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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA t RESERVE DISTRICT OCTOBER i, 192.9 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 Production in basic industries increased somewhat in August as compared with July, but the increase was less than is usual at this season, with the consequence that the Board’s index of industrial pro duction, which makes allowance for usual seasonal changes, showed a decline. Wholesale prices declined slightly. Credit extended by member banks increased be tween the middle of August and the mid dle of September, reflecting chiefly a growth in commercial loans. Production. During the month of August there was a reduction in the out put of iron and steel and copper, and a slight decline in the production of auto mobiles. Meat packing establishments were also somewhat less active during the month, while seasonal increases were re ported in the production of lead, tiles and shoes. Coal and cement, flour and sugar, and petroleum output continued to expand. A slight increase in the number of workers employed in factories was ac companied by a substantial increase in payrolls. This increase was especially notable in industries manufacturing prod ucts for the autumn retail trade, such as clothing and furniture. For the first two weeks of September reports indicate further decline in steel operations, reduction in lumber output Ind ex n u m b e r of p roduction of m a n u fa c tu re s an d m in erals co m b in ed , a d ju ste d for seasonal variations (1923-25 average = 100). L a te st fig ure A u g u st, 123. resulting in part from the Labor Day holiday, and a continued seasonal rise in coal production. In the construction industry, contracts awarded in August were 25 per cent less than in July, reflecting a sharp decline in the residential group as well as in con tracts for public works and utilities which were unusually large in July. As com pared with last year, contracts were 5 per cent lower in August, but in the first two weeks of September they were in approximately the same volume as in 1928. Agriculture. The September report of the Department of Agriculture indi cates a corn crop of 2,456,000,000 bushels, 13 per cent less than 1928 and 11 per cent under the five year average. The esti mated wheat crop of 786,000,000 bushels is substantially below last year, but only slightly less than the five year average. Cotton production, estimated on August 1 at 15,543,000 bales, is now expected to total 14,825,000 bales, slightly above last year. comparison with 1928, total car loadings showed an increase of 5 per cent. Sales of department stores in leading cities were larger than in July and about 5 per cent above the total of August, 1928. Prices. Wholesale prices showed a slight downward movement in August, according to the index of the United States Bureau of Labor Statistics. This reflected chiefly declines in the prices of farm products, especially grains and flour, and livestock and meats. Woolens and worsteds also decreased in price, while silk and rayon materials were higher. There was a decline in prices of iron and steel and automobiles, and a fur ther decrease in prices of petroleum and its products, especially gasoline. Coal prices advanced during the month. In the middle of September the prices of grains, beef, raw sugar, silk, and coal were higher than at the end of August, while prices of hogs, pork, and cotton were somewhat lower. Distribution. Freight car loadings increased seasonally in August, as a con sequence of larger shipments of all classes of freight except grains, which moved in smaller volume than in July when ship ments of wheat were unusually large. In Bank credit. Between the middle of August and the middle of September there was a further rapid increase in loans for commercial and agricultural purposes at member banks in leading cities. Security loans also increased, while investments continued to decline. During the first half of September the Cars o f revenue freigh t loaded as reported by the A m e ric a n R ailw ay A sso ciation . Index n u m b ers a d ju ste d for seasonal variations (1923-25 average = 100). L a te st figures A u g u s t, to ta l 109, m iscella n eou s 113. M o n th ly averages o f w eekly figures for re p o rt in g m e m b e r b an k s in leadin g cities. L a te st figures are averages o f first three w eeks in Sep tem b er. Page One Latest figure compared with BUSINESS INDICATORS Philadelphia Federal Reserve District August, 1929 Retail trade— estimated net sales (139 stores). Department stores (6 3 ).................................... Apparel stores (3 9 )............................................ Shoe stores (1 8 ).................................................. Credit stores (1 9 )............................................... M o n th ly averages o f daily figures for 12 Fed eral reserve b a n k s. L a te st figures are averages o f first 22 days in S e p tem b er. volume of reserve bank credit outstanding was about $120,000,000 larger than in the middle of the year. The increase was for the most part in the reserve banks’ ac ceptance holdings and reflected chiefly growth in the demand for currency, partly seasonal in character. Discounts for member banks, following the increase over the holiday period early in Septem ber, declined at the time of the Treasury financial operations around the middle of the month, and on September 18 were at a lower level than at any time since last June. Open market rates on prime commer cial paper increased from a range of 66J4 to a prevailing level of 6*4 per cent during the first week in September, while acceptance rates remained unchanged. 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 Business conditions in the Philadelphia Federal Reserve District show decided improvement with the approach of the fall season. The manufacture and distribu tion of commodities are expanding gradu ally, and the volume of transactions con tinues appreciably larger than was the case at the same time last year. The demand for manufactured products is broadening, and sales have increased further. Comparisons with a year ago also are quite favorable. This holds espe cially true with respect to most textile products, leather and shoe products, chem icals, and tobacco products. The market for building materials, on the other hand, while fair, does not measure up to the level that prevailed at the same time either last year or two years ago. The reason for this is lessened activity in the building trades. Further evidence of seasonal betterment is afforded by the increase in unfilled orders for various manufactured prod ucts. Reporting firms in most lines show that the advance business on their books has not only increased in the volume ex pected at this time, but it also exceeds the amount reported for the same period last year. Again this is true of most industries but is not characteristic of building ma terials. Page Two Wholesale trade— net sales (104 firm s). Boots and shoes (5 )............................... Drugs (1 0 )............................................... Dry goods (1 4 )....................................... Electrical supplies (3 )........................... Groceries (3 2 )........................................ Hardware (2 2 ;........................................ Jewelry (1 1 )............................................ Paper (7 ).................................................. Productive activity—Employment— 857 plants in P enna..................... W age payments in above plants........................... Shoe production* (88 factories)............................ Hosiery production* (120 m ills)........................... W ool consumption* (72 m ills)............................... Active cotton spindle hours (Penna. and N. J .) . Pig iron production.'................................................ Iron casting production (36 foundries)............... Steel casting production (11 foundries)............... Anthracite.................................................................. Bituminous coal— P enna........................................ C em ent........................................................................ Electric power output (12 system s)..................... Previous month Year ago .$17,295,500 .$14,531,300 ..$ 1 ,8 2 2 ,6 0 0 ___ $335,100 . . . .$606,500 + 8 .3 % + 8 .7 “ 0 .1 “ 0 .4 “ + 4 0 .9 “ + 3 .0 % + 2 .3 “ + 5 .4 “ + 1 5 .5 “ + 7 .3 “ . $ 7 , 320,572 . . . $ 129,791 . $ 1 , 071,446 . . . $ 526,519 . . . $ 168,935 . $ 3 , 014,279 . $ 1 , 505,791 . . . $ 401,228 . . . $ 502,583 + 3 .6 “ + 4 2 .5 “ - 0 .5 -1 9 .3 - 5.1 -1 4 .3 - 2 .3 + 3 .8 + 1 .3 + 0 .3 + 2 .7 ...................... 317,177 ..................$8,526,495 p rs........... 1,736,603 doz. prs. . 1,361,291 lb s............7,401,563 ..................5 0,371,405 ton s............. 351,244 ton s...................6,212 ton s...................6,621 to n s......... 5,970,000 tons. . . .11,690,000 b b ls . . . .18,5 9 4,00 0 K W H .. 559,161,100 Financial and credit— Debits (18 cities)..................................................................... Loans and investments— middle of September— 107 Bills discounted held by F. R . B. of Phila. (daily average)................................................................................ Bankers’ acceptances outstanding— end of month (district) ................................................................................ Commercial paper sales (4 dealers).................................... Commercial failures— number.............................................. Commercial failures— liabilities........................................... Building and real estate—• Building permits (17 cities).................................................. Building contracts awarded (Philadelphia district)........ Number of real estate deeds recorded (Philadelphia cou n ty).................................................................................. Value of mortgages recorded (Philadelphia county) Sheriff sale— number of writs issued for September— (Philadelphia cou n ty)........................................................ Miscellaneous Freight car loadings (Allegheny district— weekly average)............................................................................... Tonnage of vessels (Port of Philadelphia)...................... Sales of life insurance (Penna., N. J., and D e l.)........... Automobile sales (registrations of new passenger cars). - 1.0 “ + 18.3 “ + 23.1 “ + 0.6 “ 0 .9 “ + 3 3.3 “ + 2.1 “ + 1.1 + 5 .8 + 19.2 + 6. 2 + 18.8 - 2 4.4 + 9 .5 + 1 3 .7 + 7 .5 + 33.2 + 19.6 + 3 .0 + 7 .6 + 5.1 - 0.1 - 3 .8 + 1 8 .5 + 6 .4 - 2 .9 -1 1 .7 + 1 4 .4 - 0 .7 + 1 5 .8 .$ 2,769,287,000 - 11.4 + 1 5 .4 .$ 1,050,000,000 + 1.4 + 0.6 ___ $92,800,000 + 20.1 - 6 .4 .$17,254,000 ..$ 1 ,6 9 2 ,5 0 0 ................. 104 ..$ 2 ,7 1 4 ,2 6 3 + 14.7 - 4 4.2 + 8 2.5 + 1 1 4 .1 + 7 .7 -4 7 .9 + 1 9 .5 -1 3 .8 ..$ 9 ,6 9 6 ,3 8 2 .$24,901,700 - 6 4.0 2 6.6 -4 3 .1 -2 6 .7 .............4,578 .$19,514,193 - 13.0 22.1 - 4 .2 + 2 2 .9 . 1,201 + 0 .3 + 3 3 .7 .. .229,346 .4 ,2 6 0 ,8 70 99,579,000 . . ..2 1 ,0 6 9 + 6 .4 6. 2 5 .8 + 5 .6 + 1 3 .6 + 1 9 .6 + 1 7 .1 - - + 2.0 “ “ “ “ “ “ “ “ “ * Bureau of Census preliminary figures. Factory operations are being enlarged to a somewhat greater extent than was the case in the past two fall seasons. Labor generally is well employed and the early reports indicate that the demand for work ers by employers continues upward; it is also well ahead of that of a year and two years ago. Since the first of the year, em ployment in this section has increased ap proximately 10 per cent and in August it exceeded the total of a year ago by al most the same percentage. Factory wage disbursements have shown a similar trend, barring seasonal varia tions. Payrolls showed marked increases from July to August in most reporting industrial groups. In contrast with a year earlier, wage payments in Pennsyl vania during August were nearly 14 per cent larger, the groups chiefly contribut ing to this gain being those making metal, chemical, and textile products. Automo biles and their equipment and a few of the building materials, on the contrary, showed declines. The output of shoes and hosiery in creased considerably between July and August. Mill takings of wool fibres also were much larger. Production of pig iron in this district showed a slight drop, but the daily tonnage was substantially ahead of that produced in August, 1928. Opera tions of iron and steel foundries continued noticeably above the level prevailing at the same time last year. Conditions in the cement industry are mixed. Production recently has shown a considerable improvement; shipments of cement were larger in August this year than last but the output was smaller. The demand for crude and refined petroleum continued strong and production remains large. Construction activity, though fair, does not come up to the level of the past two years. This is supported not only by the present rate of operations, but also by figures on the value of building per mits and contracts awarded thus far this year. The real estate market in Philadel- phia is rather quiet and does not measure up to that of last year, although in August the value of mortgages recorded was noticeably higher than that in the same month last year. Foreclosures in Septem ber established the high record for any month in past years. In response to seasonal demand, mining of both anthracite and bituminous coal has expanded. Compared with a year ago, the output of the latter is also appreciably larger, while that of hard coal is slightly smaller. Industrial consumption of elec tric power has increased seasonally and in contrast with a year earlier. The distribution of finished goods con tinues in large volume. Railroad ship ments in this section are moving season ally upward, all classes of commodities showing increased freight car loadings. This is significant especially in view of the fact that since last spring total com modity shipments have been substantially above the volume of each of the preceding three years. Business at retail reflects a fair degree of recovery from summer dullness as is indicated by gains in sales from July to August. Comparisons with a year earlier also were satisfactory since August sales by department, apparel, shoe, and credit stores showed increases. The wholesale and jobbing trade is active, as usual at this time. Sales during August were larger in most lines than in July. Compared with a year ago, however, the total dollar vol ume of business was a trifle smaller, re flecting probably a lower level of whole sale prices. Sales of new passenger cars in August, as measured by registrations in this district, increased more than sea sonally and were the largest for that month in the past seven years. Member banks report a further increase in commercial loans during the past month, which was accompanied by sea sonal expansion in business activity. These loans are in substantially larger volume than a year ago. Loans on secur ities, investment holdings, and deposits also are higher than a month ago. There was a material rise in government de posits because of the new issue of gov ernment securities on September 15. The past four weeks have brought little change in the reserve ratio of this bank or in its total holdings of bills and secur ities ; a reduction in the borrowings of member banks was nearly balanced by in creases in holdings of purchased bills. F IN A N C IA L C O N D IT IO N S 11 Wage payments - 2 .6 % + 16.2 “ + 5 .7 “ + 3 .5 “ + 7.1 “ + 1 5 .2 “ + 1 0 .4 “ + 9.1 “ + 4 .4 “ - 5 .4 “ -2 5 .5 “ + 18.6 “ 0 “ + 0 .2 % + 2 7 .5 “ + 7 .3 “ + 6 .6 “ + 8 .2 “ + 15.3 “ + 16.1 “ + 13.3 “ ...........“ + 3 .6 “ -3 3 .5 “ + 2 3 .7 “ - 2 .3 “ Value of building permits + + + + + - 1 6.5 % 64.1 “ 3 .7 “ 167.4 “ 58.7 “ 4 7.9 “ 2 1 .0 “ 6 7.6 “ 5 6.4 “ 6 0.8 “ 8 8.7 “ 3 8.6 “ 14.1 “ Electric power sales Retail trade sales Debits + 2 .5 % + 3 .0 “ + 5 .0 “ + 1 4 .8 “ + 15.9 “ + 16.6 “ + 1 7 .2 “ + 8 .5 “ + 7 .3 “ + 6 .5 “ + 9 .6 “ + 2 6 .6 “ + 1 7 .0 “ + + 2 .3 % - 4 .4 “ + 6 .0 “ + 1 4 .5 “ + 6 .5 “ + 2 .0 “ + 12.7 “ - 1.7 “ + 9 .3 “ - 1 .0 “ . “ + 1 2 .0 “ 1 .9 % * + 2 0 .6 “ + 6 .9 + 1 5 .6 + 1 5 .5 + 19.3 - 11.0 + 19.3 “ t “ “ “ “ “ J + 2 6 .8 “ + 9 .2 “ August, 1929, compared with July, 1929 Allentown Altoona area...................... . + 2 .4 % + 3 .8 “ -1 .3 “ + 0 .8 “ + 3 .2 “ + 4 .4 “ + 2 .1 “ + 4.1 “ + 0 .1 “ + 2 .0 “ -3 6 .6 “ + 0 .6 “ + 2.1 “ “ “ Johnstown Lancaster Philadelphia Reading Scranton Trenton “ “ “ “ u « « a Wilmington \ ork + + + + + + + 7 .3 % 11 .9 “ 1 .3 “ 1.7 “ 9 .7 “ 7 .0 “ 4 .7 “ 6 .8 “ “ + 5 .8 “ -4 4 .8 “ + 5 .6 “ + 4 .1 “ - 6 5 .1 % + 9 2.9 “ - 8 9.4 “ + 119.2 “ - 5 9.5 “ - 6 3.8 “ + 4 6 .2 “ - 4 6.9 “ - 8 1 .6 “ - 57.7 “ + 2 7.4 “ -4 7 .2 “ - 33.6 “ * Includes Harrisburg, Wilkes-Barre and Williamsport areas, Camden area. § Included in Allentown area. Call money (Daily average rates—-% ) 1929 1928 June July Aug. For period from — 1st to 5 th ......... 6.7 6th to 10th. .. . 7.0 11th to 15th___ 7.7 16th to 20th. .. . 7.0 21st to 25th. . . . 8.0 26th to 31st____ 10.0 11.0 8.3 9.0 10.0 7.2 9.5 10.0 9.5 7.5 7.0 7.0 8.2 Sept. Sept. 9.0 8.3 8.3 8.4 7.5 7.5 7.4 7.1 7.7 6.5 Brokers’ loans and securities. The volume of brokers’ loans, as reported by New York city member banks, increased not far short of 500 millions in the four weeks ended September 18. Loans for own account and for out-of-town banks expanded more than 100 millions each, duplicating the performance in the corre sponding period a year ago, but this year loans for others rose 254 millions in the month as compared with only 31 millions a year ago. Brokers’ loans (000,000’s omitted) Sept. 18, 1929 Aug. 21, 1929 Sept. 19, 1928 Sept. 21, 1927 Sept. 22, 1926 - 4 .9 % - 3.1 “ - 4 .9 “ - 3 .7 “ - 1.8 “ -1 2 .2 “ - 9 .8 “ - 2 .7 “ -1 8 .5 “ + 0 .4 “ -1 2 .3 “ -1 7 .6 “ - 4 .2 “ + 4 .9 % + 10.1 “ + 10.4 “ + 2 7 .8 “ -1 4 .8 “ + 10.4 “ + 18.1 “ - 5 .5 “ + 5 .5 “ - 6 .4 “ + 1 0 .6 % * + 2.1 “ .............“ § + 4 .6 “ t + 4 .8 “ + 4 .3 “ + 13.0 “ + 7 .9 “ + 7 .4 “ J + 8 .8 “ + 8 .6 “ + 8 .4 “ “ t Production (not sales). § + Includes 228.1 on September 19, taking the 1926 average as 100. The increase was par ticularly marked in the utility shares, which advanced 5 per cent in this period, although industrials and rails also par ticipated in the upward movement. Bond prices receded slightly. The “ Chronicle” reports $843,000,000 of new capital issues in August, refunding excluded; this compares with $879,000,000 in July and the unusually low figure of $249,000,000 a year ago. More than half of the new issues in August, 1929, was for the account of investment trusts, and trading and holding companies. Banking conditions in the Philadel phia district. Member banks in twentyone of the larger cities of the Philadelphia district report an increase in total loans and investments from $1,627,000,000 on August 14 to $1,650,000,000 on September 18. This was due mainly to expansion in credit granted by banks in Philadelphia. Loans on securities increased 8 millions, ... . . I N R E P O R T IN G M EM BER BAN KS FOUR C IT IE S OF PH ILA D E LPH IA DIST RIC T or dollar 3 500 LOANS ON SE.CUR1TI 450 _ \J % 400 ALL OTHER T otals. . $6,569 $6,085 $4,470 $3,284 $2,762 . \ * For own accou n t........ $1,046 $ 926 $ 925 $1,068 $ 931 For out-oftowrn banks 1,897 1,787 1,634 1,306 1,132 For oth ers... 3,626 3,372 1,911 910 699 \ Allentown a r e a .. Altoona “ Harrisburg “ Johnstown “ Lancaster “ Philadelphia “ Reading “ Scranton Trenton 1 1 Wilkes-Barre Williamsport .. “ Wilmington York “ .. E m ploy ment \ Money rates. The call money re newal rate in the first twenty days of Sep tember averaged 8.5 per cent, identical with the average for the same period in August. The range in the past month has been from 7 to 10 per cent. There has been no change in the offering rate for ninety-day bankers’ bills recently, but prime commercial paper is slightly firmer than it was a month ago. August, 1929, compared with August, 1928 CITY CONDITIONS Philadelphia Federal Reserve District .71 INVESTM EN T S 300 The combined index of stock prices pre pared by the Standard Statistics Com pany rose from 222.5 on August 22 to 19128 K. Average of first three r e p o r ts m AuRust 1989 Page Three 5 millions were added to the investment holdings, and loans largely of a commer cial nature increased 10 millions. With comparatively minor recessions, the gen eral trend of commercial loans has been definitely upward since February, and the volume exceeds that of a year ago, as might be expected in view of the favorable showing made by business. Total deposits rose materially in the past five weeks, principally because of the crediting of substantial sums to the government fol lowing the new issue of securities on Sep tember 15, although net demand and time deposits also have increased. Comparison with a year ago shows some increase in total loans and invest ments, heavier loans on securities and other loans exceeding in volume a con siderable reduction in the investment hold ings of the reporting banks. Net demand and time deposits, however, are in smaller amount than a year ago. Changes since Member banks in 21 leading cities (000,000’s omitted) Reported by 93 banks: Loans on securities. . Other (largely com mercial) loans........ Reported by 107 banks: Total loans and dis counts ..................... Investm ents............... Net demand deposits. Tim e deposits............ Sept. 18, 1929 $ Aug. 14, 1929 Sept. 12, 1928 559 +$ 8 +$37 584 + 10 + 30 $1,211 439 840 471 + + + + 18 5 4 6 + - 69 59 24 35 The bill and security holdings of the Federal Reserve Bank of Philadelphia showed a small decline in total between August 21 and September 18. The bank added more than 8 millions to its holdings of purchased bills. The borrowings of member banks, however, declined 10 millions, and their reserve deposits in creased, large gains in the settlements ex ceeding losses in transactions with the government. In the first twenty days of September income tax checks credited by this bank to the Treasurer of the United States amounted to more than 40 millions, and disbursements through the cash redemp tion of maturing security issues and the payment of government coupons were less than 17 millions in the period from Sep tember 15 to 20, inclusive. The new issue of 4% per cent nine-month certificates of indebtedness was well received. Allot ments to the district totaled $51,105,000, of which $38,112,000 was paid for by credit at depositary banks. Commercial paper sales. In August sales of commercial paper to Philadelphia banks were small, and sales to outside banks failed, by a considerable margin, to equal the July figure. The total for the month was $1,692,500, which compares Page Four Fed. Res. Bank of Philadelphia (Dollar figures in millions) Changes since Sept. 18, 1929 Aug. 21, Sept. 19, 1929 1928 Bills discounted for member banks in— Philadelphia.......... $ 50.7 20 other large cities 19.4 Other communities 17.0 - Total bills discounted $ 8 7 .1 Bills b ou gh t............... 12.7 United States securities....................... 18.2 Other securities......... .3 $2.6 5 .2 2 .5 - $ 1 8 .1 3 .0 + 4 .0 - $ 1 0 .3 + 8 .2 - $ 1 7 .1 .1 + + .4 0 Total bills and securities................ $118.3 - $1.7 Federal reserve note circulation.............. 148.7 3 .9 Member banks’ reserve deposits........ 137.3 + 4 .5 Cash reserves............. 200.9 + 1.5 Reserve ra tio............. 7 0 .1 % + 0 .7 % 4 .0 .3 - $ 2 0 .9 + 18.1 .3 + 38.1 + 1 0 .9 % with $3,034,500 in July, and $3,247,500 in August, 1928. Commercial paper sales—four dealers Sales to City banks Country banks T otal sales 1929— M a y .. . 0 $1,227,500 $1,227,500 J u n e.. . $2,780,000 827,500 3.607.500 July. . . 120,000 2.914.500 3.0 3 4.50 0 A u g ... 122,500 1.570.000 1.692.500 1928— A ug. . . 1,717,500 1.530.000 3.2 4 7.50 0 1927— A ug. . . 1,900,000 6.368.500 8 .2 6 8.50 0 Bankers’ bills. The outstanding ac ceptances of banks in this district in creased from $15,046,000 on July 31 to $17,254,000 on August 31, which com pares with an increase of only a little over half a million in August, 1928. National figures also reflect an expand ing volume of acceptance financing. The total of $1,200,000,000 on August 31 was 74 millions higher than a month earlier, and 248 millions in excess of the total a year ago. INDUSTRIAL CONDITIONS M A N U F A C T U R IN G Activity in the manufacturing industry of this district shows a decided seasonal improvement. The demand for goods dis plays much vigor and sales surpass the volume of a year ago. Prices in the main do not show wide fluctuations, although the general level is somewhat lower than that prevailing at the same time last year. Another evidence of expansion is found in the fact that unfilled orders continue well sustained and compare more than favorably with those of a year ago. This, however, does not apply to manufactures of building materials either in point of advance business or in point of sales. Lessened activity in construction no doubt has acted adversely on the volume of business in building materials. The rate of plant operations has turned definitely upward in the majority of reporting groups and individual indus tries. This is further shown by the in creasing demand for workers by employ ers as well as by a larger number of workers actually employed and by the volume of wage disbursements. Employ ment and payrolls in this section during August were substantially ahead of the volume in the like month last year, indi cating a higher level of production. The use of electrical energy by in dustries increased about 11 per cent from July to August; it was also 16 per cent larger than in August, 1928. Total sales of electricity showed a gain of 7.1 per cent over July and 21 per cent in com parison with a year earlier. Production of electric power by 12 systems increased 5.1 per cent in the month and almost 16 per cent in the year. ELECTRIC POWER Philadelphia Federal Reserve District 12 systems August, 1929— change from Aug., 1928 July, 1929 Rated generator capacity. . . + 2 .0 % + 1 .8 % Generated output................... H ydro-electric..................... Steam .................................... Purchased............................ + 1 5 .8 “ -6 8 .8 “ + 4 1 .0 “ + 6 2 .8 “ -4 7 .2 “ + 1 5 .7 “ + 7 .3 “ Sales of electricity.................. Lighting................................ M unicipal........................ Residential and com m ercial.......................... P ow er.................................... M unicipal......................... Street cars and railroads. Industries......................... + 2 1 .0 “ + 5 .8 “ + 1 3 .7 “ + 7.1 “ + 3 .3 “ + 1 8 .2 “ + 4 .6 + 1 4 .4 + 2 9 .0 + 5 .4 + 1 6 .0 + + + + + All other sales......................... + 6 9 .1 “ “ “ “ “ “ 1 .3 9 .1 6 .9 1.1 10.9 “ “ “ “ “ + 3 .8 “ Iron and steel. Demand for iron and steel products, while still fairly active, has declined since the middle of last month. In comparison with a year ago, however, the volume of business in fabricated metal products has continued substantially larger. Railroads appear to be the most active buyers at the present time, while public utilities, jobbers, and manufacturers show declines. Purchasing by construction companies, foundries, and automobile producers shows little change since last month. No marked changes in the price level are disclosed by reporting firms. Aver age quotations for finished steel in the country continue firm, exceeding those of last year or two years ago. Similarly, average prices of pig iron are fairly steady, showing lately a slight upward tendency; they are above the level of a year or two years ago. Orders on the books of reporting firms have increased further during the m onth; compared with a year ago, they are also noticeably larger. Unfilled orders of the United States Steel Corporation contin ued to decline from the spring peak. EM PLOYM ENT A U G U ST,1929 EMPLOYMENT AND WAGES IN PENNSYLVANIA N o. of plants re port Aug. ing index * PA YR OLLS AUGUST, 1929 AVERAGE W EEKLY E A R N IN G S week ended Per cent change since Per cent change since index * Aug. 1928 Aug. 1928 July 1929 July 1929 Aug. 15, 1929 July 15, 1929 All manufacturing industries (5 1 )..................................... 857 9 6 .0 + 9 .5 + 1.1 102.6 + 1 3.7 + 5 .8 2 6 .8 8 2 5 .5 0 Metal products...................... Blast furnaces................... Steel wks. & rolling m ills. Iron and Steel forgings. . Structural iron w ork....... Steam & hot water htg. ap. Stoves and furnaces........ Foundries........................... Machinery and parts. . . . 240 9 8 .9 + 1 3 .7 109.1 + 1 9 .4 27.41 47.1 82.0 112.2 112.2 88.9 66.8 9 6.7 121.1 158.2 101.5 88.2 84.0 + 4 .2 + 6 .2 + 3 6 .3 + 5 .9 - 8 .2 - 1.0 + 1 7 .5 + 1 8 .0 + 7 .2 + 1 3 .0 + 4 8 .0 + 8.1 - 5 .8 + 4 .8 + 3 0 .1 + 2 3 .6 + 1 2 .5 + 9 .2 -2 3 .1 52.3 9 3.2 128.0 115.7 100.1 66.1 106.8 137.2 171.6 110.7 92.5 85.8 + 9 .5 + 0 .6 + 9 .6 + 1 3 .0 + 1 3 .5 - 7.9 + 17.0 + 5.3 + 0 .4 + 18.4 - 0 .9 + 8.1 + 1 4 .1 29.41 9 43 10 10 17 8 37 44 21 10 19 12 + 3 .2 - 0 .4 - 0 .5 + 4 .4 + 2 .7 - 8.1 + 9 .3 + 2 .7 - 0 .2 + 1 2 .0 - 0 .3 + 4 .0 + 10.4 30.75 30.89 27.65 28.48 30.58 28.20 29.88 31.70 27.40 29.46 24.43 27.68 30.38 28.07 25.55 26.04 30.52 26.33 29.05 31.46 25.89 29.61 23.51 26.74 Transportation equipment.. A utom obiles...................... Auto, bodies and p a rts.. . Locomotives and cars___ Railroad repair shops. . . . Shipbuilding...................... 42 7 5 .5 + 0 .8 t —8 .4 7 5 .7 6 .8 2 9 .1 9 2 8 .6 8 6 13 13 6 4 85.3 85.3 65.3 91.1 49.0 - 6.1 - 2 .7 + 1 3 .2 + 1 5 .5 + 1 3 1 .1 -3 4 .1 - 8 .2 - 0 .2 + 1.6 + 0 .2 88.6 7 2.0 66.8 102.5 51.2 - 4 .0 -1 3 .6 + 2 1 .5 + 2 5 .3 + 2 0 8 .4 -3 5 .2 -1 2 .4 + 4 .5 + 8 .6 + 8 .7 30.00 27.28 29.59 29.79 30.35 30.47 28.58 28.22 27.85 27.99 Textile products................... Cotton good s..................... Woolens and worsteds. . . Silk go o d s .......................... Textile dyeing & finishing Carpets and rugs............. H a ts.................................... H osiery............................... Knit goods, Other............ M en’s clothing.................. W omen’s clothing............ Shirts and furnishings. . . 177 100.2 + 5 .1 + 5 .0 + 3 .6 - 3 .8 + 4 .5 + 1 2 .2 + 2.1 + 1 7 .3 + 8 .4 + 7 .4 + 7.1 + 1 7 .7 + + + + + + + + + + 3 .2 105.7 + 5 .8 + 9 .9 + 1 1 .7 + 1 0 .5 + 4 .4 + 9 .8 + 0 .4 + 1.4 - 5 .4 + 5 .5 + 6 .4 + 1 3 .9 2 0 .8 8 74.6 95.7 100.9 122.7 77.0 98.0 147.3 96.6 105.2 114.0 103.5 + 7 .9 + 5 .8 + 1 1 .0 - 0 .3 + 1.3 + 3 .6 + 1.3 + 1 6 .3 + 1 4 .2 + 16.0 + 8 .9 + 2 5 .2 2 1 .4 0 5 .2 9.1 2 .9 2 .7 4 .4 1 .8 1 .5 0 .5 4 .2 0 .5 8 .8 22.72 21.97 18.64 25.48 22.20 25.30 25.06 18.70 18.80 14.43 15.31 21.73 21.49 17.36 25.07 21.11 25.65 25.11 19.66 18.56 13.48 14.64 Foods and tobacco............... Bread & bakery products C onfectionery................... Ice cream .......................... M eat packing................... Cigars and toba cco.......... 104 96 8 - + 0 .1 0 + 1 .8 - 5 .2 - 4 .1 + 2 .9 2 0 .4 5 106.8 90.3 105.2 100.1 94.9 + + + + 2 0 .3 9 29 13 11 14 37 27.59 18.91 31.46 28.29 15.05 27.35 19.13 31.09 30.01 14.75 Stone, clay & glass products Brick, tile and p o tte ry ... Cem ent............................... Glass................................... 68 8 3 .7 6 .6 2 7 .8 6 2 6 .1 4 32 14 22 99.4 74.9 8 6.5 Engines and pum ps......... Hardware and tools........ Brass and bronze prods.. Lumber products................. Lumber & planing m ills.. Furniture........................... Wooden boxes................... Chemical products............... Chemicals and drugs. . . . C ok e.................................... Explosives.......................... Paints and varnishes. . . . Petroleum refining........... 78.2 13 15 92.6 51 98.0 12 115.8 9 87.3 4 98.7 30 126.6 15 91.4 10 9 5.9 9 111.6 9 105.6 55 8 1 .9 17 31 7 78.7 80.1 108.2 51 + + + - 2 .8 1.7 0 .2 1.1 7 .2 7 .8 - 2 .8 + 8 .2 -1 4 .5 + 0 .9 + 1 5 .1 + 1 2 .0 -1 3 .0 - 0 .5 0 .5 9 7 .7 - 0 .3 0 .8 3 .0 6 .3 101.9 96.3 111.8 9 6.5 93.6 + + - 2 .4 0 .7 2.1 7 .8 4 .4 1 -7 0 .6 0 8 5 .5 + 2 .2 - 0 .4 - 1 .8 101.0 8 4.0 8 2.6 - 2 .1 + 1 6 .8 -1 6 .2 + 3 .6 + + + + 10.5 3 .6 6 .7 25.28 32.60 25.65 23.39 31.32 23.60 - + 5 .6 - 4 .9 + 1 3 .0 + 5 .9 2 2 .9 2 2 1 .7 9 20.77 25.45 19.68 20.82 23.26 19.54 0 .7 8 2 .6 - 2 .4 + 0 .3 - 9 .8 - 4 .7 + 3 .9 + 4 .9 79.5 79.9 118.2 0 .4 120.1 + 1 6 .5 2 8 .0 6 9 8.0 117.9 136.6 140.4 122.1 + 7 .3 - 2.1 + 3 6 .6 + 1 2 .8 + 2 7 .9 + 4 .1 + 2.1 + 4 .0 + 1 8 .4 0 + 4 .4 29.61 0 .9 0 .3 2.1 0 .4 0 .3 29.46 27.93 27.60 26.94 31.14 30.68 26.80 23.81 27.09 28.66 + + + + - + + + + + 6 .7 2 3 .7 2 2 2 .8 2 7 .4 8 .2 5.1 0 .2 25.89 19.39 23.34 29.12 24.73 18.65 22.48 28.96 + 5 .8 - 3 .4 + 9 .6 + 6 .2 + 2 1 .3 + 6 .2 - 1.2 + 0 .4 3 2 .5 7 3 0 .7 0 28.87 16.05 35.98 26.49 25.50 27.28 32.62 27.42 15.65 33.66 23.94 23.87 24.81 32.27 - 2 .6 - 4 .3 - 5 .0 - 2 .0 -1 2 .0 108.9 + 1 4 .5 28 92.1 3 119.2 3 136.7 12 134.8 5 106.9 + 4 .3 + 0 .7 + 1 5 .6 + 1 0 .4 + 2 5 .3 + + + + + 52 100.5 + + + + - 107.1 107.6 94.6 111.2 82.1 + + + + - 2 .8 17 21 10 4 2 .6 4.1 1.3 0 .2 113.2 101.6 101.7 101.6 68 9 4 .5 0 .3 109.1 81.5 97.9 102.9 93.6 + 1 .4 - 4 .3 + 4 .5 - 0 .6 -1 5 .6 - 12 10 46 155 339 Construe, and contracting. . 55 Street railways..................... 5 52 85 + 4 .4 - 5 .2 + 3 .9 + 4 .9 -2 9 .1 + 4 6 .6 - 5.1 + 0 .3 + 1.5 1.6 6 .8 0 .5 9 .3 0 .6 2.1 0 .6 0.1 0 .7 91.5 112.0 118.5 68.9 153.1 90.4 9 1.7 9 6.6 + + + + 131.1 91.2 + 4 2 .2 -1 0 .1 Leather & rubber products. Leather tanning............... Shoes................................... Leather products, Other. Rubber tires and good s. . Paper and printing............... Paper and wood pulp. . . . Paper boxes and b a g s .. . . Printing & publishing___ Anthracite.............................. * 1923-1925 average = 100. 2 .8 3 .4 4.1 5.1 4 .2 3 .2 3 .4 7 .9 4 .6 5 .0 f Preliminary figures. At the end of August, these orders totaled 3,658,000 tons, or 430,000 tons less than in July but 34,000 tons more than in August, 1928. Actual tonnage booked by the fabricators of structural steel in creased a little from July to August but t - was measurably smaller than in the same month last year. Operations of metal fabricating plants generally show seasonal expansion in re sponse to a continued demand for many products. The most pronounced improve ment between July and August occurred in electrical apparatus, stoves and fur naces, brass and bronze products, struc tural iron work, and iron and steel forg ings, according to figures on payrolls in Pennsylvania. Compared with a year ago, productive activity of the group compris ing metal products is considerably higher. Daily output of pig iron in this district during August showed little change from July, although it was somewhat below the May peak, which was the highest since the spring of 1926. Production in the country, on the other hand, continued to decline from the record volume reached in May. Similarly, the daily output of steel ingots, which established a record in May and June for all time, decreased further in August. Shipments of fabricated struc tural steel in August were noticeably larger than in any month during the past two years. Inventories at the reporting metal plants for the most part are moderate and show some decline in comparison with four weeks ago. Change from Aug., 1928 8 mos. of 1929 com pared with 8 mos. of 1928 Iron and steel (Daily average) Aug., 1929 (gross tons) Pig iron— United States. . . . 121,151 + 1 9.7 % + 1 8 .4 % Phila. Fed. Res. D istrict............... 11,330 + 18.5 “ + 3 0 .3 “ Steel ingots—■ United States. . . . 182,437 + 17.9 “ + 1 8 .2 “ Source: Iron Age. T ex tiles. Conditions in the textile industry have improved noticeably in re cent weeks. The demand for manufac tured products has increased 'further. This is especially true of silk, cotton, and wool manufactures, full-fashioned hosiery, carpets and rugs, linoleum and felt base goods. Comparisons with a year ago also are favorable, owing mainly to larger sales of woolen and worsted piece goods and yarns, certain grades of cotton fabrics and yarns, and floor cov erings. Prices are fairly steady, although re ports showing declines outnumber those reporting advances. Cotton yarns and thrown silk are higher, while silk, cotton, and woolen and worsted piece goods are somewhat lower than they were four weeks ago. Quotations for full-fashioned hosiery also have fallen off a little, while those for seamless hosiery and floor cov erings show negligible change. Prices of silk, cotton, and domestic wool fibres have risen in the last four weeks, and in the case of silk and cotton are above the level of a year ago. Forward business on the books of re porting firms has increased seasonally in the majority of the leading textile branches. The volume of unfilled orders for thrown silk, cotton fabrics, woolen Page Five and rug manufac turers also showed a gain of more than 23 per cent. Deliveries of raw silk to American mills s h o w e d a marked gain in the month and in com parison with each of the past two years. Mill takings of cotton f i b r e s , too, were appreci ably larger than in August, 1928. Stocks of fin ished products at textile plants gen erally remain mode r a t e and are smaller than those Source: Department of Agriculture and Journal of Commerce. of four weeks ago. T h e estim a te o f th e D e p a rtm e n t of A gricu ltu re on A u g u s t 1 in d i Most textile inven cated a crop for th is co u n try o f 15,543,000 bales. O n S e p tem b er 1 th e e stim a te w as revised to 14,825,000 bales. tories are also be low the volume on and worsted yarns and piece goods is also the same date last year. Leather and shoes. Business in shoes measurably larger than was the case at is increasingly active, and sales are the same time last year, but advance orders for cotton yarns and silk goods noticeably larger than those at the same time last year. Prices remain unchanged. are somewhat smaller. Productive activity is being extended Orders on the books of reporting firms are slightly smaller than four weeks a g o ; seasonally. Evidence of this is afforded by silk and wool manufactures, cotton in comparison with those at the same time last year, however, unfilled orders fabrics, full-fashioned hosiery, and floor are larger. coverings. The present rate of operations Shoe factory operations are expanding in most lines is appreciably higher than that prevailing at the same time last year. seasonally, the average rate being close Wage payments in August were nearly 8 to 80 per cent of capacity as against 75 per cent in excess of the volume reported per cent last month and a year ago. Both for the like month last year, the largest the number of workers and the volume of wage payments increased materially increases occurring in shirts and furnish from July to August and were larger ings, men’s clothing, knit goods, hosiery, than in the same month last year. The and woolens and worsteds. The most pro output of boots and shoes in this dis nounced gains over July took place in trict during August was 19.2 per cent wool, silk, and cotton manufactures and larger than in July, and in the country shirts and furnishings. it was 18.5 per cent greater. The output of hosiery during August Sales of sole leather also have improved surpassed the July volume by more than since last month, and prices show ad six per cent. This gain was chiefly due vances. Unfilled orders are larger than a to a larger output of women’s full-fash month ago, and plant operations show a ioned hosiery. further gain. Similarly, production of Consumption of wool fibres in this dis black and colored kid leather is broaden trict was almost 19 per cent larger in ing in response to active demand. The August than in July as against an in market for leather goods is beginning to crease of nearly 13 per cent in the coun improve as is to be expected at this time. try. Mill takings of wtoo1 by local carpet The hide market continued strong in the early part of the month but lately it has shown some weakness. The demand WOOL A C T IV IT Y for goatskins is active. Building materials. The market for building materials is fair and shows a slight improvement since last month. Larger sales are reported by the pro ducers of cement, paint and pottery, while brick manufacturers show declines. The volume of sales, however, is still lagging behind that of a year ago in most lines, reflecting lessened activity in building trades. Prices of brick and cement show declines, while those of paint show ad vances. Source: Department of Commerce Page Six Advance business on the books of re porting firms has fallen off in all lines except paint and pottery. This decline has been somewhat more marked than is usual at this season. Comparisons with a year ago are also less favorable, owing chiefly to smaller volume in unfilled orders for brick, cement, and pottery. Plant activity has decreased further, owing chiefly to the reduced output of cement, paint, and pottery. Only brick manufacturers report a higher rate of operations than last month. Figures on wage disbursements in August showed that the production of brick, tile, and pot tery, paints and varnishes, and glass was at a higher rate than was the case in the same month last year, while cement and lumber products showed marked de creases. Although production of cement in this section was smaller in August this year than last, shipments were somewhat larger. Stocks at the end of the month were less than those on the same date last year. Miscellaneous. Activity in the paper industry showed little change during the past month, although the demand for paper boxes has been increasingly strong. Sales were larger than in the same period last year, but were in about the same volume as last month. Forward orders on the books of reporting companies showed no increase and plant operations have declined slightly from the advance noted a month ago. Sales of cigars increased in the month and were ahead of last month or a year ago. Prices show no change. Unfilled orders are slightly larger than a year ago. Plant operations have increased sea sonally. The demand for chemicals has been active and has shown a slight increase lately. Plant operations have also in creased, as is usual at this season of the year. Stocks are lighter than last year. Manufacturers of confectionery report increased activity in preparation for the fall trade. Demand is fairly active and is much greater than a month ago. In com parison with a year ago, sales are in about the same volume. Unfilled orders are larger than in the previous month. Activity in the petroleum industry con tinues at a high rate. Demand for both crude and refined oil has been good and, though in about the same volume as a month ago, is well ahead of last year. Prices of crude are higher, while those of refined oils, especially gasoline, have de clined. B U IL D IN G A N D R E A L E S T A T E Building operations in this district con tinue at a much lower rate than last year. The total value of building con tracts awarded in August declined as compared with July and last August and was the lowest monthly total since Janu ary, 1926. Reports for the first twenty days of September show some improve- Building activity Aug., 1929 (000’s omitted) Contract awards: Phila. Fed. Res. District T o ta l................... $ 24,902 Residential........ 9,245 United States: T o ta l................... 488,882 Residential......... 146,088 Permits issued: Phila. Fed. Res. Dist. (17 cities). 9,696 United States (577 cities) ................... 256,721 8 mos. of 1929 com pared with 8 mos. of 1928 Change from Aug., 1928 -2 6 .7 % -1 5 .8 % -4 2 .4 -2 6 .1 — 5.4 -3 1 .6 - 8 .2 -2 6 .6 -4 3 .1 - 2 .3 well maintained. Shipments of goods by railroad have been substantially ahead of the volume reported for each of the past three years. The movement of mer chandise and miscellaneous commodities in the Allegheny district during the latest four weeks was 6.3 per cent larger than in the corresponding period last year and 5.5 per cent larger than in 1927. Total freight car loadings also showed an increase of 6.1 per cent in comparison with a year earlier and 5.2 per cent over the same period two years ago. ordinary life insurance in this territory declined seasonally but were nearly 20 per cent ahead of those in August, 1928. Wholesale trade. Wholesale and jo b bing trade is seasonally active. Sales in most lines have increased since the mid dle of last month, according to pre liminary reports. Prices are unchanged, except for several advances in groceries. The dollar volume of sales at wholesale increased nearly 4 per cent from July to August. All lines except drugs and hard ware shared in this gain. Compared with a year ago, however, sales were about one-half of one per cent smaller; sales of groceries, hardware, jewelry, and paper showed increases, but these were prac tically offset by decreases in sales of shoes, drugs, dry goods, and electrical supplies. Inventories carried by wholesalers gen erally are somewhat smaller than those at the end of August, 1928. Accounts out standing at the end of August were larger than a year earlier except for shoes, drugs, and dry goods. Reports on collections v a ry : in groceries, hardware, and paper, they were larger than a year before, but in shoes, drugs, dry goods, and jewelry, payments were smaller than in August, 1928. Only groceries showed larger collections in August than in July. Retail trade. Early reports show that retail trade continues fairly active, although reports showing smaller sales in the early part of September outnumber -1 8 .4 Source: F. W . Dodge Corporation and S. W. Strauss & Company. ment. Eastern Pennsylvania and South ern New Jersey were responsible for the decrease in the August figures, since Dela ware reported a slight gain. Among the reporting cities, all of which showed losses, large declines were reported by Philadelphia, Camden, and Wilmington. Of the various classes of buildings, indus trial plants and public works and utili ties showed gains over last year, while residential buildings had the greatest de clines. The proposed expenditure under build ing permits issued in 17 cities of this dis trict decreased appreciably during A u gust and was forty-three per cent smaller than in the same month last year. The value of mortgages recorded in Philadelphia declined 22 per cent from the high figure of last month. Compared with August, 1928, however, it was almost 23 per cent larger. The number of deeds re corded was the smallest in the past eleven months and was about 13 per cent below the July figure. COAL Anthracite. The market for anthra cite is slightly better than last month and prices of domestic sizes are stronger although they are below those prevailing at this time last year. Colliery opera tions have increased seasonally. Produc tion in the four weeks ended September 14 totaled 5,971,000 tons, a gain of nearly 25 per cent over the previous four weeks but a loss of less than one per cent from the total for the same period last year. Bituminous. Along with increasing activity in manufacturing plants, sales of bituminous coal have increased in the past month and prices also have advanced. Reporting collieries in eastern central Pennsylvania are operating at approxi mately 75 per cent of capacity as com pared with about 60 per cent last month and 50 in August, 1928. Production in the country in the four weeks ended Septem ber 14 amounted to 40,922,000 tons, a gain of 8.2 per cent over the previous four weeks and of 8.1 over the volume of a year ago. D IS T R IB U T IO N Distribution of commodities continues Source: American Railway Association Registrations of new passenger cars in this district increased more than season ally from July to August. In contrast with a year before, sales of new auto mobiles were 17 per cent larger. Sales of Comparison of net sales RETAIL TRADE Philadelphia Federal Reserve District Aug., 1929, with Aug., 1928 Comparison of stocks Jan. 1 to Aug. 31, 1929 Aug. 31, 1929, with with with Jan. 1 to Aug. 31, July 30, Aug. 31, 1929 1928 1928 outside Philadelphia................. outside Philadelphia............. outside Philadelphia............. Shoe stores...................................... Credit stores................................... WHOLESALE TRADE Philadelphia Federal Reserve District 1928 1929 8 .8 % + 2 .9 % 2.12 2.34 - 1 . 1 “ - 1 0 . 2 “ + 0 .7 “ - 2 . 0 “ - 1 3 . 5 “ - 0 .2 “ + 1 .2 “ - 3 .6 “ + 2 .2 “ 2 .05 2 .20 1.81 2.29 - 0 .4 + 4 .1 -4 .2 + 6 .6 + 7 .8 -1 .4 + 3 .7 -0 .3 1.77 2.15 1.47 3.84 4 .10 2 .68 1.71 1.43 1.74 2.05 1.47 3.92 4 .1 8 2 .6 5 1.86 1.63 + 3 .0 % - 0 . 3 % + 2 .3 “ + 1 .3 “ -j- 4 .4 “ + 5 .4 “ + 1 .0 “ + 0 .9 “ + 1.2 “ + 7 .6 “ + 7 .6 “ + 7 .3 “ + 1 5 .5 “ + 7 .3 “ Rate of turnover, Jan. 1 to Aug. 31 - “ “ “ “ “ “ “ “ + 1 0 .3 “ 4-22.9 “ + 1 .4 “ + 2 .3 “ + 6 .4 “ -1 4 .2 “ - 6 .6 “ -1 3 .4 “ + 2 9 .6 4-50.7 + 1 5 .7 + 2 5 .3 + 3 0 .2 4- 5 .5 + 3 .8 + 1.9 “ “ “ “ “ “ “ “ Net sales, Aug., 1929, compared with Stocks, Aug. 31, 1929, compared with Accounts out standing, Aug. 31, 1929, compared with Aug., 1928 July, 1929 Aug., 1928 Aug., 1928 + 4 2 .5 % - 1 .0 “ + 18.3 “ + 2 3 .1 “ + 0 .6 “ - 0 .9 “ + 3 3 .3 “ + 2.1 “ ...........% ...........% -1 1 .5 “ .......... “ - 2 .8 “ + 3 .2 “ - 6 .6 “ - 1 .4 “ + 11.9 ...........“ - 1 .3 - 0 .1 - 3 .2 + 2 .3 Boots and shoes... - 1 9 . 3 % - 5.1 “ Dry good s............. - 1 4 . 3 “ Electrical supplies. - 2 .3 “ Groceries............... + 3 .8 “ H a rd w a re............. + 1.3 “ Jewelry................... + 0 .3 “ Paper...................... + 2.7 “ July, 1929 -1 3 .4 % - 4.1 “ “ - 9 .8 “ + 3 .5 “ “ + 1 .5 “ “ + 0.1 “ “ + 5 .2 “ “ + 1 8 .6 “ July, 1929 + 6 .9 % + 2.1 “ - 0 .2 “ + 9 .0 “ + 0 .8 “ - 1.3 “ + 5 .8 “ + 1 6 .4 “ 1.91 Ratio of ac counts outstanding to sales, Aug., 1929 3 90 .4% 110.7 “ 284.5 “ 214.9 “ 110.2 “ 212.1 “ 402.7 “ 166.4 “ Accounts receiv able at end of month com pared with year ago C ollec tions during month com pared with year ago + 5 .7 % + 8 .3 % + 1.7 “ - 0 .4 “ + i i . 7 “ + 9 .6 “ + 3 .7 “ + 7 .6 “ + 6 .9 “ + 16.3 “ Collections, Aug., 1929, compared with Aug., 1928 July, 1929 -2 2 .9 % - 5.1 “ - 5 .9 “ ...........“ + 6 .8 “ + 3 .8 “ -1 6 .4 “ + 1 1 .2 “ -1 1 .5 % — 2 9 “ - 7 .7 “ ...........“ + 7.1 “ - 3.1 “ -4 2 .2 “ - 1.1 “ Page Seven those showing larger sales. Prices gen erally have changed little. Sales by reporting retail stores in A u gust were 3 per cent larger than in the same month last year. The largest gains were shown by shoe, credit, and women’s apparel stores. Sales by department stores, particularly outside Philadelphia, also showed appreciable gain over a year earlier. Retail business in the first eight months of this year, however, continued slightly under the volume in the same period last year, department stores in Philadelphia being largely accountable for this unfavorable showing. In comparison with the July volume, sales of all reporting stores in August were more than 8 per cent larger. Most city areas report increases in the volume of business from July to August. Stocks carried by reporting retailers in creased almost 3 per cent between July and August, virtually all lines showing this seasonal gain. In comparison with a year ago, however, stocks were about 9 per cent smaller, owing largely to smaller inventories held by department, shoe, and credit stores. The rate of turnover in August this year was greater than that in the like month last year. A G R IC U L T U R E The continuance of unfavorable weather during late August and early September has again reduced the expected yield of late crops for this district and for the country. The rain which fell during the middle of September in this district helped but little; consequently the yields of corn, oats, potatoes, hay and tobacco are all estimated to be smaller than last year. Truck produce also has suffered materially while the peach crop is below normal and the pear and apple crops are nearly forty-five per cent smaller than usual. Lack of adequate pasturage has affected the condition of livestock in some sections of this district. The number of hogs has decreased somewhat as compared with September, 1928. Many county agents, however, feel that increased prices of farm products will offset the poorer crop prospects and will even result in an in crease over last year in the farmer’s pur chasing power. Crop estimates (Figures in thou sands of units) 1928 yield Phila. Fed. Res. Dist. C o rn ........... bus. . . W heat. . . . Oats.......... Potatoes (w h ite). _ u ____ H a y .......... to n s ... T ob a cco. . .l b s .. . . U United States C o rn ......... W h e a t.. .. Oats.......... Potatoes (w hite). H a y ........... T ob a cco. . C otton. . . Estimate, Per Sept. 1, cent change 1929 45,500 16,140 21,770 40,322 - 1 1 . 4 18,756 + 1 6 .2 19,605 - 9 .9 30,208 3,353 49,580 21,631 - 2 8 . 4 2,979 - 1 1 . 2 46,264 - 6 .7 b u s. . . 2,835,678 2,455,997 - 1 3 . 4 902,191 785,726 - 1 2 . 9 “ 1,448,677 1,204,987 - 1 6 . 8 U a 349,112 - 2 4 . 8 464,483 to n s ... 92,983 93,600 + 0 .7 lb s. . . . 1,378,139 1,462,321 + 6.1 bales. . 14,478 14,825 + 2 .4 BUSINESS CONDITIONS IN THE PHILADELPHIA FEDERAL RESERVE DISTRICT Prices Retail trade ................. Wholesale and jobbing trade: Drugs .......................... Dry goods ................. Electrical supplies. Groceries ................... Hardware ................... Jewelry ....................... Paper ........................... Lumber ....................... W ool ............................ Cotton yarns ............. Manufacturing: Iron and steel prod ucts ......................... Cotton goods ........... Silk throwsters . . . . W ool goods ............. W ool yarns ............... Hosiery— full-fash ioned (........................ Hosiery— seamless . Carpets and rugs . . Shoes ............................ Leather goods ........... Leather— Sole .......................... Black kid ............... Colored kid ........... Paper ............................ Chemicals ................... Cigars .......................... Oils— Crude ..................... Refined ................... Brick ............................ Lumber— mills ......... Paint ............................ Pottery ....................... Cement ....................... Confectionery ........... Building ..................... Anthracite ................. Bituminous coal . . . Demand U nfilled orders Operations Virtually unchanged Fair, losses offset gains Firm, little change Unchanged Unchanged Higher Practically unchanged Unchanged Little change Unchanged Little change Some advances on d o mestic wool Higher Active, little change Fairly good, increased Fair, increased Fairly good, increased Fairly good, increased Fair, increased Fair, some gain Fair, some gain Fair, some gain Fair, declined Little change Smaller Fair, increased Larger Firm, Active, Larger than a year ago Increased little change declined Stocks Larger Larger Smaller Smaller Smaller Larger Unchanged Little change Smaller Smaller Some declines, but stronger lately Some decline Higher, as is raw silk Lower Little change Lower Fair, increased Larger Increased Little Active, Active, Fairly Active, Active, increased increased good, increased increased increased Little change Larger Larger Larger Little change Increased Increased Increased Increased Increased Smaller Smaller Smaller Smaller Smaller Little change Little change Unchanged Fair, little change Fairly good, increased Active, increased Decreased Increased Increased Smaller Smaller Smaller Unchanged Good, increased Smaller Little change Smaller, but year ago Larger Little change Little change Higher Firm, some advances Unchanged Firm Little change Unchanged Good, Good Good Fair, G ood, G ood, Larger Larger Little Little Little Little Increased Increased Increased Little change Increased Increased Smaller Smaller Smaller Smaller Smaller than a year ago Smaller Higher Lower Lower Unchanged Higher Little change Lower Little change Construction costs high er Higher on domestic sizes but little change in steam sizes Higher Good, unchanged G ood, unchanged Fair to poor, declined Fair, little change Fair, increased Fairly good, some gain Fair, some gain Fair, increased Fair but below last year Larger Smaller Larger Little change Smaller Little change Smaller Larger Fair to poor, increased Increased Increased Some gain Little change Declined Declined Declined Increased Value o f contracts clined Increased Fair, increased Increased Page Eight increased little change increased increased above a change change change change Smaller Smaller Some gain Little change Smaller Larger Value o f permits clined d e de change
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