The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THE BUSINESS REVIEW TH IRD FED ERA L PH ILA D ELPH IA RESERV E D ISTRICT OCTOBER I, 1923 By RICH A RD L. AUSTIN , Chairman and Federal Reserve Agent FEDERAL RESERVE BA NK of PHILADELPHIA SU M M A RY OF B U SIN E SS CONDITIONS IN THE UNITED ST A T E S The volume of merchandise distributed during Au gust, as indicated by railway traffic and wholesale and retail trade, was large. Production of certain basic commodities and industrial employment showed further slight decreases. The Federal Reserve Board's index of production in basic industries declined two per cent during August, and was at the lowest point for this P roduction year. The August output, however, was 27 per cent larger than a year ago and production in every month this year has been at a higher level than in any month of the previous five years. Lower production index in August reflected reduced output, after a correction for the usual seasonal trend, of pig iron, woolen goods, flour and cement. Cotton consumption, sugar meltings, lumber cut, and bituminous coal production increased. The number and value of new building projects, as measured by permits granted in 168 leading cities, increased during August, but actual contract awards were smaller than in July. Employment at industrial establishments throughout the United States was slightly smaller in August, while average weekly earnings advanced about one per cent. Increases in wages amounting to ten per cent were granted to anthracite coal miners, and readjustment of wages and hours in the steel industry continued, but wage advances during August were fewer than in any month since last winter. The principal changes in crop estimates shown by the September 1 forecast of the Department of Agriculture were a large reduction in the expected cotton crop, slight decreases in the probable yield of wheat, barley, and oats, and increases of yields of corn, tobacco, and potatoes. Railroad freight shipments were larger in August than in any previous month on record. This was due to a seasonal increase in shipments of coal, Trade miscellaneous merchandise, and agricultural products. Wholesale trade, according to the index of the Federal Reserve Board, increased 12 per cent in August, which is more than the usual seasonal increase, and sales were the largest of any month in three years. Sales of clothing, drygoods, and shoes showed substantial gains as compared with July and were larger than a year ago. Retail trade also increased in August and sales in all reporting lines were larger PRICES INDEX NUMBERS OF WHOLESALE PRICES T 2 he B u s i n e s s R O ctober e v i e w BANK CREDIT 1919 1920 1921 1922 1923 ________________ _______________________! than in August, 1922. Department store sales in all sections of the country averaged 12 per cent above last year's level. The general level of wholesale prices, according to the index of the Bureau of Labor Statistics, remained relatively constant in August, the change Prices for the month being a reduction of less than one-fifth of one per cent, compared with declines of about two per cent in each of the three preceding months. Prices of building materials, house furnishings, and fuel were materially reduced, while prices of farm products and foods increased. Prices of certain raw materials, particularly cotton and silk, advanced substantially during September, while prices of petroleum and copper declined. After a decline during July and the first part of August the volume of bank credit in use showed a seasonal increase during the last week of ^ crcrfjf August and the first two weeks of Sep tember. Total loans and demand deposits of member banks in principal cities increased during re cent weeks, reversing the trend of the preceding two months. Loans chiefly for commercial and agricultural purposes increased by $122,000,000 and reached a high point for the \ear- Investment holdings of these banks, on the contrary, continued to decline, and on September 12 were lower than at any time since the middle of October of last year. Between August 22 and September 19 the amount of accommodation extended to member banks by Federal reserve banks in industrial districts declined, while in agricultural districts the seasonal demand for credit and currency resulted in a considerable growth of Reserve Bank credit in use. The demand for currency arising out of crop moving and fall trade has been reflected in an increase of $82,000,000 in money in circulation between August 1 and September 1. Of this amount about $44,000,000 represents an increase in Federal reserve note circu lation. Money rates were firmer during the first two weeks of September, but eased somewhat after the fifteenth, partly because Government disbursements were tem porarily in excess of tax collections. The Treasury issued on September 15, $200,000,000 of six months certificates bearing 4% per cent interest, compared with 4 per cent borne by six months cer tificates issued in June. TABLE OF CONTENTS Agriculture ..................................................... Bankers’ acceptances ................................. Building ........................................................... Bricks ............................................................... Cigars ........................................... Coal .................................................................. Coal, anthracite ............................................ Coal, bituminous .......................................... Coke ................................................................. Commercial paper ........................................ Confectionery ................................................ Cotton g o o d s.................................................. Cotton, r a w .................................................... District su m m ary .......................................... Drugs, wholesale .......................................... Drygoods, wholesale ................................... Employment and wages............................... Financial conditions ................................... PAGE 29 9 IS IS 29 18 18 19 19 10 IS 21 20 3 12 12 5 9 Floor coverings ............................................ Foreign exchange ....................................... Gas and electric fixtures............................. Glass ................................................................. Groceries, wholesale ................................... Hardware, wholesale ................................. Hides and skins............................................ Hosiery ......... Iron ...............................'.................................. Leather ............................................................. L u m b e r............................................................. National su m m ary ....................................... Oils ................................................................... P a i n t ................... Paper ............................................................... Printing and publishing............................ Real estate .................................................... Retail tr a d e .................................................... PAGE 26 9 17 17 13 12 26 24 18 26 15 1 20 17 28 28 17 10 Savings deposits .......................................... Securities ........................................................ Shoes ............................................................... Shoes, wholesale ......................................... Silk goods ....................................................... Silk, raw ........................................................ Silk, thrown ...................................: ............. Steel ................................................................. Sugar, raw .................................................... Sugar, re fin e d ............................................... Summary, district ....................................... Summary, national ..................................... Synopsis of business conditions............. Underwear .................................................... Wholesale trade ........................................... Woolen and worsted goods...................... Woolen and worsted yarns...................... Wool, raw ...................................................... PAGE 9 9 27 13 24 23 23 18 13 14 3 1 4 25 11 22 22 21 SUMMARY OF BUSINESS CONDITIONS IN THE THIRD FEDERAL RESERVE DISTRICT G RADUAL and seasonal improvement in some lines, tempered by irregularity in others, has marked the business situation since the middle of August. At the same time prices, although still fluc tuating, showed a tendency to rise. In certain indus tries sales have not been quite up to expectations, and buyers as a rule have purchased sparingly for future delivery. Retail sales, however, were maintained during Au gust and continued to run well ahead of last year’s ; and preliminary reports for September indicate that the cool weather has brought out purchasers in goodly number. Wholesale buying was larger during August than in July and was considerably above that of August, 1922. Another measure of the activity of business is found in the volume of payments by check as reported by selected banks. The accompanying chart shows monthly debits for both the Third Federal Reserve District and the United States, excluding New York City, since DEBITS TO INDIVIDUAL ACCOUNTS o r D LA S OL R 20 United Stotes (eddxNwrkC xuir j e a ity io — — —------5 4 3 2 u Third Federal Reserve District V — v -----------^ i 1920 v 1921 1922 1923 The volum e of paym ents by check, as measured by debits to individual accounts, although showing a seasonal decline during the past two m onths, has been considerably above that of last year Source—Federal Reserve Bulletin 3 1920. It will be noted that the curve for this district follows closely that for the United States, and it is quite evident that the volume of payments this year has been maintained at a rate well in excess of that for the corresponding months of 1922. Textile industries have been more active during the month, and both buying and production have increased. The disaster in Japan had a stimulating effect upon the silk market, but conditions are unsettled and will prob ably remain so until it is known how great the destruc tion actually was. Demand for iron and steel products has not increased as much as was generally expected, but producers are optimistic. Building permits issued in this district during August compare favorably with those in July, and most building materials are moving satisfactorily. The hide market has been more active during recent weeks, and leather has at least held its position. Paper manufacturers report an improvement in de mand, and the printing and publishing industry also is more active. In both cases, however, business is said to be running behind that of last September. Manufac turers of cigars and of confections have felt an in creased demand recently, and both are booking Christ mas orders in large volume. Bituminous coal has shown but slight improvement since last month, although prior to the settlement of the anthracite strike, not 'a few sales were made for household use. Prepared sizes of anthracite have continued in excellent request, and pro duction was at a high rate up to the time of the strike, which caused a loss of approximately 6,000,000 tons. As was anticipated, quotations on anthracite at the mines were advanced from 60 cents to $1 a ton soon after mining was resumed on September 19. Many crops in the district have been adversely affected by the dry summer, but recent heavy rains have improved them somewhat. Tobacco and the various fruits are in T 4 B he u s i n e s s R O ctober e v i e w SY N O P SIS OF B U SIN E SS CO NDITIO NS Com piled as of Septem ber 22, 1923 Business Dem and Third Federal Reserve District Prices Collections Bricks F air Cigars Good Coal, anthracite Good Coal, bituminous F air Coke Confectionery F air to good Lower Moderate | Sufficient Good Firm Moderate ! Some scarcity Cotton goods F air to good Higher Moderate Some scarcity F air to good Advancing Unchanged to higher Moderate F air Heavy F air F air to good Unchanged Moderate Sufficient Unchanged F air to good Good Unchanged Moderate Some scarcity Unchanged Poor to fair Glass F air to good Unchanged to lower Light Sufficient Unchanged F air Groceries, wholesale Good Higher D rugs, wholesale Drygoods, wholesale Good Floor coverings Gas and Electric fixtures Weak Labor situ ation Supply 1 Wages Finished stocks ! Moderate I Higher Unchanged to lower 1 Light Moderate to heavy Hardware, wholesale Good Firm Hosiery, fullfashioned F air Hosiery, seamless F air Unchanged to higher Unchanged to higher Unchanged to lower Iron and steel F air Leather belting Good Leather, heavy Poor Leather, upper F air Unchanged Unchanged to lower Unchanged F air Lmchanged I Unchanged Generally unchanged F air F air to good F air F air Fair Unchanged Poor to fair Moderate Some scarcity Generally unchanged F air Moderate Sufficient Unchanged F air Heavy Sufficient Unchanged F air Moderate Moderate to heavy Pleavy Moderate to heavy Moderate Sufficient Unchanged Fair Sufficient Unchanged F air Good Fair Unchanged Sufficient Oils, crude Shoes, manufacture Some scarcity Moderate Oils, refined F air F air F air Weak Printing and publishing Higher Unchanged Lower Unchanged to lower Unchanged Contracts firm, Moderate spots weak Unchanged to lower F air to good i F air to good Some scarcity Sufficient Good F air 1 Fair Unchanged Moderate F air Paint 1 Unchanged Sufficient Moderate to heavy ■ Moderate to heavy Lumber Paper Some scarcity Moderate ! Firm Unchanged Moderate Sufficient Unchanged Sufficient Unchanged Sufficient Unchanged Fair Sufficient Unchanged F air to good Some scarcity Unchanged F air to good Sufficient Unchanged F air but slower Shoes, retail Fair Unchanged Moderate F air Shoes, wholesale Good Moderate Fair Silk goods F air to good Unchanged Higher Moderate Scarcity Unchanged F air to good Silk, thrown F air Higher Light Sufficient Unchanged F air to good Sugar Underwear, heavy weight Underwear, light weight Woolen and worsted goods Woolen and worsted yarns Good Higher Unchanged to higher Unchanged to higher Light Sufficient Unchanged Good Light Sufficient Unchanged Fair Light Sufficient Unchanged Fair Sufficient Unchanged Fair Sufficient Unchanged Fair Good Good Poor to fair Unchanged Poor Unchanged to lower Moderate to heavy Light to moderate *923 T hird F e d e r al R good condition, but vegetables and grains are only fairThe tendency to buy for immediate needs only, which has been a noticeable feature for several months, still continues. This may be explained in part by the im provement in transportation that has taken place since last fall. When deliveries are slow and uncertain, it is not unusual for buyers to place orders ahead, and even to duplicate orders. On the other hand, when deliv eries are reasonably prompt, there is a greater tendency to purchase only for immediate requirements. The achievements of the railroads during the past few months have almost completely allayed fears of a tie-up in transportation, such as occurred last fall. With new records being made in freight car loadings almost weekly, there has nevertheless been a surplus of cars every week since the middle of May. The accompany ing chart shows the surplus and shortage of freight cars by weeks since the beginning of 1922. That there can be both a surplus and a shortage at the same time is explained by the fact that one section of the country may have an ample supply, while another is short. The greatest shortage occurred in the latter part of October, 1922, but since then there has been a gradual improve ment. And since late in May, if holiday weeks be omitted, freight car loadings have been at the rate of over 1,000,000 weekly. It is noteworthy that the vol ume of miscellaneous shipments and of merchandise in less than carload lots has exceeded all previous rec ords ; in fact, it is the heavy movement of these items that brings the totals to such high figures, as grain In spite of exceptionally heavy freight car loadings during the past year, the surplus of cars has been greater than the shortage since last May. This Is in striking contrast with the great shortage in the fall and winter of 1922 Source—American Railway Association e s e r v e D i s t r i c t 5 shipments have not shown as great a seasonal increase as usual. Wholesale commodity prices, which have been declin ing since April, recently turned upward. Although the index of the Bureau of Labor Statistics declined one point to 150 during August, the other well-known indexes showed gains. Bradstreet’s advanced from $12.8201 on July 31 to $12.9143 at the end of August, and Dun’s rose from $186,675 to $187,981 during the same period. Professor Irving Fisher’s weekly index of 200 commodities on September 14 was 156, as com pared with the low point of 153 that prevailed during the first three weeks of August. EMPLOYMENT AND WAGES Both employment and earnings in most of the in dustries of the Third Federal Reserve District con tinued to decline during August. The number of wage earners employed at 503 reporting establishments was 1.2 per cent less than in July; total weekly wages de clined 3.3 per cent, and average weekly earnings 2.1 per cent. Although 22 of the 31 industries included in the survey reported declines in employment ranging from .1 to 17 per cent, in a few, notably the cotton goods, canning, glass, and chemical and paint industries, substantial increases occurred. With but few excep tions, total weekly payrolls and average weekly earn ings also declined in August as compared with July. The reduction in average weekly earnings is a reflec tion of shorter working hours or of the hiring of lower paid workers, as wage rates were practically stationary. No reductions in wages were reported, and only a negligible number of increases. The accompanying table shows the changes in employment, payroll, and average weekly earnings in the principal industries of the district. With the present month the scope of the monthly em ployment survey conducted by this bank has been ex tended to include the entire area of Pennsylvania, New Jersey, and Delaware, instead of only that portion of these three states included in the Third Federal Re serve District. This expansion, which has been under taken in co-operation with the Departments of Labor and Industry of New Jersey and Pennsylvania, will enable us to publish information showing fluctuations in employment and wages in these two states and for the three states combined. The first results of this new survey have enabled us to expand our list of report T 6 he B u s i n e s s ing firms to more than one thousand in the three states. The number of industries or groups of industries rep resented in the survey has been increased from 31 to 48 of the most important in the three states. In general, the classification of industries is that used by the Census of Manufacturers, although in some instances, notably car construction and repair, and engines, machines, and machine tools, two or more census groups have been combined. The following tables show the number of plants reporting in the leading industries of the three states and the number of wage earners reported for the payroll period ended nearest to August 15, 1923, as compared with the total number of wage earners in each of these industries as given by the 1919 Census R O ctober e v i e w of Manufacturers. No later figures are available show ing the total number of wage earners employed in these industries, but the 1919 figures may be considered approximately representative of present employment in most industries. In a number of industries the totals for either Pennsylvania or New Jersey are not shown in order to avoid revealing individual figures. In cer tain instances, such as shipbuilding, total employment has declined materially since 1919; hence the present total of 7 reporting plants and 12,636 wage earners probably represents much more than 11.9 per cent of the total employment in that industry. In the next issue of the Business Review, comparative figures will be published showing the changes in employment, total wages, average weekly earnings, and wage rates in each of the industries included in the survey. WAGES AND EMPLOYMENT Third Federal Reserve District Group All industries (31) .................................. M etal products: Automobile parts ................................ Electrical machinery ........................ Foundries and machine sh ops........ Iron and steel products .................... Car construction and repair .......... Shipbuilding ........................................ Textile products: Carpets and rugs .............................. Clothing ................................................ Cotton g o o d s ........................................ Felt hats .............................................. Knit g o o d s ............................................ Silk goods ............................................ W orsteds and woolens .................... Food products: Bakeries ................................................ Canneries .............................................. Confectionery and ice c r e a m .......... Slaughtering and meat p a c k in g .... Su gar refining .................................... B uilding m aterials: Cement .................................................. Glass ...................................................... Pottery .................................................. Number of report ing plants July Total weekly payroll August Per cent change July August Average weekly wages Per cent change July August Per cent change 503 196,494 194,138 - 1.2 $5,118,422 $4,950,536 - 3.3 $26.05 $25.50 —2.1 18 18 36 31 9 5 5,594 3.246 5,819 20,975 30,826 11,570 5,342 2,900 5,665 20,619 30,909 11,019 — 4.5 — 10.7 — 2.6 — 1.7 T -3 — 4.8 148,659 73,225 157,717 577,665 980.760 314,714 135,283 59,474 152,109 557,247 974,456 296,906- — 9.0 —18.8 — 3.6 — 3.5 .6 — 5.7 26.57 22.56 27.10 27.54 31.82 27.20 25.32 20.51 26.85 27.03 31.53 26.94 — — — — — — 14 22 17 4 28 37 25 4,089 3,851 5.208 5,021 5,942 12,251 9,227 3,962 3,573 6.346 5,055 5,859 12,564 9,024 — 3.1 — 7.2 + 21.9 + .7 — 1.4 + 2.6 — 2.2 104.588 73,024 132,309 127,222 116,188 229,984 196,466 100,142 67,549 132,867 107,423 110,808 292,218 186,624 — 4.3 — 7.5 + -4 — 15.6 — 4.6 +27.1 — 5.0 25.58 18.96 25.40 25.34 19.55, 18.77 21.29 25.28 18.91 20.94 21.25 18.91 23.26 20.68 — 1.2 — .3 — 17.6 —16.1 — 3.3 + 2 3 .9 — 2.9 18 8 21 12 3 2,955 2,713 5,171 1,789 2,029 2,799 2,986 5,164 1,714 1,685 — 5.3 + 10.1 — .1 — 4.2 —17.0 81,892 48,649 110,899 49,929 60,017 76,491 54,987 98,211 48,164 46,909 — 6.6 + 13.0 — 11.4 — 3.5 —21.8 27.71 17.93 21.45 27.91 29.58 27.33 18.41 19.02 28.10 27.84 — 1.4 + 2.7 —11.3 + -7 - 5.9 15 7 11 7,543 862 2,334 7,684 921 2,394 + 1.9 + 6.8 + 2.6 241,866 30,793 71,039 227,906 29,079 73,742 — 5.8 — 5.6 + 3.8 32.06 35.72 30.44 29.66 31.57 30.80 — 7.5 — 11.6 + 1.2 16 29 16 14 17 2 13 20 5 12 2,538 8,023 3,612 5,366 2,772 8,002 2,801 2,586 7,123 4,656 2,458 7.642 4,346 5,373 2,592 7,511 2,673 2,441 6,655 4,263 — 3.2 — 4.7 + 2 0 .3 + 1 — 6.5 — 6.1 — 4.6 — 5.6 — 6.6 — 8.4 44,349 197,302 117,468 83,066 65.642 224,322 70,824 78,926 200,708 108,210 38,310 182,265 125,936 76,327 59,068 205,356 64,004 67,429 197,291 105,955 —13.6 — 7.6 + 7.2 — 8.1 — 10.0 — 8.5 — 9.6 — 14.6 — 1.7 — 2.1 17.47 24.59 32.52 15.48 23.68 28.03 25.29 30.52 28.18 23.24 15.59 — 10.8 23.85 — 3.0 28.98 — 10.9 14.21 — 8.2 22.79 — 3.8 27.34 — 2.5 23.94 1 - 5.3 27.62 — 9.5 29.65 + 5.2 24.85 + 6.9 M iscellaneous: Boots and s h o e s .................................. Leather .................................................. Chemicals and paints ........................ C igars and tobacco .......................... Furniture ............................................. Musical instruments .......................... Paper and pulp .................................. Printing and publishing .................. Petroleum refining ............................ Rubber tires and g o o d s .................... Employment 4.7 9.1 .9 1.9 .9 1.0 192 3 T hird F e der al R e s e r v e D i s t r i c t 7 EMPLOYMENT IN REPORTING PLANTS Pennsylvania and New Jersey PENN SYLVA NIA Number of wage Number Per cent earners of reported reporting Reported Total for of 1919 plants Aug., 1923 State, 1919 total All industries. 652 ; 263,775 860,672 NEW JERSEY Number of wage Number Per cent earners reported of reporting Reported Total for of 1919 plants Aug., 1923 State, 1919 total 102,089 349,812 29.2 30.6 311 6 1.930 5,519 35.0 is 20 10 8,836 5,258 1,677 26.135 8.150 25,033 33.8 64.5 6.7 4 3 18 4 7 729 701 6.985 4.942 3.680 13,811 2,115 7,978 50.251 7,414 5.3 33.1 87.6 9.8 49.6 3 12 7 8 29 13 3 10 8 931 3,013 1.322 1.701 5.128 7,002 490 4.635 1,775 917 18,374 3.303 9.261 32,326 14,490 4.853 14,492 9,107 101.5 16.4 40.0 18.4 15.9 48.3 10.1 32.0 19.5 8 3,144 2,685 117.i 6 1,611 10,161 15.9 9 1,261 3,544 35.6 i3 4,430 5,717 77.5 23 3 3 6.597 429 9.979 18.421 1,994 10,178 35.8 21.5 98.0 6 12 1.090 2,565 2,136 5.499 51.0 46.6 1,109 2.033 399 3,413 3,294 2.835 6,803 4,691 14,014 7,605 39. i 29.9 8.5 24.4 43.3 M etal m anufactures: Automobiles, bodies and p arts.................... Car construction and repair............ Electrical machinery and apparatus.................... Engines, machines and machine tools................ Foundries and machine shops.............................. H eating appliances and apparatus...................... Iron and steel blast furnaces............................ Iron and steel fo rg in gs.......................... Steel works and rolling m ills................................ Structural iron w ork........................................ Miscellaneous iron and steel products.............. S h ip b u ild in g............................................................ N on-ferrous metals ................................................ 20 9 21 19 57 11 12 10 42 9 17 6,422 28 114 3^596 8,917 13,538 2 451 12 130 4243 47.605 3,570 13,851 14,708 94 546 24,228 18.283 71.087 9 129 14619 6 197 171.715 10.722 19,064 43.7 29 7 14.8 48.8 19.0 26 8 83 0 68 5 27.7 33.3 72.7 12 23 4 14 43 24 44 3.565 3,423 5,055 3,357 14.689 8.783 10,094 7,626 37.872 5,414 12.907 53,052 22.798 44,156 46.7 9.0 93.4 26.0 27.7 38.5 22.9 21 4,947 16,410 30 1 20 13 3 19 5,281 2.130 1.685 6,255 11,010 4,438 3.221 30,380 48.0 48 0 52 3 20.6 13 14 24 2,066 7.334 8.075 15.897 7.443 21,602 13.0 98.5 37.4 18 2,096 10,554 19.9 5 6,655 8,235 80.8 8 17 21 3 25 14 19 4 2.414 2.331 5,828 283 5.132 3.783 3.144 933 16,295 10,954 13.749 1.529 13.317 9.843 22,792 4,880 14.8 21.3 42.4 18.5 38.5 38.4 13.8 19.1 Textile products: Carpets and rugs .................................................. C lo th in g .......................... Hats .......................... Cotton goods ............................ Silk g o o d s .................................................................. Woolens and w orsteds............................................ Knit goods and hosiery.......................................... Dyeing and finishing textiles................................ Other textile products .......................................... Foods and tobacco: Bakeries ..................................................................... C an n e rie s................................................................... Confectionery and ice cream ................................ Slaughtering and meat packing.......................... Su gar re fin in g .......................................................... C igars and tobacco.................................................. Building m aterials: Brick, tile, and terra cotta products.................. C e m e n t.................. Glass ........................... P o tt e r y ....................................................................... Chem icals and allied products: Chemicals and d ru gs.............................................. Paints and varnishes................................................ Petroleum re fin in g .................................................. M iscellaneous industries: F u rn itu re ................................................................... Leather tanning ..................................................... Leather p ro d u c ts..................................................... Boots and sh oes........................................................ Paper and pulp products........................................ Printing and publishing.......................................... Rubber tires and go o d s.......................................... Novelties and jew elry............................................ .......1 7 10 3 16 12 8 T he B u s i n e s s R O ctober e v i e w EMPLOYMENT IN REPORTING PLANTS Pennsylvania, New Jersey and Delaware Number of wage Number of earners in report Total number of Per cent reported reporting plants ing plants, August. wage earners in all of 1919 total plants, 1919 1923 All industries (47) ................................................................................ M etal m anufactures: 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 work ............................................ ........................... Miscellaneous iron and steel p ro d u c ts.......................................... Shipbuilding ........................................................................................ N on-ferrous metals .......................................................................... Textile products: Carpets and r u g s ................................................................................ Clothing ................................................................................................ H ats ...................................................................................................... Cotton goods ...................................................................................... Silk goods ............................................................................................ W oolens and worsteds .................................................................... Knit goods and hosiery .................................................................. Dyeing and finishing t e x t ile s .......................................................... Miscellaneous textile products ...................................................... Foods and tobacco: B a k e r ie s.................................................................................................. Canneries .............................................................................................. Confectionery and ice c r e a m .......................................................... Slaughtering and meat packing .................................................... Su gar refining .................................................................................... C igars and to b a c c o ............................................................................ Building m aterials: Brick, tile, and terra cotta products ............................................ Cement ................................................................................................. Glass ...................................................................................................... Pottery .................................................................................................. Chem icals and allied products: Chemicals and drugs ........................................................................ Explosives ............................................................................................ Paints and varnishes ........................................................................ Petroleum refining ............................................................................ M iscellaneous industries: Lumber and planing mill products .............................................. Furniture .............................................................................................. Musical instruments ........................................................................ Leather ta n n in g .................................................................................. Leather products ................................................................................ Boots and shoes ................................................................................ Paper and pulp products ................................................................ Printing and publishing .................................................................. Rubber tires and g o o d s .................................................................... Novelties and jewelry ...................................................................... All other industries .......................................................................... 1,016 399,682 1,354,435 29.5 323 26 10 36 39 68 13 13 11 46 12 35 7 193,278 8,352 31,462 12,432 14,175 15,683 • 4,357 12,432 4,628 48,334 4,271 20,836 12,636 3,680 679,172 20,227 108,090 50,363 26,433 96,998 10,526 15,106 7,024 186,535 12,837 27,042 106,462 11,529 28.5 41.3 29.1 24.7 53.6 16.2 41.4 82.3 65.9 25.9 33.3 77.1 11.9 31.9 259 15 35 11 23 72 37 47 11 8 76,967 4,496 6,436 6,377 6,808 19,817 15,785 10,584 4,889 1,775 303,665 8,543 56,412 8,717 22,168 85,378 37,288 49,009 21,873 14,277 25.3 52.6 11.4 73.2 30.7 23.2 42.3 21.6 22.4 12.4 98 22 11 22 14 4 25 26,616 5,170 3,180 5,357 2,790 2,253 7,866 93,026 22,633 4,144 14,063 8,121 3,221 40,844 28.6 22.8 76.7 38.1 34.4 69.9 19.3 76 22 15 25 14 23,633 3,327 7,684 8,084 4,538 62,013 19,441 7,443 27,544 7,585 38.1 17.1 103.2 29.3 59.8 62 42 9 3 8 28,680 8,713 2,904 429 16,634 53,784 29.016 1,217 5,138 18,413 53.3 30.0 238.6 8.3 90.3 198 8 23 3 36 5 32 25 23 22 12 9 50,508 2,414 3,421 7,568 9,094 647 6,241 5,841 3,545 5,444 3,294 2,999 162,775 20,092 13,090 13,353 23,499 3,423 16,152 18,814 27,853 18.894 7,605 31.0 12.0 26.1 56.7 38.7 18.9 38.6 31.0 12.7 28.8 43.3 7 r923 T hird F e der al FIN AN CIAL CONDITIONS Figures of reporting member banks in the Third Federal Reserve District give evidence of little change in loans and discounts during the past month. In fact, commercial loans have fluctuated within a range of only four millions of dollars since the middle of June. Se cured loans have gained, from 269 millions on June 13, to 283 millions on September 12; but investments de clined from 311 to 291 millions in the same period, and deposits fell from 817 to 804 millions. Comparing the condition of these banks on Septem ber 12 with that of a year ago, we find that commercial loans have advanced from 318 to 358 millions, and secured loans from 263 to 283 millions. Investments, which on September 13, 1922, were 281 millions ad vanced to 318 millions at the beginning of this year, but have since dropped to 291 millions. In the four weeks ending September 19 the earning assets of the Federal Reserve Bank of Philadelphia decreased from 97 to 94 millions, Federal reserve note circulation increased from 211 to 218 millions, and reserves advanced from 254 to 259 millions; but deposits declined one million. The reserve ratio, at 77.3 per cent, remains unchanged from that of August 22. In August of last year the bills discounted held by the Philadelphia bank reached a low point of 36 millions. 1 hereafter to the end of that year these bills increased with comparative steadiness, reaching 49 millions on December 31. In 1923 the trend was generally upward, to 78 millions at the beginning of July, but since that time the total has fallen to 59 millions. Security prices have lately declined. The average price of 20 industrial shares on September 20 was $88.16, as compared with $91.71 a month Secu rities ago, and railroad shares declined from $79.53 to $78.36. The average of 40 bonds fell from $87.35 to $86.46, but four Liberty issues advanced from $98.17 to $98.24. The renewal rate for call money, after ranging between 5 and 5*T per cent from August 20 to September 17, declined to 4^4 per cent on September 18, to 4*4 per cent on the 19th, and to 4*4 per cent on the 20th. Sales of stocks averaged somewhat higher than in August, but can hardly be called active. The daily average up to September 20, excluding Saturdays, was only 711,000 shares. Five dealers operating within the Third Federal Re serve District report a small increase in the sales of acceptances during the four weeks B an kers’ ending September 11. The weekly accep tan ces average was $1,860,000, as compared Aith $1,628,000 a month ago, and $1,524,000 a year ago. The Federal Reserve Bank continued to be by far the largest purchaser, but the out-of-town banks have R e s e r v e D i s t r i c t 9 manifested increasing interest. Local banks bought in only negligible amounts. Comparative sales and pur chases within the district were as follows: Weekly average for period Sales Purchases 1923: August 16 to September 11........... July 12 to August 1 5 ........................ June 14 to July 11 ............................ May 16 to Tune 13 ............................ $1,860,000 1,628,000 2,211,000 1,749,000 $424,000 271.000 464,000 320,000 1,524,000 323,000 1922: August 14 to September 17........... Bills are reported to be scarce and the demand is from fair to good, with the result that bills of from 30 to 90 days' maturity move freely at offering rates. These are from 4 to 4j^ per cent for acceptances up to 90 days, and 4*4 per cent for those running from 150 to 180 days. The bid rate was 34 of one per cent higher. • Savings deposits in the Third Federal Reserve Dis trict increased in only negligible amount during August. In four cities, conspicuous for their in Savings dustries, decreases are reported for the deposits month. Percentage changes were as follows: SAVINGS DEPOSITS Third Federal Reserve District Per cent increase or decrease September 1, 1923, compared Number with— of reporting banks Aug. , Sept. 1, Sept. , 1922 1923 1921 1 Altoona ............................... ........ Chester ............. ........ H arrisburg . . . . Tohnstown ........ Lancaster ........................ Philadelphia . . . Reading ............................... Scranton .............................. Trenton .................................. W ilkes-Barre . . Williamsport . . . Wilmington . . . . York .............................................. Others ............................................ . . . . Totals .............. . . . . 1 5 5 4 6 3 9 3 6 6 5 4 5 5 14 + 1.0 + -1 — .8 + 1 .2 + 1.1 — .1 —1.0 + -4 —1.3 + -7 4- -3 + -4 + 1.4 + -4 + 13.2 + 24.7 + 11.9 — 7.5 +42.3 + 138.3 +14.3 + 9.1 +31.9 + 63.2 + 6.9 + 8.4 + 12.2 + 22.7 + 14.4 + 21.1 + 6.2 + 11.2 +20.7 + 19.9 + 8.5 + 15.8 + 9.6 + 23.8 + 12.5 j + 22.2 + 15.4 j + 13.1 80 + .01 + 9.5 + 12.4 The outstanding influence on European exchanges this month was the news of the earthquake in Japan, . which caused a sharp decline in sterling Foreign and had a depressing effect on some exc a g q£ t|ie more important continental cur rencies. The so-called neutral exchanges followed con tinental movements rather closelv. Sterling sank to a T IO he B u s i n e s s R e v i e w O cto ber level of $4.5099, the lowest quotation since December of last year, but later it recovered, on receipt of more reassuring news from Japan and because of the brighter outlook in the European political situation. Continental exchanges later moved upward, although continuing irregular, and both French and Belgian francs are at present stronger than they have been for some time past. Marks, pursuing their downward course, were offered at as high as 120,000,000 to the dollar, and some of the larger New York banks have discontinued fur ther quotations. Guilders fell somewhat, as did Spanish pesetas. Swiss francs are lower than they were at this time last month, and the Scandinavian currencies re ceded. Norwegian kroner fell to a level not touched since July 31 of this year. Italian lire have shown a tendency to strengthen as a result of improved relations between Italy and Greece. As was to be expected, quotations on Japanese yen for a time were entirely nominal, pending authentic news from Yokohama. Other Far Eastern currencies show little change from last month, with the exception of Chinese tael, quotations on which have tended UpwardArgentine and Chilean pesos are quoted at a somewhat better rate than at this time last month, while Brazilian milreis are weaker. Canadian dollars are also slightly weaker. A comparative table is given below, showing changes in quotations that have occurred since last month and since the corresponding date of last year. wanted at better than 5jq per cent. A few notes are still held at 5 per cent, but no sales at that rate have been made in this market. In the Chicago district, however, some paper has sold at that rate. The banks in the anthracite coal region, which were entirely out of the market last month because of the threatened strike, have now re-entered it, and purchases have recently been made by banks in that locality which have not been interested in commercial paper for many months. The announcement of an issue of six months certificates by the Government at 4j4 per cent has made the return received from paper purchases seem particu larly attractive. Commercial paper continues in good supply and the higher rates do not appear to have cur tailed the demand for money. Six dealers in this district report sales during August to the amount of $4,903,000. This is the smallest total in any month since this service was inaugurated in May, 1922. The former low record was in November, 1922, when sales amounted to $5,717,000. Only one of the reporting dealers had larger sales in August, 1923, than in August, 1922. The main cause for the unusually small business was the almost total absence of buying by Philadelphia banks. Purchases by them were only $432,500. In August, 1922, the total sales bv the six dealers were $5,971,483, of which Philadel phia banks took $2,407,500. Rates at which transactions were closed varied from 5 to 5>4 per cent, but the majority of the sales were at 5*4 per cent. Foreign exchange rates R E T A IL TRADE Sales at retail in September are running well ahead of those for the corresponding period of last year, and although this month is a short one for business, because it contains five Sundays, it is probable that the total sales will exceed those of September, 1922. In the anthracite regions, the settlement of the strike has stimulated business, and sales are increasing. But stores in New Jersey report that the long continued trolley strike was harmful to trade, and that business decreased. The list of articles in good request is a long one and includes furniture, carpets and rugs, linoleums, housefurnishings, pianos and phonographs, women’s dresses, dress materials both of wool and of silk, men’s clothes, men’s furnishings, and gold jewelry. Prices at retail show very little change during the month, and retailers report that with the exception of silks, silk hosiery, and some cotton materials they can purchase merchandise readily at former figures. In fact, in some lines in creased anxiety to sell has resulted in slightly lower prices from manufacturers. The buying policy of the retailers is to purchase very closely and make as few future commitments as possible. The fact that in this district the rate of turnover for the first half of 1923 increased 0.2 and in the two-month period, July 1 to August 31. 0.1. as compared with the same periods of 1922, shows that retail trade is being carried on with Noon cables Par value Sept. 20, 1923 $4 8665 $4.5436 .1930 .0590 .1930 .0495 .1930 .0448 .00000000824 .2382 .000014 .2026 .4020 .3931 .1806 .2680 .2654 .2680 .1351 .1930 .1771 .1930 .7598 Buenos A ires . .9648 .7227 .7105 Shanghai ........ Paris ................ Antwerp ......... Milan .............. Berlin .............. Vienna ............ Amsterdam . . . . Copenhagen . . . Stockholm . . . . Madrid ............ August 20, 1923 .0557 .0445 .0430 .00000018 .000014 .3936 .1861 .2661 .1347 .1808 .7322 .6991 Sept. 20, 1922 $4.4329 .0765 .0723 .0123 .000705 .000014 .3874 .2083 .2651 .1519 1870 .8042 .7711 Sales of commercial paper since Fabor Day have been increasing, and a better demand is reported from . both city and country banks. The C om m ercial hjg]ier rates at which paper is selling p ap e r have proved an inducement to buy. Most of the transactions have been at 5 per cent, but a number of sales have been made at 3 and 5j4 per cent. One of the large Philadelphia banks has been a purchaser of considerable sums, but at not less than 5p2 per cent. Some dealers, however, failed to share in these transactions, as they declined to sell the names % . i 923 T hird F e d e r a l R e s e r v e D ii i s t r i c t RETAIL TRADE Third Federal Reserve D istrict Comparison of Net Sales August, 1923 with August, 1922 July 1 to Aug. 31, 1923 with July 1 to July 31, 1922 Comparison of Stocks Aug. 31, 1923 with Aug. 31, 1922 Rate of Turnover Percentage of orders outstand ing Aug. 31, Tulv 1 to July 1 tc 1923, to Aug. 31 Aug. 31 total purchases in 1922 1923 1922 Aug. 31, 1923 with July 31, 1923 All reporting firm s.................... firm s in— Philadelphia ............ —Allentown, Bethlehem and Easton. . —Altoona .................... —Chester .................... —H arrisburg ............. —Johnstown .............. —Lancaster ................ —Reading ................... —Scranton ................ •. —Trenton ................... —W ilkes-Barre .......... —W illiamsport .......... —Wilmington ............ —York .......................... —All other cities........ +13.4% + 12.6" + 13.4% +12.9 “ + 10.5% + 6 .6 “ + 7.3% + 9.2 “ 2.7 3.1 2.6 2.9 10.5% 11.4“ + 10.1 " + 16.1 “ +35.6 +20.1 “ + 16.0“ + 15.0" +20.1 “ + 2 1 .0 " + 7.2 " + 13.0" — .0 4 “ + 10.9" + 11.5“ + 19.6“ +10.1 “ +17.5 “ +34.3 “ 4-12.7" +16.5 “ -1-13.2 " +15.7 " -1-25.0 " + 6.8 “ + 17.4" — .4 “ + 6.7 “ + 7.0 “ —21.2 “ + 9.3 “ -414.8 " +24.9 “ + 1 9 .4 " +18.6 “ + 11.3" + 9.3 “ + 4 1 .7 “ + 6.1 “ +22.3 " + 18.4" -415.1 " . + 3.7 “ - -22.9 “ + 2.3 “ +10.9 “ -417.0" + 2.3 " 4- 7.4" + 5.1 " + 4.8 " + 10.3“ — .4 " + 6 .0 “ + 9.2 “ 4- .6 “ 4- 9.0 “ — .1 “ 2.1 2.5 1.4 2.0 2.8 2.0 1.9 2.3 2.4 2.5 1.9 1.5 2.1 2.2 2.2 2.4 1.0 2.2 2.8 2.0 1.8 2.4 2.4 2.6 2.4 1.7 2.0 2.3 7.9 “ 11.5“ All department sto res................ Department stores in P h ila .... Depart, stores outside P h ila... + 1 1 .3 "' + 9.7 “ +14.5 “ -412.0“ -1-11.0“ + 13.9 “ + 9.1 “ + 5.9“ + 14.4“ + 5.6 “ + 6.9 " + 3.8 " 2.7 3.0 2.3 2.6 2.8 2.3 11.8 “ 13.7“ 9 .1 “ All apparel sto res...................... Men's apparel stores.................. —in Phila...................... —outside Phila............ Women’s apparel stores............ —in Phila...................... -—outside Phila............ + 2 4 .8 “ + 1 3 .7 “ + 11.6 “ + 1 6 .8 “ +29.5 " +36.1 “ + 6.1 “ + 19.9 “ + 9.7 “ + 4.6 " -415.8 “ +23.3 “ -428.7 “ + 4.2 " + 14.8“ — i-12.4 “ q- 4 .2 “ + 2 0 .4 " + 1.8“ — 3 .0 “ + 16.2" +22.9 " +20.1 “ -421.9" + 18.6 “ + 2 2 .3 " +25.5 “ + 15.1 “ 2.9 1.7 2.0 1.4 4.4 5.1 2.5 2.7 1.7 2.0 1.5 3.5 3.7 2.9 5.2 “ 8 .5 “ Credit houses .............................. + 19.5“ +24.1 “ +26.3 “ — 1.7“ 2.3 2.3 7.2 “ smaller stocks, in comparison with sales, than it was last year. Stocks on August 31, in a number of stores, showed a rather large increase; this is ascribed not only to the ability of the producers to make early shipment, but also to the improved traffic conditions on the rail roads, which have resulted in a faster movement of freight and earlier deliveries than were anticipated by the buyers. At this period of the year retail stores, especially in the large cities, commence to take on employees. It is reported by some stores that considerable difficulty is experienced in securing the number required. Although reports state that charge accounts are increasing in number, collections continue to be good. The accompanying table, compiled from reports of retail establishments, shows that sales in August ex ceeded those of last August by 13.4 per cent. Gains were made in all parts of the district except Williams port. For some months past stores in that locality have not shared in the large gains that have been made else where in the district. < • 6 .7 “ 8.5 “ 5 .2“ 5.2 " 5.6 " WHOLESALE TRADE Increasing, demand is noted by all the reporting wholesale trades, and sales in all lines in August were considerably larger than in August, 1922. As com pared with July, notable increases were made in boots and shoes, and drygoods, and smaller gains occurred in drugs and hardware. But grocery sales decreased slightly. The prices of shoes and of hardware are about the same as they were last month, but in drygoods most articles made of cotton are higher, in sympathy with the large increase in the quotation for raw cotton. Ad vances in grocery prices outnumber the declines, and marked gains are recorded in sugar, flour, and dairy products. In wholesale drugs, fine chemicals have ad vanced sharply, and the range of botanical drug quota tions is slightly above that of a month ago. During August, collections varied considerably in the different lines, as is shown bv the figures for the ratio of accounts outstanding in the table on page 12. 12 T he B u s i n e s s Demand for drygoods has increased during the month, but sales continue in nearly all instances to be for shipment within sixty days; in fact, D rygoods a considerable majority call for ship ment within thirty days. The list of articles in request covers the entire line, but especially good sales are reported in outing flannel, blankets, hosiery, underwear, sweaters, and holiday goods. Stocks in the hands of wholesalers, as usual at this time of year, are heavy, and most firms state that they increased during the month. Sales of drygoods at wholesale during August in creased 31.8 per cent, as compared with July, and were larger than in August, 1922, by 9.8 per cent. Collec tions are in most instances said to be fair. The ratio of accounts outstanding to sales is 214.1 as against 263.5 a month ago, and 206.1 a year ago. Wholesalers report that drugs are in fairly good de mand and that sales are slightly greater than those of a month ago. Toilet articles are in excellent D ru gs request, and the call for seasonable patent medicines is good. Botanical drugs are in somewhat better demand than they were last month, and prices have stiffened slightly. The price index of 40 botanical drugs advanced from 123.3 at the close of August to 123.4 on September 17. Fine chemicals and prepared drugs have advanced sharply in price, as is shown by a rise of 13 per cent in the index number during the month. The following table gives the price indices of 40 botanical drugs and 35 drugs and fine chemicals, as compiled by the “ Oil, Paint and Drug Reporter.” 1923 Week ending August 27 .................. September 3 ............ September 10 ............ September 17 ............ 1922 Price index of 35 drugs and fine chemicals 1923 1922 123.4 123.3 123.3 123.4 106.0 106.1 105.9 108.0 184.7 184.7 208.5 208.6 Price index of 40 botanical drugs 149.2 155.0 155.6 156.0 R eview O ctober ' Sales at wholesale in August were 5.3 per cent greater than in July, and 10.0 per cent greater than those of August, 1922. Stocks held by the distributors are moderate and about the same as they were a month ago. Collections are only fair, although more prompt than they were in July. The ratio of accounts outstand ing to sales in August was 144.4, as compared with 152.2 in July and 136.2 in August, 1922. The net sales of 33 hardware firms in this district during August showed an increase of 3.4 per cent over those in July, and a gain of 14.3 H ardw are per cent over those of August, 1922. However, our August sales index, compiled from the reports of 20 representative firms, was 111 which was the same as last month, although 14 points under the figure for June. Builders and contractors continue to be the heaviest consumers, but good sales are reported in hardware used by plumbers and heating contractors. Sporting goods and electrical supplies are also selling in fair quantities. Supplies for mechanics and for manufac turing plants are in request. WHOLESALE TRADE Third Federal Reserve District Percentage of increase or decrease in — Number of reporting firms Net sales Aug., 1923, compared with— July, 1923 Boots and shoes .................. D rugs ...................................... Drygoods ................................ Groceries ................ : ............. H ardware .............................. 12 14 20 50 33 +50.7% + 5 .3 “ + 3 1 .8 “ _ 12 “ 4- 3.4 “ Accounts outstanding Aug., 1923, compared w'ith— Aug., 1922 July, 1923 Aug., 1922 +32.1% + 10.0 “ + 9.8 “ + 14.2 “ + 14.3“ + 13.7% + 3.5 “ + 7.1 “ 4- 1.1 “ + -6“ +19.9% + 16.7 “ + 14.1 “ + 12.6 “ + 13.3 “ Ratio of accounts outstanding to sales Aug., 1923 July, 1923 Aug., 1922 254.2% 144.4 “ 214.1 “ 104.9 “ 167.3 “ 325.3% 152.2 “ 263.5 “ 103.3 “ 171.2 “ 287.6% 136.2 “ 206.1 “ 107.8 “ 168.6 “ J 923 T hird F e der al R e s e r v e D i s t r i c t SU GAR Stocks on hand are from moderate to fairly heavy At the close of last month refiners began active buy and have changed but little since last month. Prices in general remain firm and unchanged. Collections con ing of raw sugar in nearby positions, and in conse quence Cuban raws, for prompt shipment, tinue to be only fair, but show some improvement over advanced from 4j4$ cents, c & f, to 4jT cents, those of last month. The ratio of accounts outstanding R aw su g a r c & during the last week of August. The to sales was 167.3 in August, as compared with 171.2 in July. A slight improvement is also noted over the heavy demand has continued this month, and at the close of the second week of the month practically all ratio of August, 1922, which stood at 168.6. Sales of shoes at wholesale during September have of the sugar in September loading positions had been been stimulated by the settlement of the anthracite coal purchased by refiners. Prices also steadily advanced. strike and by the unusually early spell of By the second week of the month, Cubas for prompt Shoes cool weather. Preliminary estimates indicate shipment were selling at 5 cents, c & f, and on the that sales will be larger than they were in 22d they were selling at from 5D to 5ys cents, c & f. September, 1922, in spite of the fact that the demand The dulness prevailing in the raw sugar market during July and the greater part of August resulted in many for the Jewish holiday trade was poor. Women’s and children’s lines have been especially sugar ships being withdrawn from the sugar trade, and active, but men's, too, have sold freely. For women, consequently a scarcity of bottoms has been noticeable suede continues to be the most desired material, but this month. Refiners, therefore, have not been able to patent and calf grain leathers and satins are good secure promptly all the raw sugar they desired, and sellers. Mat kid is in increasing demand, which is a after the middle of the month practically all sales were natural sequence of the large sales of black suede. for early October delivery. Prices of Porto Rican Prices continue to be steady, and the only change of sugars closely followed those of Cuban and advanced note is an advance in quotations for satin shoes. This from 6.28 cents, delivered, at the beginning of the is a result of the advance in the price of all silks because month, to 7.03 cents on the twentieth of the month, of the destruction of a large quantity of raw silk by equivalent to 4J/2 and S%. cents, c & f, for Cubas. the earthquake in Japan. Canadian refiners have been fairly heavy buyers of During August, sales in this district, as reported to Santo Dominican, Peruvian, and other full-duty sugars the Federal Reserve Bank, increased 50.7 per cent, as at prices close to the equivalents for Cubas and Porto compared with July, and 32.1 per cent as compared Ricos. English refiners have been competing actively with August, 1922. The ratio of accounts outstanding with the Canadians for the limited offerings of these to sales on August 31 was 254.2; on July 31, 325.3; sugars. and on August 31, 1922, 287.6. The grinding season in Cuba came to a close during The majority of preliminary reports from wholesale the first week of this month with the closing of Central grocers state that because of their shipping to customers Santa Lucia. The production of this central was 155,401 quantities of canned goods that were bags, as compared with 307,069 last year. Guma-Mejer, G roceries ordered in May or June, September the Cuban sugar statisticians, on September 5 stated sales are greater in volume than were that the total crop of the island for this year was 3,602,those of August. But many report that September sales 910 tons, or 333,487 less than that of last year. In show no change from those of August. In general, fact, the Cuban crop is 500,000 tons less than the lowest estimate of 4,100,000 tons made by the Cuban authori however, the demand for groceries is good. Canned vegetables, canned fish, dried fruits, cereals, ties at the beginning of the grinding season. Insufficient sugar, preserving jars and cans, flour, and canned fruits rainfall during the growing season was the principal are in strong demand. Deliveries of the new pack of cause of the disappointing yield. Receipts at Cuban shipping ports are decreasing canned fruits and vegetables and of dried fruits to the wholesalers have been heavy, and the latter are weekly and so are the total stocks on the island. Ftimelv shipping them to retailers as fast as possible. Whole reports that stocks are smaller than they were a year salers’ price lists show that more commodities have ad ago. On September 15 the total sugar stocks in Cuba vanced than have declined in price. Stocks in the hands were only 363,553 tons, as against 364,773 on the of wholesalers are reported as being from moderate to same date last vear, and 1,205,328 on September heavy and in general are considerably larger than they 15, 1921. The American beet sugar crop reports continue to were last month, because of heavy deliveries of the new pack canned goods and of dried fruits and vegetables. be very favorable. The Department of Agriculture esti Wholesale grocery sales during August were 1.2 per mates the September 1 condition to have been 91 per cent smaller than those of July, but 14.2 per cent cent of normal, or 3 per cent above the average Sep greater than in August, 1922. The ratio of accounts tember 1 condition. On this basis the Department esti outstanding to sales increased from 103.3 in July to mates the total beet crop at 6,533,000 short tons, the equivalent of 835,000 short tons of beet sugar. The 104.9 in August. 14 T he B u s i n e s s following table gives the condition on September 1 and the forecasts of production of sugar beets in the prin cipal production states of the country. Condition of sugar beets and forecasts of production Condition September 1 Production State 10-year average California ... Colorado . . . . Idaho ............ Nebraska . . . Utah ............ Michigan . . . Ohio .............. W isconsin ... Other states United States Per cent 88 88 90 90 91 85 86 88 88.2 1922. final estimate 1923, fore cast from Sept. 1 condition Per cent Short tons 86 424.000 Short tons 1923 1,466,000 273,000 703,000 819.000 692,000 220,000 67,000 519,000 86 97 83 91 85 91 538,000 1,890,000 384,000 541,000 941,000 897,000 385,000 129,000 827,000 5,183.000 95 97 R e v i e w O ctober cents at the beginning of the month to 8.75 or 8.90 cents at the end of the third week of the month. On September 17 one refiner who was withdrawn from the market for over a week re-entered at 8.25 cents, but soon advanced to 8.40 cents and then to 8.75 cents. Some second hands were offering fine granulated at 8.20 cents early in the third week of the month, but all of those offerings were withdrawn after the middle of that week. The following chart showing the prices of fine granu lated and raw sugars from 1920 to date illustrates the fact that price movements in August and September of 1922 and of 1923 were very similar. In both years prices declined during August until the close of the month and then advanced steadily through most of September. 6,532,000 Total beet sugar production in the United States Short tons 1921, final estimate ...................................................... 1,020,000 1922, final estimate ...................................................... 675.000 1923, forecast from condition of beets, Sept. 1 .. 835,000 Despite the buying that has occurred on the sugar exchange, the receipts of raw sugar at the ports of Baltimore, Boston, New York, and Philadelphia for the first three weeks of the month were not as large as for the same period of last year. Lack of bottoms was probably the chief cause of this. The following data, compiled by the “ American Sugar Bulletin,” show how receipts for the same periods of both years com pare. R eceipts of raw sugar at A tlantic ports Tons (2240 lbs.) From From From From Sources—Weekly Statistical Sugar Trade Journal and American Sugar Bulletin August 31 to September 1 to September 21, September 22, 1923 1922 Cuba .......................................... Porto Rico ................................ Philippine Islands .................. other countries ........................ 57.271 11.271 5.706 1,753 113,728 6,500 6.898 1,551 Total receipts .................................. 76,001 128,677 The demand for refined sugar has been considerably stronger than it was in September, 1922. Heavy preRefi. d serving frllits ancl tlie making of jellies e e has created an enormous demand from housewives, and the confectionery industry is now in its busiest season. \\ holesale grocers, the majority of whom were carrying only light stocks, have been buying heavily and pressing for immediate shipment. As a result, the price of fine granu lated sugar at the refineries advanced from 7.90 or 8.00 On account of the temporary scarcity of bottoms, receipts of raw sugar at the refineries during the first three weeks of the month were light, and meltings were much smaller than for the same period last year. Conse quently, refiners’ stocks have decreased rapidly and are now rather light, being about 31 per cent smaller than they were a year ago and 25 per cent less than the average stocks carried at the refineries from January 1 to September 14. On September 21 refiners’ stocks at northern Atlantic ports amounted to 80,473 tons and on September 22. 1922, to 115,417 tons. Meltings for the first three weeks of the month at the refineries at Baltimore, Philadelphia, New York, and Boston amounted to 151,500 tons, as compared with 185,000 tons for the same period in 1922. This represents a decline of 18 per cent. Export inquiry for refined sugars has been negligible. Most of the European countries are beginning their beet sugar production season and consequently are not 1923 T hird F e d e r a l in need of foreign sugars. As the “Journal des Fabricants de Sucre” of Paris estimates that the continental production of beet sugar will be 600,000 tons greater this year than last, it is very probable that our exports next year will be considerably smaller than those of 1923. R e s e r v e D i s t r i c t 15 delphia, but most manufacturers in the district state that the supply of workers is adequate. Wages are unchanged. Collections are reported as being from fair to good, and they show practically no change from those of last month or of September, 1922. CO N FECTIO N ER Y Most of the manufacturing confectioners in the dis trict are now at work on Christmas orders, and activi ties at the factories are greater than they were a month ago. Producers of hard candies, chocolate-coated candies, and chocolates report that the demand is good and that Christmas orders are being booked in large volume. A few makers of chocolate-coated piece candies state that the early bookings of Christmas or ders were not as large as those of a year ago ; but they attribute this decrease to the fact that retailers expected prices to drop after the reduction in sugar in August and therefore made only hand to mouth purchases. In general, orders for Christmas candy are larger than they were last year, some firms stating that their book ings are as much as 25 per cent greater. Firms which sell in the South report that the demand from cities in the cotton-belt is especially good, and much heavier than it was last fall. Manufacturers of chocolate coating, bar chocolate, baking chocolate, and cocoa also find their products to be in good request, and their fac tories are more active than they were a year ago. Many confectioners are operating at capacity, and the average of factory operations throughout the district is about 90 per cent. The majority of orders booked specify delivery within 60 days, but about 10 per cent are for delivery at a later date. In consequence of the drop in sugar prices last month, some candy makers on September 1 reduced th eir prices on penny and piece goods to the same level as prevailed last January; but this procedure was not general. As prices of box candies have remained practically unchanged during the year, no reductions in this class were expected, and prices are firm. Sugar, which towards the close of last month dropped to.7j4 cents per pound, has steadily advanced during this month to 8.75 or 8.90 cents at the refinery. Cocoa beans, glucose, nuts, and other raw materials have shown little change in price since last month. Stocks of candy at the factories, in general, are moderate and are increasing, as the major portion of the Christmas orders will not be shipped until late in October or November. Stocks of chocolate-coating held by the manufacturers are heavy, but are decreas ing rapidly, as candy makers are now consuming great quantities. Most confectioners have moderate sup plies of raw materials on hand and have contracted for their requirements up to the close of the year. Some difficulty in securing girl workers and young men is being experienced at certain factories in Phila BU ILD IN G Fourteen cities in the Third Federal Reserve Dis trict report the value of building permits issued during August as $13,294,661, a decline of $1,587,887 from the July figure. This loss was more than accounted for by a decrease of over $3,000,000 in Philadelphia. That the decline for the entire district was not greater is partly due to a large increase in Harrisburg. As shown in the table on page 16, permits issued during Au gust were also less, by over $2,000,000, than those for the corresponding month in 1922. There was a drop of approximately $4,000,000 in the value of contracts awarded during August, the total being $15,324,493, as •against $19,496,783 in July. Demand for building and fire bricks is only fair, and most manufacturers report a falling off in orders from last month. In a few cases the demand is Bricks greater than it was at this time last year, bnt the majority of firms state that orders this month are smaller than those of September, 1922. The majority are for delivery within 60 days, although some are for up to and beyond 90 days. Quotations on both building and fire bricks are somewhat weak, but remain practically unchanged. Stocks in general are reported to be moderate and show a tendency to increase. Stocks of raw materials are either stationary or decreasing. Individual orders are somewhat smaller than usual, but cancellations and postponements are rare. Manufacturers of building bricks are operating at an average of 70 per cent of capacity, which is less than that of last month. Pro duction of refractories is slightly lower than it was last month, the average of operations in this district being about 75 per cent. In both cases orders already taken will insure production for from ten days to three months. The supply of both skilled and unskilled labor is reported as sufficient in the majority of cases, although one manufacturer of building bricks has been forced to reduce production on account of scarcity of workmen. Collections are fair, very little change being noted from those of last month or of last year at this time. Most manufacturers report a good demand for lum ber, but several state that sales during late August and early September were smaller than in the L u m b er month previous. A few of the larger manufacturers, however, report an in crease in sales over last year's. Some wholesale dealers state that demand is stronger than it was a month ago. 16 T he B u s i n e s s R O ctober eview BUILDING PERMITS Third Federal Reserve D istrict August, 1923 January to August inclusive August, 1922 [ 1923 Permits Operations Estimated cost Permits Operations Estimated cost Allentown .................. Altoona ....................... Atlantic Citv* .......... Camden ...................... H arrisburg ................ Lancaster .................... Philadelphia .............. Reading ...................... Scranton* ................... Trenton ...................... W ilkes-Barre* .......... W illiam sport* ........... Wilmington ............... York ............................ 90 163 116 143 69 67 1,346 263 127 176 95 80 95 121 116 166 116 163 78 67 1.848 274 127 198 95 80 95 121 Total for A u gu st... 2,851 3,544 $156,850 198,067 489,936 746,727 1.131.277 440,445 8.246,280 329.250 267,210 594,415 266,708 55,590 244.578 127,328 $13,294,661 89 129 212 103 81 58 1.349 299 144 141 97 118 104 120 106 129 212 112 102 58 2.194 307 144 154 97 118 104 120 $414,280 226,864 722,690 305,605 251,265 416,525 10.945,830 690,275 269,730 331,088 239,601 159.676 230,483 148,743 3,044 3,957 $15,352,655 1922 Permits Estimated cost Permits 1 Estimated cost 732 1.281 1,859 778 656 663 10,120 2.281 1.059 1.229 803 724 778 1,117 $3,540,270 2.381.477 6.782.663 5.809,134 5,900,707 2.517,755 94.771.530 3.621,380 2.525.411 4.976,841 2.134,688 870.659 2,609,454 1,591.171 662 1.282 2.687 788 676 604 9,952 2.278 1.039 1.024 953 780 688 995 $2,232,930 1.913,801 5,986,558 3.039,229 3,071,281 1.805.700 73.906,285 3.456,871 3,794.386 3.069,044 2,932,587 1.231,325 2.189,722 936,857 24,080 $140,033,140 . 24,408 $109,566,576 1 * Do not report operations. NEW BUILDINGS AND ALTERATIONS 1923 New buildings Permits Oper. Allentown . . . . Altoona ........... Camden .......... H arrisburg . .. Lancaster ....... Philadelphia . . Reading .......... Trenton .......... W illiam sport .. York ................ 61 76 76 60 29 722 76 150 30 68 54 87 79 94 65 29 1,203 87 170 30 68 54 Est. cost $130,150 175,153 707,825 1,110,477 417,950 7.595,920 214,950 550.402 39,585 223,393 112,035 1922 Alterations Perm its Oper. 29 87 67 9 38 624 187 26 50 27 67 Est. cost 29 87 69 13 38 645 187 28 50 27 67 but weaker than in the corresponding period of 1922. Orders in the majority of cases are for delivery within 60 days, and in a few instances for delivery in 90 days. Several manufacturers and dealers state that prices are weak in some of the middle and lower grades and that a further reduction in quotations has occurred since last month. Hardwood prices have suffered no further decline, as hardwoods continue to be in good demand for floorings. Spruce is also steady in price, although inactive. One manufacturer states that his industrial customers are buying only for immediate needs, but that inquiries have been increasing inci dental to the resumption of fall buying. New buildings Permits Oper. $26,700 64 22,914 48 38,902 53 20,800 • 67 22.495 40 650,360 685 114.300 82 122 44.013 16,005 65 21 185 44 15,293 Alterations Est. cost Permits Oper. Est. cost 81 48 62 87 40 1,497 90 135 65 $393,080 198.270 264.490 230,240 407.825 10,157,145 585,875 306.803 143.968 25 81 50 14 18 664 217 19 53 25 81 50 15 18 697 217 19 53 $21,200 28.594 41,115 21.025 8,700 788,685 104.400 24.285 15.708 44 83,365 76 76 65,378 Manufacturer’s stocks are reported to be from moder ate to heavy, which is also the case with most dealers. Cancellations and postponements of shipments are in frequent, and individual orders are somewhat smaller than is usual at this time of the year, which tends to support the view expressed by some that buyers are holding off. Several mills are operating at capacity, the average of operations in this district being about 85 per cent. The supply of both skilled and unskilled labor is said to be adequate, and in a few cases even plentiful. Collections in the main are fair. Little change has occurred since last month, but they are spoken of as being less satisfactory than at this time last year. J 923 T hird F ederal Demand for glass is reported as being from fair to good, with sales approximating those of last month. The opinion is general that it is in excess G lass of the demand at this time last year and is comparable in some cases to that of this spring. Most orders being booked are for delivery within 60 days, although some are for beyond the 90day period. Prices, while regarded as fairly firm, are still maintained at the levels quoted last month. Some shading of quotations was in evidence in an effort to bring out early fall purchases, but the tendency of buyers seems to be to await further price reductions before placing extensive orders. Stocks of finished goods are light, and supplies of raw materials are both light and stationary. Very few requests for cancellations or postpone ments of shipments are noted, and the individual order is somewhat larger than is usual at this time of the year. Factories are operating at from 65 to 100 per cent of capacity, which is practically the same as last month. Orders remaining to be filled, it is claimed, will insure the maintenance of this rate of production for from three to six months. Ih e supply of skilled labor, though sufficient in most cases, is not plentiful, but unskilled workmen are easily obtained. Collections are fair. Some firms report a seasonal slowing up owing to the absence of executives from their offices during the vacation period, but no appreciable change is noted over collections of either last month or last year. Paint and varnish manufacturers report a good sea sonal business, although the opinion is expressed that fall buying is unusually late in getting well P a in t started. Demand has increased since last month, however, and sales are in excess of those of this time last year, in one instance by as much as 25 per cent. No important change is observed in the size of orders usually received at this time of the year, and very few postponements of shipments or cancella tions are recorded. Delivery is, in most cases, requested within 60 days, although in some instances immediate shipment is specified. During the latter part of August some price cutting was noted in dry colors, and early in September pig lead advanced slightly; but these factors were not of sufficient moment to affect the prices of finished stock. Consequently, quotations are reported as generally strong, and have changed but little since last month. Manufacturers report only moderate supplies of fin ished goods and raw materials on hand, as they prefer not to become heavily stocked until the extent of the fall demand becomes more apparent. Some increase in operation has occurred, the average rate among firms reporting to us being about 83 per cent of capacity, which is 8 per cent greater than last month's average, f he supply of both skilled and unskilled labor con tinues to be sufficient. R e s e r v e D i s t r i c t 17 Collections are only fair and are somewhat slower than they were both last month and last year. Manufacturers of gas and electric fixtures report a good demand, and sales are larger not only than they were a month ago, but than at G as an d elec this time last year. The majority tric fixtures of orders are for delivery within the next sixty days, but in certain cases shipments are to be made after that period. Some firms have sufficient orders on the books to warrant operations at the present capacity for two or three months. No reports are made of cancellations or of postponement of shipments. Prices have been steady and show little change since last month. Finished stocks are said to be either light or moderate and are stationary in tendency. Supplies of raw materials are not large. Operations are about the same as they were last month, and unskilled labor is in sufficient supply. Sev eral manufacturers, however, find difficulty in obtaining skilled labor. Collections are rather unsatisfactory, and although they show little change since our last report, they are said to be slower than they were a year ago. REAL E ST A T E Real estate dealers report a good demand for houses of low rentals, and in Philadelphia a healthy demand for those renting up to $80. In fact, the supply of houses that rent at less than $50 or $60 is said to be inadequate to meet present needs, but the supply of apartments is sufficient. Rents have changed but little since last year, but sale prices are somewhat higher. The supply of offices and commercial buildings is adequate, and in general rents are unchanged. There is a great call for houses selling at less than $10,000. Few of the houses being built are for renting pur poses, the majority being for operative builders, and in some cases for owners. Construction costs, although somewhat lower than they were in the spring, are higher than they were a year ago, and in a few instances prospective operations have been postponed because of increased costs. It is said, however, that both labor and materials are more easily obtainable than they were earlier in the year. In most cases builders are able to finance their opera tions, but because of the size and number of opera tions, mortgage funds are not plentiful. Buyers of houses are in some instances finding it difficult to finance their purchases, as building and loan associa tions have in many cases loaned all their available funds. Trust companies are lending from 50 to 60 per cent of the value of houses, as set by their own apprais ers, which, however, is somewhat less than the selling price. The prevailing interest rate is 6 per cent, and although practically no trust companies are charging commissions, mortgage brokers are asking from 2 to 5 per cent on first mortgages and from 5 per cent upward i8 T he B u s i n e s s on second mortgages. Certain banks are lending to individual owners, but probably the majority are financing operative builders. IRO N AND ST E E L Most divisions of the iron and steel industry report only fair business since the middle of August. It was generallv expected that there would be a considerable quickening following the hot season, but so far the looked-for improvement has not come. For a short time around the first of September, pig iron showed increased activity, largely because of the possibility of higher coke prices caused by the anthracite strike, but sales again fell off and are now only fair. Foun dries are buying moderate supplies, but other con sumers are purchasing conservatively. In iron and steel castings the situation is somewhat better, although with these, too. activity is irregular. Sales are being made to street car builders, coal companies, and miscellaneous industries, depending upon the location of the foun dries. Iron bars are in only fair request, railroads and locomotive works being the most active buyers. The call for plates and shapes is moderate and shows little change. Makers of machinery and tools as a rule are receiving a fair amount of business, as are manufac turers of light and heavy hardware. Activity with manufacturers of miscellaneous iron and steel products varies considerably, depending upon the character of the product, but in most cases it is fair. Unfilled orders of the United States Steel Corporation declined for the fifth consecutive month, the 5,414,663 tons reported on August 31 being 496,100 less than the figure on July 31. Reduction in operating schedules has continued dur ing the month, and it appears that this slackening, which at first was considered largely seasonal, is partly due to a decrease in demand. Evidence of the curtail ment is found in production figures for August. The output of pig iron was 3,435,313 gross tons, as against 3.678,334 tons in July. The number of furnaces in blast on September 1 was 270, as compared with 298 on August 1. a loss of 28. In this district nine furnaces were blown out. leaving 37 active at the end of August. The estimated total output of steel ingots in August was 6,679.441 tons, or 165,200 tons more than the re vised figure for July. But when the number of working days is taken into consideration, it is evident that the daily rate was lower. In fact, the estimated daily pro duction was the smallest of any month during the cur rent year. The average percentage of operations in the various lines of the iron and steel industry is about 80. which figure reflects a certain amount of curtailment. Very few reports are made of scarcity of unskilled labor, but in some instances manufacturers find difficulty in obtaining skilled workers. In 36 foundries and machine R O ctober e v i e w shops in this district the number of employees was 2.6 per cent less in August than in July, and the total pay roll declined 3.6 per cent. During the same period there was a decline of 1.7 per cent in employment and of 3.5 per cent in the payroll total in 31 plants manufacturing miscellaneous iron and steel products. Prices of finished steel have been practically un changed since last month, but some grades of pig iron have advanced slightly. Philadelphia 2 X pig iron, which on September 4 was quoted at $26, furnace, or $1 above the price prevailing during the middle of August, fell off 50 cents a ton following the settlement of the anthracite strike, and is now listed at $25.50. The accompanying chart shows the weekly composite price on several grades of pig iron and on various fin ished steel products. It will be noted that although pig iron has declined approximately 20 per cent since May 1, quotations on finished steel have been relatively stable. Although prices of pig iron have been declining since May and are now over 20 per cent below the quotations in the spring, steel prices have been relatively stable Source—Iron Age Collections throughout the industry are fair, and show little change since last month. COAL On September 8 representatives of the anthracite miners and operators, meeting at Harrisburg, accepted Governor PinchoFs peace proposal. A n th racite and on September 17 the agreement was ratified bv the miners at a meet ing of the Tri-District Convention. On September 19. the men returned to work, and the new contract was signed to remain in force until August 31, 1925. This document embodies the four points of the Governor’s proposal, which were the eight-hour day, a 10 per cent wage increase for all classes of mine workers, permis sion for the union to have a collector of dues and assess- ! 923 T hird F e der al nients at the pay window, and recognition of the prin ciple of collective bargaining. Provision was also made for the Board of Conciliation to conduct a thorough investigation into the alleged inequalities of the present 'cage scale and to make revisions if and wherever necessary. I he demand for domestic sizes was good up to Sep tember 1 and became insistent after that date on ac count of the strike. But with the ending of the trouble the market became easier, especially in steam sizes. In cases where facilities for stocking were available, the supply of steam size coal at the mines is heavy, and up to the time of the strike was increasing. Prices were firm and unchanged until the first of September, after which date quotations were entirely nominal. On September 23, however, new quotations were issued, showing an advance of about 11 per cent on domestic sizes. Company quotations on stove coal, which, until the strike, had ranged from $8.15 to $8.35, f.o.b. mines, were advanced to from $9.05 to $9.25. Production, of course, is greatly below normal, oper ations up to September 19 being confined solely to river dredging and washing. The output for the week end ing September 8 is estimated at approximately 5,000 net tons, as compared with 1,893,000 net tons in the previous week. The following table shows the esti mated output for the last three weeks and for the cor responding three weeks of last year. The decreased production of 1922 was due to a strike. Week ending August 25 ...................... September 1 .................. September 8 .................. 1923 2,165,000 net tons 1,893,000 “ “ 5,000 “ “ 1922 37,000 net tons 37.000 “ “ 51,000 “ “ No labor disturbances of any kind were reported in the anthracite fields during the period of inactivity. Little improvement has occurred in the market for bituminous coal in this district since the middle of August, but for a short period, while B itu m in o u s the outcome of the anthracite strike was in doubt, some sales were made for domestic purposes. The bulk of sales are in the spot market, in which prices are from 50 cents to $1 below contract quotations. Of the various classes of consumers, railroads appear to be the most active buy ers. In spite of the general dulness, there has been a considerable amount of quiet purchasing, some of which has been going into stocks. In many cases, con sumers are carrying fairly heavy supplies. The De partment of Commerce and the Department of the In terior have made surveys of stocks of bituminous coal at various times during the past three years, the results of which are shown in the accompanying chart. It will be noted that stocks have been increasing steadily since R e s e r v e D i s t r i c t T9 COMMERCIAL STOCKS OF BITUMINOUS COAL M m 10NI L S L I | OF TOMS 1921 1322 1923 Estim ated com m ercial stocks of bitum inous have been increasing since last September. The strike of last year was the cause of the sharp decline in stocks between April and Sep tember, 1922 Sources—Departments of Commerce and Interior last September, and that on August 1 they were more than twice as large as on September 1, 1922. Production has been increasing since the middle of August and in the second week in September was at a higher daily rate than at any time since the first week of 1923, although the total output was less than that of the previous week. This decrease in total tonnage is attributable to the celebration of Labor Day. Esti mated production for the lqst four weeks and for the corresponding period of 1922 was as follows: Week ending August 25 ...................... September 1................. September 8 ..................... September 15................. 1923 11,383,000 net 11,737,000 “ 10,485.000 “ 11,386,000 “ 1922 tons “ “ “ 6,736,000 9,359,000 8,791,000 9.737,000 net “ “ “ tons “ “ “ Operations in this district average about 65 per cent of capacity, and although some reports are made of shortage of miners, the labor supply in general is ade quate. Prices have been practically unchanged during the month, but certain grades are slightly lower. Pool 10 coal, for delivery in Philadelphia, is quoted at from $2.00 to $2.35 a ton, f.o.b. mine, as compared with from $2.10 to $2.50 a month ago. With the advent of the anthracite strike, the demand for coke for both foundry and domestic use increased. as was to be expected. Contract prices of Coke Connellsville coke advanced to $5.00 and even $5.50 per ton. The settlement of the strike, however, quieted the market, and this, together with the blowing out of a considerable number of blast furnaces, has caused prices to recede. Present quota tions for some fourth quarter contracts are $5 per ton 20 T he B u s i n e s s for beehive coke and from $6.25 to $6.50 per ton for the better foundry grades. On September 12, spot furnace coke was quoted at $4.50 per ton, as compared with $5.00 per ton of the previous week, and spot quota tions for foundry grade were $5.75 per ton, or 25 cents less than in the week before. Production of beehive coke has continued to decline, as is shown in the table below. The figures indicate the estimated output for the last four weeks. Week ending 1923 August 25 .................. September 1................. September 8.............. September 15.................. 1922 327,000 net tons 322,000 “ “ 345,000 “ “ 317,000 “ “ 116,000 net tons 138,000 “ “ 137,000 “ “ 124,000 “ “ O ILS The refinery demand for Pennsylvania crude oils is considerably lighter in many cases than it was a year ago. Shipments of California oil to this section have been rather heavy during recent months, and this, com bined with the heavy production both in California and in the mid-continent field, has tended to reduce demand for Pennsylvania crude oil. As a result, producers’ stocks in several instances are heavier than they were a year ago and are increasing. During the first six months of this year production has run slightly ahead of that for the corresponding period of 1922, as is shown in the accompanying table. Since May, how ever, output has been less than it was a year ago. Pennsylvania Crude Oil 1923 January ................................ February .............................. March .................................. A p r i l ........ .......................... May ........................................ June ...................................... July ........................................ 1922 635,000 Bbls.* 506,000 “ 643,000 “ 629,000 “ 673,000 “ 629,000 “ 616,000 “ Total for first six months. 4,331,000 “ 541,000 Bbls. 559,000 “ 630,000 “ 598,000 “ 661,000 “ 639,000 “ 622,000 “ 4,250,000 O ctober e v i e w CO TTON During the past two seasons the world’s consump tion of American cotton has greatly exceeded the production. Consequently, world stocks of Kaw American cotton have been materially co on reclU Ced, having declined from 9,351,000 bales on August 1, 1921, to 3,100,000 bales on the same date in 1923. Therefore, it was important that a heavy crop of cotton be produced this year, and plantings in 1923 were the largest in the history of the country. But drought in the Southwest, excessive moisture in the states east of the Mississippi, and insect depreda tions have greatly damaged the crop. The condition on August 25 was reported by the De partment of Agriculture to be 54.1 per cent of normal, representing a decrease of 13.1 per cent from the July 25 figure, as compared with an average decline of 8.9 per cent during similar periods in the past ten years. With the exception of 1921, this condition is the lowest on record for that date. And assuming an average yield per acre of 134.8 pounds of lint, the Department pre dicted a crop of only 10,788,000 bales. Moreover, since August 25, in spite of the fact that the drought in the Southwest has been effectively broken, the weather has been generally unfavorable through most of the cotton belt. Heavy rains in Texas and Oklahoma, following the drought, have threatened the crop in those states. As a result the demand for raw cotton has been greatly stimulated, and spot sales, especially in Texas, have been large. Sales of cotton goods, too, which began to improve in August, showed a decided gain during September. On August 24 the total world’s takings of American cotton were 43.6 per cent smaller in 1923 than in 1922, but on September 21 they were only 39.3 per cent smaller as is shown by the following table. Exports from July 31 to September 21, as esti mated by the New York Cotton Exchange, were 28 per cent larger in 1923 than in 1922. As a result of these conditions, raw cotton prices have risen sharply during the past month, from 25.45 Supply and takings of Am erican cotton* “ * Barrels of 42 United States gallons. Several price changes have occurred since May 1, at which time Pennsylvania crudes, with the exception of Bradford-Allegheny oils, which were quoted at $4.00, were listed at $3.75 a barrel. Reductions of 25 cents a barrel were made on May 3, May 11, June 18, and July 10. The present quotations, therefore, are $3 for Allegheny oils, and $2.75 for other Pennsylvania grades. There is a good demand for some refined products, and prices are fairly firm. Tank wagon quotations on gasoline range from 17 to 19 cents a gallon in this dis trict, as against 17 to 20 cents a month ago. R In bales Season of Season of Season of 1923-1924 1922-1923 1921-1922 Visible supply, American, at end o f previous season (Ju ly 31) 869,968 1,968,159 4,112,651 Crop in sight, American, on September 21 ............................ 1,487,389 1,556,359 1,463,208 Total ............................................ 2,357,357 3,524,518 5,575,859 Visible supply, American, on September 21 ............................ 1,429,088 1,995,653 3,777,579 W orld’s takings of American to September 21 ............................ 928,269 1,528,865 1,798,280 * Figures compiled by New York Cotton Exchange. T L9 2 3 h i r d F e d e r a l cents per pound for spot middling on August 24 to 30.75 cents per pound on September 19. As compared with 22.45 cents per pound, which was the lowest point reached by spot cotton this year, quotations have risen about 35 per cent. That raw cotton values during 1923 have been comparatively high may he seen by the following chart, which shows the trend of spot cotton prices since 1911. In March of this year quotations reached the highest point since September, 1920. And although they decreased during the succeeding four months, excepting June, raw cotton values have recovered much of the ground lost bv the decline. S IL K , WOOL AND COTTON PRICES (DOLLARS Except for the sharp break in 1920, the trend of raw silk, wool, and cotton prices since 1911 has been upward. The fluctuations of raw silk and raw cotton prices show striking sim ilarity Sources— Journal of Commerce, Textile World and Silk Association of America This sharp advance in price has occurred in spite of the fact that cotton ginnings prior to September 1 were large for that time of year. The following table shows the ginnings for Texas and all other states during the past 4 years. It may he seen that the ginnings for Texas were abnormally large, but that the returns from the remaining states were smaller than in 1921 or 1022. This indicates that the crop in the former state is early and that in most other states it is late. R e s e r v e bales 1923 21 increase in demand and the advance in quotations. Larger sales in September have been mainly due to seasonal influ ences and to the sharp rise in raw cotton following the publication of the Government report on September 1. Gray goods, and to a lesser extent finished goods, have shared in the improvement. However, the demand for tapestry has continued to be poor, and draperies are reported to be in only fair request. Sales of towels have increased somewhat, but the demand is still weak and buying is mainly for immediate requirements. Manufacturers state that southern competition is keen, especially on the lower grades of towels. On Septem ber 18 quotations on ginghams for the spring of 1924 were named by the largest factor and were substan tially the same as those for the spring season of 1923. The trend of prices during the month has been up ward, and advances have been especially noticeable on gray goods. But quotations on raw cotton have in creased relatively more than those on cotton goods. Whereas the former were advanced about 35 per cent from the low point reached on July 31, quotations of print cloths on September 22 were only from 21 to 22 per cent higher than they were during the early part of August. Production schedules of some mills have been in creased from 5 to 20 per cent, and many plants in this district are now operating at from 60 to 90 per cent of capacity. At the present rate of production, unfilled orders will insure operations for from 10 to 90 days. Stocks of finished goods in the hands of producers are moderate and are either stationary or increasing, but stocks of raw material range from moderate to heavy and are either stationary or decreasing. The improvement in the cotton goods industry is reflected in statistics of employment. Reports of 17 manufacturers in this district show that from July to August employment increased 21.9 per cent. Although the supply of labor has in most cases been sufficient, some producers state that skilled help is scarce. Wages of the latter were raised about 8 to 10 per cent early in September by many tapestry mills. Collections show little change since last month, and in the majority of instances are only fair. WOOL 1922 1921 1920 I exas .......................... AH other States . . . . 1,088.072 53,265 564.957 241,232 414,616 71,171 329,457 22,132 Total ........................ 1,141,337 806,189 485,787 351.589 * Department of Commerce. The most important features of the cotton goods niarket during the past month have been the decided i s t r i c t Cotton goods Cotton ginned prior to Septem ber 1* In running D An increase in the demand for raw wool during the past month has been reported by dealers in the Phila delphia market. Buying has not as vet assumed large proportions, but a better feeling is noticeable in the trade. Seasonal factors and the strength of wool displayed at foreign auctions are believed to be largely responsible for the improvement. Owing to the vogue of brushed knit goods, low quarter blood wools have been in better request, and some dealers report that sales of “ B ” pulled wools and noils have also increased. Raw wool T he B u s i n e s s R eview 22 Prices of wool in the local market, which concessions had rendered weak and irregular, have become steadier as a result of the increased demand. The chart on page 21, representing the average monthly quotations of fine medium Montana wool, shows that since 1911 the trend of prices has been upward. Although, values have declined somewhat from the levels reached earlier thii. year, they are still comparatively high. As shown by the accompanying chart, the consump tion of wool in the United States has more than trebled during the past 60 years. Owing to the unusual war time needs, the consumption was especially heavy from 1916 to 1920. On the other hand, the domestic produc tion of wool increased but slightly from 1881 to 1909, and since that date has decreased. As a result, the pro portion of foreign wool consumed in the United States has risen sharply since 1890. From 1915 to 1923, with the single exception of 1922, this country has consumed a larger percentage of foreign wool than of domestic. Dom estic production of wool has not substantially changed in 40 years, but consum ption has increased greatly and was especially heavy from 1916 to 1920. Consequently, the im ports of foreign wool have grown steadily. Figures are for fiscal years ending June 30 Source— United States Tariff Commission During the past month 'woolen and worsted yarns, which have been in poor request, showed only a slight improvement in demand, Woolen a n d but spinners are more optimistic. w orsted y arn s Since the buying of yarns has for some time been mainly from hand to mouth, spinners feel that any appreciable increase in the call for woolen and worsted goods will be reflected in a better demand for yarns. Moreover, raw wool has displayed consider able strength at the London sales. Because of the good request for brushed wool sweaters and scarfs, sales of knitting yarns of the lower grades have increased. The demand for hand-knitting yarns has also improved somewhat. However, the poor response of buyers at the openings of spring goods has prevented manu facturers from knowing what their yarn specifications O c to ber for the light-weight season will be, and consequently weaving yarns have been in dull request. Most of the business on the books is for delivery within 60 days. A few spinners are operating at or near capacity, but many mills have curtailed production and are running only from one half to three quarters of their equipment. This curtailment of operations has largely prevented the accumulation of stocks of yarn, which are reported to be either light or moderate. The supply of labor has been sufficient. Wool consumption in this district, as reported by 81 establishments, decreased 10.93 per cent in August from the July figure. Prices have continued weak during the past month, and some spinners have reduced them in order to stimu late demand. But the majority state that quotations have not been changed. Collections are fair. Although some producers of woolen and worsted goods report that the demand has increased during the past month, business in general is Woolen a n d still only fair or poor, and orders w orsted goods are much smaller than is usual at this period of the year. Nearly all of the openings of light-weight fabrics have been held, but the response of buyers, especially of buyers of men’s wear, was for the most part unsatisfactory.- Some lines of dress goods, however, sold fairly well. The desire of buyers for something different has led many manufacturers of women’s wear to show new kinds of fabrics for spring. Novelties such as camel’s hair cloth are reported to be in better demand than staples, and substantial orders for the former have been placed. Fall business in both men's wear and dress goods has continued to be mainly from hand to mouth. Producers of women’s cloakings state that the demand for bolivias for fall and winter wear has fallen off decidedly, and in some cases can cellations for large quantities have been received. Because of the lack of orders, many mills are run ning less than half their equipment. Although some exceptionally fortunate plants are operating at or near capacity, the average for this district is about 50 per cent. The curtailment that has occurred in the ma jority of mills has been sufficient to prevent large accu mulations of finished goods. However, production in a number of cases has exceeded the demand, and stocks in those instances are moderately heavy. In order to move stocks, some firms are reported to have made concessions. But as compared with a month ago, prices of fall goods, though weak, have for the most part re mained unchanged. Higher costs have made it neces sary to advance quotations on spring goods over those of last year. Curtailment of operations in the woolen and worsted industry has been reflected in statistics of wages and employment. Reports from 25 manufacturers in this district show that employment decreased 2.2 per cent from July to August and that average weekly earnings decreased 2.9 per cent during the same period. Labor, : 923 T h i r d F e d e r a l R e s e r v e D i s t r i c t 23 both skilled and unskilled, is now reported to be suffi cient or plentiful. Collections show little change since last month. SILK As a result of the disaster in Japan, unsettled condi tions have prevailed in the raw silk trade during the _ past three weeks. At the opening of the K<silk R ew York market on September 4, most of the importers and dealers refused to make cpiotations. But in some cases spot sales were made at large increases in price. On September 5 the Raw Silk Trade Council voted to suspend all opera tions in Japanese silks until September 11, and this date was later extended by recommendation of the same body. Consequently, until trading in Japanese silks was resumed, business was restricted mainly to Chinese and Italian silks, although a few sales of the former were also made at prices ranging from $11.50 to $12.00 per pound for Kansai double extra cracks. On September 17, the Raw Silk Trade Council de cided that operations in Japanese silks should be re newed according to the individual judgment of each trader. But many of them preferred to remain in active because of inadequate information as to the ex tent of damage to the raw silk industry in Japan. How ever, some sales were made on a basis of $11.25 to $11.50 per pound for Kansai double extra cracks, and although prices declined somewhat they were on Sep tember 22, about 35 per cent higher than those quoted before the disaster. Prices of Chinese and Italian silks have moved in sympathy with those of Japanese silks. As yet, the extent of damage to Japan's raw silk industry has not been definitely determined. The first authentic information was received by the Silk Asso ciation of America, which on September 15 announced that only 28,000 bales of raw silk had been destroyed. But three days later a cable from Ambassador Woods at Tokio was received by the Department of Commerce which estimated the destruction of silk in Yokohama at 42,000 bales and the number saved at about 8,000. The cable also stated that the filatures were practically un damaged and that brokers in Japan anticipate shipping silk from Kobe in the near future. The importance of Japan to the silk industry in this country is shown by the accompanying chart. Of the total raw silk imported into the United States during the past ten fiscal years, Japan supplied from 70 to 80 per cent. Imports from China were next in size, and “other countries” furnished only a very small pro portion of the Jotal. The latter was especially true in 1917, 1918, and 1919. In 1922-23, however, although total imports of raw silk increased 9.3 per cent over those of the preceding year, imports from Japan de creased slightly. Although stocks of raw silk on hand in American warehouses increased somewhat during August, they The great part of raw silk imported into this country has com e from Japan and China. Im ports were especially heavy in 1921-22 and 1922-23, but were sm all in 1920-21 because of business depression in that year. Figures are for fiscal years ending June 30 Source—Department of Commerce were comparatively small on September 1. as shown by the following table. But imports during August were greater than during any 'month since October, 1922, and deliveries to mills also increased. Silk im ports, stocks and deliveries to American mills* - In bales Imports during Rionth Deliveries Storage at to American end of mills month 1923 : August ................................ July ...................................... Tune ..................................... May ...................................... March .................................. January .............................. 36,092 25,622 23,727 25,814 28,336 32,593 33,547 28,573 27,824 24,509 33,515 34,680 25,865 29,962 ‘ 39,436 47,087 1922: August ................................ July ...................................... June ............................. ....... M ay ...................................... March .................................. January .............................. 39,813 25,575 35,598 34,842 19,746 40,177 34,772 24,996 29,529 33,284 26,651 33,842 32,515 27,474 26,895 20,826 22,077 31,139 1921: August .................... July ...................................... 34,590 36,107 33,557 33,762 18,899 17,866 1920: August ............................ July .................................. 17,966 17,272 19,101 10,846 25 459 22,914 1 1 51,130 52,265 * Silk Association of America. Higher prices of raw silk, resulting from the earth quake in Japan, have caused a sharp advance in quotations on pure thrown silk. On September “ 20 prices of Japan double extra organzine were about 35 per cent higher than they were before the disaster. But although some throwsters T 24 he B u s i n e s s report a good request for spot goods, others state that the demand is only fair or poor. Many manufacturers have preferred to wait until conditions in the raw silk market become more stable, and meanwhile are buying pure thrown silk only for immediate needs. However, the call for artificial silk and for silk and fibre mixtures is reported to have strengthened de cidedly during the past month. Because of their in creasing use and their comparatively low price, the demand for these yarns has steadily grown. Operations in this district vary widely. Whereas some throwsters are running less than one half of their equipment, others are operating at about three fourths of capacity. Stocks of both finished goods and raw materials are fairly light and are decreasing. In most instances the supply of labor is adequate. Collections are fairly good. Conditions in the silk goods industry, like those in the raw and thrown silk trades, have been considerably upset, as a result of the disaster in Japan, j The demand for silk fabrics had in many ® cases begun to improve during the latter part of August, and after news of the catastrophe had reached this country, buyers attempted to place large orders. But because of uncertainty as to price and as to their ability to secure supplies of the raw material, manufacturers refused to accept any large amount of business and as a rule have taken only small orders from their old customers for early delivery. A number of producers state that although crepes of all kinds con tinue in good request, satins, especially satin-faced goods, are increasing in popularity. During the past month the majority of producers in this district have operated from 70 to 90 per cent of their equipment. Stocks of raw material are decreasing and in general are fairly light, some plants having on hand little more than a month’s supply. Stocks of fin ished goods are moderate and are either stationary or decreasing. About one half of the manufacturers re porting to this bank state that skilled help is scarce, but that unskilled labor is adequate. Prices of broad silks, which last month were for the most part weak, are now strong, and many producers have advanced them. The increases in some cases range from 10 to 20 per cent. Collections are fairly good. HOSIER Y The uncertainty in the silk situation, caused by the calamity in Japan, outweighs all other considerations in the hosiery business at present. Since the disaster, quotations on Japanese raw silk until September 17 were in many cases nominal; small quantities could be bought, but only at about 40 per cent above former prices. After the re-opening of the market on that date a few traders were willing to operate and prices de clined slightly from the peak. Many manufacturers of silk hosiery who withdrew their product from the mar R O cto ber e v i e w ket, pending developments, re-opened them, but their prices varied considerably. One of the leading manu facturers, whose output was sold until the end of the year, has advised his customers that he will fulfill his contracts, and many other producers also hope to be able to make their stated deliveries. It is known, how ever, that mills have fair stocks of hosiery, and there fore it is hoped that an acute shortage will be averted. As of July 31, the Department of Commerce makes the following report of finished hosiery in the mills : Men’s full-fashioned .......................... 52,$25 dozens o f pairs Men’s seamless .................................... 2,159,241 “ Women’s full-fashioned .................. 751.919 “ Women’s seamless .............................. 2,419,267 552,147 Boys’ and m isses’—all styles ............ Children’s and infants’—all styles .. 789,213 Athletic and sporting—all styles . . . . 38,178 “ 6,763,091 “ “ “ In this report no account is taken of merchandise in process of manufacture. Although it is not possible to state definitely how many of the above number are of silk, it may be said that about 80 per cent of both men’s and women’s full-fashioned hosiery produced is of silk, and that a considerable percentage of seamless is un doubtedly made of the same material. Stocks in the hands of wholesalers and retailers are not known, but are thought to be of usual size. The demand for silk hosiery since the Japanese catastrophe, however, has not been abnormally large. HOSIERY INDUSTRY Third Federal Reserve District In terms of dozens of pairs F irm s sellin g to th e w h olesale tra d e : Number of reporting firms—29 Product m anufactured during month .............................................. Finished product on hand at end of month ............ .......................... Orders booked during month . . . . Cancellations received during month .............................................. Shipments during month .............. Unfilled orders on hand at end of month ...................................... Aug., 1923 | Aug., 1923 compared with compared with July, 1923 Aug., 1922 ' — 1.4% + 4- 1.1 “ 444.0 “ + 30.6 “ 4 21.1 “ - 4 7 .9 “ — 5.7 “ -1-266.9 “ 4 8 .8 “ — 7.9 “ 4 40.3 “ 4 6.7% 4 4 4 .0 “ 4 .6 “ 4 170“ — 6.5 “ —44.3 “ — 22“ 4 8 .3 “ — 11.6“ — 2.5 “ 4 6.3% F ir m s se llin g to th e re tail tra d e : Number of reporting firms—-11 Product manufactured during month .............................................. Finished product on hand at end of month ...................................... Orders booked during month . . .. Cancellations received during month ............................................. Shipments during month ..............j Unfilled orders on hand at end of month ...................................... j -1% -7“ T (,'23 T h i r d F e d e r a l Various manufacturers report that the demand for hosiery in general is fair: in women’s wear, for silk and fibre mixtures and for mercerized; in men's wear, for silk and fibre mixtures, mercerized, cotton, and wool and fibre mixtures; and in children’s wear, for silk and fibre and for mercerized. The call for infants’ wear has been somewhat disappointing. Because of the ad vance in cotton yarns, some quotations on cotton hosiery have been raised, especially on low end goods. Mercerized yarn advanced about 5 per cent and cotton yarn about 10 per cent. Comparatively little demand has developed for women’s wool mixtures, and as the season is now passing when these should be made, it is apparent that they will be worn much less than they were last year. Several of the largest producers of artificial silk have announced their intention of maintaining prices at the former levels. Some fears had been expressed that quotations would be advanced in sympathy with the price of pure silk. With one or two exceptions, labor is in sufficient sup ply. This confirms our report on page 6, which shows that in the knit goods industry, which includes hosiery, the number of employees decreased 1.4 per cent as compared with July. The average weekly wages also decreased, from $19.55 in July to $18.91 in August. Although collections are said by most firms to be fair, the number reporting them as poor has increased con siderably. The Department of Commerce reports that 305 iden tical establishments, representing 382 mills in June and 384 mills in July, produced 4,224,422 dozens of pairs in June and 3,762,881 in July, a decrease of nearly 11 per cent; and that unfilled orders at the end of the month fell from 9,420,733 dozens of pairs in June to 8,136,673 in July, a loss of over 13 per cent. In the Third Federal Reserve District the reports from hosiery manufac turers, tabulated on page 24, show that production in August, as compared with July, decreased 1.4 per cent in mills selling to the wholesale trade, but increased 6.7 per cent in mills selling to the retail trade. Unfilled orders on August 31, as compared with July 31, de creased 7.9 per cent in wholesale mills and 2.5 per cent in retail mills. UNDERWEAR During the past month a considerable improvement m business has been noted by manufacturers of under wear. Orders for winter weights for late autumn de livery have increased, and both jobbers and retailers are reported to have purchased more freely. The strength ln cotton yarns has undoubtedly been partly responsi ble for this betterment. It has materially lessened the probability of cancellations by retailers, as prices for Underwear are firm and in a few cases advances have R e s e r v e D i s t r i c t been asked. As September is one of the periods of heaviest deliveries, shipments have already been made to and accepted by retailers. In spring weights, too, orders have been in good volume, and a number of large mills making men’s wear have withdrawn from the market. It is not definitely known whether these mills are entirely sold up for the season, or, having sold a large part of their output, prefer to take no more contracts at the old price in view of the advance in cotton yarns. This advance has averaged about 10 per cent during the past four weeks. Mills making women’s wear report a good demand for both vests and union suits, and a few re port that practically their entire output is contracted for. But it is thought that on the whole the sales of women’s wear have not been as good as of men’s wear. Some mills find that sales are not as large as they were at this time in 1922, and give as the reason that a number of buyers have no faith in the present cot ton situation. Nearly all the plants are operating at from 50 to 100 per cent of capacity, and the average of operations is probably about 70 per cent. Stocks of underwear in the mills are reported by the majority to be light. Labor, both skilled and unskilled, is in sufficient supply, and collections are from fair to good. In the following table the reports of firms in the Third Federal Reserve District are summarized: UNDERWEAR INDUSTRY Third Federal Reserve District In terms of dozens Aug., 1923 Aug., 1923 compared with compared with July, 1923 Aug., 1922 Sum m er underwear Number of reporting firms—11 Product manufactured during month ............................................. Finished product on hand at end of month ...................................... O rders booked during month . . . . Cancellations received during month ............................................. Shipments during m o n th .............. Unfilled orders on hand at end of month ...................................... —12.1% + + 2 2 .4 “ — 18.2 “ —12.9 “ +17.5 “ —76.3 “ —22.3 “ —33.3 “ + 2 1 .9 “ + 2 3 .2 “ + 4 8 .3 “ +47.2% +24.5% — 14.5“ + 1 1 .5 “ — 16.2 “ — 13.1 “ + 5 5 .7 “ +36.3 “ —21.4 “ +39.5 “ 9.4% W inter underwear Number of reporting firms—8 Product manufactured during month ............................................. Finished product on hand at end of month ...................................... Orders booked during month . . . . Cancellations received during month ............................................. Shipments during month .............. Unfilled orders on hand at end of month ...................................... 26 T he B u s i n e s s R e v i e w O cto ber pound are in branded cowhides, which had not sold freely until the reduction in price, and in extra-light The approach of the end of the season is, as usual, Texas steers, which are inactive but usually sell at the marked by comparative dulness in floor coverings. same price as branded cows. Manufacturers of carpets and rugs, however, state that Calfskin prices have held firm, and recently advanced conditions are better than they were a month ago. 1 cerw to 18 cents for packer skins. The demand has t Cancellations have ceased, and in a number of cases been so steady that the market has been kept almost requests have been received from buyers to reinstate clear of stock. Goatskins displayed considerable activ their orders; but this, in some instances, it was im ity in late August and early September, but since then possible to do, as the mills had in the meantime sold have become more quiet. Prices are firm in both the these goods elsewhere. New business, too, is larger, foreign and spot markets. Although American tanners and as some of this calls for prompt shipment by ex have operated moderately abroad, many of them prefer press, it appears that stocks in jobbers’ and retailers’ hands are light. Some manufacturers have increased to buy lots now in this country or that are due to arrive their stocks and are able to fill orders promptly; but at an early date. Sheepskins are firm at the present this condition exists almost exclusively in the higher range of prices, which are about 10 per cent below the peak of last spring. The supply, however, is small, and grades. The largest factor has announced an auction sale it is thought that a slight renewal in the demand would to begin on Monday, October 1, and to continue be quickly reflected in values. The slight improvement in the sales of heavy leather throughout that week, at which 87,O X bales, or ap C) noted last month has not continued; sales are small, proximately 260,000 individual carpets and rugs, will the market is dull, and prices for most be offered for sale. Of these, about 25 per cent are L eath er descriptions are barely steady. Shoe said to be fall goods and 75 per cent patterns for the manufacturers continue to buy only for spring of 1924. The goods will be offered for Octo immediate needs, and the finding trade is less active. ber, November, and December delivery. At the same time, this factor will show his full spring line and an Belt makers are buying in fair volume but are not stocking leather. During July, the last month for which nounce prices for delivery after January 1. Manufacturers claim that costs are higher than they figures have been issued, the production of butts was were at the April opening, and that therefore lower 139,775, and as stock in the hands of tanners increased prices are unlikely. This view has recently been about 38,000 during that month, it is clear that over strengthened by the rapid and large advances in the 100,000 butts were sold during July. Stocks of both backs, bends, and sides, and of offal, quotations on cotton yarns. But the buyers reply to sole and belting, increased 2.3 per cent during July and this that present prices have retarded sales; that wool yarns are lower than they were a month ago, and that were heavier than at any time this year. Buyers main tain that in the face of these stocks it would be illthe tone of the market is distinctly easy. advised to purchase except for their immediate needs. Operations in the mills have not increased, and a number of them are working on only part time. Dur The export demand has not increased, and leather mer ing August, as is shown by the table on page 6, em chants who have recently visited Europe report that ployment in carpet and rug mills decreased 3.1 per cent the prospects are poor for an improvement in the call as compared with July. The average weekly wage fell from that quarter in the near future. Upper leathers are somewhat more active than heavy from $25.58 in July to $25.28 in August. Labor is in leathers. For suede the demand continues, but is not sufficient supply. Collections are reported as either so urgent as it was last month, and the supply appears fair or good. to have increased. For patent leather and grain calf a Linoleums in all grades continue in good request, and mills are somewhat behind on deliveries. One good call exists. In grain calf, black is gaining in popu large manufacturer lowered his prices about 5 per cent larity, especially in men’s weights. Except in these in September, but otherwise quotations are unchanged. leathers, however, the volume of business is not large. All the plants in this district are running at capacity. During July, stocks of upper leathers show only the following slight changes: Collections have improved and are good. FLO O R CO VERING S LEA TH ER Packer hides have shown considerable activity, and though early in the month most selections sold at prices H ides a n d ^e^ Previ°us quotations, more recently ow skin s Prices have advanced and in some cases are higher than they were a month ago. The only net declines of more than a half cent per Cattle side, decreased ........................................ 1.0 C alf and kip, d e c re a se d .............................................7 Goat and kid, increased .................................... 1.3 Cabretta, increased ....................................... 1.8 per “ “ “ cent “ “ “ Sheep leather for chamois is meeting with a ready sale, but for hat leather the demand has decreased con siderably ; and for bag leather, in the form of skivers, the volume of sales has been small, but is now begin ning to increase. J 923 T h i r d F e d e r a l Harness leathers are dull, and some manufacturers state that the main cause of this is the sale of surplus stocks by the United States Government at prices below the cost of production. Leather goods are active, and sales are exceeding those of a year ago. Ladies’ cases are in particularly good request, and some manufacturers report that they have sufficient orders booked to take care of their out put for the balance of the year. Sales of travelers’ lug gage are fully equal to those of the corresponding period in 1922. Bags and suit cases are in fair demand at about last year’s prices, and trunks are selling well. Owing to the advance in the prices of bass-wood and hardware and to the higher labor cost, quotations on trunks are from 10 to 15 per cent higher than they were a year ago. The supply of labor in the leather industry is suffi cient, and as is shown by the table on page 6. employ ment in this trade decreased 4.7 per cent in August as compared with July. The average weekly wage was lower, too, and stood at $23.85 in August, as against $24.59 in July. Collections in some lines are said to be slower. Firms selling in the oil districts, such as Oklahoma, state that accounts are noticeably slow. And in many parts of the country firms are allowing their bills to run to maturity instead of discounting them as has been usual. Very few shoe manufacturers in this district are able to obtain orders except for prompt shipment. The volume of daily sales, however, is fair, and Shoes the rate of production, which increased in August, appears to have been maintained since then. Shoe salesmen are out on the road and re port that there is a fair business for early shipment but little inclination to buy ahead. The demand for staple shoes is relatively small, and this applies to women's, misses’, growing girls’, and small children’s lines. In this connection it should be of interest to note that, at the convention of New York State Shoe Retailers held in September, a motion was introduced by the resolutions committee which after reciting at considerable length the difficulties of manu facturers, jobbers and retailers of shoes caused by the rapid changing of styles, recommended ‘‘that the Na tional Association of Tanners, Shoe Manufacturers, Wholesalers and Retailers, unite in efforts and counsel to devise some effective plan whereby a reasonable ele ment of style, stability and control, may be re-estab lished in the shoe industry.” hor women’s shoes, suede leather is easily the lead ing material, although it is doubtful whether the per centage of shoes made of it in recent orders is as large as it was last month. Patent, grain calf, and mat kid leathers all figure in the orders. Satin, too, is Popular. These materials are called for in low cuts with straps or with gores. For children a bewilder ing assortment of colors and leathers is shown in com R e s e r v e D 27 i s t r i c t bination. Patent and calf leathers, however, predomi nate. Prices for shoes are generally unchanged, but on satin pumps higher quotations are made because of the advance in the price of satin brought about by the disaster in Japan. In July, in part because of the annual holidays, pro duction in this country fell to 25,120,728 pairs, as com pared with 28,187,973 in June. Production for the first seven months of this year, however, was more than 18 per cent greater than in the corresponding period of 1922, and was more than 10 per cent greater in July than in July, 1922. Labor, in nearly all cases, is reported to be in suffi cient supply. The table published on page 6 shows that employment in this district in the boot and shoe industry decreased 3.2 per cent in August as compared with July, and that the individual wage also fell from $17.47 to $15.59 in the same period. Collections in an increased number of cases are re ported as slow, but by many are said to be fair. The following table, compiled from the reports of firms in the Third Federal Reserve District, shows that produc tion in August was 14.6 per cent larger than in July. BOOT AND SHOE INDUSTRY Third Federal Reserve District Number of reporting firms—33 (in terms of pairs) Product manufactured during month Shipments during month .................. Orders booked during m o n th .......... Orders on hand at end of m onth . . . . Cancellations received during month Stocks (unsold) on hand at end of month ................................................. Aug., 1923 Aug., 1923 compared with compared with Aug., 1922 July, 1923 + 14.6% + 4 1 .8 “ — 14.5“ — 19.6 “ + 1 5 .0 “ —7.4 “ +21.8% + 19.2 “ —20.5 “ + 18.4“ + 9 8 .4 “ + 1.0“ Wholesale sales of shoes are in good volume; the demand, however, in nearly all cases is for prompt ship ment. From the table on page 12 it will be seen that sales in August were larger by 50.7 per cent than in July, and by 32.1 per cent than in August, 1922. Retail shoe sales during September have been in creasing and according to preliminary reports promise to be larger than in September of last year. The early advent of the Hebrew holidays this year is believed to be the cause of the comparatively light business at that time, but the subsequent cool weather has stimulated buying considerably. The following table shows that sales by reporting firms in August decreased as usual and were 7.9 per cent smaller than in July. Compared with those of August, 1922, however, they increased 11.6 per cent. Stocks at the end of August were larger T i- e i 28 B u s i n e s s than they were a month previous, but smaller than at the corresponding time in 1922. RETAIL SHOE TRADE Third Federal Reserve D istrict (In terms o f dollars) 1. N et sales: (a ) Aug., 1923, as compared with July, 1 9 2 3 .... (b ) Aug., 1923, as compared with Aug., 1 922... (c) July 1 to Aug. 31, 1923, as compared with July 1 to Aug. 31, 1922.......................... — 7.9% + 1 1 .6 “ + 6 .8 “ 2. Stocks (selling price): (a ) Aug., 1923, as compared with July, 1923 . . . . (b ) Aug., 1923, as compared with Aug., 1922 .. + 1 1 .7 % — 4 .9 “ 3. Rate of turnover (tim es per year based on cum ulative period): (a ) July 1 to Aug. 31, 1923 .................................. (b ) July 1 to Aug. 31, 1922 .................................. 2.7% 2.3 “ Number of stores reporting above item s: 1.................. 21 2 and 3 .................. 19 PAPER Since Labor Day there has been some improvement in the call for paper, but manufacturers and whole salers alike state that buying has not been as heavv as was expected, and that on the whole the demand is still only fair. Paper mills report that the orders booked this month were smaller than those received in September, 1922, but larger than those booked last month. Some improvement as compared with August has been noted by makers of book paper, and plant operations are now at about 75 per cent of capacity. Wrapping paper producers also report an increase in demand, but orders are not yet sufficient to take their entire output, and consequently mill stocks are accumu lating. Mills making tag stocks and manilas are operating at only about 65 per cent, because of rather small purchases by tag makers. Boxboard manufac turers report only a fair demand, especially for news and chip boards, and some closed their plants for a week early in the month. Wall paper mills, however, are seasonally very busy and are operating at capacity or overtime. One large manufacturer of wall paper states that the orders on the books on September 1 were 50 per cent greater than on the same date last year. The call for envelopes is heavier than it was last month, and envelope factories are operating at about 70 per cent. Tissues and coarse krafts are still in light request, and mills making these grades are running at only about 60 per cent. Practically all of the orders received by the mills are for prompt ship ment. Paper wholesalers report that their sales this month are larger than those in August, particularly on R e v i e w O cto ber the book grades, as the printing trades are buying more freely than they did during July and August. How ever, the increase in demand has not been large. Contract prices are holding firm on all grades of paper, except on coarse krafts, which are weak; but in the spot market some concessions are still obtainable on nearly all grades, on large orders. Imported and domestic chemical pulps are more firm than they were last month, although some concessions are still being made to big buyers. Prices of mechanical pulp are firm and unchanged. Finished stocks at most mills are light, although at wrapping-paper plants they are moderate and at some kraft mills heavy. But curtailment of production at the kraft plants is causing stocks to decrease. Sup plies of raw materials at the mills are moderate and are remaining practically stationary. Skilled labor is in sufficient supply at all paper mills, and during the month the supply of unskilled labor has increased, so that it is more than ample for the needs of the industry. Wages are unchanged. Collections are reported as being from fair to good and more prompt than they were last month. PRINTING AND PUBLISHING Although the printing and publishing industry, in general, is more active than it was during the summer months, many job printers report that the demand is not as heavy as it was in September, 1922. A few, however, state that they have more orders booked than they had a year ago and that their plants are running at close to capacity. But the average of plant opera tions for commercial printers is only about 70 per cent. Catalogues and advertising pamphlets for nearly all lines of industry make up the major part of job printers’ orders. Some firms have also received large orders for direct-bv-mail advertising circulars. Magazine publishers report that the demand for adver tising space is good, and that since August 1 there has been a steady increase in their sales of advertising space over those of the same period last year. The automobile, rubber tire, and automobile accessories in dustries have been heavy purchasers. Subscription sales, too, are good for this season of the year and show a small increase over those of last September. Book publishers are very busy on the Christmas trade orders and are working at capacity. Lithographers report that window display advertising continues in good request and that the 1924 calendar work is especiallv heavy at present. Practically all lithographic plants are operating at capacity. Price cutting among commercial printers is still severe, and the printers complain that in some instances competitors have cut prices below production costs. Competition for catalogue orders has been especiallv keen. Printing and publishing costs show little change from those of Tune. Slight concessions in paper prices T 19 23 h i r d F e d e r a l are still obtainable, but the costs of other materials and of labor remain unchanged. On the whole, the supply of labor is sufficient for the needs of the industry, except in the binderies of the large publishing houses, where some difficulty in secur ing competent girl workers has been experienced. V ages are unchanged at the same levels as fixed by the V Typothetae about two years ago. Collections are reported as being from fair to good and more prompt than during July and August. CIG A R S R e s e r v e D i s t r i c t 29 livery in the latter part of November or early in December. Production of large cigars in August was smaller than that of August, 1922. As the preceding chart shows, the production of Class C grades increased and that of Class A goods declined considerably. Cigar prices are very firm and remain unchanged. Tobacco leaf prices are also firm, and some grades are higher than they have ever been before. A very good crop of cigar tobacco leaf is in prospect in the northern leaf-growing states, and the Depart ment of Agriculture estimates from the condition of the crop on September 1 that this year’s production will be 20 per cent greater than last year’s. But on September 11, ten days after the Department made its estimate, heavy frosts occurred in Wisconsin and Ohio, and considerable damage was wrought to the crop still standing in the fields. The following figures are the Department's estimates of the production of cigar tobacco leaf in the principal growing states on Sep tember 1: The demand for cigars is stronger than it was a month ago, but some manufacturers state that it is less active than it was in September, 1922. I 11 general, however, the call for cigars is good, and orders for the Christmas trade have been booked in large volume. Special Christmas packings are in heavy request, but on account of the high cost of making such packings, several manufacturers have merely wrapped their standard packages in special holiday paper. The five cent cigar seems to be losing in popular favor, nearly Estim ated tobacco production all of the producers of this grade reporting that it is not selling as well as it did earlier in the year. On the 1923 State (From conditions on 1922 other hand, the ten cent cigar is growing in popularity, Sept. 1) and many of the large cigar makers report that it is their best seller. Class B and Class D cigars are also Pennsylvania ...................... 57.408.000 lbs. 56.760.000 lbs. in good request. Most of the large manufacturers are M assachusetts .................... 16.530.000 “ 11.925.000 “ operating at close to capacity, and the smaller pro Connecticut ........................ 48.165.000 “ 35,000,000 “ New 2,272,000 “ 2.200.000 “ ducers at about 75 per cent. The majority of orders Ohio York .......................... ...................................... 59.623.000 “ 46.800.000 “ are for immediate delivery, only a few firms reporting Wisconsin ............................ 52.734.000 “ 45.600.000 “ any for delivery beyond 60 days. Cigar jobbers state that the current demand is rather poor and that re Stocks of cigars at the factories are moderate and at tailers are buying only from hand to mouth. How many plants are larger than they were a year ago. In ever, they are receiving many Christmas orders for degeneral, the supplies of raw materials held by manu facturers are also moderate. At most factories, the supply of labor is sufficient, PROOUCTION OF CIGARS AMD CIGARETTES although during the month the available supply of milliomst millions Cigarettes skilled cigar workers has decreased considerably. Con Cicfars sequently, a few factories report that both skilled and 6,000 unskilled labor is somewhat scarce. Wages are un changed. Collections vary from fair to good and show little change since last month. A G R IC U LT U R E (5$orless) (5ittoS<) (91<t to 154) The production of sm all cigarettes In August, for the first tim e this year was less than for the corresponding m onth of 1922 Source—Commissioner of Internal Revenue Heavy showers at the close of last month and dur ing this month helped the late truck crops of the dis trict considerably, but the rains came too late to over come the havoc wrought by the summer drought on most crops. Late potatoes, tomatoes, and cabbage and pastures are in much better condition than they were last month. But the county agents and the state de partments of agriculture in this district report that the output of corn, potatoes, sweet potatoes, oats, buck wheat, barley, and hay will be smaller than that of a T 30 B he u s i n e s s year ago and less than the ten-year average. Only the tobacco crop in Pennsylvania promises to be larger than in 1922. Corn is somewhat stunted in growth and is from ten days to two weeks behind normal de velopment. The early white potato crop was extremely poor, but the late crop is more promising. Oats, bar ley, and buckwheat were severely hurt by drought in the early growing stages, and the stands in many dis tricts were rather poor. The second cutting of hay has been very meagre, and in some regions no second cut tings were possible. Dry weather was the cause of the unfavorable condition of sweet potatoes; many of the plants that were set out dried up, and continual re planting was necessary. The following chart shows how the 1923 estimated yield of some important field crops compares with last year’s output and with the average production of each for the past ten years. Production estim ates for 1923 are based on the con dition of crops on Septem ber 1. Tobacco figures are for Pennsylvania only Source-— Department of Agriculture R O c to ber e v i e w In New Jersey the condition of late truck crops, although not as good as it was last year, has improved since the middle of August. The tomato yield is ex pected to be up to the average, and the late potato crop is greatly superior to the early crop. Lima and string beans have been satisfactory, and beets and celery are in fair condition. Sweet corn, however, has been ravaged by the ear corn worm, and late cabbage fields have been greatly injured by insects. The blight has been heavier than usual in many parts of the state and has caused considerable injury to celery, egg plants, squash, and spinach. Late tomatoes and pota toes, too, have suffered from blight on the dry, sandy soils. Considerable damage to late potatoes from blight is also reported in some counties of Pennsyl vania. The fruit crops of this district are expected to be large. True, the apple crop is not so good as was ex pected at the start of the season, but it is only slightly smaller than the average production of the past three years. The peach crop is fully 25 per cent greater than it was last year and 50 per cent greater than the three-year average. The pear crop in Pennsylvania does not promise to be quite up to normal, but in New Jersey a yield 50 per cent in excess of last year’s is ex pected. The grape crop in Pennsylvania is above the average, but not as good as it was in 1922; in New Jersey a heavy yield is in prospect. The cranberry crop of New Jersey is estimated to be 10 per cent larger than last year’s and 40 per cent above the aver age production of the past ten years. On account of the poor condition of pastures during the summer, the dairy herds in many counties are thin and scraggy and below their normal condition for Sep tember. Some dairymen kept herds in good condition by feeding hay and grain, but these were exceptions, as most of the farmers depended chiefly on pastures for feed, which they supplemented with light rations of E stim ates of crop production^ (In thousands of units) Corn ............................. Oats ............................. Buckwheat ................. Potatoes ..................... Sweet potatoes ........ Hay (tame) .............. Apples ......................... Peaches ....................... Pears ........................... Cranberrries .............. 1923 62,062 bus. 31,996 “ 4,434 “ 20,539 “ 235 “ 57,408 lbs. 3,018 tons 10,521 bus. 1,907 “ 526 “ 1922 69,212 bus. 41,242 “ 5,203 “ 28,512 “ 280 “ 56,760 lbs. 4,880 tons 11,400 bus. 1,560 “ 576 “ 10-year average 64,470 bus. 39,393 “ 5,091 “ 24,398 “ 268 “ • 54.878 lbs. 4,278 tons 10.731 bus.* 1,303 “ * 547 “ * * Average production for past three years, t Average production for past five years. for 1923 based on September 1 condition. X Estimates Delaware New Jersey Pennsylvania Crop 1923 9,416 bus. 1,682 “ 153 “ 6,360 “ 2,322 “ 312 tons 2,045 bus. 2,495 “ 629 “ 220 bbls. 10-year average 1922 9.912 bus. 2,232 “ 220 “ 16,435 “ 3,500 “ 485 tons 2,610 bus. 2,000 “ 405 200 bbls. “ 1923 1922 10,837 bus. 6,143 bus. 5,439 bus. 161 “ 2,242 “ 176 “ 76 “ 77 “ 216 “ 960 “ 724 “ 11,073 “ 934 “ 1,720 “ 2,515 “ 82 tons 116 tons 487 tons 2,073 bus.* 859 bus. 980 bus. 320 “ 1,494 “ * 231 “ 158 “ 427 “ * 221 “ 150 bbls. 10-year average 6,595 bus. 175 “ t 106 “ t 949 “ 901 “ 96 tons 667 bus.t 189 “ t 189 “ t *9 23 T h i r d F e d e r a l R D e s e r v e i s t r i c t 31 Septem ber 1 condition of m inor crops Pennsylvania Delaware Per cent of normal Crop New Jersey Per cent of normal Per cent of normal 1923 C ow peas ................................................................................................................ Soy beans .............................................................................................................. T o m ato es ......................................................................... C abbage .................................................................. P a stu re s .................................................... O nions . . . . .......................................... G rapes .............................................................. hay- However, pastures are much better now than they were early in August, and the general condition of dairy herds is decidedly superior to what it was on August 1. The efifects of the summer’s drought will be felt deeply by owners of herds this winter, when many who usually produce abundant hay for their needs will have to buy in the market. The short crop, together with poor pastures and the necessity of giving the herds hay during the summer, has resulted in the smallest hay stocks in many years in the dairymen’s barns at the close of September. In general, hogs and other livestock are in good con dition and about normally developed for September. Several county agents report that there are fewer hogs 1922 Average 10 years 1923 1922 Average 10 years 1923 Average 5 years 80 85 77 76 68 77 83 87 90 93 87 80 89 95 90 87 86 85 85 88 77 85 85 77 67 60 63 89 98 87 81 93 92 91 87 92 86 78 84 87 86 83 95 95 86 89 88 70 74 83 90 72 on the farms in their counties than there were at the close of last September, but the majority state that the numbers are about the same. Farm labor is still in scant supply, although it is somewhat more plentiful than it was last month. Un less the fall weather is extremely favorable, some of the crops will rot in the fields before the limited supply of men can harvest them. In certain counties farmers are pooling their labor and harvesting their crops jointly. From the view point of production the agricultural industry in this district is closing an unfavorable sea son. The yields of all crops, with the exception of fruits and tobacco, are below normal. COM PILED AS OF SEPTEM BER 22, 1923 This business report will be sent regularly without charge to any address upon request •
@FedFRASER