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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA * RESERVE DISTRICT OCTOBER i, 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 Volume of industrial and trade activity increased in August, and there was a further advance in wholesale commodity prices. Reserve bank credit outstanding increased in September reflecting in part seasonal demands for currency and credit. Money rates remained firm. Production. Production of both man ufactures and minerals increased con siderably in August, the output of manu facturing plants being larger than at this season of any earlier year. Automobile production was in record volume in August, and available information in dicates that output was maintained by pro ducers at a high level during September. Iron and steel production continued large in August and September and output of non-ferrous metals increased between July and August. Textile activity, which Jias been somewhat reduced in recent months, also showed a substantial in crease. Factory employment and pay rolls have increased since midsummer and in August were close to the levels a year ago. In the building industry there was evidence of recession in a sharp decline after the early summer in contracts awarded, which were in smaller volume during August than in the corresponding month of any year since 1924. In the first three weeks of September, however, Index numbers of production of manufactures and minerals, adjusted for seasonal variations (1923-25 average = 100). Latest figures, August, manufactures 114, minerals 105. awards were somewhat larger than last year. Estimates of the Department of Agriculture for September 1 indicate yields of principal crops will be larger than last year and above the average for the preceding five years. Trade. Distribution of commodities showed seasonal Increases in August al though sales in most lines of wholesale and retail trade did not equal the un usually large sales of August, 1927. Department store stocks increased as usual in August but continued smaller than a year ago, while inventories in several lines of wholesale trade were somewhat larger than last year. Freight car loadings were in about the same volume in August as a year earlier. Shipments of miscellaneous commodities and grains were larger and those of coal, livestock, and forest products smaller than last year. Prices. The general level of com modity prices increased in August and the Bureau of Labor Statistics’ index, at 98.9 per cent of the 1926 average, was the highest in nearly two years. In creases in August were chiefly in the prices of livestock and livestock products, which are now higher than at any time since 1920. There were also small in Monthly averages of daily figures for 12 Federal Reserve banks. Latest figures are averages of first 22_days in September. creases in fuels, metals, and building materials. Grains and cotton showed sharp declines, and there were decreases also in hides and skins and wool. Since the first of September there have been some declines in livestock and meats, and a sharp further decrease in cotton, while prices of pig iron, copper, and petroleum have advanced. Bank credit. Between the middle of August and the middle of September there was a considerable increase in the loans and investments of member banks in leading cities. Part of the increase was in loans on securities and part reflected a seasonal increase in other loans. De posits of the member banks also in creased during the period. Volume of re serve bank credit outstanding increased during the four weeks ending September 19 in response to seasonal demand for currency and growth in member bank re serve requirements. The increase in total bills and securities was largely in holdings of acceptances and in discounts for mem ber banks. During the same period there were further increases in open market rates on collateral loans and on commercial paper, while rates on bankers’ acceptances were reduced from 4^j per cent to 4j4 per cent. Federal Reserve Board’s indexes of value of building contracts awarded as reported by the F. W. Dodge Corporation (1923-25 average = 100). Latest figures, August, adjusted index, 111, unadjusted index, 126. Page One WHOLESALE PRICES Latest figure compared with BUSINESS INDICATORS Philadelphia Federal Reserve District August, 1928 Year ago Previous month Retail trade—estimated net sales (127 stores). Department stores (57)................................ Apparel stores (32)....................................... Shoe stores (22)............................................. Credit stores (16).......................................... Index of United States Bureau of Labor Statistics (1926=100, base adopted by Bureau). Latest figure, August, farm products, 107.0, non-agricultural commodities, 96.7. B U S IN E S S 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 Further evidence of substantial sea sonal expansion of business in the Phila delphia Federal Reserve District has ap peared during the last few weeks. Both industrial operations and commercial transactions have been in considerably larger volume than during the summer, while in many instances the volume of trade now exceeds that of last year. Factory employment in Pennsylvania showed a gain of 2.5 per cent from the July level while the number of employehours worked by reporting plants was nearly 10 per cent larger in August. Payrolls of reporting establishments showed a similar gain from July to August and in the latter month were only 2 per cent smaller than in the same period last year. The metal manufactur ing industries, which continue exception ally active for this period, showed an in crease of nearly 4 per cent in payrolls as compared with August, 1927. Among other groups of industries which enlarged their working forces in August were textile products, foods and tobacco, lum ber, chemical, leather and rubber prod ucts, and paper and printing industries. Production records of various industries in this district also indicate material im provement in operating conditions. In August large increases occurred in the output of shoes, hosiery, pig iron, iron and steel castings, anthracite and bitum inous coal, cement and electric power, and in the consumption of wool, while sales of electric power to industries in the district showed a gain of 6 per cent as compared with July and of 23 per cent as compared with last year. That further expansion of productive operations has taken place is evident from reports of state employment offices in Pennsylvania which show substantial improvement in the demand for industrial workers. Distributive activity has also increased considerably since mid-summer. Freight car loadings in the Allegheny district reached the highest point for the cur rent year in August and have not been exceeded since October, 1927, Loadings Page Two 0.5% _ — 0.6 “ —10.2% 11.4 “ — 4.9 “ —10.8 “ —10.0 “ + 0.4 “ *14,932,100 *11,834,100 *1,704,300 *493,300 $900,400 Productive activity: Employment— 811 plants in Pennsylvania. . . . Wage payments in above plants....................... Shoe production* (86 factories)......................... Hosiery production* (131 mills)........................ Wool consumption* (84 mills)........................... Active cotton spindle hours (Penna. and N. J .). Pig iron production............................................ Iron casting production (37 foundries)............. Steel casting production (10 foundries)............ Anthracite........................................................... Bituminous coal—Pennsylvania....................... Cement................................................................ Electric power output (12 systems)................... + 57.6 “ *8,551,900 *184,300 *1,439,000 *656,900 *390,600 *3,101,400 *1,573,000 *389,900 *816,800 Wholesale trade— net sales (124 firms). Boots and shoes (6)........................... Drugs (11)......................................... Dry goods (16)........... ...................... Electrical supplies (4)....................... Groceries (41).................................... Hardware (24)................................... Jewelry (11)....................................... Paper (11).......................................... 6.8 47.4 0.2 24.6 10.9 4.4 1.5 41.3 6.5 264,687 *6,804,857 prs. 1,401,518 doz. pr s. 1,389,624 lbs. 8,172,967 53,351,576 tons 296,285 tons 6,474 tons 5,513 tons 6,789,000 tons 10,296,000 bbls. 4,015,000 KWH 487,186,000 Distribution: Freight car loadings (Allegheny district—weekly average) Tonnage of vessels (Port of Philadelphia)....................... tons Financial and credit: Debits (17 cities)................................................................ Savings deposits (96 banks)............................................... Bills discounted held by F. R. B. of Phila. (daily average) Acceptances executed (8 banks for month ended Sep tember 10)....................................................................... Acceptances sold— 4 dealers— (weekly average for period ended September 12)...................................................... Acceptances outstanding (8 banks for month ended Sep tember 10).................................................................. Commercial paper sales (5 dealers)............................. Commercial failures— number..................................... Commercial failures—liabilities.................................. 215,165 3,750,048 + + + + + + + + + + “ “ “ “ “ “ “ “ “ + 2.5 “ + 9.1 “ + 17.8 “ + 14.9 “ + 26.0 “ 9.9 “ + 10.0 “ + 13.5 “ + 7.5 “ + 51.7 “ + 11.6 “ + 5.4 “ + 4.0 “ + 8.3 “ 0.1 “ *2,382,800,000 *687,772,000 *99,100,000 + *4,993,000 + 8.1 “ *1,083,000 - 13.4 “ — 7.4 0.3 “ “ 5.7 “ *14,026,000 *3,247,500 87 *3,149,500 + 1 .0 “ + 6.6 “ + 14.5 “ +130.4 “ *17,000,800 $33,967,400 - Building and real estate: Building permits (16 cities)......................................... Building contracts awarded (Philadelphia district). . Number of real estate deeds recorded (Philadelphia county)........................................................................ Value of mortgages recorded (Philadelphia county).. 4,778 *15,883,000 Miscellaneous: Sales of life insurance (Penna., N. J., and D el.).......... Retail sales of automobiles (11 distributors)............... Wholesale sales of automobiles (12 distributors)......... *83,229,000 *3,125,000 *5,523,000 _ 9.1 “ 17.7 “ 14.9 “ 52.4 “ + 4.4 “ _ 5.8 _ — —17.9 5.7 —16.9 + 11.7 + 1.5 8.2 —11.8 + 3.9 “ “ “ “ “ “ “ “ “ — 2.4 2.0 “ “ —17.6 “ + 16.7 “ + 8.1 “ 9.6 _ 12.4 “ “ + 0.9 “ 5.4 “ + 16.2 “ + + 0.7 “ 3.8 “ + 3.1 “ + 5.3 “ +150.3 “ + 3.5 “ + 16.0 “ + 25.9 60.7 + 61.1 + 184.8 - “ “ “ “ 7.5 “ 36.5 “ _ 4.4 “ — 45.6 “ 5.0 — 6.0 “ + 14.4 1 .0 “ — + 7.4 “ + “ “ 6.7 “ * Bureau of Census preliminary figures. of merchandise and miscellaneous com modities in the week ending September 1 were also larger than in any previous week in 1928. Wholesale trade in August showed improvement in all lines; the total volume was 6.8 per cent ahead of July, but nearly 5.8 per cent less than in August, 1927. Retail sales of report ing stores were only slightly larger than the July volume and were 10 per cent less than in August, 1927, which was an exceptionally active month. Check pay ments in the district, though considerably smaller than in July, exceeded the volume in August, 1927, by 3 per cent. Following a very active building season both in this district and in the country as a whole during the first half year, substantial declines have occurred recently in contract awards and building permits. Building permits in August were 7.5 per cent less than in the same month last year, while contract awards declined by more than 36 per cent. Real estate trans actions in Philadelphia, as number of deeds and value recorded, also showed large July and as compared with measured by of mortgages declines from last year. F IN A N C IA L C O N D IT IO N S Money rates continue very firm. Call money reached 9 per cent on September 20, the highest since July 2, and the renewal rate has averaged 7.39 per cent since the first of the month. Time money of ninety days’ maturity on September 21 was quoted at 7 ^ per cent, an advance of one per cent since August 22, and the highest since early in 1921. The highest point of brokers’ loans was 4,563 millions on June 6, but a subsequent reaction reduced this to 4,159 millions on June 27. Recent additions carried these loans up to 4,470 millions on September 19, an increase of 269 millions in four weeks. This expansion was the result of an increase of 420 millions in demand loans, and a decline of 151 millions in time loans. Commercial paper in the open market, affording a measure of the rate for busi ness funds, is quoted at 5 ^2 per cent, slightly higher than a month ago, but the offering rate for ninety-day bankers’ bills was reduced from 4$4 to 4 per cent. In Philadelphia the rates of large banks on customers’ prime commercial paper show a range from 5 to 5$4 per cent, as compared with 4% to 4 ^ per cent a year ago. The foreign gold movement at New York has been without feature since early in August, both imports and exports be ing in small volume. The cash reserves of the federal reserve system increased slightly in the four weeks from August 22 to September 19, but heavier note and deposit liabilities caused a decline in the reserve ratio from 69.6 to 66.9 per cent. Larger discounts and additions to the system’s holdings of purchased bills and United States securities raised the total of federal reserve credit to 1,560 mil lions, an expansion of 131 millions in four weeks. A t the end of August the bill and security holdings of the system were 460 millions larger than a year before. Mem ber bank reserve deposits and money in circulation declined in the year, but losses from the monetary gold stock of the country amounted to 463 millions. Borrowings of member banks from the Federal Reserve Bank of Philadelphia increased from 98.6 millions on August 22 to 118.5 millions on September 1, but receded thereafter and on September 19 were 104.2 millions. The reserve ratio declined from 61.1 to 59.2 per cent and the reserves of member banks increased nearly five millions. Federal Reserve Bank of Philadelphia Sept. 19, (Dollar figures in 1928 millions) Bills discounted for member banks in Philadelphia.......... $ 68.8 20 other large cities 22.4 Other communities 13.0 Total bills disUnited States secu- Changes in Four weeks One year + $7.2 + 1.2 - 2.8 +$54.6 + 13.7 + -9 + $ 5 .6 .8 +$69.2 + 2.1 22.2 + 1.3 - $139.2 Member banks’ re serve deposits........ 137.6 Total cash reserves.. 162.8 59.2% +$6.1 13.1 +$58.2 1.7 + 4.7 - 57.0 + 1.9 - 1-9% -2 1 .3 % Reports of member banks in the prin cipal cities of the country give evidence of the expansion in commercial loans usual at this season of the year, when crop marketing is increasing, retailers are adding to their stocks of goods, and manufacturers are enlarging their opera tions. In this district the commercial Allentown area.. . . Johnstown Lancaster Philadelphia Reading Scranton Trenton Wilkes-Barre Williamsport Wilmington York U U “ .. “ .... U U U U .. “ .. - 4.0% + 1.4 -1 4 .5 -1 1 .8 -1 0 .4 + 1.7 + 8.3 -1 4 .8 - 1.9 - 5.0 + 0.8 - 0.9 “ “ “ “ “ “ “ “ “ “ “ Wage payments - 5.7% Harrisburg + 3.1 “ -1 5 .4 “ -1 5 .3 “ -1 0 .0 “ + 4.0 “ + 3.8 “ -1 1 .5 “ - 2.5 “ + 14.5 “ + 1.2 “ 0.0 “ Value of building permits + + + + + + + - 72.9% 11.8 “ 0.1 “ 60.8 “ 38.6 “ 1.5 “ 27.0 “ 53.0 “ 114.0 “ 67.7 “ 103.9 “ 65.6 “ 20.4 “ Debits + 4.1% + 1 .9 “ 0.3 “ 6.0 “ + 8.9 “ + 3.6 “ — 2.7 “ — 6.0 “ + 9.4 “ 7.6 “ + 0.8 “ + 5.6 “ + 1 .5 “ Retail trade sales Electric power sales - 6.8 % - 8.8 “ + 3.7 “ - 8.9 “ - 7.5 “ -1 2 .0 “ - 7.3 “ - 9.3 “ - 9.3 “ -1 0 .1 “ ............% * + 12.7 “ +17.1 “ + 5.4 “ f + 3.8 “ + 10.7 “ +42.4 “ + 14.3 “ + 17.3 “ t ................§ ................§ + 17.3 “ - 6.5 “ Savings deposits + + + + + + + + + + + + 3.4 % 4.5 “ 0.7 “ 0.9 “ 17.3 “ 6.5 “ 0.6 “ 2.0 “ 9.9 “ 0.5 “ 1.3 “ 5.2 “ 1.4 “ + 10.0 “ Aug., 1928, compared with July, 1928 Allentown area... . Altoona “ .... Harrisburg “ ... . Johnstown “ .. . . Lancaster “ .... Philadelphia “ . . . . Reading “ ... . Scranton “ ... . Trenton “ .... Wilkes-Barre “ ... . Williamsport “ ... . Wilmington “ . . . . York “ .... + 4.4% + 1.4 “ + 2.8 “ + 0.9 “ - 2.7 “ + 3.0 “ + 1.7 “ + 13.8 “ + 1.8 “ + 0.3 “ + 3.7 “ - 0.4 “ - 1.4 “ + 8.7% + 0.8 “ + 10.0 “ - 2.4 “ - 2.2 “ + 4.4 “ + 9.3 “ + 15.0 “ + 10.8 “ + 2.3 “ + 10.7 “ + 3.2 “ - 0.8 “ - 56.0% +422.7 “ + 81.5 “ - 22.0 “ - 64.8 “ - 10.7 “ + 52.6 “ - 30.7 “ + 196.9 “ + 49.8 “ + 40.1 “ - 18.4 “ + 31.0 “ - 2.7% + 6.2 “ - 0.5 “ + 0.2 “ - 3.8 “ - 8.2 “ -1 6 .5 “ - 3.0 “ - 0.4 “ -1 0 .1 “ - 7.5 “ - 8.1 “ - 4.5 “ + 0.2% -1 .4 “ + 0.2 “ - 0.5 “ + 1.5 “ - 0.2 “ - 1.2 “ - 2.8 “ + 0.4 “ + 0.4 “ + 0.4 “ + 0.2 “ + 0.4 “ + 0.5% +15.6 “ + 1.8 “ + 8.7 “ -1 5 .1 “ + 1.6 “ - 5.8 “ - 8.6 “ - 9.6 “ - 8.0 “ - + 5.1% * + 1.8 “ + 6.1 “ + 5.8 “ f + 5.6 “ + 3.2 “ + 14.8 “ + 1.9 “ + 4.0 “ J ................§ ................§ + 2.3 “ + 6.7 “ 3.2 “ * Includes Wilkes-Barre and Williamsport areas, § Included in Allentown area. t Production (not sales). X Includes Camden area. loans of member banks in Philadelphia increased in the four weeks ending Sep tember 12 to the highest point in 1928, no doubt reflecting the rising rate of in dustrial activity, whereas last year, when business was slackening, such loans fell off. Outside of Philadelphia there was little change in these loans. Taking as a whole the reports of member banks in twenty-one cities of the district, there has been a small decline in loans on securities in the past month, but the total continues considerably in excess of a year ago. Third Liberty Loan bonds matured on September 15. Bonds of this issue to an amount of $361,963,500 were allotted to this district in 1918. From August 1 to Reporting member banks in twenty-one cities (In millions of dollars) Total loans and dis counts: Philadelphia*........ Outside Philadel phia f .................. Totals............ Investments: Philadelphia*........ Outside Philadelphiaf.................. Totals............ $104.2 12.8 Total bills and se- Aug., 1928, compared with Aug., 1927 CONDITIONS Philadelphia Federal Employ Reserve District ment Net demand deposits: Philadelphia*........ Outside Philadelphiaf.................. Totals............ Time deposits: Philadelphia*........ Outside Philadel phia t .................. Changes in Sept. 12, 1928 Four weeks 714.6 3.0 + 34.5 398.2 .7 + 20.9 1 , 112.8 3.7 + 55.4 305.0 5.1 + 10.5 218.2 .3 523.2 5.4 + 13.4 606.4 + 10.6 66.2 Totals............ * 34 banks, 2.9 5.2 860.8 + 18.5 71 .4 228.3 4.2 + 36.7 283.6 1.7 + 5.9 + 41-6 3.8 + 29.6 l-8t + 2.0 + 49.8 6.8 4.9 + Totals............ Other loans and dis counts: Philadelphia*........ Outside Philadel phia .................... + 7.9 254.4 + Totals............ Loans on securities: Philadelphia*........ Outside Philadel phia f .................. One year + + -6t 6.2 f 87 banks. J 72 banks. 4.9 20.2§ 2.3§ 2.6 § 69 banks. Page Three September 14, $3,802,500 had been retired by this bank by purchase or exchange for other Government securities. In this period funds to the credit of the Govern ment amounting to $26,200,000 were withdrawn from depository banks. An offering of nine months’ certificates of indebtedness as of September 15 was well received and allotments to the district totaled $37,721,700, of which $4,921,700 was given in exchange for Third Loan bonds and most of the balance was paid for by deposit credit. Cash redemptions of the bonds were heavy, totaling $47,403,350 from September 15th to the 19th inclusive, and necessitating the withdrawal of $21,000,000 from depository banks de spite the crediting of considerable sums representing the collection of income tax checks. Securities. Both stock and bond prices advanced in the month ended Sep tember 22, although an average of forty bonds was lower than it was a year earlier. According to the Standard Sta tistics Company, the yield on 15 highgrade industrial bonds in August was 4.96 per cent, higher than the return on 33 industrial common stocks. The Commercial and Financial Chroni cle reports $247,000,000 of new capital flotations in August (refunding ex cluded), as compared with $403,000,000 in July and $450,000,000 in August, 1927. In the first eight months of this year the total was $4,800,000,000 as against $5,057,000,000 a year earlier. Commercial paper. Sales of com mercial paper by dealers reporting to this bank increased slightly from July to August but continued well under those of a year ago. Total sales in the three months June, July, and August were less than a third of the total in the same months last year. The reports of five dealers are summarized below : Sales to city banks Sales to country banks Total sales 1928— A u g . ... $1,717,500 $1,530,000 $3,247,500 J u ly . . . 1,585,000 1,462,500 3,047,500 June.. . 1,175,000 1,155,000 2,330,000 M a y .. . 1,240,000 3,872,500 5,112,500 A p r... . 4,147,500 3,108,500 7,256,000 1927— A u g . ... 1,900,000 6,368,500 8,268,500 July. .. 3,0 9 9,50 0 7,317,500 10,417,000 EMPLOYMENT Aug., 1928 EMPLOYMENT AND WAGES in Pennsylvania All manufacturing industries (51)..................................... 811 Page Four change since change since Aug., ndex * Aug., 1927 July, 1928 - Aug., 1927 2.4 + 2.5 90.9 + 1.3 -2 9 .8 - 4.2 - 0.8 + 8.8 + 5.7 -1 4 .3 - 5.5 +10.4 +51.4 - 7.3 - 7.8 +34.1 + 3.3 - 0.7 + 1.3 + 12.0 + 4.7 + 2.3 + 27.6 - 1.3 - 1.2 +21.7 + 1.5 + 1.5 + 10.5 91.4 48.8 82.5 86.5 107.0 106.3 63.1 82.1 111.0 199.2 96.2 82.6 98.6 Transportation equipment.. . Automobiles....................... Auto, bodies and parts.. . . Locomotives and cars....... Railroad repair shops........ Shipbuilding...................... -1 9 .1 + 19.0 + 25.3 -2 7 .9 - 1.1 -7 2 .6 + - Textile products.................... 166 95.3 Cotton goods..................... 14 74.5 Woolens and worsteds. . . . 16 89.4 Silk goods........................... 40 101.9 Textile dyeing & finishing . 9 110.8 Carpets and rugs............... 10 77.8 Hats................................... 4 96.7 Hosiery.............................. 27 107.9 Knit goods, other.............. 15 84.3 Men’s clothing................... 11 89.3 Women’s clothing.............. 9 104.2 Shirts and furnishings. . . . 11 89.7 - 1.4 -1 9 .6 - 3.6 + 3.9 - 6.9 - 2.6 - 3.2 + 0.8 + 9.8 -1 9 .1 + 6.3 - 2.9 Foods and Tobacco.............. 103 99.6 Bread and bakery products 30 105.0 Confectionery.................... 14 90.1 Ice cream........................... 11 106.4 Meat packing.................... 14 93.4 Cigars................................. 34 102.9 + 1.4 - 4.8 - 1.0 +19.1 - 2.0 + 3.6 + + + + Stone, clay & glass products Brick, tile and pottery. . . . Cement.............................. Glass.................................. 66 30 14 22 86.1 91.9 87.6 85.7 - 7.0 - 6.3 -1 7 .0 + 4.5 + - Lumber products.................. Lumber and planing mills. Furniture........................... Wooden boxes................... 43 84.1 17 80.6 20 79.9 6 120.0 - 5 2 + 4.0 -1 5 .7 - 2.6 + + + - Chemical products................ Chemicals and drugs. . . . Coke................................... Explosives......................... Paints and varnishes. . . . Petroleum refining............ 48 95.1 28 88.3 3 118.4 3 118.3 9 122.1 5 85.3 Leather and rubber products Leather tanning................ Shoes.................................. Leather products, other.. Rubber tires and goods. . . Aug., 15, 1928 July, 15,‘ 1928 2.0 + 9.1 $25.71 $24.18 + 14.8 + 3.0 + 22.6 + 14.4 + 7.8 + 3.5 +33.1 + 1.0 + 1.8 + 23.7 + 6.9 + 3.1 +10.4 28.05 29.85 29.01 25.47 27.87 29.86 26.75 27.03 30.75 24.48 28.80 23.68 23.96 25.27 28.77 23.99 24.92 27.05 29.48 25.60 26.36 29.86 23.10 27.29 23.26 23.96 -2 2 .1 +31.1 + 20.5 -2 8 .0 - 7.2 -7 6 .3 + 1.4 - 1.8 + 3.2 + 2.2 + 12.4 -2 8 .8 28.30 29.33 30.75 27.56 25.93 22.73 27.66 28.81 31.19 26.54 23.07 26.44 + 3.7 98.0 70.5 + 0.9 86.2 + 0.9 + 12.0 101.2 - 3.1 121.1 74.3 - 3.6 96.7 - 0.6 - 2.0 126.7 + 16.3 84.6 90.7 - 4.3 - 0.3 104.7 82.7 + 2.5 - 3.2 -1 8 .6 -1 1 .3 - 0.1 0.0 - 5.5 - 5.8 + 5.0 + 19.3 -2 8 .2 + 7.7 - 7.2 + 7.5 + 3.4 + 2.4 +16.7 + 1-4 + 8.5 + 2.3 + 4.3 +18.2 - 1.6 + 11.5 + 1.0 21.23 21.99 20.39 18.22 26.10 24.11 25.49 26.25 17.76 21.48 14.36 14.86 20.50 21.46 20.09 17.48 24.90 21.40 24.74 24.72 17.46 20.93 12.84 15.08 3.2 1.4 0.3 0.6 1.1 7.1 98.0 99.5 97.0 114.2 89.5 97.9 - 2.4 - 5.6 + 0.2 + 19.7 - 4.7 + 4.5 + + + + 1.0 1.0 3.7 0.5 3.3 3.4 20.05 28.51 19.09 31.74 28.15 14.08 20.46 28.42 18.48 31.40 29.40 14.59 0.3 2.7 1.5 1.7 87.3 86.5 100.2 79.7 - 6.2 - 9.6 -1 2 .5 + 4.2 + + + + 9.0 5.2 10.5 9.9 27.68 23.38 33.24 24.97 25.31 22.80 29.63 22.33 7.3 86 3 6.6 83.7 11.9 81.5 0.3 134.3 - 7.0 + 1.0 -1 6 .4 - 0.4 + 12.7 + 4.5 + 22.7 +16.1 21.91 21.36 24.19 18.05 20.91 21.88 22.01 15.49 - 7.6 + 1.7 +16.3 - 5.9 -1 1 .1 -1 7 .9 + 1.9 103.1 + 0.2 91.3 - 1.1 120.4 0.0 100.0 + 1.8 124.5 + 4.2 95.5 + 1.5 + 2.2 + 14.2 - 5.6 -1 1 .1 - 1.5 + + + + + 3.7 0.4 5.4 1.6 11.0 2.8 28.98 27.55 28.71 23.37 26.33 30.54 28.48 27.75 26.92 22.98 24.15 30.94 51 97.8 17 104.1 23 90.9 7 105.8 4 79.7 - 0.6 + 2.8 - 3.0 -1 2 .1 - 8.7 + + + - 0.7 1.3 2.9 6.4 0.3 103.8 109.5 94.2 97.2 95.7 - 0.3 + 6.1 - 9.0 -1 2 .6 -1 1 .1 + + + + + 3.6 1.2 8.5 8.5 1.8 23.22 25.86 18.36 21.15 29.38 22.57 25.23 17.41 20.73 28.81 Paper and printing.............. Paper and wood pulp. . . . Paper boxes and bags. . . . Printing and publishing.. 57 93.2 13 85.2 6 93.7 38 103.5 + + + + + 2.1 0.6 6.4 2.7 104.5 96.5 107.8 113.0 + + 1.1 2.3 3.0 4.8 + 3.2 + 4.6 +13.7 + 1.3 29.49 29.11 14.98 32.54 29.13 27.99 14.02 32.97 Construction & contracting. Street railways.................... Retail trade......................... Wholesale trade................. 107.0 34 104.4 5 95.3 60 91.4 95 95.3 - 8.6 - 4.0 - 1.4 - 2.9 - 3.3 + 1.8 + 12.9 -i- 0.7 - 3.3 - 0.5 86 5 92.2 101.4 - 4.4 8.1 2.1 + 39.5 + 14.7 + 3.7 28.74 25.98 34.38 20.50 25.67 33.38 * 1923-1925 average=100. 68.4f 90.8 87.7 57.7 82.6 21.2 1.5 4.7 3.1 2.3 0.9 3.5 4.7 1.5 0.0 -1 7 .2 66.5f 92.3 83.3 55.0 80.9 16.6 - July, 1928 + 3.9 -2 8 .2 + 1-6 - 0.8 + 3.1 + 6.4 -1 7 .8 - 9.8 + 13.0 + 46.9 - 2.9 - 4.3 + 19.7 40 6 11 13 6 4 88.7 AVERAGE W EEKLY EARNINGS week ended PAYROLLS Aug., 1928 Metal products..................... 237 87.0 Blast furnaces................... 9 45.2 Steel works & rolling mills 44 77.2 Iron and steel forgings. . . . 10 82.3 Structural iron work ....... 10 105.9 Steam & hot water htg. ap. 17 96.8 Stoves and furnaces.......... 9 67.5 Foundries........................... 40 82.3 Machinery and parts........ 40 102.6 Electrical apparatus.......... 17 184.7 Engines and pumps.......... 10 90.2 Hardware and tools.......... 20 80.8 Brass and bronze prods. . . 11 109.3 IN D U S T R IA L C O N D IT IO N S Industrial activity in this district is broadening seasonally at a somewhat more rapid rate than was the case at the same time last year. New business in manufactures has increased sharply since last month, and plant operations are undergoing a corresponding expan sion. In comparison with a year ago, however, the aggregate volume of busi ness is still smaller, while that in the country as a whole is larger. But this difference is gradually disappearing, as No. of slants re port Aug., ing ndex* t Preliminary figures. shown by numerous favorable compari sons with the amount at the same time last year. The effect of the current firmness in the money market on business generally thus far has been mainly psychological. There is at present no conclusive evi dence to suggest that the prevailing high money rates have interfered to any mate rial extent with the seasonal improve ment usually in progress at this time of the year. EMPLOYMENT IN in PENNSYLVANIA UNITS OF STANDARD DEVIATION Manufacturing. The demand for fin ished products is active and sales have increased substantially since the middle of last month. Nearly all groups of manufacturing industries are experienc ing a marked recovery from the summer slackness, which was somewhat more pronounced than that in the country at large. The market for fabricated iron and steel products continues unusually well sustained, buying by foundries, manu facturing plants, construction companies, and jobbers being larger than last month. Purchasing by railroads also is active while that by public utilities shows no appreciable change. The demand from the automobile industry is increasingly strong. Quotations for these products are firm and show numerous increases. Business in textiles has turned sharply for the better, despite some unsatisfac tory spots. While sales generally do not yet offer a favorable comparison with those of a year ago, they show a remark able gain during the month, the largest increases being noted in the demand for cotton, woolen and worsted, and silk piece goods, hosiery, and floor coverings. Except for some advances on wool yarns and declines on cotton and silk goods, prices of textile products remain steady. The shoe and leather market continues strong. Sales of shoes have increased further in the month and are well ahead of a year ago. The demand for colored kid also has increased, while that for black kid shows little change. Pro nounced seasonal gains, too, are reported in the buying of leather goods. Producers of building materials, par ticularly glass, paint, and pottery, continue to report a good volume of business, showing a further increase since last month, though barely comparable with a year ago. Prices of building materials for the most part remain unchanged. Advance business on the books of re porting manufacturers has increased mate rially in the month, and generally com pares well with the volume of a year ago, most of the textiles and building materials being the exceptions. The majority of the reports indicate that plants have a sufficient amount of business to assure operations at the present rate for from one to two months. Unfilled orders of the United States Steel Corporation on August 31 totaled 3,624,043 tons, an in crease of 1.5 per cent from the previous month and of 13.4 per cent as compared with that on the same date last year. Reflecting continued activity in building, new orders for fabricated structural steel in the country during August were 95 per cent of capacity as against July orders of 79 per cent of capacity and 73 per cent a year ago. As a consequence of the larger de mand, the volume of output has increased and plant operations have expanded no ticeably since the middle of last month. The improved labor situation, the in creased consumption of fuel and electrical energy, and larger mill takings of raw materials afford additional evidence of current expansion in productive activity. It is significant to note that the demand for workers by employers recently has increased more than usual, the ratio of positions available to applicants in Penn sylvania rising nearly 6 per cent from July to August and almost 35 per cent as compared with a year earlier. Factory employment in Pennsylvania also increased 2.5 per cent and wage pay ments 9.1 per cent in the month, prac tically all reporting groups sharing in these gains. Last year at the same time, payrolls increased only 4.6 per cent, while employment registered a decline of two-tenths of one per cent. While the number of workers and the volume of wages paid still remained about 2 per cent smaller than a year before, the dif ference in the level of the two years was reduced considerably between July and August. In New Jersey, the number of wage earners likewise increased at a slightly higher rate than in August, 1927, but payrolls showed a gain of only 2.5 per cent as against 3.5 per cent last year. W age disbursements in Delaware in creased about 3 per cent in the month as compared with a gain of less than one per cent a year earlier, and employment declined only 1.6 per cent as against a drop of 2.4 per cent in August, 1927. The use of electrical energy by indus tries was over 6 per cent larger in August ELECTRIC POWER Philadelphia Federal Reserve District 12 systems July, 1928 Rated generator capacity. . . . + 28.4% + 1-2% Generated output................... Hydro-electric..................... Steam................................... Purchased............................ + 16.2 +803.9 - 20.9 + 22.1 Sales of electricity.................. Lighting............................... Municipal........................ Residential and commercial................................ Power................................... Municipal........................ Street cars and railroads . Industries......................... All other sales..................... + 19.2 “ + 2.7 “ + 19.2 “ + 2.7 “ + 11.1 “ +14.1 “ + 20.5 + 12.7 +292.0 + 3.6 + 23.0 + 48.6 “ “ “ “ “ “ “ “ “ “ + 4.0 -3 1 .8 + 45.3 -1 4 .5 + 1.2 + 5.7 + 16.5 + 2.5 + 6.1 - 8.8 Iron and steel Daily output Aug., 1928 (gross tons) Change from Aug., 1927 “ “ “ “ “ “ “ “ “ “ 8 mos., 1928, com pared with 8 mos., 1927 Pig iron— United States.......... 101,180 + 6.4% - 2.8% Phila. Fed. Reserve District................ 9,558 + 16.7 “ -1 2 .6 “ Steel ingots— United States.......... 154,759 +19.4 “ + 7.0 “ Source: Iron Age. Iron foundries showed a substantial gain in the volume of output, shipments and unfilled orders during August as compared with the previous month and a year earlier, according to reports received by the Department of Industrial Research of the University of Pennsylvania. Pro duction and shipments of steel castings also increased in the month but were smaller than in August, 1927. Unfilled orders declined both from the July vol ume and from that of a year before. Foundries in the Philadelphia Federal Reserve District Aug., 1928, change from Aug., 1927 than in July and 23 per cent greater than in the same month last year. Total sales of electricity increased about 3 per cent in the month and over 19 per cent in the year. Production of electric power by 12 central stations was 4 per cent larger than in July and surpassed the amount generated a year earlier by over 16 per cent. Operations of plants making iron and steel products have increased nearly 8 per cent during the month, the present rate being about 70 per cent of capacity. The daily output of pig iron in this dis trict showed a gain of 10 per cent from July to August and was the largest since the spring peak reached in April. Pro duction in the country also increased about 2 per cent in the month and was the second largest for August since 1923. The daily output of steel ingots, too, was almost 2 per cent greater than in July and exceeded the amount shown for any August during the past seven years. Fur ther details follow : Per cent change since Aug., 1927 July, 1928 Iron castings— Production (37 firms)................... + 8.1 + 13.5 Shipments (34 firms).................... + 0.7 + 8.7 Unfilled orders (23 firms)............ +37.8 + 9.8 Steel castings— Production (10 firms)................... Shipments (10 firms)................... Unfilled orders (9 firms).............. - 9.6 + 7.5 5.8 + 9.3 9.3 -1 4 .4 Source: Department of Industrial Research of the University of Pennsylvania. Virtually all of the leading branches of the textile industry show a definite ex pansion in plant operations, the average rate for the entire industry being about Page Five 75 per cent of capacity as against 70 per cent last month. W ool consumption in this district was 26 per cent larger in August than in July, and mill takings of wool fibers by plants making carpets and rugs increased almost 51 per cent in the month. Total consumption of wool in the country also increased more than 17 per cent. Mill takings of American cotton, though still substantially below the volume of a year ago, were nearly 19 per cent greater than in July. Official estimates of the new cotton crop as of September 1 indi cate a production of 14,439,000 bales as against an estimate of 14,291,000 bales a month before and an actual yield of 12,955,000 bales last year. The silk industry continues active, as shown by a higher rate of operations and larger deliveries of raw silk to mills. The movement of silk fibers in the coun try follow s: tion of glass, paint, and cement, however, has increased during the month, but has not come up to the volume of a year ago. In response to the demand from construction companies, shipments of fabricated structural steel in August rep resented 80 per cent of capacity as against 72 per cent in July and 76 per cent a year earlier. in July and about 8 per cent below that of a year earlier. Construction costs show no change. The following table indicates building activity thus far this year: Aug., Change 1928 from Building Operations (000’s Aug., omitted) 1927 Contract awards— P h ila . F e d . R es . Dist.: Total................... $33,967 Residential.......... 16,038 United States: Total................... 516,970 Residential.......... 213,705 8 mos., 1928 com pared with 8 mos., 1927 -3 6 .5 % - 0.7% + 4.0 “ + 26.0 “ - 6.4 “ + 6.4 “ + 2.0 “ + 16.1 “ Permits issued— P h ila . F e d . R e s. Dist. (16 cities) 17,001 - 7 . 5 “ United States (575 316,004 -1 0 .8 “ 0 .5 “ Sources: F. W. Dodge Corp. and S. W. Straus & Co. Raw Silk (in bales) Aug., 1927 July, 1928 Aug., 1928 Imports..................... Storage (warehouses) Mill takings.............. 59,819 56,618 47,042 36,670 38,866 40,931 62,930 50,975 50,821 Business in real estate shows a much smaller volume than last month or a year ago. The value of mortgages recorded in Philadelphia decreased 52.4 per cent in the month and was 45.6 per cent less than last year. The .number of deeds recorded also was lower than of the previous month and year. Properties of fered at sheriff’s sale increased materially during August and nearly doubled the volume of a year before. Source: The Silk Association of America, Inc. Both seamless and full-fashioned hosi ery show considerable increase in plant activity during the past four weeks. P ro duction of all hosiery in this district was nearly 15 per cent larger in August than in the preceding month. The output of shoes shows a further gain, and in August production in this district increased almost 18 per cent as compared with the month before. Leather plants also register a considerable im provement. The cigar and paper indus tries are increasingly active, as usual at this season. Stimulated by the general betterment in manufacture, particularly in textiles, chemical plants report a noticeable im provement in the volume of production, which now is at about 80 per cent of capacity, although prices for finished products have declined somewhat in the month. No pronounced change is noted in the output of building materials. Produc Source: Geological Survey. Page Six Inventories carried by manufacturers in this district generally are light and have decreased appreciably since the end of last month. Compared with a year ago, supplies of finished goods as a rule are smaller. Stocks of raw materials natu rally have increased somewhat, as is customary at a time of rising level of productive activity. Building and real estate. Building operations show a downward tendency, as was the case at the same time in past years. The value of contracts awarded during August declined nearly 18 per cent and was almost 37 per cent less than a year before. Similarly, the value of building permits issued in 16 cities of this district was 9 per cent smaller than Coal. The market for anthracite has improved seasonally since last month, and prices are somewhat firmer than four weeks ago. Production in the four weeks ended September 15 totaled 5,984,000 tons, a gain of nearly 19 per cent over the previous four weeks but a loss of about 13 per cent from the total for the same period last year. Business in bituminous coal also shows a pronounced recovery, although current conditions are still far from being satis factory. Prices have been advanced in •several instances. Production in the country in the four weeks ended Sep tember 15 totaled 37,824,000 tons, an in crease of 6 per cent as compared with the preceding four weeks but a decrease of less than one per cent from the total for the corresponding period last year. Agriculture. Recent weather condi tions on the whole have been favorable to agricultural operations in this district. The growth and maturing of late crops generally have been more satisfactory than last year. The yield of these crops is estimated to be larger than the average for the past ten years. Production of peaches in Pennsylvania is greater but in New Jersey is smaller this year than last. The condition of livestock compares more than favorably with the average for September, and the number of hogs shows practically no change from that of a year ago. The supply of farm labor is suf ficient and wage rates remain about at the same level as last year. Early esti mates by county agents indicate that the proceeds realized from the sale of farm products this year will be somewhat smaller than was the case last year, ow ing largely to lower prices on products raised in this district. Crop Estimates (Figures in thousands of units) 1927 yield Phila. Fed. Res. Dist. Corn............... bus. Wheat......... “ Oats............ Potatoes. . . . . “ H ay.............. Tobacco....... . .lbs. 45,929 18,761 24,844 25,998 3,664 44,880 Estimate, Per Sept. 1, cent 1928 change 47,939 16,483 23,023 30,621 3,058 47,040 + 4.4 -1 2 .1 - 7.3 +17.8 -1 6 .5 + 4.8 United States: Corn............. .bus. 2,773,708 2,930,586 Wheat........... 872,595 901,072 Oats.............. . “ 1,184,146 1,453,829 Potatoes........ . “ 406,964 466,815 H ay.............. 123,794 87,859 Tobacco....... 1,195,880 1,371,782 + 5.7 + 3.3 +22.8 +14.7 -2 9 .0 +14.7 D IS T R IB U T IO N Railroad shipments of merchandise and miscellaneous commodities in the Alle gheny district, as in the country, have in creased sharply in recent weeks, reaching the largest volume since the late fall of last year. Freight car loadings of all commodities show similar gains. Domestic and foreign shipments by water to and from the Port of Philadel phia in August increased about 4 per cent as compared with the tonnage of a year earlier. The rate of gain in foreign trade was noticeably higher than that in coast wise and intercoastal shipments. Wholesale trade. The wholesale market is seasonally active, and sales have increased appreciably in nearly all lines since the middle of last month, ac cording to preliminary reports. The largest gains in demand are noted in shoes, dry goods, groceries, jewelry, and paper. Prices continue firm and un changed, except for some advances in groceries. Sales during August showed a gain of nearly 7 per cent as compared with those for the preceding month and of about 6 per cent from the volume in the same month last year. All lines reported sub stantial increases in the month, but only electrical supplies, paper, and groceries registered gains over a year earlier, sales of the remaining five lines being smaller. Inventories carried by wholesalers gen erally were smaller than at the end of August, 1927. Most lines showed a larger volume of accounts outstanding in August than in the month before; this is also true in three out of seven lines as com pared with a year before. Collections de creased during the month, except in electrical supplies and groceries. Retail trade. Early reports indicate that retail trade is fairly active, although August, 1928, change from AUTOMOBILE TRADE Philadelphia Federal Reserve District 12 distributors July, 1928 August, 1927 Number Number Value - 1.6% - 2.0 “ -6 5 .1 “ -1 0 .6 “ + 68.4 “ + 22.7 “ Sales, new cars, wholesale..................................... Sales, new cars, at retail....................................... Stocks of new cars................................................. Sales of used cars................................................... Stocks of used cars................................................ Retail sales, deferred payment............................. Value + 6.7% -1 4 .4 “ -3 6 .7 “ - 4.6 “ + 42.2 “ + 36.2 “ - 2.4% - 6.4 “ -5 6 .0 “ -2 7 .7 * + 3.0 “ + 14.7 “ + 7.4 % - 1.5 “ -3 1 .5 “ -2 0 .3 “ + 4.3 * + 26.4 “ turnover month. no pronounced improvement in sales has been noted since the middle of last month. Except for some advances in leather products, retail prices remain unchanged. Sales in August, while increasing slightly from the preceding month, were about 10 per cent smaller than in August, 1927, when retail sales reached an un usually large volume for that month. With the exception of credit and shoe stores, and men’s apparel stores outside of Philadelphia, all lines experienced a noticeable decline. Of eleven city areas only Harrisburg and Wilmington showed gains. Sales in the first eight months of this year were nearly 4 per cent less than in the same period last year. Inventories carried by retailers in creased seasonally, but were smaller than at the end of August, 1927. The rate of Comparison of stocks 1927 Accounts Collec receiv tions able during at end of month month com com pared pared with with year ago 1928 year ago Rate of turnover, Jan. 1 to Aug. 31 Jan. 1 to Aug. 31, 1928 Aug. 31, 1928, with with with Jan. 1 to Aug. 31, July 31, Aug. 31, 1927 1928 1927 Aug., 1928, with Aug., 1927 in the Automobile trade. Retail sales of new passenger cars during August by 12 distributors in this district declined both in number and value as compared with the preceding month and a year be fore, but deferred payment sales showed a marked gain over a month and year earlier. Business in used cars declined sharply. Wholesale sales decreased in number but not in value from July to August, and showed similar changes as compared with the same month last year. Stocks of new cars at the end of the month were much smaller than a month and a year before, while inventories of used cars showed a gain especially pronounced as compared with August, 1927. Comparison of net sales RETAIL TRADE Philadelphia Federal Reserve District showed little change All reporting stores................... -1 0 .2 % - 3.9% - 5.3% + 3.7% 2.13 2.13 Department stores..................... in Philadelphia....................... outside Philadelphia.............. Apparel stores............................ Men’s apparel stores............. in Philadelphia................... outside Philadelphia.......... Women’s apparel stores........ in Philadelphia................... outside Philadelphia.......... Shoe stores............................... Credit stores............................... -1 1 .4 “ -1 3 .8 “ - 6 .4 “ -1 0 .8 “ - 5 .6 “ - 8 .7 “ + 1 .8 “ -1 2 .6 “ -1 2 .8 “ -1 1 .5 “ + 0.4 “ + 4.4 “ - 4 .8 “ 5 .6 “ 2 .9 “ - 6.2 “ + 2.0 “ 8 . 0 “ + 1 .3 “ 2.2 “ + 3.3 “ 2.05 2.14 1.83 2.05 2.16 1.79 1.77 2.00 1.39 4.51 4.79 3.00 1.80 1.59 1.79 2.08 1.34 4.28 4.63 2.65 1.84 1.81 WHOLESALE TRADE Philadelphia Federal Reserve District Boots and shoes... Drugs................... Dry goods............ Electrical supplies Groceries.............. Hardware............. Jewelry................. Paper.................... Net sales, Aug., 1928, com pared with Aug., 1927 July, 1928 -1 7 .9 % - 5 .7 “ -1 6 .9 “ +11.7 “ + 1.5“ - 8.2“ -1 1 .8 “ + 3.9 “ + 47.4% + 0.2 “ + 24.6 “ + 10.9 “ + 4.4 “ + 1.5 “ + 41.3 “ + 6.5“ - 4 .8 “ - 4 .3 “ - 5.9 “ - 2.7 “ - 2.9 “ - 0.1 “ + 13.8 “ - 1.1 “ -1 0 .5 - 8.9 -1 2 .8 + 5.8 + 3.6 + 16.7 + 2.5 + 0.7 Stocks, Aug. 31, 1928, compared with Aug. 31, July 31, 1927 1928 - 9.8% -1 4 .7 “ - 2.3 “ - 3.4 “ + 2.3 “ + 1.8“ + + - 6.3% 1.4 “ 0.6 “ 2.4 “ 0.9 “ 1.9“ “ “ “ “ “ “ “ “ + 26.0 + 37.0 + 12.3 + 31.0 + 27.2 + 51.6 + 0.3 - 0.1 “ “ “ “ “ “ “ “ Accounts out standing, Aug., 1928, com pared with Aug., 1927 July, 1928 - 5.2% + 7.0% - 1 . 8 “ + 3.5 “ - 1 . 8 “ + 3.1 “ - 3.4 “ + 6.2 “ + 0.3 “ - 4 . 4 “ - 0.9 “ + 4.3“ + 5.8“ + 14.4 “ + 4 . 3 “ Ratio of ac counts out stand ing to sales, Aug., 1928 350.6% 167.3 “ 268.0 “ 163.3 “ 115.7 “ 209.8 “ 393.9 “ 151.9 “ + 9.0% + 0.2 % + 1 .7 “ + 1 .3 “ + 15.8 “ + 5.6 “ + 2 . 0 “ + 4.8 “ - 0.7 “ - 6 . 3 “ Collections, Aug., 1928, compared with Aug., 1927 July, 1928 + 0.1% - 4.6% + 0.1 “ - 3.6 “ -1 4 .3 “ - 2.1 “ + 12.8 “ - 6.3 “ + 8.1 “ - 8.9 “ - 2 . 5 “ + 8.7 “ -2 3 .3 “ + 1 . 8 “ - 3.5 “ Page Seven C O M M O D IT Y P R ICE S Wholesale commodity prices during the first three weeks of September remained practically at the same level as that pre vailing during August. Fisher’s index, at 99.9, virtually showed no change from the average in August, but was more than four per cent higher than in September, 1927. The general level of prices, as com puted by the Bureau of Labor Statis tics, advanced more than one-half of one per cent from July to August and was nearly 4 per cent higher than in the corresponding month last year. Among farm products grains declined sharply, while livestock and poultry advanced. Foods also increased appreciably, on the average, but flour declined. Hides and skins decreased materially. Cotton and wool goods also showed a downward tendency. Soft coal and petroleum prod ucts increased, as did most metals and metal products. Building materials, chemicals and drugs, arid housefurnish ing goods registered little change. Retail food prices increased a little less than one per cent from the middle of July to the middle of August, and were slightly more than one per cent above the level of a year earlier. Compared with the pre-war figures, retail food prices were nearly 53 per cent higher in the country, and 60 per cent higher in Philadelphia. Index numbers of wholesale commodity prices (1926=100.0) Aug., 1927 All commodities............. 95.2 98.3 98.9 Farm products................ 102.2 Foods.............................. 94.2 Hides & leather products 111.7 Textile products............. 96.2 1 uel and lighting............ 84.1 Metals and metal products.............................. 98.0 Building materials.......... 92.9 Chemicals and drugs. . . . 95.4 Housefurnishing goods. . 98.6 Miscellaneous................. 89.9 Raw materials................ 97.5 Semimanufactured articles............................... 97.3 Finished products.......... 93.4 N onagricultural com modi ties....................... 93.3 107.1 102.3 124.2 96.8 82.8 107.0 104.1 121.0 96.3 84.6 98.6 94.4 94.5 96.9 80.8 99.5 100.4 94.6 94.7 97.2 79.3 99.2 97.8 97.8 97.3 99.1 95.9 96.7 July, 1928 Aug., 1928 BUSINESS CONDITIONS IN THE PHILADELPHIA FEDERAL RESERVE DISTRICT Prices Retail trade.................. Wholesale trade.......... Drugs ........................ Unfilled orders com pared with a year ago Demand Generally unchanged Fairly active Unchanged Little change Little change Some advances Unchanged Jewelry ..................... Paper ........................ Unchanged Unchanged Unchanged Slightly higher Fairly active; little change Fair, increased Fair, little change Active; increased Fairly active; little change Fair; increased Active; increased Fair; increased Active; increased Some declines Fair; increased Little change Silk ............................... Lower Fair; increased Little change Wool ............................. Some advances on yarns Fair; increased Little change Hosiery......................... Little change Fair; increased Little change Larger Smaller Slightly larger Smaller Smaller Smaller U. S. Steel Corp. larger Little change Fair; increased Smaller Some advances Active; increased Larger Little change Active; increased Little change Some advances Colored kid more active than black; increased Fair; increased Larger Little change Little change Little change Fair; increased Larger Lower Active; increased Larger Little change G ood; increased Larger Some declines Carpets and rugs.......... Fair; some declines Smaller Little change Fair to poor; Little change Active; increased Smaller Little change Fair; increased Little change Higher Active; increased Some advances Fair to poor; increased Page Eight Stocks Increased in the month but smaller than year ago Dry goods................. Electrical supplies.. Groceries .................. Hardware .................. Iron and steel products Operations declined Smaller Increased; 70% of capacity Increased; 65% of capacity Some gain; about 70% of capacity Increased; 70 to 80% of capacity Increased; 95% for fullfashioned and 60% of capacity for seamless Increased; 75% of capacity Increased; 75% of capacity Increased; 80% of capacity Increased; 85% of capacity Little change; 65% of capacity Increased; 90% of capacity Increased; 80% of capacity Increased; 90% of capacity Decreased; over 70% of capacity Decreased; 75% of capacity Some gain; 80% of capacity Decreased; 70% of capacity Increased; 80 to 85% of capacity Increased; 50% of capacity Smaller Smaller Smaller Smaller Smaller Smaller Smaller Smaller Smaller Larger Smaller Smaller Smaller Smaller Smaller Smaller Smaller Little change Little change
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