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MONTHLY REVIEW
of Credit and Business Conditions
S e c o n d

Federal Reserve Agent

F e d e r a l

D is tr ic t

Federal Reserve Bank, New York

Business Conditions in the United States
MPLOYMENT at industrial establishments in­
creased in February and the output of basic
commodities was slightly larger. Distribution
both at wholesale and retail continued large; wholesale
prices were somewhat higher; and there was a further
increase in the volume of borrowing for commercial
purposes.
P roduction
The Federal Reserve Board’s index of production in
basic industries, adjusted to allow for length of month
and other seasonal variations, increased less than 1 per
cent, in February. Production of pig iron, steel ingots,
and flour increased while mill consumption of cotton and
production of cement and lumber declined. Factory
emploj^ment advanced 1 per cent, in February following
successive decreases during the three preceding months.
Increases in working forces were reported by most in­
dustries and were particularly large at iron and steel
plants, automobile factories, and textile finishing estab­
lishments. Fuller employment through reduction of
part time work is indicated by an increase of over 5 per
cent, in average weekly earnings. Building activity was
slightly less than in January though contracts awarded
were 7 per cent, larger than a year ago.

E

Index of 22 Basic Commodities corrected for seasonal variation
(1919 = 100 Per cent. Latest figure, February)




R e s e r v e

April l f 1924

T rade
Railroad shipments in February were in greater daily
volume than in January and car loadings of practically
all important commodities were larger than a year ago.
The daily average volume of wholesale business increased
about 5 per cent, in February but was slightly smaller
than a year ago. Sales of meat, dry goods, and hardware
were larger than in February 1923, while sales of shoes
were smaller. Department store sales in February aver­
aged about the same daily volume as in January and
about 8 per cent, more than a year ago, while merchan­
dise stocks at these stores at the end of the month were
6 per cent, above last year’s level. Business of mail
order houses and chain stores also showed increased
activity in comparison with January.
P rices
Wholesale prices as measured by the index of the
Bureau of Labor Statistics advanced slightly in
February. Prices of fuel, metals, and building materials
increased, while prices of farm products, clothing, and
chemicals declined. During the first two weeks in March
price declines occurred in wheat, cotton, silk, hides, and
rubber, and price advances in hogs, copper, and crude
petroleum.

MONTHLY REVIEW, APRIL 1, 1924
8IUJON5 OF DOLLARS

4r

\
TOTfi
V \EARNING/ASSETS

u
' ,

ft

i f 'H

\ \
DI$CL
3UNT\
3VVV
Ai
. . ACcEFfANc &
JRITIE5

> C 7 c
1919*

19£0

192.1

192,2

192.3

1924

Index of Employment in Manufacturing Industries (1919 Average
= 100 Per cent. Latest figure, February)

Reserve Bank Credit— Weekly Figures for 12 Federal Reserve
Banks (Latest figures, March 19)

B ank Credit

assets of this bank rose again and on March 26 stood
approximately where they were before the 15th.

The volume of borrowing for commercial purposes at
member banks in leading cities in the early part of
March continued the increase which began in the latter
part of January, and on March 12 total loans of the
reporting banks were higher than at any time since the
seasonal peak at the turn of the year and about
$275,000,000 higher than a year ago. At the Federal
Reserve Banks during the four week period ended
March 19, a further decline in the volume of discounts
for member banks and of acceptances was offset by an
increase in the holdings of United States securities so
that total earning assets were at about the same level as
in February. Federal Reserve note circulation con­
tinued to decline while the total money in circulation
increased.
Easier money conditions were reflected in a slight
decline in rates for commercial paper to 4 y 2 per cent,
and also in lower rates for bankers acceptances and
reduced yields on Treasury certificates. The March
offering of $400,000,000 of one year Treasury certificates
bearing interest at 4 per cent., as compared with 4 %
per cent, on a similar issue sold in December, was over­
subscribed.
B a n k in g C on dition s, in the Second D istrict
Banking movements during March centered largely
about the usual Government transactions on March 15,
when income taxes became payable and large disburse­
ments were necessary to redeem maturing Treasury cer­
tificates and pay interest on the public debt. Following
an excess of Treasury disbursements over receipts on
March 15, the total earning assets of the Federal Re­
serve Bank of New York, exclusive of a temporary
loan to the Treasury, declined $64,000,000, and at
$111,000,000 on March 21 were the lowest since 1917.
As the collection of tax checks was completed and funds
were withdrawn from this district, the total earning




There was a further increase during March in the
requirements of trade and industry for credit, and the
loans of reporting member banks in this district made
largely for commercial purposes rose $70,000,000 to a
point $150,000,000, or 6 per cent, above the level at the
first of the year. Loans on stocks and bonds also in­
creased, so that notwithstanding a moderate decrease in
security investments, total loans and investments rose
about $100,000,000 and were slightly higher than at any
time since early in 1923.
C h anges in M e m b e r B a n k D e p o sits
The report of condition of all member banks on De­
cember 31, published in March, shows comparatively
little credit expansion during the year, despite the fur­
ther inflow of gold at an even more rapid rate than
in 1922. A total increase in demand, time, and Govern­
ment deposits, amounting to $1,130,000,000, or 5 per
cent., was less than the normal rate of growth of bank
deposits during most of the past fifty years, and was
much lower than the increase shown in 1922, which was
nearly 3 billions, or 15 per cent.
By far the greater part of the total increase in de­
posits was in time deposits, which rose over a billion.
Although business generally was at a high level during
the year, demand deposits, which represent more closely
active mercantile credit, increased less than $350,000,000,
compared with an increase of over a billion and a half
in 1922. Government deposits declined $225,000,000. As
time deposits, owing to their slower rate of turnover,
tend to have less effect upon prices than demand de­
posits, the high proportion of time deposits in the
increase of the past year undoubtedly has been a con­
tributing factor in the maintenance of general price
stability.

FEDERAL RESERVE AGENT AT NEW YORK
The accompanying diagram compares changes in de­
mand and time deposits of all member banks, classified
by country banks and reserve and central reserve city
banks, and indicates a marked increase in the proportion
of time to demand deposits in recent years.
BILLIONS
OF D O LLARS

B IL L IO N S
OF D O L L A R S

Demand and Time Deposits of all Member Banks

Money Rates
The large excess of government disbursements over
receipts in this district on March 15 was followed by a
period of marked ease in money and decline in rates to
the lowest points in a year or more. Later in the month
there was a partial recovery in rates.
The prevailing rates for prime commercial paper de­
clined in the week following the 15th from 4 % per cent,
to 4 % per cent., the lowest since early in 1923, and
demand for paper became unusually active both in
New York City and elsewhere. Reports to this bank
from 26 dealers showed an increase of 50 million dollars,
to 880 million dollars in the volume of paper outstand­
ing at the end of February, making a net increase of
112 million dollars since the end of December.
The demand for bills increased in March and after
the 15th dealers lowered offering rates on maturities up
to 90 days from 4-4% per cent, to 3 % -3 % per cent.,
followed by a recovery of 3% -4 per cent. Dealers’
portfolios showed a substantial reduction from the high
points reached in February.
The March offering of approximately 400 millions oneyear Treasury certificates at 4 per cent., compared with
4 % per cent, on the one-year issue sold in December,
was oversubscribed. Prices of outstanding issues rose
sharply after the 15th, but declined again later in the
month.
In the stock exchange money market unusually heavy
offerings of call money after the 15th resulted in a
decline in the renewal rate to 3 per cent., the lowest
since the summer of 1922, and on the 21st new loans
touched 2 % per cent. Time money declined % of 1
per cent, to 4*4-4% per cent.




3

Security Markets
Large supplies of available funds and lower money
rates were accompanied by activity and strength in the
bond market in March. In heavy trading the active
Liberty issues rose to new high points since 1922, while
the Treasury 4% s at 100 18/32 sold at the highest point
ever reached. Representative averages of high grade
corporation bonds recovered nearly to the high points
reached in January.
The volume of new security issues, on the other hand,
was unusually small and for the four weeks ended
March 22 totaled only about $150,000,000, or less than
one-third as much as in the preceding four weeks. This
decrease was probably due partly to the exceptionally
heavy offerings of February and partly to declines in
the prices of outstanding bonds during February and the
first days of March. Railroad and public utility issues
constituted the major proportion of the issues during
the period.
Contrasting with strength in the bond market stock
prices showed reactionary tendencies in March. In some
industrial groups prices declined to new low points for
the year. Railroad shares, on the other hand, were
steady and slightly higher than a month ago.

Foreign Shipments of United States Currency
In the M o n t h l y R e v i e w of February 1 detailed figures
were given showing shipments of United States currency
to and from foreign countries during the eight months
from May through December, as reported by member
banks in this district which are the principal shippers
of currency. The following table gives the figures by
months from May through February 1924. The figures
indicate larger net shipments in recent months, due
chiefly to increased shipments to Europe, and smaller
receipts, particularly from Caribbean countries. Total
shipments for the ten month period were $41,764,000,
against receipts of $25,317,000, leaving net shipments of
$16,447,000.
In addition to direct shipments banks
in this district during the ten months forwarded
$18,590,000 to Cuba by wire transfer through the Fed­
eral Reserve System, including both the Boston and
Atlanta Reserve Banks. Of this amount, $3,645,000*
was forwarded during the first two months of this year.
M onth

Shipments

Receipts

Net Shipments

M a y ...................

$ 2,341,000
2,568,000
2,824,000
6,161,000
3,723,000
2.109.000
1.821.000
933,000
1.374.000
1.463.000

$ 1,575,000

D ec.....................
Jan.....................
F eb.....................

$ 3,916,000
2,473,000
3,051,000
1,684,000
7,842,000
3.095.000
3.195.000
3.825.000
5.694.000
6.989.000

T o ta l.............

$41,764,000

$25,317,000

$21,019,000

Aug....................
Oct.....................

Net Receipts
$

. . . .

95,000
* 227,666
4,477,666
4,119,666
986,000
1.374.000
2.892.000
4.320.000
5.526.000
$4,572,000

* From March 1 through March 28 transfers totaled $5,600,000.

4

MONTHLY REVIEW, APRIL 1, 1924

Foreign Exchange
Interest in the foreign exchange market during the
past month centered on the French franc, which con­
tinued its downward course until March 8, when a new
low point of 3.42 cents was reached. Following the
announcement, however, of large credits obtained in
New York and London, and adoption of a 20 per cent,
increase in taxation, and other fiscal reforms, the rate
recovered strongly and on March 24 was 5.61. This was
the highest in four months, though still about a cent
lower than a year ago, shortly after the French entered
the Ruhr. Belgian francs, which touched a new low
point at 2.96 cents, rallied to 4.50 cents. Sterling con­
tinued comparatively steady at about $4.29.
Changes in other exchanges included sharp declines
in Spanish and Japanese rates, both of which reached
new low points for recent years. Weakness in pesetas
was generally attributed to political conditions in Spain
and developments in the Moroccan campaign. A decline
of 3 cents in the Japanese yen to 42 cents, on the other
hand, followed an increase in February in the import
trade balance of Japan to 186,500,000 yen, or the largest
ever reported, reflecting chiefly the purchase of recon­
struction materials.

Foreign Trade
Exports of merchandise during February declined
about $30,000,000 to $367,000,000, the smallest amount
since August, while imports totaling $335,000,000 were
the largest since May. The net export balance for the
month was $32,000,000 compared with $100,000,000 in
January and $3,500,000 in February 1923.
The decline in exports was due partly to a further
seasonal decrease in the shipments of cotton which, how­
ever, remained approximately 34 per cent, larger than
in February a year ago. Exports of wheat and flour
showed a further slight decrease to the lowest point since
September 1917 and for the eight months ended with
February 1924 were 30 per cent, lower than for the
eight months ended February 1923. This decline con­
trasts with an increase of approximately 13 per cent, in
Canadian wheat and flour exports during the corre­
sponding period. Heavier exports by Canada in the past
year have accompanied a considerably lower range of
prices in that country than in the United States.
During January iron and steel exports rose sharply to
the largest amount since February 1921, due largely to
heavy shipments to Japan for use in reconstruction work.

Gold Movement
During February about $35,000,000 of gold was im­
ported, of which over one-half came from England, and
substantial amounts from Canada, France, Argentina,
and Australia. Gold exports totaled $505,000.
For the first two months of this year net gold imports
totaled $80,000,000, compared with $31,000,000 in the
corresponding period of 1923, $53,000,000 in 1922, and
$72,000,000 in 1921.




Indexes of Business Activity
Nearly all available indexes of distribution and gen­
eral business activity were higher in February than in
January. An expansion in the primary distribution of
goods is indicated by marked advances in indexes of
freight car loadings, wholesale trade, and imports and
exports. Increases were less marked among indexes of
retail distribution, which, on the average, continued
close to the computed trend. The following table shows
the available indexes for recent months and for the
peak month of 1923, expressed as percentages of the
computed trend with allowance for seasonal variation.
(Computed trend of past y e a rs = 1 0 0 Per cent.)
1924
1923
High Point

1923
Dec.
Jan.

Feb.

103
103
88
88
97
53
160

101
108
105
88
100
62
146

Ill
119
111

101
105
110
120
108
102r

96
103
85
120
105
99 r

99
96
92 r 101
92
95
103 r 96
107
118
96r 101 r

113
117
105
112
104
106
182

100
102
102
103
99
101
155

101
104
101

109
118
104

99
91
166

99
94

Primary Distribution
Car loadings, mdse, and misc..................
Car loadings, other................. ..................
Wholesale trade, Second D istrict...........
E xports.........................................................
Im ports.........................................................
Grain exports...............................................
Panama Canal traffic.................................

Apr.
Apr.
Feb.
July
M ay
M ay
July

114
125
116
95
130
143
166

Distribution to Consumer
Department store sales, Second District
Chain store sales.........................................
Mail order sales.. .......................................
Life insurance paid fo r ..............................
Amusement receipts...................................
Advertising...................................................

June
M ar.
M ay
D ec
M ay
Apr.

General Business Activity
Bank debits, outside New Y ork C it y ...
*
“
New York C ity ..................
Postal receipts.............................................
Electric pow er.............................................
Employment, N. Y . State factories........
Business failures.........................................
Building permits.........................................

M ay
Feb.
Mar.
M ay
Apr.
N ov.
M ar.

96p
118p
64
147

200

r ==Revised.
p = Preliminary.

Production
Production of basic commodities continued generally
at a high rate in February and in many industries
showed increases over January totals. Taking the two
months together, the output of goods exceeded in many
cases the high levels of a year ago when business was
expanding at a rapid pace. This was particularly true
of the automobile industry and of industries supplying
materials for building construction. The diagram on the
next page compares total production figures for January
and February this year with figures for the same two
months last year.
In the steel industry an increase in the production of
steel ingots during February of 181,000 tons, or 5 per
cent., was reflected in an advance in this bank’s index,
which allows for seasonal changes, from 101 per cent, of
the computed trend to 116 per cent, which, with the
exception of May, was higher than at any time in 1923.
The index of pig iron production advanced from 94 to
105 per cent, of the computed trend.

FEDERAL RESERVE AGENT AT NEW YORK
192.3
JAN-FEB.
XX) %

PRODUCERS GOODS

Employment and Wages

COPPER

CEM EN T

An increase of about 1 per cent, in factory employ­
ment between January 15 and February 15 was re­
ported both for New York State and for the country
as a whole. This was the first increase for the State
since October and resulted chiefly from enlarged ac­
tivities in the clothing, woolen and worsted, iron and
steel, and automobile industries, and in sugar refining.
The number of employees is now about 2.5 per cent,
smaller than a year ago.
The average weekly earnings of factory workers in
the State declined slightly during the period to $27.73,
compared with a substantial increase for the country
as a whole, a difference partly accounted for by the
widespread observance of the Lincoln Day holiday in
New York City, and partly to the importance of the
clothing and textile industries in New York State, in
which conditions have been relatively quiet. Compared
with a year ago, however, weekly earnings in the State
show an increase of 7 per cent.
During the month several of the larger eastern rail­
roads announced settlements with their employees pro­
viding for an increase in wage rates amounting to
approximately 5 per cent.

|

TIN D E L IV E R IE S

1

Z IN C

|

BITUMINOUS COAL 1

STEEL INGOTS I
P IG IR O N

m

|

COTTON CONSUMPTN |
S IL K CONSUMPTION I

CONSUMERS GOODS
AUTOMOBILE TRUCKS H H H H
”

PASSENGER

■ B O B

HOGS SLAUGHTERED ■ B U S
CIGARETTES
CALVES

slaughter 'd

SHEEP
CATTLE

■ H O B
BBBHH
■ H H H fl

-

WHEAT FL O U R

M H H H
■ ■ ■ ■

TOBACCO CON5UHPT B
SUGAR M ELTIN G S

H U

■ ■ ■ ■

ANTHRACITE COAL ■ ■ ■ ■
CIGAR CONSUMPT'N ■ B B B B I
B 0 0 T 5 & SH O E5 ■ ■ ■ ■

Production of Basic Commodities during January and February
of 1924 (In percentages of production in January and February
of 1923)

While cotton consumption declined 69,000 bales, the
index adjusted for seasonal variation was unchanged at
5 per cent, below the computed trend. The following
table compares this bank’s indexes of production for re­
cent months with the high points of last year.
(Computed trend of past years =100 Per cent.)
1923
High Point

1923 1924 1924
Dec. Jan. Feb.

Producers' Goods
C otton consum ption................................................
W oolen mill a ctiv ity * ..............................................
Pig i ron ........................................................................
Steel ingots.................................................................
Lum ber........................................................................
Cem ent........................................................................
Copper, U. S. mines..................................................
Zinc*.............................................................................
Tin deliveries..............................................................
Petroleum ....................................................................
Gas and fuel o il.........................................................
Leather, sole...............................................................
Bituminous coa l.........................................................

M ay
A pr.
M ay
M ay
Oct.
Jan.
Aug.
M ar.
N ov.
Aug.
Jan.
Aug.
Apr.

108
120
124
122
137
164
111
85
150
146
112
106
117

82
91
93
84
122
153
104
81
91
131
105
83
89

95
94
94
101
137
177
111
81
91
126 r
109
84
108

95
96p
105
116

Consumers’ Goods
Cattle slaughtered.....................................................
Calves slaughtered....................................................
Sheep slaughtered.....................................................
Hogs slaughtered.......................................................
Sugar meltings, U. S. porta.....................................
Wheat flour................................................................
Cigars..........................................................................
Cigarettes ................................................................
T o b a cco.......................................................................
Gasoline.......................................................................
Automobile tires*......................................................
N ewsprint...................................................................
Paper, tota l................................................................
Boots and shoes.........................................................
Anthracite coa l..........................................................
Automobile, all..........................................................
Automobile, passenger.............................................
Automobile, truck....................................................

M ay
Oct.
M ay
Aug.
Oct.
Mar.
Oct.
Jan.
Jan.
Jan.
Mar.
M ay
Feb.
Apr.
Feb.
N ov.
Oct.
Deo.

118
146
104
149
137
122
95
100
110
123
178
124
119
118
112
161
171
145

90
140
83
109
96
91
79
80
86
119
116
104
90
75
93
151
153
145

106
145
92
113
90
99p
82
99
115
125
144
109
100
79
97
142
139
151

105
148
92
118
123
120p
87
79
1106

=Revised
* Preliminary.

■Seasonal variation not allowed for.




167
llO p
72
151
133p

Automobile Production and Sales
Continuation of heavy production in the automobile
industry was indicated by an output of 367,500 pas­
senger cars and motor trucks in February, or 33 per
cent, more than in February a year ago. For the two
months of January and February production amounted
to 683,600 vehicles, or about 50 per cent, above the com­
puted line of growth shown by the industry during the
past 15 years.
The accompanying diagram shows the average monthly
production of passenger cars and trucks during the past
13 years and gives also the comparative figures for pro­
duction in January and February of the past 3 years.

I IPASSENGERCARS
M MOTORTRUCKS

84p
113

lis
107
92p
109
151
155
137

164

,,

40

47

ftfin
1911 19ia 1913 J914 1915 1916 1917 I918x 1919 1«

Monthly Average

l 1921 1922. 1923-

Actual Production

Monthly Production of Motor Vehicles in the United States
(In thousands of cars)

Manufacturers and dealers located in this district
report that stocks of cars in dealers’ hands are consider­

6

MONTHLY REVIEW, APRIL 1, 1924

ably larger than at this time last year, partly due to
efforts to avoid a shortage of cars this spring such as
occurred last year. Current sales in the East are re­
ported to be running larger than last year, but in parts
of the Central and Far West sales are reported to be
lower than a year ago. Makers are said to be watching
the market with unusual care and to be prepared to ad­
just production promptly to meet any change in demand.
R a ilw a y E q u ip m e n t P urchases
After a period of reduced purchases in the latter half
of 1923, buying of railway equipment has shown a con­
siderable increase accompanying early indications of
heavy traffic this year. Department of Commerce re­
ports show that deliveries of locomotives continued at a
high rate through 1923, but were steadily reducing un­
filled orders until at the end of the year they repre­
sented only a little more than a month’s work at the
current rate of production. In the first two months of
1924 output was reduced and renewed buying appeared,
so that the unfilled order record shows an upward turn
at the end of February.
Freight car orders in February totaling 29,291 were
the largest for any month in two years, excepting only
March 1923 and April 1922. After April last year
orders were small until the end of the year, when buying
was resumed, and the total for the four months from
November to February inclusive was 50,961 cars. Re­
newed buying of passenger cars is also indicated by the
Railway Age report of 326 ordered during the month
of February.

Contracts awarded throughout 36 States also showed
large increases over a year ago in the New York dis­
trict, but decreases in the middle Atlantic, Central
West, and Northwestern territories.
The continued large building totals throughout the
winter have reflected partly a movement to spread con­
struction work over a greater part of the year, which
has been particularly favored in this district by weather
conditions. Partly because of this the index of build­
ing computed by this bank, which allows for a normal
seasonal variation as well as for changes in the cost of
construction, rose in February to a point 10 per cent,
above the high level of March 1923. The accompanying
diagram shows the movement of this index and com­
pares with it changes in the index of pig iron produc­
tion, which is largely affected by building operations.
PER CENT.

Due both to advances in building materials and wages
the cost of construction index computed by this bank
advanced to 194 per cent, of the 1913 cost, or about 3
per cent, below the May high point of last year. This
index takes no account of changes in the efficiency of
labor or extra wage payments above the regular scale.

THOUSANDS

R e a l E s ta te an d R e n ts

Domestic Purchases of Railway Freight) Cars
February)

(Latest figure

B u ild in g
Building permits issued in 158 selected cities during
February increased 24 per cent, over the January total
and were 24 per cent, larger than in February a year
ago. In New York City permits reached the highest
level since March 1923, but in many sections of the
South and West permits were smaller than last year.




Real estate operators and builders in New York City
report a somewhat reduced demand and occasional con­
cessions in rents for commercial buildings and high
grade apartments, as a result of the active construction
in recent years, but a continued large demand for one
and two-family houses and for apartments to rent for
less than $12 to $15 per room.
Notwithstanding the heavy building of houses in the
outlying boroughs and suburbs, speculative builders and
promoters of large development projects continue to re­
port a rapid turnover of this type of construction. Sta­
tistics of building permits for the first two months of
this year show an increase of 25 per cent, as compared
with last year in permits granted for one and two-family
houses and a decrease of nearly 50 per cent, in permits
granted for apartment houses.
Builders, and bankers and insurance companies mak­
ing loans on real estate report a plentiful supply of
funds for high grade mortgages. Some loans are being
made as low as 5 per cent, in Manhattan, but the pre­

7

FEDERAL RESERVE AGENT AT NEW YORK
vailing rate is nearer to 5 ^ per cent., and in the out­
lying boroughs 6 per cent.

in some cases a loss, after allowing for the extra day dur­
ing the month.

W h o le sa le T ra d e
Wholesale trade in this district during February, as
reported by 163 dealers, showed more than the usual
seasonal increase over January and this bank’s weighted
index of sales, after allowing for seasonal variation and
price changes, was 11 per cent, above the computed
trend compared with 5 per cent, above in January and
9 per cent, below in December. Compared with a year
ago the increase in sales amounted to 2 per cent., or
practically the same increase as was shown in January.
Sales of hardware continued to show the most consistent
increases over a year ago, but substantial gains occurred
also in sales of dry goods, including cotton goods which
showed losses in the preceding three months. Stationery
and grocery sales likewise showed larger increases in
February than in January, while drug sales continued
substantially larger than a year ago.
Trade in clothing, on the other hand, showed relatively
small increases except in women’s coats and suits which
was considerably under last year. Sales of shoes, dia­
monds, and jewelry continued to show losses, and a
sharp decline in machine tools was in contrast with large
gains at this time a year ago.

Com m odity

Dollar Value of February Sales
(February 1923 = 100 Per cent.)

Per cent.
Change in
Sales over
Feb. 1923

Per cent, of
Sales in each
Dept, to
Sales of all
Departments

+ 2 3 .7
+ 2 2 .5
+ 2 0 .3
+ 1 9 .4
+ 1 9 .1
+ 1 7 .2
+ 9 .7
+ 8 .8
+ 8 .2
+ 3 .3
+ 1 6 .3

2 .7
8 .8
16.1
13.8
6 .6
3 .1
4 .1
5 .1
9 .2
2 .3
28.2

H osiery...................................................................................
W om en’s and misses* ready-to-wear................................
House furnishings.................................................................
W omen’s ready-to-wear accessories.................................
M en’s and boys’ wear.........................................................
Shoes.......................................................................................
Cotton goods.........................................................................
Silk goods ............................................................................
Furniture................................................................................
W oolen good s........................................................................
Miscellaneous........................................................................

Stocks of goods on hand March 1 were 5 per cent,
higher than a year ago, identically the same increase as
was shown on February 1, but much below the average
increase of 10 per cent, shown during preceding months.
The average sales check during February was $2.06, un­
changed from last year.
N et Sales During February
(Feb. 1923 = 100 Per cent.)
1920

1921

1922

1923

99
102
97
93
Rochester.......... 101
104
Bridgeport......... 113
99
EIsewhere^dDist.
A pparel..............
90
Mailorderhouses 147

101
100
110
97
117
107
114
110
97
77

97
97
91
91
115
95
103
112
96
71

100
100
100
100
100
100
100
100
100
100

All dept, stores. . .
New Y o r k .........

1

Stock on Hand M arch 1
(M ar. 1,1923 = 100 Per cent.)

**•
1924 1920
115
113
110
123
134
118
115
120
114
115

115
116
124
116
141
141
118
98
96

1921

1922

1923

1924

96
97
106
88
129
118
95
85
81

97
98
100
92
101
104
102
101
92

100
100
100
100
100
100
100
100
100

105
105
99
103
121
111
105
106
111

1920

1921

1922

1923

1924

Hardware....................................................
Dry G ood s..................................................
(a) C otton ..............................................
(b) Silk....................................................
Stationery...................................................
D rugs...........................................................
Groceries.....................................................
C lothing......................................................
(a) M en’s ...............................................
(6) W om en’s dresses............................
(c) W om en’s coats and suits.............
Jewelry........................................................
Shoes............................................................
Machine t o o l s ..........................................
D iam onds....................................................

128
111
98
124
111
92
113
92
85
96
97
176
210
159
125

93
84
76
92
102
72
91
74
55
93
81
69
100
60
42

75
76
82
70
92
88
86
70
48
95
75
67
89
22
40

100
100
100
100
100
100
100
100
100
100
100
100
100
100
100

119
109
106
112
108
106
105
98
103
101
89
92
89
84
78

February sales by mail order houses were 15 per cent,
larger than in February a year ago, a slightly larger
increase than was shown in January, and this bank’s
index of mail order sales, in which allowance is made for
seasonal variation and price changes, stood at 95 per
cent, of the computed trend, compared with 92 per cent,
in January and 85 per cent, in December.

W eighted average.................................

108

82

77

100

102

Chain Store Sales

D e p a r tm e n t Store B usiness
Continued heavy sales of house furnishings and cutrate sales of apparel, together with an extra day’s busi­
ness, contributed largely to an increase of 15 per cent, in
sales of department stores in this district over February
a year ago. Substantial increases occurred in all report­
ing cities of the district, but were particularly marked
in Newark, Rochester, and Syracuse. This bank’s index
of sales, which allows for seasonal variation and price
changes, was practically at the 100 per cent, normal line
as computed from the trend of sales in previous years,
compared with 4 per cent, below this line for the preced­
ing three months.
Sales in all major departments of the stores were
larger than last year but showed the greatest increases in
apparel and in house furnishings other than furniture.
Sales of piece goods showed relatively little increase and




February chain store sales were 18 per cent, larger
than a year ago, and this bank’s adjusted index of sales
was 1 per cent, above the computed trend, compared
with 8 per cent, below in January. Nearly all types of
stores showed large increases in aggregate sales, while
shoe, 10-eent, and tobacco stores showed particularly
large increases in sales per store.
Number of
Stores

Dollar Sales During February
(In percentages)

Type of Store

S hoe........................

D rug........................

Per cent.
Change
in sales
per store
Feb 1923
to
Feb 1924

Feb
1923

Feb
1924

292
454
99
1,783
15,473
2,737
300

333
548
116
1,894
18,985
2,699
320

111
55
83
72
80
97
94

121
86
89
80
76
106
94

115
80
91
86
82
100
96

100
100
100
100
100
100
100

132
130
125
120
116
113
109

+ 1 5 .5
+ 7 .3
+ 6 .6
+ 1 2 .9
— 5.3
+ 1 4 .5
+ 2 .4

21,138

24,895

79

81

85

100

118

— 0 .2

Feb Feb Feb Feb Feb
1920 1921 1922 1923 1924

MONTHLY REVIEW, APRIL 1, 1924

1?ERCENT,

An Index of the General Price Level Compared with Wholesale Prices and Wages
(1913 = 100 Per cent.)

An Index of the General Price Level
For many years indexes have been available showing
the course of commodity prices at wholesale, and more
recently indexes have been prepared showing changes in
the retail prices of foods, in wages, in the cost of living,
in the cost of building construction, etc. There has been,
however, no index which would combine all these things
and trace the average course of all kinds of payments, or,
as it might be termed, the general price level.
The diagram at the top of this page presents an
attempt to provide just such an index. Indexes of com­
modity prices, cost of living, rents, and wages have been
worked back for half a century, weighted in accordance
with their estimated relative importance in the sum
total of expenditures, and combined into a single index.
The diagram above shows the movement of this index by
years, and compares with it the changes in two of its
component groups, namely, wholesale commodity prices
and wages. It will be seen that the three lines run
closely together, except in times of wide price changes,
when wages show more resistance to changes than do
wholesale prices. In such periods there is a tendency for
wages to retain permanently a larger share of their ad­
vances than do commodity prices or other elements
entering into the general price level. A permanently
higher level of wages was established after the Civil
War, whereas commodity prices gradually receded to
their previous level. Again, following the World War,




wages have retained a large share of their gains, an
advantage made possible by the adoption of labor saving
devices and more skilled personnel management result­
ing in a higher per capita production.
In February of this year the index of wholesale com­
modity prices computed by the Department of Labor
stood at 152 per cent, of the 1913 level; the general
average of wages paid to factory workers, unskilled
labor, clerks, school teachers, etc., was 210 per cent, of
the 1913 average; rents were approximately 165 per
cent.; and the general cost of living 171 per cent. The
weighted combination of these four groups, or the gen­
eral price level, stood at 181 per cent. The index of the
general price level may be taken to represent approx­
imately the price changes which are reflected in the
volume of credit or bank clearings.
F ed era l R eserve B o a rd A n n u a l R ep o r t

The annual report of the Federal Reserve Board,
covering its 10th year of operation, is of special interest
because the report is devoted to a discussion of the pol­
icies of the Federal Reserve Board and Banks. The
topics covered are:
Federal Reserve Discount Policy
Open Market Policy
Gold and Credit
Currency and Credit
Guides to Credit Policy
Copies may be obtained by addressing the Federal
Reserve Board, or the Federal Reserve Agent, Federal
Reserve Bank of New York.