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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 D is t r ic t Federal Reserve Bank, New York Business Conditions in the United States R O D U C T IO N in basic industries and facto ry em ploym ent continued at about the same level in November as in October. There w as a fu rth er slight rise in the level of commodity prices reflecting ad vances in nearly all groups of commodities. P P r o d u c t io n Production of basic commodities w as at about the same rate in November as in October, but owing to the sm aller number of w orking days not allowed for in the adjustm ent fo r usual seasonal variations, the F e d e ral Reserve B o a r d ’s index of production declined b y about 2 per cent. Increased a ctivity w as shown in the iron and steel in d u stry and in cotton and woolen textiles, while production of food, coal, lumber, paper, and automobiles declined. There w as little change in the volume of facto ry em ployment in November. B u ild in g contracts aw arded declined somewhat in November, but the total was considerably large r than for the corresponding month of an y recent year. F in a l estimates b y the Departm ent of A g ricu ltu re of crop yields in 19 2 4 showed a greater aggregate produc tion than in 1 9 2 3 and an increase of about 9 per cent, in the total value of all crops. Y ie ld s of wheat, oats, cotton. PERCENT. Index of 22 Basic Commodities corrected for seasonal variation (1919 — 100 Per cent. Latest figure November) R e s e r v e C o n d itio n s January 1, 1925 potatoes, and h ay were larger than in 19 2 3 , but the production of corn and tobacco w as sm aller. M arketing continued in large volume in Novem ber and exports of agricu ltu ral products were the largest fo r that month in an y recent year. P r ic e s The level of wholesale prices, as m easured b y the index of the B u reau of La b o r Statistics, advanced sligh tly in November, price increases in most of the commodity groups being n early offset b y a considerable decline in the prices of anim al products. D u rin g the first h alf of Decem ber there w ere fu rth e r advances in the prices of grains, flour, sheep, metals, and lumber, while the prices of beef, hides, silks, and brick declined. T rade R ailroad freigh t shipments though sm aller in Novem ber than in October, owing to seasonal influences, were in about the same volume as in 1 9 2 3 . W holesale trade showed the usual decline in Novem ber and w as about as active as a y e a r ago. Sales of fu rn itu re and meat were larger than last year, while the volume of business in n early all other lines w as sm aller. R etail trade was somewhat more active in Novem ber and sales of mail order houses and chain stores w ere large r than last year. M erchandise stocks at departm ent stores were sligh tly reduced and were 2 per cent, less than a y e a r ago. PER CENT. Index of U. S. Bureau of Labor Statistics (1913 = 100 Per cent, base adopted by Bureau. Latest figure November) 2 MONTHLY REVIEW, JANUARY 1, 1925 BILLIONS OF DOLLARS Index of Employment in Manufacturing Industries (1919 average = 100 Per cent. Latest figure November) Reserve Bank Credit—Weekly Figures for 12 Federal Reserve Banks (Latest figures, December 17) B a n k C r e d it Governm ent operations throughout the country cen tering about the 15th aggregated approxim ately $ 1,5 0 0 ,000,000, including the flotation of a new T re a su ry refun d ing loan, redemption of approxim ately $325,000 ,000 m aturing securities and paym ent o f interest on the public debt, paym ent by the British Governm ent of $91,500 ,0 00 , chiefly in United States securities, on ac count of interest and principal on its debt to this G overn ment, and the collection of income taxes. In this district the events of the tax period fol lowed the usual course, except that the amount of Governm ent funds paid out in this m arket was larger than usual in proportion to the rest of the country. A gain st total disbursements on December 1 5 of $ 2 3 3 ,000,000, the T re a su ry balance with the Reserve B ank, together with tax and other collections on that date, aggregated only $89,000,000, leavin g a debit balance of $144,000,000, which was covered by a tem porary loan by the Federal Reserve B an k to the T rea su ry. A s in come tax checks were collected, and the proceeds of tax collections were transferred here from other districts, the T re a su ry w as able grad u a lly to reduce, and by Decem ber 1 8 extinguish its borrowing at the F ed eral Reserve Bank. Total loans and investments of member banks in lead ing cities continued to increase du ring the four weeks ended December 10 and on that date were in larger volume than at any previous time. The increase du ring the period was chiefly in loans secured by stocks and bonds and accompanied continued activity in the se curity markets. Commercial loans showed a seasonal decline from the high point of the year reached in the middle of November but continued above the level of a yea r ago. Secu rity holdings, after increasing rap id ly since the sprin g of the y ear reached a peak on November 19 and after that time showed a slight decline. A t the Reserve Banks total earning assets increased considerably du ring the four weeks ended December 1 7 reflecting the seasonal demand for currency and the export of gold. The volume of discounts of the Reserve Ban ks increased between the middle of November and the middle of December. Th eir holdings of acceptances also showed a net increase, while United States security holdings declined somewhat. F irm e r conditions in the money m arket d u rin g the last half of November and the first h alf of December were indicated by higher rates on bankers acceptances and a rise of one h a lf per cent, in the rate on commer cial paper. Banking Conditions in the Second D istrict B an k in g transactions in December reflected the usual holiday trade activity, preparations fo r the year-end disbursements, and the large Governm ent operations fa llin g due December 1 5 . A cco m pan yin g a large de mand for cu rren cy and w ithd raw als of gold for export, money rates became firmer and the volume of credit required of the Fe d eral Reserve B an k of N ew Y o rk rose to a new high point fo r the year. The heavy volume of Governm ent disbursements on the 15 th created a large su p p ly of excess funds in the market, and this w as reflected in easier money conditions and a decline in call loan rates. A s income tax checks were collected and fund s were w ithdraw n from N ew Y o rk b y interior banks to replace funds tran sferred b y the T re a su ry to N ew Y o rk , the equilibrium of the m arket w as restored and conditions became firm again. Between November 1 9 and December 1 7 there w as a fu rth er slight increase in total loans and investm ents and in deposits o f reporting member banks in this dis trict. The increase in loans and investm ents was due to a fu rth e r rise in loans secured b y stocks and bonds FEDERAL RESERVE AGENT AT NEW YORK to a new high level. Com m ercial loans showed a mod erate seasonal decline, and investments were also lower, due p artly to the redemption of Governm ent issues m a tu rin g December 15 . A t the Federal Reserve B an k of N ew Y o rk discounts for member banks rose sh arp ly du rin g the week ended December 24 to $134,000 ,0 00, the highest since A p ril. B ills bought in the open market were also larger than a month previous, but holdings of United States securi ties were smaller. In consequence of these changes, total earning assets increased over $100,000,000 du ring the month to $410,000,000, a new high point fo r the year. M o n ey M ark et Excep t for several days follow ing the large T rea su ry disbursements on December 1 5 , the money market showed increased firmness in December and rates gen erally advanced to levels from % to one per cent, above the summer low points. A m ong the contributing factors were loss of funds to the interior, holiday currency re quirements, the a ctivity of the stock m arket, and an out ward movement of gold. A less active demand for commercial paper in middle western cities caused a fu rth er slight advance in open market rates to 3 y 2- 3 % per cent. Su p plies of paper were reported sm aller than in Novem ber when the amount outstanding through 26 dealers declined 3 per cent., or approxim ately the average decline in Novem ber of the two preceding years. Firm er conditions in the bill m arket were reflected by further advances in rates and increased sales to the Reserve Banks. D ealers’ open market rates at 3 % per cent, on their purchases of 90 d ay bills and 3 per cent, on their sales were about V£ of one per cent, higher than at the end of November. Y ield s on near m aturities of Governm ent short term issues, on the other hand, de clined, due to stim ulation of demand by the conversion privileges offered by the new T rea su ry loan. Rates for 60-90 day loans on stock m arket collateral ad vanced another V2 of one per cent, to 3 V 2 -3 % per cent., or about 1 per cent, above the summer low point. C all loan renewals were almost continuously 3 -3 * 4 per cent., the highest average since M ay, and late in the month the rate for new loans reached 5 per cent. Security M arkets The stock m arket continued active and strong in D e cember. D a ily transactions on the N ew Y o rk Stock E x ch an ge averaged considerably over 1 V£ m illion shares, and on 7 d ays exceeded 2 m illion shares. P rice averages of industrial issues rose to w ithin 5 points of the high level touched in Novem ber 1 9 1 9 and railroad stocks reached new high levels since 1 9 1 7 . Bond prices, on the other hand, receded sligh tly in December, accom panying firm er money conditions. L ib e rty bonds also reacted m oderately and T re a su ry 4 % ’s declined about a point. The new T re a su ry 4*s offered in December were first traded in on the N ew Y o rk Stock E xch an ge on December 1 5 at about 10 0 18 /3 2 . I O fferings of new securities continued large and were generally oversubscribed. Sales, p a rticu larly of the large issues, are being made with com paratively little of the usual circularization of m ailing lists by bond houses. F o reig n offerings, including $50,000,000 Belgian Gov ernment, $30,000,000 A rgen tin e Governm ent, and $ 1 1 , 000,000 Greek Governm ent bonds, contributed largely to the totals fo r the month, and brought the amount of foreign issues sold here since Ja n u a r y 1 to over $ 1 ,240,000,000. The follow ing table, showing the p ar value of issues sold, indicates the wide diversification of fo r eign offerings by countries. R efu n d in g issues, so fa r as possible, have been excluded from the table. Canada............................................................................................................... J a p a n ................................................................................................................. F ra n c e ............................................................................................................... G e r m a n y ........................................................................................................... A rgen tina.......................................................................................................... Belgium .............................................................................................................. H o lla n d ............................................................................................................. Sweden............................... *.............................................................................. C h ile ................................................................................................................... Norway ............................................................................................................ C u b a ................................................................................................................... Switzerland........................................................................... ........................ F in la n d .............................................................................................................. Czecho-Slovakia............................................................................................... G r e e c e ............................................................................................................... All o t h e r ............................ .............................................................................. $235,000,000 187,000,000 161,000,000 115,000,000 75,000,000 50,000,000 46,000,000 46,000,000 40,000,000 33,000,000 30,000,000 30,000,000 10,000,000 i 1,000,000 11,000,000 46,000,000 T o t a l ............................................................................................................ *1,135,000,000 Foreign Exchange The general advance in foreign exchange rates of the past few months continued in December. S terlin g at $ 4 . 7 2 % on December 29 was the highest since M arch 1 9 19 , when free transactions in sterling were resumed. Swedish, Dutch, and Sw iss exchanges were quoted above par, and N orw egian, Spanish, and Indian rates showed substantial advances. Both Fre n ch and B elg ian currencies averaged slightly higher than in November. A u stria n exchange was unchanged, and the new Germ an reichsm ark held steady around the par of 2 3.8 2 cents. A rgen tin e pesos rose above 39 cents for the first time since 19 20 . Shanghai taels, on the other hand, declined in D e cember, accom panying a sharp drop in silver to 6 7 ^ cents, or more than 4 cents below the October high p o in t; possible influences in connection with this decline were sm aller purchases by continental E u ro p ean coun tries, Chinese selling, and the diversion of Indian buying to gold. Italian exchange was also sligh tly lower in December, and C an adian rates declined about one h alf cent from par. Gold M ovem en t Gold exports from the P o rt o f N ew Y o rk d u rin g the first 2 7 days of Decem ber totaled $40,242,000, the la rg est export movement since Ju n e 1 9 1 9 . Shipm ents were largest to Germ any, representing w ithd raw als of pro ceeds of the Germ an loan, but substantial amounts were forw arded also to E n glan d , India, Holland, and Sweden. Im ports du rin g the same period at this port totaled MONTHLY REVIEW, JANUARY I, 1925 $6,100,00 0 almost entirely from F ra n ce and A rgen tin a. The follow ing table shows gold exports from this port by p rin cip al countries fo r the first 2 7 days of December. Countries $20,000,000 T o ta l.................................................... $40,242,000 9.993.000 5.918.000 1.603.000 UNFILLED ORDERS MILLIONS o f TONS 15 Amount G erm any................................................. E ngland................................................... India......................................................... H olland.................................................... Sweden..................................................... South Am erica....................................... M ex ico..................................................... Spain........................................................ Other Countries..................................... 100 PIG- IRON p RODUCTlO f' 10 1,000,000 739.000 500.000 230.000 259.000 D u rin g November exports of gold fo r the entire coun tr y were $6,700,000. Im ports fo r the entire country totaled sligh tly under $20,000,000, more than h a lf from Fran ce, and there w as a net im port balance fo r the month of $13,00 0,000 . Foreign Trade E x p o rts of m erchandise in November valued at $49 4,000,000 were $33,000,000 below the high figure reached in October, but otherwise the largest since 1 9 2 1 . Im ports of $296,000,000 were $15,0 0 0 ,0 0 0 below a month previous, and sligh tly larger than a y e a r ago. The decline in exports w as due chiefly to a decrease of $43,000,000 in the value of grain exports. Due to heavy grain shipments in recent months, as w ell as higher prices, the total value of grain shipments fo r the eleven months ended Novem ber w as $97,000,000 larger than in the corresponding period of 19 2 3 . Cotton exports increased in Novem ber and at 1,30 7,0 0 0 bales w ere the largest in quantity ever shipped in one month, while the total value w as not f a r from the high figures reached early in 19 20 , when cotton w as selling around 40 cents a pound. The volume of silk im ports increased in November, and, excepting the Septem ber total, w as the largest since October 19 2 2 . Production The blowing in of 2 3 blast furnaces in the steel indus tr y in Novem ber contributed to a fu rth e r gain of 4 .7 per cent, in average d aily iron output. The rate of steel ingot production increased 7.9 per cent., and there w as a rise of over 500,000 tons in the unfilled orders of the Steel Corporation. In Decem ber larger calls fo r delivery against orders previously placed raised steel m ill opera tions to about 80 per cent, of cap acity, the highest since M arch. The accom panying diagram reflects the recent in crease in iron production and unfilled steel orders, but indicates that the totals are still considerably low er than at the high points in 1 9 2 3 and 19 2 4 . The m uch lower level of unfilled orders in recent ye a rs in relation to production o f iron and steel reflects both the tendency to short commitments and prom pter deliveries aided by greater transportation efficiency. PRODUCTION THOUSANDS OF GRO SS TONS 50 UN FI .LED ST EEL O RDERS V ' V Unfilled Orders of the Steel Corporation and Average Daily Pro duction of Pig Iron by months. (Latest figures, November.) Cotton consumption in Novem ber w as sligh tly sm aller than in October, but the d aily rate of consumption was larger, and some fu rth er expansion in m ill activities was reported in December. Bitum inous coal production in Novem ber reached the highest d aily rate since F e b ru a ry , and copper and cement production continued at high levels. Passenger automobile output, on the other hand, fell 2 4 .3 per cent, to the smallest since 19 2 2 , and there was a decrease also in truck output. The accom panying table shows this b a n k ’s indexes in percentages of the computed trend, or normal, w ith allowance fo r seasonal variation. A factor tending to lim it advances in the indexes in Novem ber was a p artial celebration of A rm istice D a y in some in dustries, and a w ider observance of Electio n D a y this year. (Computed trend of past years=100 Per cent.) 1923 1924 N ov. Sept. Oct. Nov. 65 82 88 104 85 66 124 94 78 87 148 113 78 75 86 94 llO r 88 69 120 98 91 97 147 123 81 76 87 90p 113p 124 69 Gas and fuel o il............................................ Cotton consum ption.................................... W oolen mill a ctivity*................................. C em ent...................................... ..................... Lum ber........................................................... Leather, sole................................................. 90 90 94 107 150 77 145 102 96 101 148 136 92 Consumers’ Goods Cattle slaughtered....................................... Calves slaughtered...................................... Sheep slaughtered........................................ Hogs slaughtered.. ...................................... Sugar meltings, U. S. p orts....................... Wheat flour................................................... Cigars............................................................. Cigarettes...................................................... T obacco, m anufactured.............................. Gasoline......................................................... T ires*.............................................................. Newsprint.................... ................................. Paper, to ta l................................................... Boot?* and shoes............................................ Anthracite co a l............................................. Automobile, a ll............................................. Automobile, passenger................................ Automobile, truck........................................ 94 142 75 130 116 95 93 81 100 106 119 110 93 88 90 161 170 125 104 142 87 127 131 125 91 82 107 119 183 110 92 89 91 118 122 99 105 161 84 110 114 111 86 78 102 114 198 113 95 95 83 120 124 104 Producers’ Goods Pig iron ........................................................... Bituminous co a l........................................... Copper, U. S. m ines.................................... Tin deliveries................................................ Zin c*............................................................... * = Seasonal variation not allowed for. p=*Preliminary. r=Revised. 87* 99p 152 104p 146p 77 p 110 p 91 96 86 69 93 i0 7 ‘ 96 80p 80p 109 110 105 FEDERAL RESERVE AGENT AT NEW YORK 5 NOV. 1923 JUtY 1924 I n d e x e s o f B u s in e s s A c t i v it y W00UN5 & WORSTD S | Indexes of trade and general business activity com puted by this bank were generally lower in November than in October. Bank debits outside of New Y ork were below the un usually large total of October, but 1.8 per cent, larger than in November last year. In New Y ork City, how ever, debits continued unusually large, apparently re flecting activity in the security markets. Railway car loadings, both of merchandise and other freight, showed the usual seasonal decrease, but both in November and early December continued larger than a year ago. Indexes of wholesale trade and department store sales likewise decreased in November, but that of chain stores advanced and in December Christmas sales o f depart ment stores exceeded all previous records. Factory employment in New Y ork State remained little changed. The follow ing table gives this ban k’s indexes o f busi ness activity in percentages of the computed trend, after allowance for seasonal variation and, where necessary, for price changes. (Computed trend of past years =100 Per cent.) 1924 1923 N ov. Sept. Oct. Nov. Primary Distribution Car loadings, merchandise and m isc....... Car loadings, other...................................... W holesale trade, Second D istrict............. E xports............................................................ Im ports........................................................... Grain exports................................................ Panama Canal tra ffic................................. 105 108 100 83 100 42 144 103 100 102 106 106 86 125 108 98 103 111 106 201 103 102 105 91 102p lO lp 119P Distribution to Consumer Departm ent store sales, Second District. Chain store sales.......................................... Mail order sales............................................ Life insurance paid fo r............................... Magazine advertising.................................. Newspaper advertising............................... 96 97 85 113 105 100 101 92 103 110 99 93 96 93 103 112 100 92 92 97 90 107 99 92 100 100 99 111 105 105 99 110 98 102 102 107 101 106 92 103 100 108 90 87 94 92 101 110 91 105 92 102 94 General Business Activity Bank debits, outside of New York C ity. Bank debits, New York C it y ................... Velocity of bank deposits, outside of New York C it y ........................................ Velocity of bank deposits, New York City Postal receipts.............................................. E lectric p ow er.............................................. Em ploym ent, N. Y . State factories........ Business failures........................................... LEATHER | FURNITURE | MEN'S CLOTHING | CARPETS & RUGS | MACHINERY S HO ES | | WOMENS CLOTHING | COTTON GOODS CEMENT BRICK PIG IRON KNIT GOODS AUTOMOBILES RAILWAY EQUIP. ALL INDUSTRIES ! November Factory Employment In New York State and the July Low Point in Percentages of Employment in November 1923. decrease, coupled with the cessation of outdoor work and advent o f colder weather, has been accompanied by more marked indications o f considerable unemployment. The State employment office ratio o f workers wanted to workers applying fo r jobs declined from 82 per cent, fo r October to 69 per cent, fo r the first half o f December, the lowest since July. The preceding diagram compares November em ploy ment in leading industries o f the State this year with employment a year ago and at the summer low point. Occasional wage reductions continued to be reported in the textile industries, chiefly in New England, but rates in most other lines remained steady as has been the case for more than a year, despite considerable un employment. The diagram below indicates that the pres ent average weekly earnings o f factory operatives are close to the 1920 high level, while living costs have fallen considerably below this level. Factory office salaries, which advanced much more slowly than wages or the cost o f living up to 1920, continued to rise during the past year to the highest level yet reached. PER CENT ’ 91 102 E m ploym ent and W ages A fter increasing 5 per cent, from the summer low point, factory employment in New Y ork State showed practically no change from October to November. In the textile, steel, and a few other industries, there were further increases in working forces, but these were offset by reductions, partly seasonal, in apparel, shoe, holiday goods, and building materials industries. Compared with a year ago, when factory employment in the State was com paratively high, practically all the important industries in November show a reduction. F or all industries combined the reduction was about 10 per cent., representing approximately 130,000 workers. This Changes in Average Weekly Earnings of Operatives and Office Workers in New York State Factories and the Cost of Living in the U. S. (1914 = 100 Per cent.) 6 MONTHLY REVIEW, JANUARY 1, 1925 $5.60 B u ild in g $Z2Q $1.55 1 W J 4. III■ * 2 $.96 US. ENGLAND GERMANY PARIS FRANCE BELGIUM ITALY O UTSIDE PARI 5 Average Daily Wage Paid in November 1924 by a large American Industrial Corporation in Factories in this Country and Abroad. The value of new building contracted for in November was seasonably smaller than in October, but 19 per cent, larger than in November 1923, an increase equal to the largest shown fo r any month since January. Permits applied for, however, which precede contracts, were not only smaller in November than in October, but fo r 354 cities were 13 per cent, below a year ago. The chief increases in contracts occurred in the middle Atlantic, southeastern, Pittsburgh, and central western districts, where gains, according to the P. W . Dodge Corporation, ranged from 30 to 61 per cent, over last year. In New York City contracts continued above October and were 13 per cent, above the year previous, but for the district as a whole the total fell 12 per cent, under last year. The decline in permits was chiefly due to a drop o f 34 per cent, in New York City. Permits in western cities averaged about 10 per cent, below last year, but in the central and southern districts averaged about the same as in 1923. W ages in the United States and Foreign Countries Building Over F ifty Years Figures supplied to this bank by one o f many large American industrial companies maintaining factories in other countries afford a means of com paring wage levels in this country and abroad for precisely the same types o f labor engaged in the production of identical commod ities. The figures supplied are average daily wages paid in November in the com pan y’s various fac tories in this country, England, Germany, France, Bel gium, and Italy converted to dollars at prevailing rates o f exchange. The accom panying diagram compares these figures and indicates that the wages in the Am eri can factories are more than twice those in the next high est country, England, and approximately six times those o f the lowest country, Italy. It is noteworthy that the German factory ranks third in order o f highest wages paid. During 1923, however, when the mark was depre ciating rapidly, the wage rate in the German factory averaged as low as 50 cents a day. The course o f building through the last half century as shown by annual permit records for 7 selected cities, including about one-quarter o f the total urban popula tion o f the country, is presented in the accom panying diagram, together with an index of building in 50 cities since 1900, and the trend o f growth of urban popula tion. The figures for permits for 7 cities, which include those for Boston and New York from 1874, for Chicago from 1882, for Minneapolis from 1885, for Cleveland from 1888, for Philadelphia from 1894 and for San Francisco from 1895, were obtained from the m unicipal building departments through the cooperation o f the Federal Reserve Banks o f those cities A dju sted for changes in costs o f construction and reduced to per centages o f 1913, they make available for the first time a continuous record o f building growth extending back of 1900. PER c e n t : Annual Building Permits in 7 Selected Cities, 1874-1924, Compared with Growth of Urban Population in the United States, and Annual Permits in 50 Cities from 1900-1924. 1913 = 100 Per Cent. (Figures adjusted for Changes in Costs of Construction.) 7 FEDERAL RESERVE AGENT AT NEW YORK It will be observed that the index o f building in 7 cities follows a course closely similar to that of the index for 50 cities, and throughout the greater part o f the period increases at a rate approximately equal to that o f population growth. Beginning about 1910, however, building tended to decline, and during the war fell far below the population trend, leaving an accumulated shortage from which the recent activity appears to have been a normal consequence. C om m odity Trices Beginning about the first o f November this bank’s index of 20 basic commodities has advanced continuously and on December 20 stood at a level slightly higher than at any previous time this year. The advance was o f a general character, and among the various commodities included in the index which reached new high prices for the year were wheat, corn, wool, rubber, lead, copper, and steers. The advance was particularly strong in wheat, which rose 39 cents to $ 1 .8 3 ^ a bushel, the highest since 1921, and corn likewise reached a new high for recent years. Rubber and wool showed advances of 105 and 32 per cent, since early summer, and reached new high levels for recent years, while lumber, follow ing some decline in October, recovered strongly in late November and December. Metal prices were also generally higher, and copper above 1 4 ^ cents was the highest since July 1923. Outstanding exceptions to the general trend were cot ton, which continued to fluctuate around 23 to 24 cents, and sugar, which declined sharply under prospects o f an unusually large world crop. The accom panying diagram reflects the recent trend of this bank’s American index o f 20 basic commodities, and compares it with the movement of a similar index of British commodities. PER CENT. cost o f living increased 1 per cent., while this bank’s index o f the general price level, including not only wholesale and retail prices, but rents and wages also, likewise rose 1 per cent, to 182, a level, however, slightly lower than in November 1923. The follow ing table shows the changes in these various indexes, and in the Econom ist’s index o f British wholesale prices, since June o f this year and November a year ago. N ov. 1923 June 1924 N ov. 1924 145.7 183 152.0 172 168.6 142.3 180 144 6 169 168.2 *153 4 182 152.7 171 179.5 20 Basic Commodities (F. R . B. of N. Y .) . . . General Price Level (F. R B. of N. Y .) .......... Wholesale Prices, Dept, of L a b or..................... Coat of Living in U S .......................................... Econom ist (B ritish)............................................. ♦December 20. Business Profits Available financial statements of important m anufac turing and distributing concerns for the second and third quarters o f 1924 generally reflect the decline in production and trade that occurred in those quarters. The follow ing table, showing net profits o f 86 industrial corporations in different lines o f trade, indicates con siderable decreases in 1924, due to lessened profits in the automobile, steel, metals and mining, and machine man ufacturing industries. Profits o f oil companies, on the other hand, concerns engaged in the m anufacture of food and food products, and miscellaneous companies, while in some cases below 1923 in the second quarter, generally showed increases in the third quarter. Net profits o f telephone companies were larger than a year ago in the second and third quarters, and for all three quarters combined. Profits o f Class I railroads, on the other hand, while largest during the third quarter fo r any quarter since 1918, for the nine months fell somewhat below the figures fo r 1923. (N et profits in millions of dollars) 1924 1923 Group No. of C orpo rations M otor and accessories. . . Oil......................................... Food and food p rod u cts. Metal and m in in g........... Machine manufacturing . Miscellaneous.................... Total 7 groups.............. JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAV JUN JUL Al/Q SEP OCT MOV DEC 19£3 Class I railroads............... 1924- 13 12 13 12 12 12 12 9 9 M os M os of of 1st 2nd 3rd 4th 1st 2nd 3rd 1923 1924 Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. 35 11 28 11 10 5 7 43 16 43 12 11 6 6 25 10 40 11 10 5 2 17 2 43 10 4 3 1 31 19 43 11 8 5 4 18 14 31 13 8 5 5 17 13 17 14 8 5 7 103 37 111 34 31 16 15 66 46 91 38 24 15 16 86 72 201 107 137 103 80 121 35 36 35 30 35 185 262 277 255 203 94 81 347 296 37 36 101 108 188 287 724 678 359 328 434 410 370 359 319 404 11.72 10S2 Price indexes of 20 Basic Commodities in the United States and in England. (1913 = 100 Per cent.) The increase in prices since last summer, indicated by this bank’s index, was reflected also by the November figures of other standard indexes of prices. The Depart ment o f Labor index of wholesale prices rose 6 per cent, between June and November, and was slightly higher than at any time since October 1923. The index o f the W holesale Trade November sales o f reporting wholesale dealers in this district averaged 7 per cent, smaller than a year ago, partly due to fewer selling days this year than last. This bank’s index of sales fell from 103 per cent, o f the MONTHLY REVIEW, JANUARY 1, 1925 com puted trend or normal in October to 91 per cent, in November. The decrease in sales was particularly large in w om en’s apparel and shoes, but declines occurred also in the sales o f groceries, hardware, stationery, cotton goods, and jew elry. Trade in silks, drugs, machine tools, m en’s clothing, and diamonds, on the other hand, was larger than a year ago. The follow ing table compares November 1924 sales with those o f previous years. Total sales fo r the year 1924 fo r all stores in the dis trict will probably be about 4 per cent, larger than in 1923, compared with a gain in 1923 o f 8 per cent, over the previous year. D o l l a r V a lu e o f N o v e m b e r S a le s ( N o v e m b e r 1 9 2 3 = 1 0 0 P e r c e n t.) C o m m o d ity 1920 Diamonds................................... Dry goods................................... (а) Cotton............................. (б) S ilk...................................... Machine tools............................ Drugs.......................................... Stationery............................... Groceries.................................... Jewelry..................................... . Hardware................................... Clothing..................................... (а) Men’s ............................... (б) Women’s dresses............. (c) Women’s coats and suits Shoes.......................................... Weighted Average................. 1921 51 ■72 77 r 67 180 79 118 61 90 93 1923 100 110 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 77 73 85 105 115 95 99 87 T98 105 90 105 65 84 117 107 104 88 36 87 83 110 116 100 86 78 73 81 81 1922 100 91 100 110 102 87 In the case of apparel stores a large increase in sales was almost entirely due to increased store facilities, as it was generally reported that sales o f apparel, espe cially w om en’s, com pared less favorably with a year ago than other lines. Most department stores reported that customers showed a preference fo r moderately priced goods and articles such as home furnishings, rather than jew elry and novelties. 1924 108 107 91 123 104 103 94 93 92 90 89 104 80 78 85 Complete reports fo r November showed department store sales about equal to those o f the year previous, except in the large apparel houses, where store facilities have been greatly expanded during the year. Stocks in stores other than apparel stores on December 1 were somewhat smaller than a year previous. The follow ing table compares sales and stocks in November this year with the corresponding month o f previous years. 93 N e t S a le s d u r in g N o v . (N o v e m b e r 1 9 2 3 = 1 0 0 P e r ce n t.) Chain Store Sales 192 0 1921 1922 1923 1924 1920 1921 192 2 192 3 1924 November sales by most types o f chain stores con tinued larger than a year previous, due partly to the opening of new stores. Sales per store of ten cent, drug, and dry goods chains were also larger than last year, but those of grocery, tobacco, shoe, and candy chains fell below a year previous. The follow ing table gives the detailed figures for November as com pared with November of previous years. T y p e of Sto re P e r cent. Change in N u m b e r of Sto re s N o v e m b e r 1923 to N o ve m b e r 1924 1920 1923 1924 D r y g o o d s .......... T e n c e n t ............. G r o c e r y ............... S h o e ..................... C a n d y ................. T o b a c c o .............. D r u g .................... + 1 9 .6 + 7 .4 + 1 6 .5 + 2 3 .8 + 6 .9 + 4 .9 — 1 .6 65 73 71 104 78 100 88 65 74 69 90 74 93 88 80 86 83 93 83 95 93 100 100 100 100 100 100 100 129 113 112 112 103 103 100 — — — + 7 .8 5 .4 3 .6 9 .9 3 .4 1 .7 1 .7 74 73 85 100 113 — 1 .3 T o t a l ............... +1 4 2 D o l l a r V a lu e o f N o v . S a le s (N o v . 1 9 2 3 = 1 0 0 P e r c e n t) 1921 1922 P e r c ent. Change in S a le s per Sto re N o v e m b e r 1923 to N o ve m b e r 1924 + + E l s e w h e r e , 2 d D i s t ................... M a il o rd e r h o u se s 92 106 88 94 102 107 99 98 86 98 81 86 90 89 92 87 92 102 92 89 93 98 98 97 100 100 100 100 100 100 100 100 100 105 104 101 98 101 100 113 98 108 101 116 130 104 99 87 90 101 88 88 92 97 98 84 91 98 94 87 91 100 90 88 100 100 100 100 100 100 100 100 99 103 103 108 98 99 92 141 94 103 87 67 93 91 100 100 102 109 99 90 91 100 104 The distribution o f sales in November by m ajor de partments, as compared with the year previous, is shown in the follow ing table. The average sales check was $3.18, com pared with $3.21 in November 1923. P e r cent. Change i n S a le s over N o v e m b e r 1923 P e r c e n t. S a le s o f each D e p t, to S a le s o f a ll D e p a rtm e n ts + 1 0 .2 + 9 .2 + 8 .5 + 4 .0 + 2 .6 + 2 .5 + 0 .3 — 0 .9 — 2 .8 — 5 .5 + 1 .4 2 .9 2 .9 5 .6 8 .7 1 2 .9 2 .4 3 .0 1 8 .6 1 0 .9 3 .6 2 8 .5 M e n ’s a n d B o y s ’ w e a r ................................................ W o m e n ’s r e a d y - t o - w e a r a c c e s s o r i e s ........................ D epartm ent Store Business Reports from 17 leading department stores in New Y ork City and Newark on holiday business from Decem ber 1 to 24 show sales 5 ^ per cent, larger than last year, partly because there was one more selling day in December this year previous to Christmas. D uring the early part o f the month sales ran behind those o f last year, but in the week before Christmas showed a sub stantial increase and were larger than a year ago. Stock on h an d Dec. 1 ( D e c . 1, 1 9 2 3 = 1 0 0 P e r c e n t.) H o m e f u r n i s h i n g s ........................................................ W o m e n ’s a n d M i s s e s ’ r e a d y - t o - w e a r ...................... Index of the M o n th ly Review For the convenience of readers of the Review, an index of contents for 1924 has been prepared and may be received by addressing the Federal Reserve Agent, Federal Reserve Bank, New York.