelphia institutions was $6,042,500 and to outside banks $3,642,500. The rates at which transactions were made varied from 3 to 4 % per cent. But over 98 per cent o f the total was at 3y2 per cent or less with the largest amount at 3 1/4 per cent, and o f the paper sold at 4 per cent and over a considerable part was non-rediscountable. Activity in the local foreign exchange market during the past month has been confined chiefly to the usual trading in some o f the more Foreign exchange important European currencies and no outstanding developments have occurred in this locality. In the foreign markets, however, considerable interest has been manifested in the movement o f sterling, following the call for a general election in England. Since that time buying has increased and sterling has risen in value until quotations on October 23 stood at $4.5008 representing a gain o f .0417 over the figure listed on the correspond ing date o f the previous month. On the other hand French francs declined and on October 23 were quoted at $.0523, a loss o f .0004 points from the price listed on September 23. N o great changes have occurred in the values o f other European currencies; Swiss francs, Dutch guilders and Spanish pesetas are higher than R N ovember eview they were a month ago but Belgian francs and Italian lire have depreciated. South American currencies are appreciably stronger than they were in September; in fact on October 7 Argentine gold pesos were listed at $.8530, a record high level, representing a gain o f nearly 7 cents in four weeks. Quotations for Japanese yen, however, declined at one time during the month to within a few points o f a record low. On October 23 they were marked at $.3870, as compared with $.4003 on September 23. Canadian dollars are stronger than they were a month ago and on October 23 were quoted at $.999789. FOREIGN EXCHANGE RATES Noon cables Par Oct. 23, 1924 Sept. 23, 1924 Oct. 23, 1923 $4.4820 $4.4591 London................... $4.8665 $4.5008 Paris....................... . 1930 .0576 .0523 .0527 Antwerp................. .1930 .0480 .0491 .0486 Milan...................... .1930 .0442 .0435 .0438 Vienna.................... .000014 .2026 .000014 .000014 Amsterdam............ .4020 .3856 .3876 .3935 Copenhagen........... .2680 .1726 1713 .1733 Stockholm.............. .2680 .2661 2661 .2625 Madrid................... .1930 .1343 1322 1325 .1930 .1923 Berne...................... .1893 .1778 Buenos Aires.......... .9648 .8339 .8068 7201 .7662 .7580 Shanghai................. .8051 .3870 .48S0 Yokohoma.............. .4985 .4003 RETAIL TRADE Exceptionally mild and clear weather during the first three weeks o f this month caused a slowing up in purchases o f fall and winter merchandise at retail. Consequently most retailers report that October sales are smaller than they were in the same month o f last year and not as large as they were last month. Em ployment is increasing slightly, but the gain is not large enough to show much effect on retail trade. Con sumers continue to buy very carefully, even of necessi ties, and big price-reduction sales are still the chief means o f obtaining business. Fall suits, topcoats and winter clothing are the best sellers in men’s apparel. Suits, hats, furs and coats are the most active items in women’s apparel. De partment stores report that blankets, com forts, chil dren’s coats and dresses, flannelettes, fall hosiery, me dium and heavy-weight underwear, woolens and some silks are in good request. Carpets and rugs, stoves, heaters and household furniture are also selling well. Prices are firm and show little change from those o f last month. A tendency to advance prices on fall goods is apparent, but the actual increases are very small. Retail sales in this district during September were T 1924 hird F R ederal eserve D istrict 9 RETAIL TRADE Third Federal Reserve District Comparison of net sales Comparison of stocks Rate of turnover* Index number (per cent of 1923 monthly average) Sept., 1924, with Sept., 1923 July 1 to Sept. 30, 1924, with July 1 to Sept. 30, 1923 All reporting firms.................'................... I irms in— Philadelphia................................. —Allentown, Bethlehem & Easton.. —Altoona........................................ —Chester................................... —Harrisburg.................................... —Johnstown.................................... —Lancaster...................................... —Reading........................................ —Scranton....................................... —Trenton........................................ —W ilkes-Barre................................ —W illiamsport................................ — Wilmington.................................. —York.............................................. —All other cities............................. 84 87 80 74 77 91 61 75 69 81 80 87 79 79 80 89 + 1-2% + 5 .7 “ - 5 .1 “ -1 6 .2 “ -1 0 .0 “ + 1 .5 “ -2 6 .3 “ - 8 .0 “ -1 1 .5 “ - 2 .3 “ - 1 .8 “ + 1 .2 “ - 4 .3 “ - 0 .4 “ - 8 .5 “ + 0 .9 “ - 1-2% - 0 .3 “ - 1 .7 “ -1 1 .8 “ + 1 .8 “ - 2.1 “ -1 6 .6 “ - 3 .6 “ - 6.1 “ .0 “ - 6 .0 “ + 6 .8 “ - 7 .4 “ + 3 .3 “ - 5 .6 “ + 4 .3 “ 0.5% 1 .2 “ 2 .6 “ 4 .9 “ + + + + 12.1% 1 2 .9 “ 1 1 .7 “ 1 0 .9 “ 2.6 3.0 2.0 2.2 2.6 3.0 2.0 2.4 + 5 .7 “ + 9 .3 “ - 7 .1 “ - 4 .5 “ - 1 8“ -1 0 .0 “ + 7 .8 “ - 6 .9 “ + 5 .3 “ - 2 .2 “ - 1 .1 “ + + + + + + + + + + + 9 .7 “ 1 1 .2 “ 1 3 .2 “ 7 .5 “ 1 0 .9 “ 8 .5 “ 1 5 .3 “ 7 .4 “ 1 1 .3 “ 1 5 .7 “ 7 .7 “ 1.9 2.0 2.1 1.7 2 3 2.4 2.5 1.7 1.7 2.0 2.2 2.1 2.6 2.1 1.8 2 2 2.3 2.5 1.8 1.6 2.1 2.1 All department stores.................................... —in Philadelphia................................... —outside Philadelphia........................... 85 + 2.1 “ + 5 .5 “ — 5 .4 “ - + 0 .2 “ + 0 .7 “ - 0 .8 “ + 1 1 .8 “ + 1 2 .6 “ + 1 0 .4 “ 2.6 2.9 2.2 2.7 2.9 2 2 All apparel stores..................................... Men’s apparel stores........................ —in Philadelphia............................. —outside Philadelphia........................... Women’s apparel stores............................... — in Philadelphia................................... —outside Philadelphia........................... 84 78 + 6 .5 “ - 3 .0 “ + 5 .6 “ -1 0 .5 “ + 1 3 .6 “ + 2 0 .3 “ -1 3 .6 “ + 1 .8 “ - 0 .9 “ + 2.1 “ - 3 .3 “ + 8 .4 “ + 1 2 .0 “ - 7 .1 “ + + + + + + - 2 .6 “ 3 .9 “ 3 .2 “ 4 .4 “ 2 .9 “ 7 .3 “ 9 .7 “ + 1 4 .2 “ + 4 .6 “ - 6 .9 “ + 1 5 .6 “ + 2 7 .9 “ + 2 8 .2 “ + 2 6 .9 “ 2.9 1.7 1.9 1.5 4.4 4.9 2.7 2.9 1.8 2.0 1.6 4.1 4.7 2.6 - + 3 .4 “ + 1 0 .4 “ 2.2 2.3 - + 1 5 .3 “ 2.3 2.1 77 Credit houses................................................. 86 - Shoe stores..................................................... 85 + 0 .2 “ 9 .6 “ 1 .5 “ 0 .8 “ 2 9“ 6 .7 “ + 5 .5 “ Sept. 30, 1924, with Sept. 30, 1923 + + - 3 .1 “ Sept. 30, 1924, with Aug. 31, 1923 July 1 to July 1 to Sept. 30, Sept. 30, 1924 1923 * Times per year based on cumulative period. 2.1 per cent larger than those o f September, 1923, and also 23.4 per cent greater than those o f August. The only group o f stores whose sales were smaller than those o f August were credit stores, but this was to be expected after the big August furniture sales. De partment store sales were 25.0 per cent greater, those o f men’s apparel stores 21.0 per cent larger, and sales o f women’s apparel 35.6 per cent greater than in August. A s compared with September, 1923, sales o f department stores showed a gain o f 2.1 per cent and o f women’s apparel stores an increase o f 13.6 per cent, but men’s apparel and credit stores showed a loss o f 3.0 per cent and 9.6 per cent, respectively. W H O LESALE TRAD E Estimates o f wholesale trade in October indicate that it will be fully as large as it was in September. All lines report fair activity and a general stability o f prices. Most groceries have advanced slightly but drugs as a whole are somewhat lower. In the other six trades changes in quotations are negligible. During September, sales in all reporting lines ex cept paper were larger than in August and in paper the decrease is explained below. The gains too were large in boots and shoes, jewelry, drygoods, electrical supplies and groceries. A s compared with sales in September, 1923, five trades showed an increase and three were smaller. Stocks show no particular trend; four lines are larger and four have decreased as com pared both with the previous month and with the pre vious year. Collections improved during September in all lines, except paper, and are also better than in September, 1923, except in hardware, jewelry and paper. The call for drugs is good and reports from whole salers indicate that sales are slightly larger than they were last month and greater than Drugs in October, 1923. Medicines for coughs and colds, toilet prepara tions and staples are at present the best sellers. The botanical drug market is fairly active and prices, though IO T he B usiness R N ovember eview WHOLESALE TRADE Third Federal Reserve District Net sales Stocks Accounts outstanding Sept., 1924, compared with Sept., 1924, compared with Sept., 1924, compared with Boots and shoes.................. Drugs................................... Drygoods............................. Electrical supplies............... Groceries.............................. Hardware............................. Jewelry................................. Paper................................... Aug., 1924 Sept., 1923 Aug., 1924 Sept., 1923 Aug., 1924 Sept., 1923 Sept., 1924 Aug., 1924 Sept., 1923 + 65.8% + 5 .7 “ + 3 4 .9 “ + 19.7“ + 12.9“ + 4 .9 “ + 3 8 .6 “ - 2 .7 “ + 5.1 % + 9 .2 “ -1 5 .4 “ + 5 .8 “ + 3 .2 “ + 0 .7 “ - 4 .0 “ - 6 .3 “ -6 .2 % -0 .1 “ + 7 .4 “ + 6 .3 “ + 6 .2 “ -0 .5 “ -4 .3 “ + 3 .3 “ - 2 0 .8 % - 8 .3 “ - 1 .6 “ - 9 .7 “ + 4 .1 “ + 4 .8 “ + 1 .3 “ + 10.9“ + 2 5 .5 % + 3 .3 “ + 17.0“ + 7 .8 “ + 10.4“ + 4 .2 “ + 15.3“ - 1 .0 “ -1 9 .0 % + 3 .6 “ -1 5 .9 “ - 5 .7 “ - 0 .1 “ + 7 .4 “ + 4 .9 “ + 0 .8 “ •177.4% 148.4“ 196.9“ 141.3“ 107.3“ 180.6“ 279.7“ 162.4“ 243.8% 151.6“ 226.9“ 156.9“ 108.4“ 182.6“ 335.9“ 159.5“ 232.7% 152.1“ 198.1“ 158.5“ 109.3“ — 169.1“ 258.7“ 151.0“ lower than they were early this month, are about the same as they were at the close o f last month. The fine chemical and drug market is not quite as active as it was a month ago and prices are somewhat lower. A s is shown in the following table, the indexes com piled by the “ Oil, Paint and Drug Reporter’' are lower than they were earlier in the month. Price index of 40 botanical drugs September 22........... SeDtember 29........... October 6 ................. October 13............... October 20............... Price index of 35 drugs and fine chemicals 1924 1923 1924 1923 127.2 127.0 128.2 127.0 126.9 123.3 123.5 123.6 123.6 123.8 203.9 203.2 202.1 202.1 201.7 214.3 212.4 208.1 206.1 204.9 Sales during September were 5.7 per cent larger than those o f August and 9.2 per cent greater than those o f September, 1923. Stocks at the close o f Sep tember were practically the same as at the close o f August, but were 8.3 per cent smaller than they were a year ago. The ratio o f accounts outstanding to sales was 148.4 in September, as compared with 151.6 in August and 152.1 in September, 1923. During September the net sales o f 6 wholesale elec trical firms in this district were 19.7 per cent greater than they were in the preceding Electrical supplies month and 5.8 per cent in ex cess o f those in September, 1923. A ccording to reports received from these firms the call for electrical supplies so far this month, though not regarded as better than fair, exceeds that during the preceding month. Contractors now engaged in finishing up work on new buildings are taking sizeable orders o f wiring and fixtures and retail dealers o f radio supplies, in filling their usual seasonal require Ratio of accounts outstanding to sales ments, are ordering substantial quantities o f these, in both parts and completed units. Prices are firm ; indeed in only one instance are es tablished quotations said to be lower than they were a month ago, though practically all reports indicate that they are not as high as they were in September o f last year. Stocks on hand at the close o f last month were 6.3 per cent heavier than they were on the last day o f August but 9.7 per cent lighter than those re ported on September 30, 1923. Collections may be classified as scarcely fair. The ratio o f accounts out standing to sales during September was 141.3, as com pared with 156.9 in the preceding month and 158.5 in September o f last year. The net sales o f 31 wholesale hardware firms in the Third Federal Reserve District during September were 4.9 per cent greater than they Hardware were in the preceding month and 0.7 per cent larger than during September o f last year. During the present month, demand has been generally fair and stronger than it was in the preceding thirty days. Building materials continue to move in good volume and the settled weather so far this month has assisted materially in maintaining the call for farm hardware. Some deal ers report that plumbing and heating equipment are in good request while still others say that mine and mill supplies comprise the major part o f their de liveries. Prices for the most part are the same as they were a month ago, though quotations for some seasonal arti cles have advanced while others have declined. As compared with those listed at this time last year, how ever, they are in nearly all instances lower. Stocks on hand at the end o f September were 0.5 per cent lighter than they were on the last day o f the pre ceding month, but 4.8 per cent heavier than on Sep tember 30, 1923. Collections during the past month may be designated as fair. In September the ratio o f accounts outstanding to sales was 180.6 as against 1924 T hird F ederal 182.6 in the month before and 169.1 during Septem ber o f last year. Sales by wholesale jewelers are about keeping pace with those o f last year, which were among the largest on record. Though some dealers Jewelry state that nearly all o f the orders are for prompt shipment, others have booked more business for delivery during the bal ance o f the year than they had on the same date o f 1923. The demand includes practically all lines handled by the trade, and watches, diamonds, wedding rings, and fancy platinum mountings are in especially good request. Prices continue steady and unchanged. During September sales were 38.6 per cent larger than in August but were 4.0 per cent smaller than in September, 1923, though half o f the firms reporting showed a gain as compared with a year ago. Stocks on September 30 were 4.3 per cent lower than on August 31, but were 1.3 per cent heavier than on Sep tember 30, 1923. This latter figure was principally the result o f a large increase by one firm. The ratio o f accounts outstanding to sales stood at 279.7 on September 30, 335.9 on August 31 and 258.7 on Sep tember 30, 1923. Wholesale shoe dealers report that the demand dur ing the first half o f October was at least fully equal to that o f the previous month. Shoes All orders call for shipment either in October or early in November and prices are firmly maintained; indeed in a few cases advances are asked. A ll lines, men’s, women’s and children’s, are sharing in the demand and, as is usual at this season, slippers for the Christmas trade are in good request. For men, oxford s and boots in calf both in tan and black are in request and for women, although pumps o f patent leather, satin, velvet, and black suede continue to be called for, the demand for tan calf in pumps and oxford s is increasing. During September sales were larger by 65.8 per cent than in August and by 5.1 than in September, 1923. A majority o f the reports, however, show a decrease as compared with a year ago, but this was more than offset by the gains made by a few dealers. Stocks, which are usually heavy at the end o f September, were smaller by 6.2 per cent than on August 31, and by 20.8 per cent than on September 30, 1923. The ratio o f accounts outstanding to sales was 177.4 on September 30, 243.8 on August 31 and 232.7 on September 30, 1923. Preliminary reports indicate that sales o f drygoods at wholesale will be slightly larger in October than they were in September. In 1923, O cDrygoods tober sales were 1 per cent smaller than those o f the pre vious month. Buying continues to be almost entirely for prompt delivery and only one wholesaler reports that any orders are for shipment beyond 60 days, and in this case only 10 per cent o f the orders booked are R eserve D istrict i i for this late delivery. Wholesalers, too, are buying cautiously and their outstanding purchases are smaller than they were a year ago. Prices are steady and have shown little change dur ing the month, although some dealers report slight re ductions for notions and cotton hosiery. A m ong the articles for which the demand has been good are under wear, hosiery, sweaters, shirts, gloves, outing flannels, blankets, handkerchiefs, bureau scarfs and table covers. Sales during September were 34.9 per cent larger than in August, but 15.4 per cent smaller than in Sep tember, 1923. Stocks are somewhat heavier than they were a month ago but show little change as compared with September, 1923. The ratio o f accounts outstand ing to sales was 196.9 on September 30, 226.9 on August 31 and 198.1 on September 30, 1923. Most grades o f paper are in slightly better demand than they were a month ago and sales at wholesale are somewhat greater than they Paper were last month. Newsprint, book and fine papers are in good request. The call for wrapping and kraft papers is larger than it has been since early last spring. B ox cover papers are selling well and the demand for b oxboards is increasing. Building papers, building board, crepe towels, toilet tissues and fine tissues are in only fair request. Prices o f practically all papers are firm and unchanged. The cheaper grades o f fibre papers are the only ones to display weakness and they are *4-cent per pound lower than they were a month ago. Stocks at the close o f September were slightly larger than at the end o f August and greater than at the close o f September, 1923. Jobbers are buying approxi mately the same quantity o f merchandise as they took in October o f last year. Collections afe fair. September sales o f the majority o f houses reporting to us were larger than 'those o f August, but, chiefly because o f the exceptionally large sales in August o f one big firm, the total o f sales in September was 2.7 per cent smaller than in August. However, they were 6.3 per cent less than the sales in September, 1923. The ratio o f accounts outstanding to sales was 162.4 in September as compared with 159.5 in August and 151.0 in September, 1923. Groceries are in good demand and October sales are slightly larger than those o f last month and those o f a year ago. Canned goods o f all Groceries kinds, dried beans, buckwheat and pancake flour, mince meat, dried fruits, sugar, syrups, coffee, raisins and cider are the best sellers. Delivery on futures o f canned goods is now taking place and rising prices are bringing addi tional buyers into the market, so that the demand is heavy. Prices show a continued trend upward. Canned vegetables, salt, sugar, coffee, tea, syrup, fruits, nuts, corn flakes, flour, dried beans, lard, spices and some kinds o f soap are higher than they were a month ago; T 12 he B only vinegar, canned tuna fish and cottonseed oil are lower. Sales during September were 12.9 per cent larger than in August and 3.2 per cent greater than in Sep tember, 1923. Stocks on hand at the close o f Septem ber were considerably larger than at the end o f August and greater than at the same time last year. The ratio o f accounts outstanding decreased from 108.4 in August to 107.3 in September. FLOUR The further advance in flour and wheat prices this month has not influenced buyers o f flour to make larger commitments for future needs. Hand-to-mouth buy ing is still the practice o f consumers and the domestic demand continues to be fair, showing a slight increase over that o f last month, but being at least 10 per cent lighter than in October, 1923. The export market is more active than it was in the two previous months, but foreign purchases o f flour are not as large as they were a year ago. Millers in this district report that the domestic demand has increased somewhat and that most o f their output is going into local consumption. Early in the month the prices o f wheat advanced sharply, but a recession soon followed which lasted over a week. However, the decline was checked; prices are again rising and are now higher than they were at the beginning o f the month. Number 2 red winter wheat on October 22 was selling at $ 1.6614 per bushel in New York, as compared with $1.46 on September 22, and at $1.4114 on July 22. Spring patent flour for prompt shipment on October 22 was quoted at $7.75 to $8.25 per barrel in car lots, as compared with $7.15 to $7.65 on July 22. The strong position o f wheat is R usiness N ovember eview directly reflected in the price o f flour and the lower prices which were expected after the new crop flour appeared in the market have failed to materialize. By product feeds, such as bran, gluten, and middlings are selling well and the demand for these is greater than it was last month and heavier than it was in October, 1923. A s is shown in the preceding chart, wheat and flour prices are now higher than they have been at any time in the last three years. Grinding at the mills has increased and now averages about 75 per cent o f capacity. Finished stocks at the mills are slightly larger than they were a month ago, but are not as heavy as they were a year ago. Stocks o f flour at public warehouses in Philadelphia on October 1 were 11 per cent larger than on September 1, but 19 per cent less than on October 1, 1923. The stocks o f wheat, corn, oats and rye were considerably greater than those o f a year ago. PUBLIC WAREHOUSE STOCKS AT PHILADELPHIA* Date Flour, barrels Wheat, bushels Corn, bushels Oats, bushels Rye, bushels October 1, 1924 . . . . 110,466 1,399,140 29,312 284,863 184,719 September 1, 1924. . 99,571 1,071,014 30,815 105,907 130,944 October 1, 1923 . . . . 135,474 869,457 20,757 269,072 55,057 * Compiled by the Commercial Exchange of Philadelphia. Exports o f flour from the port o f Philadelphia, dur ing the first nine months o f 1924, were 28 per cent smaller than those for the same period o f last year. September exports were twice as large as those of August, but were 29 per cent smaller than those o f September, 1923. Exports o f wheat and corn for the first nine months o f this year were smaller, but those o f oats, rye and barley were larger than for the corre sponding period o f 1923. W heat exports declined 13 per cent and corn 61 per cent, but exports o f oats increased 60 per cent, o f rye 77 per cent and o f barley 933 per cent. EXPORTS OF FLOUR AND GRAIN FROM PHILADELPHIA* Commodity Flour Wheat Corn Oats Rye Barley Source— Dun's Review First nine First nine September, months of 1924 months of 1923 1924 September, 1923 (barrels).. 69,298 276,770 384,807 49,920 (bushels).. 19,795,160 22,828,011 2,068,535 1,184,504 (bushels).. 1,689,903 4,330,541 693,564 (bushels).. 436,789 371,838 (bushels).. 1,088,450 615,687 319,445 (bushels).. 248,497 24,935 132,252 * Compiled by the Commercial Exchange of Philadelphia. T 1924. hird F ederal R Sales o f flour for export during this month have been larger than they were last month, but are not equal to those o f a year ago. The high prices now pre vailing have caused foreign buyers to hold back as much as possible, but they display active interest and are watching quotations closely. Germany, the British Isles, Belgium, Spain and Holland have been the principal buyers in the Philadelphia market. Receipts o f flour, wheat, corn, and oats at Philadel phia during the first nine months o f 1924 were much smaller than for the corresponding period o f 1923, but receipts o f barley and rye were larger. H owever, in the month o f September the receipts o f flour and o f all grains were larger than in September o f last year and considerably greater than in August o f this year. This increase in receipts o f grains has been caused by a much heavier export demand than existed in Septem ber, 1923. RECEIPTS OF FLOUR AND GRAIN AT PHILADELPHIA* Commodity F lou r W h eat C orn O ats R ye B a rley ( b a r r e ls ). . (b u s h e ls ).. (b u s h e ls ).. (b u s h e ls ).. (b u s h e ls ).. (b u s h e ls ).. First nine First nine September, September, months of 1924 months of 1923 1924 1923 1,795,348 2,263,438 249,118 248,960 19,828,752 24,390,801 2,560,715 875,298 2,395,031 6,021,678 35,270 33,351 1,965,255 2,912,197 689,697 185,513 1,247,493 680,225 377,112 17,606 39,347 255,566 132,252 3,452 * Compiled by the Commercial Exchange of Philadelphia. eserve D 13 istrict BUILDING During September 3,038 building permits were issued in fifteen cities in the Third Federal Reserve District, representing a proposed expenditure o f $17,450,446. In the preceding month 3,084 permits were granted at an estimated expense o f $27,257,295, but it must be remembered that this unusually high total cost was wholly on account o f the large building program begun by the Philadelphia Electric Company. A s compared with the figures compiled during September o f last year, however, the number o f permits issued this Sep tember was greater by 248 and the cost increased from $11,665,973 to the total given above, a gain o f $5,784,473. Naturally, in Philadelphia the estimated cost in September also declined from that during the preceding month but, as will be seen in the table below, it was more than $1,000,000 in excess o f the estimated cost in the corresponding month of last year. Proposed construction o f amusement enterprises in Atlantic City was partly responsible for a considerable increase in estimated cost for that city, the figure ad vancing from $643,908 in August to $3,698,760 in September, a gain o f $3,054,852. In Allentown, Beth lehem, Camden, Harrisburg, Wilmington, York, Tren ton and Reading both the number o f permits issued and the proposed expenditure were greater in Septem ber than they were in August. In Williamsport and Lancaster, though the proposed cost was greater, the number o f permits recorded was smaller. On October 1 the Aberthaw Building Index number, compiled from material and labor costs, stood at 195, a loss o f one point from that published on September 1. BUILDING PERMITS Third Federal Reserve District September, 1924 Permits Opera tions A lle n t o w n .............. A l t o o n a ................... A tla n tic C i t y . . . . B e th le h e m .............. C a m d e n ................... H a r r is b u r g ............ L a n c a s t e r ............... P h ila d e lp h ia ......... R e a d in g ................... S cra n ton ................. T r e n t o n ................... W ilk e s-B a r r e ......... W illia m s p o r t......... W ilm in g to n ........... Y o r k ......................... 97 202 131 60 146 96 32 1,221 249 144 185 140 89 101 144 144 204 131* 60* 202 147 37 1,969 261 144* 220 140* 89 101 144 T o t a l ................... 3,038 3,993 * Operations not reported. September, 1923 January to September (inclusive) 1924 Estimated cost Permits Opera tions 1923 Estimated cost Number $591,900 169,218 3,698,760 680,785 381,795 326,640 693,400 8,665,805 353,850 365,630 445,789 358,849 97,306 324,147 296,572 96 188 153 38 156 69 56 1,097 211 121 162 107 106 130 100 96 188 153 38 269 74 70 1,390 211 121 211 107 106 130 100 $473,820 858 167,837 1,737 641,529 1,452 418 61,295 468,060 1,166 746 768,535 766 286,675 7,086,060 12,354 183,325 2,336 187,000 1,452 505,270 1,662 251,109 1,267 864 113,642 979 347,778 124,038 1,485 $17,450,446 2,790 3,264 $11,665,973 29,542 Estimated cost Number Estimated cost $4,088,690 828 2,894,254 1,569 7,783,988 2,012 376 2,164,427 934 4,336,651 725 4,445,315 719 3,975,350 115,444,115 11,217 4,606,172 2,492 4,053,928 1,180 4,698,706 1,391 3,314,130 910 1,027,373 830 3,071,173 908 1,958,418 1,217 $4,014,090 2,549,314 7,497,092 1,257,487 6,277,194 6,669,242 2,804,430 101,857,590 3,804,705 2,712,411 5,482,111 2,385,797 994,301 2,957,232 1,715,209 $167,862,690 27,288 $152,978,205 T 14 he B usiness The arrival o f autumn has been accompanied by a good demand for cement and most manufacturers say that the present call is better than Cem ent it was in October, 1923. Though most o f the orders now on the books are for delivery within 60 days, a considerable number are for shipment up to and even beyond 90 days. The custom o f laying cement during the winter months is becoming more prevalent each yea r; indeed in agricultural sections the cold weather period has proven an ideal time for the farmers to make needed improvements. R N ovember eview ate, but they, too, are lighter than they were a month ago. Nearly all manufacturers reporting to us are running their equipment at capacity, which means that their operations are continuous. The average rate is com puted to be about 96 per cent o f maximum output. Unfilled orders are somewhat smaller than they were at this time last month and the filling o f these will not require the maintenance o f present operating schedules for longer than an average period o f two months. Pro duction, stocks and shipments o f Portland cement have been unusually heavy since last spring as will be seen in the accompanying chart. In the table below figures are given showing output and stocks o f Portland cement in each o f the last three months for which data are available. For comparative purposes figures for the corresponding three months o f 1923 are also presented. The supply o f both sufficient and no wage the month. Collections the same as they were tober, 1923. T h e g e n e ra l tr e n d o f p r o d u c t io n , s to c k s , a n d s h ip m e n t s o f P o r tla n d c e m e n t h a s b e e n u p w a r d d u r in g t h e p a s t fo u r y e a rs. In s p ite o f t h i s t r e n d , t h e r e is a m a r k e d s e a s o n a l f l u c t u a t i o n e a c h year. Source— U. S. Geological Survey Prices o f finished cement are in every instance firm and no changes in quotations have occurred during the month. Prices o f raw materials, too, are in the main firm, though in one instance quotations for lime prod ucts are said to be weak. A certain amount o f re sistance to prevailing prices is always encountered, but generally speaking present quotations are accepted. Stocks o f finished goods are comparatively light and are decreasing. Supplies o f raw materials are moder skilled and unskilled labor is changes were reported during are fairly good, and are much during last month and in O c The call for paint is little better than fair, and though it has improved somewhat since the first o f the month, opinion is varied as to whether it Paint is any better than it was during October o f last year. In the sec ond week o f this month interest in the market was cen tered on lithopone, the demand for which strengthened appreciably. On the other hand the call for paints in the lead pigments group, though fair, is much the same as that during September. Some improvement, how ever, is noticeable in the market for dry colors; in quiries have increased since the first o f the month and, though orders continue to be for current needs, the total volume has been substantial. Prices are firm and but very few changes have oc curred during the past month. Quotations for raw materials, too, are much the same as those listed four weeks ago, notwithstanding the fact that some recent sales o f distressed lots o f lithopone at reduced prices created a temporary weakness in quotations for this product. On October 23, linseed oil was listed at $1.00 per gallon in carload lots, cooperage basis. Stocks PRODUCTION OF PORTLAND CEMENT* July................................................................ August........................................................... fippt.omlwr * Compiled by the Geological Survey. Production, 1924 Production, 1923 Stocks, 1924 Stocks, 1923 14.029.000 bbls. 15.128.000 “ 14.519.000 “ 12.620.000 bbls. 12.967.000 “ 13.109.000 “ 12.319.000 bbls. 10.666.000 “ 8,358,000 “ 8.081.000 bbls. 6.080.000 “ 5,533,000 “ x924 T hird F ederal R o f finished goods are moderate in some instances and light in others, but they are nearly all stationary. Sup plies o f raw materials are moderate and are becoming noticeably lighter. Manufacturers reporting to this Bank are operating at from 30 to 90 per cent o f capacity, the average being close to 70 per cent o f maximum output. Nearly all o f the orders now on the books are for delivery within 60 days; in fact, the number o f those for ship ment up to and beyond 90 days is unusually small. The total o f unfilled orders is smaller than it was a month ago and the filling o f all those now taken will not require the maintenance o f present operating sched ules for a longer period than one week at most. The supply o f both skilled and unskilled labor is ample, indeed in some cases the supply o f workers in the latter class is reported as plentiful. No wage changes were reported during the month. Collections are fair and, though they are about as prompt as they were at this time last month, they are not as satisfac tory as during October, 1923. Manufacturers and dealers in this district report that the call for lumber is stronger than it was a month ago and that it may now be charLumber acterized as fair. A s compared with the demand at this time last year, however, it is scarcely as good. One dealer states that, though total sales are substantial, orders are mostly for small lots and are comprised largely o f mixed grades. The call for Pacific coast lumber is unmistakably better than it was four weeks ago and sizeable quantities o f fir and hemlock have recently been shipped into this market. Hardwoods are in good request, especially white oak and poplar flooring grades. Cypress is moving fairly well and sales o f yellow pine are increasing. Owing in part to the finish ing o f dwelling houses, the call for laths and shingles is strong. Reflecting the efforts o f builders to com plete operations before winter begins, most o f the orders now on the books are for delivery within 60 days, though some are for shipment up to and beyond 90 days. Prices are weak in several instances and competition has encouraged the granting o f concessions so that quotations for some grades are lower than they were a month ago. This is by no means a general condi tion however; indeed many grades o f lumber both o f the hardwood and medium variety are listed at prices that are firm and unchanged from those prevailing at this time in September. Stocks o f finished lumber in the hands o f both manufacturers and dealers are mod erate and for the most part stationary. Supplies o f raw materials are also moderate and are held in about the same proportion as they were at this time last month. eserve D istrict 15 Mill owners reporting to this Bank are operating their plants at an average rate o f approximately 70 per cent o f capacity, and unfilled orders on the books will require the continuance o f present working schedules for an average period o f about seven weeks. The supply o f both skilled and unskilled labor is sufficient and wages are in all but one case the same as they were a month ago. One manufacturer reported that the wages paid to day workers were reduced 50 cents per day. Collections are slightly better than fair and fully as prompt as they were in the preceding month. But as compared with those during September, 1923, they are not as satisfactory. IRON A N D STEEL New developments in the iron and steel markets in this district have been notably lacking during the past m onth; indeed from the reports coming to this Bank it is difficult to form a definite conclusion as to whether or not the general situation is as satisfactory as it was at this time in September. Sales o f a few products increased somewhat, but those o f others were lighter. The pig iron market in particular has proved uninter esting, partly on account o f the subsiding o f what a month ago appeared to be a buying movement, but principally because o f a reluctance to enter into definite contracts for future commitments until after the elec tion. Reports coming to us classify the demand for pig iron as poor and not as strong as it was a month ago. On the other hand the call for steel scrap, though at best only fair, has improved over that at this time last month. Then, too, an encouraging and significant indication to general business may be found in the fact that during the past month the demand for light and heavy hardware and for machinery and tools has im proved. Railroads, general manufacturers, cement plants and agricultural interests are in some instances responsible for an improved call for iron and steel castings, though on the whole the demand can scarcely be classed as fair. Plates and structural shapes are in fair request and, though little or no improvement has occurred in the past four weeks, inquiries for sub stantial tonnages have stimulated interest in these com modities. A chart depicting sales o f structural steel by months for the past four years is presented on page 16. It will be seen that in no month so far in the present year have total sales reached, as high a figure as in the two previous years. Iron bars and crude steel are moving slowly, though railroads have been taking fair sized quantities o f the former. The call for steel sheets and for wire and wire rods is barely fair and sales o f these continue to be in about the same proportion as T i6 he B usiness R N ovember eview tons to 2,053,264 tons, an increase o f nearly 9 per cent. On September 30 the unfilled orders o f the United States Steel Corporation totalled 3,473,780 tons, rep resenting the highest figure since May and a gain o f 184,203 tons over the total at the end o f August. P ro duction schedules continue to be maintained close to the levels o f September, though estimates as to the aver age rate vary. It is interesting to note that o f the 61 blast furnaces located in this district, 22 were in blast on October 1, a gain o f 4 over the number in operation on September 1. During the four weeks none were shut down. S a le s o f s t r u c t u r a l s t e e l d u r i n g t h e p a s t f o u r y e a r s r e a c h e d t h e p e a k i n M a r c h , 1923, i n w h i c h m o n t h t h e y t o t a l l e d o v e r 240,000 t o n s . S a le s s o f a r t h i s y e a r h a v e r a n g e d f r o m 190,000 t o 1 50,000 ton s per m o n th . In all but two instances the supply o f skilled labor is sufficient and no shortage whatever is reported in the ranks o f unskilled operatives. One manufacturer states that the wages o f both classes o f workers were re duced 8 per cent, but all other reports received from more than 50 manufacturing concerns in the Third Federal Reserve District indicate that present wages are the same as they were a month ago. Source—Department of Commerce Collections are fair, though they are slightly poorer than they were during September. obtained a month ago. Substantial orders tor steel rails and track equipment have been taken, but the demand for these railroad supplies, though better than it was at this time in September, has not fulfilled ex pectations. Practically none o f the more important products, such as steel forgings, wire rope, chains and pipe, are in more than moderate request. Shipments are being made to a wide variety o f consumers. Questionnaires returned to us from 32 iron foundries in this district indicate that production during Septem ber was 5.9 per cent greater than Iron foundries in the preceding month. Though output o f malleable iron declined somewhat, the reduction was more than offset by the increase in that o f gray iron, as will be noted in the table below which gives figures for the principal operating items o f these foundries whose combined monthly capacity totals 15,117 tons. Shipments both in value and tonnage were substantially greater than they were in August, the form er having increased 28.2 per cent and the latter 14.6 per cent. On the other hand the value and tonnage o f unfilled orders in Prices continue to reflect the limited buying and in several instances are weak. Concessions in established quotations are not uncommon, especially in instances where large tonnages are involved. Immediately after the abolition o f the “ Pittsburgh plus” basis, prices were extremely uncertain and conjectures were rife as to the probable effect o f the decree upon current quotations. However, so far, prices in this market have been practically unaffected. A ccording to the “ Iron A g e’s” composite price o f finished steel, the figure on October 21 stood at 2.460 cents per pound, a decline o f .014 cents from the computed price listed on September 23. On the other hand quotations for pig iron are in the main steady and the “ Iron A g e’s” com posite price has remained constant for the tenth con secutive week at $19.46 per ton. During September production o f both steel ingots and pig iron was greater than in the preceding month and similarly the unfilled orders o f the United States Steel Corporation increased. Output o f steel ingots totalled 2,814,996 tons, as compared with 2,541,501 tons in August, a gain o f 273,495 tons. During the same period production o f pig iron rose from 1,887,145 IRON FOUNDRY OPERATIONS Third Federal Reserve District September August Change Capacity of furnaces.......... 15,117 tons 15,117 tons 0 % Production of castings. . . . 5,922 “ 5,591 “ + 5.9 U 719 “ Malleable iron................ 757 “ - 5.0 U Gray iron........................ 5,203 “ 4,834 “ + 7.6 It Jobbing......................... 3,541 “ 3,269 “ + 8.3 it For further manufacture 1,662 “ 1,565 “ + 6.2 n Shipments of castings........ 5,702 “ 4,977 “ + 14.6 n Value of shipments........ $1,080,707 $842,757 +28.2 it Unfilled orders................... 5,596 tons 5,870 tons - 4.7 u Value of unfilled orders.. $1,296,224 $1,423,340 - 8 . 9 It Raw stock: Pig iron........................... 8,430 tons 7,860 tons + 7.3 It it Scrap............................... 3,135 “ 3,160 “ .8 Coke................................ 1,929 “ 1,595 “ + 20.9 it 1924 T hird F R ederal September were less than during the preceding month. Stocks o f coke were 20.9 p e rc e n t heavier at the end o f last month and pig iron tonnages were 7.3 per cent greater but supplies of scrap were slightly less. Ship ments of gray iron castings by 26 firms manufacturing this product exclusively totalled 4,949 tons valued at $902,165 in September, as compared with 4,234 tons valued at $669,290 during August. In our sixth month’s survey o f the steel foundry industry in the Third Federal Reserve District, com parative figures are shown in the Steel foundries following table representing the principal operating features o f 6 identical companies having a total monthly steel making capacity o f 6,850 tons. During September production increased 20.3 per cent over that in the previous month, but shipments in both value and tonnage de clined 14.7 per cent. A t the same time a substantial increase in unfilled orders was reported. Total value was 18 per cent greater in September than it was in August and tonnage rose from 2,388 tons to 2,899 tons in the same period, a gain o f 21.4 per cent. Stocks o f pig iron and coke were lighter than in August but supplies o f scrap steel were 28.7 per cent heavier in September than they were during the previous month. STEEL FOUNDRY OPERATIONS Third Federal Reserve District Capacity of furnaces.......... Production of steel castings Shipments........................... Value of shipments......... Unfilled orders.................... Value of unfilled orders. . Raw stock: Pig iron........................... Scrap............................... Coke................................ September August 6,850 tons 2,885 “ 1,961 “ $341,155 2,899 tons $638,381 6,850 tons 2,398 “ 2,299 “ $399,899 2,388 tons $541,219 2,133 tons 8,259 “ 579 “ 2,151 tons .8 “ 6,418 “ + 2 8 .7 “ 621 “ - 6.8 “ Change 0 + 2 0 .3 -1 4 .7 -1 4 .7 + 2 1 .4 + 18.0 % “ “ “ “ “ AUTOMOBILES Sales o f automobiles during the third quarter have not been as great as those in the preceding three months, according to most dealers reporting to us, and they further state that total purchases are also substantially less than they were during the third quarter o f 1923. On the other hand, one dealer o f a well-known moder ate-priced car finds that total sales during July, August and September were greatly in excess o f those in the corresponding months o f last year. In the past four weeks, however, demand has increased and several prominent dealers estimate that October sales will sur pass those in September; indeed, in some instances this has already occurred. eserve D istrict 17 Opinions respecting the used car market vary some what. In some cases difficulty has been experienced in disposing o f second-hand m odels; in others, they are moving out o f the salesrooms almost as promptly as they are received. One dealer in summing up the situation says that, notwithstanding the fact that the call for used cars has recently slackened, there are fewer on his floor than for some time past. Shipments o f new cars from the factories are fairly prompt and, with the exception o f consignments o f a few types o f closed automobiles, no difficulty in securing deliveries is being encountered. A few price changes went into effect during the past quarterly period; some quotations were advanced slightly while others were reduced, but in the main prices have not changed since July. The desire for special models is becoming more widespread and the volume o f orders received for this class o f vehicles has enabled one manufacturer by increased production to lower the cost to the consumer by as much as $65. Stocks o f new cars in the salesrooms vary from heavy to light; the number of used cars available, however, is somewhat greater than is customary at the beginning o f the fourth quarter. Production o f passenger cars and trucks increased in September, as will be noted in the table below, which gives the output o f both types o f vehicles throughout the United States during each o f the past three months for which figures are available. For purposes of com parison, figures for each o f the corresponding three months in 1923 are also shown. PRODUCTION OF AUTOMOBILES* Passenger cars Trucks Month July.............................. August......................... September.................... 1924 1923 1924 1923 237,431 251,553 257,868 297,173 313,972 298,600 24,895 26,781 29,410 29,712 29,882 27,841 * Compiled by Federal Reserve Bank of Chicago. Collections are, for the most part, either fair or good though in one case they are classified as poor. COAL The call for anthracite has steadily improved during the past month and supplies o f stove sizes particularly are moving in even heavier Anthracite volume than they did a month ago. O f all grades steam coal is probably in least request though this circumstance is by no means unusual in this m arket; indeed for months past one o f the problems o f the coal interests has been T i8 he B usiness how best to stimulate activity among consumers o f these sizes. Lately, however, either as a reward for their efforts or for seasonal reasons the demand has increased somewhat though it still leaves much to be desired. Company prices are the same as they were a month ago but quotations posted by independent companies are in some instances as much as 75 cents higher per ton than they were at this time in September. In Philadelphia on October 23, independent prices o f stove coal were listed at from $9.85 to $10.25, as compared with from $9.35 to $10.00 on September 22. No changes, however, in quotations for steam sizes were reported during the period. Production since September 29 has been seriously hampered by floods in the coal regions and, though operations in most instances have been resumed, several mines in this district were reduced to less than 50 per cent o f full time operation. The effect o f the heavy rainfall on the output o f anthracite will be readily seen in the table below, which gives production figures in tons for each o f the last four weeks. For purposes o f comparison output during the corresponding four weeks in 1923 is also shown. September 20..................... September 27..................... October 4 .......................... October 11......................... 1924 1.851.000 1.942.000 1.425.000 1.737.000 1923 tons “ “ “ 877,000 2.025.000 2.015.000 1.943.000 tons “ “ “ * Compiled by the Geological Suryey. Reflecting the gradual improvement o f conditions in the various manufacturing industries, the demand for bituminous is slowly but unBituminous mistakably strengthening. Stocks already in the hands o f con sumers are far from light. A ccording to a late Govern ment report, 47,000,000 tons o f bituminous coal were held as reserves on September 1, in the entire United States. Though this total was 24 per cent less than that reported on January 1, it must be remembered that consumption is also less than it was nine months ago, especially as far as manufacturing interests are concerned. Thus it appears probable that, compara tively speaking, reserves now available would last practically as long as they would have in January, were it to become necessary to draw on them ex clusively. N ovember eview Prices are slightly higher than they were a month ago, though in this market quotations are generally unchanged. Spot prices continue to be lower than con tract quotations but neither are especially firm. In Philadelphia on October 23, Pool 10 coal was quoted at from $1.65 to $1.90 which was the same as the price listed on September 22. During that period, how ever, the “ Coal A g e ’s” index of spot prices advanced from 169 to 176, a gain o f 7 points. Since the week ending September 20, production has been increasing; in fact since the first o f the month weekly output has been greater than it was during the corresponding weeks in the previous month. Figures showing production in tons for each o f the past four weeks are given in the table below, together with those o f the corresponding four weeks in 1923. PRODUCTION OF BITUMINOUS* Week ending 1924 1923 September 20................. September 27................. October 4 ....................... October 11..................... 9,803,000 tons 10.140.000 “ 10.268.000 “ 10,548,000 “ 11.454.000 ton3 11,347,009 “ 10.699.000 “ 10.953.000 “ * Compiled by the Geological Survey. PRODUCTION OF ANTHRACITE* Week ending R Several mines in this district are still idle but others are being operated at capacity. A ccording to the Geological Survey the average rate o f operations in this district is not more than 50 per cent o f maximum output. There still exists a considerable surplus o f miners in some sections o f the coal fields. The coke market is somewhat more active than it was a month ago but as stocks are evidently ample and as consumers seem to be in no Coke hurry to place future orders, the present demand cannot be char acterized as better than fair. N o difficulty is being encountered in obtaining furnace coke at $3 per ton at the ovens, and foundry grades may be readily se cured at $4 per ton at the source. These established prices are the same as they were a month ago. Production o f beehive coke increased steadily in each week from September 20 to October 4, but during the week ending October 11 output declined. As will be seen in the following table, production during each of the past four weeks was less than half as great as that during each o f the corresponding periods in the pre vious year. During September, production o f by-product coke again increased. In that month 2,543,000 tons were T 1924 hird F ederal R eserve D istrict 19 produced as compared with 2,425,000 net tons in the preceding month. Output, however, was not as great as in September o f last year during which month the figure stood at 3,112,000 net tons. 140.000 bales smaller than last year to the same .date, notwithstanding that exports during the period are 100.000 bales larger than they were in 1923. PRODUCTION OF BEEHIVE COKE* SUPPLY AND TAKINGS OF AMERICAN COTTON* Week ending September 20............................ September 27............................ October 4 ................................. October 11................................. 1924 1923 122.000 tons 132.000 “ 139.000 “ 129.000 “ 335.000 tons 321.000 “ 312.000 “ 284.000 “ b'-V In bales Season of 1924-1925 Visible supply, American, at end of previous sea son (July 3 1 )................ 951,816 Crop in sight, American, on October 18............... 3,873,491 Season of 1923-1924 Season of 1922-1923 869,968 1,968,159 3,750,071 3,929,009 4,620,039 5,897,168 2,392,458 3,134,521 2,227,581 2,762,647 * Compiled by the Geological Survey. COTTON Although the weather continues to be a factor in the cotton market, it is no longer o f the first impor tance, for the amount o f the Raw cotton crop is now approximately known. Consumption is the item which is at present and will be during the coming months the factor controlling price. From September 23, the date o f our last report, to October 7 the quotation for spot cotton in New York rose from 24.15 cents to 26.35 cents and during that interval had touched 26.90 cents; but when the Govern ment report was issued on October 8, placing the con dition on October 1 at 53.5 per cent and indicating a probable crop o f 12,499,000 bales, prices fell. These figures compared with a condition o f 55.4 on Septem ber 15 and an estimated crop o f 12,596,000, and showed only a slight decrease. M oreover the Government figures were about in line with trade expectations. Prices, however, began to decline from the moment the report became known and have fallen almost steadily since then; by October 15 the price o f spot cotton in New Y ork had reached 23.40 but then rallied somewhat and on October 23 was 23.95. The factors which probably influenced the market most were the lessened domestic consumption as compared with last year, and the continuance since October 1 o f the favorable growing weather, which in some sections of the cotton belt will probably produce an increase in the crop. On October 14 the Bureau o f the Census issued its monthly report on domestic consumption; it showed that, although the September figure was appreciably larger than that for August, it was considerably smaller than the figure for September, 1923. Consumption was as follow s: September, 1924, 435,216 bales o f lint and 49,976 o f linters; August, 1924, 357,455 o f lint and 44,296 o f linters; and September, 1923, 485,665 bales o f lint and 50,652 o f linters. For the season to October 18, the w orld’s takings o f American cotton, as shown in the follow ing table, are Total......................... 4,825,307 Visible supply, American, on October 18............... 2,737,314 World’s takings of Ameri can to October 18........ 2,087,993 * Figures compiled by the New York Cotton Exchange. Trading in cotton yarns improved slightly during the early part o f the month, but lately it has become less active, and prices have weakened Cotton yarns somewhat. Although several dealers and spinners report that they have received a fair .amount o f advance business, the bulk o f sales call for immediate delivery. W hile the demand for fine grades in carded knitting yarns is confined to small orders, mainly for filling-in pur poses, activity in coarse types has been o f such a volume as to enable a number o f spinners to increase their current operations. W eaving yarns also have been in good request, better grades o f warps having been the principal feature o f the market. But as a rule buyers are slow to make future commitments, chiefly because o f the erratic fluctuations in raw cotton. This factor is also largely responsible for the prevailing quietness in the market for combed yarns, though in this connection several large contracts calling for fo r ward delivery are noted. Mercerized yarns continue in dull request, despite the fact that some mercerizers are operating on an increased scale o f production. Owing to a slight improvement in demand, produc tion is reported to have increased since last month. The majority o f spinners are utilizing their plant equipment to the extent o f about 75 per cent o f capac ity, although their advance business in the aggregate is about the same as it was last month. According to the preliminary figures, announced by the Bureau o f the Census, the average time o f operation in the United States during September was 25^2 days, as against 26 days in August. Based on activity o f 8.74 hours per day, the average number o f spindles operated dur ing September was 28,783,156 or at 76.1 per cent o f 20 T he B usiness single-shift capacity, as compared with 23,761,440 active spindles or at 62.8 per cent o f capacity during August, and at 93.2 per cent last year. A t the present rate o f production unfilled orders will insure operations for periods ranging from one to three months. Large1y because mills are working against orders in hand, stocks o f both yarns and raw materials are not burdensome in most cases. The supply o f labor is adequate and wages continue at the same levels as they were a month ago. Although lately quotations for yarns and raw cotton have eased off a little, the majority o f returns point out that, considering the past month as a whole, they have held firm ; in fact, they have advanced slightly, as compared with the previous month. Fairchild’s average price and index number shows an increase in quotations from 41.56 cents on September 20 to 43.73 cents on October 18, while the average price on January 19, 1924, was 53.29 cents per pound. The average price o f raw cotton advanced from 22.53 cents to 23.53 cents during the corresponding period, the quotation on January 19 being 33.64 cents. Dealers and spinners continue to encounter a steady opposition to prices, particularly in the market for hosiery and combed yarns. Collections are as satisfactory as they were last month or a year ago, and in some instances they appear to be even more prompt. The improvement in cotton goods noted last month has continued; this gain was especially marked during the last week o f September and Cotton goods first week o f October. Since then the declining quotations for raw cotton have caused some buyers to hesitate but even so the day to day turnover has been considerable. In staple lines such as print cloths, sheetings, sateens, and drills, manufacturers have sold heavily for nearby deliveries but, because o f the uncertainly o f crop and business conditions, buyers have contracted far ahead in only a comparatively few instances. Prices for these staples have followed closely the raw cotton market, advancing when it went up and declining with it. Makers o f fancy cotton dress goods are busy and some report that they can sell all that they can produce for at least six weeks to come. The naming o f un changed prices on ginghams for spring by the largest factor has been well received by the trade and is looked upon as a stabilizing influence. Orders for plush for furniture coverings and dress materials, curtains, draperies, awning stripes, towels and many other lines have increased but these too are in most cases for prompt delivery, indeed a considerable percentage of these call for immediate shipment for stock. The only manufacturers that report to this Bank that business is dull are makers o f tapes and other narrow fabrics and tapestry for furniture covering. Prices o f prac R N ovember eview tically all these finished cotton fabrics are unchanged and are firmly maintained. Operations have increased but stocks, though still moderate, have declined. Twenty-three manufacturers o f cotton goods in Pennsylvania, New Jersey and Delaware report to this Bank that for the week ending September 15, the number o f employees was 2.8 per cent larger than for the week o f August 15, and that total weekly wages and average weekly earnings in creased 4.4 and 1.6 per cent, respectively, in that period. The supply o f labor is sufficient and wage scales are unchanged. Collections continue to be either fair or good. WOOL Owing to a slight recession in buying, activity in raw wool during the latter part o f the past month has slackened somewhat, but the Raw wool market in general has lost none o f its strength, and prices have moved steadily upward. The majority o f local dealers state that, considering the month as a whole, the de mand for wools in all grades, fleeces and territories, has exceeded that o f the previous month and o f a year ago, and the actual sales, particularly o f quarter-blood and three-eighths together with finer qualities in both combing and clothing wools, have reached fair propor tions. Though moderately active conditions have con tinued also to mark the situation in pulled wools, trad ing in mohair and carpet wool has subsided somewhat but prices remain rather firm, principally because of limited supplies. Business in noils continues as brisk as it was last month. Generally speaking, dealers are looking for a good fall and winter season, basing their belief on the fact that business in dress goods, men’s wear fabrics and knit goods is gradually improving. The situation in the west has been somewhat com plicated by reports in regard to an outbreak o f the h oof and mouth disease in Texas, but the affected area has been held under control, and shearing has pro ceeded in a satisfactory manner. In fact, some o f the fall clip already has been shipped to the eastern markets. Though much o f this wool had been bought in advance o f shearing, it is said that there still remains in the hands o f growers a moderate quantity o f the new clip to be sold at various points o f concentration. Efforts have been made to buy some o f this wool but with little success. In consequence, with the new domestic clip about six months away and with the present stocks decreasing, dealers and manufacturers are keenly interested in the possibility o f obtaining wools from abroad, if business in yarns and goods continues to gain in activity. Conditions in the foreign markets, however, are beset with perplexities. The last auction sales in London displayed an unusual firmness, and quotations T 1924 hird F ederal were exceedingly high both for merinos and cross breds, even though they eased off slightly toward the end o f these sales. The bulk o f the demand came from the continent. Increased buying by dealers from Ger many, Japan, Belgium and France has been chiefly responsible for the strength in this market, though only limited quantities were purchased for the account o f American consumers. Stocks o f foreign wool appear to be limited, and shipments o f wools held in bond in the United States have increased during the past month. This is largely due to the prevailing dis parity in prices. Domestic fine wools can be bought considerably below quotations for wools taken out o f bond, while prices for the latter are still lower than those for wools offered in Australia and London. Imports o f wool in September amounted to 12,129,358 pounds, as compared with 8,631,020 pounds during August and 7,882,870 pounds in September o f last year. Local supplies o f wool are moderate, and, as com pared with last month, they are decreasing, in spite o f the fact that spinners recently have not been buying as freely as during the early part o f the month. In this connection it is interesting to note that stocks of raw wool held by manufacturers and dealers in the United States have been almost steadily decreasing since 1921. S i n c e t h e l o w p o i n t in 1921, p r i c e s o f b o t h f o r e i g n a n d d o m e s t i c w o o ls h a v e a b o u t d o u b l e d , a n d t h e r e la t iv e p o s i t i o n o f t h e t w o h a v e c h a n g e d , f o r e i g n w o o ls n o w b e i n g h i g h e r t h a n d o m e s t i c . T h e lin e s s h o w n i n e a c h c a s e r e p r e s e n t a v e r a g e p r i c e s f o r several g ra d es. Source—Fairchild News Service \\ Quotations for wools during the past month have advanced in this district as much as from 5 to 25 per cent, particularly for carpet wool. A s a general rule, many dealers regard this upward tendency in an un favorable light, because higher prices, they state, mean R eserve D istrict 21 greater risk and the necessity o f employing both capital and credit to a greater exten t; in short, the higher the general average of prices, the greater care needed to avoid losses. Dealers continue to encounter resistance to quotations, but, in the main, they find no difficulty in disposing o f their wool at the prevailing levels. A c cording to Dun’s average o f ninety-eight quotations, prices for raw wool were 88.18 cents per pound on October 18, as compared with 84.39 on September 20, and 74.28 cents per pound a year ago. The accom panying chart illustrates the steady rise o f prices since 1921. Collections are as prompt as they were during the previous month and at this time last year. Business in woolen and worsted yarns increased slightly during the early part o f the month, but recently trading has slowed down some W oolen and what. Sales o f weaving yarns worsted yarns are confined chiefly to small lots and for deliveries within the next sixty or ninety days. This is not unusual, however, in view of the fact that mills have already bought large quantities o f yarns, and such a temporary lull in activity as may be noticed at present is a natural condition. Producers o f men’s wear fabrics have been more active in buying yarns than manufacturers of dress goods, though both showed a considerable interest in such yarns as 2-36s, three-eighths, and 2-50s. Spinners have booked a fair amount o f business for these yarns, along with other varieties. W hile business in yarns for outerwear is rather slow, merino yarns for underwear are in fair request. The market for Jersey cloth and hosiery yarns is less active than it was last month, but demand for carpet and blanket yarns is fairly brisk. That production has further increased is shown by the fact that mills in this district are running at the present time at about 85 per cent o f single shift capac ity, as compared with 65 per cent last month. This is also indicated by the gain in the percentage o f active woolen and worsted spindles for the month. M ore over, advance orders on hand are larger than they were previously, and are sufficient to warrant operations at the present rate for a period o f from two to three months. The consumption o f wool in this district, as shown by returns from 76 establishments, was 28.1 per cent greater in September than in August. Stocks o f both finished goods and raw material continue to be moderately light and are tending dow nw ard ; in fact, spinners o f carpet yarns show some concern over the scarcity o f wool, owing to the military hostilities in China, and a consequent interruption in export o f carpet wool from that country. The supply o f labor is adequate, and wages remain unchanged. Although prices o f yarns have weakened somewhat during the last fortnight, they are still higher than those o f a month ago. The rapid rise in raw wool is T 22 he B usiness said to be responsible for the advance in quotations for yarns. Buyers, as a rule, continue to oppose higher prices, but they realize that under the circumstances no lower levels can be expected, particularly when there is a steady demand for raw material and finished goods. Settlements of accounts are as satisfactory as they were last m onth; indeed, in a few instances pay ments are even more prompt. During the past month activity in woolen and worsted goods has increased over that o f the previous month or o f a year ago. Initial W oolen and business in men’s wear fabrics worsted goods for next spring is said to have been booked in fairly large quantities, and mills, par ticularly those making cassimeres, have numerous or ders on hand calling for delivery during and beyond the period o f ninety days. The situation in dress goods, on the other hand, is not as satisfactory as was expected at the openings, although there is a marked demand for all kinds o f fancy fabrics with a wide range o f color. Producers, as a rule, prefer to see a more active busi ness in staple lines than in fancies, as it usually assures greater certainty o f production. Generally speaking, however, such twills as flannels and cassimeres, together with worsted and woolen filling goods, continue in good request. Velours are also enjoying a marked popularity at the present time. The recent gain in activity leads local manufacturers to feel optimistic in regard to further improvement in the market. A t present the majority o f the mills are utilizing their equipment to the extent o f about 80 per cent o f plant capacity. This is a considerable gain over the operations last m onth; indeed, factories appear to be much busier now than they have been for several A f t e r h a v i n g d e c l in e d f o r m o r e t h a n a y e a r , a n d r e a c h i n g a l o w p o i n t i n J u l y , 1924, e m p l o y m e n t a n d w a g e s h a v e t u r n e d s h a r p ly u p w a r d d u r i n g t h e la s t t w o m o n t h s . Source—Federal Reserve Bank of Philadelphia R N ovember eview months. As a result o f the increased business on hand, it is reported that operations are insured for periods ranging from three weeks to six months. Stocks of finished goods and raw materials continue in most cases to be moderately light. The supply o f labor is sufficient for the most part, and wages remain unchanged. The accompanying chart shows the status o f employment and wages, as reported by 31 concerns making woolen and worsted goods in the Third Federal Reserve District. In consequence o f higher prices for raw materials and the increased demand generally, quotations for finished goods have advanced materially, and are now holding firm, except in a very few instances. Several manufacturers state that they have sold some o f their men’s and women’s wear fabrics at the same levels as prevailed last month, but it was due to the fact that these goods were made from the old stock o f yarns, which were bought at concessions. Resistance to prices continues to be as determined as it was last month, particularly in staple lines and cloth for boys’ wear. Collections are good, and in a few cases are even more prompt than they were last month or a year ago. CLOTHING A s compared with the previous month, the situation in men’s clothing has improved slightly in this district, and prices have been steady in M en’ s wear most cases. A brief period of cool weather in the early part of October stimulated activity in heavy-weight fabrics to a considerable extent, although most of the orders received by manufacturers are not large and call for immediate delivery. Lately, however, duplicate busi ness slackened somewhat, principally owing to the warmer weather. A s a result o f the recent openings o f spring lines, offering a wide selection o f weaves, several producers have enjoyed a moderate amount of business, but generally speaking sales continue to be smaller in volume and in individual size than they were last year at this time. Buyers, as a rule, are reluctant to purchase ahead and are covering only their im mediate needs. In consequence, the bulk o f business is for delivery during the next sixty days. This lack o f orders for future requirements is largely explained by the fact that retail and jobbing trades have been slow in entering the market because o f doubt as to the future. Evidence o f this is found in recent reports showing that salesmen on the road encounter greater difficulties in securing advance orders than was the case immediately following the opening o f the season. There has been an appreciable improvement in pro duction over that during the previous month. The majority o f returns indicate that at the present time T 1924 F hird ederal R plants are running at about 75 per cent of single-shift capacity. A t this rate o f production unfilled orders on hand will insure operation for periods ranging from two weeks to three months. In this connection it is interesting to note that production o f men’s and boys’ wear for the United States during the four months ending August 31 was lower than that during the corresponding months o f last year, according to a comparative summary for 309 clothing establishments. In view of this decline, any noticeable degree o f gain in production creates an atmosphere o f optimism among manufacturers. Stocks o f finished goods and raw material in this district are moderately light and are generally decreasing. The supply o f labor is on the whole adequate and wages remain unchanged. Because o f higher prices o f piece goods, quotations for men’s clothing continue firm ; indeed, in several instances they have advanced in sympathy with those for raw materials, despite persistent efforts on the part o f retailers and jobbers to prevent prices from rising. The accompanying chart shows an almost uninterrupted advance in the average prices o f eight varieties o f men’s suits, and o f four grades o f men’s overcoats. A s compared with the pre-war market, prices in 1924 were 123.8 and 105.6 per cent higher, respectively. AVERAGE PRICES OF M EN ’S CLOTHING dollars C u ih O v e rcoc t s 25 20 15 A v e r a g e 1911-’l 3 A v e r a g e 1911 -'13 IO 5 O 1918 1919 1900 1921 1922 1923 1924 1918 1919 1920 1921 1922 1923 1924 W h o le s a le p r ic e s o f m e n ’ s r e a d y - t o - w e a r s u i t s a n d o v e r c o a t s h a v e m o r e t h a n d o u b l e d d u r i n g t h e l a s t d e c a d e , b u t n e v e r t h e le s s a r e n o w c o n s i d e r a b l y b e l o w t h e p e a k q u o t a t i o n s o f 1920. Source—Daily News Record Collections are not as satisfactory as they were last year at this time, some retailers paying only small amounts on account, with others asking for extension. But considering the lethargic conditions that prevail in business generally, payments on account are regarded as fair, with a slight tendency toward improvement. Activity in the market for shirts in this district has eserve D istrict 23 been unsatisfactory for the most part. W hile in some instances the turnover o f goods Shirts has been slightly larger than it was during the previous month, the volume o f business has declined in most cases, as compared with that o f last year. A t the present time, manufacturers are completing their fall deliveries o f shirts which had been purchased early in the season, and repeat orders are, on the whole, disappointing in that they are relatively small and infrequent. Open ings o f lines for next spring foreshadow a fair trade, as is indicated by the volume o f business secured by salesmen on the road and by the initial orders received by mills directly. However, still lacking confidence in the future, buyers are exceedingly slow to make future commitments and are inclined to purchase only for their immediate requirements. A s a result, the bulk o f business received by manufacturers is for quick delivery, very little o f it extending beyond the period o f sixty days. In consequence, production continues to be restricted, mills running at about 60 per cent o f single-shift capacity. Although several producers report that at present they_ have more advance business than they had last month, it is very difficult to determine how far ahead unfilled orders will insure operations because o f the prevailing uncertainty among manufacturers in regard to the current market for shirts for the spring o f 1925. Despite the efforts o f producers to avoid stock accumulation, several mills report that supplies o f finished products are somewhat heavy and are in creasing, but inventory o f piece goods remains about the same as it was last month. Generally speaking, there has occurred virtually no change in prices either fo r shirts or raw materials, quotations continuing firm, even though in a very few instances they are reported to be somewhat weak. W hile sellers are encountering considerable resistance to prices, particularly for medium and lower grades o f goods, the opposition is largely due, it is stated, to the current lack o f demand rather than to the inability of retailers and jobbers to market their merchandise at the prevailing quotations. Chiefly because o f un employment and general sluggishness in business dur ing the recent months, collections are not as satisfactory as they were last month or a year a g o ; in fact, they are slower in most cases, retailers often requesting exten sions for periods ranging from one to three months. SILK Following the recent quickening in activity o f raw silk, the market has again relapsed into a state o f quietness, and the trend o f prices Raw silk has been almost steadily down ward. W hile several orders o f fair size were placed during the past month by dealers T 24 he B usiness and makers o f hosiery and broad silks, the demand for raw silk here and abroad has slackened consider ably. T o induce business, importers and dealers, who had anticipated this relaxation in demand and prices, have gone even so far as to reduce their quotations below those in the primary market, but buyers appeared to be extremely cautious and slow in their response, apparently hoping to see a further easing in prices. Factors chiefly responsible for this reaction are the lessened activity in the market for broad silks and the sudden drop in the rate o f exchange for yen. A fter holding firm at about 41 cents, quotations for yen de clined almost steadily to about 38 cents. This is at tributed to an excess o f trade bills in Japan on account o f heavy importations o f cotton into that country from the United States. A s a result, quotations for raw silk are lower than they were at the beginning o f last month. Kansai double-extra cracks dropped from $6.30 per pound on September 22 to $6.10 per pound on Octber 22. Prices for artificial silk, on the other hand, are fairly steady. In contrast with the situation in pure silk, business in artificial silk continues brisk. Demand has broad ened to such proportions, it is reported, that it in cludes all grades o f this material, and comes from such consumers as mills making hosiery, knit wear, and cotton weavers. The growing popularity o f artificial silk in the United States is shown by the fact that its domestic production between 1919 and 1923 increased about 342 per cent, and the quantity consumed at present almost equals the volume o f imported natural silk. The accompanying chart illustrates the relation ship between the two commodities. DOMESTIC CONSUMPTION OF RAW AND ARTIFICIAL SILK THOUSAnDS or BALES 350 Raw sil k (re e le d ) 300 r- - - - - - 250 2 0 0 _____ 150 to o An+ificia silk 50 1913 1918 1919 1920 1921 1922 1923 A l t h o u g h t h e c o n s u m p t i o n o f n a t u r a l r a w s ilk h a s s h o w n a r e m a r k a b l e i n c r e a s e d u r i n g t h e la s t d e c a d e , t h e u s e o f a r t if ic ia l s ilk h a s g r o w n m u c h m o r e r a p i d l y ; i n f a c t , t h e c o n s u m p t i o n in 1923 w a s t e n t im e s a s g r e a t as i t w a s i n 1913. Sources—Department of Commerce, Silk Association of America R eview N ovember Imports o f raw silk for the past month amounted to 48,551 bales, nearly 2,000 bales greater than the previous high mark established in October, 1922, ac cording to the statement issued by the Silk Association o f America as o f October 1. These heavy imports would have resulted in an even sharper increase in stocks on hand than actually occurred if it were not for the fact that the estimated consumption o f raw material was correspondingly heavy. Deliveries to mills dur ing the same period totalled 36,366 bales, a volume which has been exceeded only twice since 1921. In this connection it is interesting to note that the total consumption o f raw silk for the first three months o f the season, which amounted to 96,836 bales, was greater than that during the similar periods o f 1923 and 1922 by 7,787 and 2,856 bales, respectively. Raw silk in storage as o f October 1 amounted to 42,260 bales, an increase o f 12,185 bales since September 1. It is said, however, that this stock is not burdensome and that the accumulation o f supplies in the New Y ork warehouses at this time is generally regarded as normal for the season. Although early in the month a reasonable amount o f business was done in broad silks, recently the mar ket has slowed down somewhat. Silk goods This is not unusual, however, in view o f the fact that the pres ent period is between seasons and for this reason sellers are not disturbed by the recession in activity. Current buying by jobbers and retailers is restricted principally to small lots, but the volume o f business in the aggregate is still reaching fair proportions, though it is not large enough to stimulate an increase in production to any great extent. The majority o f orders are mainly for immediate delivery, although several large mills have made a sizeable number o f sales for delivery during the next ninety days and even be yond that period. In addition to the various types o f satins and crepes, the new weaves o f failles, bengalines, poplins and velvet novelties, together with arti ficial satins and combination novelties, are moving in fair quantities. Prints, ribbed silks, brocades o f all descriptions and umbrella materials are likewise in good request. In ribbons the demand continues chiefly for a narrow variety, but a good inquiry is also in evidence for the wider types. Virtually no cancella tions have been reported. About half o f the returns from manufacturers o f silk goods in this district report that they are operating at approximately the same level as last month, while the other half note an appreciable degree o f improve ment. A t present most mills are utilizing their equip ment to the extent o f about 85 per cent o f plant ca pacity, and are delivering goods against orders which had been obtained previously. Owing to a larger amount o f advance business on hand than during the previous month, producers are assured o f running their T 1924 hird F ederal R eserve D istrict 2.5 erately light. The movement o f manufactured silk goods between the United States and foreign countries, indicated by the accompanying chart showing imports and exports o f finished merchandise, is o f interest. Quotations for silk goods in this district remain about the same as they were last month, though a con siderable number o f sellers state that prices have weak ened slightly along with quotations for raw silk and yarns. In combing the market for bargains, buyers continue to resist prices, but their opposition does not seem to be as determined at present as it was formerly. Payments on accounts are as satisfactory as they were last month or a year ago. HOSIERY In common with many other textile products, hosiery is in better request and mills are producing more than was the case a month ago. In spite o f this improve ment, however, conditions in the different mills con tinue to show little uniformity. One manufacturer reports that the demand for women’s hosiery is much better than for men’s half hose and another making similar merchandise reports reversed conditions. The same applies to women’s silk hosiery; some mills have booked an increased business in medium weights, whereas others say that chiffons are the best sellers. Novelties continue to be wanted but staples are also in fair demand. It is therefore only as we consider the industry as a whole that we can definitely point to a betterment. Prices are more stable and the changes I m p o r t s o f s ilk g o o d s i n t o t h e U n it e d S t a t e s h a v e i n c r e a s e d s h a r p l y d u r in g r e c e n t m o n t h s a n d are n o w a t th e h ig h e s t p o in t d u r in g th e c u r r e n t year. Source—Department of Commerce mills at the present rate o f operation for a period o f from one to five months. W hile the supply o f un skilled labor is adequate in most cases, several manu facturers note a slight scarcity o f skilled labor. Wages have neither risen nor declined. Apart from a number o f instances where stocks o f manufactured goods are heavy, inventories o f both finished product and raw materials appear to be m od HOSIERY INDUSTRY* Third Federal Reserve District Women’s Men’s In dozen pairs Full-fashioned August P r o d u c t io n ..................................................................... S h ipm en ts d u rin g m o n t h ........................................ F in ish ed p r o d u c t o n h an d at en d o f m o n t h . . . . O rders b o o k e d du rin g m o n t h ................................ C a n cella tion s re ce iv e d d u rin g m o n t h .................. U n filled ord ers on h an d a t en d o f m o n t h ............ 23,619 28,373 9,766 23,851 422 38,974 P r o d u c t io n ..................................................................... S h ipm en ts d u rin g m o n t h ........................................ F in ish ed p r o d u c t o n h an d at en d o f m o n t h . . . . O rders b o o k e d d u rin g m o n t h ................................ C a n ce lla tio n s re ce iv e d d u rin g m o n t h ................ U n filled ord ers o n h an d at e n d o f m o n t h ............ 17,591 16,503 70,122 39,487 71 44,299 * Preliminary report compiled by the Bureau of the Census. Full-fashioned Seamless September August September August September August September 25,461 32,980 8,983 42,130 1,334 48,364 171,055 226,308 415,370 207,166 9,034 274,413 197,537 220,438 396,690 269,255 4,302 312,298 195,333 179,774 510,277 234,343 9,051 878,736 218,988 253,619 480,093 263,308 60,823 849,803 154,177 174,633 244,795 206,506 15,779 159,173 194,519 193,581 252,297 245,051 2,635 211,978 Boys’ and misses’ August Seamless Children’s and infants’ Athletic and sport September August September August 21,734 17,572 75,287 23,825 210 49,789 60,321 35,397 237,229 151,373 5,813 268,476 82,914 33,742 287,718 73,656 2,916 304,676 2,405 1,354 15,794 2,667 3,871 September Total August September 624,501 743,632 2,479 1,336 662,342 753,268 17,737 1,503,353 1,518,805 2,410 865,393 919,635 40,170 72,220 4,945 1,667,942 1,781,853 26 T he B usiness have been comparatively few and slight; a few reduc tions are still to be noted but the percentage o f these is small as compared with the number who state that their quotations are the same as they were a month ago. In the accompanying table the operations in July and August o f 332 identical establishments represent ing 424 mills are summarized. Although the total pro duction increased, the output o f women’s full-fashioned and seamless and o f boys’ and misses’ hosiery was smaller, and by far the largest gain was in men’s seamless. The other items all show an improved con dition ; orders booked and unfilled orders are both larger, whereas there was a decrease in finished product on hand and in cancellations. HOSIERY INDUSTRY* United States In dozen pairs Production: Full-fashioned, men........................... Seamless, men..................................... Full-fashioned, women....................... Seamless, women................................ Boys’ and misses’ , all styles.............. Children’s and infants’, all styles... . Athletic and sport, all styles............. Total production.................................... Total shipments during month............. Total finished product on hand, end of month.................................................. Total orders booked during month . . . . Total cancellations received during month.................................................. Total unfilled orders on hand, end of month.................................................. July August 4 2 ,3 1 4 1 ,5 5 1 ,8 4 8 4 5 4 ,0 2 1 8 6 0 ,4 3 8 3 5 0 ,0 1 2 3 8 ,3 8 1 1 ,2 1 9 ,1 3 0 4 5 8 ,0 6 6 8 8 3 ,8 7 6 3 7 2 ,2 7 0 2 7 5 ,9 0 4 1 4 ,5 0 8 3 ,2 6 2 ,1 3 5 3 ,4 9 4 ,0 4 0 3 ,8 2 7 ,3 5 8 8 ,4 2 5 ,8 5 5 3 ,3 9 3 ,5 9 7 8 ,2 5 8 ,4 8 7 4 ,1 6 8 ,5 3 3 1 7 0 ,1 6 2 1 2 0 ,9 2 1 5 ,5 8 7 ,7 5 5 5 ,8 4 0 ,8 2 6 3 0 4 ,1 5 1 1 3 ,6 3 7 3 ,5 7 6 ,4 2 1 * Compiled by the Bureau of the Census. In this district the reports o f the same 108 estab lishments, which are shown in the table on page 25, in dicate that in September quite an improvement took place, and that trade broadened in most lines. Silk yarns are lower than they were a month ago, the decline at one time being fully 10 per cent, but more recently the market has strengthened and is now about 5 per cent lower than it was in late September. Cotton yarn has fluctuated considerably but after an early advance has reacted and prices are nearly on a parity with those o f a month ago. W orsted yarns have been strong and have risen from 10 to 15 per cent, and because o f this advance manufacturers o f worsted mixtures in men’s half hose are endeavoring to obtain a higher price for their product. Stocks o f finished hosiery, although they continue o f moderate size, are smaller than they were last month. Labor is in sufficient supply and wages are unchanged. Collections in a majority o f cases are classified as either fair or good, but about 20 per cent o f the re ports call them poor. R N ovember eview UNDERW EAR Conditions in the market for underwear vary so widely that it is difficult to reach definite conclusions regarding production and the volume o f business trans acted during the past month. Generally speaking, however, the demand for various types o f underwear has been more brisk than it was last month. This is particularly true in respect to the heavy-weight lines, in which duplicate orders for men’s ribbed goods showed a marked improvement in activity, especially during the latter part o f September. On the other hand, the situation in light-weight underwear continues to be unsatisfactory, although a slight gain over the previous months has been reported by a number of manufacturers. Confidence in the future seems to be still lacking among jobbers, who are buying sparingly, and only in sufficient quantities to cover their immediate requirements. In consequence, most o f the current sales call for quick delivery, although in several in stances orders call for delivery within and beyond the period o f ninety days. Uncertainty in the mar ket for raw cotton, fluctuation in prices, and unsold stocks from last season are among the principal factors responsible for the prevailing quietness in this trade. Except for a number o f instances where operations decreased slightly or remained unchanged, as compared with last month, production has improved somewhat. A t present mills are running at about 55 per cent o f single-shift capacity. A s a rule, they have enough o f advance business on hand to insure present operations for a period o f two months or more. The supply o f labor is sufficient, and wages remain the same as they were last month. W hile in several instances stocks o f both finished goods and raw material are said to be growing heavier, they are, for the most part, moderately light and stationary. Quotations for finished merchandise are generally weak, but prices o f raw materials are reported to be, in the main, firm, and in a few cases even higher than they were last month. A s a matter o f fact, prices o f manufactured goods have remained about the same as they were at the opening o f the season, though recently one producer o f women’s underwear for spring has ad vanced quotations slightly. Collections, in the main, are fairly satisfactory. FLOOR COVERINGS A month ago many in the floor covering trade were anticipating that the opening o f spring lines o f carpets and rugs would be held during October and were delaying their buying until that event, but as weeks passed without any sign o f this, it became evident that no lines would be opened until after Election Day. This meant that many buyers, both wholesalers and retailers, would have to replenish their stocks from goods o f the present season, and buying increased. 1924 T hird F ederal R The movement was strengthened also by the advancing quotations for carpet wools and yarns which made the chance o f lower prices for carpets and rugs o f the new season seem exceedingly slight. Nearly all the orders booked called for immediate shipment, but as manufacturers were well supplied with finished stock these orders were readily filled. In this district production in the mills which make carpet and rugs has again increased during the month, and as the demand has kept pace with this gain, stocks, though still moderate, have either remained stationary or decreased. The increased call has affected all grades except the very low ones, such as wool-fibres, in which strong competition with linoleum and felt base goods has been most marked, with the result that mills which make only these low grades are doing little or no busi ness. Prices are firm and for the most part unchanged although in a few cases advances have been made. For the week ending September 15, reports received from 14 manufacturers o f carpets and rugs in Penn sylvania and New Jersey show that, as compared with the week ending August 15, the number o f employees was 21.2 per cent larger, total weekly wages rose 24.2 per cent and average weekly wages 2.5 per cent. Labor continues in sufficient supply and wages o f both skilled and unskilled are unchanged. Raw material prices are either firm or higher; wool and wool yarns have advanced and the rise in worsted yarns, which are used in the manufacture o f highgrade floor coverings, such as worsted W iltons, has been especially marked. The explanation given for the flurry in carpet wools and yarns is the restricted supply available in both domestic and foreign markets. The continuance o f the disturbed conditions in China has already delayed wool from that market in reaching shipping points and threatens to make a large part o f that crop unavailable for the coming season. Manu facturers being anxious to secure at least a fair part o f their requirements have, therefore, bought a con siderable quantity during the past few weeks. In the linoleum market another combination o f a large manufacturer o f linoleum and a felt base goods producer has further narrowed the sellers to a few large firms. Some o f the lines for the new season are now on exhibition and in at least one case prices have been named and these quotations show no change. Busi ness throughout the country in these grades o f floor coverings continues unabated, the only dull spot being inlaids, and for these the call is somewhat better. The materials from which linoleum is produced are for the most part higher, linseed oil, burlaps and rosin having all advanced recently. Collections in all branches o f the floor covering in dustry are either fair or good and are the same as they were last month. eserve D 27 istrict LEATH ER The market for hides has been strong and fairly active during the m onth; packers are sold up closely to their kill and prices are about Hides and skins cent higher than they were a month ago. The country mar kets have moved in unison with the large markets and stocks are light. Calf skins have advanced in response to the keen demand for calf leather for women’s shoes and pack ers have sold at 24c per pound, the highest quotation for many months. In some markets premiums are being offered for lots especially suitable for making leather o f light weight. Sheep and goat skins, too, have risen in price, but in both o f these the higher quotations now named have tended to restrict business, as tanners hesitate to fol low the market further. In goat skins, lots suitable for making lining stock have been eagerly sought, but there are few such skins now available and they are held at prices which tanners consider too high. Stocks o f cattle hides, calf and kip and goat and kid decreased during August, but those o f sheep increased. All o f these changes, however, were small except in the case o f calf and kip, which declined per cent. The supply o f cattle hides reached a new low figure o f 3,760,239. 7.7 The demand for leather continues and while the total business may not reach that o f a month ago the markets have been strong and numerous Leather price advances are recorded. Although in many cases shoe manufacturers have finished cutting the early orders taken for autumn, they continue to buy in order to take care o f the new orders coming in. Sole leather sales, both to shoe manufacturers and the finding trade, are in fair volume and advances o f 1 to 2 cents per pound have been obtained quite gener ally. Indeed greater increases are said to have been paid in some cases. M oreover, large sales o f old leather, which has been hanging over the market for several years, have greatly improved the position o f the trade; prices were no doubt made attractive to the buyers o f such merchandise. Belting butts, however, continue to be in only moderate request. Upper leathers have been stronger, if anything, than heavy leathers, and an active demand is noted for grain calf leather, especially in women’s weights, in light and medium tan color. Tanners making this are oversold and are receiving daily many requests from shoe manufacturers to hurry shipments. For men’s and children’s shoes tan grain calf is also wanted, but not so urgently as for women’s wear. Prices have advanced 2 cents per foot recently, making a total rise o f 4 cents since midsummer. Cattle side leather in tan is being freely used as a substitute for calf in cheaper T 28 he B usiness R N ovember eview PRODUCTION OF LEATHER* July, 1924 • Backs, bends and sides....................................................................................... Belting butts........................................................................................................ Offal, sole and belting........................................................................................ Cattle side upper................................................................................................ Calf............. V ...................................................................................................... Sheep and lamb, upper...................................................................................... Goat and kid........................................................................................................ Cabretta............................................................................................................... 1,151,212 112,114 8,035,245 1,029,998 1,262,953 1,163,792 2,246,808 142,224 butts lbs. sides skins “ “ “ August, 1924 1,168,729 110,938 8,646,253 1,006,612 1,455,414 1,453,311 f2,150,005 138,530 butts lbs. sides skins “ “ “ Percentage of increase or decrease + + + + - 1.5 1.0 7.6 2.3 15.2 19.9 4.3 2.6 * Compiled from figures furnished by the Bureau' of the Census, t The lowest figure since March, 1921. shoes and has also risen in price. Sales o f patent leather, though fair, have been somewhat curtailed by the gain in popularity o f calf grain leather. Black kid leather has sold freely and tanners’ stocks have been brought down to a point where some o f them at least have little to offer. Others, however, continue to carry a fair supply, but it must be remembered that a large percentage o f the stock on hand is o f dark brown leather, for which at present the call is light. Grey kid leather for linings continues to be wanted because o f the continued vogue o f light colored hosiery and the supply is reported to be greatly decreased and prices have advanced considerably. Sheep leathers are also in request for linings and for infants’ cheap shoes, as well as in the bag and other leather trades. Belting leather is not as active as it was a month ago and sales have fallen off slightly. Belting scrap, o f which there has been a glut, is slightly improved, and this is o f considerable moment to the belt maker, as it is calculated that about 20 per cent o f the total quantity o f belt leather is in the form o f scrap. The supply o f labor remains sufficient and wage scales are unchanged. Thirty-three leather tanners in Pennsylvania, New Jersey and Delaware report that during the week ending September 15 as compared with that o f August 15 the number o f employees was 2.7 per cent larger and that total weekly wages and average weekly earnings increased 4.2 and 1.4 per cent, respectively. Collections are in nearly all cases re ported as good. Production in most lines o f leather is increasing slowly and tanners are wetting more hides and skins than they were a month ago. The latest figures on production, as shown in the accompanying table, indi cate that in August the output o f some lines was already showing an increase, but that at that time the others continued to decline. Although many o f the shoe factories in this district have finished making their early orders for autumn, new business has been received Shoes in such a volume that their pro duction has been increased to meet this demand. It is true that this year the early purchases by both wholesalers and retailers were smaller than usual, but it is equally true, as is shown below, that sales in this district both at wholesale and retail were larger in September than they were in 1923. It is probable that in other districts similar conditions existed; therefore, both wholesalers and retailers were compelled to enter the market again to replenish stocks and encouraged by their early fall business they have Stocks o f all leathers except belting butts, however, were then falling, as is shown in the accompanying table, which is also made up from figures furnished by the Bureau o f the Census. Since August, sales are reported to have been larger than production and stocks, therefore, are said to have shown further decreases. STOCK OF LEATHERS July, 1924 Calf 11 .................................................................................................. 8,130,357 915,828 56,969,295 6,669,126 7,131,214 5,559,389 23,769,909 2,085,909 butts lbs. sides skins “ “ “ August, 1924 7,707,135 947,797 55,635,956 6,299,920 7,026,587 5,161,930 22,015,612 1,999,641 butts lbs. sides skins “ “ “ Percentage of increase or decrease -5 .2 + 3 .5 -2 .3 —5.5 —1.5 -7 .1 -7 .4 -4 .1 T T924 hird F ederal R purchased with considerable freedom. Most o f the sales by manufacturers have been for prompt shipment, but some report that they have more orders for future delivery than they had a month ago. Prices are firmly maintained and a few manufacturers are asking an ad vance for some shoes, but they report that buyers are resisting higher quotations and that it is very difficult to obtain a better price, even though their costs have in creased, because of the advance in leathers and cotton goods. The magnitude o f the shoe industry in the United States can best be understood from a report prepared by the United States Census o f Manufactures which shows that in 1923 1,542 establishments were engaged in the manufacture o f shoes, other than rubber. The total number made was 351,114,273 pairs, having a value o f $950,479,368, and wage payments amounted to $239,395,811. In 1924 production has been lower than it was in 1923 and, although in August this year only 25,261.762 pairs o f shoes were made, as compared with 30,028,391 in August, 1923, the output was increasing, as in July only 21,398,498 pairs were made. The survey o f em ployment and wages made by this Bank indicates that production in the district, which usually is a fair guide to country-wide production, was larger in September than it was in August. For the week ending Septem ber 15, 29 shoe manufacturers reported that the num ber o f employees had increased 1.2 per cent as com pared with August 15 and that total weekly wages had gained 2.8 per cent and average weekly earnings 1.6 per cent in the same period. This indication’ is confirmed by a preliminary esti mate o f production in this district shown in the fol lowing table, while in the United States, advance figures point to a gain o f 8.5 per cent in country-wide production. BOOT AND SHOE PRODUCTION* Third Federal Reserve District Number of pairs B o o ts a n d shoes, t o t a l ............................... H ig h and lo w c u t (leath er) t o t a l .......... M e n ’ s ........................................................... B o y s ’ a n d y o u th s ’ ................................... W o m e n ’s ..................................................... M isse s’ an d ch ild re n ’ s .......................... I n fa n ts ’ ........................................................ A ll oth e r leath er o r p a rt lea th er f o o t w ear f ........................................................... September, 1924 August, 1924 1,643,251 1,583,250 127,467 160,578 330,831 518,765 445,609 1,580,314 1,528,975 124,820 175,359 275,870 524,791 428,135 60,001 51,339 * Preliminary report compiled by the Bureau of the Census, t Includes athletic and sporting shoes (leather), shoes with canvas, satin, and other fabric uppers, slippers for house wear, and all other leather or partleather footwear. eserve D istrict 29 Collections are fair and are somewhat better than they were a month ago. Sales o f shoes at wholesale, as is shown on page 10, were larger in September by 65.8 per cent than in August and by 5.1 per cent than iii September, 1923. A t retail, also, sales in September were larger than in the previous month or a year ago, as is shown in the following table. W om en’s shoes are in especially good request and, though patent leather, velvet, and satin continue to sell well, tan grain calf has gained quickly in popularity and is much called for. Prices are un changed and collections are fair. RETAIL SHOE TRADE Third Federal Reserve District 1. NET SALES (in terms of dollars): September, 1924, as compared with August, 1924.. + 1 4 .0 % September, 1924, as compared with September, 1923 + 0.2 “ 2. STOCKS (selling price): September, 1924, as compared with August, 1924.. + 1 5 .3 % September, 1924, as compared with September, 1923 — 3.1 “ 3. RATE OF TURNOVER (times per year based on cumulative period): July 1 to September 30, 1924................................... 2.3 July 1 to September 30, 1923 . . ; ............................. 2.1 Number of stores reporting above items: 1 ......................... 26 2 ................... 24 3 ................... 24 PAPER The majority o f paper manufacturers report that the demand for their products is greater than it was a month ago, but at only a few mills is it as heavy as it was in October, 1923. Makers o f book, fine, and glazed papers are the only group who find that their products are in greater request than they were a year ago. The output o f these papers has recently been increased, and the mills are operating at approximately 85 per cent o f capacity. W rapping and kraft papers, although they are in better demand than they were a month ago, are not selling as well as in October, 1923. Production is now at about 80 per cent o f capacity. The call for fine tissues is not as good as it was a month ago and mill output has decreased. Toilet tissues and crepe towels are in only fair demand. Wall papers are selling actively and most factories are operating at capacity. The demand for box boards is fairly good, but is not as heavy as it was a year ago. Building papers and board are selling in fair volume, but here, too, business is not as active as it was at this time last year. Envelopes are in greater request than they were last month and factory operations have increased to 75 per cent. Hand-to-mouth buying is still the prac tice o f consumers and as a result most mills have only from 10 days’ to two weeks’ business on hand. Paper prices are generally firm and show little T 30 he B usiness change from those o f a month ago. Some weakness has been apparent at times in the prices o f boxboards and some wrapping papers, but it has been only siight. Some grades o f fine paper show a slight upward trend in price. Mechanical pulps are firm and a few grades o f chemical pulps are slightly higher than they were a month ago. The majority o f mills report that both finished stocks and supplies o f raw materials are moderate in size and about the same as last month. PAPER BOXES The demand for paper boxes varies from fair to good and is considerably greater, at most factories, than it was a month ago. Candy manufacturers have come into the market heavily and have placed the ma jority o f their orders for Christmas needs. Hosiery manufacturers are also taking larger quantities o f boxes than they have for many months, but other knitted goods lines are buying sparingly. Shirt makers find business dull and are purchasing few boxes, but the demand from shoe manufacturers is increasing. Manufacturers o f hardware and electrical supplies, packers o f food stuffs, and makers o f perfumes are buying actively. Folding boxes and mailing tubes are in fairly good request and are selling better than they were a month ago. Operations at news and chipboard box factories, as indicated by reports to us, average about 80 per cent o f capacity. The demand for corrugated boxes has increased and is fairly good. Most factories are now operating at approximately 80 per cent. The call for fibre shipping containers is well maintained and oper ations in this branch o f the industry are at about 85 per cent. Orders for future delivery have increased and although some manufacturers have only two weeks’ business on hand, many others have 60 days’ business booked. R N ovember eview Quotations for cigars are firm and have not changed from those prevailing in September; prices o f raw materials, generally speaking, too, are the same as those listed a month ago. Stocks o f finished products are in no instances more than moderate; in a few cases they are even light, though all are comparatively stationary. Supplies o f raw materials are held in only reasonable quantities and these, too, are being maintained at sta tionary levels. Manufacturers reporting to us are operating all the way from 60 per cent to total capacity, the average rate being around 70 per cent o f maximum output. The filling o f orders already taken will necessitate the continuance o f this rate for an average period o f close to 4 weeks. A ccording to the Bureau o f Internal Revenue, production o f all classes o f cigars in the en tire United States during September totalled 605,608,215, as compared with 573,626,971 in the preceding month and 598,817,342 cigars during September o f last year. AGRICULTURE Exceptionally fine weather, free from killing frosts, has helped some o f the late crops and has offered ideal conditions for the harvests. Favored also with ample labor, in contrast to the acute shortage o f last fall, farmers have been able to gather their crops promptly. The peach and tobacco crops have been completely harvested; apple and pear picking is about three-fourths finished; a considerable portion o f the late potato crop has been dug; and most o f the corn crop has been cut. Fall plowing has begun and winter wheat plant ings are nearly completed. Reports from county agents state that farmers are planting slightly larger acreages o f wheat than they sowed last fall, and ac- Price cutting is still noticeable, but it is not quite as severe as it was during the previous three months. Most boxmakers, however, report that prices, although the same as they were a month ago, are weak and that the margin o f profit is small. Board prices are firm and practically the same as they were a month ago. A scarcity o f skilled labor is reported at some fac tories, but in most cases the supply is sufficient. U n skilled labor is plentiful. CIGARS A n improved demand for cigars is reported by manu facturers in this district who, in classifying it as fairly good, say that it is unmistakably stronger than it was a month ago, though not yet as satisfactory as in O c tober, 1923. U nfilled orders are larger than they were a month ago and shipments extend somewhat further into the future but deliveries are practically all speci fied as immediate or within 60 days. A l t h o u g h b y - p r o d u c t m i l l f e e d s a r e e i t h e r h i g h e r o r t h e s a m e as th e y w e r e a y e a r a g o , t h e p r i c e o f h a y is m u c h lo w e r . S o f a r t h is y e a r m il k p r ic e s h a v e b e e n s t e a d y . Sources—Department of Agriculture, Interstate Milk Association 1 924- T F hi rd ederal R eserve D istrict 3i ESTIMATES OF CROP YIELDS (In thousands of units) New Jersey Pennsylvania 1924 1924 From con dition on Oct. 1 or preliminary C o r n ........................................................ 4 8 ,5 5 6 O a t s ......................................................... 3 6 ,6 4 8 B u c k w h e a t ........................................... 4 ,9 9 4 P o t a t o e s ................................................ 2 6 ,3 2 8 S w eet p o t a t o e s ................................... 239 Hay (tame).................................. 4 ,6 0 0 5 5 ,2 6 4 Tobacco . . A p p les ( t o t a l ) ...................................... 7 ,2 6 7 811 A p p les (co m m e rcia l c r o p ) ............. P e a r s ....................................................... 619 C ra n b e r rie s.......................................... bus. “ “ “ “ to n s lbs. bus. bbls. bus. Delaware From con dition on Sept. 1 5 1 ,4 5 4 3 7 ,3 9 6 4 ,9 9 4 2 4 ,9 0 3 249 4 ,5 1 2 5 7 ,0 2 4 7 ,2 6 7 811 623 bus. “ “ “ “ to n s lbs. bus. bbls. bus. 1923 6 1 ,6 4 0 3 3 ,9 3 0 4 ,8 8 0 2 6 ,1 4 5 260 3 ,0 6 6 5 S ,9 5 0 1 0 ,8 5 5 1 ,2 6 6 612 cording to their estimates the sowings this year will be 5 per cent greater than in 1923. The rising price o f wheat has evidently influenced the growers to increase their acreage. Estimates o f yields made by the State Departments o f Agriculture from conditions on October 1 indicate that the production o f potatoes, sweet potatoes and hay will be greater than was in prospect on September 1. Tobacco and corn yields in Pennsylvania, how ever, will be smaller than September 1 estimates indi cated; but the corn crop in New Jersey will be larger. The following table shows how estimates o f produc tion by the Department o f Agriculture on October 1 and September 1 compare with those o f last year. Late fruit production in the Third Federal Reserve District will not be as large as it was in 1923. The apple crop is considerably smaller than it was last year and the quality is poorer, due to the heavy in fection o f the apple scab. The outlook for the pear crop on October 1 was not as promising as on Sep tember 1 and a smaller crop than was harvested in 1923 is now indicated. A reduction in the estimate o f production o f cranberries in New Jersey has also occurred and the crop is expected to be 7 per cent smaller than it was last year. Pastures are in good condition and estimates of hay production on October 1 were revised upward, so that one o f the largest hay crops on record is looked for in this district. Both in Pennsylvania and New Jersey the yield per acre is much greater than the average. A s a result o f this abundance o f roughage bus. “ “ “ “ ton s lbs. bus. b b ls. bus. From con dition on Oct. 1 or preliminary From con dition on Sept. 1 7 ,8 0 4 bus. 7 ,6 1 4 bus. 2 ,0 7 3 “ 2 ,0 1 6 “ 200 “ 2 00 “ 9 ,7 5 0 “ 9 ,9 4 6 “ 2 ,2 1 0 “ 2 ,2 9 5 “ 531 ton s 494 ton s 2 ,1 4 6 472 642 190 1924 1923 From con dition on Oct. 1 or preliminary 1923 9 ,4 4 0 bus. 4 ,4 4 0 bus. 6 ,0 5 7 bus. 1 ,6 3 2 “ 210 “ 182 “ 2 10 “ 117 “ 144 “ 7 ,6 0 0 “ 920 “ 800 “ 2 ,1 9 6 “ 1 ,1 2 5 “ 1 ,0 0 8 “ 328 ton s 138 ton s 93 ton s bus. 2 ,3 9 0 bus. 2 ,2 0 3 bbls. 526 b b ls. 4 70 bus. 634 bus. 662 bbls. 200 bbls. 204 bus. 1 ,1 8 3 bus. 1 ,2 0 0 bus. bbls. 307 bbls. 340 bbls. bus. 320 bus. 370 bus. bbls. and pastures, dairy herds are in good condition and on October 1 were somewhat above normal. The prices o f dairy rations are now about the same as they were a year ago. A s shown in the preceding chart, most by-product mill feeds are higher than they were a year ago because grain prices have advanced. Hay, the principal roughage, is much cheaper than it was last fall, so it may be assumed that dairymen will feed more roughage to their herds and less by-product feeds than last fall. Milk prices in this district have re mained at the same level during the first ten months o f this year. Reports from many county agents state that sales o f hogs for slaughter have not been as heavy this fall as they were in 1923. There are fewer hogs fit for market on the farms than there were last fall and the condition o f those being marketed is poorer than it was a year ago. H igh corn prices have forced farmers to feed lighter rations and consequently the hogs are not as well fattened as they normally are at the time o f marketing. The new crop hogs, however, are in fair condition and about equal to the October normal, but their number is smaller than it was a year ago. Farm labor is much more plentiful than it was a year ago and in most parts o f the district the supply has been sufficient to meet the demand. A few coun ties report some scarcity, but it has not been serious. Most o f the crops have been harvested promptly as they matured. The average wage o f laborers hired by the month, in New Jersey, is about one per cent lower than that o f a year ago. C O M P I L E D A S O F O C T O B E R 23. 1924. This business review will be sent regularly without charge to any address upon request T 32 he B usiness R N ovember eview BUSINESS INDICATORS Third Federal Reserve District The following data refer to the Third Federal Reserve District except where otherwise noted Latest figure compar jd with Sept., 1924 Aug., 1924 Sept., 1923 Year ago Previous month Retail trade—net sales f (156 stores).................... Department stores (63)...................................... Apparel stores (46).............................................. Shoe stores (26)................................................... Credit stores (21)................................................ $20,176,000 $16,238,000 $2,714,000 $439,000 $785,000 $16,356,000 $12,995,000 $2,027,000 $385,000 $949,000 $19,755,000 $15,900,000 $2,549,000 $438,000 $868,000 + + + + - 23.4% 2 5 .0 “ 3 3 .9 “ 14.0“ 17.3“ + + + + - Wholesale trade—net sales (164 firms)................. Boots and shoes (12 firms)................................. Drugs (15 firms).................................................. Drygoods (18 firms)............................................ Electrical supplies (6 firms)............................... Groceries (57 firms)............................................ Hardware (31 firms)............................................ Jewelry (13 firms)............................................... Paper (12 firms).................................................. $12,094,829 $436,363 $1,502,759 $1,385,911 $580,997 $4,636,971 $2,128,696 $534,808 $888,324 $10,634,197 $263,160 $1,421,881 $1,027,452 $485,310 $4,107,132 $2,030,203 $385,699 $913,360 $12,088,988 $415,242 $1,375,756 $1,637,931 $548,971 $4,492,881 $2,113,572 $556,918 $947,717 + + + + + + + - 1 3 .7 “ 6 5 .8 “ 5 .7 “ 34.9“ 19.7“ 12.9“ 4 .9 “ 3 8.7“ 2 .7 “ + 0 .0 “ + 5 .1 “ + 9 .2 “ -1 5 .4 “ + 5 .8 “ + 3 .2 “ + 0 .7 “ - 4 .0 “ - 6 .3 “ prs. 1,643,251 tons 142,708 doz. prs. 743,632 tons 5,922 tons 2,885 bbls. 3,528,000 tons 7,601,000 prs. 1,580,314 tons 130,594 doz. prs. 624,501 tons 5,591 tons 2,398 bbls. 3,621,000 tons 7,086,000 prs. . tons 219,175 doz. prs. tons . . . . tons ............... bbls. 3,293,000 tons 2,917,000 per cent 48.6 lbs. 8,177,592 per cent 42.2 lbs. 6,3S4,777 per cent 64.3 4- 15.2“ lbs....................... 4- 2 8 .1 “ 87,633,233 59,076,585 96,839,999 4- 4 8 .3 “ 206,982 tons 2,806,073 bus. 2,249,753 lbs. 11,720,070 gals. 13,860,000 194,501 tons 2,681,218 bus. 1,023,339 lbs. 6,642,608 gals. 17,907,666 $1,009,700,000 $985,500,000 $19,194,000 $21,315,000 $6,038,000 Production: Shoes* (114 factories)......................................... Pig iron................................................................ Hosiery* (108 mills)............................................ Iron castings (32 foundries)............................... Steel castings (6 foundries)................................ Cement................................................................. Anthracite............................................................ Bituminous coal (Central district—percentage of full-time output)......................................... Wool consumption* (76 mills)........................... Active cotton spindle hours (Pennsylvania and New Jersey)..................................................... Distribution: Freight car loadings (Allegheny district— weekly average)............................................... Tonnage of vessels (Port of Philadelphia)........ Exports of wheat (from Port of Philadelphia).. Exports of flour (from Port of Philadelphia)... Imports of crude oil (into Port of Philadelphia) Financial: Loans, discounts and investments of member banks (weekly average).................................. Bills discounted held by Federal Reserve Bank of Philadelphia (daily average)...................... Acceptances executed (12 banks for month ended 10th of following month)..................... Bankers’ acceptances sales (5 dealers—weekly average for period ended middle following month)............................................................. Commercial paper sales (5 dealers)................... Savings deposits (99 banks)............................... General: Debits (18 cities)................................................. Commercial failures............................................ Commercial failures—liabilities......................... Building permits (15 cities)............................... Building contracts awarded (Philadelphia disEmployment—number of wage earners (1,024 plants in Pennsylvania, New Jersey and Delaware)............................... ........................ Average weekly earnings (354,711 wage earners in Pennsylvania, New Jersey and Delaware) Sales of life insurance (Pennsylvania, New Jersey and Delaware)..................................... * Bureau of Census preliminary figures, t Estimated. 214,026 tons 2,609,082 bus. 1,266,228 lbs. 18,463,246 gals. 20,593,146 4- 4 0 “ + 9 .3 “ 4- 19 1“ 4- 5 9 “ 4- 2 0 .3 “ 2 .6 “ + 7 .3 “ 4- 6 .4 “ 4- 4 .7 “ 4-119.8“ 4- 7 6.4“ - 2 2 .6 “ $932,800,000 4- 2 .5 “ + 7 .1 “ + 160.6“ -2 4 .4 “ - 9 .5 “ - 3 .3 “ + 7 .6 “ + 7 7 .7 “ -3 6 .5 “ -3 2 .7 “ + 8 .2 “ -6 8 .4 “ $3,2S4,000 $3,0S2,000 4- S3.9“ + 9 5 .9 “ $980,000 $9,685,000 $533,691,000 $179,000 $7,432,500 $533,253,000 $2,801,000 + 4 4 7 .5 “ $6,272,000 + 3 0 .3 “ $499,284,000 + 0 .1 “ -6 5 .0 “ + 54.4“ + 6 .9 “ $1,996,709,000 $1,315,533 $17,450,446 $1,941,441,000 63 $1,366,943 $27,257,295 $1,864,358,000 44 $2,695,645 $11,665,973 $48,271,700 $37,489,400 $19,641,200 354,711 347,358 + 2 .1 “ $25,26 $25.00 + 1 .0 “ $56,294,000 $60,295,000 - 6.6“ $52,847,000 - -3 4 .9 “ 10.0“ 73 $60,692,000 2.1% 2 .1 “ 6 .5 “ 0 .2 “ 9 .6 “ + 2 .8 “ + 15.9“ 3 .8 “ - 3 6 .0 “ + 7 .1 “ + 6 5 .9 “ -5 1 .2 “ + 4 9 .6 “ + 6 .5 “
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