The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MONTHLY REVIEW of Credit and Business Conditions S e c o n d Federal R eserve A gen t F e d e r a l R e s e r v e D is tr ic t Federal R eserve Bank, New York Business Conditions in the United States RODUCTION of basic commodities and retail trade increased during October, and the volume of freight shipments and wholesale trade continued large. The level of wholesale prices and the volume of employment showed but little change. P P roduction The Federal Reserve Board’s index of production in basic industries advanced 3 per cent, in October, after having declined for four months. The increase for the month, while due in part to the resumption of anthracite coal mining, also reflected increases in textiles, lumber, and sugar, and most other industries included in the index. Employment at industrial establishments showed practically no change between September and October. Contract awards for new buildings increased through out the country considerably more than is usual at this season, and were 25 per cent, larger than in September. Residential projects formed a larger proportion of the total than in any earlier month of the year. Crop estimates by the Department of Agriculture on November 1 indicated a substantial reduction from the September forecast in the yield of cotton, but larger yields of corn, potatoes, and apples. T rade Heavy movement of miscellaneous merchandise and live stock resulted in October in the largest railroad ship December 1 , 1923 ments of any month on record. Wholesale trade was 12 per cent, larger than a year ago and sales in all leading lines except shoes showed increases. Department store sales were 13 per cent, larger than last October and sales of mail order houses were the largest of any month since 1919. P rices Wholesale prices declined less than one per cent, in October, according to the index of the Bureau of Labor Statistics and stood approximately at the level of a year ago. The principal changes for the month were declines in the prices of fuel, clothing, metals, and animal prod ucts, while wholesale prices of crops, particularly cotton, increased. During the first half of November the prices of wheat, hogs, pig iron, and hides receded, and prices of cotton and cotton goods, cement, and copper advanced. B a n k C redit Since the middle of October there has been a slight decline in demand for credit for commercial and agri cultural purposes at member banks in leading cities. Considerable decreases in borrowings for these purposes in the New York and Chicago districts were partially off set by increases in other districts. Loans secured by stocks and bonds increased somewhat, while investments continued to decline and reached the low point for the year. The total member bank accommodation at Federal Re serve Banks declined between October 17 and November PEft-CENT.' (1919 average = 100 Per cent.) Index of Wholesale Prices, U. S. Bureau of Labor Statistics (1913 average = 100 Per cent.) MONTHLY REVIEW, DECEMBER 1, 1923 o f B ILLIO N S OF DOLLARS V o llar s 1919 . 1920 1921 1922 1923 Bank Credit— 800 Member Banks in Leading Cities 21, and on the latter date was the lowest since the middle of the year. The total volume of Federal Reserve Bank credit outstanding, however, remained relatively con stant because of increased purchases of bills in the open market. The volume of Federal Reserve note circulation declined by about $50,000,000 during the period, while other forms of money in circulation increased. Money rates showed an easier tendency and during the early part of November the open market rate on com mercial paper in New York declined from 5-514 to 5 per cent. Banking Conditions, Second District Total loans and investments of reporting member banks in this district showed little net change between the middle of October and the middle of November. There was a decrease of slightly over $50,000,000 in loans made largely for commercial and agricultural pur poses, but this was offset by increases in loans on stocks and bonds and in security investments. Total deposits showed a gradual upward tendency, and on November 14 were the highest since the first part of July. Bank Credit— All Federal Reserve Banks Rediscounts and advances of the Federal Reserve Bank of New York declined $45,000,000 between October 17 and November 21, and at $126,000,000 were at the low point of the year. But as holdings of bilk bought in the open market were $40,000,000 larger, total earning assets were only slightly lower. The following diagrams show recent changes in the loans and deposits of the reporting member banks for the country as a whole and for New York City and also show changes in total earning assets and note circu lation of all Federal Reserve Banks and of the New York Reserve Bank. The 1922 average is in each case taken as a basis for comparison. Both for all districts and for New York City total loans and investments of reporting member banks are considerably above the 1922 average, due chiefly to increases in loans made largely for com mercial and agricultural purposes. The expansion of member bank loans over a year ago has taken place with out increase in the volume of credit extended by the Federal Reserve Banks, but has accompanied net gold imports amounting to $261,000,000 since Nov. 1, 1922. P E R C E N T. PE R ' C E N T . '+12r +Ur ■f10 +10 ALL DISTRICTS N E W ALL DISTRICTS Y O R K 4r C I T Y \ i N E ] iJ Y O f\K J\ COML. LOANS> I V +8 4 y +6 r / c o m i RCIAL f LO A /V r* \ s / > +6 DEPOSIT.5 1 1 / + 4 ■+4 +£ 4 Zv V 19; 0 LOANS AVCRAGE 4-10 NOTES a -*-*- -*■- I92.Z COVERAGE \ A -10 - wV l \ m t 1ING- r Vv EARNIN S’ ASSETS / " > * V -6 -6 AUG. 5EP. OCT. MOV. DEC. AUG. SEP. OCT. MOV. DEC Loans (including investments), Commercial Loans, and Deposits of Reporting Member Banks (1922 average = 100 Per cent.) AUG. SEP. OCT. MOV. DEC. ETS | j _ -4 -4 N I DEPO SIT' t 1922 AV:rage < -2. » -2, )ZZAV, AUG 1 IN OTE5V-* I OCT. NOV. DEC. 5LP. Note Circulation and Earning Assets of Federal Reserve Banks (1922 average = 100 Per cent.) FEDERAL RESERVE AGENT AT NEW YORK 8 Velocity of Bank Deposits Money Rates The rate at which deposits were checked out of banks in leading cities declined during October, notwithstand ing increases in certain other phases of business activity. The decreases were most marked in New York City and Boston, where the rate of turnover fell to the lowest points this year, but there were also declines in all other cities for which figures are available. The fol lowing diagram shows the velocity of deposits in 4 lead ing cities, after allowing for seasonal variation. The decline in money rates which became marked after the middle of October continued during the early part of November and rates in some instances reached the lowest points in several months. The prevailing rate for prime commercial paper de clined from 5*4 to 5 per cent., and some sales were made at 4% per cent., the lowest since the spring. While the market in New York was limited there was a good de mand in the interior for the moderate volume of paper offered by the dealers. During October the outstanding paper of 26 dealers increased $19,000,000 to $805,000,000. Bill rates for maturities up to 120 days were un changed at 4 % to 4 ^ per cent, on purchases by the dealers and 4 to 4 ^ per cent, on sales by them. There was a good demand, but, owing to unusually heavy sup plies arising out of cotton exports, dealers portfolios at the end of October and in the first part of November were the largest in more than two years. Rate of turnover of bank deposits. Allowance is made for usual seasonal changes The table below gives figures for a larger group of cities in terms of the annual rate, after allowing for usual seasonal changes. N ew York C it y ....................... A lbany....................................... B uffalo........................................ R ochester................................... Syracuse..................................... B oston .................................. .. C hicago...................................... San Francisco........................... Apr. M ay June July Aug. Sept. Oct. 86.6 25.5 29.3 22.0 10.0 39.7 47.1 38.1 8 1.4 19.5 2 6.5 23.1 10.3 3 5.5 4 4.9 4 0.2 8 1.0 2 6.0 26.9 2 3.8 10.3 3 6.3 4 5.8 4 1.9 75.1 24.7 25.5 23.3 9 .9 32.8 43.7 38.8 71.8 2 9.3 26.7 2 2.4 9 .8 3 2.6 43.4 3 8.6 77.8 30.0 26.7 22.1 9 .9 34.6 4 3.6 4 1.5 68.4 28.6 25.4 2 1.0 9 .6 28.9 4 2.5 3 9.0 A partial explanation of the differences between cities in the rate of turnover of demand deposits is found in differences in the type of deposits. In the Buffalo banks time deposits are larger than demand deposits. In Syra cuse, on the other hand, time deposits are small and there is a considerable volume of slow moving, interest bearing accounts which are listed as demand deposits. Hence the demand deposits of that city show a slower rate of turnover. The relative amounts of time and demand deposits in the banks for which velocity has been com puted are shown in the following table for November 7, 1923. Dollar figures in thousands N et Demand Deposits New York C ity— 36 banks........ Albany— 3 banks......................... Buffalo— 12 banks....................... Rochester— 3 ban ks................ Syracuse— 7 ban ks...................... Boston— 11 ban ks....................... Chicago— 14 banks...................... $3,731,594 40,718 134,898 42,122 81,571 517,602 894,263 Time Deposits $407,606 9,932 138,256 19,822 14,128 75,690 184,229 Per cent of Time Deposits to Net Demand Deposits 10.9 24.4 102.5 47.1 17.3 14.6 20.6 Short term Treasury securities continued in active de mand and scant supply. Offering rates on 4-6 months maturities declined nearly y 2 of 1 per cent, below the high point of October, and rates for longer maturities also showed substantial declines. Stock market time money also declined in October and early November and was quoted at 5 to 5J4 per cent., compared with 5y 2 to 5 ^ for a period late in September. Except for a few days during the early part of the month, call money averaged close to 4 % per cent. Security Markets The declarations of extra dividends by a number of industrial concerns and reports of increased activity in several basic industries were among the factors in a sharp recovery in the stock market in November. Stock averages rose 4 or 5 points but remained from 10 to 15 points below the March high levels. Liberty and high grade corporation bonds continued their recoveries and reached again the price levels which prevailed about September first. On November 20 an average of 40 corporation bonds stood nearly § y 2 points below the high level of September 1922, and more than a point above this year’s lowest level. French and Belgian issues were weaker in sympathy with exchange rates but held substantially above the low points of earlier in the year. The volume of new security issues increased during the latter part of October and in November, and offer ings were the heaviest since June. New financing by railroads was particularly large, and other important issues included $100,000,000 of a leading public utility, $25,000,000 Dutch East Indies bonds, and several large State and municipal issues. In general, the new offer ings appeared to be well taken by the market. MONTHLY REVIEW, DECEMBER 1, 1923 4 (In millions) Foreign Exchange Under the influence of disturbed European politi cal conditions, seasonally increased exports from the United States, and the accumulation of dollars against debt payments, sterling exchange fell by November 19 to $4.26, or 45 cents below the Febru ary high point. There was later a recovery to $4.38. French francs broke below 5^4 cents to a new low figure and new low points for the year were reached by Italian, Dutch, Scandinavian, Spanish, Japanese, Chinese, and Argentine exchanges, while declines pre vailed also among other rates. Brazilian exchange fell to further new low points, and there was no halt in the rapid depreciation of the mark. The accompanying diagram compares the movements of leading exchanges by months since 1919. The diagram indicates the usual effect on the exchanges of heavy foreign purchases of foodstuffs and cotton from this country in the fall of each year. Month July............................................ Exports Imports 335 307 341 325 316 320 302 311 382 402 329 303 398 364 373 320 287 275 254 303 Balance + 6 + 4 - 57 - 39 - 57 +'is + 36 + 128 + 99 In October as in September, cotton shipments were an important factor in large exports. Exports of cotton manufactures increased over September, but there were decreases in shipments of meats and grains. Factors in higher imports were increased receipts of raw silk which had decreased in September following the earthquake in Japan, and larger receipts of coffee, rub ber, and sugar. Cotton Exports and Consumption Depreciation of Foreign Exchange Rates from Par Value Gold Movement Net imports of gold into the United States during October totaled $28,551,000, continuing the heavy flow of previous months. In the first ten months of the year net imports were $223,195,000 compared with $199,688,000 during the first ten months of 1922. October im ports were largely from Great Britain and Germany. Exports were chiefly to British India and Mexico. During the first three months of the current cotton marketing year, exports of cotton have been larger than last year by approximately 276,000 bales, or 19 per cent., due chiefly to the increase shown in the September shipments. In the cotton year ended July 31 the exports were, with the single exception of 1918, the smallest of any year since 1896. The relation between exports and domestic consump tion of cotton in past years is shown by the accompany ing diagram. Prior to the war, exports consistently ex ceeded domestic consumption by a substantial though gradually decreasing margin. Exports, however, de clined sharply during the war and since the war have averaged below the consumption figures. Factors in lower exports in recent years have been decreased buy ing power abroad and high prices accompanying short crops. MILLIONS Foreign Trade Exports of merchandise from the United States showed a further seasonal increase of $21,000,000 during Octo ber and were the largest since February 1921. Imports likewise increased substantially and were the largest since June of this year, exceeding those of October 1922 by $27,000,000. The following table shows imports and exports for the different months since the first of the year and indicates that whereas during the four months from March to June imports exceeded exports the bal ance of trade has again become favorable to this country by a substantial margin. Exports and Domestic Consumption of Cotton by years ended July 31 (Exports prior to 1915 by fiscal years) 6 FEDERAL RESERVE AGENT AT NEW YORK Prices The Department of Labor’s index of wholesale prices declined from 154 to 153 during October, due to declines in fuel, metals, and miscellaneous articles and small de creases in prices of cloths and clothing resulting from lower prices for silk and worsted yarn. Other groups, including farm products, were unchanged or higher. The total index is now at practically the same point as in October a year ago. As shown in the following table the changes since that time have tended to bring the various groups which comprise this index nearer to a common level. October 1922 October 1923 Farm products................................................................................... F oods................................................................................................... Cloths and clothing........................................................................ Fuel and lighting............................................................................ M etals................................................................................................. Building materials............................................................................ Chem icals........................................................................................... House-f urnishings............................................................................. Miscellaneous..................................................................................... 138 140 188 226 135 183 124 176 120 144 148 199 172 142 182 129 183 120 T otal (w eighted).......................................................................... 154 153 This bank’s index of 20 basic commodities declined during the first half of November, due partly to reaction in silk from the high prices reached after the earthquake, decline in hogs to the lowest since 1915, and further loss in petroleum. Cotton rose to nearly 36 cents and there were smaller advances in copper, lead and sugar. There was practically no change during October in the cost of living index computed by the National Industrial Conference Board. Farm Prices and Purchasing Power The continued strength of prices of farm products, together with price declines in many other commodities, has resulted in a further narrowing of the spread between agricultural and other prices, and the Depart ment of Agriculture’s index of the relative purchasing power of farm products advanced in October to 75 per cent, of the 1913 average, compared with 64 per cent, in August, the low month last year. The following diagram compares the movement in this index in PERCENT. Mail Order Sales in Percentages of Computed Normal, and Pur chasing Power of Farm Products as shown by the ratio between Prices of Farm Products and of other Commodities recent years with the course of mail order sales. Mail order sales appear to give evidence of an even more rapid recovery in rural buying power than is indicated by the ratio between prices of farm products and other prices. Other factors besides prices which enter into buying power include changes in costs of production on the farm and changes in fixed charges and credit facilities. The curve for mail order sales is based upon this bank’s index, which allows for price changes, seasonal variation, and usual year to year growth. Employment and Wages Employment in New York State factories increased 1 per cent, in the month ended October 15, due to larger employment in the iron and steel and railway equipment industries and to seasonal activity in the clothing and food products industries. The number of wage changes, as reported by the National Industrial Conference Board for the United States and summarized in the table below, was larger in the month ended November 14 than in any month since June. Month Ended Increases Decreases Total Changes June 14, 1923........................... 287 137 77 22 28 151 1 0 0 1 2 5 288 137 77 23 30 156 August 14.................................. September 14............................ November 14............................ Voluntary advances of 1 to 3 cents an hour were made by several railways to clerks, mechanical and electrical employes, and stationary engineers and firemen. In creases occurred also in the street railway and printing industries and on November 14, building trade unions in New York City presented demands upon employers for an increase of $1 a day in the basic wage. Several large corporations announced plans for profit sharing and em ployment insurance. Average weekly earnings of factory workers in New York State increased 1 per cent, in October to $27.73, and with the exception of June were the highest since the end of 1920. During the past year average weekly earnings have increased 8 per cent., due to increased working time and higher wage scales. Production Production in basic industries increased during Octo ber, following declines in the preceding four months. The Federal Reserve Board’s index covering 22 com modities advanced from 114 to 117 and most of the indexes of this bank for separate industries showed in creases. The output of steel ingots increased 7 per cent, from 3.313.000 tons in September to 3,548,000 tons in October, and there was a small increase in pig iron production for the month, though the daily rate of output was some what lower. Unfilled orders on the books of the United States Steel Corporation showed a further decline of 363.000 tons to 4,673,000 tons, the smallest amount since March 1922. MONTHLY REVIEW, DECEMBER 1, 192,3 The production of passenger automobiles totaled 335,000 cars, an output which has been exceeded in the past only by the unusual production of April, May and June of this year. There was also an increase in the output of motor trucks. Notwithstanding the high prices of cotton, domestic mills consumed 542,000 bales in October, or 12 per cent, more than in September. During November, however, some of the New England mills announced a 60 per cent, curtailment in operations, and certain of the southern mills made reductions in working schedules. Bituminous coal production during October, while the largest since January, increased somewhat less than usual as compared with September, and the index of production, in consequence, declined. Following curtail ment of operations in September due to the strike, an thracite mining was resumed in October at somewhat less than the August rate. The following table gives this bank’s available indexes of production during October. The figures are expressed as percentages of computed normal. Allowance is made for seasonal variation and the usual year to year growth. (Computed normal = 100 P er cent.) 1922 Oct. Producers' Goods Pig iron.................................. Steel i n g o t s .......................... Bituminous coa l................... Copper, U. S. m in e............. Leather, sole......................... Tin deliveries....................... Petroleum .............................. Cotton consum ption........... W oolen mill a ctivity*........ W ood p u lp ............................ Zinc*...................................... Consumers* Goods Anthracite c o a l .................... Wheat flour ......................... Cattle slaughtered............. Calves slaughtered.............. Sheep slaughtered............... Hogs slaughtered................. Sugar meltings, U. S. ports Paper, t o t a l.......................... Tobacco consumption........ Gasoline................................. Automobile, a ll.................... Automobile, passenger. . . . Automobile, truck............... Automobile, tires................. Boots and shoes................... 184 100 91 84 94 103 112 95 106 92 75 1923 June July 93 139 74 109 108 114 109 98 93 92 139 96 113 123 75 105 106 107 105 99 99 105 84 142 83 104 106 99 146 89 98 103 73 91p 80 144 104 116 109 145 79 149 74 93 35 109 98 118 76 146 102 111 102 110 75 107 100 122 114 105 123 101 86 89 122 135 70 79 102 101 84 88 93 87 102 111 110 114 119 92 132 99 Sept. Oct. 122 121 110 102 95 112 Aug. 152 159 126 134 105 151 162 109 95 88 108 145 157 98 121 90 88 100 98 101 99 107p *98 94 lOlp 73 95 104 102 137 85 89 107 140 159p 149p 17 lp 104p 113p 107p 90p 98p (Computed normal=100 Per cent.) 1923 Average for Mar. Apr. M ay Primary Distribution Car loadings, mdse, and m isc.......................... Car loadings, oth er........................................... Wholesale trade, Second D istrict................... Exports................................................................ Im p o rt................................................................. Cereal exports..................................................... Distribution to Consumer Department store sales, Second District........ Chain store sales................................................ Mail order sales................................................... New life insurance written................................ Amusement receipts........................................... Magazine advertising........................................ Newspaper advertising...................................... General Business Activity Bank debits, outside N. Y . C ity ..................... Bank debits, New York C ity .......................... Electric pow er..................................................... Postal receipts..................................................... Building permits.................................................. Business failures................................................. Employment, N. Y . City factories................. Sept. Oct. 110 121 106 83 126 119 103 106 100 95p 94p 86 107 101 116 85 p 104p 58 98 100 102 103 101 93 96 97 96 91 112 84 96 90 100 97 100 113 110 106 110 103 149 103 104 97 93 109 97 127 88 101 102 92 98 92 ioi 152p 111 103 p Preliminary. Building The value of building permits granted in 158 princi pal cities increased 22 per cent, in October, accord ing to Bradstreet’s, although there is ordinarily little change at this season of the year. There was also a substantial increase in contracts actu ally awarded, as indicated by a gain of 26 per cent, in the F. W . Dodge Company figures for the 27 north eastern States. The increase was due chiefly to increased residential construction in New York and northern New Jersey, and brought total contracts for the first ten months of the year slightly ahead of those for the same period of last year. The following diagram, comparing the figures for the first ten months of the years from 1920 to 1923, indicates the importance of residential construction in increased building activity, as business and industrial building has declined since 1920 and other groups have shown small changes. Because of the decline in construction costs from the high point of 1920, the increase in the actual volume of building has been larger than is indicated by the dollar figures. £<887 561' * Seasonal variation not allowed for. p Preliminary. .f? 4 6 .., :4 5 0 v 2,536 ALL OTHER f .351; Index of Business Activity October indexes of business activity generally showed increases compared with September, but in a majority of cases were lower than the average figures in March, April, and May. In the group covering distribution to the consumer the October indexes were in every case above September figures, and noteworthy increases occurred in car loadings of merchandise and miscel laneous freight, wholesale trade, building activity, and bank debits outside of New York. The following table gives the indexes in percentages of computed normal, with allowance made for seasonal changes, year to year growth and, when necessary, for changes in prices. BUSINESS td IN D U S T R IA L RESIDENTIAL 1922. 192.3 192.0 192.1 Value of Building Contracts awarded in 27 Northeastern States in first 10 months of the years 1920 to 1923 (In millions of dollars) 7 FEDERAL RESERVE AGENT AT NEW YORK The prices of building materials generally remained unchanged in October, but building wages increased slightly. As shown in the diagram below, building wages are at the highest level of the year and 7 per cent, above the maximum of 1920, but the price of materials has declined 11 per cent, since April and about 40 per cent, since 1920. The composite cost of building as com puted by this bank is 4 per cent, lower than in May but nearly twice the 1913 cost. .150 fid 1 J %PQa r\ A jt . A 50 v 0 150 A AX? GROCt: r ie s . i. ....V /- SH10 ES 1 150 Changes in Wages of Building Workers, the Cost of Building Material, and the Total Cost of Building (1913 average = 100 Per cent.) 100 r a J Profits in the Third Quarter of 1923 In the November 1 issue of this R e v ie w figures were given showing the profits of 190 business corporations during the first six months of 1923. Figures for the third quarter of the year available for 36 industrial and 128 public utility concerns generally show a decline in profits as compared with the first and second quarters, apparently a reflection of reduced rate of operations and in some cases higher operating costs. \ / r A / K ... .... v M A C H II T O O l J5 1 100 50 [ ?\ y a iy w v ....■ \ JEWELRY yi * 4 / fV v / D IA M O N D S ^ (Net profits in thousands of dollars— 000 omitted) i923 Number of Concerns Iron and steel............................................ M otors and accessories........................... O il................................................................ Miscellaneous industrials....................... 8 4 7 17 DRUGS First Quarter Second Quarter Third Quarter 23,500 9,600 12,900 12,200 41,800 12,000 9,900 12,900 38,100 8,300 11,500 5,900 Industrials, t o t a l.................................. 36 58,200 76,600 63,800 Telephone................................................... Other utilities............................................ 72 56 36,100 23,500 35,500 21,100 30,200 19,700 Public utilities, total........................... 128 59,600 56,600 49,900 Grand, total........................................... 164 117,800 133,200 STATIONERY Wholesale trade in this district was more active in October than in September, and this bank’s weighted in dex of the sales of 164 dealers in 11 principal lines ad vanced 12 per cent, over September and was 11 per cent, higher than in October last year. This increase occurred ATF il V7 A A m 113,700 Wholesale Trade L lrt A/A.m\il li q\ jp|\j 'nf \ <s THING . .A 50 A W 1 VW OMEN'S CLOTH IN :v 1919 1920 192.1 19£2 19 2 3 Monthly Sales of Representative Wholesale Dealers in the Second Federal Reserve District (Average sales in 1919 = 100 per cent.) notwithstanding the fact that there is usually a decline in October, and probably reflects delay by many retailers 8 M ONTHLY RE V IE W , DECEM BER 1, 1923 in making their purchases until later than usual in the fall. Sales of women’s coats and suits increased 25 per cent, over September and 20 per cent, over October a year ago, and sales of men’s clothing were nearly equal to those of September, whereas last year September sales greatly exceeded those of October. Other factors in larger trade in October were increased sales of hardware, accompany ing continued active building operations, and gains in sales of cotton goods, groceries, and drugs, due partly to higher prices. The diagrams on page seven compare fluctuations in sales in the different commodity lines during the past several years. Monthly average sales during 1919 have been taken as 100 per cent., and no allowance has been made for price changes or seasonal variation. Detailed comparative figures of October sales are shown in the following table with the different com modity lines grouped as shown by the diagrams. Comm odity 1919 1920 1921 1922 1923 D ry goods............................ (a) Cotton goods........... (6) Silk goods................. Groceries.............................. Shoes.................................... Hardware............................ Machine tools..................... Diam onds............................ Jewelry................................ Drugs................................... Stationery........................... C lothing.............................. (a) M en’s ........................ (6) W om en’s dresses... (c) W om en’s coats and suits......................... 129 109 148 120 259 110 168 167 183 98 111 88 98 80 70 74 66 109 89 110 146 82 141 95 132 95 116 87 85 92 77 89 109 85 29 77 76 89 76 83 110 57 100 100 100 100 100 100 100 100 100 100 100 100 100 100 108 114 102 108 103 117 86 97 104 118 96 116 131 93 + + + + + + -f + + + + 84 75 73 100 120 + 25.4 Total (weighted)........... 116 96 86 100 111 + 11.6 6 .0 7 .0 18.9 23.9 8 .8 15.2 26.2 7 .6 22.5 18.7 22.6 10.3 0 .9 8 .9 Department Store Business Department store sales in this district wTere 9.5 per cent, above those of October a year ago compared with increases of 4 per cent, in September and 11 per cent, in August. Sales in Newark and in New York City were relatively larger than in any other city in the district, but in no city were the sales below those of last October. With the exception of the cotton and silk goods de partments, sales in all sections of the stores were consid erably above those of last October; and sales of clothing, both men’s and women’s, and of shoes, hosiery, woolen goods, furniture, and house furnishings showed particu larly large increases. The following table shows the changes in sales in eleven major groups of departments. Per cent. Change in Sales, October 1922 to October 1923 MILLIONS OF DOLLARS Per cent. Change, September to October 1923 Dollar Sales During October (October 1922 = 100 Per cent.) Woolen goods ......................................................... M en’s and boys' wear............................................ Shoes.......................................................................... H osiery...................................................................... House furnishings.................................................. W omen’s and misses’ ready to w e a r .................. Furniture ................................................................. W omen’s and misses’ ready to wear accessories Cotton good s........................................................... Silk goods................................................................. Miscellaneous........................................................... Stocks held by department stores on November 1 were 8 per cent, larger than on October 1, due to receipt of Christmas and winter merchandise. Compared with November 1 last year there was an increase of 13.5 per cent., reflecting in part higher prices. Higher prices were further indicated by an advance of 5 per cent, in the average sales check from $3.20 last October to $3.36 this year. The following diagram compares the sales and stocks of department stores in this district during the first ten months of the current year with those of 1922. + + + + 18.6 15.0 13.2 13.2 + + 9 .9 9 .7 + 11.6 0 .5 + 16.9 Sales and Stocks on Hand of Representative Department Stores in the Second Federal Reserve District Sales by mail order houses during October were 22 per cent, above those of last October, and the largest in dollar value of any month since December 1919. A diagram comparing the mail order sales in percentages of com puted normal with the purchasing power of farm prod ucts is shown elsewhere in this issue of the R e v ie w . Detailed figures of the stocks and sales of department stores in this district are shown below. Net Sales During October (Oct. 1922 =100 Per cent.) A ll dept, stores.. . . New Y ork ............ Newark................. Bridgeport........... Elsewhere............. Appaiel stores___ Mail order houses. 1919 1920 1921 1922 94 94 91 93 97 103 110 105 88 93 96 96 92 91 94 96 97 111 94 80 100 100 100 100 100 100 100 100 100 100 89 93 77 83 82 98 101 91 83 143 Stock on Hand November 1 (N ov. 1, 1922 =100 Per cent.) 1923 1919 110 111 104 114 108 108 102 107 105 122 100 100 104 102 122 129 103 91 83 1920 1921 120 120 125 125 141 153 118 110 103 103 103 108 104 103 102 100 108 93 1922 1923 100 100 100 100 100 100 100 100 100 114 114 108 117 118 111 100 112 115 Chain Store Sales October sales by all types of chain stores were larger than in either September or in October a year ago. The gain over October a year ago was due in part to the open ing of new stores but the average sales per store of ten cent, cigar, candy, grocery, and apparel stores were larger this year than last.
@FedFRASER