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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT SEPTEMBER i, 192.7 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA B U SIN E SS C O N D IT IO N S IN T H E U N IT E D S T A T E S Industrial production declined in July to a level below that of a year ago, while the Department of Labor’s index of wholesale prices advanced for the first time since last autumn. Demand for bank credit showed a seasonal increase, but easy conditions prevailed in the money market. Production. Output of manufactures declined in July and was in practically the same volume as a year ago and the production of minerals which was further reduced during the month was at the lowest level since early in 1926, when the anthracite strike was in progress. Iron and steel production in July was in the smallest volume since 1925 and continued at practically the same level during the first three weeks of August. Automobile output for July and the early weeks of August was considerably below that of the corresponding month of last year; production of rubber tires, nonferrous metals and food products and activity of woolen mills were smaller in July than in the preceding month. Cotton consumption was smaller than in June, but continued unusually large for this season of the year. Production of leather, shoes and lumber increased in July as compared with June. Factory employment and payrolls showed seasonal decreases in July and were smaller than in any month since 1924. Employment in coal mining has been reduced in recent months, and re ports indicate some unemployment in certain of the building trades owing to the decline in the construction of houses. Building contract awards in July and in the first three weeks of August continued larger than a year ago, the increase re flecting chiefly a growth in awards for engineering projects. The August 1 cotton report of the De partment of Agriculture indicated a pro duction of 13,492,000 bales or 25 per cent less than the record yield of last year. The indicated production of corn, though considerably larger than the expectation in July, was 262,000,000 bushels lower than the harvested crop of 1926. The August estimate of 851,000,000 bushels of wheat indicated an increase of 18,000,000 bushels over the 1926 crop yield. Trade. Distribution of merchandise at wholesale and retail showed about the usual seasonal decline in July. Compared with a year ago sales of wholesale firms and department stores were slightly smaller, owing largely to the fact that there was one less business day in July of this year than in July 1926. Sales of mail order houses and chain stores were somewhat larger than a year ago. In ventories of department stores continued to decline in July and at the end of the month were slightly smaller than a year ago, and wholesale stocks also continued smaller than last year. Shipments of commodities by freight decreased, con trary to the usual seasonal trend, and were smaller in July and in the first two weeks of August than in the same period of last year. Prices. The Bureau of Labor Statis tics index of wholesale prices advanced slightly in July, reflecting chiefly in creases in the prices of corn, livestock, cotton, and leather, while prices of wheat, silk, metals and building materials de clined. Since the latter part of July prices of corn, cotton and cattle have continued upward and those of wheat, non-ferrous metals and rubber have also advanced, while hogs, lumber and hides have declined. Bank Credit. There was an increase in the volume of commercial loans at MONEY L--- r -- --) 3 “ -lLr ^ 1 Vn/ \ — RATES j " C c MMERCIAL R eser ve N. Y - - . A c £EPTANCE APER RATE 9ANK DlSCOtJN t r a t e 4ATE ____ ____ 1923 Index numbers of production of m anufac tures and minerals, adjusted for seasonal vari ations (1923-25 average = 100). Latest figures, July, manufactures, 107; minerals, 97. Federal Reserve Board’s indexes of factory em ploym ent and payrolls (1919 = 100). Lat est figures, July, employm ent, 90.7, payrolls, 101. 1 . 1924 I92S 1926 1927 Weekly rates in New York money m arket: commercial paper rate on 4 to 6 m onths’ paper and acceptance rate on 90 day paper. Page One member banks in leading cities between July 20 and August 17, as is usual at the beginning of the crop moving season. Loans on securities as well as commercial loans increased while investment holdings declined and total loans and investments were about $60,000,000 larger than a month earlier. Total borrowings of member banks at the reserve banks increased slightly be tween July 20 and August 24; there was a growth of discounts at the Federal Re serve Bank of New York, partly offset by declines in other districts. There was little change in the system’s holdings of acceptances and a growth in the port folio of United States securities. Money rates on all classes of paper in the open market declined sharply in August and were at a lower level than a year ago. Discount rates at eight Federal Reserve Banks were reduced from 4 to 2>y2 per cent. B U SIN E SS C O N D IT IO N S IN T H E P H IL A D E L P H IA F E D E R A L R E S E R V E D IS T R IC T The first weeks of August have brought some few signs of improvement in the business situation of the Philadel phia Federal Reserve District, after the moderate though steady decline which had been under way since late in 1926. There is little indication, however, that such betterment as has occurred has been more than seasonal in character. Many manu facturers have reported an expansion of operations in August, but this followed upon a decrease in July of more than 7 per cent in factory payrolls of Pennsyl vania, which indicated that the rate of manufacturing activity in that month was at the lowest point in more than two years. Moreover, these recent declines have been widespread throughout the dis trict. In only three of the larger cities — Allentown, Harrisburg, and Johnstown — were either employment or wage pay ments larger than last year, while only five manufacturing industries— shoes, lumber, pottery, electrical machinery and car construction— reported larger payrolls in July than in the previous month. Since the first of August buying has continued restricted in some lines, notably iron and steel, but in the woolen and cotton industries an improved market is reported. In the shoe industry, as well, recent improvement has occurred, as in dicated by increased sales at retail and an expansion of plant operations. The coal mining industries have also curtailed operations to a level much be low that of last year. Anthracite is meeting with an indifferent demand, as is bituminous coal, and fairly heavy stocks of both varieties are in existence. Opera tions are still suspended in the union soft coal fields, while output in the non union mines is maintained at a high rate. Building contracts in the district con Page Two Latest figure compar ed with B U S IN E S S I N D I C A T O R S July, 1927 Philadelphia Federal R eserve D istrict Previous month Year ago -3 4 .1 % -3 5 .8 “ -3 1 .9 “ -2 4 .2 “ -1 8 .0 “ - 6 .9 % - 7 .2 “ - 7.1 “ + 5 .3 “ -1 2 .7 “ $8,386,961 $211,733 $1,510,915 $581,078 $386,139 $3,025,931 $1,681,351 $278,724 $711,090 -1 0 .6 + 2 .2 - 3 .8 -1 4 .3 - 7 .0 -1 2 .7 -1 1 .2 -2 8 .6 - 6 .2 “ “ “ “ “ “ “ “ “ - 7 .9 -1 8 .7 - 3 .2 -1 2 .5 -1 2 .6 - 7 .2 -1 0 .3 - 9 .8 - 2 .7 279,369 $6,827,784 1,331,317 - 1.7 - 7.1 - 4 .7 -1 7 .0 - 3 .2 -1 7 .5 - 3 .7 -1 5 .6 -1 1 .5 -3 0 .6 -1 1 .3 - 0 .3 - 2 .5 “ “ “ “ “ “ “ “ “ “ “ “ “ - $14,369,000 $12,160,000 $1,124,000 $575,000 $510,000 R etail trade — estimated net sales (131 stores)...................... Department stores (6 0).......................................................... Apparel stores (3 0 ).................................................................. Shoe stores (2 5 )........................................................................ Credit stores (1 6)..................................................................... W h o le sa le trade — net sales (138 firm s).................................. Boots and shoes (8 )................................................................. Drugs (1 4 )................................................................................. D ry goods (17).......................................................................... Electrical supplies ( 5 ) ........................................ .................... Groceries (4 6 )........................................................................... Hardware (2 6 ).......................................................................... Jewelry (1 1 ).............................................................................. Paper (1 1).................................................................................. “ “ “ , “ “ “ “ “ P roductive activity: Employment— 849 plants in Pennsylvania........................ Wage payments in above plants........................................... A ctive cotton spindle hours (Penna. and N. J .) ............... Pig iron production.................................................................. Iron casting production (33 foundries)............................... Steel casting production (12 foundries).............................. Anthracite.................................................................................. Bituminous coal— Pennsylvania.......................................... C em en t....................................................................................... Electric power output (14 system s)..................................... men tons tons tons tons tons bbls KW H 6,588,265 72,180,662 261,511 4,082 5,468 5,034,000 8,628,000 4,0 8 0,00 0 389,957,000 6 .8 “ 7 .9 “ - 2 .7 -1 6 .8 -2 2 .3 -2 2 .6 -3 9 .9 -2 3 .4 + 3 .7 + 2 .8 “ “ “ “ “ “ “ “ D istrib u tion : Freight car loadings (Allegheny district— weekly average) Tonnage of vessels (Port of Philadelphia).......................... tons 201,385 3,564,755 - 1.2 “ 1 .3 “ - 5.1 “ 5 .2 “ Financial and cred it: Debits (18 cities)...................................................................... Savings deposits (96 ban ks)................................................... Loans, discounts and investments of member banks (weekly average).................................................................. Bills discounted held bv F. R. B. of Phila. (daily average) Acceptances executed (9 banks for month ended Aug. 10) Bankers’ acceptances sales (4 dealers— weekly average for period ended Aug. 1 0).................................................. Commercial paper sales (5 dealers).......... ........................... Commercial failures— number............................................... Commercial failures— liabilities............................................ $ 2,448,251,000 $648,444,000 - 3 .4 “ + 0 .3 “ - 3 .0 “ + 6 .9 “ $ 1,187,300,000 $47,367,000 $3,408,000 + 0 .3 “ + 3.1 “ + 4 .6 “ + 3 .7 “ - 1.6 “ - 2 .9 “ $618,000 $10,417,000 54 $1,710,627 -7 7 .7 + 3 1 .1 + 3 1 .7 -6 9 .5 -6 8 .2 + 7 9 .8 -2 8 .9 -4 8 .5 $17,559,937 $37,577,665 -1 5 .4 “ -2 1 .1 “ - 9 .4 “ + 0 .3 “ 5,400 $27,385,427 - 5 .4 “ 7 .8 “ + 0 .8 “ + 1 0 .6 “ $84,465,000 $2,992,700 $4,792,900 -1 0 .5 “ -2 6 .1 “ -1 4 .1 “ - 1 .8 “ + 1 3 .9 “ + 5 4 .6 “ “ “ “ “ “ ‘ “ “ B uild in g and real e sta te : Building permits (16 cities)................................................... Building contracts awarded (Philadelphia d istrict)......... Number of real estate deeds recorded (Philadelphia co u n ty )................................................................................... Value of mortgages recorded (Philadelphia cou n ty)........ M isc e lla n e o u s: Sales of life insurance (Penna., N. J., and D e l.)............... Retail sales of automobiles (12 distributors)..................... Wholesale sales of automobiles (13 distributors).............. * Bureau of Census preliminary figures. tinue in large yolume as compared with last year, despite a decline from the June volume, but much of the present activity is in the construction of roads and public works, rather than residences and com mercial and industrial buildings. Evi dence of this is seen in the fact that building permits issued in the cities of the district have been generally smaller than last year in the face of larger volumes of contract awards. Only a fair market exists for most building materials but plant operations in these industries have been wTell maintained, and in the cement industry there was a larger output in July than in the previous year. Real estate transactions in Philadel phia declined seasonally from June to July, but in the latter month were ahead of the volume in the same month of 1926. Favorable weather in the past month has brought an improvement in agricul tural prospects in the district. The crops of oats, white potatoes and hay promise to be in larger volume than in 1926, but winter wheat and corn will be con siderably smaller, and in spite of recent improvement in the tobacco and fruit crops, these too, will be under last year’s yield. Mercantile conditions in the district present much the same picture as does the industrial situation. Freight car load ings in the Allegheny district have been under last year’s totals owing to dimin ished shipments of coal and other raw materials, but shipments of finished mer chandise have been slightly larger than in 1926. The volume of business pay ments, as reflected by debits in the prin cipal cities of the district, was smaller in July than in the same month of last year, but in the first three weeks of August, a considerable gain occurred. The large decline of nearly 7 per cent in July retail volume is partly attributable to the fact that the number of trading days was reduced by the occurrence of five Sundays in July this year. H ow ever, the first seven months of 1927 showed a decline of close to four per cent in retail sales as compared with the same period of the preceding year. W hole sale dealers report some quickening of demand during August, although July sales were smaller in all lines than in 1926, and sales of shoes alone showed an increase over the June total. City conditions. July proved to be a month of somewhat more than the usual summer recession in trade and industry of most of the leading city areas of this district, decreased retail buying and lower rates of plant operations being widespread. Savings deposits alone showed a gain in the majority of cities. Compared with a year before, retail sales were smaller in nine out of thirteen cities, and factory wage payments declined in all areas except Allentown and Harris burg. Debits and the value of building permits also were slightly lower, but the sales of electricity increased a little. The general level of wholesale prices of leading commodities increased slightly in the four weeks ended August 17, ac cording to Fisher’s index. The current weekly price index of 138.6 compares with 147.2 a year earlier. Compared with the pre-war level, the present level is almost 39 per cent higher. A slight reaction from the steady down ward trend which began last September occurred in July when the general price index of the Bureau of Labor Statistics rose nearly two-thirds of one per cent from the low level reached in June. The group of farm products advanced 1 2/3 per cent, owing largely to the increase in prices of cattle, hogs, lambs, hides, cot ton, eggs, tobacco and wool. Clothing materials and miscellaneous commodities also averaged higher than in June, while small decreases took place in foods, fuels, metals, building materials, and chemicals and drugs. PER CENT PRICES 200 P h iladelphia Federal R e se rv e D istrict Allentown H arrisburg Johnstown Lancaster Philadelphia Reading Scranton Trenton Wilkes-Barre Williamsport Wilmington York area.. . « - 5 .5 % - 5 .8 + 4 .5 - 2 .4 - 5 .7 - 6.1 -1 6 .4 -1 1 .0 - 6 .7 -1 1 .0 -1 2 .3 - 0 .2 “ u u “ “ “ u “ “ Wage payments Employ ment + 1 .8 % “ “ “ “ “ “ “ “ “ “ “ + 1.7 - 7 .9 - 2 .7 - 5 .6 -1 0 .9 -1 5 .0 -1 7 .6 - 8 .0 - 4 .7 - 8.1 - 2 .8 “ “ “ “ “ “ “ “ “ “ “ Value of building permits Debits Savings deposits Retail trade sales -5 2 .5 % -3 8 .0 “ + 3 6 .3 “ -1 5 .3 “ -5 9 .1 “ -1 4 .2 “ -4 6 .2 “ + 5 .3 “ -3 7 .2 “ + 2 2 4 .3 “ + 8 6 .5 “ + 9 3 .7 “ -8 6 .0 “ - 5 .8 % + 4 .2 “ -1 3 .2 “ - 8 .8 “ -1 2 .3 “ + 7 .4 “ - 7 .8 “ - 6 .5 “ + 13.2 “ -1 3 .9 “ + 7 .0 “ + 1 0 .4 “ - 5 .6 “ + 4 .7 % -4-13.9 “ + 7 .6 + 4 .5 + 1 1 .6 “ + 7 .0 “ + 3 .7 “ + 11.8 “ + 6 .2 “ + 6 .6 + 8.1 “ + 5.4 “ + 9 .7 + 1 0.9 % + 5 .8 “ -1 1 .3 “ -1 0 .4 “ + 6 .3 “ - 8 .4 “ -1 2 .4 “ - 8 .0 “ - 7 .3 “ -2 4 .1 “ + 9 .4 “ - 3 .8 “ - 2 .6 “ + 6.1 “ + 10.2 “ t § § - 8 .9 “ + 2 9 .3 “ _ + + + + + + + + - 4 .5 % -1 9 .3 -2 4 .5 “ -1 4 .1 “ -2 9 .2 “ -3 8 .6 “ -1 8 .8 U -2 1 .1 “ -2 3 .0 - 8 .5 “ -1 8 .1 “ -2 2 .5 “ -1 9 .1 - 9 .7 % * -1 1 .5 “ + 0 .0 “ - 4 .6 “ f - 1.4 “ - 0 .4 “ + 1 .0 “ + 2 0 .6 “ + 0 .2 “ J § § - 8 .2 “ + 0 .7 “ PER CENT 200 150 150 100 100 50 50 W Electric power sales - 4 .1 % * -1 6 .6 “ + 8 .6 “ + 5 .2 “ f + 17.3 “ + 3 .8 “ July, 1927, compared with June, 1927 area.. . Allentown Altoona Harrisburg Johnstown u Lancaster Philadelphia “ “ Reading Scranton Trenton Wilkes-Barre Williamsport Wilmington u York w u u u + + - 0 .3 % 4 .8 “ 3 .6 4 .6 “ 3.1 “ 1.0 “ 2 .9 “ 8 .6 “ 1.3 1.1 “ 6 .8 “ 5 .0 U 2.1 U -3 8 .0 % 7 .5 % + 2 9 .1 - 6 .7 “ + 5 4 .0 - 5 .6 “ + 2 3 .1 “ -1 5 .6 U - 9 .0 “ -5 9 .8 U -2 4 .2 “ - 2 .3 “ - 9 .5 “ -6 3 .3 “ - 6 .0 “ -1 4 .3 “ -1 0 .0 “ -6 2 .3 - 5 .7 “ + 2 8 9 .6 U - 9 .7 “ + 2 9 1 .0 U - 0 .8 “ + 6 1 .0 U - 3 .8 -7 8 .8 U * Includes Wilkes-Barre and Williamsport areas, § Included in Allentown area. C O M M O D IT Y P RICES WHOLESALE July, 1927, compared with July, 1926 C O N D IT IO N S P R IC E S O F C O M M O D I T I E S (Q u otation s are for third w eek of A u gust except w here noted) 4 .0 % + 2 .8 “ - 2.4 “ - 4 .2 -1 0 .8 “ -4 5 .5 - 2 .3 “ - 3.1 “ + 2 2 .1 “ -1 5 .9 U + 6 .9 “ + 15.5 “ - 4 .9 0 .5 % 2 .9 “ 0 .7 “ 1.9 “ 0 .8 “ 0 .0 1 “ 1.6 “ 1 .0 “ 1.6 “ 0 .2 “ + 0 .4 “ 0 .2 “ + + 0 .7 “ f Production (not sales), Latest M onth ago Year ago 144.6 149.0 119.8 154.1 2.37^ $18.13 $20.76 12.88 6.65^ 19.78;* 35.67 13.211 65. 14;* 97 i 166.5 50.20 15.00 205.5 $63.00 $115.00 $2.21 $14.50 $2.05 $10.94 $3.00 $2.65 15fi 20 36.5;< $3.25 12;< $1,291 $1.528 $7.70 143.7 146.7 119.9 154.3 2.37^ $18.42 $20.76 12.75fi 6.50^ 17.70;* 31.80 12.179 64.69;* 97 i 165.1 52.99 15.00 203.7 $63.00 $120.00 $2.21 $15.50 $1.82 $10.94 $3.00 $2.90 14;* 23.5;* 35.9;* $3.25 12;* $1,199 $1.54 $7.65 150.7 152.7 127.3 162.0 2.43;* $19.46 $21.76 14,13;* 8.90;* 18.21 ;* 32.39 12.585 66.75;* 96;* 171 .4 59.51 16.50 208.3 $60.00 $119.00 U U t Includes Camden area. Source of quotations W h o le sa le All commodities,* index number, 1913 =100 “ “ Raw materials “ “ « “ Producers’ goods “ “ “ “ Consumers' goods “ “ Finished steel, average............... ...........lb. Pig iron, average........................... ...........ton Pig iron, #2 X Phila..................... “ Copper, electrolytic..................... ...........lb. Lead................................................ ...........“ Cotton, N. Y . middling s p o t. . . ...........“ Y a r n s ..................................index numbers G o o d s ................................. “ W ool, domestic raw ................... ...........lb. Foreign, Australian 64’s ........ ........... “ Worsted yarn s...................index numbers Silk, raw (av. of 6 grades) . .index numbers R a y on ...................................... “ “ Construction costs-1913 =100 “ Lumber, yellow pine..................... . . 1000 ft. Oak, plain.............................. Cement, Philadelphia carloads . . ......... bbl. Bricks, com m on.................. ___ 1,000 Fuels: bituminous co a l.............. Anthracite, chestnut, Philadelphia. . “ Coke, furnace............................. short ton Petroleum, Penna. crude.......... ........ bbl. Gasoline, tankwagon, Phila. .. ..........gal. Hides, packer, #1, native............. ...........lb. Rubber, 1st latex crepe................. Paper, news roll............................. Tobacco, m edium .......................... Corn, $ 2 yellow ........................... Wheat, #2 re d ............................. Flour, Minn, patent....................... $17.50 $1.99 $11.47 $3.00 $3.40 20 ;* 15;* 40.5;* $3.50 15;* $ .926 $1.459 $7.88 B. of L. Statistics “ “ “ “ “ “ “ “ Iron Age “ “ “ “ “ “ “ “ Fairchild’s « D un’s average Textile W orld Fairchild’s « a Eng. News Record D un’s Review « « Coal Age Iron Age Oil, Paint & Drug Rep. « « « D un’s Review u a a « « « a u Jour, of Com ., N. Y . R etail 1923 1924 1925 1926 1927 Index o f United States Bureau of Labor Statistics (1913 = 100, base adopted by Bu reau). Latest figure, July, 144.6 . Food, index number, *1913 =100 Cost of living— (1913 =100) Philadelphia................................ United States.............................. * July figures, f June figures, 153.4 178 .Of 173 .4 f 158.5 157.0 182 ,3£ 175 .6 f 180.6 174.8 B of L. Statistics a u U u t December, 1926, figures. Page Three FINANCIAL The reserve ratio of the Federal Re serve Bank of Philadelphia increased from 75.8 per cent on July 20 to 81 per cent on August 17. The combined Fed eral reserve note and deposit liability ad vanced in this period, but this was ex ceeded by a gain in cash reserves from 202.3 to 219.4 millions, owing mainly to a favorable balance of 21.2 millions in the transit clearings with other districts. Withdrawals of Government funds from banks of the district amounted to 12.4 millions in the four weeks. The return movement of currency and coin from banks of the district slightly exceeded payments to them, and there was little change in the reserve balances of mem ber banks. Borrowings of member banks from the Federal Reserve Bank declined 4.7 millions in the four weeks. This decline, though not large, was general, as the following table show s: July 20 August 17 $15,000,000 11,800,000 $14,000,000 9,5 0 0,00 0 Bills discounted for banks in: 19 other cities. . . . Balance of the 15,000,000 13,600,000 $41,800,000 $37,100,000 Purchased bills in the portfolio of this bank were reduced 8.2 millions, but hold ings of United States securities advanced by 4.1 millions. The total bill and se curity holdings of this bank on August 17 were 75.8 millions, nearly 10 millions lower than they were four weeks earlier, and 8 millions below the figure of a year ago. Borrowings of member banks de clined 5 millions in the year. According to the reports of 126 member banks in the Philadelphia Federal re serve district, loans and discounts in creased nearly 20 millions in the five weeks ended August 17. Philadelphia CONDITIONS Loans on stocks and bonds Other loans and discounts Total loans and discounts Invest ments Net demand and time deposits Changes in five weeks ended August 17: Philadelphia banks (35 b an k s)..................... Banks outside Philadelphia (91 banks). . . . + 1 7 i 357 129* + 2,731 266* + 2 0 ,0 8 8 237 + 9,893 - 1,375 + 2 0 ,9 2 5 - 1,337 (Figures in millions of dollars) + 1 7 ,2 2 8 f + 2 ,4 6 5 f + 1 9 ,85 1 + 8 ,5 1 8 698 + 1 4 ,8 5 2 * + 1 2 ,2 1 4 - 4,925* + 1 1 ,5 1 6 + 1 4 ,4 1 7 + 28,879 + 8,175 + 3 1 ,7 4 1 + 2 1 ,5 8 4 All reporting banks (126 banks)............... + 1 4 ,154f + 7 ,2 8 9 f + 2 5 ,9 3 3 + 3 7 ,0 5 4 + 5 3 ,3 2 5 * 57 banks, f 92 banks. banks report a gain of more than 17 millions in loans on securities and an ad vance of 2.7 millions in other loans and discounts, whereas, outside of the city, there was a small decline in both classes of loans. Compared with a year ago, the loans of 126 banks on August 17 were almost 26 millions higher, investments gained 37 millions and the total of net demand and time deposits increased 53 millions. Banks in Philadelphia reported the largest gains in investments and in deposits, as the accompanying table shows, and they also experienced a gain of 11.5 millions in loans owing to an increase in loans and discounts other than those secured by stocks and bonds. Outside of the city the figures of 57 banks indicate that there was a substantial advance in loans se cured by stocks and bonds which was only partially offset by a decline in other loans, which are largely commercial in nature. The total increase in the year in the loans of 91 banks outside of the city was 14 millions. Commercial paper. Sales of com mercial paper in the Philadelphia Fed eral reserve district by five dealers amounted to $10,417,000 in July, which compares with $7,948,000 in June. The increase in sales was the result of heavier purchasing by banks outside of Phila delphia. Comparative figures follow : posed of at 4 per cent, 57 per cent at 4*4 per cent, and 13 per cent at higher rates. Bankers’ acceptances. Sales of bankers’ acceptances in this district by four dealers averaged only $618,000 weekly in the five weeks ended August 17, as compared with $2,772,000 in the preceding period and $1,941,000 a year ago. These declines were the result of smaller sales to the Federal Reserve Bank. The volume of bankers’ acceptances executed by 9 banks in this district in the month ended August 10 was $3,408,000, as against $3,257,000 in the previous month and $3,508,000 a year earlier. For the eight months ended August 10 the total executed was $33,222,000 in 1927, $27,745,000 in 1926, and $33,900,000 in 1925. Debits to individual account. In fluenced by larger totals for Philadel phia, check payments in 17 cities of the district in the three weeks ended August 17 were 80.5 millions, or 5.2 per cent, greater than in the same weeks of 1926. In Philadelphia there was an increase from 1,126 to 1,213 millions; three an thracite cities— Scranton, Wilkes-Barre and Hazleton—show a decline from 100 to 93 millions; and the total for 13 other cities, predominantly industrial, shows practically no change. Sales to City banks 1927— July. .. J u n e... M a y ... 1926— J u ly .. . . $3,099,500 . 4,2 9 3,00 0 . 1,464,500 . 2,2 3 2,50 0 Country banks Total $7,317,500 3,655,000 3,245,200 $10,417,000 7,9 4 8,00 0 4 ,7 0 9,70 0 3 ,5 6 0,90 0 5,7 9 3,40 0 The reports of three dealers, who di vided sales according to rates, show that 30 per cent of their total in July was dis Page Four + 1 9 ,5 8 8 All reporting banks (126 banks).............. Changes in year ended August 17: Philadelphia banks (35 b an ks)..................... Banks outside Philadelphia (91 ban ks). . . . Source: Dun's Review. DISTRIBUTION Railroad shipments of merchandise and miscellaneous commodities in the Alle gheny district, which includes this sec tion, increased in the latest month about 3 per cent and were 2 per cent in excess of the volume of a year earlier. Freight car loadings of the leading raw commodi ties, however, have declined recently. Compared with a year ago, the shipment of coal in the latest month was 22 per cent smaller, lumber 15 per cent smaller, and that of ore and coke was smaller by 13 and 9 per cent, respectively. The de cline in the movement of livestock, grain and grain products was less pronounced. Retail. Trading at retail appears to be hardly fair, increases in sales being practically offset by decreases. Prices continue steady, and concessions incident to clearance sales have been no more than usual. Sales in July were almost 7 per cent smaller than a year ago, owing partly to fewer trading days. O f the reporting groups, shoe stores alone showed gains during the month. The total retail busi ness transacted between January and July also declined nearly 4 per cent as compared with the similar period last year. Inventories held by retailers in the dis trict were smaller at the end of July than on the same date a month and a year before. Accounts receivable were 5 per cent greater than at the same time fast year. Collections during July declined somewhat in contrast with those of a year earlier. Wholesale. Preliminary reports in dicate that business at wholesale gen erally is beginning to show a little more activity than in July, the market for shoes, dry goods, groceries, jewelry, and paper being fairly strong. Buying for immediate or fall delivery predominates. Prices remain unchanged, except for some advances in shoes and cotton piece goods. All wholesale lines showed a smaller volume of business in July than a year before. Similar declines occurred be Automobiles. Retail sales of passen ger cars in July by 13 distributors of this district were appreciably above the total of a year before, both in number and value, the demand for less expensive cars being especially active. Between July, 1927, change from A U T O M O B IL E T R A D E Value Number Value Sales, new cars, wholesale....................... Cars under $1,000................................. Cars $1,000 to $2,000........................... Cars over $2,000.................................... + 7 0 .0 % + 1 0 5 .0 “ + 10.0 “ + 7 6.9 “ + 5 4 .6 % + 106.2 “ + 6 .6 “ + 4 2.5 “ -1 9 .1 % -2 9 .7 “ + 4 1 .1 “ + 2 5 .2 “ -1 4 .1 % -3 0 .6 “ + 3 6 .9 “ + 1 3 .7 “ Sales, new cars, at retail.......................... Cars under $1,000................................. Cars $1,000 to $2,000........................... Cars over $2,000.................................... + 18.2 “ + 2 0.2 “ 8 .9 “ + 5 .6 “ + 13.9 “ + 20.4 “ 8.1 “ 5 .9 “ -2 9 .1 -3 1 .1 + 5 .8 - 9 .4 “ “ “ “ -2 6 .1 -3 1 .2 + 1 4 .7 -1 1 .9 “ “ “ “ Stocks of new ca rs..................................... Cars under $1,000................................. Cars $1,000 to $2,000........................... Cars over $2,000.................................... + 1 1 2 .4 + 2 2 5 .0 + 24.6 - 3 9.0 + 3 5.5 + 2 2 6 .2 + 29.2 - 4 8.4 + 1 1 .5 + 3 9 .6 -3 8 .0 -1 8 .8 “ “ “ “ - 0 .2 + 3 9 .1 -2 1 .9 -2 3 .1 “ “ “ “ Sales of used ca rs...................................... Stocks of used cars.................................... Retail sales, deferred paym ent............... + 24.6 “ + 2 9.8 “ + 15.7 “ Philadelphia Federal R eserv e D istrict Boots and shoes................... D rugs..................................... Dry g ood s.............................. Electrical supplies............... Groceries................................ Hardware.............................. Jew elry.................................. Paper...................................... July, 1927, with July, 1926 - -4 .1 -5 .7 + 0 .1 -3 .2 -4 .2 -4 .3 -4 .0 - 2 .7 - 4 .2 + 5 .6 + 2 .8 -6 .7 - 7 .2 “ - 9 .2 “ - 3 .3 “ - 7.1 “ -1 2 .7 “ -1 9 .8 “ - 6 .3 “ - 2 .7 “ - 3 .8 “ + 1 .4 “ + 5 .3 “ -1 2 .7 “ 6 .9 % Stocks, July 31, 1927, compared with July 31, 1926 June 30, 1927 July 31, June 30, 1927 1926 -1 8 .7 % - 3 .2 “ -1 2 .5 “ -1 2 .6 “ - 7 .2 “ -1 0 .3 “ - 9 .8 “ - 2 .7 “ + 2 .2 % - 3 .8 “ -1 4 .3 “ - 7 .0 “ -1 2 .7 “ - 1 1 .2 “ -2 8 .6 “ - 6 .2 “ -3 3 .5 % + 14.3 “ -3 6 .3 “ -2 6 .5 “ - 4 .8 “ - 1 .6 “ - 3.1 “ - 6 .4 “ + 2 .4 % - 4 .8 “ + 0 .0 “ + 4 .5 “ + 2 .9 “ - 0 .6 “ + 1.4 “ - 1.0 “ -0 .2 % -3 .3 “ - 5 .6 “ -1 .5 “ + 1.4 “ -6 .1 “ + 3 .9 “ -6 .5 “ 1 -3 % - 3 .7 % - 2 .9 - 2 .0 - 4 .6 -1 0 .7 -1 3 .8 -1 9 .4 - 7 .7 - 7 .3 - 6 .4 -1 0 .5 - 9 .6 - 1 .2 “ “ “ “ “ “ “ “ “ “ “ “ 1926 1927 - 1 .4 “ + 3 .8 “ + 4 .5 “ Collections, July, 1927, compared with Accounts out standing, July 31, 1927, compared with June, 1927 with with July 31, 1926 June 30, 1927 - -1 0 .2 “ - 6 .0 “ -1 2 .1 “ July, 1926 Comparison of stocks + 0 .4 “ - 0 .2 “ + 1 .6 “ + 9 .6 “ + 3 .8 “ - 4.1 “ + 12.6 “ + 16.6 “ + 2 0 .6 “ + 2.1 “ + 1.9 “ + 8 .5 “ “ “ “ “ + 16.3 “ + 2 6.8 “ + 2 .9 “ July 31, 1927 - 3 .9 % “ “ “ “ Jan. 1 to July 31 Department stores..................... in Philadelphia........................ outside Philadelphia.............. Apparel stores............................. Credit stores................................ Net sales, July, 1927, compared with W H OLESALE TRADE All reporting stores.................... in Philadelphia................... June, 1927 Number R E T A IL T R A D E “ “ “ “ “ “ “ “ “ “ “ “ July, 1926 P h iladelphia F ed eral R eserv e D istrict 13 distributors Comparison of net sales Jan. 1 to P h ilad elphia Federal R eserv e July 31, 1927, D istrict with Jan. 1 to July 31, 1926 June and July the medium priced cars alone showed a gain in number and value. Retail sales on deferred payment ex ceeded the total of a year earlier, as did sales of used cars. The wholesale distribution was con siderably more active in July than in the like month last year, the total gain being 70 per cent in number and nearly 55 per cent in value. Sales from June to July decreased in less expensive cars but increased in other classes of auto mobiles. Stocks of new and used cars at the end of July were much larger than a year earlier. tween June and July, with the exception of shoes which registered a slight gain. Stocks held by dealers showed a seasonal increase from June to July, but compared with a year before, they were smaller, except in drugs. Accounts outstanding were greater in groceries and jewelry than a year earlier but in other lines they were smaller. Collections in the main lagged behind those in July, 1926. Outstanding orders at end of month compared with year ago - 0 .6 % + 0 .0 “ - 5.1 “ + 1 1 .1 “ - 2 .4 “ - 4 .2 “ -1 0 .5 “ - 3 .8 “ July, 1926 June, 1927 - 8 .2 % - 6 .5 “ -1 1 .9 “ -2 1 .3 “ - 8 .7 “ -1 0 .6 “ - 7 .5 “ - 3 .3 “ -1 2 .2 % - 9 .2 “ - 4 .2 “ + 1.7 “ - 8 .0 “ - 2 .2 “ + 3 1 .7 “ - 3 .0 “ Accounts receivable at end of month compared with year ago Collections during month compared with year ago 1.92 1.82 -1 0 .6 % + 5 .1 % - 1.91 2.05 1.65 2.36 1.52 1.60 1.42 3.37 3.49 2.84 1.64 1.58 1.81 1.91 1.63 2 .35 1.50 1.62 1.37 3.26 3 .4 0 2.69 1.60 1.32 - + 4 .1 - 3 .4 + 4 .1 + 1 3 .0 + 3 .4 “ “ “ “ “ - 5 .4 + 1 8 .2 — 5 8 + 8 .8 + 7 .4 “ “ “ “ “ + 3 .4 + 1 4 .2 + 1 4 .6 + 1 3 .0 + 6 .3 + 3 .8 “ “ “ “ “ “ + + + + + + “ “ “ “ “ “ 6 .0 “ -3 6 .8 “ 1 .6 % 7 .4 9 .0 9 .0 9 .1 5 .7 0 .6 Page Five INDUSTRIAL Manufacturing industries of this dis trict generally are beginning to show some signs of seasonal improvement after the dulness that prevailed in the past two months. Evidence of this expansion since August 1 is manifested by a few industries in which there has occurred a slight gain in demand, prices, opera tions, and to some extent in the purchase of raw materials. Stocks in the main are moderate and somewhat lower than those of a year ago. Buying for prompt delivery continues. Further industrial recession during July was evidenced by another decline in factory wage payments, employment, and man-hours worked in Pennsylvania. Total payrolls and employee-hours each decreased nearly 7 per cent from the June volume; the drop in employment, though less widespread, amounted to 1.6 per cent. Similar but smaller declines occurred between June and July last year, indicating that this movement is partly seasonal. Consumption of electric power by in dustries decreased between June and July and was a trifle smaller than a year be fore. Total sales of electricity in the month also declined slightly in most of the leading cities of the district, but exceeded that of a year before by almost 3 per cent. The output of electric power by 14 central stations was 2.5 per cent less than in June but 2.8 per cent more than a year earlier. Details fo llo w : E L E C T R IC P O W E R Philadelphia F e d eral R eserv e D istrict 14 sy ste m s July, 1927, change from July, 1926 June, 1927 Rated generator capacity.......... Generated ou tp u t....................... H ydro-electric......................... Steam ........................................ Purchased................................. - 0 .6 % -1- 2 .8 “ + 13.3 “ - 6 .9 “ + 6 6 .7 “ - 2 .6 % - 2 .5 “ -3 2 .2 “ - 3 .0 “ + 10.0 “ Sales of electricity....................... L ighting.................................... M unicipal............................. Residential and commercial P ow er........................................ M unicipal............................. Street cars and railroads .. Industries............................. All other sales.......................... + 2 .8 + 11.9 + 5 .2 + 1 2 .8 - 0 .6 + 8 .3 - 2 .2 - 0 .2 + 1 4 .2 + + - Source: Iron Age. Page Six “ “ “ “ “ “ “ “ “ 3 .8 5 .7 2 .8 6 .7 3 .5 1.9 2 .0 3 .9 2 .6 “ “ “ “ “ “ “ “ “ CONDITIONS Iron and steel. Nearly all important purchasers of iron and steel products are somewhat less active than last month, buying being mainly in small lots for prompt delivery. The demand for steel castings, however, has rallied a little re cently. Plant operations of the iron and steel industry of this district have in creased slightly since the middle of last month. The daily output of blast furnaces in the district was 7 per cent lower in July than in June and 8 per cent less in the past seven months than in the same period of last year. Production of iron and steel castings also decreased. But shipments and unfilled orders for steel castings showed a marked gain be tween June and July. Following a steady decline since D e cember, unfilled orders of the United States Steel Corporation increased about 3 per cent from June to July, but were still nearly 13 per cent under the volume at the end of July, 1926. The daily out put of steel ingots in the country de clined 5 per cent in the month and 3 per cent in the first seven months of this year as compared with the same period last year. Similarly, production of pig iron dropped almost 8 per cent in July and 3 per cent in the first seven months. Textiles. Some of the textile indus tries, particularly wool and cotton, have displayed considerable strength during the past three weeks, although cotton spindle activity in Pennsylvania and New Jersey has declined recently. While domestic consumption of raw cotton declined from June to July, the monthly average mill takings this year have exceeded those of last year by about 12 per cent. After record breaking exports this year, for eign takings of late have fallen off ma terially, largely a reflection of higher prices resulting from the smaller indi cated yield of cotton this season. On August 1, the official report showed a condition of 69.5 per cent of normal, in dicating a production of 13,492,000 bales of cotton on an area of about 41,139,671 acres as against the condition of 69.8 per cent a year before and the final yield of 17,977,374 bales from 47,087,000 acres. Source: Department of Commerce. Local consumption of raw wool com pares favorably with a year ago, the average monthly mill takings between January and July being 12 per cent greater than at the same time last year; but a decline of 3 per cent from the June total is noted. Operations of woolen and worsted machinery generally show a gradual expansion. Demand for carpets and rugs is quiet, but medium stocks are being maintained. The silk situation continues mixed. In Pennsylvania, as in the country, factory payrolls and machinery operations con tinued the decline which began early in the year, reaching lately the lowest level since the mid-summer of 1924. Imports and deliveries of raw silk to mills in the country, on the other hand, have been in excess of the monthly average of a year ago, the latter being about 20 per cent greater in July than in the like month of 1926. Stocks of raw silk in warehouses also were larger in July than a year earlier. In response to a steady demand, the output of full-fashioned hosiery remains in large volume. Seamless grades, how ever, are quiet. The average monthly production of all hosiery in this district thus far this year has continued close to that of a year ago, and exceeds the average for the three years prior to 1926 by about 7 per cent. Leather. An improved demand for boots and shoes is reported and the out put in recent months has been about 2 per cent ahead of the total of a year before. Factory operations have in creased in recent weeks. Good demand, higher prices, and some increase in un filled orders also characterize the situa tion in sole leather. B uilding. Street and highway, and general construction continues active but building operations have eased off some what of late. While the value of build ing contracts awarded declined between June and July in eastern Pennsylvania, a considerable gain occurred in southern New Jersey and Delaware as compared with a year before. The monthly average of contracts in the district this year ex- Num ber of wage earners— week ended EM PLO YM EN T AND W AGES in P ennsylvania Source: W . F. Dodge Corporation. ceeds that of last year by 15 per cent. The volume of residential building is about 4 per cent greater. Estimated cost of building under per mits issued in 16 cities of this district decreased 15 per cent from the June total and 9 per cent from that of a year earlier. Construction costs, though slightly higher than a month ago, are still under the level prevailing at the same time last year. Real estate deeds recorded in Philadelphia during July fell off, as did mortgages, though both were in a larger volume than a year before. The market for building materials con tinues moderately active, and prices gen erally show little change in the month. Buying for quick deliveries predominates, and unfilled orders do not measure up to the volume of a year ago. Plant operations average approximately 75 per cent of capacity. Agriculture. A considerable improve ment in crop prospects has occurred since early July chiefly as a result of more favorable weather. The growth of Penn sylvania tobacco has advanced materially July 15, 1927 Per cent change from month ago A ll industries ( 4 6 ) ...................................... 849 2 7 9 ,3 6 9 - M e ta l m an u factu res: 283 1 4 2 ,1 5 0 - 19 18 19 39 55 16 10 34 17 25 3 8 9 10,373 18,880 8,710 10,644 8,746 3,634 11,169 2,807 37,523 4,857 18,287 4,143 1,570 807 171 5 4 ,2 1 3 Automobiles, bodies, and parts.. . Car construction and repair......... Elec, machinery and apparatus. . Engines, machines, mach. tools. . Foundries and machine sh op s... . Heating appl. and apparatus. . . . Iron and steel blast furnaces........ Iron and steel forgings................... Steel works and rolling mills........ Structural iron works..................... Misc iron and steel products. . . . Shipbuilding..................................... Hardware.......................................... Non-ferrous m etals......................... T e xtile products: Carpets and rugs............................. C lothing............................................ Hats, felt and oth er....................... Cotton goods.................................... Silk goods.......................................... W oolens and worsteds................... Knit goods and hosiery................. Dyeing and finishing textiles. . . . F o od s and tob ac co: Bakeries............................................ Confectionery and ice cream ........ Slaughtering and meat packing. . Cigars and to b a cco ......................... B uilding m a te r ia ls : Brick, tile, and terra cotta products Cem ent.............................................. Glass................................................... P ottery.............................................. C onstruction and contracting: Buildings........................................... Street and highw ay........................ General.............................................. C hem icals and allied products: Coal. Owing largely to sluggish de mand, the output of anthracite is still running behind the volume of a year ago. Last year in the spring and early summer, it must be remembered, the demand was exceptionally active after the prolonged suspension of mining. As is usual for this season, retail stocks of anthracite are increasing. According to official reports, retail coal yards on July 1 held enough coal to last 50 days at the rate of con sumption prevailing during May and June. Production of bituminous coal in this section is maintained at a high rate in the non-union fields, but in the union fields the suspension of operations continues, with the result that production in Penn sylvania has been from 15 to 20 per cent under the volume of a year ago. Con sumers’ stocks of soft coal in the country on July 1 totaled 62,000,000 tons, which is a decrease of 13,000,000 from the total reported on April 1, according to esti mates recently issued by the Bureau of Mines. At the rate of consumption ex isting in May and June, this supply is sufficient to last 54 days on the average as against 34 days a year before. No. of plants report ing Chemicals and drugs...................... E xplosives......................................... Paints and varnishes...................... Petroleum refining.......................... M isce lla n e o u s ind u stries: Lumber and planing mill products Furniture.......................................... Leather tanning.............................. Leather products............................. Boots and shoes.............................. Paper and pulp products.............. Printing and publishing................. Rubber tires and g o o d s................. Novelties and jew elry.................... 11 T otal weekly wages— week ended July 15, 1927 - 2 5 .8 0 + + - - + + - 2 .2 1 ,1 2 9 , 1 8 7 3 .9 2 .5 1 .2 1 .7 1 .5 5 .6 1 .7 68,281 94,740 116,901 91,813 278,278 121,277 313,347 44,550 106 2 3 ,7 7 7 + 0 .5 4 8 4 ,8 0 5 30 23 14 39 4,559 5,557 2,089 11,572 - + 2 .8 - 0 .2 + 0.1 130,557 123,359 60,181 170,708 66 1 9 ,7 4 4 26 14 23 3 4,262 7,621 6,870 991 34 5 ,9 5 5 18 3 13 962 1,806 3,187 i.o 0 .9 - 3 .6 - 1 .4 + 0 .7 -1 0 .8 + 11 .6 5 2 6 ,2 6 5 104,636 237,718 161,442 22,469 + + 0 .8 9 .5 2 .6 6 .6 1 6 8 ,6 1 4 0 .7 3 .1 3 .7 0 .5 2 .0 2 3 7 ,7 2 8 0 .8 6 1 4 ,2 7 6 3 .8 67,031 47,437 141,917 10,345 69,914 94,164 126,707 24,674 32,087 39 8 ,6 4 8 22 3 9 5 1,250 544 1,122 5,732 + + + 150 24,882 3,131 2,077 5,561 520 3,841 3,747 3,670 853 1,482 + + + + + + and its condition is nearly equal to that of last year and the ten-year average. Fruits also have improved appreciably, although the indicated production is un der the total of last year. Harvesting of grains is practically completed, and the quality of grains is up to the average, except for wheat which is somewhat below last year’s grade. Early reports by farmers throughout the country indicate their intentions to plant 48,637,000 acres to winter wheat for next year, which is an increase of 13.7 per cent over the total acreage sown last fall. This contemplated area is greater than that planted in any season except 1918. An intended increase in rye plantings this fall is put at 20 per cent. In this section the estimated increase is about 12 per cent in plantings of winter wheat and from 30 to 40 per cent in rye. Pasturage in the district continues $ 2 4 .4 4 - 3 ,6 6 6 ,9 0 9 2,844 5,434 4,381 4,254 15,990 5,734 13,672 1,904 0 .9 1.8 6 .1 7 .9 1.1 2 .5 5 .3 1 .8 33,153 52,634 82,827 33,608 12,221 27,163 164,736 Per cent change from month ago 7 .1 $ 6 ,8 2 7 ,7 8 4 305,732 481,356 205,969 299,862 240,023 94,211 268,500 58,010 945,025 126,531 474,098 110,822 36,808 19,962 July 15, 1927 8 .6 - 4 .2 + 4 .7 + 5 .5 - 4 .7 - 6 .0 -1 7 .5 -1 5 .9 -1 6 .5 -1 1 .7 5 .7 -1 4 .6 -1 8 .8 -1 9 .2 - 3 .8 1 .7 2 .2 - 5 .0 + 2 .2 + 9 .5 - 2 .3 - 2 .2 - 8 .4 - 3 .2 - 1 .4 - 2 .8 1 .1 - 3 .7 -1 1 .9 - 9 .9 + 0 .4 10 34 6 15 41 14 41 10 25 19 17 8 22 17 36 3 3 Per cent change from month ago Average weekly earnings— week ended - 7 .1 8 .7 3 .0 2 .1 4 .3 6 .8 - 0 .6 -1 3 .0 - 5 .9 - 29.47 25.50 23.65 28.17 27.44 25.92 24.04 20.67 25.19 26.05 25.93 26.75 23.44 24.74 2 0 .8 3 24.01 17.43 26.68 21.58 17.40 21.15 22.92 23.40 3 .2 5 .0 4 .9 2 .0 0 .9 28.64 22.20 28.81 14.75 - 9 .4 5 .2 5 .5 -1 8 .0 + 1 .7 2 6 .6 5 - 24.55 31.19 23.50 22.67 + + + 0 .4 9 .6 5 .3 1 .5 34.46 29.14 25.99 - 6 .8 - 3 .9 -2 0 .4 -1 1 .7 - 5 .3 26.89 22.47 24.21 28.74 - - - + + - 0 .9 2 .6 1 .6 1 .3 1 .5 11 .5 4 .4 3 .1 -1 0 .2 - 1 .4 2 0 .3 9 2 8 .3 1 2 7 .4 9 2 4 .6 9 21.41 22.84 25.52 19.89 18.20 25.13 34.53 28.93 21.65 5 .6 6 .5 0 .8 2 .5 3 .6 - 2 .5 - 3 .9 -1 0 .0 -1 3 .2 -1 5 .3 - 9 .2 - 4 .6 -1 1 .3 - 7 .8 -1 0 .3 - 4 .1 + - 5 .0 5 .0 5 .3 1 .0 5 .3 5 .1 0 .9 7 .8 4 .3 - 3 .7 4 .1 7 .5 1 .8 1 .1 - 6 .1 3 .8 6 .2 8 .2 8 .9 + - 8 .1 4 .5 0 .5 0.1 - 7 .4 0 .8 -1 7 .3 -1 2 .2 - 7 .2 + + - 1 .7 6 .6 0 .7 3 .1 7 .2 3 .3 5 .4 0 .6 5 .2 3 .2 plentiful and is in much better condition than a year ago. Dairying generally re mains satisfactory and milk prices are steady. The supply of labor is adequate and wages in the main are unchanged from the level of a year ago. Estimated yields of the leading crops in Pennsylvania, New Jersey, and Dela ware fo llo w : Figures are in millions of units Average C orn ..................... bus. W inter w h eat. . . “ O a ts...................... “ Potatoes, w h ite .. “ Potatoes, sw e e t.. “ Apples— total. . . “ P eaches................ “ T obacco (Penna.) lbs. H ay, a ll............... tons 76 26 39 35 4 15 4 55 5 1926 crops 70 27 37 30 4 24 6 44 4 1927 crop— estimated 56 22 41 36 3 11 4 42 5 Page Seven SYNOPSIS OF BUSINESS CONDITIONS In the Philadelphia Federal Reserve District during the month ending August 20, 1927 Prices Demand Unfilled orders compared with year ago Stocks Operations TRADE R etail........................ declines offset advances more decreases than increases in sales Wholesale— Shoes.................... higher fair; increasing D rugs.................... unchanged fair but less active Dry goods........... higher fair spot and fall delivery unchanged but smaller than a year ago Electrical suppl.. unchanged fair to poor mainly for spot delivery increased but under a year ago Groceries............. unchanged fair mainly for spot delivery Hardware............. unchanged fair; some decline mainly for spot delivery Jewelry............... unchanged fairly good mainly for spot delivery increased; less than a year before Paper.................... unchanged fair; some increase spot and fall delivery smaller finished steel unchanged; pig iron weaker still only fair increased for steel castings slight increase; 70 per cent of capacity moderate Cotton...................... higher fair; sales larger, though under a year ago greater for varns but smaller for fabric increased slightly; 70 per cent of capacity yarns lighter, fabrics larger Silk ............................ slightly lower poor to fair unchanged for thrown but smaller for fabric same for throwsters but lower for fabric makers; 70% to 80% of capacity lighter in thrown silk; heavier in fabric W o o l.......................... higher increased for raw wool, yarns and fabrics greater for raw and yarns but smallerforpiecegoods increased; 80 per cent of capacity rather light and decreasing H osiery.................... steady slightly smaller steady full fashioned 95% and seamless over 4 5% of capacity little change moderate and mainly unchanged Carpets and rugs . . fairly active in full fashioned; fair to poor in seamless quiet Shoes........................ higher fair; increased greater than a year ago increased; 80% of capacity Leather— Black kid............. some advances active increased steady decreased in year 80% of capacity smaller in year smaller up in July, lower than a year ago for spot and fall delivery decreased; above a year ago ainly for spot delivery year ago IN D U S T R IE S Iron and steel products............... S ole........................ Paper........................ Rubber— Tires and tubes. Mechanical goods Cigars........................ Cement...................... B rick........................ Lumber— somewhat smaller moderate and smaller than a year ago medium higher good; increased unchanged; some weak ness moderately active little change steady; over 80% of ca pacity rather light firm and unchanged active; increased shipments hardly fair; more de creases than increases fairly good; sales larger slightly larger increased slightly in tires but not in tubes medium; lighter somewhat smaller declined; 7 5% of capacity steady; 80% of capacity medium to light; smaller lower; July output highest on record increased fairly steady; 60% of capacity medium to heavy steady; some weakness unchanged; some advances firm slightly lower slightly larger active; shipments slightly greater fair; sales slightly smaller decreased medium; smaller Dealers................. unchanged only fair somewhat smaller M ills...................... slightly lower fairly active practically unchanged steady; 7 5% of capacity moderate steady at lower levels moderately active declined well maintained; 80% of capacity steady; 70% of capacity slightly larger increases equal decreases moderate; smaller Slate.......................... Paint........................ moderate; lighter firm only fair Plumbing supplies slightly higher fairly g o o d ; sales larger smaller increased a little; 85% of capacity Building.................... construction costs higher than in June but lower than a year ago good in public works; easier in building contracts declined from June but ahead of a year before a bit slower; except in roads and public works Bituminous co a l.. higher; spot above contract prices little change fair to poor; increased slightly only fair for domestic but good for steam sizes Anthracite............... Page Eight increased in non-union; strike in union fields continue at 80% of capacity medium to light much larger than a year before seasonally larger
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