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MONTHLY REVIEW o f C r e d it a n d S e c o n d Federal Reserve Agent B u s in e s s F e d e r a l R e s e r v e C o n d itio n s D is t r ic t Federal Reserve Bank, New York February 1,1925 T rade Business Conditions in the United States RODUCTION and employment in December con tinued the increase which began in the autumn and wholesale prices advanced further to the highest level for the year. Railroad shipments of goods con tinued in large volume and trade, both at wholesale and retail, was larger than a year ago. P P roduction The index of production in basic industries advanced about 10 per cent, in December to a point 25 per cent, higher than last summer but was still below the level of the opening months of 1924. Practically all of the 22 industries included in the index shared in the advance and the increases were particularly large in iron and steel, cotton manufacturing, coal mining, and meat pack ing. Among the industries not represented in the index the output of automobiles declined in December and was the smallest for any month in more than two years. Increased industrial activity was accompanied by an ad vance of about 2 per cent, in factory employment, with larger increases in the metal and textile industries, and by a growth of nearly 5 per cent, in total factory pay rolls. Volume of building, as measured by contracts awarded, was less in December than in November, but continued unusually large for the season of the year. PER CENT. Distribution of goods was greater in December than in the same month of 1923, as indicated by larger rail road shipments and an increase in the volume of whole sale and retail trade. Christmas trade at department stores was greater than in the previous year, and sales by mail order houses and chain stores were the largest on record. Wholesale trade was seasonally less than in November but in practically all lines was larger than a year ago. Marketing of agricultural products was greater than for the corresponding month of any recent A further advance of more than 2 per cent, in the Bureau of Labor Statistics index of wholesale prices carried the average in December 8 per cent, above the low point of June and to the highest level since April 1923. Prices of all groups of commodities were higher, the principal increases being in farm products and foods. In the first half of January prices of grain, wool, coal, and metals increased further, while sugar, dairy prod ucts, silk, coke, and rubber declined. B a n k C redit At the Federal Reserve Banks the rapid return flow of currency after the holiday trade resulted, during the four weeks ended January 21, in a reduction of earning PERCENT. 157 WHOLESALE PRICES 1913*100 Index of 22 Basic Commodities Corrected for Seasonal Variation. (1919 = 100 Per cent. Latest figure, December.) 1922 1923 1924 1925 Index of U. S. Bureau of Labor Statistics. (1913 = 100 Per cent, base adopted by Bureau. Latest figure, December.) MONTHLY REVIEW. FEBRUARY L 1925 Department Store Sales. Index of Sales of 333 Stores in 117 Cities. (1919 = 100 Per cent. Latest figures, December.) Reserve Bank Credit. Weekly Figures for 12 Federal Reserve Banks. (Latest figures, January 21.) assets about equal to that for the same season a year earlier. The net outflow of currency from the Reserve Banks during the month preceding Christmas amounted to more than $200,000,000, and the return flow after the Christmas peak, reflected both in the increase in reserves and in the decline of Federal Reserve note circulation, was in excess of $300,000,000. Fluctuations in the earn ing assets of the Reserve Banks during the past two months have reflected chiefly these seasonal changes in the demand for currency. The decline in discounts brought their total on January 21 to a smaller volume than at any time in 1924, and acceptances also showed a seasonal decrease. Holdings of United States securities, which have declined for more than two months, were about $175,000,000 below the level of last autumn and in about the same amount as at the middle of 1924. Net exports of gold, which gave rise to a demand for Reserve Bank credit, amounted to $30,000,000 in Decem ber and were in larger volume during the first three weeks in January. The growth of demand deposits at member banks in leading cities during the three weeks ended in the middle of January, which has been greater than the in crease in their total loans and investments, has reflected the return of currency from circulation. In the same period there was some increase in commercial loans and a continued growth in loans secured by stocks and bonds. Holdings of investment securities have decreased some what since the middle of November, particularly at the banks in New York City. Firmer conditions in the money market in December and the first few days in January were followed later in the month by declines in rates on commercial paper to 31/2 per cent. by the usual seasonal decline in the volume of Reserve Bank credit outstanding in the district. Between Decem ber 24 and the latter part of January the total earning assets of the New York Reserve Bank fell about $150,000,000. The return of gold coin and certificates from circulation and the inflow of funds from other districts, resulted in a moderate increase in gold reserves of the bank, despite substantial withdrawals of gold for export. Late in January there was an increase in rediscounts for member banks, accompanying reduction in holdings of Government securities by the New York Reserve Bank and by the System. Changes in member bank credit in the district during the period included a decline in deposits and total loans and investments of the reporting banks to levels some what lower, in case of deposits, than at any time since the beginning of November. These decreases, which were in contrast to increases shown in other districts, were more than accounted for by decreases reported by the New York City banks. The accompanying diagram shows the changes in New York City, and indicates the character BILLIONS OF DOLLARS BILLIONS OF DOLLARS Banking Conditions in the Second District Passing of the autumn and holiday requirements for credit and currency, completion of January 1 financial settlements, and some inflow of funds from the interior, were followed during the first three weeks of January Member Bank Credit Figures for 67 Reporting Banks in New York City. (Latest figures, January 21.) FEDERAL RESERVE AGENT AT NEW YORK of the reduction in loans and investments. As compared with the high level reached at the first of the year, most of the decrease has been in loans secured by stocks and bonds, but security investments, while practically un changed since January 1, show a decline of approxi mately $120,000,000 since the November high point. Commercial loans on January 7, on the other hand, reached a new high level since 1921, and were only slightly lower in succeeding weeks. M on ey M arket Easier money conditions in January reflected the conditions outlined in the preceding paragraphs. Renewed buying of commercial paper, principally in the middle west, caused a slight decline in the open market rate to 3y2 per cent. The amount of paper out standing through 26 dealers at the end of December showed a reduction from November 30 of about 10 per cent, to $798,000,000. Easier conditions in the bill market were manifested in increased demand for bills, especially those of short maturity, a reduction in dealers’ portfolios, and a de cline in sales to the Reserve Bank. Dealers’ open mar ket rates, however, continued generally 3% per cent, on their purchases of 90 day bills and 3 per cent, on their sales. Yields offered on short term Government issues were also practically unchanged. In the stock exchange money market, rates for 60-90 days advanced to 3% per cent., compared with 3 ^ -3 % per cent, prevailing in December. Call loan renewals, after touching 5 per cent, at the end of December re verted in January to an average range of 3-3% per cent. The accompanying diagram, bringing up to date a comparison of money rates in New York and in London, indicates that while rates in London remain higher than in New York, the recent rise in this market has nar rowed somewhat the spread between the two centers. 3 Security M arkets The easier money conditions of early January were ac companied by increased activity and a firmer tone in the bond market. Price averages of high grade corporation issues advanced moderately to levels close to or above the high levels touched in November. Government bonds were also firmer, and foreign issues in a number of cases reached new high levels. In the stock market, continued heavy trading and ris ing prices during the early part of the month carried industrial stock price averages substantially above the 1919 high levels for the first time, and railroad stocks touched new high points since early in 1917. About the middle of the month, however, there was some reaction in prices and price movements thereafter became ir regular. New security offerings showed the usual seasonal in crease after the first of January and in most cases were readily sold. Offerings included numerous stock issues, particularly of public utility concerns, and, in addition to securities sold in the open market, a number of the large New York banks announced increases in capitaliza tion and offered new shares to stockholders. The offer ings of new foreign issues in this market continued heavy and included an increasing proportion of private corporation issues as distinguished from Government securities. The accompanying diagram indicates the extraordinary increase in foreign financing in this coun try since the adoption of the Dawes plan. During the last six months of 1924, offerings of foreign securities of all kinds totaled approximately $880,000,000, the largest for any six months in recent years. Offerings of foreign issues in the London market, on the other hand, showed comparatively little increase during this period, notwithstanding the floating in London of its share of the German loan and other reconstruction loans. 880 669 ■ I NEW YORK ^LONDON 1 JAN-JVM. JUL-DEG 1921 JAW-JOH* JUL-DK- 1 9 2 .2 JAN'JVN jul-dec- 1923 JAN-JUH- JUL-0EC- 19 £ 4 Par Value of Foreign Capital Issues Offered in New York and London by Six Months Periods in Millions of Dollars. (Pounds Converted at the Current Rates of Exchange.) 4 MONTHLY REVIEW, FEBRUARY 1, 1925 F o r e ig n M o v e m e n t o f U n ite d S ta te s C u r r e n c y Continued return of United States currency from abroad was indicated by the figures fo r December, which showed net receipts by this bank and 14 other reporting banks in this city, amounting to $9,150,000, the largest fo r any month since progress in the stabilization o f European currencies resulted in the beginning o f the return flow in A pril. This large amount was due prin cipally to receipts from Germany which alone totaled over $7,000,000. Since A p ril net receipts from all coun tries have amounted to $59,100,000, o f which $32,000,000 came from Germany, $9,400,000 from England, $4,800,000 from H olland, and $3,700,000 from Switzerland. Foreign Exchange Further recovery in the foreign exchanges in January reflected generally growing confidence in European economic conditions, and continued large foreign bor row ing in this country together with higher money rates abroad than in New Y ork. Sterling at $4.80 on January 20 stood within 2 per cent, o f par and about 30 cents above the level prevailing at the conclusion o f the Lon don conference in August. Norwegian, Danish, Belgian, and Spanish exchanges were also strong, and the Argentine paper peso rose to 40*4 cents, within 5 per cent, of par, com pared with a depreciation of 25 per cent, at the beginning of 1924. French rates held com paratively steady, and Swiss, Dutch, and Swedish exchanges continued to be quoted close to or above par, Italian exchange, on the other hand, showed weakness, ascribed chiefly to internal political uncertainties and large purchases of wheat, and Canadian exchange was also somewhat lower, apparently due partly to the smaller wheat crop and reduction in exports. Comparison o f the foreign exchange situation at the outset o f 1925 with that o f a year ago reveals large progress during the year in the restoration o f stable currency conditions in Europe. Sterling a year ago sold down to $4.21. A ll of the European exchanges were be low par with the dollar, and of the exchanges greatly depreciated only those o f Austria, Finland, Latvia, and Lithuania had been stabilized. A t the outset o f 1925, on the other hand, sterling shows an advance o f 14 per cent. Sweden has resumed gold payments, Dutch and Swiss exchanges stand at par, the currencies o f Germany and Poland have been revaluated and, together with the new currencies o f Latvia and Lithuania, held close to the new par, while those of H ungary, and Czecho-Slovakia have been substantially stabilized. In January the South A frican Government announced its intention to resume gold payments not later than July 1 o f this year. proceeds o f the German loan. The exports, however, also included additional shipments o f $8,700,000 to E n g land, and $26,400,000 to India. The heavy exports of gold from this country to India, together with large shipments from South A frica follow a rise in In d ia ’s merchandise export balance in the first eleven months of 1924 to the highest level since 1920. Final figures on the cou n try ’s gold movement fo r December indicated gold im ports o f approxim ately $10,000,000, chiefly from France, Canada, and A rgen tina, so that the net export balance was somewhat less than $30,000,000. This was the first export balance since August 1920 and follows a net gold im port move ment amounting to $1,665,000,000. The table below shows the December gold exports of the United States by principal countries and the figures fo r the Port o f New Y ork fo r the first 24 days o f January. In addition to these exports, substantial amounts o f gold were contracted fo r in the latter part o f the month fo r shipment to Australia. Country Germ any................................ England.................................. British India......................... Hong K on g........................... Canada................................... Exports of gold from U. S. December 1924 From Port of New York January 1 to 24, 1925 $ 20,000,000 10,264,000 5.674.000 $15,000,000 8.711.000 26,430,000 220,000 466.000 188.000 250,600 Netherlands.......................... All Other................................ 1,324,000 538,000 ‘ 2,000,660 1.752.000 2.404.000 T o ta l................................... $39,675,000 $56,547,000 1.001.000 Foreign Trade Foreign trade figures fo r 1924 showed an increase o f $421,000,000 in exports, accom panied by a decrease o f $181,000,000 in imports, and the export balance, which had been $375,000,000 in 1923, rose to nearly a billion dollars. O f the increase in exports, nearly two-thirds is accounted fo r by the rise in cotton and grain exports that occurred in the later months o f the year. D uring the fo u r months ended November, German purchases o f Am erican cotton alone totaled $93,000,000, or nearly 36 per cent, more than in the same period o f 1923. The follow ing diagram, o f the foreign trade o f MILLIONS OF DOLLARS G old M o vem en t D uring the first 24 days o f January exports o f gold from the P ort of New Y ork totaled $56,547,000, com pared with $39,675,000 fo r the whole country fo r the month o f December. O f the January shipments $15,000,000 represented further withdrawals by Germany o f Exports of Merchandise from the United States to Germany and Imports from Germany 1 9 1 9 -1 9 2 4 compared with 1 9 1 3 . (Latest figures, November.) FEDERAL RESERVE AGENT AT NEW YORK the United States with Germany since 1919, and fo r 1913, shows the recent increase in exports to Germany. The value of imports from Germany, however, after a gradual increase since 1919, declined somewhat in 1924 and was smaller than in 1913, notwithstanding that prices now are much higher. During December slackening in the movement o f cotton and grain caused a decline o f $50,000,000 in total exports o f the month to a point $84,000,000 below the October high level, but still about $16,000,000 above the rather high figures o f December 1923. Imports, on the other hand, which have been increasing since August, showed a further gain o f $38,000,000 to $334,000,000, the largest figure since May 1923, and $46,000,000 above December last year. Production The advance o f 10 per cent, in the Federal Reserve B oa rd ’s composite index o f production in December was accompanied by increases in a m ajority o f this bank’s indexes fo r individual industries. In many cases the indexes shown in the table below were close to or above the computed normal. A further increase o f 14 per cent, in the average daily rate o f pig iron output in December resulted in part from the blowing in o f 23 additional blast furnaces. Notwithstanding an increase o f 10 per cent, in daily steel output, which carried this ban k ’s index slightly above the com puted normal fo r the first time since March, unfilled orders of the United States Steel Cor poration rose 785,000 tons. B uying in January was re(Computed trend of past years=100 Per cent.) ported less active, but calls fo r delivery against previous orders raised steel m ill operations to nearly 90 per cent, o f capacity and additional iron furnaces were put in blast. M ill consumption o f cotton in December increased 40,000 bales to within 8 per cent, o f normal, as measured by this bank’s index, and woolen m ill activity was only 3 per cent, below normal. M ining o f anthracite and bituminous coal increased contrary to the usual sea sonal tendency, and in the week o f January 10 bitum in ous output reached the largest total in over 4 years. Indexes of Business A ctivity Nearly all o f this ban k ’s indexes o f distribution and general business activity were higher in December than in November and, as in the case o f the production in dexes, many were close to or above normal, as measured by the trend o f past years. The follow ing table gives the indexes after allowance fo r seasonal variation and, where necessary, fo r price changes. (Computed trend of past years=100 Per cent.) 1923 1924 Dec. Oct. Nov. Dec. Producers' Goods Pig iron......................................... 93 84 Steel ingots................................... 89 Bituminous coal........................... Copper, U. S. mines..................... 104 91 Tin deliveries................................ 81 Zinc*............................................. Petroleum..................................... 131 Gas and fuel oil............................ 105 82 Cotton consumption..................... Woolen mill activity*................... 91 Cement.......................................... 153 Lumber......................................... 122 83 Leather, sole................................. 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......................... Car loadings, merchandise and misc 103 Car loadings, other....................... 103 Wholesale trade, Second District.. 88 88 97 53 Grain exports................................ Panama Canal traffic.................... 160 76 87 89r 113 124 69 118 100 87 98 152 116 81 105 161 84 110 114 111 86 78 102 114 198 113 95 96 83 120 124 104 104 146 77 110 91 96 86 69 93 120 158 107 96 80 78r HOr 112r 104r 92 102 97p 109p 75 78 *92 97p 157 108 106 104 99 107 77 137 102 96 107 142 125 97 81 87 88p 105p 95 73 80 88p 151 Chain store sales........................... Mail order sales............................ Life insurance paid for.............. Magazine advertising.................... Newspaper advertising................. 1923 1924 Yearly Yearly Average Average 108 98 103 111 106 201 103 102 105 91 102 101 119 106 103 110 93 90p lllp 93 120 106 113 104 86 110 89 146 103 103 95 94p 106p 86 126 103 85 120 101 97 93 103 112 100 92 97 90 107 99 92 99 104 125 98 99 93 107 100 100 95 95 107 98 100 102 105 105 99 110 104 118 105 103 103 110 101 94 92 93 100 98 107 102 103 99 101 92 101 105 91 105 102 94 100 91 102 102 103 106 102 105 102 94 107 99 General Business Activity Bank debits, outside of New York Bank debits, New York City....... Velocity of Bank Deposits, outside of New York City..................... Velocity of Bank Deposits, New York City.................................. Postal receipts............................... Electric power r .................................. Employment, N. Y. State factories Business failures............................ *9i 111 *93 103 p= Preliminary r = Revised 90 140 83 109 96 91 79 80 86 119 116 104 90 75 93 151 153 145 * = Seasonal variation not allowed for p=Preliminary r=Revised 75 86 94 110 88 69 120 98 91 97 147 123 81 1923 1924 Yearly Yearly Average Average 1924 Deo. Oct. Nov. Dec. Primary Distribution Distribution to Consumer 1923 5 109p 174p 81p 119p IlOp 93p 82 84 98 i06 102 81p 85p 97p 92p 118p 102 131 87 127 107 108 88 87 99 113 134 111 100 99 96 143 149 118 105p 139p 89p 121p 112p 114p 85 82 102 iio 97 86p 90p 118p 122p 103p Building The value o f building contracts awarded throughout the country showed a further seasonal decline in Decem ber but continued substantially larger than a year ago. Permits applied for, which precede contracts, increased about 10 per cent, over November in 343 cities and were almost as large as a year ago. The increase in contracts recently has been mainly in the southeastern, central western, and middle Atlantic districts, while in the south permits have also increased 6 MONTHLY REVIEW, FEBRUARY 1, 1925 largely. In the New Y ork district, however, contracts awarded continued lower than a year ago, when the marked expansion in winter construction was in p rog ress, and in New Y ork City the decline in permits was even more marked. F or the entire year 1924 total contracts let in 27 States were 11 per cent, larger than in 1923, due chiefly to increased residential building in the New Y ork dis trict early in the year. The follow ing diagram, com paring contract awards during the last five years by types o f construction, indicates the increased importance o f residential building in the totals. 3,876 3 ,5 0 4 2,565 ALU OTHER P U B L IC changes the number o f unem ployed workers, especially unskilled labor, continues much larger than a year ago in practically all industrial centers o f this district, and has resulted in rather difficult conditions in cities which lack diversification o f industries. Com m odity Prices Marked progress towards the reestablishment o f a more normal relationship between agricultural and non-agricultural prices was indicated by the Bureau o f L abor Statistics’ index o f wholesale prices fo r December. F o r the first time since 1920 the farm products and foods groups o f this index stood at a level equal in relation to 1913 prices with that o f all commodities o f the index. This equalization reflects both the recovery in farm products, and also a declining tendency in non-agricultural prices during the greater part o f the past two years. The accom panying diagram indicates the manner in which the various groups have come together. D ur ing recent months, however, it is noteworthy that non agricultural prices also have shared somewhat in a general upward tendency. U T IL - IT IE S & WORKS B U S IN E S S & C O M M E R C IA L R E S ID E N T IA L 1920 192.1 192.2 1923 1924 Value of Building Contract* Awarded Each Year in 27 States. (Figures in millions of dollars.) W ages and E m ploym ent Replies from representative employers to this bank’s quarterly inquiry indicate continued stability in this district in the hiring rate of wages fo r unskilled labor. W hile there was evidence o f a considerable labor sur plus and a much reduced labor turnover as com pared with a year ago, few employers reported reductions in their hiring rates, and the average rate remained about 2 per cent, below the highest level o f 1923. In the New E ngland district, however, additional cotton mills re duced wages of operatives 10 per cent, upon resuming more active operations. Increases in factory employment o f 1 per cent, in New Y ork State and 2 per cent, in the country as a whole, occurred in December, and brought the totals to a level about m idway between the summer low point and high est point o f 1924 reached last March. D uring the first half of January, further increases in factory employment were reported by employment o f fices. The iron and steel industry continued to reem ploy large numbers o f men, and there were seasonal increases in factories making automobiles and automobile parts, and in the apparel industries. Notwithstanding these Wholesale Prices of Farm Products and Foods Compared with Prices of Non-Agricultural Products and All Commodities of the Bureau of Labor Statistics Price Index. (In Percentages of the 1913 Average. Latest month December.) Reflection o f the rise in agricultural prices appeared also in other standard price indexes. Largely because o f these increases, indexes both o f the cost o f living and o f the general price level, including not only wholesale and retail prices, but also rents and wages, were sub stantially higher than in June, though not appreciably higher than a year ago. The follow ing table shows the changes in a number o f these indexes, and in the E con o m ist’s index o f British wholesale prices, since June o f this year and December o f last year. Dec. 1923 June 1924 20 Basic Commodities (F. R. B. of N. Y . ) . . . • General Price Level (F. R, B. of N. Y .) ......... Wholesale Prices, Dept, of Labor...................... Cost of living in U. S., Dept, of Labor............. Economist (British)............................................... ♦January 24,1925 146.8 183 151 173 170.1 142.3 180 145 169 168.2 Deo. 1924 *155.2 184 157 173 180.3 7 FEDERAL RESERVE AGENT AT NEW YORK ed to this bank were over 4 y2 per cent, greater than in 1923, com pared with an annual average increase o f about 8 per cent, during the previous five years, after allowance fo r price variations. Stocks o f merchandise on hand during the early months o f the year showed increases over the 1923 level, but in the latter half o f the year there appeared to be a tendency to carry smaller stocks relative to the volume o f sales than a year previous. Sales in 1924 were fo u r times the average stocks o f merchandise valued at selling prices. This indicates a further slight increase in the rate o f turnover, which has been increasing since 1920. The table at the foot o f the page compares December sales and stocks with those o f a year previous, and also compares annual sales, average stocks, and annual rate o f turnover in each o f the past six years. Sales in all the main departments o f the stores showed at least slight increases over December 1923. Sales o f cotton goods, chiefly domestics, showed the largest in crease. The follow ing table shows the changes in sales by m ajor departments. W h o le s a le T r a d e Wholesale trade in this district showed somewhat less than the usual seasonal decline in December and was 7Y2 per cent, larger than in December a year ago. This bank’s index o f trade, after allowance fo r seasonal variation, advanced slightly to 93 per cent, o f normal, as measured by the trend of past years. Total sales fo r the year 1924 fell 5 per cent, below those o f 1923, com pared with an increase o f 15 per cent, in 1923 over 1922. The follow ing table gives detailed comparisons fo r December sales and total sales o f 1924. Annual Sales December 1924 Sales (Total Sales 1923= Percentage Percentage 100 Per cent.) Change from Change from Deo. 1923 1919 1920 1921 1922 1923 1924 N ov. 1924 Diam onds.................... D ry good s.................... (a) C otton ............... (b) S ilk.................... Shoes............................. D rugs............................ C lothing....................... (a) M en’s ................ (b) Women’s dresses (c) W om en’s coats and suits.......... Groceries...................... Hardware..................... Jewelry......................... Machine to o ls ............. Stationery.................... + 4 1 .0 + 1 0 .5 + 3 .6 + 1 7 .4 + 1 0 .3 + 5 .4 — 21.3 — 32.2 + 2 6 .2 + 2 6 .7 + 2 4 .2 + 1 4 .3 + 3 4 .0 + 1 8 .7 + 1 5 .9 + 8 .6 + 3 1 .6 + 1 5 .3 214 125 103 105 91 102 116 107 171 139 85 89 84 97 79 107 92 94 56 87 86 88 105 82 77 73 84 82 100 102 98 84 100 87 100 89 80 100 107 93 100 96 90 100 106 83 100 91 81 100 99 85 91 100 — 4 9 .2 — 9 .7 + 2 .1 + 0 .9 + 1 2 .8 — 1.3 — 2 6 . o;* + 2 .2 s* — 0 .1 : — 6.8 , — 8 .2 i — 14.31 83 121 100 169 161 103 87 129 115 157 172 128 75 90 78 77 42 91 80 100 85 93 100 96 84 100 96 93 87 100 55 100 78 90 100 102 Weighted A verage.. — 7 .5 + 7 .5 106 113 84 87 100 Per cent. Change in Sales December 1923 to December 1924 95 C otton goods............................................................................................... Furniture...................................................................................................... M en’s furnishings................................................................................... Toilet articles and drugs.......................................................................... H om e furnishings....................................................................................... W om en’s ready-to-wear accessories....................................................... W om en’s and Misses’ ready-to-wear..................................................... Shoes............................................................................................................. Books and stationery................................................................................ T oys and sporting goods........................................................... .............. W oolen go o d s.............................................................................................. Luggage and leather goods...................................................................... M en’s and B oys’ wear............................................................................... Silk goods..................................................................................................... H osiery......................................................................................................... Silverware and jew elry............................................................................. Linens and handkerchiefs........................................................................ Miscellaneous................................................................................... .. D epartm ent Store Business Final reports on department store sales in this district showed a substantial increase in sales over the same month o f 1923, notwithstanding the fact that during the first half o f the month holiday trade was reported slow. The average increase in sales fo r the entire district was 6.6 per cent., part o f which was attributed to an extra selling day this year, but the daily rate of sales showed an increase over December 1923 in several localities, in cluding New Y ork City. The average transaction was $2.95, com pared with $2.87 in December a year ago. Mail order sales in December were more than onefourth larger than in the same month o f 1923, and this bank’s index advanced to 4 per cent, above the esti mated normal as measured by the trend o f past years, the highest with one exception since 1920. F or the year 1924 total department store sales report Per cent. Change Dec. 1923 to Dec. 1924 Sales Annual Sales (Year 1923=100 Per cent.) All Dept. Stores. + 6.6 + 0 .7 Apparel Stores Mail crder houses. +24.9 +25.9 + 5 6 .6 Average Stock on H and (Year 1923=100 Per cent.) Annual R ate of Stock Turnover 1919 1920 1921 1922 1923 1924 1919 1920 1921 1922 1923 1924 1919 1920 1921 1922 1923 1924 0 +20.0 + 4 .8 + 4 .2 — 5 .0 + 3 .6 — 15.7 + + + + — + — Stock 7 .8 7 .8 7 .4 5 .2 2 .9 2 .3 5 .1 New Y o r k ............... B uffalo..................... N ewark................... R ochester............... Syracuse................. B ridgeport.............. Elsewhere, 2d Dist. + 2 8 .3 + 1 7 .3 + 1 3 .5 + 1 2 .8 + 1 2 .0 + 1 0 .7 + 1 0 .5 + 9 .5 + 9 .3 + 8 .4 + 7 .9 + 6 .9 + 6 .0 + 3 .5 + 3.1 + 2 .7 + 0 .8 + 1 0 .2 96 96 88 92 99 110 99 80 95 87 101 103 76 91 93 100 100 100 100 100 100 100 100 100 100 104 102 10« 106 101 100 99 81 110 93 89 115 101 81 114 89 93 133 104 103 139 106 94 116 99 79 93 105 81 110 93 108 107 64 91 82 100 101 4 .0 3 .5 100 103 3 .0 2.8 100 103 3 .4 3 .0 100 105 2 2 .5 100 104 2 .9 2.6 101 100 102 3.1 3 .1 92 100 96 2 .4 2 .3 94 100 103 3 .8 3 .3 90 100 118 5 .7 4 .6 94 96 90 95 96 4 .2 3 .3 4 .0 3 .6 3 .5 3 .2 2 .3 3 .9 3.1 3 .7 3 .2 3 .1 3.1 2 .3 3 .9 3 .2 3 .8 3 .6 3 .4 3 .0 2 .4 3 .8 3 .8 3 .9 4 .0 5 .0 4 .8 4 .5 4 .0 3 .3 3 .9 3 .6 3 .6 3 .3 2 .3 MONTHLY REVIEW, FEBRUARY 1, 1925 N e w H E T Y o r k f o llo w in g t a b le p r e s e n t s in R e s e r v e c o m p a r a tiv e fo r m t io n s o f th e F e d e r a l R e s e r v e B a n k o f N e w q u a n tita tiv e te rm s. O p e r a t io n s in 1 9 2 4 f o r th e p a s t th r e e y e a r s th e v o lu m e o f th e p r in c ip a l o p e r a Y o r k , w h ic h a r e o f s u c h c h a r a c t e r th a t t h e y c a n b e e x p r e s s e d in A b o u t o n e -th ir d o f a ll th e b a n k in g d is tr ic t, a n d th e N e w S y ste m . B a n k r e s o u r c e s o f th e c o u n t r y a r e w it h in th is F e d e r a l R e s e r v e Y o r k R e s e r v e B a n k c o n d u c t s a b o u t o n e -t h ir d o f th e b u s in e s s o f th e e n t ir e F e d e r a l R e s e r v e A t t h e c l o s e o f b u s i n e s s o n D e c e m b e r 3 1 , t h e t o t a l p e r s o n n e l o f t h e N e w 7” Y o r k R e s e r v e B a n k , i n c l u d i n g t h e B u f f a l o B r a n c h , n u m b e r e d 2 ,6 5 3 p e r s o n s . S u p p l y in g Currency and C o in C u r r e n c y P a id O u t , R eceived , or R e d eem ed . I n d iv id u a l notes c o u n te d ................................................................................... D o lla r am ou n t p a id an d r e c e i v e d * ........................................................... 1922 412,347,000 $4,952,308,000 1923 477,25 7,00 0 $5 ,807 ,207 ,000 1924 512,097,000 $6,014,938,000 C oin P a id O u t or R eceived , a serv ice p re v io u sly p e r fo r m e d la r g e ly b y the S u b trea su ry , b u t n o w e n tire ly in the hands o f the F e d e r a l R eserv e B a n k . N u m b e r o f c o in s h a n d led in p a y in g , r e ce iv in g an d c o u n t i n g * . . T o n s o f c o in h a n d le d in p a y in g , r e ce iv in g , an d c o u n t i n g * ............ D o lla r am ou n ts p a id ou t an d r e c e iv e d ......................................................... 2,269,651,000 10,812 $186,500,000 2,5 45,487,000 12,456 $228,798,000 2,767,828,000 13,491 $2 74,869,000 B il l s D is c o u n t e d fo r M e m b e r B a n k s , eith er d iscou n ted cu sto m e rs/ papeT o r ad v an ces a g a in st the n otes o f m em b er ba n ks secu red b y c o lla te r a l in th e fo r m o f G overn m en t secu rities or com m ercia l or ag r icu ltu r a l p a p e r. N u m b e r o f b ills d is c o u n te d .............................................................................. D o lla r a m o u n t ........................................................................................................ 61,000 $9,206,364,000 72,000 $1 7,951,843,000 40,000 $7 ,031,000,000 A c c e p t a n c e s a n d G o v e r n m e n t O b l ig a t io n s p u rch ased fo r the a ccou n t o f th is ba n k an d oth er F e d e r a l R eserv e B an ks. D o lla r a m o u n t ........................................................................................................ $3,750,000,000 $3 ,528,000,000 $3 ,672,000,000 C a s h I t e m s , m o stly checks, h a n d led f o r co lle ctio n f o r banks in all p a rts o f the cou n try . N u m b e r o f it e m s . . . ............................................................................................ D o lla r a m o u n t ........................................................................................................ 118,589,000 $62,280,122,000 128,396,000 $65,518,030,000 136,166,000 $68,39 7,73 4,00 0 N o n - c a s h I t e m s , h a n d led f o r co lle ctio n , in c lu d in g d r a fts , notes, an d cou p on s. N u m b e r o f it e m s ................................................................................................... D o lla r a m o u n t ........................................................................................................ 1,741,000 $1,519,894,000 2,177,000 $1,920,719,000 2,429,000 $1 ,873 ,743 ,000 S u p p l e m e n t a r y S e r v ic e s S e c u r it ie s H eld in sa fe k e e p in g f o r the U n ited S ta tes G overnm ent, the W a r F in a n ce C o rp o ra tio n , an d others. A v e ra g e d o lla r a m o u n t........................................................................................ $1 ,000,000,000 $1 ,010 ,000 ,000 $979,000,000 A c c e p t a n c e s a n d O t h e r S e c u r it ie s B o u g h t or S old f o r m em ber banks, an d fo r e ig n banks. D o lla r a m o u n t ........................................................................................................ $302,000,000 $237,7 12,0 00 $173,682,000 F u n d s T r a n s f e r r e d b y T e l e g r a p h to an d fr o m a ll p a rts o f the c ou n try f o r the T re a su ry D e p a rtm e n t an d m em ber banks. N u m b e r o f t r a n s fe r s ............................................................................................ D o lla r a m o u n t ........................................................................................................ 236,000 $25,126,090,000 28 4,000 $28,03 1,50 0,00 0 286,000 $35,042,000,000 U n it e d S t a t e s G o v e r n m e n t S e c u r it ie s issu ed, redeem ed , o r ex ch a n ged , in c lu d in g G overn m en t b o n d s, n otes, an d certifica tes o f in d ebted n ess. N u m b e r o f it e m s ................................................................................................... D o lla r a m o u n t ........................................................................................................ 7,030,000 $6,449,625,000 8,247,000 $3,148,870,000 2,9 87,0 00 $3 ,522 ,486 ,000 C o u p o n s P a id on G o v e r n m e n t S e c u r it ie s . N u m b e r o f c o u p o n s ............................................................................................... D o lla r a m o u n t ........................................................................................................ 22,685,000 $336,468,000 17,684,000 $337,344,000 14,055,000 $332,369,000 M a k in g L o a n s a n d I n v e s t m e n t s C o l l e c t in g S e r v ic e s in C h e c k s, D r a fts, N otes, an d C oupons C o n n e c t io n w i t h G o v e r n m e n t L o a n s ( I n a d d itio n to these o p e ra tio n s f o r the T rea su ry , the b a n k p e rfo rm e d o th e r w o rk f o r the G overn m en t co n n e cted w ith the cu rren cy, the c o lle ctio n o f checks, the c u sto d y , p u rch ase an d sale o f secu rities, the tr a n s fe r o f fu n d s, etc., w h ich have been r e fe r r e d to u n der th eir re sp e ctiv e h e a d in g s .) * Buffalo Branch operations excluded.
@FedFRASER