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MONTHLY REVIEW
o f C r e d it a n d B u s in e s s C o n d it io n s
S e c o n d
Federal Reserve Agent

F e d e r a l

R e s e r v e

Federal Reserve Bank, New York

RO D U C TIO N o f basic commodities and factory em­
ployment showed further increases in October, and
distribution o f merchandise was in large volume.
The general level o f wholesale prices advanced, reflecting
largely a rise in the prices o f agricultural products.

P

P roduction

The Federal Reserve B oa rd ’s index of production in
basic industries, adjusted to allow fo r seasonal varia­
tions, increased 6 per cent, in October, and was 16 per
cent, above the low point of midsummer, though still
considerably below the level of the early months o f this
year. Output of iron and steel, cotton and woolen
textiles, lumber, and bituminous coal was substantially
larger than the month before. F actory employment in­
creased 2 per cent, in October, reflecting larger working
forces in most o f the m anufacturing industries. B uild­
ing contract awards increased and were 14 per cent,
above a year ago.
Crop estimates by the Department o f A griculture in
November showed increases in the expected yields o f
corn, cotton, tobacco, and potatoes. The movement o f
crops to market in October reached the largest volume
in five years and exports o f grain and cotton were in
greater volume than in the corresponding month o f any
recent year.
PERCENT.

Index of 22 Basic Commodities Corrected for Seasonal Variation
but not for year to year growth. (1919 = 100 Per cent.
Latest figure, October.)

December 1,1924

T rade

B u s in e s s C o n d it io n s in t h e U n i t e d S ta te s




D is t r ic t

Railroad freight shipments were larger in October
than in any previous month, owing to exceptionally
heavy loadings o f miscellaneous merchandise and grain.
Wholesale trade increased 3 per cent., but was 2
per cent, less than in October 1923.
Sales o f
dry goods, shoes, and hardware were considerably
smaller than a year ago, while sales o f groceries
and drugs were larger. Department store sales showed
a seasonal increase but were 4 per cent, less than last
year, and sales o f mail order houses and chain stores
also increased and were in greater volume than in 1923.
In preparation fo r Christmas trade merchandise stocks
at department stores increased substantially and were 2
per cent, larger than a year ago.
P rices

The wholesale price index o f the Bureau o f Labor
Statistics rose 2 per cent, in October as a result o f con­
siderable advances in the prices o f farm products and
foods, and slight increases in the prices o f clothing and
chemicals. Fuel and metal prices declined and prices
o f building materials and house furnishings were prac­
tically unchanged. D uring the first half o f November
quotations on all grains, cotton, silk, copper, and rubber
advanced, while prices o f raw sugar and bituminous
coal declined.
PER CENT.

Index of U. S. Bureau of Labor Statistics (1913 = 100 Per cent,
base adopted by Bureau. Latest figure, October)

MONTHLY REVIEW, DECEMBER 1, 1924

2

Member Bank Credit— Weekly Figures for Member Banks in 101
Leading Cities (Latest Figures, November 12.)

B a n k C redit

Loans fo r commercial purposes at member banks in
leading cities, which had increased rapidly from the
beginning o f September to the middle of October, ad­
vanced only slightly in the follow ing fou r weeks. The
growth of loans secured by stocks and bonds was also
relatively small, notwithstanding great activity in the
securities market. H oldings of investments by these
banks continued the increase which began in the early
months o f the year. A large part of the increase in
demand deposits during the fou r weeks ended November
12, when they were higher than at any previous time,
was in bankers’ balances indicating a continued move­
ment o f funds to the large centers.
A t the Reserve Banks an increase in earning assets
was the result o f larger offerings o f acceptances, reflect­
ing firmer money conditions. W hile discounts and hold­
ings o f United States securities remained practically
unchanged during the fou r weeks ended November 19,
the increase in acceptances carried total earning assets
to the highest point since the early part o f the year.
Money in circulation increased in October fo r the third
successive month and the total on November 1 was
$215,000,000 larger than in August.
M oney rates continued to show a firmer tendency and
by November 23 were generally from ^ to % o f one
per cent, higher than in October.

October. The volume o f total loans secured by stocks
and bonds has also been fairly constant, notwithstanding
the activity and rising prices in the stock markets, but
banks have continued to increase their holdings o f in­
vestments, so that on November 19 both their holdings o f
United States Government securities and o f other types
o f stocks and bonds stood at the highest levels o f the
year.
The follow ing diagram indicates, through Novem­
ber 12, the recent course o f loans and deposits o f report­
ing member banks in this district and in all other
sections o f the country. On that date, loans and invest­
ments o f these banks in the Second D istrict were $834,000,000 higher than on June 4, while deposits in the
same period showed an increase o f $936,000,000.

OBILLIONS
FDOLLARS
1£|

BILLIONS
OF DOLLARS

ALL REP ORTING- &ANKS
EXCEPT' 2.NO- DfS'TRICT

1
TOTAL LOAIUS
&

ALL REP ORTING BANKS
SECOf'ID DISTRliCT

a
J

/
v

/ /

-a A

f f t t

f
TOTAL I-OANS
& INVESTl

A

S *

/ i rOTAL

DE.POSITS

TOTAL
1DEPOSITS

B a n k in g C o n d i t io n s in t h e S e c o n d D i s t r i c t
The volume o f bank credit outstanding in this district
showed some further increase in November and both the
total loans and investments and the total deposits o f the
weekly reporting member banks reached levels somewhat
higher than any previously touched this fall. The ex­
pansion, however, was not as rapid as during the summer
and early fall, due partly to the termination o f the
seasonal increase in commercial loans. These loans re­
mained close to the high point o f the year, whereas ordi­
narily they decline considerably after the middle of




IANFEBM
ARAPRM
AYJUNJU
LAU
G5EPOCTN
O
VD
EC
192.4

JANFEBM
ARAPRM
AYJW
t JU
LAU
GSEPOCTN
O
VDEC

192.4Total Loans and Investments and Total Loans and Investments and
Total Deposits of 636 Report­
Total Deposits of 108 Report­
ing Member Banks in Prin­
ing Member Banks in the
cipal Cities Outside the
Second District.
(Latest
Second District. (Latest
figures, November 12.)
figures, November 12.)

D uring the latter part o f October and in November,
the total earning assets o f the New Y ork Reserve Bank
fluctuated about a fa irly constant level, and at $303,000,000 on November 26, were approxim ately $70,000,000

FEDERAL RESERVE AGENT AT NEW YORK
below the highest point reached in October. This decline
occurred in all form s of earning assets, including loans
to member banks, and holdings of purchased bills and
United States securities. Reflecting a larger demand fo r
currency and some reduction o f gold certificates in cir­
culation, the volume of Federal Reserve notes in circula­
tion increased and on November 26 was the largest since
early in the year.
M o n e y R a tes
The slightly firmer money conditions apparent dur­
ing the early fall became somewhat more marked during
November, notwithstanding the completion o f the har­
vesting and m ajor marketing o f the crops.
Rates
generally showed a further small advance, due to more
active business conditions, a larger absorption o f funds
by the stock market, and an increase in currency in cir­
culation.
In the bill market, firmer conditions were manifested
by higher rates and a substantial increase in sales to the
Reserve Bank. A t 2 % per cent, on purchases and 2 %
per cent, on sales of 90-day bills, dealers’ open market
rates at the end of the month were approximately y 2 of
1 per cent, above the summer low point. Yields offered
on Government short term securities also showed con­
siderable increases over the summer levels.
The open market rate on commercial paper advanced
about ^ o f 1 per cent, to 3 % per cent,, or slightly higher
than at any time since July. W hile demand in New
Y ork City decreased, supplies o f paper were reported
larger than at the end o f October when the amount out­
standing by 26 dealers stood practically at the high level
since 1920.
In the Stock Exchange money market rates fo r 60-90
day time loans advanced to 3-3y2 per cent., compared
with 2%-S per cent, during most of October, and 2y2% per cent, at the summer low point. Call loan re­
newals continued to be typically 2y2 per cent., but late
in the month the rate for new loans touched 4 per cent,
fo r the first time since May.

S e c u r it y M a r k e t s
A ccom panying the most active trading since 1901,
price averages o f railway and industrial stocks rose
after the election 6x/ 2 to 7 points, and in the latter part
of November stood at the highest levels in recent years.
In the case o f railway stocks, averages reached the
highest points since 1917, but industrial stocks, despite
large advances, remained generally about 10 points be­
low the 1919 high levels. On 11 days trading exceeded
2 million shares, and the number o f separate issues
traded in during the month was larger than ever before.
The bond market follow ing the election was also active
and strong, particularly in the railway group, and cor­
poration issues generally sold fo r a brief period at the
highest level since 1922. Later in the month, however,
as money conditions grew firmer, prices showed a reac­
tion which was especially marked in United States
securities.
The follow ing diagram shows the monthly average
movement o f 50 stocks, both railway and industrial com­
bined, since 1916, together with the movement o f bond
prices and the volume o f stock market transactions.
P R IC E

•1201---------------- ---------------- ------------------------ ----------------

2

■RATE

Average Prices of 50 Stocks, both Railway and Industrial, and
40 Bonds, and number of Shares Sold on the New York Stock
Exchange by Months. (November sales estimated)

The volume o f new securities offered declined during
the first part o f November, but again became large later
in the month, when the offerings included an issue o f
$100,000,000 25 year 7 per cent, bonds o f the French
Government, sold at a price to yield about i y 2 per cent.
Noteworthy among the offerings also were several
domestic railway common stock issues, which have been
rare in recent years, and the appearance o f which re­
flects increased confidence in railway securities on the
part o f investors.
F o r e ig n E x c h a n g e

Call Loan Renewal Rates, Open Market Rates for 4-6 Months
Commercial Paper and 90-Day Bankers Acceptances, and
the Federal Reserve Bank Rediscount Rate by Weeks.
(Latest figures, week of November 22)




Increased confidence with regard to European polit­
ical and economic conditions, further Am erican invest­
ment in foreign securities, and some transfer o f balances
overseas to take advantage o f higher money rates there
were m ajor factors in a rising market fo r the principal
exchanges except those o f France, Belgium, Italy, and
Austria.

MONTHLY REVIEW, DECEMBER I, 1924

4

Sterling advanced about 13 cents to $4.64, the
highest level since M ay 1923. Swedish exchange sold
slightly above par, Dutch guilders reached par fo r the
first time in five years, and Swiss francs were only
slightly below parity. Rupees continued to establish
new high levels since 1920, and substantial advances
occurred also in Spanish, Norwegian, and Danish cur­
rencies. Japanese exchange, on the other hand, after
a slight recovery, fell again practically to the October
low point.
On October 29 trading was begun in New Y ork in
the new German reichsmark at its par value o f 23.80
cents, and this quotation has since been maintained.
The new unit is officially reckoned as equivalent in
value to the form er gold mark, to one rentenmark, or
to one trillion paper marks.
The accom panying diagram, com paring a number of
leading exchanges in per cent, depreciation from par in
November this year with the depreciation existing last
November and at the 1920-1924 low points, indicates the
return of fou r exchanges to, or practically to, par. In
addition to those represented in the diagram, a number
of exchanges, including those o f Austria, Italy, H un­
gary, and Czecho-slovakia, have been substantially
stabilized, and currencies of Germany, Poland, Russia,
and Latvia have been revaluated and held at the new par.
LOW
1920r 1924

SWEDEN
CANADA
SWITZER LIND
HOLLAND
ENGLAND
ARGENTINA
JAPAN
SPAIN
INDIA
DENMARK
NORWAY
B R A Z IL
FRANCE
BELGIUM
ITALY
Foreign Exchange Rates in Per cent. Depreciation from Par in
November 1924, November 1923, and at the 1920-1924
Low Points Compared.

British shipments to this country have fallen off rapidly
and in October there were no such shipments fo r the
first time since January 1920.
F or the first three weeks o f November imports at the
port o f New Y ork alone totaled $14,000,000, represent­
ing about the same daily rate as in October. E xports
totaling $5,500,000, chiefly to England and South
America, were at a somewhat higher rate than in October.
The follow ing diagram indicates the balance o f trade in
gold fo r the entire country by months through October.

191 4

1915




1917

1916

1919

192.0

19£1

19£2

1 9 ? -3

192.4

(Latest figure,

F o r e ig n S h ip m e n t s o f U n it e d S t a t e s C u r r e n c y
The return flow o f United States currency from
circulation abroad continued in September and October
with but little diminution, according to reports to this
bank from 14 large banks in New Y ork City which ordi­
narily handle a large part o f this business. A feature o f
the movement lately, has been the large increase in the
receipts from Germany, accom panying the stabilization
o f German currency. Such receipts in October amounted
to over $5,000,000, or more than two-thirds the total,
compared with $2,300,000 in June, and negligible
amounts in the early months o f the year. The follow ­
ing table gives com parative figures o f shipments and
receipts for all countries since May 1923.

G o ld M o v e m e n t
Im ports o f gold, after declining to $6,600,000 in
September, increased in October to $20,000,000, due
chiefly to the receipt of $13,000,000 from the Netherlands. A s exports aggregated $4,000,000, the excess of
imports was $16,000,000, an amount larger than in
September, but otherwise the smallest since A p ril 1923.
October imports from the Netherlands brought the
total from that country fo r the first ten months o f the
year to $48,000,000, or the largest amount from any
country except Great Britain. D uring recent months

1916

United States Net Imports and Exports of Gold.
October.)

May9to3Dec
(monthly av.)
j an..1924...
^eb..............
June!'/.!;.;;;:
Aug.
oot.V.V.V.V.'.;
Total (1924)
__________

Shipments

Receipts

$3,645,000

$2,910,000

$5,694,000
6,989,000
2,095,000
940,000
292,000
681,000
199,000
117,000
251,000
247,000

$1,374,000
1,463,000
2,074,000
2,601,000
5,206,000
6,969,000
9,234,000
7,817,000
7,393,000
7,248,000

$4,320,000
5,526,000

$17,505,000

$51,379,000

$9,867,000

Net Shipments

Net Receipts

21,000
$1,661,000
4.914.000
6.288.000
9.035.000
7.700.000
7.142.000
7.001.000

$43,741,000

FEDERAL RESERVE AGENT AT NEW YORK
F o r e ig n T r a d e

F or the second successive month merchandise exports
in October increased by about $100,000,000, and at $527,000,000 were $128,000,000 above October last year and
the largest since January 1921. As imports increased
by only $23,000,000 to $310,000,000, the excess of exports
was $217,000,000, likewise the largest since 1921.
H eavy exports o f wheat and cotton continue to ac­
count in large part fo r the larger export totals. W heat
shipments increased $24,000,000 over September and
$58,000,000 over October last year, to the highest value
o f any month, excepting one, since 1920. Cotton exports
rose $25,000,000 over September, and were $7,000,000
greater than in October 1923, notwithstanding that
prices were lower this year. There was also a moderate
increase in the shipments o f m anufactured goods ready
fo r consumption.
Am ong the imports, those o f rubber increased 28 per
cent, in tonnage, and were near the largest in recent
years. Silk imports declined as com pared with Sep­
tember, but remained 21 per cent, larger than October
last 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
Most o f this bank’s available indexes o f distribution
and general business activity reflect a continued expan­
sion o f trade in October.
R ailway carloading o f revenue freight reached in the
week o f October 25 the largest total ever recorded, due
partly to new high levels reached in the movement o f
merchandise and miscellaneous freight, and in grain
and grain products. The accom panying diagram in­
dicates that the amount o f wheat marketed prior to
November 1 this year has been fa r in excess o f that
in any corresponding period in seven years. This heavy
marketing has been reflected also in the greatly increased
exports, the liquidation o f much farm indebtedness, and
a substantial gain of mail order sales in agricultural
districts.

518

481
OATS

32.3,

94

CORN

m)

\

238

\

.

m

CD
oo

WHEAT

94

1918

1919

1920

192.1

1922

1923

1924

Receipts of Wheat, Corn, and Oats at) 14 Interior Markets
between July 1 and November 1 of Seven Years.
(In Millions of Bushels)




Bank debits in 140 centers, excluding New Y ork City,
in October were the largest fo r any month since early
1920, when prices were much higher. Increases occurred
also in the indexes of factory employment and wholesale
trade in October, but the index o f department store
sales was somewhat lower. The follow ing table gives
this bank’s indexes o f business activity in percentages
o f the computed trend, after allowance fo r seasonal
variation and, where necessary, fo r price changes.
(Computed trend of past years=100 Per cent.)
1924

1923
Oct.

Aug.

Sept.

Oct.

Grain Exports .............................................
Panama canal traffic..................................

107
101
113
85
106
58
132

100
97
94
98
92
84
116

103
100
102
106
106
86
125

108
98
103
lllp
106p
201

Distribution to Consumer
Department store sales, Second Dist ict.
Chain store sales..........................................
Mail order sales............................................
Life insurance paid for...............................
Magazine advertising..................................
Newspaper advertising...............................

100
97
100
113
107
98

87
95
81
100
92
89

101
92
103
110
99
93

96
93
103
112
100

101
92

101
116

99
111

105p
105

98
95
101
111
103
104

98
109
96
106
89
103

92
103
100
108
90
87

94
92
101

Prim ary Distribution
Car loadings, merchandise and misc. . . .
Car loadings, other......................................
Wholesale trade, Second District.............

General Business Activity
Bank debits, outside of New York City.
Bank debits, New York City. .................
Velocity of bank deposits, outside of
New York City....................................
Velocity of bank deposits, New York City
Postal receipts..............................................
Employment, N. Y. State factories........
Business failures...........................................

91
105

p=Preliminary

P r o d u c tio n
The expansion o f industrial activity in progress since
midsummer continued during October and the first three
weeks o f November. Increases o f output occurred in
most o f the m ajor industries, but particularly in textile
and iron and steel manufacturing.
Cotton consumption in October rose nearly 100,000
bales to 91 per cent, o f normal, as measured by this
ban k’s index, and in November some o f the more im por­
tant mills announced preparations fo r resuming fu ll time
operations. In the woolen industry many o f the mills
reported fu ll time and in some cases overtime operations
in October, and this ban k ’s index o f woolen m ill activity
rose above the com puted trend, or normal, fo r the first
time since November 1923.
Iron and steel production increased 10 to 20 per cent,
in October to a point averaging about 50 per cent,
above the July low point, and unfilled orders o f the
Steel Corporation at the end o f the month showed the
third successive increase. D uring the first three weeks
o f November total purchases o f p ig iron were said to
have reached the unusually high figure o f 1,000,000 tons,
and more furnaces were put into blast.
Bituminous coal output in October amounting to
47.000.000 tons exceeded the September figure by
6.000.000 tons, and was the largest since January.
Cement production was only 2 per cent, below the high

MONTHLY REVIEW, DECEMBER 1, 1924

6

record reached in August, while copper mining was the
largest since 1918. In the automobile industry, the out­
put of passenger cars was slightly smaller than in
September, and nearly one-fourth smaller than a year
ago, but truck production was somewhat larger than in
September, and in both cases the indexes o f production
show a slight increase, after allowance fo r seasonal varia­
tion.
The table gives the index numbers o f production in
recent months in percentages of the com puted trend,
after allowance fo r seasonal variation.
(Computed trend of past years==100 Per cent.)

1923

Producers' Goods
Pig iron...........................................................
Steel ingots....................................................
Bituminous coal...........................................
Copper, U. S. mines....................................
Tin deliveries................................................
Zinc*...............................................................
Petroleum......................................................
Gas and fuel oil............................................
Cotton consumption...................................
Woolen mill activity*.................................
Cement...........................................................
Lumber...........................................................
Leather, sole.................................................

1924

Oct.

Aug.

Sept.

Oct.

98
101
99
106
98
73
142
99

65
82
88
104
85
66
124p
94
78

75
86
94
n ip
88
69

102
135
137

58
72
74
112
84
68
126
97
63
74
149
104

91

72

148
113
78

100
140

103
130
87
126
105
114

104
142
87
127
131
125

94

87r

9 i’

102p
147
123p
81p

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 for

77

139
137
104

95
88
96
107
12(5

107
90
98
95
159
171
113

84

78
97
116
168
104
87
75

91
82

107
183
110
92

83

89
91
118

78

p=Preliminary

122
99

ii.s ’
95

Per cent. Change from July to October

Industry

96p
83

120
124
104

r=Revised

E m p lo y m e n t a n d W a g e s
F actory employment in New Y ork State showed a
further increase o f 1.2 per cent, in the month ended
October 15, and on that date was nearly 5^2 per
cent, above the summer low point.
W hile average
weekly earnings of workers and total wage payments
in the State were somewhat smaller than in September,
due to the observance o f religious holidays and Columbus
Day, an upw ard tendency generally throughout the
country, due to less part time operations, was indicated
by increases o f 2 per cent, in per capita wage earnings,
and 3.7 per cent, in total wage payments reported by
the Federal Department o f Labor. The diagram below
indicates the recent changes in factory employment,
average weekly wage earnings, and total pay rolls o f
reporting firms in New Y ork State.
The October increase in factory employment in this
State was due partly to seasonal activity in the produc­
tion of holiday articles, such as confectionery, neckwear,




and leather goods, but was caused also by further gains
in working forces o f basic industries, such as the metals
and textiles. In food products, clothing, and some
branches o f the building materials industries, on the
other hand, employment showed a seasonal decrease.
The follow ing table indicates the changes in employment
conditions in a number o f basic industries o f the State
since the summer low point.

119

110
118

105p
161p
S4p
IlOp
114
n ip
86
78
102

Changes in Employment, in Total Wage Payments, and Average
Weekly Wage Earnings in New York State Factories. (June
1914 = 100 Per cent. Latest figures, October.)

Automobiles................... ......................................................
Machinery..............................................................................
Cotton goods.........................................................................
Woolens and worsteds................................... .....................
Knit goods................................................. ...........................
Shoes.......................................................................................
Men’s clothing......................................................................
Women’s clothing................................................................
Carpets and rugs..................................................................
Cement...................................................................................
Brick.......................................................................................

Number
of
Employees
+34
+17
+ 3
+81

Total
Wage
Payments

+10

+ 49
+ 27
+
+106
+ 13
+ 29
+
9
— 7

4

+ 14
+ 17
—
— 37

+19
+ 5
— 1
+63
+ 7
+ 7
_
— 29

1

+102
10

Notwithstanding these increases and some further
gains in the first part o f November, factory employment
remained substantially below the high levels o f the
early months o f the year, and State employment offices
continue to report some surplus o f labor, chiefly among
unskilled and clerical workers, but, in some localities,
among skilled workers as well. W hile employment in
building and road construction has been unusually well
maintained, due to the m ild weather, com pletion o f
fru it picking released considerable labor from the farms.
The prevailing level o f wage rates remains little
changed, although scattered instances o f decreases con­
tinue to occur, principally in the metals and textile in­
dustries. In New England, wage reductions by textile
mills, accom panying the resumption o f more active
operations were a frequent, though not general, occur­
rence.

FEDERAL RESERVE AGENT AT NEW YORK

7

B u ild in g

M easured either b y perm its issued or contracts actually
placed, the value of new building planned continued at
high levels in October. P erm its granted in 3 3 8 cities
were 1 6 per cent, large r than in Septem ber and 3 per
cent, above October last year, while contracts aw arded
gained 19 per cent, over Septem ber and were 1 4 per cent,
greater than a y e a r ago.
Com parison of the figures b y districts, however, re­
veals considerable change recently in the sections of the
country contributing most to continued expansion.
W hereas du ring the early p a rt of the y e a r the N ew
Y o rk district showed considerably larger gains over
1 9 2 3 in contracts aw arded than did the country as a
whole, the reverse has been true in the past fe w months.
The following table based on the figures of the F . W .
Dodge Corporation reflects these tendencies.

Per cent. Increase 1924 over 1923
Jan. Feb. Mar. Apr. M ay June July Aug.
New York State and
Northern New Jersey.
All reporting districts...

69
23

87
7

77
15

27
79
19 — 13

8
5

7
10

6
19

Sept. Oct.
9
19

1
14

In the N ew Y o rk district, the October contracts, while
only sligh tly above the un usually large total of October
19 2 3 , were 3 1 per cent, large r than in Septem ber and
the largest since M ay. B oth in the N ew Y o rk district,
and fo r the country, a considerable facto r in the larger
contracts in October w as increased totals fo r public
works.

Dollar Value of October Sales
(October 1923=100 Per cent.)
Com m odity
1920

1921

1923

1924

Machine tools..................................

85
138
136
80
65
65
65
104
94
82
89
93
F62
r 86
169

79
80
73
75
78
81
76
85
72
70
84
61
61
106
33

103
105
96
85
93
88
98
93
85
87
76
107
'1 83
97
116

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

144
115
102
98
97
86
108
93
93
93
98
99
82
91
85

Weighted Average.....................

86

77

90

100

93

(a) C o tto n ...................................
(b) Silk........................................

(a) M en’s ....................................
(6) W om en’s dresses................
(c) W om en’s coats and su its ..

Chain Store Sales
October sales b y reporting chain store system s were
the largest since Decem ber 1 9 2 3 and 1 4 per cent, larger
than in October last year, due p a rtly to the opening of
new stores. The volume of sales per store, however,
also increased and w as sligh tly larger than a y e a r pre­
vious fo r the first time since A p r il. Th is w as due to
increases in the sales of 10-cen t and gro cery stores. In
other reporting lines, sales per store rem ained below
last year, although, except in shoe stores, the percentage
of decrease w as sm aller than has recently been the rule.
The follow ing table indicates the changes in chain store
trade in October, as com pared w ith October of previous
years.

Type of Store

W holesale Trade
W holesale trade in this district in October continued
at about the same level as in Septem ber but w as sm aller
than in October 19 2 3 , due to un usually large sales last
y e a r in some lines, p a rticu la rly clothing. Th is b a n k ’s
index of trade, a fte r allowance fo r seasonal variation
and price changes, has advanced steadily since Ju n e ,
and in October stood at 1 0 3 per cent, of the computed
trend, or normal.
Sales of w om en’s coats and suits were somewhat
sm aller than in Septem ber, due possibly to the m ild
weather, and much below the large totals of last year,
w hile business in shoes, dresses, and m en ’s clothing was
also sm aller than a y e a r ago. In the ease of drugs, sales
were below last October, but were otherwise the largest
ever recorded, and trade in hardw are and machine tools
showed an im provem ent over recent months.
Sales of diamonds, stationery, and silk goods con­
tinued above last year, and those of je w e lry were
sligh tly larger than in an y corresponding month since
19 20 . The follow ing table gives com parative figures fo r
October sales w ith those of previous years.




1922

Ten cent...................

Per cent.
Per cent.
Change
Dollar Value of October Sales
Change
in Number (October 1923=100 Per cent.)
in Sales
of Stores
per store
October 1923
October 1923
to
to
October 1924 1920 1921 1922 1923 1924 October 1924
+ 1 6 .0
+ 1 6 .7
+ 8 .1
+ 8 .6
+ 4 .3
+ 1 .7
+ 2 0 .6

74
69
73
81
109
92
103

70
69
78
76
100
91
94

80
77
86
81
92
92
87

100
100
100
100
100
100
100

118
114
113
107
104
102
101

+ 4 .4 r 'I i
— 2 .6
+ 4 .4
— 1.3
— 0 .3
— 0 .2
— 16.5
’

+ 1 3 .8

77

76

83

100

114

+ 0 .5

Departm ent Store Sales
October sales of departm ent and apparel stores in this
district were 3 per cent, larger than in October last
year, whereas in Septem ber they were 1 2 per cent,
larger, and in A u g u s t 7 per cent, sm aller than a yea r
previous. Sales of N ew ark and B rid gep o rt departm ent
stores showed considerable increases, and sm aller gains
occurred in the sales of reporting stores in Buffalo,
Rochester, and N ew Y o rk C ity . In Syracu se and other
localities not shown separately, October sales were
sligh tly below those of a y e a r previous. A substantial
increase in the sales of the large apparel stores w as due
largely to an expansion of store facilities.

MONTHLY REVIEW, DECEMBER 1, 1924
F u rn itu re and cotton goods showed the largest in­
creases in sales over a y e a r ago, but sm aller gains ap ­
peared in home furnishings, hosiery, m en ’s clothing,
shoes, w om en’s ready-to-w ear accessories, and woolen
goods. Sales of wom en’s clothing and silk goods were
somewhat sm aller than in October 19 2 3 . The average
amount of each sales check w as $3.2 6 , com pared with
$ 3 .2 9 last year.

Net Sales during October
(October 1923=100
Per cent.)

1920 1921 1922 1923 1924 1920 1921 1922 1923 1924
New Y o r k ..................................
B uffalo........................................
N ewark.......................................
R ochester...................................
Syracuse.....................................
Bridgeport..................................
Elsewhere, 2d D ist...................
A pparel.......................................
All stores....................... ..
M ail order houses....................

Furniture................................................
C otton good s.........................................
Home furnishings.................................
H osiery...................................................
Mens’ and B oys’ w ear........................
Shoes.................................................
W om en’s ready-to-wear accessories.
W oolen goods........................................
W om en’s and Misses’ ready-to-wear
Silk good s...............................................
M iscellaneous........................................

Stocks of goods on hand on Novem ber 1 w ere 4 per
cent, la rg e r than a y e a r ago, p a rtly due to the retard ­
in g effect of m ild w eather on sales of apparel, and to
the store expansion previously referred to. E x clu d in g
the apparel stores, stocks of merchandise were little
changed from a y e a r ago. Th e percentage of outstand­
in g orders fo r m erchandise to total purchases of the
stores du rin g the previous y e a r shows a seasonal decline
from 8.2 per cent, on October 1 to 6.8 per cent, on
Novem ber 1 , a figure p ra ctica lly the same as that on
November 1 , 1 9 2 3 .
M ail order sales increased about one-third from Se p ­
tember to October, or approxim ately the usual seasonal
amount, and were 6 per cent, above October last year.
Th is b a n k ’s index of m ail order sales, in w hich allow ­
ance is made fo r seasonal variation and price changes,
w as 3 per cent, above normal, as determined b y the trend
of past years.
PERCENT.




Stock on hand N ov. 1
(N ov. 1, 1923=100
Per cent.)

84
87
87
88
82
SO
86
90
96
89
108
95
98 104
83
89
85
76

87
66

90
96
88
92
92
98
94
95

100
100
100
100
100
100
100
100

101 104
90
102 115 100
89
105 107
88
103 120
92
99 138
105 11S 100
98
96
98
81
114 89

91
82

100
100

103
106

105

90

87 100
92 100
86 100
85 100
90 100
100 100
89 100
87 100
88

100
106
105
101
100
99
90
137

100 104

D epartm ent Store Sales Since 1900
Th rough the courtesy of five large departm ent stores
located in N ew Y o rk or nearby cities this bank has been
able to secure a continuous annual record of dep art­
ment store sales extending back to 1900. The figures
supplied include the sales of five stores from 1 9 1 1 to
19 2 4 , of fo u r stores from 19 0 2 to 19 10 , and of three
stores fo r 19 00 and 19 0 1 . These figures adjusted fo r
price changes and reduced to percentages of 19 2 0 sales,
have been plotted in the accom panying diagram , together
with the sales of the 64 departm ent stores rep orting in
this district since 1 9 1 9 , and grow th of population in
N ew Y o rk C ity over the 24 years.
In general, it is clear that the long term trend of de­
partm ent store grow th has conformed fa ir ly closely to
the rate of grow th of the population, w hich has ran ged
from 2 to 4 per cent, a year. W h ile the period of gen­
e rally increasing p rosperity and risin g w ages extending
from 19 0 0 to 19 0 7 witnessed a relatively ra p id grow th in
departm ent store business, this w as followed b y a long
period d u rin g which sales fe ll below the population
trend.
B egin n in g again in 1 9 1 9 , and corresponding
w ith a period of high real wages, departm ent store trade
has experienced another v e ry ra p id expansion, ap pro x­
im ating 8 per cent, a y e a r in this district. I t is notice­
able, however, that d u rin g the past two yea rs the curve
of this increase has tended to flatten out somewhat.