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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 t r ic t
Federal Reserve Bank, New York
B u s in e s s C o n d it io n s in th e U n it e d S ta te s
N D U ST R IA L activity was at the same level in June
as in May, and was slightly above the level o f a
year ago. The average of commodity prices ad
vanced further between May and June.
I
P ro ductio n
The Federal Reserve B oa rd ’s index of production in
basic industries remained unchanged in June. Produ c
tion of iron and steel and activity of woolen machinery
continued to decline, and there were also reductions in
the output of copper, zinc, and petroleum, while cotton
consumption, the manufacture of food products, and the
output of coal and cement increased. Production o f
automobiles was smaller in June than in May and fo r
the first time this year was less than in the correspond
ing month of 1925. Declines took place in June in
employment and pay rolls o f all textile industries, ex
cept woolen and worsted goods and m en ’s clothing, and
some of these industries were less active than at any
time since 1924. Building contracts awarded during
June were slightly less than in May and fo r the first
time since early in 1925 were smaller than in the cor
responding month o f the preceding year.
Crop reports issued by the Department of A griculture
indicated a slight improvement during June. The com
posite condition of all crops on July 1 was reported at
6.4 per cent below the average July condition during
PERCEITT
Index of 22 Basic Commodities, adjusted for Seasonal Variations
( 1 9 1 9 = 1 0 0 ) . Latest, figure, June.
R e s e r v e
August 1, 1926
the last, ten years. The production o f winter wheat was
estimated at 568,000,000 bushels, or 172,000,000 more
than in 1925, and that o f spring wheat at 200,000,000
bushels, or 71,000,000 less than last year. A production
o f 2,661,000,000 bushels o f corn, or 8.3 per cent less
than last year, is indicated in the same report. Cotton
production, on the basis of July 16 condition, was esti
mated at 15,368,000 bales, or 718,000 bales less than the
production of last year.
T rade
Total volume o f wholesale and retail trade in June
was larger than fo r the same month in 1925. Depart
ment store sales declined seasonally in June, and whole
sale trade in all leading lines, except groceries, also
decreased during the month. Sales of mail order houses
increased more than usual in June, and were 5 per cent
larger than in June 1925. Stocks o f merchandise car
ried by wholesale firms at the end o f June were smaller
than a year earlier. Department stores continued to
reduce their stocks, and their inventories, which had
been considerably above last y e a r’s level earlier in the
year, were at the end of June only about 1 per cent
larger than a year ago. Freight car loadings showed
seasonal increases during June and continued through
the first half o f J uly at higher levels than in previous
years. Loadings of grains in the southwestern states
have been particularly large.
'PERCENT
Index of United States Bureau of Labor Statistics. (19 1 3= 1 00 ;
base adopted by Bureau). Latest figure, June.
MON THLY REVIEW, AUGUST 1, 1926
2
Monthly Averages of Weekly Figures for Member Banks in 101
Leading Cities. Latest Figures are Averages for
Three Weekly Report Dates in July.
Reserve Bank Credit: Monthly averages of daily figures for 12
Federal Reserve Banks. Latest figures are averages
of first 22 days in July.
P r ic e s
quirements with transfers to the interior in connection
with mid-year disbursements fo r dividends and other
purposes. In the first three days of the month 30 million
dollars o f currency was withdrawn from the Reserve
Bank in this district and 90 million dollars was trans
ferred to other districts, through wire transfers and
check settlements.
These currency withdrawals and
transfers drew upon the reserves of member ban k s; so
that on July 7 New Y ork City reporting member banks
were borrow ing at the Reserve Bank about 180 m illion
dollars,— a larger amount than they had borrow ed at
any time heretofore this year and about 100 m illion
dollars more than at the same time last year.
D uring the succeeding two weeks currency gradually
returned from circulation and funds were returned to
New Y ork from the interior; so that towards the end
of the month borrowing by New Y ork City banks was
reduced to about 100 m illion dollars. The course of
loans to New Y ork City banks each week this year is
compared with the figures for 1925 in the accom panying
chart.
Reflecting these conditions the call loan rate was
typically 4 % per cent during the first half of July, but
declined to 4 per cent shortly after the middle of the
month. Follow ing the continued firmness in call money,
time money became distinctly firmer and in the latter
part o f the month loans were typically made at 4 %
per cent fo r 60 to 90 days and 4 % to
fo r 5 and 6
m onths’ maturities.
The general level of wholesale prices, according to the
index o f the Bureau of Labor Statistics, increased from
May to June by less than half of one per cent. Prices
of livestock and meats advanced, and there were
small increases in silk, petroleum products, nonferrous
metals, and chemicals and drugs. Price decreases oc
curred in grains, cotton, textiles, building materials, and
house furnishings. In the first two weeks of July prices
of grains, flour, cotton, wool, and hides increased, while
those o f cattle, hogs, silk, and rubber declined.
B a n k C r e d it
Loans and investments of member banks in leading
cities at the end of June were in larger volume than at
any previous time, and after declining during the first
half of July were still $900,000,000 above the level of
a year ago. O f this increase about $385,000,000 was in
loans on securities, $340,000,000 in commercial loans,
and $175,000,000 in investments. Since the beginning
of 1926 an increase in commercial loans together with
the growth of investments has more than offset the re
duction in loans on securities.
The demand fo r credit at the end of the fiscal year
and the increased currency requirements over the holi
day were reflected in a growth of member bank borrow
ing at the Reserve Banks and on July 7 total discounts
were near the highest point of the year. W ith the
return flow of currency from circulation after the holi
day, discounts declined, and on July 21 were in about
the same volume as in the last half of June. The Reserve
B anks’ holdings of acceptances and of United States
securities changed little during the period, and the total
volume of Reserve Bank credit outstanding in the third
week of July was close to the June level.
M o n e y M ark et
Money conditions were firmer in July than at any
time since early A pril. The immediate cause for this
firmness was the coincidence of July 4th currency re
Money Rates at New York
July 29
1925
*4
Time Moiiey—90 d av..................................................
Prime Commercial Paper.............................................
Bills—90 day unendorsed............................................
Treasury Certificates and Notes
4-6 months.....................................................
7-9 months.....................................................
Federal Reserve Bank of New York-Rediscount Rate
Federal Reserve Bank of New York-Buying R.ate for
90 clay Bills....................................................
♦Prevailing rate for preceding week
4H
4
3M
June 29
1926
July 29
1926
*4M
4X
4
3H
*4
4H
4—4 M
3H
3.01
3.52
3.05
3 22
3V2
sy2
3.15
3.42
3X
3M
3#
3K
3
FEDERAL RESERVE AGENT AT JNEW YO R K
PERCENT
bonds reported weekly by banks in principal centers,
which include not only brokers’ loans but also loans
made directly to other customers on stock and bond
collateral, show no such decrease as do brokers’ loans.
For all reporting member banks such loans are only
100 millions under the figures for the middle o f Janu
ary. It appears from these figures that the total amount
o f credit employed in carrying securities has been only
moderately reduced from the high point o f the year, but
that a much larger proportion o f this credit is now ob
tained directly from banks rather than through brokers.
A comparison o f brokers ’ loans and total loans on stocks
and bonds by reporting member banks follows.
(In millions of dollars)
Loans to Brokers
and Dealers
Federal R eserve B ank o f N ew Y o rk Loans to N ew Y o rk C ity
R eporting M em ber B an k s, and A v era g e Call Loan R enew al R ates.
Aside from the temporary requirements fo r funds in
connection with mid-year settlements and the July 4
holiday, underlying causes for firmer money at this time
are to be found in the continuation of business activity
at a very high level and the usual seasonal expansion
in credit requirements. The firming of money condi
tions during July was perhaps more marked than usual
because of the fact that many had anticipated easier
money conditions during the summer, accom panying
some reduction in business activity. As the summer has
progressed it has become clear that no such reduction
in business activity has taken place as had been feared
in the sprin g; and there has been no decrease in the
amount of credit required fo r business use. The total
amount o f currency in circulation in the country as a
whole is now about 100 million dollars larger than a year
ago and the banks have been reporting recently some in
crease in the requirements for funds by their commer
cial customers. Loans and investments of reporting
member banks in principal cities are about 900 million
dollars larger than they were a year ago, and the total
amount of credit extended by the Federal Reserve Banks
is about 100 millions more than a year ago.
B rokers' L oans
Accom panying the recovery in stock prices since A p ril
there has been an increase of about 170 millions in the
loans to brokers and dealers by New Y ork City banks
for their own account and the account of others. The
total of these loans remains, however, about 500 million
dollars less than at the middle of February, when stock
prices were at their highest point of the year. Since
February there has been a change in the form of credit
used in carrying securities. Total loans on stocks and
Total Loans on Stocks
and Bonds
1926
New
York
City
Banks
Others
Total
New
York
City
Banks
Banks
in
Other
Centers
Total
Jan. 20..........................
Feb. 17.........................
Mar. 17........................
Apr. 14.........................
Mav 19.........................
June 16.........................
July 21.........................
1,232
1,159
1,033
877
894
926
954
1,899
1,980
1,771
1,574
1,515
1,591
1,667
3,131
3,139
2,804
2,451
2,409
2,517
2,621
2,230
2,104
2,017
1,939
1,980
2,015
2,081
3,327
3,343
3,317
3,317
3,307
3,351
3,377
5,557
5,447
5,334
5,256
5,287
5,366
5,458
B il l M a r k e t
The bill market was generally quiet during July.
The supply of bills offered to the market continued to
decrease throughout the month as the time has not yet
arrived for the usual seasonal increase in drawings. D e
mand for bills continued moderate. A s a result o f these
conditions, dealers’ portfolios were gradually reduced,
and in the latter part o f the month were estimated at
less than $50,000,000. Rates on all maturities were un
changed from the levels current at the opening o f the
month, with the exception o f 4 months bills, the offering
rate on which was advanced from 3 % to 3 % per cent.
C o m m e r c ia l P a p e r M a r k e t
A ccom panying higher rates on collateral time loans,
X)rime commercial paper rates also tended to be firmer.
Although a large proportion o f the prime paper con
tinued to be sold at 4 per cent, some offerings were also
made at 4*4 per centy and the range of rates was thus
4-41/4 per cent, com pared with 3% -4 per cent in
June. The market for commercial paper was less active
in July, due principally to a decrease in the demand
from middle western buyers. Partly as a result o f the
smaller sales volume and also o f some increase in bor
row ers’ requirements fo r loans, dealers’ supplies were
reported to be slightly larger than a month ago. A t
the end of June, 26 dealers had outstanding through
them paper totaling $652,000,000, an amount 2 per cent
smaller than the total at the end o f M ay and 14 per
cent smaller than the outstandings o f June a year ago.
The reduction in recent years in the volume o f business
financed through the commercial paper market appears
4
M ONTHLY
R E V I E W , A U G U S T 1, 1926
to be due in part to slow business in the textile trades,
which have always been large borrowers in the open
market, and in part to the heavy new financing of
recent years, which has provided industrial and mer
chandising concerns with funds and reduced the need
fo r short term borrowing.
Offerings o f new securities in July were only about
three-fourths as large as in June and were also somewhat
smaller than in July 1925. Financing by public utility
companies was the largest single class of new issues, but
was smaller in amount than in June. E xcept fo r a
slight increase in railroad issues, other groups o f offer
ings were also smaller than in June.
S e c u r it y M a r k e t s
A verage prices o f industrial stocks advanced by the
middle of July to within about 4 points of the highest
levels of the year, and railroad stock averages advanced
to the highest levels since 1913. A fter the middle of
the month, prices of both industrial and railroad stocks
reacted to the levels prevailing at the end of June, but
the rise was resumed in the final week.
Bonds declined gradually in July, coincident with
firmer money conditions. The decline in corporation
issues was slight, but, together with small losses late in
June, resulted in a reduction in corporation bond aver
ages to levels about half a point below the highest figures
of June. United States Government bonds also showed
declines averaging nearly % point from the levels
reached in the third week of June. A ccom panying the
continued fall of the franc, French Government and
railroad issues were weak, but most other foreign bonds
were firm.
F o r e ig n E x c h a n g e
A ccom panying disturbed financial and political con
ditions in France, French, Belgian, and Italian exchange
rates declined further in July to new low quotations but
subsequently recovered a part of the loss. The course
o f these three exchanges in recent months is shown in
the accom panying diagram.
N e w F in a n c in g
New capital issues in the first half of 1926, excluding
refunding issues, totaled $3,546,000,000 and were larger
than in the corresponding period of any previous year.
They exceeded the total fo r the first half of 1925 by
$352,000,000. The follow ing diagram compares the new
issues of the first half of 1926 with the issues in recent
previous years.
Course of Belgian, French, and Italian Exchange Rates at New
York. Last Quotations in each Week, 1924-1926.
3546
FOREIGN
Sterling declined slightly below $4.86, reflecting in
part the retarding of exports due to the continuation
of the coal strike. The Spanish peseta lost most o f its
recent gain, declining gradually to 15.27 cents. Little
change occurred in the other important European
exchanges.
The premium on the Canadian dollar advanced to the
gold shipping point, and shipments o f $2,500,000 were
reported near the end of July. The Japanese yen con
tinued strong, advancing to 47.35 cents. Chinese rates,
on the contrary, declined, accom panying a reduction of
a cent and a half in the price o f silver to 64 cents per
fine ounce.
2/36
STATE Of
MUNICIPAL
CORPORATE
(• o ld M o v e m e n t
o/
^
mmr1920
1921
1922
1923
1924
1925
1926
New Capital Issues, by Types of Borrowers, First Half of Each
Year, 1920-1926, Refunding Issues Excluded.
(In millions of dollars.)
Gold imports during June amounted to $18,900,000
and included $8,700,000 from Mexico, $4,900,000 from
Australia, and $3,400,000 from Chile. E xports totaled
only $3,300,000, o f which $1,000,000 was shipped to
Colombia, and about $500,000 each to M exico and Sal-
5
FEDERAL RESERVE AGENT AT NEW YO R K
vador. The resulting im port balance o f over $15,500,000
brings the excess of gold imports for the first half of
1926 up to $81,400,000, as compared with a net export
of $150,000,000 fo r the corresponding period of 1925.
The gold movement at the P ort of New Y ork during
the first twenty-seven days of July was small. Imports,
which came almost entirely from Latin America, totaled
slightly more than half a million dollars.
Exports
amounted to $1,300,000, most o f which went to Guate
mala, the Straits Settlements, and Mexico. In addition
to gold movements through this port, overland shipments
of $3,000,000 were received from Mexico, and exports
of $2,500,000 to Canada were made near the end of
the month.
W a g e s a n d E m p lo y m e n t
Reflecting the continued high level of industrial ac
tivity during the first six months of this year, the aver
age hiring rate for unskilled labor on July 1, as reported
to this bank by a number of large employers of un
skilled labor in this district, showed a further moderate
rise to the highest level since early in 1921. This bank’s
index advanced to 220 per cent of the 1914 level, com
pared with 211 per cent on July 1, 1925, and 215 on
January 1 of this year. The reports indicated a sur
plus of labor in only a few localities, usually where
there is little variety of employment available. A short
age of common labor fo r heavy work was reported in a
number of cases, and a few industries reported difficulty
in obtaining skilled mechanics. Labor turnover has
shown the usual summer increase, but is not large for
the time of year.
PERCENT.
F o r e ig n T r a d e
The foreign trade o f the United States showed a favor
able balance in June fo r the second month this year,
but the excess o f exports was only $1,000,000, compared
with $36,000,000 in May. E xports valued at $338,000,000
were $19,000,000 smaller than in M ay but were the
largest for any June in six years, while imports of
$337,000,000 were $16,000,000 larger than in the pre
vious month and were the largest ever reported for the
month o f June except in 1920.
F or the fiscal year ended June 30, exports were valued
at $4,754,000,000, a decrease of $111,000,000 from the
previous year, while imports totaled $4,467,000,000, an
increase of $642,000,000. Thus, the favorable trade bal
ance was reduced from $1,040,000,000 in the year ended
June 30, 1925 to $287,000,000 in the past year. E xports
declined largely as the result o f a decrease in the price
and quantity o f cotton and grain shipments, which was
only partly offset by an increase in exports o f manufac
tured goods. Nearly one-half of the increase in imports
was due to purchases o f crude rubber at an average
price twice as high as in the previous year.
I n d e x e s o f B u s in e s s A c t i v i t y
General business activity appears to have continued
in June at about the same level as in May. Bank debits
in New Y ork City and outside remained well above
normal, and continued active distribution of goods was
indicated by car loadings, which were the largest ever
reported fo r June.
In the follow ing table this ban k ’s indexes o f business
activity are given in percentages o f the com puted trend,
with allowance fo r seasonal variation, and, where neces
sary, fo r price changes.
('Computed tien-J of past years = 100 per cent)
1925
Primary Distribution
Car loadings, merchandise and misc.......
Car loadings, other...................................
Grain exports............................................
Panama Canal traffic...............................
1926
June
April
May
June
103
99
86
115
77
98
103
111
94
129
75
92
105
107
91r
HOr
121
91
104
110
91p
120p
82
91
93
94
114
112
110
100
91
89
92
109
112
107
100
96
99
99
122
106
101
100
96
95
93
126
115
Distribution to Consumer
Average Weekly Earnings of Factory Workers in New York State,
and Wages of Unskilled Labor, 1916 to 1926.
(1914 averages IOO per cent.)
Factory employment in New Y ork State showed a
further small decline in June and in general was only
fractionally higher than a year ago. W orking forces
in practically all branches o f the textile industries were
reduced from May to June and were generally smaller
than a year ago. Employment in the iron and steel,
machinery, and automobile industries continued to de
cline, and a substantial seasonal reduction occurred in
women’s clothing. The principal increases in employ
ment were in m en ’s clothing and railway equipment
factories.
Department store sales, 2nd Dist...........
Chain store sales.......................................
Mail order sales.........................................
Life insurance paid for.............................
Real estate transfers................................
Magazine advertising..............................
Newspaper advertising............................
i04
95
General Business Activity
Bank debits, outside of N. Y. City........
Bank debits. New York City..................
Bank debits, 2nd Dist. excl. N. Y. C ... .
Velocity of bank deposits, outside of New
York City..............................................
Velocity of bank deposits, New York City
Shares sold on N. Y. Stock Exchanged
Postal receipts...........................................
Electric power.........................................
Employment, N. Y . State factories . . . .
Business failures........................................
Building permits.......................................
New corporations formed in N. Y. Stat
111
119
105
115
130
105
111
121
102
lllp
118p
106p
99
112
149r
100
106
98
119
155
130
105
124
144r
101
lllr
100
121
147
112
103
114
llOr
96
109
99
105
128
114
101
115
181r
99
'99
116
148
138
General price level..... ..............................
185
186
185
186p
*«=Seasonal variation not allowed for
p=«Preliminary
r=Revised
6
M ONTHLY REVIEW, AUGUST 1, 1926
P r o d u c t io n
The production of pig iron, steel ingots, copper, zinc,
and automobiles showed slightly more than the usual sea
sonal reduction from May to June, but remained larger
than a year ago, while increased activity, after seasonal
adjustments, was reported in the production o f coal,
cement, shoes, and textiles, and in meat packing.
M ill consumption of silk, as reported by the Silk
Association, increased from May to June, notwithstand
ing the fact that wholesale and retail trade in silk goods
was smaller in June than a year ago, and stocks of fin
ished goods on hand in recent months have been larger.
Curtailment in the Paterson district was reported late
in July, however.
June indexes with comparable figures fo r recent
months and a year ago are shown below.
(Computed trend of past years =100 per cent)
1925
1926
June
April
May
June
95
94
88
102
99
98
129
114
89r
89r
128
110
76
118
117
113
109
107
126
101
110
101
lOOr
86r
112
111
67
105
118
110
96
103
98
100
111
99
89r
82r
128
104
61
95
114
108
100
102
107
99
99
105
101
101
98
99
103
85
109
135
128
113
87
92
93
136
148
87
116
93
113
92
93
97
105
81
107
139
124
129
99
90r
108
130
135
110
118
87
102
83
90
92
98
76
107
136
107
125
93
82r
95
129
137r
99
The condition o f the cotton crop on J uly 16 indicated
a crop o f 15,368,000 bales, assuming normal conditions
during the remainder of the growing season. The report
stated, however, that the actual yield m ight vary
between about 13,500,000 and 16,600,000 bales if sub
sequent conditions are below or above normal.
The size o f 1926 crops indicated by conditions on
July 1 is com pared in the follow ing table with actual
harvests in 1925 and average yields in the last five years.
(In millions)
Crop
1921-1925
Average
Harvest
Winter wheat, bushels...........................
Spring wheat, bushels............................
All wheat, bushels..................................
Corn, bushels..........................................
Oats, bushels..........................................
Barley, bushels.......................................
Rye, bushels...........................................
Hay, tons................................................
Apples, total crop, bushels....................
Peaches, total crop, bushels..................
Pears, total crop, bushels......................
Potatoes, bushels...................................
Tobacco, pounds....................................
Cotton, bales..........................................
549
253
802
2,849
1,327
186
68.2
90.5
170
46.9
17.7
396
1,288
11.5
1925
Harvest
396
271
666
2,905
1,512
217
48.6
86.7
172
46.6
19.8
326
1,365
16.1
1926
July
Forecast
568
200
767
2,661
1,334
191
39.7
77.8
208
61.7
24.6
334
1,139
15.4
Producers' Goods
Pig iron......................................................
Steel ingots...............................................
Bituminous coal........................................
Copper, U. S. mines.................................
Tin deliveries............................................
Zinc............................................................
Petroleum..................................................
Gas and fuel o il.......................................
Cotton consumptionr...............................
Woolen mill activity *r.............................
Cement......................................................
Lumber......................................................
leather, sole.............................................
Silk consumption*...................................
92r
83r
135
68p
105
Consumers' Goods
Cattle slaughtered....................................
Calves slaughtered...................................
Sheep slaughtered.....................................
Hogs slaughtered......................................
Sugar meltings, U. S. ports.....................
Wheat flour...............................................
Cigars........................................................
Cigarettes..................................................
Tobacco, manufactured...........................
Gasoline.....................................................
Tires...........................................................
Newsprint.................................................
Paper, total...............................................
Boots and shoes........................................
Anthracite coal.........................................
Automobile, all.........................................
Automobile, passenger.............................
Automobile, truck....................................
*=Seasonal variation not allowed lor
p =Preliminary
114
101
109
91
97
109
i25
93
99p
106
128
137
93
C o m m o d i t y P r ic e s
The Department o f Labor index o f average wholesale
prices advanced slightly further in June to 152 per cent
o f the 1913 average level. The greater part of the de
cline in this index from September 1925 to A p ril of
this year, and the subsequent slight increase in May
and June has been due to changes in prices o f agricul
tural commodities.
In the first three weeks of July, grain and cotton
prices advanced, reflecting unfavorable crop reports,
while livestock prices declined, and non-agricultural
commodities in general were steady, so that the general
level of wholesale prices appears to have shown little
change.
The accom panying diagram shows the course o f whole
sale prices fo r agricultural and non-agricultural com-
r= Revised
C rop s
Crop conditions showed slight improvement during
June, and on July 1 the composite condition o f all crops
remained about 6 per cent below the average fo r that
date in the last ten years. Spring wheat, especially,
deteriorated as the result of weather conditions in June
so that the indicated yield was much smaller than that
of last year or the five-year average.
The July 1 forecast of winter wheat, which is usually
fairly close to the actual yield, indicated a crop more
than 40 per cent larger than last year, and slightly above
the five-year average. The indicated crops o f corn, oats,
barley, and rye are smaller than 1925 yields, and in the
cases of corn and rye the prospect is fo r smaller crops
than the average for 1921-1925.
Course of Agricultural and Non-Agricultural Prices, 1900-1926.
(U. S. Department of Labor Index 1910-1926; Federal
Reserve Bank of New York Index 1900-1909.)
FEDERAL RESERVE AGENT AT NEW YO R K
modities by months since 1900. It shows that agricul
tural prices advanced steadily during the fourteen years
preceding the W orld W ar, while non-agricultural prices
showed little net gain. In 1913, which is taken as the
base year fo r the Department of Labor Index, agricul
tural prices were higher relative to other commodities
than they had been a few years earlier.
The two groups of prices rose almost together in 1916
and the first half of 1917, but during the succeeding
two years the principal rise was in prices of agricultural
commodities. From 1920 to 1924 agricultural prices
were low relative to non-agricultural, but in the past
two years this disparity has been largely corrected.
B u ild in g
Contracts for building and engineering projects, as
reported to the F. W . Dodge Corporation during June,
were slightly smaller than a year previous fo r the first
time in a year and a half. The accom panying diagram
shows that after starting the year at an unusually high
rate, the tendency in building contracts since March has
been downward, whereas last year the volume o f con
tracts continued upward until August.
"M I L L I O N S
o r DOLLARS
7
Total permits fo r the first half of this year were 1
per cent smaller than in the first half of 1925. Contract
and permit figures frequently differ, due to the fact
that there is some lapse of time between the issuance of
a permit and the awarding o f the contract, that the con
tract figures cover projects outside o f cities and public
works that are not covered by the permit figures, and
further that some permits are issued fo r work that
never materializes.
W h o le s a le T r a d e
Wholesale trade in this district during June showed
a slight increase over the previous y e a r’s level fo r the
first time since December. Substantial increases were
reported in sales o f jew elry, paper, stationery, and
shoes.
Machine tool sales recovered from the May
decline, and were the largest for any month in over
three years. Sales o f cotton commission houses were
above the previous y e a r’s level fo r the first time since
last October. On the other hand, job bers’ sales o f cot
ton goods were the smallest fo r the month o f June in
over 7 years, silk goods sales were substantially smaller
than a year ago, and sales o f wom en’s dresses and m en ’s
clothing continued below last y e a r’s level.
In the first six months of this year, total sales in all
lines were nearly 6 per cent smaller than last year, due
almost entirely to declines in clothing and textiles.
Hardware sales also were smaller than last year, while
sales o f stationery, paper, diamonds, machine tools, and
drugs showed the principal increases.
A ll reporting lines showed increases in stocks at the
end of June, compared with a year previous, with the
exception o f m en’s clothing and cotton jobbing. The
increase over last year in silk stocks, however, was not
so large as in other recent months.
Percentage Change
June 1926 from June 1925
Collec
tions
First Six
Acc’ts June ’26 Months
Receiv
from
able
May ’2G fr.1926
1925
+ 3.8
+ 1.7
+ 7.3
+ 5.2
— 16.3
—28.7
+70.1
— 18.1
—20.0
— 2.2 —21.2
— 17.1
+ 8.8
— IS. 7
+ 1.1
— 19.0
— 14.1
+ 1.6
+10.8
*+28.9
+ 2.0
+23.9
— 6.5
+ 9.6
—11.8
— 4.5
— 0.8
Net
Sales
Building Contracts Awarded in 36 States, and in New York and
Northern New Jersey District, 1926 compared
with 1924 and 1925.
The total fo r the first half of the year in 36 states was
12 per cent larger this year than last and was substan
tially above any previous year. In this district the vol
ume of contracts in June remained slightly larger than
a year ago, and the total for the first six months of 1926
was 19 per cent larger than in the corresponding period
o f 1924, the previous high record.
B uilding permits reported to the S. W . Straus Com
pany from 462 cities were l 1/^ per cent larger in June
than a year previous, follow ing decreases from last
yea r’s level in three o f the previous five months, but
the June increase was chiefly due to larger permit totals
in New Y ork City and Philadelphia. A m ajority o f the
larger cities continued to report less building work
authorized than a year ago.
Groceries..................
Men’s clothing........
Women’s dresses___
Women’s coats and
suits..........................
Cotton goods-Jobbers.
Cotton goods-Commission...........................
Silk goods.....................
Shoes............................
Drugs...........................
Hardware.....................
Machine tools..............
Stationery....................
Paper............................
Diamonds.....................
Jewelry.........................
Weighted Average...
Percentage
Change in
Net Sales
— 1.1
— 16.3
—31.8
— 14.0
+ 4.3
— 2.9
+ 2.7
+ 6.3
+12.4
+ 2.9
+19.2
Stock
end of
month
+ 6.6
— 1.2
+ 5.8
+ 3.7
+10.6
+ 9.1
— 23.0
— 1.7
— 3.8
+12.4
+ 4.7
+is!5
+i6!i
— 3.
+ 4.
—12.0
>+ 6.1
+ 1 .2
+ 1.7
+28.0
— 2.2
— 1.7
+32.4
— 1.9
+ 0.4
— 1.7
+ 4.3
3.8
+ 1.8
—28.6
— 4.0
+
—
+
+
+
+
4.1
4.0
6.5
9.7
7.2
8.9
+ 1.6
5.6
* — Stock at first of month— quantity not value,
C h a in S t o r e S a le s
Total sales o f reporting
increases over last year o f
per cent in the first six
increases were due almost
chain store
15 per cent
months o f
entirely to
systems showed
in June and 17
the year.
Tl.o
the opening of
new stores and sales per store averaged almost the same
as last year. The largest growth in volume of business
was in variety, grocery, and drug chains.
Percentage Change
First Six Months
1926 from 1925
Percentage Change
June 1926 from June 1925
Type of Store
Number
of
Stores
Variety..
Grocery..
Drug.......
Tobacco.,
Ten Cent
Candy...
Shoe........
Total..
Sales
per
Store
Total
Sales
+17.6
+ 15.6
+25.0
+18.1
+15.6
+13.3
+ 9.1
+20.1
+11.6
+ 6.3
+ 19.3
+ 14.5
+ 6.1
+ 1.0
+ 14.6
+15.4
+ 6.3
+ 2.2
— 3.8
+ 1.4
+ 2.7
—11.1
—11.8
Total
Sales
+25.2
+20.4
+20.3
+ 9.7
+ 9.2
+ 4.6
+ 3.6
+ 0.7
Sales
per
Store
+ 7.0
+ 2.0
+ 0.9
— 3.5
+ 3.1
—11.8
—10.0
+ 0.1
D e p a r t m e n t S t o r e B u s in e s s
Department store sales in this district for both June
and the first six months of this year averaged 4 per cent
larger than a year ago, and sales of apparel stores
showed an increase of more than 5 per cent. In mail
order houses the year-to-year increase in sales during
June was 12 per cent, compared with 8 per cent for the
first six months of the year.
The rate of turnover in department stores for the
month was slightly higher than last year, due to the
smaller increase in stocks than in sales, but for the first
half of the year the turnover was somewhat lower than
in 1925.
Follow ing increased sales in May, collections on both
regular and instalment accounts during June were
larger than last year. There was also a large increase
in the amount of regular outstanding accounts at the
end of June, but outstanding instalment accounts
remained below a year ago.
Percentage Change
June 1926 from June 1925
Locality
Net
Sales
+ 6.0
Stock on
Hand end Collec
of month tions*
Acc’ts
Receiv
able*
+ 3.9
+ 2.8
+16.2
+ 2.1
+ 7.5
+ 13.1
+ 0.2
+22.3
+ 0.4
+ 6.2
+ 5.1
— *3.5
+
+
+
—
+
+
+
2.2
1.4
2.3
3.6
7.4
2.9
2.1
New York................
Buffalo......................
Rochester.................
Syracuse...................
Newark.....................
Bridgeport................
Elsewhere.................
Northern N. Y. State
Central N. Y. State.
Southern N. Y. State
Hudson River Valley
Capita] District...
Westchester..........
— 3.6
+ 5.8
All department stores.
+ 4.0
+ 2.5
Apparel stores. . . .
Mail order houses.
+ 5.3
+ 16.1
— 2.9
4- 6.2
— 3.3
+ 2.0
+ 4.3
— 2.5
— 3.9
+ 1.6
— 7.6
— 1.0
+12.0
Percentage
Change
First Six Months
1926 from 1925
Net
Sales
+ 3.9
— 2.8
+ 7.1
— 2.1
+ 6.6
+12.6
+ 2.6
— 4.2
+ 4.7
Stock
on
Hand
+ 3.9
+ 2.6
+ 1.3
— 0.1
+ 8.9
+ 4.0
+ 1-2
— 1.0
+ 7.4
+ 1.1
+ 9.2
+ 5.4
+10.2
+ 3.S
+ 3.9
+ 5.3
+ 8.4
+13.3
*=Exclusive of instalment accounts
The diagram compares
this year with 1925 in
A lthough there were only
actually smaller than last
the first six m onths’ sales
38 individual departments.
7 lines in which sales were
year, the increases in many
Percentage Change
in Net Sales
June 1926
from
June 1925
Linens and handkerchiefs
Books and stationery. . .
Toys and sporting goods
Furniture........................
Silverware and jewelry..
Home furnishings..........
Musical instruments and
radio............................
Toilet articles and drugs
Women’s and Misses’
ready-to-wear.............
L uggage and other
leather goods..............
Women’s ready-to-wear
accessories..................
Men’s and boys’ wear..
Men’s furnishings..........
Silks and velvets............
Cotton goods..................
Woolen goods.................
Miscellaneous.................
Percentage Change
in Stock on Hand
First
First
June 30, 1926
from
Six Months
Six Months
1926 fr. 1925 June 30, 1925 1926 fr. 1925
+27.4
+24.3
+19.3
+14.2
+13.3
+10.8
+15.8
+16.6
+23.3
+13.8
+ 5.8
+ 7.6
+ 0.3
+ 2.9
+ 7.4
— 12.7
+ 2.3
+ 7.3
— 0.8
+ 7.4
+13.8
+ 5.4
+ 6.9
+ 3.5
+ 9.1
+ 8.5
— 43.3
+12.9
— 17.0
+ 4.3
— 3.2
+ 4.1
+ 8.0
+ 1.2
— 4.9
— 5.6
+ 7.7
+ 7.4
+ 2.0
+ 9.1
+ 6.8
+ 6.2
+14.2
— 4.4
— 0.8
+13.2
+ 3.8
+ 2.4
— 0.2
— 1.5
— 3.1
— 6.3
— 8.4
—23.3
— 3.4
+ 3.6
+ 1.1
+ 5.5
+ 1.6
— 19.5
—29.0
— 1.9
— 6.0
+11.9
+ 2.4
— 5.7
— 3.8
— 35.2
— 13.4
— 6.5
+ 7.81
+ 0.8
— 3.0
+ 1.7
— 20.4
— 9.5
of the main departments, including wom en’s apparel,
were under 5 per cent, and the largest increases were
reported in departments such as toys and sporting
goods, books and stationery, luggage, handkerchiefs,
linens, and gloves. The large decrease in sales o f musical
instruments and radio was due mainly to the unusual
number of sales o f radio manufacturers ’ surplus stocks
in the first half o f 1925.
FIRST6rios
l006
/o
1925
GLOVES
U
MENS SHOES U
JUNIORS'&GIRLSWEARfB
SWEATERS M
BOYS WEAR U
men’sfurnishings m
HEG.&HOUSEDSES5ESW
WOMENSshoes u
WOMENSCOATS U
WOMENS PRESSES ■
MILLINERY U
FURS'
■
M
ISSESREADYtoW
EAR■
MENSCLOTHING U
WOMENSSUITS U
HANDKERCHIEFS ■
LINENS
■
POMESTtCS U
NECKWEAR-VElLINGS■
INFANTSWEAR. U
KNITUNDERWEAR. U
WOMENSHOSIERY U
SILKS&VELVETS U
SILKVMUSLINUNDW
EARM
CORSETS&BRASSIERESB
COTTONDRESSGOODS U
'WOOLENDRES5 GOODSU
TOYS-SPORTINGG'DS. ■
BOOKS-STATIONERY ■
LUGGAGE
■
FURNITURE
U
TOILETARTICLES-PRUGS■
CHINA-GLASSWARE ■
HOUSEFURNISHINGS M
FLOORCOVERINGS E
SILVERWARE-JEWELRY■
PRAPERIES-LAMPS U
MUSICALINST-RADIO U
TOTALALLDEPARTM
ENTS^
1114
■ 7/3
I in
■
70 7
EI06
1105
WI04
1 /0 4
1104
1103
I 101
■ 115
1114
■ 109
Ulog
I107
I107
I 103
I101
mu7
■ 7/6
■ 114
1113
m m
n o
a m
lo g
wm io d
u
io c
im
January to June Department Store Sales, 1926 compared with 1925.
@FedFRASER