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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 Business Conditions in the United States C T IV IT Y in m anufacturing industries decreased in November and December, while production of im portant minerals continued at a high level. Wholesale prices declined to the lowest level in more than two years. Firm er money conditions in December reflected the usual seasonal requirements in connection with holiday and end-of-year activity. A P r o d u c t io n Factory employment and pay rolls declined in No vember, reflecting decreased activity in many important industries, but owing to the large output o f minerals, the Federal Reserve B oa rd ’s index of production in basic industries advanced somewhat during the month. Production o f bituminous coal and petroleum in recent weeks has exceeded all previous records, and output o f copper and zinc during the month o f November was in unusually large volume. P ig iron production also in creased slightly in November, but steel mill operations in that month and in December were considerably reduced. Automobile production, which is not included in the index of production in basic industries, declined sharply in November for the second consecutive month and was smaller than in any month since A ugust 1925. Textilemill activity was maintained during November at ap January 1, 1927 proximately the same rate as in October. The value of building contracts awarded showed less than the usual seasonal decline in November and was slightly larger than in November 1925. Awards fo r the first half of December likewise exceeded those reported in the cor responding period o f last year. A g r ic u l t u r e The Department o f A griculture estimates the value o f 55 principal crops raised in 1926, on the basis o f December 1 farm prices, at $7,802,000,000, compared with $8,950,000,000 in 1925. O f the decrease in the value o f crops the decline in the value o f the. cotton crop accounts fo r $580,000,000, and that o f the corn crop for about $260,000,000, while the total value o f the wheat crop increased by nearly $40,000,000. T rade In November distribution o f merchandise at whole sale and retail showed the usual decline from the activity earlier in the autumn. Compared with a year ago, how ever, wholesale trade was in about the same volume and retail trade larger. Sales o f department stores were about 7 per cent larger than last year and those o f lead ing mail order houses were 6 per cent larger. Stocks of merchandise carried by wholesale firms declined further in November and were smaller at the end o f the month than a year ago. Inventories o f department stores, how- FFR C.Em: PER CENT Index of Value o f Contracts awarded in 7 Federal Reserve Dis* tricts, reported by the F. W . Dodge Corporation (1919 100 per ce n t). Latest figure, November. Indexes of Factory Employment and Factory Payrolls in Manu facturing Industries (1919 average = 100 per cent). Latest figures, November. MONTHLY REVIEW, JANUARY 1, 1927 2 PERCENT TOTAL RESERVEBANK * CREDIT P l JS2 . V15CC1UNTS TDK T1EMBEn S M 5 / s / \ \ \ , V.5. QECURT7 £ 5 V v ^ A ’V j f J _______ 1922 ** /> ---- e J09 / m c ■.PTAWES \ 1923 r 1924- 19Z5 1926 Index o f United States Bureau o f Labor Statistics. (1913 = 100 per cent; base adopted by Bureau). Latest figure, November. Reserve Bank Credit: M onthly Averages o f Daily Figures for 12 Federal Reserve Banks. Latest Figures are Averages o f First 21 Days in December. ever, increased slightly more than is usual in November. Freight car loadings declined considerably in November and December from the record high levels of October, although the movement of coal continued heavy. but other money rates showed little change. Rates on 60 and 90 day bills were advanced % per cent in De cember, but yields on short-term Treasury obligations declined, accompanying a shortage in the supply of these securities and a general advance in bond prices. Time money and commercial paper rates showed no quotable change. P rices The general level of wholesale prices declined in No vember and prices of many important basic commodities decreased further in the first half of December. The Bureau of Labor Statistics index of wholesale commodity prices for November was 148, the lowest level since July 1924. Bituminous coal prices increased sharply during October and the early part of November, but in recent weeks have declined by about two-thirds of the previous rise. Petroleum prices have been reduced since early in November, and there have also been declines in pig iron, copper, zinc, lead, and silver. The fall in prices of agri cultural commodities, which has lasted with few inter ruptions for over a year, continued in November. Grains, however, have risen somewhat since the latter part of that month. The clothing-materials and house-fumishings groups have declined steadily in price during recent months to the lowest levels of the post-war period. B a n k C redit Loans and investments of member banks in leading cities increased by over $100,000,000 during the four weeks ending December 15, reflecting in part the growth in the demand for credit and currency that usually occurs in December. The increase was in loans on secur ities, while commercial loans declined somewhat from their seasonal high point in November. The volume of Reserve Bank credit showed the usual seasonal increase after the middle of November but was lower than in the corresponding period of 1925, partly because there was a smaller increase this year in the amount of money in circulation. Money Market Holiday and year-end demands for funds resulted in higher call loan rates in December than in November, M oney Rates at New York Dec. 28 1925 Time M oney— 90 d a y ............................. Prime Commercial Paper........................ Bills— 90 day unendorsed........................ Treasury Certificates and Notes Maturing March 15............. Maturing June 15................. Federal Reserve Bank o f New York— Rediscount R ate.................................... Federal Reserve Bank of New York— Buying Rate for 90-day B ills............. *6 4 K -5 4 ^ -4 ^ 3H N ov. 29 1926 *4 y2-5 k 4 ^ -4 % 4H 3H Dec. 27 1926 * 5 14-Q 4% 4H 3 H -3 H 3.50 3.54 3.10 3.38 2.97 3 .0 2 3M 3% 4 4 3% 3H * = Prevailing rate for preceding week. The principal cause of the firmer call loan market was the usual large increase in currency requirements for the holiday trade. New York City banks withdrew from the Reserve Bank approximately $45,000,000 of addi tional currency in the latter part of November and the first half of December, and an additional loss of funds to the New York money market was caused by outgoing transfers to replace similar currency withdrawals from banks in other districts. This double drain on New York banks necessitated a substantial increase in the use of Reserve Bank credit to maintain reserve balances at the required levels. Around the middle of December there were the usual heavy movements of funds incident to the Treasury tax period operations, with a consequent minor unsettle ment of the call money market. The redemption of ma turing Treasury certificates and the payment of interest on Government obligations on the 15th exceeded actual collections of income taxes by $117,000,000, and a sim ilar, though smaller, excess of Treasury disbursements in other districts resulted in an inflow of funds from other centers. Consequently, a considerable surplus in actual FEDERAL RESERVE AGENT AT NEW YORK KH1 C. / A \ / V/ A V/ \ J CLOSINGCALL LOANRATE 3 resulted in outgoing transfers from New York, as well as a direct loss of funds to banks in this district, which coincided with the time of largest demand for holiday currency. The movements of bank reserves, call money rates, and bills discounted for New York City banks are shown in the accompanying diapam. A contraction in currency circulation usually begins immediately after Christmas, but preparations for yearend statements and disbursements tend ordinarily to keep money rates firm in the final week of December. M ILLIONS o f DOLLARS ) ............... ) M em ber B a n k C re d it . . . |R e q u ire d ■. m -i |Reserves I ] EXCESSo r DEf7(77 IN AVERAGERESERVES /V.YC. B A N K s MILLIONSofDOLLARS Loans on stocks and bonds by all reporting member banks increased $250,000,000 in the latter part of Novem ber and the first three weeks of December, accompanying rising security prices, and on December 22 were less than $200,000,000 below the high point reached at the end of last year. The greater part of the increase was in the loans of New York City banks. Commercial loans showed a gradual seasonal decline from the high level of November in this district and elsewhere, while invest ments showed little net change. C om m ercia l P ap e r M a r k e t MILLIONSofDOLLARS The commercial paper market was seasonally quiet during December. Although the demand for paper con tinued fairly active in interior markets, the total sales volume was limited due to the small supplies of new paper being created. Dealers continued to offer paper at 41/4-4% per cent, but the bulk of the business was at 4% per cent. The volume of commercial paper out standing through 26 dealers at the end of November showed a further decline of 5 per cent to $566,000,000, an amount 15 per cent below that of a year ago. While a decrease in open market outstandings is not unusual at this time of the year, this most recent decrease fol lowed an almost continuous decline during the past two years, so that total outstandings at the end of November Gain or Loss o f Funds to Leading New Y ork City Banks, Bor rowings from the Federal Reserve Bank, Reserve Position, and Closing Call Loan Rate, Showing Effects of Holiday Currency Withdrawals and Treasury Tax Period Operations. reserve balances of leading New York City banks de veloped, notwithstanding a reduction in borrowing from the Federal Eeserve Bank to the lowest level since the latter part of November, average reserves for that re serve week were carried somewhat above requirements, and call loan rates declined temporarily. During the following week the collection of income tax checks greatly exceeded Government disbursements, and Outstanding Commercial Paper o f 26 Dealers, and Commercial Loans of A ll Reporting Member Banks. MONTHLY REVIEW, JANUARY 1, 1927 4 were at the lowest level in at least 8 years. A s the accom panying diagram shows, commercial loans o f banks throughout the country, which also include banks’ hold ings of commercial paper, increased about $500,000,000 during the two years. M IO S'S O FILDLO LLN AR B il l M a r k e t Seasonal drawings of bills continued to increase the supply in the market rapidly early in December, while the investment demand fo r bills diminished, due to the somewhat firmer money conditions prevailing. As a result, dealers’ portfolios reached by the end o f the first week o f December approxim ately 100 million dollars, the largest total since May. Reflecting these conditions, open market rates on 60 and 90 day bills reverted to the level current previous to the November reduction, mak ing the offering rate on 90 day unindorsed bills 3 % per cent. A t the higher rate level, the demand im proved slightly, owing principally to buying for foreign ac count, dealers’ portfolios were reduced, and in the final week of the month the 90 day rate was reduced to 3 % per cent. Security Markets F ollow ing irregular movements in the latter part of November, representative price averages of both indus trial and railroad shares advanced in December to approxim ately the highest levels of the year. Trading was broader and around the middle of the month the daily turnover averaged close to 2,000,000 shares. Tow ard the close of the month, however, the tendency was reactionary. Further strength and activity in the bond market carried average prices of high grade corporation bonds to the highest levels in at least 10 years. United States Government securities likewise were strong and four issues, the Fourth Liberty 4 % ’s, and the Treasury 3 % ’s, 4 ’s, and 4 ^ ’s reached the highest levels since issuance, and other issues generally sold at the highest prices o f the year. A verage prices of foreign bonds rose to new high levels since the W ar, led by advances in Belgian and French issues. New security offerings continued large in December but were in smaller volume than in the previous month or in December o f last year, both periods of exceptionally heavy security flotations. Public utility offerings were the largest class, follow ed closely by industrial financing which included a $50,000,000 issue of Standard Oil Company of New Y ork debentures. State and municipal financing was heavier than in several months, due partly to the issuance during the month of $20,000,000 P ort of New Y ork A uthority bonds in connection with the pro jected H udson R iver bridge at New Y ork City. Foreign financing was slightly larger than in No" ember o f this year or in December o f last year. Gold Movement Gold imports during November reached a total o f $16,700,000, due chiefly to the receipt o f $5,000,000 from Mexico, $4,900,000 from Australia, $4,000,000 from Gold Imports and Exports in 1926 Compared with 1925. Japan, and $1,000,000 from H ong K ong. The first three o f these shipments continued movements from those countries in previous months. Gold exports amounted to $7,700,000, o f which $6,000,000 was sent to Canada in consequence o f the rise in Canadian ex change. The autumn export movement to Canada was, however, much smaller this year than last, as shown in the accom panying diagram, which compares gold move ments this year and last, and indicates the principal sources or destinations o f the larger movements during the two years. The net im port o f gold fo r the first 11 months o f 1926 was $88,000,000, as com pared with a net export o f $.136,000,000 last year. D uring the first 28 days o f December, im ports at the Port o f New Y ork totaled $6,500,000, which included approxim ately $5,000,000 from Chile and $1,000,000 from England. E xports amounted to $1,700,000, o f which $1,000,000 was sent to Java. A n im port of $2,000,000 from Mexico was also received, and additional shipments from Japan were announced. The Foreign Exchanges The month o f December was marked by a general rise in the exchange rates o f all the leading European coun tries now on the gold standard. The pound sterling, which was as low as $4.8413 in November, did not fall below $4.8444, and near the close o f the year was above $4.8480. The German mark, from a November low of 23.73 cents, rose to 23.84 cents, two points above par, and a similar rise above dollar parity took place in Swiss francs. The Netherlands florin and the Swedish crown also were firmer, while the belga was quoted throughout the month slightly above par. The French franc rose from 3.71 cents at the begin ning o f the month to 4.07 cents on the 20th. This renewed rise was followed, Decem ber 23, by the an nouncement that the Bank o f France was prepared to buy and sell at the rate o f 25.19 francs to the dollar, or just under 3.97 cents to the franc. The lira rose from 4.25 cents on the first o f December to 4.60 cents on the 13th, but thereafter was quiet at about 4.50 cents. The Norwegian rate declined slightly during the month. FEDERAL RESERVE AGENT AT NEW YORK CZN7S 7j---- 19Z 4 Belgian, 192,5 French and Italian Exchange Rates at New Last Quotations in Each W eek, 1924 to 1926. York. A fte r several months o f de facto stabilization just under parity, it was announced that the Danish crown would return to the gold standard de ju re with the first day of 1927. Denmark thus becomes the fifth country to take this step form ally since the beginning o f 1926, the others being Finland on January 1, Chile on January 11, Canada on July 1, and Belgium on October 25. The Canadian dollar, which stood above the United States dollar in early December, declined to a small discount. The rupee, which had been heavy in Novem ber, rose moderately toward the end o f the y e a r ; but yen declined to somewhat lower levels. The price of silver scarcely moved during the month, and the silver exchanges fluctuated in a correspondingly narrow range, the H ong K ong rate being somewhat stronger than that on Shanghai. The following table shows the current quotations o f a number of exchanges, compared with those prevailing a year ago. (In cents per unit of national currency) December 22, 1925 December 22, 1926 Europe A ustria...................................................... B elgium ..................................................... D enm ark.................................................. E ngland.................................................... F rance....................................................... G erm any................................................... H ollan d..................................................... Ita ly........................................................... N orw ay..................................................... Spain.......................................................... Sweden...................................................... Switzerland.............................................. 14.05 4.53 24.83 484.56 3.64 23.81 40.14 4.03 20.29 14.13 26.84 19.31 14.05 13.91 26.63 484.75 3.97 23.82 39.97 4.46 25.15 15.24 26.72 19.33 America Argentina................................................. Brazil......................................................... Canada...................................................... 41.47 14.27 99.92 41.35 11.85 99.92 Jlsta India.......................................................... Japan......................................................... Shanghai................................................... 36.50 43.15 75.88 36.00 48.75 58.63 ' A m ong the gold standard countries, it will be noted that rates are generally slightly higher, while among the other countries, only Brazil and China are materially 5 lower than a year ago, the latter reflecting the fall in the price o f silver. Rates for Norway, Argentina, and Japan are almost at parity, although no form al action towards stabilization has been taken by those countries. Several other countries have maintained stability through the year, or over the latter part of the year, without form al announcement o f either de facto or de jure stabilization. A m ong them may be mentioned Jugo-Slavia, whose dinar has remained at 1.77 cents for many months; the Bulgarian lev has been stable at about .72 cents, over a longer period, and the Polish zloty has fo r several months been quoted at about 11 cents. The progress o f currency reform in 1926 was there fore more general than would be appreciated merely from the list o f those countries which form ally returned to gold in the course o f the year. In a considerable group o f countries the success o f de facto stability has furnished strong evidence of capacity fo r de jure stabilization; while in others reform s have been under taken in recent months, particularly in the government finances, which are the necessary preliminaries of eventual monetary reconstruction. Changes in Central Bank Rates Two changes in the discount rates of foreign central banks were announced during the month. On December 10. the Bank o f Poland reduced its rate from 10 per cent to 9 % per cent and on December 16, the Bank of France from 7 % per cent to 6 % per cent. Foreign Trade Exports of merchandise in November valued at $481,000,000 were the largest since October 1925. They were $25,000,000 larger than in October of this year and were $33,000,000 larger than in November 1925, notwith standing a considerable decline in com modity prices during the year. Cotton exports in quantity were the largest in any month since February 1915, but in value were slightly smaller than in October, and 19 per cent smaller than in November of last year. Grain shipments continued to decline, both in quantity and in value, but exports of m anufactured and semi-manufactured goods showed considerable increases, both as com pared with the preceding month and with November 1925. Imports valued at $376,000,000 showed little change from October or from a year ago. The value o f raw materials im ported was smaller than in November 1925, but this decline was offset by increases in all other groups o f merchandise. Crude rubber imports in quantity were only slightly under the large volume o f March 1926, and were 14 per cent larger than a year ago, but in value were undoubtedly smaller than in November 1925. The quantity o f raw silk imported in November was 21 per cent larger than a year ago, and was the largest for any month on record. Indexes of Business Activity This ban k’s indexes o f business activity in general were lower fo r November than fo r October, and in a number o f cases were lower also than those of a year ago. MONTHLY REVIEW, JANUARY 1, 1927 6 Retail sales were fairly large, but loadings o f merchan dise and miscellaneous freight, and bank debits in this district and throughout the country showed more than the usual seasonal declines. (Computed trend of past years=100 per cent) 1925 Primary Distribution Car loadings, mdse. & m isc.. Car loadings, other............... E xports.................................... Im ports.................................... Grain exports......................... Panama Canal traffic........... Nov. Sept. Oct. Nov. 106 104 103 107 106 104 107 92 124 71 84 113 96p 125p 70 84 86 120 40 91 Distribution to Consumer Department store sales, 2nd Dist. Chain store sales............. ................ Mail order s a le s .. ............................ Life insurance paid f o r ................... Real estate transfers....................... Magazine advertising...................... Newspaper advertising................... 99 99 116 112 110 109 113 General Business Activity Bank debits, outside of N. Y . C ity .......... Bank debits, New York C ity ..................... Bank debits, 2nd Dist. excl. N. Y. City Velocity of bank deposits, outside of New York C ity ............................................ .. Velocity of bank deposits, New York City Shares sold on N. Y . Stock Exchange*. . Postal receipts............................................... Electric pow er............................................... Employment in the United States........... Business failures............................................ Building perm its........................................... New corporations formed in N. Y. State General price level........................................ variations not allowed for. 1926 121 112 92 109 95 126 116 103 106 107 111 110 102 120 98 127 173 125 107 236 99 108 104 102 166 125 187 123 105 105 99 119 109 102 108 111 113 122 108 102 iii 108 106 112 102 116 104 94 133 122 102 111 137 112 186 186 185 p=Preliminary Production Irregular tendencies in principal lines o f production in November, both as com pared with October and with November of last year, are shown by this bank’s indexes o f production. Cotton consumption was somewhat larger than in October, and nearly 8 per cent larger than a year ago, and m ill consumption o f silk and the activity o f woolen mills, though slightly smaller than in the previous month, were larger than last year. Bituminous THOUSANDS OFCARS MILLIONS OF TON 5 6 1925 1926 117 99 115 146 98 112 (Computed trend of past years=100 per cent) 102 98 120 105 129 189 98 117 103 107 169 100 coal production exceeded even the high level ol a year ago when the anthracite strike was in force, and reached the highest levels on record, reflecting at least in part the effects o f the British coal strike. Steel ingot output, however, was 9 per cent smaller than in October and 5 per cent smaller than a year ago, follow ing the main tenance during the spring and summer o f a much higher rate o f activity than in either o f the two previous years. Further curtailment occurred in the automobile indus try, and the production o f passenger cars in November was one-third smaller than a year ago. This bank’s indexes o f production, in which allowance is made fo r seasonal variations and year-to-year growth, are shown below. Producers' Goods Pig iro n ........................................................... Steel ingots..................................................... Bituminous coa l............................................ Copper, U. S. m ines..................................... Tin deliveries................................................. Z in c.............................................................. Petroleum ....................................................... Gas and fuel o il............................................. Cotton consum ption.................................... W oolen mill a ctiv ity * .................................. Leather, sole................................................... Silk consum ption*........................................ Consumers' Goods Cattle slaughtered........................................ Calves slaughtered........................................ Sheep slaughtered......................................... Hogs slaughtered.......................................... Sugar meltings, IJ. S. p orts........................ Wheat flour.................................................... Cigarettes....................................................... T obacco, manufactured.............................. Gasoline........................................................... Newsprint....................................................... Paper, total.................................................... Boots and shoes............................................ Anthracite coal.............................................. Automobile, all.............................................. Automobile, passenger................................ Automobile, truck............... ......................... *=Seasonal variation not allowed for. THOUSANDS OF BALES N ov. Sept. Oct. Nov. 102 110 110 104 118 111 119 100 96 101 123 102 73 121 109 116 104 108 93 116 116 93 107 93 132 88 74 120 I ll 107 109 109 96 118 118 98 98 103 126 104 74 130 108 103 129 114 124 116 93 104 89 85 99 83 105 71 96 133 120 120 90 89 ** 156 163 130 113 97 106 111 132 100 110 77 112 140 147 129 91 llO r 106 144 151 115 101 102 102 90 144 93 111 70 101 142 127 125 86 100 98 112 112 110 101 107 105 82 126 86 119 69 101 **=Strike. p=Preliminary. io2 102p 123 lO lp i29 i29 93 95p 90 105 104 110 r=* Revised. HILLIONS O F TON 5 70- 600 60 m e 1 9 2 15 1 \V \ ^ \ K 1Z5 ./— v/ y 1924\ | 50 -\ < */ / ■ \ 1.92.5 / 40 m \V \ \ \ \^\ & SJ' 7/ 'V I5 y 1 9 2 4 ''*- \ 30 19 Z4- 20 F R O C>UCT|0*\ STE E L i n g o t ;5 i . . i J- ?■ n A- M- J- J- A- 5- O- N D C OT TON 1 CON 31 M P T lQ t 4 B ir u n 10 COAL INOUS m o D u C T iO H "J- F' jT A- M J J- A- 5- Q- N DJ- F M- A M J- J- A- 5 O- J* D J F M A M J J A S O N D Production of Steel Ingots, Automobiles and Bituminous Coal and M ill Consumption o f Cotton in 1926, Compared with 1924 and 1925. FEDERAL RESERVE AGENT AT NEW YORK W a g e s a n d E m p lo y m e n t 7 PER CENT. Office w orkers’ earnings have continued to rise dur ing the past year along with the earnings o f factory operatives, according to the annual computation made by the New Y ork State Department of Labor. The accom panying diagram indicates that office salaries, which fo r a number o f years during and follow ing the W ar increased much less rapidly than the cost o f liv ing, have now reached a level which gives a noticeable increase in purchasing power com pared with pre-war conditions. Earnings o f factory operatives, however, continue to show a much larger gain in purchasing power than those o f office workers. PER CENT. Agricultural and N on-Agricultural Prices Since 1921 Bureau o f Labor Statistics Indexes; 1910-1914 average = 100 per cen t). (U . portant change in the past three years. D uring period textile prices have declined substantially, moderate price reductions have occurred in metals house furnishings, but fuel prices have advanced, other groups have shown little net change. S. this and and and Building Average W eekly Earnings o f Factory Operatives and Factory Office W orkers in New York State and the Cost o f Living in the United States. (1914 = 100 per cen t). F actory employment showed a 1 per cent decline in New Y ork State from October to November, whereas last year a moderate increase occurred. Consequently, the number employed in November was 3 per cent smaller than a year previous. The principal reductions in ac tivity which cannot be attributed to seasonal changes were in the metal working industries. W orking forces in iron and steel, brass and copper, machinery, railway equipment, and automobile factories showed average reductions ranging from 2 to 5 per cent com pared with October. Commodity Prices The Department o f Labor general index o f wholesale prices declined in November to the lowest point since the summer o f 1924, and this ban k’s weekly index o f the prices o f 20 basic commodities declined during the first three weeks o f December to the lowest levels since 1922. A s the accom panying diagram shows, price movements in recent months have continued to be chiefly in agri cultural products. The Department o f Labor index o f agricultural prices has declined nearly 14 per cent from A ugust of last year, when the high point o f the past five years was reached, to the lowest level since the sum mer o f 1924. The index o f non-agricultural products, while somewhat lower than a year ago, has shown no im- The volume o f building and engineering contracts awarded in 37 states east of the Rockies in November was 3 per cent larger than a year previous, follow ing decreases from last year in each o f the previous 5 months. F or the 11 completed months o f this year, total contract awards were 6 per cent larger than a year ago, reflecting the very heavy building program o f the first part of this year. In the New Y ork and New Jersey district November building contracts were 27 per cent smaller than a year ago, but the total fo r the 11 months period was 11 per cent larger than last year. The demand fo r building materials fell off consider ably in November. New business in softwood lumber, reported by the National Lum ber M anufacturers A sso ciation, declined about 25 per cent below the volume of a year previous, although, because o f heavy demand earlier in the year, total orders fo r the first eleven months o f the year remained larger than in the corre sponding period o f 1925. Structural steel sales also have been considerably smaller in recent months than a year previous. Wholesale Trade Sales o f nearly 200 reporting wholesale houses in this district during November averaged 10 per cent lower than a year ago, despite the additional selling day this year. The decrease, as in previous months, was largely due to smaller sales o f clothing and textiles. Sales o f m en’s clothing had an unusually large year-to-year decrease, and sales o f w om en’s coats and suits continued much smaller than a year ago. The decline in dress MONTHLY REVIEW, JANUARY 1, 1927 sales, however, was smaller than in any month this year. Leading silk houses and cotton commission houses re ported sales considerably smaller than a year ago, but job bers’ sales of cotton goods were slightly larger for the first time in a year. Wholesale grocers reported the smallest sales for any November in the last eight years, and machine tool sales remained considerably below the moderately high level o f a year ago, but paper and jew elry sales showed the largest increases since June, and shoe sales were the largest for the month of November in five years. Comm odity Percentage Change November 1926 from October 1926 Net Groceries..................... M en’s clothing........... W omen’s dresses. . .. W om en’s coats and suits Cotton goods— Jobbers. Cotton goods — Com mission........................ Silk goods....................... Shoes................................ Drugs............................... Hardware........................ Machine tools................ Stationery....................... P aper................................ Diam onds........................ Jewelry............................ — 4 .2 — 4 1 .8 — 49.1 — 62.4 Weighted A verage... — 21.2 —12.0 — 4 .4 — 2 .7 — 5 .0 — 2 3.7 — 8 .5 + 3 .6 — 2 .7 — 5 .9 — 22.3 +22.0 Stock end of month + 6 .9 Percentage Change November 1926 from November 1925 Net — 14.0 — 9 .4 — 18.6 — 6 .7 — 24.2 + 0 .7 + 1 6 .1 * — 12.5 — 16.9 — 0.1 — ’O }-4 .7 + 8.0 — 4 .5 — 2 .9 —11.0 — + — + 0 .9 6.3 5 .6 6 .5 Stock end of mon th — 1.3 Collec tions A cct’s Receiv able — 9.5 +14.1 — 7.6 — 3.2 — 5.3 — 8 .9 — 1.7 — 21.5 — 8.3 + 9 .3 * — 16.5 + 6.4 + 9.1 — 4.3 + 2.0 “ '6 “ + 0.9 — 5.9 + 5! 6 + 318 + 7 .7 — 9 .5 f-1 .6 + 0 .7 } + 6.3 5.G * = Quantity not value. F inal reports on November business showed an aver age increase o f nearly 7 per cent over a year ago in department store sales, 9 per cent in apparel store sales, and 6 per cent in sales o f leading mail order houses. A considerable part of these increases may be attributed to one more selling day in November this year, however. Stocks o f merchandise in department stores at the end of November were 1 % per cent larger than a year previous, and the ratio o f sales to average stock on hand during the month was slightly higher than in November 1925. Collections on charge accounts were somewhat smaller than last year, and accounts outstand ing at the end o f the month were 10 per cent higher. Instalment collections were larger than a year ago, how ever, and accounts receivable showed little change. November sales and stocks in the principal depart ments are compared below with those o f a year ago. Books and stationery.............................. Shoes........................................................... M en’s and B oys’ wear............................. Furniture.................................................... H osiery........................................................ Luggage and other leather good s......... W om en’s ready-to-wear accessories___ Linens and handkerchiefs....................... M en’s furnishings..................................... Home furnishings..................................... Toys and sporting goods......................... W omeu’s and Misses’ ready-to-w ear... Silks and velvets....................................... Toilet articles and drugs......................... Cotton goods............................................. Silverware and jew elry............................ Woolen goods............................................ Musical instruments and rad io............. Miscellaneous............................................ N et Sales Percentage Change Novem ber 1926 from November 1925 Stock on Hand Percentage Change November 30, 1926 from November 30, 1925 + 1 9 .4 + 1 8 .9 + 1 8 .7 + 1 7 .4 + 1 3 .9 + 1 3 .8 + 1 3 .1 + 1 2 .7 + 1 0 .7 + 9 .4 + 9.1 — 6.8 + 1.2 + 4 .2 + 4 .1 — 0.1 — 0 .5 + 0.2 + 5 .6 — 5 .8 + 4 .1 + 0.8 + 2.1 + 6.1 + 1.3 — 3 .2 — 6 .5 + 5 .9 + 5 .7 + 4 .7 + 4 .5 — 14.2 + 2.0 — 3 9.0 — 5 .7 — 10.4 —20.6 — 3 .4 Department Store Trade Reports from leading department stores in New Y ork and vicinity on sales from December 1 to 24 inclusive, indicate that December sales in this district will average about 5 per cent larger than last year, and will substan tially exceed sales in any previous December. This would make total sales for the year 4 per cent larger than last year, com pared with an increase of 5 % per cent in 1925. Percentage Change November 1926 from November 1925 Locality Net Sales Stock on hand end Collec of month tions* A cct’s Receiv able* — 5 .7 — 0 .6 + 1 2 .2 + 9 .8 + 0 .2 + 2 1 .4 New Y o r k ........................................................... Buffalo................................................................. Rochester. . ........................................................ Syracuse ........................................................ Newark................................................................ Bridgeport........................................................... Elsewhere............................................................ Northern New York S ta te ......................... Central New York State............................. Southern New York State ..................... Hudson River Valley D istrict. ............. Capital D istrict. .......................................... Westchester D is tr ic t............................... + 6 .3 + 3 .2 + 4 .7 + 2 .3 + 1 2 .1 + 1 1 .3 + 5 .4 + 1.0 — 2 .6 + 6 .7 + 1 1 .8 — 1.0 + 1 9 .7 + 1.0 — 3 .9 + 4 .3 — 11.4 + 6 .3 + 4 .7 + 8 .9 All department stores...................................... + 6 .7 + Apparel stores.................................................... Mail order houses............................................. + 9 .4 + 6 .3 + 2 2 .0 1.5 + 8 .9 + i3 !o + 3 .6 — 0 .7 — 1.5 + 1 0 .1 Chain Store Sales Leading chain store systems reported fo r November the unusually large increase o f 10 per cent in average sales per store com pared with a year ago. A part of the increase was due to the extra selling day this year, and the less rapid opening of new stores, which have smaller average sales than established units, accounted for a part o f the increase in some lines. Variety, drug, and grocery chains continued to show the largest gains in total volume o f business, but all types reported substantial increases over last year in November. Percentage Change November 1926 from November 1925 Type of Store Number of Stores T otal Sales Sales per Store + 1 3 .2 + 3 4 .0 + 1 0 .1 + 8 .0 + 7 .0 + 6 .7 + 1 0 .4 + 3 3 .7 + 2 4 .5 + 2 4 .2 + 1 5 .3 + 1 2 .1 + 1 1 .6 + 9 .7 + 1 8 .1 — 7.1 + 1 2 .8 + 6 .7 + 4 .7 + 4 .6 — 0 .7 + 9 .9 + 2 0 .8 + 1 0 .0
@FedFRASER