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MONTHLY REVIEW of Credit and Business Conditions S e c o n d Federal Reserve 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 Y ork Business Conditions in the United States RODUCTION of basic commodities showed further decline in December and wholesale prices receded slightly. Christmas trade was somewhat larger than a year ago. Changes in the banking situation in January reflected chiefly an unusually large return flow of currency after the holiday season. P P r o d u c t io n February 1, 1924 T rade Railroad shipments continued to decrease during De cember and were slightly less than in December 1922. Loadings of coal and grain were smaller than a year ago, while loadings of miscellaneous merchandise and live stock were in larger volume. The volume of wholesale trade showed more than the usual seasonal decrease and was at about the same level as a year ago. Sales of meat, hardware, and drugs were larger than in December 1922, while sales of dry goods and shoes were smaller. Retail trade, though larger in December 1923 than in any other month on record, did not show as large an increase over November as is usual at the Christmas season. The index of production in basic industries declined 4 per cent, in December to the low point of the year. The decrease for the month reflected principally a large reduction in consumption of cotton, but also reduced operations in the woolen, petroleum, sugar, and lumber industries. Production of pig iron and anthracite coal increased. The Federal Reserve Board’s index of factory employment decreased 1 per cent, and was 4 per cent, lower than in the spring. The largest decreases were at plants manufacturing food products and railroad equip ment. Building contract awards in December were smaller than in November, but almost 25 per cent, larger than a year ago. Wholesale prices, according to the index of the Bureau of Labor Statistics, decreased less than 1 per cent, during December. The chief reductions occurred in prices of fuel and building materials, while prices of clothing and metals increased, and prices of farm products remained unchanged. During the first two weeks of January prices of corn, wheat, pig iron, petroleum, and lumber advanced, while quotations on cotton, sugar, and copper were lower. Index of 22 Basic Commodities corrected for seasonal variation (1919=100 Per Cent. Latest figure December) Index of U. S. Bureau of Labor Statistics (1913 = 100 Per cent, base adopted by Bureau. Latest figure December) P r ic e s MONTHLY REVIEW, FEBRUARY 1, 1924 2 WLLICN5 OF DOLLARS BiLUOKS OF OOLLAJO Reserve Bank Credit— Weekly Figures for 12 Federal Reserve Banks. (Latest figure January 23) B a n k C r e d it The volume of credit extended by the Federal Reserve Banks showed the usual sharp increase during the latter part of December in response to holiday requirements for credit and currency and financial settlements falling due on the first of January. With the passing of the seasonal demands there was an unusually rapid return flow of currency to the Reserve Banks, reflected both in an increase of reserves and a decrease of Federal Reserve note circulation. Member banks used the currency re turned from circulation to reduce their borrowings, with the consequence that the earning assets of the Federal Reserve Banks declined by $360,000,000 during the four weeks following Christmas, or approximately $150,000,000 more than during the corresponding period of 1923. At the middle of January the volume of Reserve Bank credit outstanding was below $1,000,000,000 for the first time since early in 1918. Loans made largely for commercial purposes by mem ber banks in principal cities declined between Decem ber 12 and January 16 to a point $264,000,000 lower than at the peak in October and to about the level of July 1923. This decrease in loans, which was general through out the country, was accompanied by a movement of funds to the financial centers and an increase in loans on securities, principally in New York. Easier money conditions in January were reflected in a further slight decline in the rate on prime commercial paper to 4 % per cent., compared with 4% to 5 per cent, in December, and in increased activity in the investment markets. Member Bank Credit— Weekly Figures for Member Banks in 101 Leading Cities. (Latest figure January 16) this season, due apparently to the lessened activity in trade and industry, which has been indicated not only by statistics of production and distribution of goods, and factory employment, but also by the continued decline in the volume of commercial borrowing at banks and the unusually large decrease since the first of the year in the amount of currency in circulation. Loans of reporting member banks in the Second Dis trict, made largely for commercial purposes, declined in the last three weeks of December $48,000,000 to the lowest total since the end of July, and showed only a slight increase in the first two weeks of January. As shown by the accompanying diagram, the decline in such loans had been continuous, both in this city and for the country as a whole, since October. Bank investments show comparatively little change, but there have been substantial increases in loans on stocks and bonds. Loans largely for Commercial purposes and Total Investments of Reporting Member Banks in New York City Loans largely for Commercial purposes and Total Invest ments of Reporting Member Banks in the United States Banking Conditions, Second District Passing of the holiday trade requirements for credit and currency, movement of funds toward this center, and distribution of January 1 interest and dividends were followed by an accumulation of funds in the New York money market in the first three weeks of January. This return flow of funds was larger than is usual at Between January 2 and January 24 total earning assets of the Federal Reserve Bank of New York de clined more than $174,000,000 to a total of $171,000,000. On January 25 there was a further decline to $125,000,000, a new low since 1917 and $143,000,000 lower than on December 1 before the usual increases to pro vide funds for Christmas trade and first-of-the-year FEDERAL RESERVE AGENT AT NEW YORK settlements. The accompanying diagram showing total earning assets of this bank by days from the iirst of December to January 24, inclusive, indicates the rapid ity with which the volume of Reserve Bank credit wras adjusted to rapidly changing business and financial requirements. As a result of this elasticity the yearend demands were met without marked stringency in the money market, and the accumulation of funds in early January was accompanied by only moderate fur ther net declines in prevailing money rates. A IV \ / pA j E AR NING ASSETS Y/' Kf TO TAL D IS C O U N T S / ........... j V \ V ' PURCHASED BILLS U.S.SECURITIES & DECEMBER 1 9 2 3 JA N U A R Y 1 9 2 /4 - Total Earning Assets, Federal Reserve Bank of New York, by Days from December 1 to January 24 inclusive, Special Certificates excluded Money Rates Open market rates for commercial paper continued in January the gradual decline begun in October and sales of prime paper were chiefly at 4 % per cent, as com pared with 4 % to 5 per cent, in December. New York City banks were limited buyers, but demand in the interior was sufficient to offset a moderate seasonal in crease in the amount of paper offered. During Decem ber the outstanding paper of 26 reporting dealers had declined $28,377,000 to $768,765,000, or the lowest since December 1922. The market for short term Government securities was also stronger, due both to an increased demand and to a marked scarcity in the floating supply of these issues. Prices of all maturities tended upward and by January 26 showed advances wThich, in the case of the issues maturing in from 4 to 6 months, reduced the yield from slightly under 4 per cent, to 3.69 per cent., the lowest quotation since February 1923. Easier money conditions, together with a broader de mand and a somewhat decreased supply of new bills were reflected in a reduction of % th to 4 per cent, in dealers’ offering rates for 60-90 day bills, the first change for these maturities since April. Stock market time money was easier and the prevail ing rate declined from 5 to 4 ^ -4 % per cent. Stock market call money, after the first few days of the month, tended lower and following the 17th renewals declined to 4 per cent, for the longest period since January a year ago. Acceptances Outstanding During recent months the large volume of dollar ac ceptances created against cotton has resulted in a con siderable increase in the total amount of acceptances outstanding. According to an estimate made by this bank, the total of bankers and foreign trade bills circu lating in the open market at the close of the year was approximately $650,000,000. This represents an increase of about $50,000,000 compared with the end of 1922, when the total was about $600,000,000. The following table shows the estimated amount of such acceptances outstanding at the end of each year since 1916. End of Estimated Amount Outstanding 1916................................................................ 1917................................................................ 1918................................................................ 1919................................................................ 1920................................................................ 1921................................................................ 1922................................................................ 1923................................................................ $250,000,000 450.000.000 750.000.000 1,000,000,000 1,000,000.000 600.000.000 600,000,000 650,000,000 Security Markets Easier money conditions in January were accom panied by a broad and active bond market. Representa tive price averages of high grade corporation bonds rose over a point during the first three weeks of the month to the highest level since the spring of 1923, and several of the active Liberty issues sold at the highest prices since the fall of 1922. Foreign issues, on the other hand, showed little advance. The volume of new securities offered increased in January, but did not reach the totals of January a year ago, which were the largest ever reported. Domestic corporation issues in particular were in smaller volume. Farm loan issues continued large, due to the offering of $60,000,000 4 % Per cent. Federal Land Bank bonds, while foreign issues included the offering of $40,000,000 6 per cent. Argentine Government bonds, for the pur pose of funding short term notes. Dealings in the stock market continued in large vol ume in January. Price averages of industrial stocks rose to within 3 to 5 points of the March high point of last year, and railroad stock averages recovered most of the loss sustained in December. Foreign Shipments of United States Currency Since May this bank has been receiving, from the member banks in this district which are the principal shippers of currency, monthly reports of shipments of United States currency to foreign countries and receipts from foreign countries. A summary of the reports for the 8 months ended December 31, segregated by coun tries, is given in the following table and shows ship ments amounting to $29,000,000, as against total re 4 M O N THLY REVIEW , FEBRU ARY 1, 1924 ceipts of nearly $22,500,000, leaving net shipments for the 8 months period of about $6,500,000. In addition to direct shipments reported, banks in this district for warded $7,745,000 to Cuba by means of wire transfer through the Reserve Banks of New York and Atlanta. It will be seen that the bulk of shipments has gone to Europe, and that shipments to Europe have exceeded receipts from Europe by about $18,500,000. The largest receipts of currency, on the other hand, have been from Caribbean countries, particularly Cuba, and receipts from these countries have considerably exceeded exports to them, a difference largely accounted for by shipments through the Atlanta bank. Exports to Imports from Net Exports Austria............................... Belgium ............................. Bulgaria............................. D anzig............................... Denm ark........................... E ngland............................. E sthon ia............................ Finland ............................ France................................ G erm any........................... G reece................................ H olland.............................. $1,254,900 20,000 $1,254,900 Latvia .............................. Lithuania.......................... Poland................................ Portugal............................ Saarbrucken..................... S cotland............................ S pain.................................. Sweden ............................ Switzerland....................... T u rk ev............................... 11,975.000 6,000 125,500 C ountry T otal E uropean C o u n tr ies ............... Cuba ............................ Porto R ic o ........................ All other Caribbean countries........................ 414,000 10,000 2,715,000 500.000 22,000 250.000 5,851,485 1,615,000 ‘ 10,000 $47,600 3,566 37,178 92,500 1,028,945 766,132 634,752 586,357 815,238 763,898 N et Imports $27,600 3,566 376,822 1,686,055 500,000 22,000 Foreign Trade 516,132 5,216,733 586,357 799,762 763,898 11,975,000 6,000 125,500 136,200 136,200 ’ 10,000 237,997 159,150 55,660 1,194,800 63,349 109,340 $25,299,085 S 6,623,322 $18,675,763 $ 1,475,000 1,088,000 $ 6,934,000 1,639,611 $5,459,000 551,611 5,200 165.000 360.000 237,997 158,950 834*800 63,349 903,900 4,862,249 3,958,349 T otal C aribbean C o u n tr ie s ............... $ 3,466,900 A ll other C ountries $ 316,000 $13,435,860 $ 2,421,085 $ 9,968,960 $ 2,105,085 G rand T otal A l i C o u n tr ie s ............... $22,480,267 $29,081,985 $ 6,601,718 Foreign Exchange Sterling, after closing the year at $4.32, or 40 cents below the February high point, declined by January 21 to $4.21, the lowest rate in two years. French francs were weak and broke % of a cent to a new low point of 41/4 cents, from which there was partial recovery, following an advance in the discount rate of the Bank of France from 5 to 6 per cent. The Italian lira re mained relatively steady and was temporarily quoted above the franc. Japanese rates fell to less than 44 cents on January 12, a loss of 5 cents since the earthquake in September, but recovered slightly during the next week. Exchange on Argentina and Brazil showed a rising tendency, probably reflecting the commencement of the export season in those countries. The following diagram com pares the movements of the leading exchanges by months since 1919. Depreciation of Foreign Exchange Rates from Par Value ' 82,500 Exports of merchandise during December totaling $425,000,000 were $25,000,000 larger than in November and the largest for any month since February 1921. Imports declined slightly to $285,000,000, so that there was a net export balance of $140,000,000, the largest since October 1921. In December, as in the preceding three months, cotton shipments were a large factor in increased exports. Since the beginning of the cotton marketing year August 1, shipments have exceeded those of last year 14 per cent, in quantity and 47 per cent, in value. The total exports for the entire year 1923 amounted to $4,165,000,000, or $333,000,000 more than in 1922. As imports increased nearly $680,000,000 to $3,789,000,000, the net export balance was only about half that of 1922 and the smallest since 1914. The following table com pares the figures by years since 1913 and shows also the corresponding figures for Great Britain, which converted into dollars at average rates of exchange during each year, show an increase in the import balance during 1923. (In millions of dollars) U nited States Year 1 91 3 .................... 1914..................... 1915..................... 1916..................... 1917..................... 1918..................... 1919..................... 1920..................... 1921..................... 1922..................... 1923..................... G reat B rita in Exports Imports Excess Exports Exports Im ports Excess Imports $2,484 2,114 3.555 5,483 6,234 6,149 7,920 8,228 4,485 3,832 4,165 $1,793 1,789 1,779 2,392 2,952 3,031 3,904 5,278 2,509 3,113 3,789 $ 691 325 1,776 3,091 3,282 3,118 4,016 2,950 1,976 719 376 $3,088 2,592 2,294 2,873 2,841 2,531 4,266 5,692 3,114 3,643 4,051 $3,739 3,431 4,038 4,513 5,066 6,258 7,201 7,064 4,172 4,439 5,020 $ 651 839 1,744 1,640 2,225 3,727 2,935 1,372 1,058 796 969 Reflecting a larger movement of freight during the latter part of the year, ocean freight rates were ad vanced in January an average of 25 per cent, on the FEDERAL RESERVE AGENT AT NEW YORK leading trade routes. This continued the upward tend ency begun last August when the general level of ocean rates, as computed by the Federal Reserve Board, was 80 per cent: lower than in January 1920. Gold Movement Gold amounting to $32,641,000 was imported during December, of which nearly half was from England and the remainder largely from France, Argentina, the Netherlands, and Canada. The receipt of $5,000,000 from Argentina was the largest single shipment from that country for several years. Gold exports, which totaled about $712,000, were almost entirely to Mexico, Hongkong, and Canada. For the year 1923 net gold imports amounted to $294,000,000. The following table shows by countries the gold movement during the past two years. Imports continued large from England and France, showed a marked increase from Germany and Canada, but de creased sharply from Scandinavian countries. Export totals showed a decline in shipments to Canada, but an increase in the movement to India, which country also took nearly £19,000,000 from England during the year. (000 omitted) Employment and Wages Decreases in the food products, clothing, and metal products industries caused a further decline of 1 per cent, in factory employment in New York State during the month ended December 15 to a point 5 per cent, under the March high level for the year and 1 per cent, below December 1922. Average weekly earnings of factory operatives in New York State increased 1 per cent, in December to $27.97, or only 3 per cent, below the maximum level of 1920. This increase occurred chiefly outside New York City and was probably partly due to release of some of the lower paid workers during the month. In general, there was little change in wage rates. Exports Imports C ountry 1922 1923 England................................. France.................................... Germ any............................... Sweden.................................. N orw ay.................................. Denmark............................... Netherlands.......................... Canada.................................. M exico................................... C olom bia............................... British India......................... China and H ongkong......... All oth er................................ $121,732 27,043 35 32,886 8,424 17,770 9,958 10,372 5,913 6,848 $147,112 19,036 49,552 5 * 8,953 25,236 T o t a l ................................. $275,170 * 3,562 13,292 49,375 6,581 4,452 1922 $ 21 1923 $ 138 2,660 “ '78 * 5,907 23,842 ‘ ” l9 21,624 4,841 500 4,445 3,933 1,414 * ’ *90 1,705 4,706 700 14,637 2,488 1,519 $322,716 $36,875 $28,643 Prices Due partly to further recessions in fuel and lighting and building materials, the index of wholesale prices of the Department of Labor declined an additional 1 per cent, in December to 51 per cent, above the 1913 level and 5 per cent, below the spring high point. Cloths and clothing rose 1 per cent., due largely to increases in cotton and wool. Other group indexes were stationary or showed only fractional changes. During the four weeks ended January 26, this bank’s index of prices of 20 basic commodities advanced 2 per cent., reflecting chiefly a sharp advance in corn to above 78 cents at Chicago, the highest price of the season, higher lumber prices, and further advances in crude oil in various fields. Cotton, on the other hand, declined nearly 3 cents to 33% cents, and there were declines also in prices of copper, sugar, rubber, and tobacco. The Department of Labor ’s quarterly index of the cost of living for 32 cities in the United States for December was .7 per cent, higher than in September, largely because of advances in the cost of food, shelter, and fuel and lighting. Compared with December 1922, the increase in living costs was 2.2 per cent. For New York City alone the increase in living costs during the quarter amounted to 1.1 per cent., and the advance over a year previous was 1.8 per cent. Production A decline in the composite production index of the Federal Reserve Board, noted on the first page, was accompanied by a preponderance of declines in this bank’s indexes of production in individual lines. The decline was particularly marked in cotton con sumption in mills, which decreased 70,000 bales to the smallest amount since last July. This was reflected in a decrease in the index of consumption from 96 to 82 per cent, of the computed trend. The production of steel ingots declined an additional 9 per cent, to the lowest point since the fall of 1922, but pig iron output was slightly larger and unfilled orders of the United States Steel Corporation increased 76,755 tons, following a prolonged decline from the March high point of last year. The output of automobiles continued to show a sea sonal decline, but was 33 per cent, larger than the December figure of last year. Mining of bituminous coal showed a further decrease and at slightly over 40,000,000 tons was the smallest since September 1922. Output of anthracite coal, on the other hand, increased slightly. The following table shows this bank ’s indexes of produc tion as percentages of the computed trend of past years and with allowance made for seasonal variation. MONTHLY REVIEW, FEBRUARY 1, 1924 (Computed trend of i tyears = 100 Per cent.) 1923 Sept. Oct. Producers' Goods Pig iron ..................................................... Steel ingots.............................................. Bituminous coa l...................................... Copper, U. S. m in e................................ Leather, sole............................................ Tin deliveries.......................................... P etroleum ................................................. C otton consum ption.............................. W oolen mill a ctivity**......................... Z in c**................................................... C em en t..................................................... L um ber..................................................... Consumers’ Goods Anthracite co a l....................................... Wheat Hour......... .................................... Cattle slaughtered.................................. Calvas slaughtered................................. Sheep slaughtered.................................. Hogs sla ugh tered.................................... Sugar meltings, U. S. p orts................. Paper, to ta l............................................. Tobacco, consum ption.......................... Gasoline.................................................... Automobile, a ll....................................... Automobile, passenger.......................... Automobile, truck.................................. Automobile, tires**............................... Boots and shoes...................................... 102 98 100 101 99 99 102 106 Average for 90 80 144 91 98 142 94 90 90 94 107 92 150 145 96 136 125 135 137 148 136 35 109 98 118 76 146 95 104 90 95 94 142 75 130 116 93 90 106 161 170 125 119 88p 88 100 102 101 68 73 77 100 146 77 139 102 137 85 90 ww 93 107 I 107 140 159 149 ! 171 113 104 107 126 90 1923 Nov. Dec. 93 108 106 84 89 104 103p 99 83 97 91 107 134P 137 p 82 96 92p 107p 81 77 153 142 126* 97 96 108 103* 130* 87* 128* 107 96 90 81 i.52 153p 146p '74 p 100 90 112: 143 149 118 136* 99p 1922 74 87 77 67 91 90 113 92 94 58 116 107 54 106 97 125 83 104 133 103 89 103 101 104 87 117 93 the available indexes for recent months in percentages of the computed trend, allowance being made for sea sonal variation. Averages for the entire year are in most cases substantially higher than in 1922. Building Building contracts awarded in 27 northeastern States declined 7 per cent, in December to $267,900,000, due mainly to declines in the New York and central western districts, but were almost 25 per cent, larger than in December 1922, according to reports of the F. W . Dodge Corporation. For the entire year contract awards in these States totaled $3,500,000,000, or 5 per cent, more than in 1922. Building costs, as computed by this bank, however, aver aged nearly 12 per cent, higher than in 1922, and the volume of building represented by the contracts awarded was probably slightly smaller than in 1922. * Average of 11 months. P Preliminary. ** Seasonal variation not allowed for Wholesale Trade Indexes of Business Activity In December as in November this bank’s indexes of the distribution of goods and general business activity showed slightly more decreases than increases. Among the indexes showing decreases were those for railway traffic, wholesale trade, advertising, and factory employ ment. The indexes for department store and mail order trade and for bank debits outside of New York were unchanged, while those for exports, life insurance writ ten, chain store sales, building permits, and bank debits in New York City, increased. The following table shows (Computed trend of past years = 100 Per cent.) 1923 Sept. Oct. Average Nov. Dec. 1923 1922 Primary Distribution Car loadings, mdse, and m isc................ Car loadings, oth er.................................. Wholesale trade, Second D istrict......... E xports....................................................... Im ports....................................................... Grain exports............................................ 103 106 100 95 94 86 107 101 116 85 106 58 105 108 103 83 100 42 103 103 91 87p 96p 53 106 113 106 86 J10 89 101 91 103 85 96 164 Distribution to Consumer Department store sales, Second District Chain store sales...................................... Mail order sales........................................ Life insurance written............................. Amusement receipts................................ Magazine advertising.............................. Newspaper advertising............................ 97 96 91 112 84 96 90 100 97 100 113 104 98 92 96 97 85 113 108 98 93 96 103 85 120 98 99 93 107 99* 95 93 101 99 78 100 89 82 95 General Business Activity Bank debits, outside New York C ity r “ “ New York C it y ................ Electric pow er........................................... Postal receipts.......................................... Building perm its...................................... Business failures r .................................... Employment, N. Y. State factories. . . 95 93 108 97 127 83 101 101 92 lllr 101 159 104 103 100 100 107p 102 153 106 101 100 102 104 102 109* 102 143 94 102 101 110 99 100 132 120 92 * Average of eleven months, r Revised, p Preliminary. ’ 93 90 102 155 101 99 Wholesale trade in this district showed a further de cline in December, and this bank’s weighted index of the sales of 164 dealers in 11 principal lines was 5 per cent, below that of December a year ago, compared with a decrease of 2 per cent, in November and an increase of 11 per cent, in October. Allowing for seasonal varia tion and price changes, the index was approximately 9 per cent, below the computed trend of past years. The accompanying diagram shows the course of this index compared with an index of railway car loadings of merchandise and miscellaneous freight, also expressed in percentages of the computed trend. PER CENT. Wholesale Trade in the Second Federal Reserve District and Car Loadings of Merchandise and Miscellaneous Freight (Computed trend rr: 100 Per cent.) FEDERAL RESERVE AGENT AT NEW YORK Tlie smaller sales in December, as compared with December 1922, were due chiefly to a sharp decline in the sales of groceries, and to smaller sales of shoes and dry goods, which were also relatively light in November. Sales of women’s clothing were substantially higher than a year ago, while sales of hardware continued to show consistent gains. The total sales of dealers for the entire year were 15 per cent, larger than in 1922 but were considerably less in dollar value than in 1919 and 1920 when prices were higher. The largest gains were shown in machine tools, clothing, dry goods, diamonds, and hardware. The following table shows the detailed figures for De cember sales and for the entire year 1923, as compared with the previous years. C om m odity D ecember S ales D ollar Value (December 1922=100 Per cent.) A nnual Sales D ollar Value (Year 1922=100 Per cent.) I Diam onds............ Hardware............. C lothin g............... (a) M en’s .......... (6) W om en’s dresses............ (c) W om en’s coats & suits.. Stationery........... Machine tools. . . D rugs................... D ry good s ........... (a) Cotton goods (bS Silk good s. . . Groceries............. Shoes..................... Jewelry............... Total (weighted) 1919 1920 1921 1922 1923 1919 1920 1921 1922 1923 180 132 149 172 75 97 85 76 72 83 85 84 100 100 100 100 151 117 108 90 260 120 101 97 152 137 117 132 68 93 92 90 100 100 100 100 122 120 120 123 148 91 101 100 106 102 104 93 100 110 120 116 233 93 175 148 201 135 174 138 90 113 95 76 86 82 90 93 89 70 72 83 35 82 98 100 96 79 90 65 100 100 100 100 100 100 100 100 100 100 135 104 100 99 97 94 101 88 87 82 104 115 293 94 124 104 144 130 184 194 109 143 314 98 125 117 133 138 149 180 93 102 77 90 104 99 110 96 113 88 100 100 100 100 100 100 100 100 100 100 125 111 182 111 120 115 124 107 108 115 146 89 85 100 9r> 122 129 97 I[ Stocks of goods on hand January 1 were 9 per cent, larger than a year ago, compared with an increase of 10 per cent, on December 1 and of 14 per cent, on November 1. The table below compares December sales and stocks as of January 1 with the figures of previous years. A ll dept, stores. . . New Y o r k ........... R ochester............. B ridgeport........... Elsewhere, 2d Dis. A pparel............. M ail order houses Net Sales During December (D ec. 1922=100 Per cent.) Stock on Hand January 1 (Jan. 1, 1923=100 Per cent.) 1919 1920 1921 1922 1923 1920 1921 1922 1923 1924 92 95 95 83 81 92 108 95 80 134 93 93 107 87 91 101 105 104 87 90 95 96 99 90 87 92 96 100 95 74 100 100 100 100 100 100 100 100 100 ;.ioo 107 105 107 108 118 111 104 109 106 110 104 102 109 107 120 133 107 107 88 104 102 107 102 122 140 99 112 95 99 98 107 91 95 105 97 119 90 100 100 100 100 100 100 100 100 100 109 108 95 107 105 117 99 126 116 December mail order sales were 10 per cent, larger than last year, although 12 per cent, smaller than in October, when they were the largest for any month since 1919. This bank’s index of mail order sales stood at 85 per cent, of the computed trend, a figure prac tically identical with that shown in November. The accompanying diagram compares this bank’s index of mail order sales with sales of department stores, in per centages of the computed trend, with allowance for seasonal variation and changes in prices. PERCENT 100 1 115 Department Store Business Complete reports on December sales by department stores in the Second District showed a volume of busi ness 7 per cent, larger than in December a year ago, approximately the same increase as was shown in No vember but less than that shown in October. This bank’s index of sales, after allowing for seasonal varia tion and price changes, was 4 per cent, below the com puted trend of past years. For the entire year 1923 the total sales were 8 per cent, above those of 1922, and 6 per cent, larger than in 1920, heretofore the year of largest sales in dollar value. The only decreases in sales in December occurred in shoes and in woolen goods. The following table shows the percentage change in the major departments, com pared with a year ago. M en’s and boys’ w ear....................... H osiery.................................................. Furniture............................................... House furnishings............................... Silk good s............................................. C otton good s........................................ W om en’s and misses’ ready-to-wear W om en’s ready-to-wear accessories. Shoes....................................................... W oolen good s....................................... M iscellaneous....................................... 4-11.9 4- 7 .3 4- 6.6 44444- 6 .5 5 .7 5.1 4 .9 3 .5 — 1.9 — 10.4 4- 4 .9 Sales of Department Stores in the Second Federal Reserve District and Mail Order Houses (Computed trend — 100 Per cent.) “— of Service to Banks and Business" This bank has for distribution a limited number of copies of a pamphlet of diagrams descriptive of the operations of the Federal Reserve System, and entitled “ — of Service to Banks and Business ” The pamphlet contains material prepared by the Federal Reserve Bank of Philadelphia for an exhibit at the Annual Convention of the American Bankers Association. Copies may be secured by addressing the Federal Reserve Agent. N e w Y o r k R e s e r v e B a n k O p e r a t io n s in 1 9 2 3 H E following table presents in comparative form for the past three years the volume of the principal opera* tions of the Federal Reserve Bank of New York, which are of such character that they can be expressed in quantitative terms. About one-third of all the banking resources of the country are within this Federal Reserve district, and the New York Reserve Bank conducts about one-third of the business of the entire Federal Reserve System. A t the close of business on December 31, the total personnel of the New York Reserve Bank, including the Buffalo Branch, numbered 2,738 persons. T Supplying Currency and Coin Currency Paid Out, Received, or Redeemed. Individual notes counted............................................................... Dollar amount paid and received................................................... Coin Paid Out or Received, a service previously performed largely by the Subtreasury, but now entirely in the hands of the Federal Reserve Bank. Number of coins handled in paying, receiving, and counting....... Tons of coin handled in paying, receiving, and counting............. Dollar amounts paid out and received........................................... M aking L oans and I nvestments Bills Discounted for Member Banks, either discounted customers ’ paper or advances against the notes of member banks secured by collateral in the form of Government securities or commercial or agricultural paper. Number of bills discounted............................................................ Dollar amount................................................................................ Acceptances and Government Obligations purchased for the account of this bank and other Federal Reserve Banks. Dollar amount.................................................................... .......... Collecting Checks, D rafts, N otes, and Coupons Cash I tems, mostly checks, handled for collection for banks in all parts of the country. Number of items............................................................................ Dollar amount................................................................................ Non-cash Items, handled for collection, including drafts, notes, and coupons. Number of items............................................................................ Dollar amount................................................................................ Supplementary Services Securities Held in safekeeping for the United States Government, the War Finance Corporation, and others. Average dollar amount................................................................... Acceptances and Other Securities Bought or Sold for member banks, and foreign banks. Dollar amount.............................................................................. Funds Transferred by Telegraph to and from all parts <xf the country for the Treasury Department and member banks. Number of transfers *...................... »«. *....................................... Dollar amount....... **................................................................... Services in Connection with Government L oans United States Government Securities issued, redeemed, or exchanged, including Government bonds, notes, and certificates of indebtedness. Number of items,......................................................................... Dollar amount................................................................................ Coupons Paid on Government Securities. Number of coupons........................................................................ Dollar amount................................................................................ (In addition to these operations for the Treasury, the bank performed other work for the Government connected with the currency, the collection of checks, the custody, purchase and sale of securities, the transfer of funds, etc., which have been referred to under their respective headings.) * Buffalo Branch operations excluded. ** Figures riot available on same basis as 1922 and 1923. 1921 1922 1923 411,515,000 ** 412,347,000 *$4,952,308,000 477,257,000 *$5,807,207,000 *1,813,252,000 *8,551 $164,000,000 *2,269,651,000 *10,812 $186,500,000 *2,545,487,000 *12,456 $228,798,000 150,000 $30,768,990,000 61,000 $9,206,364,000 72,000 $17,951,843,000 $3,479,000,000 $3,750,000,000 $3,528,000,000 104,519,000 $36,101,511,000 .118,589,000 $62,280,122,000 128,396,000 $65,518,030,000 1,430,000 $1,580,526,000 1,741,000 $1,519,894,000 2,177,000 $1,920,719,000 $1,200,000,000 $1,000,000,000 $1,010,000,000 $415,256,000 $302,000,000 $237,712,000 215,000 $18$160j300j000 236,000 $25,126,090,060 284,000 $28,031,500*000 8,368,000 $7,206,611,000 7,030,000 $6,449,625,000 ___ __ J2,685,000 $336,468,000 8,247,000 $3,148,870,000 ^ 17,684,000 $337,344,000 26,126,000 $312,873,000
@FedFRASER