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THE BUSINESS REVIEW RESERVE DISTRICT THIRD FEDERAL PHILADELPHIA O C T O B E R i , 192.6 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA B U SIN E SS C O N D IT IO N S IN T H E U N IT E D S T A T E S Industrial activity and distribution of commodities continued in large volume in August at a level higher than a year ago. The general level of wholesale prices re ceded further in August, reflecting price declines for agricultural commodities. P rod u ction . The index of produc tion in basic industries, which is adjusted for the usual seasonal variations, declined slightly in August, but this decline was accounted for by the fact that there were five Sundays in August as against four in July. Textile mill activity and pro duction o f steel ingots, zinc, and petroleum increased, while the output o f pig iron, lumber, coal, copper, cement, and sugar was smaller than the month before. Auto mobile production increased considerably in August and was larger than in any month since April. Factory employment and payrolls, after declining in July, in creased in August, as is usual at this season of the year. Building activity, as measured by contract awards in 37 states east of the Rocky Mountains, was in larger volume in August than in July or in any other previous month with the exception o f August, 1925. In eastern and southeastern states the volume of building was smaller in August than a year ago, while in the middle west con PRODUCTION IN BASIC tracts awarded were larger. Contracts for residential structures were smaller than last year, while those for industrial buildings and for public works and public utilities were substantially larger. Crop conditions improved in August, according to a statement by the Depart ment of Agriculture. September fore casts o f yields of corn, barley, hay, to bacco, and most fruit and vegetable crops were above those made in August, while expected yields o f oats and spring wheat were slightly less. A cotton crop of 15.810.000 bales was indicated on the basis of the condition of the crop at the middle of September. The crop, how ever, is later than last year and ginnings up to September 16 amounted to only 2.511.000 bales, compared with 4,282,000 bales prior to September 16, 1925. T rade. Volume of wholesale trade and o f sales at department stores increased in August and retail sales were larger than a year ago. Stocks o f drygoods and shoes carried by wholesale firms were smaller at the end of August than last year, while those of groceries and hard ware were larger. Inventories o f depart ment stores increased in preparation for autumn trade, but this increase was less than is usual at this season and at the WHOLESALE IN D U S TR IE S PER CENT PERCENT P R IC E S PER CENT PER CENT 200 /> N : 200 150 100 100 50 50 0 0 1922 1923 1924 1925 1926 Index of 22 basic commodities, adjusted for seasonal variations (1919— 100). Latest figure — August, 116. end o f the month stocks were smaller than a year ago. Freight car loadings in August continued higher than in the corresponding months o f previous years and for the weeks o f August 28 and Sep tember 4 exceeded all previous weekly records. Loadings o f grain continued large and shipments of merchandise in less-than-carload lots, miscellaneous com modities, ore, and coke were consider ably larger than in the corresponding period of previous years. P rices. Wholesale commodity prices, according to the index of the Bureau of Labor Statistics, declined by over 1 per cent in August, reflecting largely price decreases for grains, livestock, and meat products. Prices of clothing materials fuels, and metals increased between July and August, while prices o f cotton, wool, sugar, building materials, and rubber showed little change. In the first half of September prices o f grains, cattle, sugar, bituminous coal, and coke advanced, while prices o f raw cotton, silver, and bricks declined. Bank credit. Increased demand for bank credit in connection with the har vesting and marketing o f crops and autumn trade, together with an increase in loans on securities, was reflected in a 1922 1923 1924 1925 1926 Index of United States Bureau of Labor Sta tistics (1913—-100, base adopted by Bureau). Latest figure— August, 149.2. Federal Reserve Board’s indexes of factory em ploym ent and payrolls (1919— 100). Latest figures— A ugust: em ploym ent, 94.4; payrolls, 107.7. Page One RESERVE BANK BILLIONS OF DOLLARS CREDIT Latest figure compared with BILLIONS OF DOLLARS, BUSINESS IN DICATORS Philadelphia Federal Reserve District August, 1926 Retail trade— Estimated net sales (138 stores). Department stores (6 4 ).................................... Apparel stores (3 6 )............................................ Shoe stores (2 0 ).................................................. Credit stores (1 8 )............................................... M onthly averages of daily figures for 12 Fed eral Reserve Banks. Latest figures are aver ages of first 23 days in September. considerable growth between the middle of August and the middle o f September in loans o f member banks in leading cities. The banks’ holdings of invest ments also increased, though there was a decrease in investments at banks in New York City, and total loans and invest ments on September 15 were larger than at any previous time. The volume o f reserve bank credit in creased by about $90,000,000 between August 18 and September 22, partly in response to seasonal demands for cur rency. Discounts for member banks rose in September to the highest figure for the year, and acceptance holdings also in creased, while United States securities de-. dined by about $55,000,000. Money rates continued to rise in Sep tember. Rates on commercial paper ad vanced by one-fourth per cent to — 4-)4 Per cent, and rates on security loans also averaged higher than in August. B U SIN E SS C O N D IT IO N S IN T H E P H IL A D E L P H IA F E D E R A L R E S E R V E D IS T R IC T The early fall has witnessed a marked betterment of business conditions through out the Philadelphia Federal Reserve District. This recent improvement is chiefly of a seasonal nature to be ex pected at this time o f the year, but cur rent activity in most lines o f industry and trade continues well in excess of that o f last year. In August factory em ployment and wage payments made dis tinct gains over July levels, and our pre liminary reports indicate that employ ment in September has advanced further to a point close to the highest reached in the past two years. Distribution of com modities also continues in large volume. Freight car loadings in the Allegheny district and in the country as a whole have been running well ahead of last year’s figures, and shipments during the past few weeks have exceeded all previ ous records. Seasonal expansion in the volume o f wholesale trade has occurred in recent ■weeks, although the total sales of reporting firms in this district were somewhat smaller in August than in July or in the same month of 1925. Better ment is particularly noticeable in the Page Two $16,860,000 $13,322,000 $2,171,000 $441,000 $926,000 W holesale trade— net sales (142 firms). Boots and shoes (11 firm s).................. Drugs (14 firm s).................................... D ry goods (16 firm s)............................. Electrical supplies (6 firm s)................. Groceries (46 firm s)............................... Hardware (26 firm s).............................. Jewelry (11 firm s).................................. Paper (12 firm s)..................................... $8,920,331 $407,433 $1,571,722 $758,434 $313,009 $3,209,685 $1,748,807 $436,611 $974,630 Production: Shoes* (94 factories)................................................ Pig iron ........................................................................ Hosiery* (107 m ills)................................................. Iron castings (32 foundries)................................... Steel castings (11 foundries).................................. C em ent........................................................................ Anthracite................................................................... Bituminous coal— P enna......................................... W ool consumption* (76 m ills)............................... A ctive cotton spindle hours (Penna. and N. J.) . Electric power— 12 system s.................................... 1,268,638 prs. tons 310,737 doz. prs. 972,908 5,635 tons 6,842 tons 3,9 0 1,00 0 bbls. 8,225,000 tons 11,774,000 tons 6,234,446 lbs. 63,154,130 K W H 366,478,000 Distribution: Freight car loadings (Allegheny district— weekly average) Tonnage of vessels (Port of Philadelphia)......................... Exports of wheat (from Port of Philadelphia)................. Exports of flour (from Port of P hiladelphia).................... Imports of crude oil (into Port of Philadelphia)............. tons bus. lbs. gals. Financial: Loans, discounts and investments of member banks (weekly average).................................................................. Bills discounted held by F. R. B. of Phila. (daily average) Acceptances executed (9 banks for month ended September 1 0 )...................................................................... Commercial paper sales (6 dealers).................................... Savings deposits (99 b an ks).................................................. G eneral: Debits (18 cities)............................................................. Commercial failures— number...................................... Commercial failures— liabilities................................... Building permits (16 cities)........................... .............. Building contracts awarded (Philadelphia d istrict). Employment— 881 plants in Penna.: N u m b e r o f w a g e e a r n e r s ..................................................... Total wages.................................................................. Average weekly earnings........................................... Sales of life insurance (Penna., N. J. and Del.) 220,998 3,670,275 1,086,241 2,8 7 1,97 0 4,953,942 $ 1,138,300,000 $45,851,000 $2,842 ,000 $4,085,000 $600,517,000 $ 2,161,715,000 44 $1,630,058 $15,620,795 $39,766,828 291,051 $7,393,554 $25.40 $72,263,000 Previous month Year ago + 3 .9 % + 2 .5 “ + 4 .9 “ + 0 .6 “ + 4 5 .5 “ + 3 .4 % + 2 .5 “ + 8 .6 “ + 2 2 .8 “ - 2 .0 “ - 3 .2 + 3 2 .4 + 0 .6 + 2 0 .9 - 5 .0 - 3 .6 - 4 .0 + 4 1 .3 + 4 .5 + + + + “ “ “ “ “ “ “ 8 “ + 2 9 .1 “ - 1 .1 “ + 1.8 “ + 6 .0 “ - 2 .4 8 - 0 .9 “ - 2 .4 “ + 5 .8 “ - 1 .3 “ -1 4 .9 “ + 3 .8 “ + 4 .6 + 8 .3 + 135.1 + 5 5 .1 -4 3 .2 “ “ “ “ 8 4 .9 10.8 1 .3 4 .6 18.5 1 .6 1 .5 5 .3 7 .3 “ “ “ “ “ 8 8 “ “ + 2 4 .6 “ + 12.4 + 3 7 .3 + 4 .7 - 8 .3 + 15.4 “ “ “ “ “ -2 9 .3 “ + 15.9 “ + 1 .8 + 2 3 .0 - 9 .9 + 3 8 .9 -7 4 .7 “ “ “ “ “ 0 .6 “ 4 .7 “ + 5 .7 8 - 7 .2 8 -1 9 .0 “ -2 9 .5 “ + 0 .3 “ - 3 9 .2 “ -4 2 .1 “ + 5 .2 “ - -1 4 .3 -4 2 .1 -5 0 .9 -1 9 .4 + 6 .1 + “ “ “ “ 8 1.0 8 + 3 .0 “ + 1.9 “ -1 6 .0 “ + 0 .5 “ - 2 .2 “ + 117.8 “ - 3 .5 “ + 1 3 .1 “ + + + - 4 .5 3 .6 4 .1 4 .2 “ “ “ “ * Bureau of Census preliminary figures. wholesale shoe, drygoods and jewelry trades. Retail business has also con tinued in large volume, with current sales in nearly all lines exceeding those of last month and o f last year. The reported improvement in the tex tile industries, which had been inactive for several months, was particularly en couraging. In August, these industries showed a marked expansion of factory operations, and later reports indicate a still further improvement in these lines. Better demand and a strong price tend ency are reported for cotton, wool and silk goods. Hosiery is in only fair de mand, except for women’s full-fashioned, while the floor coverings trade is quiet, awaiting the fall auction of the largest producer. Buying of packer hides has been more active lately, and sole and kid leather are moving in good volume. Shoe manufacturers are meeting with mod erate demand for their products. Operations are being steadily main tained in the iron and steel industry, with output o f pig iron and iron and steel castings considerably larger than in the same period last year. Prices are quite stable although there have been slight ad vances in some steel products. The coal industries have experiencd some improve ment. The anthracite market is seasonally active and bituminous coal is meeting with a better demand and somewhat higher prices. Construction has taken another spurt in this district; contract awards in August were larger than in any other month except March and June of this year and were 13 per cent greater than in August, 1925. This has been reflected in greater activity in the market for bricks, lumber, paint and other building materials. In most lines, however, cur rent sales are below the volume o f last year. The agricultural outlook in this dis trict has improved considerably since August 1. The condition of most crops is dose to the ten-year average, while the forecast yield of apples, pears and peaches is one o f the largest in recent years. Recent rains have retarded fall ploughing and have done some damage to rye and winter wheat during the harvest. City conditions. The majority of the cities in the Philadelphia reserve dis trict show considerable gains from July to August in factory employment and wage payments, savings deposits and sales of electric power, whereas check pay ments declined in all reporting cities, owing partly to the occurrence o f five Sundays in the latter month. Except for Philadelphia, Altoona and Johnstown, the volume of retail trade was smaller. Dur ing August the value o f building permits in most cities also was below that for July. Compared with the industrial and mercantile situation the year previous, wage payments, debits, savings deposits and electric power sales increased in most o f the cities. Seven of the thirteen cities showed a decline in retail sales, although the total for the district increased. Johns town, Lancaster and Reading showed the greatest recessions in retail business. De tails are given in the accompanying table. R E T A IL T R A D E Preliminary reports indicate that busi ness at retail in the Philadelphia reserve district has been more active during the past four weeks than that in the pre ceding month. Prices generally continue steady. During August sales by stores report ing to this bank exceeded the July volume by 3.9 per cent and were 3.4 per cent above those in August, 1925. The total sales for the eight months o f 1926 also were 2.9 per cent greater than the total for the same period of last year. Com pared with the volume of a year ago, larger sales are reported by department, apparel and shoe stores, but sales at credit houses were smaller. Consider August, 1926, compared with August, 1925 CONDITIONS Philadelphia Federal Reserve District Allentown Aug., 1926 with Aug., 1925 u “ “ .. u u 0 .2 % + 2 .7 -1 4 .6 - 9 .8 + 5 .2 + 1 3 .4 -2 6 .6 - 5.1 + 2 .7 - 3 .8 + 9 .8 + 4 .1 “ “ “ “ “ “ “ “ “ “ “ + + + + + + + + + + - 0 .4 % 1 .5 “ 0 .2 “ 1 .7 “ 3 .3 “ 2 .4 “ 2 .6 “ 2 .7 “ 1.1 “ 1 .4 “ 1 .3 “ 0 .2 “ 0 .4 “ 4 .7 % “ “ “ “ “ “ “ “ “ “ “ Debits Savings deposits Retail trade sales Electric power sales -2 9 .9 % —14.6 “ + 2 7 .8 “ -6 1 .9 “ -5 2 .2 “ + 0 .4 “ -5 7 .0 “ + 8 .5 “ -1 0 .0 “ + 2 .3 “ + 7 3 .2 “ + 8 4 .1 “ —5 5.5 “ - 0 .8 % + 1 0 .6 “ + 0 .1 “ + 1 1 .1 “ -1 0 .3 “ + 0 .2 “ - 1 .2 * + 3 .7 “ - 0 .3 “ - 4 .9 “ + 1 .7 “ + 10.6 “ -1 0 .5 “ + 6 .3 % + 1 2 .7 “ + 9.1 “ + 2 .0 “ + 7 .4 “ + 6 .6 “ - 7 .5 “ + 4 .1 “ + 2 .8 “ -1 .2 “ + 2 .9 “ + 6 .5 “ - 3 .3 “ + 0 .9 % + 1 0 .3 “ — 5 .3 u - 6 .9 “ - 7 .5 “ + 5.1 “ - 9.1 “ + 2 0 .2 “ - 2 .0 “ - 2.1 “ -1 .1 “ + 3 .4 “ + 3 .1 “ + 1 6 .4 % * + 1 7 .1 “ + 9 .0 “ + 1 2 .8 “ ** - 8.1 “ + 1 1 .1 “ + 2 5 .4 “ - 0 .3 “ + 1 2 .8 “ f ...............t + + 4+ + + + + + + + + 4 .1 % 0 .3 “ 3 .3 “ 2 .0 “ 8 .2 “ 2 .0 “ 3 .7 “ 1.0 “ 1.5 “ 4 .0 “ 0.1 “ 0 .4 “ 0 .3 “ - 2 .1 % + 1 2 .8 “ - 6 .3 “ + 3 .0 “ -1 8 .3 “ + 3 .8 “ - 0 .5 “ - 0 .7 “ -1 0 .3 “ - 3 .0 “ -1 6 .2 “ - 5 .2 “ - 8 .6 “ + 3 .0 % * + 2 .0 “ + 4 .8 “ + 4 .0 “ ** + 1 0 .9 “ -1 .6 “ + 7 .6 “ + 1 0 .9 “ - 1.6 “ t -3 3 .4 % -6 6 .8 “ -1 3 .5 “ + 2 .3 “ -2 4 .0 “ -2 2 .8 “ -5 3 .4 “ + 8 2 .6 “ + 5 .6 “ -4 6 .8 “ + 4 0 .9 “ + 1 2 .1 “ -6 0 .8 “ able gains are noted in juniors’ and girls’ ready-to-wear, negligees, aprons and house dresses, furs, infants’ wear, leather goods, women’s and children’s hosiery, books and stationery, whereas large de creases again occurred in woolen dress goods, women’s suits and skirts, sweaters, ribbons, musical instruments and radios. Stocks at the end of August were 6.4 per cent heavier than those of a month previous but 1.2 per cent lighter than supplies on the same date last year. F IN A N C IA L C O N D IT IO N S Loans and discounts at reporting mem ber banks in Philadelphia, Camden, Scranton, and Wilmington advanced from 789 millions on August 18 to 809 millions on September 15. O f this in crease, 13 millions was in loans on securi ties, which on the later date were still Comparison of stocks Jan. 1 to Aug. 31, 1926 Aug. 31, 1926 Aug. 31, 1926 with with with Jan. 1 to Aug. 31, 1925 July 31, 1926 Aug. 31, 1925 + 3 .4 % + 2 .9 % - + + + + + + + + - + + + + + + + + + - 1 .2 + 2 .5 - 8 .2 - 0 .8 - 5 .9 - 3 .2 -1 0 .6 - 0 .5 + 1.7 -1 3 .0 1.9 “ 2 .6 “ 0 .3 “ 7 .5 “ 1.2 “ 3 .6 “ 2 .2 “ 4 .1 “ 4 .2 “ 3 .7 “ - + 5 .9 - 8 .0 -1 2 .0 + 7 .0 + 1 0 .1 -3 0 .5 - 5 .4 + 2 .5 + 2 .2 + 6 .0 + 0 .5 Value of building permits * Includes Wilkes-Barre and Williamsport areas, t Included in Allentown area. Department stores................. in Philadelphia................... outside Philadelphia........ Apparel stores........................ M en’s apparel stores........ in Philadelphia............... outside Philadelphia. . . W om en’s apparel stores. . in Philadelphia............... outside Philadelphia. . . “ “ “ “ “ “ “ “ “ “ “ "____ ... “ .. “ a area. . . Allentown u .. Altoona “ Harrisburg 11 .. Johnstowm u Lancaster u .. Philadelphia “ .. Reading “ Scranton u .. Trenton Wilkes-Barre Williamsport “ .. Wilmington York All reporting stores............... 2 .5 3 .4 0 .9 8 .6 5 .8 10.5 1 .8 0 .5 2 .1 5 .9 - u W age payments 1 -2% “ “ “ “ “ “ “ “ “ “ Rate of turnover Jan. 1 to Aug. 31 1925 1926 + 6 .4 % 2 .08 2 .15 + 6 .5 + 8 .0 + 3 .3 + 11.1 + 15.5 + 2 2 .i + 6 .7 + 1 7 .1 + 1 6 .1 + 2 3 .9 2 .05 2.21 1.72 2.48 1.57 1.66 1.43 3 .50 3 .55 3.11 2.11 2 .23 1.86 2.54 1.68 1.81 1.46 3.64 3.65 3 .60 “ “ “ “ “ “ “ “ “ “ Credit stores........................... - 2 .0 “ + 5 .0 " - 5 .6 “ - 1.9 “ 1.61 1.86 Shoe stores.............................. + 2 2 .8 “ + 1 0 .9 “ + 6 .1 “ - 0 .9 “ 2.35 2.21 + 7 3 .6 “ - 0 .7 “ August, 1926, compared with July, 1926 Comparison of net sales RETAIL TRADE Philadelphia Federal Reserve District a re a .. Harrisburg Johnstown Lancaster Philadelphia Reading Scranton Trenton Wilkes-Barre Williamsport Wilmington \ ork Em ploy ment -1 2 .9 % - 5 .4 “ - 0 .7 “ -1 .8 “ -1 2 .9 “ -1 5 .9 “ -1 1 .2 “ - 3 .6 “ -1 4 .2 “ - 1 .2 “ -1 1 .8 “ -2 1 .1 “ -1 3 .4 “ + + + + + + + + + + - 0 .5 % 1 .2 “ 0 .4 “ 0 .6 “ 0 .7 “ 0.1 “ 0 .3 “ 0 .4 “ 0 .0 “ 2 .2 “ 2 .2 “ 0 .3 “ 0 .1 “ ** Production (not sales), ............... t + 1 1 .2 “ + 7 .1 “ f Includes Camden area. 10 millions below the peak attained at the end of June, though 59 millions above a year before. Seasonal expansion took place in commercial loans which, on Sep tember 15, were 7 millions greater than four weeks before, but only 3 millions higher than on September 16, 1925. In vestments changed little from August 18 to September 8, but a week later hold ings o f Government securities increased 12 millions, coincident with the new issue appearing on the 15th. This change was accompanied by a sharp rise in Govern ment deposits. In the course of a year the loans of these banks have increased 62 millions and investments, 17 millions, a total for all loans and investments o f 79 millions. Demand deposits have advanced only 7 millions, but time deposits are 64 millions higher. T o support this larger deposit structure an increase in required reserves of only a little over two millions was necessary, because of the smaller per centage required on time deposits. Discounts at the Federal Reserve Bank of Philadelphia increased 3 millions, and holdings of other bills, 4 millions, in the four weeks ended September 15. Invest ments declined in the earlier weeks, but on the 15th the total was swelled over night by the acquisition from the Govern ment o f more than 5 millions in tem porary certificates o f indebtedness, pend ing the collection of income tax checks. A week later the total of bills and se curities was 6 millions lower, owing chiefly to the retirement of these cer tificates. Changes in the reserve ratio and in the factors from which it is cal culated, are given on the following page. Page Three (Dollar figures in millions) 1926 Aug. 4 11 18 25 Sept. 1 g Sept. 23 Federal Reserve reserve Total ratio note cir deposits culation Reserve cash 74^5 “ $116.7 120.9 119 7 119.7 117 2 118.1 115 112.5 $139.2 134.0 ISfi 2 137.5 133 7 134 4 141 3 141.1 $195.8 201.3 197 7 191.4 190 0 191 g 185 0 189.0 7 5.0 “ 146.6 129.6 207.0 Net sales, Aug., 1926, compared with W HOLESALE TRADE Philadelphia Federal Reserve District Aug., 1925 7 6 .5 % 7 9.0 “ 77 3 “ 74.4 a 7a 7 u 75 Q « Commercial paper. Though dealers find the demand for commercial paper in Philadelphia slightly better than that of a month ago, business is far from active. Lists generally are small and much o f the paper is held at 4^4 per cent, a rate which is not high enough to prove attractive here. Market rates are 4J4 to 424 per cent, as compared with 4j4 to 4/4 per cent last month. August sales in Philadelphia amounted to only $1,125,000, according to the re ports o f six dealers. This compares with $2,232,500 in July. Sales outside o f the city also declined, from $3,560,900 in July to $2,960,000 in August. Total sales fell from $5,793,400 in July to $4,085,000 in August, and compared with $7,060,000 in August, 1925. W H O LESALE TRADE A seasonal improvement in wholesale trade is indicated by the preliminary data received from reporting firms in the Philadelphia reserve district. Buying, however, for quick or nearby deliveries still predominates. Prices generally con tinue unchanged. August sales o f shoes, drygoods, jew elry, paper and drugs were greater than those in July, whereas business in elec trical supplies, groceries and hardware was smaller. Compared with the volume of a year ago, trading in shoes, electrical supplies, paper and drugs was heavier, but sales of drygoods, jewelry, groceries and hardware were lighter. Stocks at the end o f August were not excessive, and collections during August were fairly prompt. Drugs. A moderate rate o f activity marks the wholesale trade in drugs. Virtually no change in prices is noted, and collections continue prompt. Sales in August were slightly above the volume in the preceding month and a year ago. Stocks at the end o f August were about 3 per cent lighter than at the same time a month before. Drygoods. Seasonal demand for no tions, knit and piece goods has improved considerably since August 20, buying for spot delivery and for shipment within the next thirty days being in the lead. Prices generally remain about the same as four weeks ago, but they are con Page Four Boots and shoes. . . . D ru gs......................... D ry go o d s ................. Electrical supplies. . G roceries................... Hardware................... Jewelry....................... Paper.......................... + + + + 10.8% 1 .3 “ 4 .6 “ 18.5 “ 1 .6 “ 1 .5 “ 5 .3 “ 7 .3 “ July, 1926 + 3 2 .4 % + 0 .6 “ + 2 0 .9 “ - 5 .0 “ - 3 .6 “ - 4 .0 “ + 4 1 .3 “ + 4 .5 “ Accounts out standing, Aug. 31, 1926, compared with Stocks, Aug. 31, 1926, compared with Aug. 31, 1925 Julv 31, Aug. 31, 1926 1925 -1 2 .8 % + + 3 9 .5 “ + + 15.7 “ + + 3 .6 “ + + 1 .6 “ - 8 .2 “ - 1 .6 “ - 3 .4 % 3 .2 “ 0 .8 “ 10.3 “ 0 .9 “ 0 .2 “ 1 .5 “ 0 .8 “ siderably below the level prevailing a year ago. The volume of August trade was nearly 21 per cent greater than that in July, but was 4.6 per cent below that in August, 1925. Collections were prompt. Stocks at the end o f August wrere nearly 40 per cent lighter than on the same date last year. Electrical supplies. Trading in electrical supplies since August 20 has been more active than that in the pre vious month or in the same period last year. Prices virtually remain as firm as they were thirty days ago. While August sales were 5 per cent below the July volume, they exceeded those o f a year ago by nearly 19 per cent. Stocks at the end o f August were consider ably heavier than those on the same date in July and last year. Collections were more prompt than in August, 1925. Hardware. Gains in sales over the volume in the month prior to August 20 have been reported by many hardware wholesalers. Current demand also is somewhat more active than it was a year ago. Prices, in the main, remain steady. August sales were 4 and 1.5 per cent, respectively, below those if July and of a year ago. Stocks, which at the end of August, were a trifle smaller than those a month before, were 1.6 per cent greater than those at the same time last year. + 7 .6 % + 3 .0 “ - 2 .5 “ + 1 3 .2 “ - 3 .4 “ + 1 .1 “ + 8 .9 “ + 6 .9 “ July 31, 1926 + + + + + 8 .6 % 0 .4 “ 1 .4 * 1 .4 * 1 .8 “ 1 .8 * 11.4 “ 2 .2 “ R atio of accounts outstanding to sales Aug., 1925 July, 1926 Aug. 1926 2 59.7% 149.4 “ 232.1 “ 198.2 “ 106.7 “ 185.0 * 303.5 “ 1 6 0 .5 “ 3 01 .2% 156.3 “ 282.5 “ 182.5 “ 101.7 “ 185.9 “ 443.1 “ 163.4 “ 2 4 9 .6 % 1 5 6 .6 “ 236.8 “ 189.4 “ 106.7 “ 189.5 “ 349.2 “ 159.8 “ Groceries. The great majority of reporting firms state that business has increased since August 20, but it has not come up to the volume for the same period last year. Except for a few slight advances, prices remain at the same level as four weeks ago August sales were 3.6 and 1.6 per cent, respectively, below those in the preceding month and a year before. M onthly per cent changes shown in this chart are comparisons with corresponding m onths of 1923. Source: Federal Reserve Bank o f Philadelphia Jewelry. Sales o f jewelry, which in August were 41.3 per cent above the July volume, continue to show seasonal improvement. Prices remain unchanged. Accounts outstanding in August in creased materially over those in July and August, 1926, change from AUTOMOBILE TRADE Philadelphia Federal Reserve District 16 distributors August, 1925 July, 1926 Number Value Number Value Sales, new cars, wholesale.................................................... Cars under $1,000.............................................................. Cars $1,000 to $2,000....................................................... Cars over $2,000................................................................ + 3 5 .8 % + 2 5 .5 “ + 9 0 .0 “ - 19.2 “ + 1 9.6 % + 23.1 “ + 4 9.9 “ - 2 0.7 “ + 4 2 .0 % + 3 0 .7 “ + 5 9 .5 “ + 5 2 .1 “ + 4 1 .8 % + 3 1 .4 “ + 4 9 .0 “ + 5 2 .7 “ Sales, new cars, at retail...................................................... Cars under $1,000............................................................. Cars $1,000 to $2,000....................................................... Cars over $2,000................................................................. + 13.8 “ + 180.0 “ + 16.8 “ - 2 2.8 “ 9 .1 “ + 175.5 “ + 15.1 “ - 2 6.6 “ -1 3 .2 “ -1 4 .2 “ - 9 .9 “ 0 -1 1 .7 -1 3 .9 - 8 .2 - 4 .6 “ “ “ “ Stocks of new cars................................................................. Cars under $1,000.............................................................. Cars $1,000 to $2,000....................................................... Cars over $2,000................................................................. 0 .2 - 16.6 + 3 .3 + 3 8.6 + 8 .4 “ - 16.9 “ + 0 .5 “ + 2 5.5 “ -1 2 .1 -1 4 .9 -1 4 .6 - 4 .9 -1 0 .1 -1 4 .2 -1 4 .4 - 6 .5 “ “ “ “ Sales of used cars................................................................... Stocks of used cars................................................................. Retail sales, deferred paym ent............................................ + 17.4 “ + 15.6 “ + 4 5 .8 “ + + -1 6 .4 * - 4 .2 “ + 13.5 “ “ “ “ * 1 .7 “ 1 .4 “ 16.4 “ “ “ “ “ -1 2 .1 “ + 1 .4 “ + 1 9 .2 “ a year ago. Stocks at the end of August were lighter than those on the same date thirty days previous and last year. Paper. Business in paper at whole sale is good, sales being somewhat ahead of those in the month prior to August 20 and in the same period last year. Trad ing in August exceeded that in July by 4.5 per cent and was 7.3 per cent above the volume of a year ago. Manufacturers report that current de mand is considerably more active than it was four weeks ago, and unfilled orders show gains over those o f a month before. Operations at paper plants average close to 80 per cent of capacity. Stocks are moderate. Prices continue firm and, with a few exceptions, remain unchanged from last month’s level. Collections are satis factory. Shoes. Business in shoes continues active, and prices remain at the level of four weeks ago. The majority o f orders still call for prompt delivery. Sales in August exceeded those in July by over 32 per cent and were nearly 11 per cent ahead o f those the year previous. Col lections were satisfactory, and stocks at the end of August were not large. A U T O M O B IL E T R A D E Retail sales o f automobiles, as reported by 16 distributors in the Philadelphia Federal Reserve District, were smaller than in the month preceding, but whole sale deliveries o f all classes of cars showed large increases both in number and value. The seasonal quiet was also reflected in smaller sales of used cars, but despite this decline in retail business, the volume of deferred payment sales was considerably larger in August than in July. As compared with a year ago, aggre gate sales of new cars at wholesale were in much greater volume in August, al though sales of the expensive cars showed a decline. At retail, nearly 14 per cent more cars were sold in August, 1926, than in the same month last year, but the aggregate dollar volume in business was 9 per cent smaller. This further evidences the fact that the gains have occurred almost entirely in the low and medium priced groups. Sales o f used cars and retail sales on deferred pay ment were also larger than in 1925. E L E C T R IC POWER Generated output and sales o f electric power by 12 systems in the Philadelphia Federal Reserve District were larger in August than in July and considerably ahead of the totals for August, 1925. Total sales were only 1.5 per cent ahead of those of the previous month but the industrial expansion occurring in August was shown by a gain o f nearly 5 per cent in sales to industries. Sales o f electricity Number of wage earnersweek ended E M PLO Y M E N T AND W AGES In Pennsylvania No. of plants report ing Aug ust 15, 1926 Average weekly earnings— week ended Total weekly wagesweek ended Per cent change from month ago August 15, 1926 Per cent change from month ago Aug ust 15, 1926 Per cent change from month ago All industries (4 6 ).............................. 881 291,051 + 1 .0 $7,393,554 + 3 .0 $25 40 + 1 9 M etal manufactures: Automobiles, bodies, and parts. . . Car Construction and repair........ Elec, machinery and apparatus.. . Engines, machines, mach. t o o ls .. . Foundries and machine s h o p s.. . . Heating appliances and apparatus Iron and steel blast furnaces........ Iron and steel forgings................... Steel works and rolling m ills........ Structural iron works..................... Misc. iron and steel products. . . . Shipbuilding..................................... Hardware.......................................... Non-ferrous m etals......................... 295 20 20 17 39 59 17 12 12 37 17 26 3 8 S 152,033 8,583 20,720 5,334 11,847 9,663 4,174 12,689 3,601 41,931 5,363 19,321 6,097 1,806 904 + 1 .4 3 .8 2 .6 9 .6 1 .3 0 .3 5 .9 0 .4 2 .8 2 .0 5 .6 2 .3 3 9 1 3 0 4 4,1 6 1,35 8 231,305 5 9 4 ,3S9 119,890 344,159 274,168 114,285 336,955 87,700 1,160,678 143,548 516,192 171,180 44,688 22,221 + 3 1 4 .9 — 0 .0 + 16 .2 + 3 .3 + 0 .6 + 5 .2 + 3 .1 + 5 .6 + 6 .3 + 7 .5 + 0 .3 4- 5 .6 — 0 .6 + 2 .4 27 .37 26 95 28 69 22 48 29 05 28 37 27 38 26 oo 24 35 27 68 26 77 26 72 28 08 24 74 24 58 + + 1 .7 1 .1 2 .5 6 .0 1 .9 0 .2 0 .7 2 .7 2 .7 4 .2 1 .8 2 .7 1 .7 2 0 1 .9 Textile products: Carpets and rugs............................. C lothing............................................ Hats, felt and oth er....................... C otton good s.................................... Silk good s.......................................... W oolens and worsteds................... K nit goods and hosiery................. Dyeing and finishing textiles........ 174 10 33 6 17 42 14 42 10 52,643 2,866 4,977 4,305 4,419 18,322 4,909 11,073 1,772 + 2 1 + 6 4 1 7 — 0 1 + 0 6 + 5 4 + 2 5 1 3 + 2 7 1,104,859 66,166 88,583 119,497 96,667 341,722 114,765 232,206 45,253 + 5 + 5 — 2 + 3 + 7 +13 + 11 — 4 + 3 2 3 1 0 6 6 4 6 5 20 23 17 27 21 18 23 20 25 99 09 80 76 88 65 38 97 54 + 3 1 0 3 7 7 8 3 + 0 Foods and tobacco: Bakeries............................................ Confectionery and ice cream . . . Slaughtering and meat packing. . Cigars and to b a cco ......................... 112 37 23 14 38 23,555 4,631 5,761 2,012 11,151 + 0 2 + 3 — 2 + 0 Building m aterials: Brick, tile, and terra cotta p ro d .. . C em ent.............................................. Glass................................................... P ottery.............................................. 71 29 14 24 4 20,179 4,503 8,020 6,872 784 + — — + Construction and contracting: Buildings........................................... Street and highw ay........................ General.............................................. 29 19 3 7 Chemicals and allied products: Chemicals and drugs...................... E xplosives......................................... Paints and varnishes...................... Petroleum refining.......................... M iscellaneous industries: Lumber and planing mill products Furniture.......................................... Leather tan ning.............................. Leather products............................. Boots and shoes.............................. Paper and pulp products............... Printing and publishing................. Rubber tires and go o d s ................. Novelties and jew elry.................... Rated generator capacity. . . . Generated output..................... H ydro-electric....................... Steam ...................................... Purchased.............................. Sales of electricity.................... Lighting................................. M unicipal.......................... Residential and commercia l.................................. P ow er...................................... M unicipal.......................... Street cars and railroads. Industries.......................... All other sales....................... + + 4- — — + + + — + + + + + — 1 0 4 1 0 8 7 4 8 — + + + + _ 3 7 0 3 8 475,177 131,638 120,158 58,029 165,352 + — + — + 0 2 0 1 3 2 6 7 8 0 20 28 20 28 14 17 43 86 84 83 0 + 0 2 + 0 + 2 1 0 0 4 0 7 3 6 4 4 576,127 114,073 249,744 192,137 20,173 + + + — - 0 0 2 1 0 6 2 3 1 7 28 25 31 27 25 55 33 14 96 73 + 2 3 0 2 + 2 8 + 3 4 1 1 4,625 2,180 1,252 1,193 0 — 4 — 5 + 13 9 6 8 2 122,545 66,233 27,667 28,645 + 1 1 — 3 + 14 2 8 0 2 26 50 30 38 22 10 24. 01 + + + + 38 21 3 9 5 9,769 1,069 461 1,246 6,993 1 9 — 4 6 + 4 5 + 0 6 2 3 268,181 29,544 12,468 30,171 195,998 ;_ 0 1— 2 1 + 12 — 0 - 0 3 7 1 4 7 27 45 27. 64 27. 05 24. 21 28. 03 + 1 6 + 2 0 + 7 3 — 1 0 + 1 7 162 28 20 18 9 23 19 39 3 3 28,247 4,306 2,334 5,629 492 4,147 5,035 3,852 972 1,480 + 0 9 0 8 + 4 4 + 2. 0 + 0. 4 + 0. 6 + 0. 2 + 0. 4 + 3. 3 + 0. 3 685,307 89,830 52,415 139,554 10,127 77,875 125,124 129,449 27,205 33,728 3 0 + 6 4- 4 + 1 +15 + 4 + 0 0 + 4 8 9 0 1 9 5 5 2 2 1 24 26 20 86 22. 46 24. 79 20. 58 18. 78 24. 85 33. 61 27. 99 22. 79 + 2 0 + 1 + 2 + 1 + 14 + 4 0 — 3 + 3 for residential and commercial lighting as well as sales to street cars and rail ELECTRIC POW ER Philadelphia Federal Reserve District 12 systems + + + + + + + + + August, 1926, change from _ _ July, 1926 + 1 7.5 % + 15.9 “ + 1 0 6 .9 “ + 1 3 .5 “ + 22.8 “ + 15.1 “ + 18.2 “ + 1 1 .8 “ 0 % + 3 .8 “ + 8 2 .1 “ + 1.7 “ + 9 .6 “ + 1 .5 “ + 3 .8 “ + 9 .6 “ “ “ “ “ “ “ 2 2 3 0 2 9 0 9 9 0 5 i 5 8 3 2 4 8 roads were smaller than in the previous month. As compared with last year, nearly all items showed large increases. EM PLOYM ENT August, 1925 + 19.0 “ - 5 .7 + 11.9 “ + 2 .8 + 24.6 “ + 0 .8 0 .8 “ - 4 .2 + 15.4 * + 4 .7 + 3 5.6 “ + 0 .6 _ 1 2 2 5 2 AND WAGES A fter a period of industrial slackness in July, owing to the closing o f many plants for the observance of the holiday, vacation periods and semi-annual inven tories, employment and wage payments in Pennsylvania increased somewhat in August. The largest gains were reported by the metal manufacturers and textile groups. The building material and construction groups showed slight declines in employ ment, although total wage payments ad vanced somewhat, but the chemical group reported a slight decline in both employ Page Five ment and wage payments. The indus tries showing the largest gains were elec trical machinery, silk goods, woolens and worsteds, general construction, explosives and boots and shoes. This month there are no figures in cluded for the state of New Jersey, since the collection o f this information has been taken over by the Commissioner of Labor of that state. A complete report on employment and wages in the indus tries o f that state may be obtained from him. It is hoped that sometime in the near future some arrangement can be made to publish again these New Jersey figures, as well as those for Delaware, either by combining them in a threestate compilation as heretofore carried or as separate tables fo r each state. IR O N A N D S T E E L Very little change has occurred in the iron and steel industry in this district during the past four weeks. The demand continues as strong as it was last month and increased sales are noted in castings, hardware, machinery and tools. Jobbers, manufacturers and railroads are among the most active buyers at present, whereas purchases by public utilities, construction companies and foundries are a little slower. Commitments for future de livery still are scarce. Prices in this district are remarkably stable and are virtually the same as they were a month ago. In the country as a whole quo tations for pig iron also remain un changed, but prices o f finished steel ad vanced from 2.431 cents a pound on August 24 to 2.439 cents on Septem ber 21. during the first eight months of 1926 was about 12 per cent greater than in the same period last year. The output o f pig iron and of steel ingots in the United States from January 1 to August 31 was 7.7 and 10.5 per cent, respectively, above that in the corresponding months o f last year. Monthly comparisons are given in the following table: In gross tons (000’s omitted) Aug., 1925 July, 1926 Aug., 1926 Production in the II. S.—Pig iron ......................... 2,704 Steel ingots................... 3,421 Unfilled orders— U. S. Steel C o rp .......... 3,513 3,223 3,651 3,200 4,005 3,603 3,542 Iron foundries. Production o f iron castings in the Philadelphia reserve dis trict during August exceeded materially the July volume and that of a year ago. Shipments, too, were 7 per cent greater in August than in July but were a trifle below those in August, 1925. The physi cal volume of unfilled orders, on the other hand, was 5.1 and 8.4 per cent, re spectively, smaller than that in the pre ceding month and a year before. Details are as follow s: Iron foundry operations August, 1926 Change from August, 1925 C ap acity............... 10,961 tons 0 P roduction........... 5,635 “ + 1 2 .4 % Malleable iron . 562 “ + 8.1 “ Gray iron ......... 5,073 “ + 1 2 .9 “ J obbing........ 3,642 “ + 5 .5 “ F o r fu r t h e r m fr............ 1,431 “ + 3 7 .3 “ Shipments............ 4,983 “ - 0 .4 “ Value................. $662,563 - 4 .4 “ Unfilled orders. . . 4,767 tons - 8 .4 “ Value................. $776,634 + 0 .8 “ Raw stock Pig iron ............. 5,638 tons + 1 4 .7 “ “ - 0 .5 “ S crap................. 2,762 “ - 5 .8 “ C ok e.................. 1,721 Steel foundry operations Change from July, 1926 + + 4+ 0 6 .0 % 2 .9 “ 6 .4 “ 1 .8 - + 1 9 .9 + 7 .0 + 1 .2 - 5.1 + 0 .6 - “ “ “ “ “ 0 .5 “ 8 .8 “ 1 .9 “ Change from August, 1925 Change from July, 1926 12,240 tons 0 6,842 “ + 3 7 .3 % 5,130 “ + 2 9 .7 “ $769,050 + 1 7 .0 “ 4,784 tons + 5 2 .9 “ $936,769 + 4 3 .9 “ 0 - 2 .4 % - 3 .2 “ - 2 .3 “ -1 2 .4 “ - 8 .1 “ August, 1926 Source: Federal Reserve B a n t o f Philadelphia Stocks of both raw materials and fin ished goods are moderate. Production at plants reporting to this bank continues approximately at 80 per cent of capacity. The output o f pig iron in this district during August was a trifle below the July volume but exceeded that of a year ago by nearly 25 per cent. Production Page Six In thousands of net tons*f Per cent of change W eek ended 1925 Steel foundries. Foundries making steel castings in this district report that the volume o f production, shipments and unfilled orders during August was some what smaller than in July, but was con siderably greater than the volume reached in August, 1925. Details are as fo llo w s: Activity in steel works and rolling m ills has shown a greater expansion since the sum mer of 1924 than that in m etal industries as a whole. COAL Anthracite. Both domestic and steam sizes are in good seasonal demand, pur chases by dealers from all sections o f the country, except New England, being con siderably above last month’s volume. W ith the exception o f a few advances, prices remain unchanged from those of four weeks ago. Stocks o f anthracite are moderate. Mine operations in Pennsylvania continue virtually at capacity, and the supply of labor is sufficient. Weekly output in the country was as fo llo w s: C ap acity............... P roduction........... Shipments............. Value................. Unfilled orders*. . V alue*............... Raw stock: Pig iron ............. Scrap................. C ok e.................. 2,518 tons 7,482 “ 930 “ + 19.8 “ + 9 .4 “ -2 8 .5 “ - 3 .8 “ - 2 4 . 2 “ + 1.1 “ * Figures of one plant omitted. Aug. 2 1 ___ Aug. 2 8 . . . . Sept. 1 1 . . . . Sep. 18___ 2,155 2,263 434f 5f 9f 1926 1,782 1,999 1,951 1,690 2,003 - 17.3 11.7 * Compiled b y U. S. Geological Survey, t Beginning of the strike. Bituminous. Principally because of increased industrial activity and continued demand from abroad, the market for soft coal has improved substantially since August 15. As a result, the volume of output in recent weeks has increased con siderably. Stocks are not burdensome and the supply of labor in Pennsylvania is adequate. Weekly production in the United States is as fo llo w s: In thousands of net tons* Per cent of change Week ended Aug. 2 1 ___ Aug. 2 8 . . . . Sept. 4 . . . . Sept. 1 1 . . . . Sept. 18. . .. 1925 1926 10,522 11,133 10,827 9,983 10,880 10,533 11,217 11,002 10,257 11,442 + 0 .1 4 + 0 .7 5 + 1.61 + 2 .7 + 5 .2 * Source: The United States Geological Survey. The general trend o f quotations for soft coal is upward, Pool 10 selling in Philadelphia on September 20 at from $1.75 to $2 a ton as compared with $1.85 a month ago and $1.85 a ton on Septem ber 21, 1925. The “ Coal A ge” index, which stood at 165 on August 23 and 185 on September 21, 1925, rose to 181 on September 20, 1926. B U IL D IN G Building activities in this district are maintained at a moderate rate, and con struction costs, though about 2 per cent above the level o f a year ago, continue unchanged from those prevailing in July. Contracts awarded during August ex ceeded those o f July by 6 per cent and were 13 per cent over those of the year previous, as is shown by the accompany ing table. Contemplated building projects in this district amounted to $15,620,795 in August, a drop o f 19 per cent from the July total and of 3.5 per cent from that of a year ago. Contracts awarded Phila. Federal Reserve District United States (37 states) July, 1926.................... $35,155,000 37.483.000 39.767.000 $611,356,000 518,932,000 600,809,000 - 0 .2 % + 8 .3 % First eight months of 1926 compared with the same period of 1925.......................... * Source: Federal Reserve Board. Building materials. Reflecting quick ened building activity, gains over the vol ume o f four weeks ago are reported in the sale o f bricks, lumber, pottery and paint, although the current demand is not as active as in the same period last year. Bricks and pottery continue in strong re quest but the call for lumber and paint is only seasonally fair. The majority of current orders are for nearby delivery. Unfilled orders approximate the volume on the books thirty days before, and are sufficient to insure operations at the average rate o f over 70 per cent of capacity for a period ranging from two weeks in paint to eight weeks in the brick, lumber and pottery industries. Compared with last month’s output, pro duction of bricks, paint and pottery is a little larger, whereas a slight decrease is noted in the output of lumber. Stocks of bricks, lumber and pottery, though a bit heavy, are gradually decreasing. About half of the firms reporting to this bank state that prices remain fairly steady. Only in lumber are recessions noticeable. Bricks, paint and pottery con tinue to sell, in the main, at the same level as during the month prior to August 20. Resistance to prices o f bricks and lumber is rather strong, whereas in paint and pottery it is no more pro nounced than usual. Collections as a rule are prompt. T E X T IL E S Cotton. Since August 20 business in cotton yarns and piece goods has in creased greatly, as is indicated by more active demand, a larger volume of un filled orders, a higher rate of plant operations and increased mill takings of raw cotton. Sales generally, however, do not compare favorably with those for the corresponding period last year. Plants are working at from 75 to 80 per cent o f capacity. Producers have enough ad vance business on hand to assure their operations at this rate for an average period o f over two months. Stocks of finished goods, in the main, are not large. August cotton consumption in the coun try was about 9 per cent above that in July and exceeded that o f a year ago by more than 10 per cent. During the three weeks prior to Sep tember 20 prices o f piece goods and cot ton yarns were fairly steady; recently, however, quotations have eased off con siderably, owing chiefly to lower prices o f raw cotton. Resistance to prices is still prevalent. Collections are fairly prompt. Latest reports show that the prospect for this season’s cotton crop is good and the yield, although it may be below that o f last year, will be greater than that o f any other year since 1914. The official estimate as o f September 16 forecasts a production of 15,810,000 bales on an area of 47,207,000 acres. Last year’s yield totaled 16,103,679 bales. Ginnings to September 16 totaled 2,511,317 bales, compared with 4,282,066 bales a year before. Following this report cotton prices broke about $7 a bale, spot cotton selling on September 23 at 15.05 cents a pound as compared with 19.00 cents on August 24 and 23.65 cents a pound on September 24, 1925. The position of American cotton is shown below. American cotton* (thousands of bales) Season ’2 4 -’25 Visible supply at end of previous season (July 3 1 )................. Crop in sight on Sept. 2 4 .............................. T o t a l................... V is ib le s u p p ly on Sept. 2 4 ................... W o r ld ’ s ta k in g s to Sept. 2 4 ................... Season ’2 5 -2 6 Season ’2 6 -’27 952 1,125 2,279 2,008 2,978 2,169 2,960 4,103 4,448 1,737 2,399 2,703 1,222 1,704 1,744 * Source: The New York C otton Exchange Except for the war and post-war years, wages absorbed a larger share of construction costs than did materials. In 1925 labor costs con stituted 60 per cent as compared with about 55 per cent in 1914. Source: Bureau of Labor Statistics Silk. Gradual improvement in the market for silk manufactures and rawcommodities is indicated by most of the reports gathered by this bank, although sales during the past four weeks have not equaled the volume o f a year ago. A t present, the demand for fall mer chandise is more active than was the case the month previous. N o marked reduc tion is noted in the volume o f unfilled orders, and manufacturers of broad silks are now working at about 80 per cent of capacity, whereas the rate of operation at silk throwing plants averages slightly above 90 per cent o f capacity. While stocks of thrown silk remain moderately light, supplies o f finished fabrics are a trifle heavy as compared with stocks on the same date last month and the year be fore. T o avoid further accumulation, makers o f broad silks are limiting their output to orders on hand. Owing chiefly to the active demand for raw silk during the past six weeks, prices o f raw silk have strengthened consider ably. Quotations for finished goods gen erally continue firm at levels unchanged from those of a month ago. Collections are fair. Activity in the silk industry, as measured by im ports and American m ill takings of raw silk, has increased materially since 1923. Source: The Silk Association of America W ool. Active buying, increased em ployment and much heavier wage pay ments, quickened production and a larger volume of unfilled orders have charac terized the woolen and worsted market in the district since the middle o f August. Although sales still lag behind those of a year ago, the demand for woolen and worsted yarns and fabrics has been much more active than that in the month previ ous. Prices of manufactures, though showing a slight weakness, continue prac tically unchanged. Quotations for raw wool, however, are strong, many local dealers reporting advances of about 5 per cent during the past four weeks. Though prices of both domestic and foreign wools have been raised since September 1, those o f the former remain considerably below the prices o f foreign wool. Imports into the United States during August totaled 15,305,295 pounds as against 12,545,230 pounds in July and 34,448,589 pounds in August, 1925. August consumption of wool in this district was about 1 per cent smaller than in July but in the country was over 7 per cent larger. Both spinners and makers o f piece goods have increased their productive ac tivity, plant operations now averaging about 75 per cent of capacity. A t this rate, unfilled orders will insure produc tion for over four weeks in the spinning and for more than six weeks in the weav ing industry. Stocks of finished goods Page Seven and raw materials are comparatively light. Hosiery. The demand for seamless hosiery, at best, is fair, though many manufacturers usually find this an active period. Prices are about the same. Operations at reporting plants average 66 per cent of capacity. Orders on hand are sufficient to maintain this rate for one and one-half months. Stocks are said to be either moderate or light; in numerous instances they have declined in the past month. Full-fashioned silk hosiery for women is in fairly active demand and in most instances the call is as strong as it was last month. Prices are unchanged. Operations are close to capacity and few factories lack sufficient orders to main tain operations for three or more months. Floor coverings. Some manufac turers o f carpets and rugs report a slight improvement in business, though no great change for the better is ex pected until after the auction o f the Alexander Smith and Sons Carpet Com pany, scheduled for October first. Con trary to the usual practice o f this firm, the number of bales to be sold is not stated, a feature of the auction that at tracts the keenest attention of the trade. Other mills plan for openings on the days immediately following. Stocks o f finished goods are mod erate and plant operations show a con siderable increase. Prices are reported unchanged from last month. Manufacturers of linoleums and felt base goods report a good volume of business. C O N F E C T IO N E R Y The demand for confectionery is sea sonally active, sales exceeding greatly those of thirty days ago. Unfilled or ders also have increased, and at present are sufficient to insure plant operations at the current average rate of about 75 per cent of capacity for nearly four weeks. Stocks are not- large and are about the same as those of a year ago. the demand has improved over that o f last month and that unfilled orders are larger. Stocks again have decreased. Operations average 70 per cent of capacity. Unfilled orders for belting are in the same volume as last month, but stocks are said to be somewhat lower. Cur rent demand for belting is fair. Manu facturers o f luggage report good busi ness, which is said to be somewhat better than it was last month. Reporting plants are operating full-time and have sufficient orders in a number of instances to con tinue at this rate for two or three months. Fairly good demand is reported by shoe manufacturers. Stocks o f shoes have declined at many factories, in com parison with four weeks ago and with last year. The volume of orders on the books, too, shows a decrease, but the amount remaining is sufficient to main tain operations at nearly 70 per cent of capacity for almost one month. Production of shoes at 94 plants in this district increased 29.1 per cent from July to August, according to the D e partment o f Commerce. CIGARS A fairly good volume of business has been done in cigars during the past four weeks, although total sales are smaller than those in the same period o f last year. Unfilled orders have increased slightly, insuring plant operations at the present average rate of 80 per cent o f capacity for about one month. Compared with those on the same date last month and a year previous, stocks are un changed. Prices continue firm at the level o f the month before. C H E M IC A L S Business in chemicals generally con tinues very active, sales reaching a vol ume considerably above that of four weeks ago. Contract withdrawals, which are satisfactory, are increasing. Current orders for spot delivery, however, still Page Eight Since August 1 agricultural conditions in this district have improved materially, and the estimated production of all crops generally compares favorably with the average yield in the past ten years. The condition o f corn, oats and white potatoes, however, is somewhat below that o f the year previous, but the prospective yield of apples, peaches and pears is consider ably greater. The total crop o f sweet potatoes in this section also is said to be about 20 per cent in excess of last year’s production. Pennsylvania tobacco, the cutting o f which is now under way, is reported to be in danger of slight damage from wildfire and house-burn caused by the presence o f excessive moisture. Threshing of grains, though belated, has been satisfactory. The quality o f rye and winter wheat is not entirely up to the average, owing probably to fre quent rains during the harvest; in fact, some injury through molding and sprout ing in shocks has been noted in several sections. While recent rainfalls have stimulated the growth o f late hay crops and pastures, they interfered somewhat with the fall plowing and with the use of heavy harvesting machinery and sprayers. Livestock as a rule remain in fairly good condition and the number of hogs on farms equals that of a year ago. The farm labor supply continues rather short in some counties. In general, farmers expect to be in as favorable a position this year as they were last season, judging by the proceeds which are to be realized from the sale of farm products. Sept. 1 condition % normal L E A T H E R A N D SH O ES Following comparative quiet early in September, the third week has been fea tured by greater activity in the market for packer hides, but prices have changed little in the past four weeks. Domestic demand for goatskins is quieter than it was last month. Prices, on the other hand, are higher for some descriptions. Tanners of black kid generally report a satisfactory volume of business, though, in a few instances, demand is slightly below that of a month ago. For col ored kid, too, the call is fairly active. Prices o f kid leather are steady. Stocks have declined, but orders on the books are about equal to those four weeks back. Sole leather is moving in good volume. The majority o f the reports state that predominate. Prices in the main remain firm and unchanged from last month’s level, but they are a trifle below those o f a year ago. Operations in this dis trict generally approximate 75 per cent o f capacity, and the volume o f output is somewhat greater than that in the pre ceding month. Stocks are not burden some. A G R IC U L T U R E CROP ESTIM ATES Production in bushels * (000’s omitted) Crop Average 1926 Average harvest 1925 harvest 1926 forecast United States.................................... Pennsylvania..................................... Corn 77.1 86 7 3.8 85 2,8 4 9,18 9 65,526 2,9 0 5,05 3 72,471 2 ,6 9 7,87 2 61,600 United States.................................... Pennsylvania..................................... Oats 80.2 86 67.9 81 1,326,916 37,575 1,511,888 40,145 1,263,619 36,530 United States.................................... Pennsylvania..................................... New Jersey........................................ Potatoes 75.7 76 72 77.5 78 84 396,469 25,199 9,868 325,902 25,461 6,042 351,558 23,801 7,560 United States.................................... Pennsylvania..................................... Tobacco 7 8.8 86 8 1.0 86 1,289,699 58,386 1,374,400 57,400 1,306,494 45,692 United States.................................... Pennsylvania..................................... Apples 56.5 54 77.4 80 169,500 7,767 171,706 6,970 242,114 15,855 77 0 83 88 1', 856 1,740 2,772 New Jersey........................................ * T obacco in pounds. U “ U “
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