The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT NOVEMBER i, 192.7 » By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA B U SIN E SS C O N D IT IO N S IN T H E U N IT E D S T A T E S Industrial and trade activity increased less in September than is usual at this season of the year and continued to be in smaller volume than a year ago. The general level of wholesale commodity prices showed a further rise, reflecting chiefly price advances for agricultural commodities. Production. The Federal Reserve Board’s indexes of both manufacturing and mineral production, in which allow ance is made for usual seasonal varia tions, decreased between August and September. Production of iron and steel was in smaller volume in September than in any month since 1925. There were also decreases from August to September in the output of non-ferrous metals, auto mobiles, and rubber tires, while the tex tile and shoe and leather industries con tinued active. The production of bitumi nous coal showed about the usual seasonal increase in September and October, but continued in smaller volume than dur ing the same period of other recent years. The output of anthracite was consider ably reduced during September and the first half of October, following an increase in August, and the weekly output of crude petroleum has decreased slightly since the early part of August. The value of building contracts awarded continued somewhat smaller during Sep tember and the first three weeks of O c IN D U S T R IA L tober than during the corresponding period of 1925 or 1926; declines occurred in con tracts for residential, commercial, indus trial and educational buildings, while con tracts for public works and public utilities were larger in September than in the cor responding month of any previous year. Crop conditions improved in Septem ber and the Department of Agriculture’s estimates for October 1 indicated larger yields of most grain crops than were ex pected a month earlier. The estimate for the corn crop was increased by 146,000 000 bushels and was only 43,000.000 bushels smaller than the yield in 1926. Wheat production is expected to be 34,000,000 bushels larger than last year, while the estimated cotton crop of 12,678,000 bales is more than 5,000,000 bales below last year’s yield. Distribution. Trade of wholesale and retail firms increased in September by somewhat less than the usual seasonal amount. Compared with a year ago, sales of wholesale firms in nearly all lines, ex cept shoes and drugs, were smaller. Sales of department stores were in about the same volume, and those of mail order houses and chain stores were somewhat larger. Inventories of merchandise car ried by reporting wholesale firms in lead ing lines were reduced in September and continued; smaller than last year. Stocks of department stores, on the other hand, increased slightly more than is usual in September and at the end of the month was somewhat larger than a year ago. Freight car loadings were in smaller volume during September and the first week of October than in the correspond ing period of last year for all groups of commodities, except grain and grain prod ucts, of which loadings were larger than in the same period of any previous year since 1924. P rices. Wholesale commodity prices advanced in September for the fourth consecutive month, and the Bureau of Labor Statistics all-commodities index rose to the highest level since last Janu ary. There were large increases between August and September in the prices of livestock, meats, and cotton, and small advances in the prices of leather, coal and chemicals, while prices of grains, building materials, and rubber declined. During the first three weeks in October the prices of spring wheat, corn, cotton, coal and iron and steel declined, while prices of livestock, raw wool and rubber advanced. Bank credit. Total loans and invest ments of member banks in leading cities showed a further increase for the four weeks ending October 19 and on that date were about $660,000,000 larger than in midsummer. Of this growth in member bank credit about $325,000,000 represented P R O D U C TIO N PER-CENT PFR CFNT 150 150 100 100 50 50 1923 1924 1925 1926 1927 0 In d ex n u m b e r o f p r o d u c tio n o f m a n u fa c tu r e s a n d m in e r a ls c o m b i n e d , a d j u s t e d f o r s e a s o n a l v a r i a t io n s (1923-25 a v e r a g e = 1 0 0 ). L a t e s t f ig u r e , S e p t e m b e r , 105. I n d e x o f U n it e d S t a t e s B u r e a u o f L a b o r S t a t is t i c s (1 9 2 6 = 1 0 0 , 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 f ig u r e , S e p t e m b e r , 96.5. M o n t h l y a v e r a g e s o f w e e k ly fig u r e s f o r b a n k s in 101 le a d i n g c it i e s . L a t e s t fig u r e s a r e a ver a g e s f o r fir s t t h r e e w e e k ly r e p o r t d a t e s in O cto b e r. Page One Latest figure compared with BUSINESS IN DICATORS Philadelphia Federal Reserve District M o n t h l y a v e r a g e s o f d a ily fig u r e s f o r 12 F e d e r a l R e s e r v e B a n k s . L a t e s t fig u r e s a r e a v e r a g e s o f fir s t 23 d a y s in O c t o b e r . an increase in commercial loans, a con siderably smaller increase than for the same period last year, and about $335,000,000 an increase in investments and loans on securities. At the reserve banks total bills and securities increased during the four weeks ending October 19, as is usual at this sea son, but were on the average about $60_000,000 below the level of the correspond ing period last year. The increase, which was largely in the form of additions to the banks’ holdings of acceptances, reflected chiefly an increase in member bank re serve requirements and an export demand for gold. Some seasonal firmness in the money market in October was reflected in an increase from 3Y% to 3% per cent in rates on 90 day bankers’ acceptances. The rate on commercial paper remained unchanged at 4 per cent. B U SIN E SS C O N D IT IO N S IN T H E P H IL A D E L P H IA F E D E R A L R E S E R V E D IS T R IC T Activity in trade and industry in the Philadelphia Federal Reserve District is moving forward at a moderate pace. Seasonal gains are evident in most lines of business, although the rate of expan sion has not been as pronounced as that at the same time last year. Improvement in agricultural conditions, well sustained operations in most basic industries, larger distribution of goods, a further rise in the level of wholesale prices and an ample volume of funds available for the accom modation of business have been the prin cipal features of the month. Business transactions involving pay ments by check in the leading cities of the district in the first three weeks of October continued to show a greater volume than in the corresponding weeks a month and a year before. Railroad shipments of merchandise and miscellaneous com modities in the Allegheny district have increased in the month, but have been somewhat under the volume of a year ago. Total railroad shipments also were greater than a month earlier, but were almost 8 per cent smaller than at the same time last year. Early reports indicate that October Page Two September, 1927 Previous month Year ago + 1 4.8 % + 1 7 .6 “ 0 .0 “ + 1 8 .6 “ -2 1 .0 “ - 4 .7 % - 4 .3 “ - 5 .4 “ + 2 .9 “ -1 8 .2 “ Retail trade— estimated net sales (134 stores)...................... Department stores (6 2 )................................. Apparel stores (3 1 )..................................................... Shoe stores (2 5 ).............................................. Credit stores (1 6)..................................................................... $19,326,000 $16,353,000 $1,747,000 $602,000 $624,000 W holesale trade— net sales (137 firm s).................................. Boots and shoes (9 ).................................. Drugs (1 4 )................................................................................. D ry goods (1 7 ).......................................................................... Electrical supplies ( 5 ) ............................................................. Groceries (4 6 )........................................................................... Hardware (2 5 )....................................................... Jewelry (1 1 ).............................................................................. Paper (1 0).................................................... $9,778,797 $360,953 $1,618,562 $1,002,539 $588,435 $3,286,209 $1,882,826 $467,525 $571,748 + 6 .8 + 4 .1 + 2 .0 + 2 3 .9 + 4 5 .4 + 2 .4 + 6 .9 + 5 .7 - 4 .7 “ “ “ “ 8 “ “ 8 “ - 6 .9 -1 7 .1 - 1 .9 - 8 .4 + 2 5 .4 -1 1 .8 - 4 .5 -1 0 .4 -1 0 .8 280,127 $7,011,198 1,620,834 1,279,143 7,831,866 82,842,061 260,777 4,014 5,137 6,642,000 10,414,000 4,0 5 8,00 0 396,200,000 - 0.1 - 2 .2 - 6 .8 + 3 .4 + 0 .7 + 2 8 .0 + 2 .7 - 5 .7 -2 2 .1 -1 4 .3 + 2 .0 - 4 .4 - 1 .3 “ 8 “ “ “ “ “ “ “ “ “ “ 8 - 9 .8 “ -1 0 .5 “ Productive activity: Employment— 832 plants in Penna..................................... W age payments in above plants........................................... prs. doz. prs. lbs. Active cotton spindle hours (Penna. and N. J .) ............... Pig iron production................................................................. Iron casting production (31 foundries)............................... Steel casting production (12 foundries).............................. Anthracite.................................................................................. Bituminous coal— Penna........................................................ C em ent............................................... Electric power output (13 system s)..................................... Distribution: Freight car loadings (Allegheny district— weekly average) Tonnage of vessels( Port of Philadelphia)......................... Financial and credit: Debits (17 cities)...................................................................... Savings deposits (95 ban ks)................................................... Loans, discounts and investments of member banks (weekly average).................................................................. Bills discounted held by F. R. B. of Phila. (daily average) Acceptances executed (9 banks for month ended Sept. 1 0 )........................................................................................... Bankers’ acceptances sales (4 dealers— weekly average for period ended October 1 2 )........................................... Commercial paper sales (5 dealers)...................................... Commercial failures— number.............................................. Commercial failures— liabilities............................................ Building and real estate: Building permits (15 cities)................................................... Building contracts awarded (Philadelphia d istrict)......... Number of real estate deeds recorded (Philadelphia co u n ty )................................................................................... Value of mortgages recorded (Philadelphia cou n ty)........ M iscellaneous: Sales of life insurance (Penna., N. J., and D e l.)............... Retail sales of automobiles (12 distributors)..................... Wholesale sales of automobiles (13 distributors).............. tons tons tons tons tons bbls. KW H tons - 1 .2 -1 5 .4 -1 6 .2 -3 9 .5 -2 0 .8 -2 6 .9 + 3.1 + 1.9 “ 8 8 8 8 “ “ “ “ 8 8 8 8 8 8 8 8 217,583 3,443,172 + 1.7 “ - 4 .7 “ — 5 .6 “ - 4 .0 8 $ 2,460,079,000 $642,048,000 + 6 .4 “ + 0 .4 “ + 5 .6 8 + 8 .2 8 $1,210,800,000 $38,865,000 + 1.7 “ - 2 .6 “ + 4 .3 8 -1 5 .9 8 - + 3 2 .5 8 $4,581,000 $2,177,000 $10,582,658 73 $1,295,236 5.1 “ + 133.1 + 2 8 .0 + 3 5 .2 + 1 7 .1 “ “ “ 8 -1 3 .1 + 8 9 .7 + 4 .3 + 1.4 8 8 8 8 $16,246,441 $43,237,356 -1 0 .7 “ - 4 .8 “ + 1 6 .7 8 + 1 0 .3 8 4,707 $22,998,000 - 5 .9 “ -2 1 .2 8 - 1 .3 8 - 1 1 .3 8 $73,593,000 $2,350,000 $4,246,000 - 7 .1 “ -3 7 .8 “ -2 3 .6 “ + 1 1 .7 8 - 3 .4 8 -1 1 .9 8 * Bureau of Census preliminary figures. business in retail and wholesale trade continues fair. Although retail trade during September increased seasonally, it failed by nearly 5 per cent to equal the volume in the same month of last year. Similarly, wholesale trade, though increasing in the month nearly 7 per cent, was smaller by about the same percent age than a year earlier. Sales of passenger cars by 13 distributors declined noticeably as compared with the previous month and a year before. Last year at the same time a marked increase oc curred, particularly in the distribution of cars to dealers. Industrial operations show a further seasonal broadening. Preliminary re ports indicate that both factory employ ment and wage payments in October have increased, as is usual at this season. There occurred little change in employ ment between August and September, while employe-hours worked and payrolls declined somewhat, chiefly because of the Labor Day shutdown. Conditions in the iron and steel in dustries continue to be less satisfactory than a year ago, although recently some improvement in demand has been noted. Operations of metal working plants re porting to this bank are running at about 70 per cent of capacity. The daily out put of pig iron in this district increased 6 per cent between August and Septem ber but was nearly 18 per cent under a year before. Production of iron and steel castings decreased in the month, as did shipments. Unfilled orders for iron castings increased, while those for steel castings declined. The daily output of pig iron and steel ingots in the country was less in September than in the preced ing month or in the same month last year. The textile situation is characterized by a more active demand, a larger volume of unfilled orders, a higher rate of pro duction and firm prices. Sales of wool, cotton and silk products have increased somewhat. Conditions in the clothing industry also compare rather well with the activity in the previous month and a year ago. The demand for full-fashioned hosiery is increasingly active, and that for seamless remains fair. Production in creased 3 per cent and unfilled orders 33 per cent from August to September. A fair amount of business also is reported in carpets and rugs, orders for spring de livery having improved since the recent auction sales. The leather market is strong. Demand for goatskins, black and colored kid, and sole leather has increased in the month, and price advances have been numerous. Shoe manufacturers are experiencing a fair volume of business, although their sales are slightly below the total of last month. The shoe output in the district was nearly 7 per cent smaller in Septem ber than in August. Building activity continues well ahead of the rate prevailing at the same time last year. The value of contracts for residential buildings increased 20 per cent, while the total dollar volume declined nearly 5 per cent between August and September. Compared with a year be fore, contracts awarded were over 10 per cent greater. The value of building permits also was about 17 per cent larger than in September, 1926. The demand for building materials continues fairly moderate, and plant operations range from 70 to 80 per cent of capacity. Pro duction of cement especially remains near the record high level established in recent months. Quickened largely by the stormy weather of late, the market for anthra cite has been slightly more active. Pro duction, though turning upward slightly after the decline in September, is still considerably behind that of a year ago. Reflecting industrial betterment, bitumi nous coal also is beginning to move in a somewhat larger volume, and weekly pro duction in the first fortnight of October was the greatest since March. The unusually fine weather prevailing in September stimulated the growth and maturing of late crops, pronounced im provement occurring in corn, potatoes and tobacco. The acreage planted to winter wheat appears to be somewhat larger than last fall. The condition of dairy herds and marketable hogs also com pares favorably with that of last year. Prices of farm products advanced further— 3.6 per cent—from August to September, while the general price level increased only 1.7 per cent. In the latter month agricultural prices were 6.6 per cent above the level of a year earlier, while prices of all commodities were over 3 per cent lower. C O M M O D IT Y P R ICES Following an almost steady decline in the year and a half just preceding last September, 1927, compared with September, 1926 CONDITIONS Philadelphia Federal Reserve District Allentown area.. . Altoona “ ... Harrisburg “ ... Johnstown “ ... Lancaster “ ... Philadelphia “ ... Reading “ ... Scranton “ ... Trenton “ ... Wilkes-Barre “ . . . Williamsport “ . . . Wilmington “ ... York “ ... Em ploy ment Wage payments - 5 .0 % - 0 .4 “ - 0 .6 “ + 3 .5 “ - 6 .0 “ - 7 .9 “ - 8 .9 “ -1 3 .5 “ -2 3 .0 “ - 7 .4 “ - 0 .9 “ -1 6 .7 “ - 1.0 “ - 1 .8 % - 1.7 “ + 5 .6 “ -1 1 .6 “ - 8 .4 “ - 4 .8 “ -1 3 .4 “ - 7 .0 “ -2 6 .3 “ - 7 .9 “ + 1 3 .4 “ -1 1 .3 “ - 2 .2 “ Value of building permits - 3 7 .7 % - 3 3.9 “ 4 .2 “ - 3 5.8 “ + 2 7 7 .3 “ + 2 5.7 “ + 66.1 “ + 6 .2 “ - 37.6 “ - 60.7 “ 0 .3 “ + 9 .6 “ + 2 .4 “ Electric power sales Debits Savings deposits Retail trade sales + 4 .8 % + 1 8 .4 “ -1 3 .7 “ + 3 9 .1 “ + 9 .3 “ + 5 .8 “ - 1 . 9 “ + 8 .7 “ + 5 .3 “ + 9 .3 “ + 8 .2 “ + 2 3 .6 “ - 0 .7 “ + 4 .4 % + 7 .7 “ + 2 1 .0 “ + 4 .9 “ + 1 3 .4 “ + 9 .6 “ + 6. 0 “ + 8 .8 “ - 5 .2 “ + 6 .0 “ + 16.6 “ + 5 .0 “ + 9 .0 “ + 2 .9 % -2 .0 “ -9 .1 “ -9 .8 “ -3 .5 “ -4 .9 “ -4 .9 “ + 1.8 “ -4 .7 “ -6 .0 “ + 2 .8 “ + 3 .2 “ -9 .3 “ + 8 .1 “ + 13.5 “ t ................. § ................. § - 7 .7 “ + 2 3 .4 “ - 7 .9 % -1 9 .7 “ + 8 .1 “ - 7 .0 “ - 3 .8 “ + 2 1 .6 “ -1 0 .7 “ + 9 .6 “ + 5 .0 “ + 8 .1 “ + 1 3 .9 “ + 3 .3 “ - 5 .0 “ - 1 .0 % * + 1 .8 “ + 4 .6 “ - 0 .3 “ t + 4 .3 “ + 6 .2 “ - 3 .4 “ + 4 .6 “ + 16.9 “ t ................. § ................. § - 3 .2 “ -1 1 .4 “ - 3 .9 % * -1 7 .7 “ + 11.3 “ - 2 .0 “ f + 12.3 “ + 7 .5 “ September, 1927, compared with August, 1927 Allentown Harrisburg Johnstown Lancaster Philadelphia Reading Scranton Trenton Wilkes-Barre Williamsport Wilmington Y ork a re a .. . “ “ “ “ “ “ “ “ “ “ “ ... ... ... ... ... ... ... ... ... ... ... - 2 .1 % - + + + + + + 1.3 5.1 2 .2 1.7 0 .4 0 .9 9.1 7 .5 5 .7 0 .3 3 .8 + 4 .6 - 6 .0 - 3 .8 + 3 .7 - 9 .5 + 1.7 -1 0 .0 + 10.9 + 1 1 .7 - 0 .4 + 2 .6 “ “ “ “ “ “ “ “ “ “ “ 4 .9 % “ “ “ “ “ “ “ “ “ “ “ - 3 8 .1 % - 8 0.8 “ - 2 3.9 “ - 22.1“ + 3 1 4 .3 “ + 3 .7 “ + 1 0 0 .7 “ - 6 8.2 “ 2 .9 “ - 80.1 “ + 78.6 “ - 62.4 “ + 77.4 “ * Includes Wilkes-Barre and W illiamsport areas, § Included in Allentown area. PRICES OF C O M M O D IT IE S * June figures, + + + + + + + + 0 .4 % 0 .1 “ 0 .9 “ 2.1 “ 1.4 “ 0 .4 “ 0 .8 “ 2 .4 “ 0 .2 “ 1.8 “ 0 .3 “ 0.1 “ 1 .5 “ f Production (not sales), Latest W holesale All commodities, index number, 1926 = 100. . 96.5 Finished steel, average............. ................. lb. 2 .31$; Pig iron, average......................... $17.84 Pig iron, #2 X Phila................... ................. “ $19.76 Copper, electrolytic................... ................. lb. 13.25$; L ea d .............................................. ................. “ 6.25$! Cotton, N. Y . middling s p o t . . ................. “ 20.00$! Y a r n s ....................................... ndex number 38.41 G o o d s ....................................... “ 14.067 W ool, domestic, ra w .................. ................. lb. 67.13$; .. « Poreign, Australian, 64’s . . . . 99 i Tops, av. Y%blood at Boston ................. “ $1,095 Worsted y a r n s ....................... ndex number 167.900 “ “ Silk, raw (av. of 6 grades)........ 49.23 « G o o d s ....................................... “ 120.28 “ “ R a y on ........................................... 15.00 “ Construction costs (1913 =100) “ 204.40 Lumber, yellow pine................... ........ 1000 ft. $63.00 “ $115.00 Oak, plain w h ite ..................... ........ “ Cement, Phila., carloads............ ...............bbl. $2.21 Bricks, com m on........................... .............1,000 $14.50 Fuels: bituminous coal, Pool 10 Phila. . .ton $1.80 Anthracite, Chestnut, P hila.. ................ “ $8.80 Coke, furnace......................... $2.85 Petroleum, Pa. c r u d e ............ ...............bbl. $2.65 Gasoline, tankwagon, Phila.. ...............gal. 15$; Hides, packer, #1, native......... .................lb. 23.5$! Rubber, 1st latex crepe............ ................. “ 34.75$! Paper, news roll........................... .........100 lbs. $3.25 T obacco, m edium...................... ................. lb. 12 $! Corn, #2 yellow ........................... ...............bu. $1,024 Wheat, #2 re d .............................. ............... “ $1,421 Flour, Minn, patent.................... ...............bbl. $7.80 Food products............................. $3.39 Retail Food, index number, 1913 =100 Cost of living (1913 =100) Philadelphia............................ United States.......................... - 1 .3 % + 1 6 .1 “ - 4 .3 “ + 5 7 .9 “ + 9 .9 “ + 5 .8 “ + 3 .2 “ + 2 2 .3 “ + 6 .2 “ + 1 6 .3 “ + 8 .6 “ + 4 .4 “ - 4 .3 “ M onth ago Year ago 9 5.2 2.35$! $18.00 $20.26 13.20$! 6 .2 5 1 20.70$! 39.53 14.268 66.38$! 99$; $1,075 167.650 50.37 123.01 15.00 203.60 $63.00 $115.00 $2.21 $14.50 $1.80 $8.80 $3.00 $2.65 15$! 22$; 33.62$! $3.25 12 $! $1.14 $1.38 $7.70 $3.31 9 9.7 2.45$! $19.71 $21.76 14.75$! 8.30$! 12.60$! 29.90 12.342 67.71$! 98.5$! $1.11 171.067 58.46 135.11 16.50 209.80 $60.00 $119.00 | Includes Camden area. Source of quotation $15.50 $2.35 $9.07 $3.50 $3.40 19 i 16$! 42.50$! $3.25 15$; 94 $! $1,535 $7.75 $3.45 B. of L. Statistics Iron Age Iron Age Iron Age D un’s Review Dun’s Review Journal of Commerce F airchild’s Fairchild’s D un’s Review Textile W orld Textile W orld Fairchild's Fairchild’s Fairchild’s Fairchild’s Eng. News Record Dun’s Review D un’s Review Dun’s Review D un’s Review Coal Age Coal Age Dun’s Review Oil, Paint & Drug Rep. Oil, Paint & Drug Rep. D un’s Review D un’s Review Dun’s Review Dun’s Review D un’s Review D un’s Review Journal of Commerce Bradstreet’s F ood Index 154.0 152.4 158.5 B. of L. Statistics 178.0* 173.4* 1 82 .3 f 175 .6t 180.6 174.8 B. of L. Statistics B. of L. Statistics t December, 1926, figures. Page Three summer, the general level of wholesale commodity prices has turned upward, the rise in the first three weeks of October being about one-half of one per cent. In the period from May to September the price level, as shown by the index of 550 commodities or price series recently re vised by the Bureau of Labor Statistics, advanced nearly 3 per cent. The greatest increase occurred in quotations for farm products, 10 per cent; hides and leather products, 8.5 per cent; textile products, 4.9 per cent; and foods, 2.2 per cent. Prices of building materials and miscel laneous commodities, on the other hand, declined somewhat. Compared with the level reached in the latter part of 1925, when the decline began, of all commodities were still 7.7 per cent lower, hides and leather alone showing a rise of 9.1 per cent. Retail food prices, after remaining steady for several months past, also ad vanced about 1 per cent from August to September, but were 3.9 per cent under the average level of last year. F IN A N C IA L C O N D IT IO N S Borrowings of member banks from the Federal Reserve Bank of Philadelphia in creased from 35 to 38.6 millions in the four weeks ended October 19, but on that date the total was 9.2 millions smaller than a year earlier. Banks in Phila delphia reduced their indebtedness by 3.9 millions in the year. Reserves of member banks declined in the past four weeks and payments of currency and coin to banks of the dis trict exceeded receipts from them by 2.4 millions. In the transit clearings with other districts a loss of 7.7 millions was sustained, though this is partly to be ex plained by purchases of bills and securi ties on the part of this bank. Nearly 15 millions of dollars were withdrawn by the Government from funds at depositary banks, but only 3.2 millions were lost to the district through Government transfers. Losses to other districts through the gold settlement fund account mainly for a reduction in the reserves of this bank from 219.8 to 207.2 millions in the four weeks. The reserve ratio fell from 80.5 Loans and discounts (Figures in thousands of dollars) Secured by stocks and bonds Changes in four weeks ended Oct. 12: Philadelphia (35 banks).......................... Outside Philadelphia (90 banks)........... - All other Deposits Invest ments Total 1,557 -1 1 ,3 8 5 857* - 1,477 + 2 5 ,45 6 + 6,986 -1 0 ,7 5 3 - 3,157 + 5,423 + 2,799 All reporting banks (1 25 )................... —ll ,2 5 2 f - 700 f -1 2 ,8 6 2 + 3 2 ,4 4 2 - 1 3 ,9 1 0 + 8,222 Changes in year ended Oct. 12: Philadelphia (35 b an ks).......................... - 1 3 ,3 1 6 -1 0 ,0 0 1 -2 3 ,3 1 7 Outside Philadelphia (90 b an ks)........... + 9,244J + 2.393J + 1 4 ,92 9 + 5 1 ,8 6 5 + 1 1 ,8 1 9 + 327 - 3,466 + 1 2 ,0 4 7 + 2 2 ,8 5 0 + 6 3 ,68 4 - + 3 4 ,8 9 7 All reporting banks (125)................... *72 banks. t!0 7 banks. +60 banks. - 4,072§ - 7,608§ - 8,388 3,139 §95 banks. to 76.6 per cent, but compares favorably with a ratio of 71.8 per cent on October 20, 1926, when reserves were 29.1 millions lower. Member banks. The reports of 125 member banks in 21 of the largest cities of the district show that on October 12 their total loans and discounts were 12.9 millions smaller than they were on September 14, chiefly as the result of a decline of nearly 10 millions in the loans of 35 Philadelphia banks secured by stocks and bonds. Investments, reflecting principally new issues of Government securities which appeared on September 15, increased 32.4 millions, this increase being accompanied by an expansion in Government deposits. Net demand de posits declined 10.8 millions at 35 Phila delphia banks and 3.2 millions at 90 banks in other cities, whereas in time deposits increases of 5.4 and 2.8 millions, respec tively, took place. In comparison with a year ago, the loan figures continue to show the diver gence in trend between Philadelphia banks and those outside. The Philadelphia banks report a decline from 708.6 to 685.3 millions, or 23.3 millions, in this item, loans on securities and other loans both sharing in the decrease. Outside of Philadelphia the figures for most cities show increases, the total loans of 90 banks expanding 14.9 millions, but 9 banks in Atlantic City report a decline of 4.2 mil lions, or 12 per cent. Investments of all reporting banks, 125 in number, increased 63.7 millions in the year, net demand de posits declined slightly, and time deposits are 34.9 millions larger. Figures submitted by 48 member banks in Philadelphia, Camden, Scranton and Wilmington show that in the latest week, that of October 19, loans on securities declined 2.5 millions, other loans increased slightly, investments decreased nearly 5 millions, and the total of net demand and time deposits fell 5.3 millions. Bankers’ acceptances. Four dealers in bankers’ acceptances report average weekly sales of $2,177,000 in the period ended October 12. This compares with $934,000 in the preceding period, and $2,504,000 a year ago. An increase in the Time 9,828 1,421* + offering rate on prime 90-day bills from 3% to 3% per cent took place in the past month. A summary of the figures re ported by dealers follow : Purchases Weekly average period ending 1927— Oct. 12......................... Sept. 14......................... Aug. 17......................... 1926— Oct. 2 0 ......................... Sales $418,000 496,000 227,000 $2,177,000 934,000 618,000 211,000 2 ,5 0 4,00 0 Nine Philadelphia banks report that they executed $4,581,000 of acceptances in the month ended October 10, as against $4,825,000 in the previous month, and $3,458,000 a year ago. The total for the first ten months was $42,628,000 in 1927 and $34,045,000 in 1926. Commercial paper. From $8,268,500 in August, sales of five commercial paper dealers operating in this district rose to $10,582,700 in September, owing to an increase of more than 4 millions in sales to city institutions, purchases by outside banks having declined. During the past three months sales have been nearly double those in the same months of 1926. Com parative figures are given on the next page. Of the sales of three dealers in Septem ber, 20 per cent were made at 3Y\ per cent, 47 per cent at 4 per cent, and 33 per cent at higher rates, chiefly 4J4 Per cent. In August these percentages were 6, 58 and 36, respectively. NEW SECURITY ISSUES ( r e fu n d in g i s s u e s o m i t t e d ) 927 \ / \\ / / IS \\ /ss5 1926 Page Four Net demand '} / 'K 7 a \ L JAN FEB MAR APR MAY JUN JULY AU6 SEP OCT Source: Commercial and Financial Chronicle. NOV DEC Sales to city banks Sales to country banks Total sales 1927 A u g............ $ 5,970,200 $ 4,612,500 $10,582,700 1,900,000 8,268,500 6.368.500 3,099,500 7.317.500 10,417,000 Total, 3]mos. $10,969,700 $18,298,500 $29,268,200 1926 Sept........... $ 3,472,500 $ 2,104,900 $ 5,577,400 4,085,000 A u g............ 1,125,000 2,960,000 5,793,400 2,232,500 3,560,900 Total,’3mos. $ 6,830,000 $ 8,625,800 $15,455,800 Debits to individual account. Debits to individual account, as reported by banks in 17 cities of the third Federal reserve district, in the first three weeks of October showed an increase over the corresponding weeks of September, as is usual, and surpassed the figures of a year before by 1.3 per cent. Philadelphia banks report only a .7 per cent gain in the year. The three anthracite cities— Hazelton, Scranton and Wilkes-Barre— report a smaller volume than a year ago, but the total for 13 other cities increased from 355 to 373 millions, or 5.1 per cent. D IS T R IB U T IO N Railroad shipments of merchandise and miscellaneous commodities in the Alle gheny district have increased in the latest four weeks about 4 per cent but were 1.5 per cent under the volume of a year before. Total shipments also were larger than a month earlier but nearly 7.6 per cent smaller than at the same time last year. Retail trade. Preliminary reports for the early part of October indicate that the seasonal improvement in retail sales continues at a somewhat slower pace than that prevailing at the same time last year. The recent rainy weather lasting several days is given by some retailers as a re tarding factor in the retail trade. Prices remain steady, although some advances are noted. While September sales showed a marked gain over August, the total was 4.7 per cent under the volume of a year before. Sales in all retail lines, except shoes and women’s apparel stores outside of Philadelphia, failed to measure up to those of September, 1926. Inventories, which increased seasonally between August and September, were 2.3 per cent less than on the same date last year. Accounts receivable were 4.7 per cent greater and collections 3.2 per cent larger than a year earlier. Wholesale trade. This trade con tinues seasonally active. Early reports indicate that sales increased appreciably in all lines during the first part of October. Prices remain steady, although dry goods and groceries show advances. September, 1927, change from AUTOMOBILE TRADE Philadelphia Federal Reserve District 13 distributors Sept , 1927 with Sept., 1926 - Department stores...................... - 4 .3 - 4 .5 - 3 .7 - 5 .4 - 9 .3 -1 2 .7 - 4 .9 - 3 .8 - 6 .3 + 1 3 .6 + 2 .9 -1 8 .2 W om en’s apparel stores........ Credit stores................................ 4 .7 % “ “ “ “ “ “ “ “ “ “ “ “ Number Value Sales, new cars, wholesale........................................ Cars under $1,000.................................................. Cars $1,000 to $2,000........................................... Cars over $2,000.................................................... 9 .2 % 7 .1 “ — 14.7 “ 2 .8 “ + - 11 9% — 5 3 “ - 22 3 “ 2 5 “ -2 5 .8 % -2 6 .1 “ -2 7 .9 “ - 4 .2 “ -2 3 .6 % -2 5 .9 “ -2 9 .4 “ - 8 .8 “ Sa’ es, new cars, at retail........................................... Cars under $1,000.................................................. Cars $1,000 to $2,000........................................... Cars over $2,000.................................................... _ 2 .7 — 1 .6 — 2 9 .0 1 .4 - “ “ “ “ - “ “ “ “ -3 2 .4 -3 4 .6 -3 1 .2 + 1 4 .7 “ “ “ “ -3 7 .8 -4 7 .1 -2 4 .2 + 2 4 .2 “ “ “ “ Stocks of new cars..................................................... Cars under $1,000.................................................. Cars $1,000 to $2,000............................................ Cars over $2,000.................................................... + 8 3.4 + 1 0 9 .8 + 8 5.8 5 .2 “ “ “ “ + 35 2 “ +109 0 “ + 42 9 “ - 20 3 “ + 4 .1 - 5.1 + 3 1 .0 + 3 3 .2 “ “ “ “ + 6 .7 - 9 .3 + 14.2 + 3 3 .3 “ “ “ “ — 3 1 22 2 4 7 7 5 Sales of used cars....................................................... + 6 5.7 “ + 47 9 “ -2 8 .5 “ -2 2 .6 “ Stocks of used cars..................................................... + 4 9 .8 “ + 35 6“ + 6 .4 “ + 6 .6 “ Retail sales, deferred paym ent................................ - 19 8 “ -1 9 .4 “ - Net sales Sept., 1927, compared with W HOLESALE TRADE Philadelphia Federal Reserve District Sept., 1926 Boots and shoes................... - 1 7 . 1 % Drugs..................................... - 1 . 9 “ - 8 .4 “ Electrical supplies............... + 2 5 .4 “ Groceries............................... - 1 1 . 8 “ Hardware.............................. - 4 .5 “ Jewelry.................................. - 1 0 . 4 “ Paper...................................... - 1 0 . 8 “ Aug., 1927 + 4 .1 % + 2. 0 “ + 2 3 .9 “ + 4 5 .4 “ + 2 .4 “ + 6 .9 “ + 5 .7 “ - 4 .7 “ -2 .9 % - - 3 .4 “ - 3 .5 - 4 .0 - 2 .4 + 6 .3 + 9 .5 - 1 1 .3 + 3 7 .3 + 3 .2 + 0 .3 + 14.0 “ “ “ “ “ “ “ “ “ “ 2 .3 % “ “ “ “ “ “ “ “ “ “ + 0 .6 “ 1926 - 11.5 “ Sept., 1926 Aug., 1927 + 6 .5 % - 6 .4 “ - 4 .9 “ - 7 .1 “ -1 2 .5 “ - 6 .7 “ - 2 .8 “ - 1 .9 “ + 1 2 .4 % - 2 .0 “ + 4 .3 “ - 3 .9 “ - 4 .6 “ - 1 .4 “ + 1 3 .5 “ + 7.6“ Sept. 30, Aug. 31, Sept. 30, Aug. 31, 1927 1927 1926 1926 -2 0 .4 % + 2 5 .8 “ -1 9 .7 “ -2 0 .7 “ - 4 .1 “ + 0 .7 “ - 5 .3 “ + 5 .9 “ + + + + + 1927 8 .5 % 3 .5 “ 2 .6 “ 3 .3 “ 2 .9 “ 0 .5 “ 2 .5 “ 0 .2 “ + - 2 .3 % 2 .8 “ 3 .0 “ 4 .6 “ 0.7“ 3 .4 “ 7 .5 “ 8 .0 “ + 1 0 .2 % + 4 .4 “ + 1 3 .5 “ + 2 7 .0 “ + 5. 0 “ + 5 .5 “ + 1 0 .6 “ + 2 .3 “ 9 .3 “ Collections Sept. 30, 1927, compared with Accounts outstanding Sept. 30, 1927, compared with Stocks Sept. 30, 1927, compared with Comparison of stocks Jan. 1 to Sept. 30, 1927 Sept. 30, 1 27 with with with Jan. 1 to Sept. 30, 1926 Sept. 30, 1926 Aug. 31, 1927 - 0 .7 + 2 .0 -4 .5 - 4 .9 -4 .1 + 5 .9 + 5 .5 + 8 .2 + 2 .3 -6 .8 August, 1927 Value Rate of turnover Jan. 1 to Sept. 30 All reporting stores..................... Apparel stores............................. September, 1926 Number Comparison of net sales RETAIL TRADE Philadelphia Federal Reserve District Source: Bureau of Labor Statistics. Outstanding orders at end of month compared with year ago Accounts receivable at end of month compared with year ago Collections during month compared with year ago + 1 0.3 % 2 .38 2 .32 -1 8 .5 % + 4 .7 % + 3 .2 % + 9 .5 + 9 .6 + 9 .2 + 19.6 + 16.2 + 8 .4 + 2 3 .8 + 2 3 .4 + 2 0 .1 + 3 6 .0 + 17.3 + 6 .1 2.36 2 .50 2.03 2.98 1.92 1.99 1.81 4 .36 4.66 3 .3 5 2 .08 2.08 2.31 2 .44 2 .02 2 .95 1.86 2 .0 2 1.63 4 .2 3 4.51 3.27 2.01 1.78 —17.5 “ + 2 .3 + 1 5 .7 - 1 .0 + 1 8 .2 + 7 .4 “ “ “ “ “ + 1 .6 + 2 2 .0 - 2 .5 + 1 3 .7 + 1 2 .5 “ “ “ “ “ + 1 9 .4 + 2 1 .6 + 12.6 + 8 .6 + 3 .8 “ “ “ “ “ + 1 3 .9 + 1 4 .0 + 13.3 + 4 .5 + 1.0 “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ -2 1 .0 “ - 2 1 .6 “ Page Five The total dollar sales increased nearly 7 per cent between August and September, but were lower than a year before by almost the same percentage. Electrical supplies alone exceeded the sales of a year earlier. Stocks showed seasonal in creases in most lines, but compared with a year ago, five out of eight lines had smaller inventories at the end of Sep tember. Accounts outstanding increased in the month but were smaller than at the same time last year. Collections, too, were less than in September, 1926. Automobiles. Sales of passenger cars by wholesale dealers and retailers in September decreased noticeably as com pared with the volume of a month and a year before. Deferred payment sales also declined. The volume of used cars, though less than in August, surpassed total sales in September, 1926. Stocks of new and used cars generally were greater than those on the same date of the previous month and of last year. IN D U S T R IA L C O N D IT IO N S Industrial operations continue to show some signs of seasonal betterment, al though the rate of expansion is slower than at the same time last year. Factory employment changed little between August and September, while employe-hours worked in Pennsylvania and total pay rolls each declined more than 2 per cent, owing partly to the suspension of activity on account of a holiday. Consumption of electric power by in dustries increased slightly in September, ELECTRIC POWER Philadelphia Federal Reserve District 13 systems Rated generator ca p a city ......... Generated output....................... H ydro-electric......................... Steam ........................................ Purchased................................. Sales of electricity....................... Lighting.................................... M unicipal............................. Residential and commercial P ow er........................................ M unicipal............................. Street cars and railroads . . Industries............................. All other sales.......................... September, 1927, change from Sept., 1926 Aug., 1927 + 2 .2 % + 1.9 “ -3 0 .0 “ - 6 .9 “ + 6 1 .4 “ + 4 .2 “ + 15.2 “ + 5.5“ + 16.8 “ + 0 .9 “ + 3 .3 “ + 2.1 “ + 0 .6 “ + 8 .3 “ + 2 .5 % - 1 .3 * -1 1 .3 “ - 3 .8 “ + 1 1 .6 “ + 2 .6 “ + 1 8 .4 “ + 12.3 “ + 1 9 .4 “ - 0.1 “ + 3 .9 “ - 1.2 “ + 0.1 “ - 3 .2 “ Source: Department of Commerce and Journal of Com merce. Page Six but was only 0.6 per cent greater than a year earlier. Total sales of electricity for lighting and power purposes also in creased in the month. The generated output was slightly below the August total but exceeded that of a year before by almost 2 per cent. Iron and steel. Some improvement has occurred in the market for iron and steel products since last month, although sales are still unsatisfactory. Construc tion companies, manufacturers of metal containers, general machinery and agricul tural equipment, and other diversified lines are purchasing rather actively, but the oil and automobile industries and the railroads have bought less thus far this year than last. Prices of finished ma terials show some weakness, reflecting partly a slight decline in steel prices. The average quotations for pig iron, how ever, have turned a trifle upward, after reaching in September the lowest level since the early part of 1922. Operations in this district at present approximate 70 per cent of capacity on the average, increases in production being offset by decreases. Stocks of finished goods and raw materials are moderate. The daily output of pig iron in this dis trict increased about 6 per cent between August and September, but was nearly 18 per cent under that of a year before. In the country, daily production of both pig iron and steel ingots was appreciably lower than a month and a year earlier. Unfilled orders of the United States Steel Corporation at the end of September were 1.5 per cent smaller than a month before and 21 per cent smaller than at the same time last year. Production of iron and steel castings declined 5.7 and 22.1 per cent, respec tively, from August to September and was noticeably lower than a year before. Shipments also were smaller than in September, 1926. Unfilled orders for iron castings increased materially but those for steel castings decreased. Textiles. More active demand, a larger volume of unfilled orders and a higher rate of production have, generally speaking, characterized the textile situa tion in this district since the latter part of last month. Prices of wool and its products have risen steadily, while those of cotton yarns and piece goods have declined somewhat in the last fortnight in sympathy with the trend in the raw cotton market. Quotations for raw silk and silk fabrics also have fallen further from the level prevailing four weeks ago, whereas rayon prices remain unchanged. The output of wool and cotton manu factures has increased since the middle of last month, plant operations ranging from 75 to 85 per cent of capacity. Un filled orders are sufficient to assure pro duction at this rate for about two months. Consumption of raw wool in this district was 0.7 per cent greater in September than in August, and in the country, was 3.1 per cent larger. Mill takings of raw cotton in the country during September were slightly smaller than a month before but were over 9 per cent greater than a year earlier. Local silk mills are running close to 80 per cent of capacity, owing partly to preparation for spring business and partly to the current demand which is fair. Un filled orders are smaller than a year ago. Deliveries of raw silk to American mills, however, reached in September the great est monthly volume for all time. Conditions in the clothing industry com pare rather favorably with those of a year ago, demand and prices being fairly steady. Advance business is large enough to warrant production at the present rate of about 75 per cent of capacity for nearly forty-five days. Carpet and rug manufacturers report a fair amount of business. The Smith auction has been followed by activity in orders for the spring of 1928, though business in Wiltons is slow, awaiting the December first opening. N o important price changes are reported. A fairly good volume of business is enjoyed by manufacturers of linoleums and felt base goods. There is a good and increasing demand for women’s full-fashioned hosiery, and a fair demand, with slight increases, for men’s and women’s seamless. Some price decreases are reported in women’s fullfashioned silk lines. Moderate stocks of finished goods are about the same as those of a month ago. Production in this district increased 3 per cent from August to September. Orders booked in the month increased 33 per cent over those Source: Silk Association of America and Journal o f Commerce. LEATHER and SHOES Num ber of wage earners— week ended EMPLOYMENT AND WAGES in Pennsylvania placed in August, although there was a falling off in orders placed for men’s hosiery. Leather. The packer hide market is firm and high, heavy native steers gaining V/2 cents in the month. Goatskins are active with prices firm and some advances reported. Both black and colored kid are in good and increased demand. Price increases in both varieties are reported. Stocks of finished goods have decreased in the month. Good demand for sole leather continues and prices have ad vanced. A fair demand for leather belting is reported, with sales somewhat smaller than a month ago. Increase in prices is noted. Demand for shoes is fair, with sales slightly smaller than a month ago. Stocks of finished goods are smaller than those of a month and a year ago. Unfilled orders assure operation, on the average, for nearly a month. Most firms report advance in prices. Building. Construction activity in this district compares more than favorably with the rate prevailing at the same time last year. The value of contract awards for residential buildings increased 20 per cent between August and September but the total volume declined over 4 per cent in the month. Total construction during the first nine months of this year was about 14 per cent ahead of the volume for the same period last year, the gain in residential contracts being almost 6 per cent. The proposed expenditure under permits issued in 15 cities of the district was 10.6 per cent less than in August but 16.7 per cent greater than a year earlier. In the period from January to September, however, the value of per mits decreased 15 per cent from that for the same period of 1926. The market for building materials con tinues active in response to a steady de mand from construction companies. Prices show a further slight decline. Un filled orders generally are sufficient to assure plant operations at the present rate of 70 to 80 per cent of capacity for nearly two months. Production of cement, though it declined about 4 per cent in September, continued near the record high level established in recent months. Stocks of building materials in the main are moderate. No. of plants report ing Sept. 15, 1927 Per cent change from month ago Total weekly wages— week ended Sept. 15, 1927 Per cent change from month ago Average weekly earnings— week ended Sept. 15, 1927 Per cent change from month ago All industries (47)............................... 832 280,127 - 0.1 $7,011,196 2.2 $25.03 Metal manufactures: Automobiles, bodies, and parts... Car construction and repair......... Elec, machinery and apparatus. . Engines, machines, mach. to o ls. . Foundries and machine sh o p s.. . . Heating appl. and apparatus . . . . Iron and steel blast furnaces........ Iron and steel forgings................... Steel works and rolling mills........ Structural iron works..................... Misc. iron and steel products. . . . Shipbuilding..................................... Hardware.......................................... Non-ferrous m etals......................... 277 19 18 18 38 52 15 11 10 34 17 25 3 8 9 137,766 10,082 18,298 9,056 9,787 8,203 3,866 10,950 2,783 35,524 4,699 18,673 3,367 1,666 812 - 0 .5 + 6.2 - 3 .2 + 3 .9 - 3.1 - 1.2 + 3 .0 - 1.8 - 1.0 + 0 .8 - 0.1 - 0 .4 - 1 6 .8 - 1.1 + 2 .7 3,617,812 286,486 481,091 220,205 259,852 217,481 110,196 283,248 57,259 938,134 117,225 491,927 95,040 39,327 20,341 - 5.1 + 2.2 - 5.1 + 0.1 - 1 0 .4 - 7.3 + 0.3 - 6.5 - 1 6 .8 - 3.1 - 1 4 .6 - 6 .7 - 1 0 .8 - 1.1 + 0 .5 26.26 28.42 26.29 24.32 26.55 26.51 28.50 25.87 20.57 26.41 24.95 26.34 28.23 23.61 25.05 - 4 .6 - 3 .8 - 2 .0 - 3 .6 - 7 .5 - 6.2 - 2 .6 - 4 .8 - 1 6 .0 - 3 .9 - 1 4 .4 - 6.3 + 7.3 + 0.1 - 2.1 Textile products: Carpets and rugs............................. Clothing............................................ Hats, felt and other....................... Cotton goods.................................... Silk goods.......................................... Woolens and worsteds................... K nit goods and hosiery................. Dyeing and finishing textiles. . . . 165 8 32 6 16 41 14 37 11 54,916 2,550 4,755 4,344 4,515 16,550 6,441 13,386 2,375 + + + + + + - 0 .6 0 .6 1.6 1.5 1.0 0 .4 4 .2 0 .9 2 .5 1,196,818 59,010 89,732 114,511 104,625 304,216 143,342 327,841 53,541 + + + + - 0 .7 6 .2 1.7 1.0 7 .5 3 .0 4 .8 5.2 9.3 21.79 23.14 18.87 26.36 23.17 18.38 22.25 24.49 22.54 + + + + + - Foods and tobacco: Bakeries............................................ Confectionery and ice cream ........ Slaughtering and meat packing. . Cigars and toba cco......................... 105 31 23 14 37 23,995 4,472 5,823 2,105 11,595 + 16 - 2 .4 + 5.2 + 1.8 + 1.4 487,568 128,937 129,860 60,560 168,211 + + + - 0.1 2.1 6 .7 1.2 3 .3 20.32 28.83 22.30 28.77 14.51 - 1.5 + 0.3 + 1.4 - 0 .5 - 4 .5 Building materials: Brick, tile, and terra cotta products Cem ent.............................................. Glass.................................................. P ottery.............................................. 66 26 14 23 3 20,043 4,171 7,419 7,520 933 + + + 1.8 0 .8 2 .0 7 .9 0 .2 557,658 99,614 234,173 201,773 22,098 + 1.5 - 3 .4 - 1.9 + 8.5 + 2 .9 27.82 23.88 31.56 26.83 23.68 + + + 0.3 2 .6 0.1 0 .5 2 .6 Construction and contracting: Buildings........................................... Street and highw ay........................ General.............................................. 35 19 4 12 6,815 1,542 2,437 2,836 + 4 .7 - 0 .5 + 1 8 .2 - 2 .2 200,390 52,140 75,039 73,211 + 8 .4 + 2 .0 + 2 6 .4 - 1.6 29.40 33.81 30.79 25.81 + + + + 3 .5 2 .5 6 .9 0 .5 Chemicals and allied products: Chemicals and drugs...................... Explosives......................................... Paints and varnishes...................... Petroleum refining.......................... C ok e................................................... 33 13 3 9 5 3 10,384 1,158 534 1,109 5,220 2,363 - 9 .8 + 3 .0 - 1.8 - 0.3 - 1 8 .2 + 0.3 298,550 30,658 13,333 26,964 157,937 69,658 + + + 1.6 1.6 5.3 7.9 2.7 1.1 28.75 26.47 24.97 24.31 30.26 29.48 + + + + 9.1 1.5 7.3 7 .7 19.0 0 .8 Miscellaneous industries: Lumber and planing mill products Furniture.......................................... Leather tanning.............................. Leather products............................. Boots and shoes.............................. Paper and pulp products.............. Printing and publishing................. Rubber tires and good s................. Novelties and jew elry.................... 151 25 18 17 8 22 19 36 3 3 26,208 3,260 2,109 5,870 595 4,187 4,164 3,748 819 1,456 + + + + + + - 652,400 67,650 53,187 150,288 11,881 78,670 107,944 127,432 23,668 31,680 + + + + + + + - 1.3 0 .6 5.5 4 .9 3 .8 4 .7 0 .5 2 .2 5 .8 1.1 24.89 20.75 25.22 25.60 19.97 18.79 25.92 34.00 28.90 21.76 + + + + + + 0.1 0 .6 1.6 2 .0 1.2 4.1 0 .7 0.1 3 .7 0 .5 Flour. The market for flour, mid dlings, bran and other by-products, is only moderately active and sales do not equal those of a year ago. Export de mand is not as brisk as that at the same time last year. Prices continue firm. Flour mills are running at about 65 per cent of capacity, showing little change since last month. Mill stocks of flour are somewhat heavier than a year ago, while supplies of grains remain practically un changed. Stocks of flour and wheat held by Philadelphia warehouses have declined recently. Paper. Sales of paper have increased appreciably during the month, although the total is still slightly under that of a year ago. Prices continue fairly steady. Unfilled orders, though smaller than a 1.2 1.2 3 .8 2 .8 2 .6 0 .6 0.2 2.3 2.3 1.6 - - 2.2 0.1 6 .8 0 .2 0 .5 6 .4 3 .4 0 .5 4 .2 6 .9 year ago, are sufficient to assure produc tion at the prevailing rate of about 85 per cent of capacity for over one month. Cigars. The cigar market is season ally strong with firm prices. Plant oper ations have increased, the present rate being over 80 per cent of capacity. Un filled orders are larger than at the same time last year. Stocks, which are moderate, are a trifle heavier than a year ago. Coal. The anthracite market has been somewhat retarded by the mild weather that has prevailed during September and the first part of October, although stormy weather recently has stimulated domestic demand somewhat. Current demand for domestic sizes is only fair, while that for Page Seven steam sizes is slightly more active than four weeks ago. Prices generally con tinue unchanged and are somewhat lower than at the same time last year. Colliery operations average about 90 per cent of capacity. The output in the four weeks ended October 15 was almost 25 per cent below a year ago. Conditions in the bituminous field, though still unsatisfactory, have improved slightly in recent weeks. Demand, how ever, remains only fair, industries and public utilities being the most active buyers. Prices have declined slightly since the latter part of September and are somewhat under the average at the same time last year. Production in the four weeks ended October 15 increased 6.9 per cent as compared with that of the previous four weeks. Prices of farm products in the country at large have increased 3.6 per cent from August to September. 1 he rise in prices of farm commodities has been steady since last April, total gains amounting to 12.3 per cent, while prices of all com modities advanced at the same time only 1.7 per cent. Agriculture. Favored by exception ally good weather during September, late crops, particularly potatoes, corn and tobacco, have improved considerably. Field plowing is up to normal. Planting of winter wheat and rye is practically completed, and the acreage appears to be slightly greater than that of last fall. The supply of farm labor is sufficient. The condition of dairy herds measures up to the normal for October. The new hogs for market also are in good condition, but the slaughter of hogs and the sales for slaughter do not compare favorably with those of the month before or of October, 1926. Philadelphia Federal Reserve District (Figures in thousands of units) Yield 1926 Estimate Oct. 1, 1927 C orn ............................... bus. W h ea t............................ “ Oats................................ “ P otatoes........................ “ T o b a cco ......................... lb. 51,468 21,450 22,319 21,507 43,560 42,478 17,646 24,397 23,661 42,343 BUSINESS CONDITIONS IN THE PHILADELPHIA FEDERAL RESERVE DISTRICT Prices U n fille d o r d e r s c o m p a r e d w it h y e a r a g o D em and O p e r a t io n s S tock s TRADE Retail trade..................... Wholesale trade............. Drugs .......................... Dry goods................... Some advances Only fair Unchanged Higher A ctiv e; increased F a ir; increased Electrical supplies.. Little change A ctiv e; increased Spot delivery Groceries More advances than de clines Unchanged Unchanged Unchanged M ostly unchanged Slightly lower Little change Fairly active; increased Spot delivery F a ir; little change Fairly active; increased Fair; increased Only fair Fair Slow Spot delivery Spot delivery Spot delivery Spot delivery Smaller ................... Hardware ................... Jewelry ........................ Paper ............................ Shoes ............................ Lumber dealers......... Automobiles ............. Smaller Spot delivery Spot delivery Increased Increased slightly but lower than year ago Increased slightly but lower than year ago Increased slightly but lower than year ago Little change Smaller Slightly larger Decreased Smaller Increased IN D U S T R IE S Iron and steel products ................. Cotton .............................. Silk .................................. W ool ................................ Carpets and rugs......... Shoes .............................. Leather belting............. Leather— K i d ................................ Cigars and tob a c c o ... Electrical su p p lie s .... Some weakness in steel Only fair and its products; pig iron, firm Easier along with raw Fairly good cotton Lower Only fair Higher Active Page Eight Moderate to light Little change Little change in fabrics; spinning, increased Full - fashioned, un changed; seamless, in creased Unchanged Little change Decreased Increased Medium a Little change Smaller a Unchanged Little change Smaller Greater Larger than a month ago Unchanged Higher Higher Fair F a ir; decreased Fair Smaller Slightly larger Slightly smaller Higher Good Higher Good Little change Fair; increased Little change from month ago Little change from month ago Slightly smaller Little change Slightly lower Slightly lower Slightly lower Little change Good F ar Fair Fairly good Active; practically changed Fair Construction slightly coal........... Increased G ood in full-fashioned; fair in seamless Steady Bituminous Moderate A few decreases Little change Anthracite ...................... Generally unchanged; decreases offset increases Increased for iron cast ings but declined for steel castings Greater Increased slightly Smaller Little change Little change Gains equal losses Increased Unchanged Unchanged Unchanged Little change Decreases offset increases Slightly lower Medium Little change M oderate; heavier than year ago Permits increased in September lair September total contracts declined, but residential increased materially Little change Fair Increased slightly Only fair costs rose Unchanged for domestic sizes; some weakness in steam sizes Declined slightly Fairly active slightly Moderate Smaller Little change Decreased, but heavier than year ago Moderate Medium to light Moderate Moderate M oderate; decreased un Increased Moderate and slightly smaller M oderate; a bit heavier than year ago Little change
@FedFRASER