The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MONTHLY REVIEW o f C r e d it a n d B u s in e s s C o n d it io n s Second Federal Reserve District Federal Reserve Agent Federal Reserve Bank, New York Business Conditions in the United States R O D U C TIO N and trade continued in large volume during A pril. There was some slackening o f busi ness activity in the latter part o f the month and during the early weeks of May, partly on account of sea sonal influences. P roduction P The Federal Reserve B oard's index of production in basic industries declined about 1 per cent, in A pril. Production of lumber, anthracite coal, and mill con sumption of cotton decreased, while there were increases in the output o f pig iron and petroleum. There was a further increase in the value of building contracts awarded in A p ril but the value o f building permits is sued in 168 cities was 16 per cent, less than the record figures of March. The decrease was due chiefly to a curtailment of new projects in New York, as the aggre gate value of permits at other reporting cities showed an increase of 20 per cent. Car loadings continued to be much larger than in the corresponding weeks o f pre vious years, owing chiefly to heavy shipments o f manu factured goods. In spite of present heavy traffic, the shortage o f freight cars has largely disappeared. Employment at industrial establishments continued to increase during A pril, although plants in eastern States reported some reductions in their forces and there was an increase in those States in the number of concerns working part time. Increases in wage rates ^ER CENT. Index of Production in Basic Industries— Combination of 22 Individual Series Corrected for Seasonal Variation (1919 average = 100 per cent.) June 1, 1923 were announced by many concerns, and average weekly earnings of factory workers increased about 1 per cent. T rade Wholesale and retail trade were somewhat smaller in A pril than in March, which is the customary trend at this season o f the year. Both were well above the level o f a year ago. Decreases in sales by department stores in A pril as compared with March were in part due to the fact that Easter purchases were made in March and to unseasonably cold weather in many localities. Mail order sales during A p ril were 10 per cent, less than in March, but 32 per cent, larger than a year ago. W holesale P rices Prices o f certain basic commodities declined during A pril and the early part o f May. The general index o f wholesale prices o f the Bureau of Labor Statistics, it is to be noted, showed no change between March and A pril. Prices o f building materials, metals, cloths and clothing were higher in A pril than in March. These advances were offset by declines in prices o f fuel, and of farm products, especially livestock and dairy products. B a n k Credit Since the middle o f A p ril the volume o f bank credit in use has remained relatively constant. Between A p ril 11 and May 9 loans o f member banks in leading cities showed an increase o f nearly $100,000,000, a large part of which occurred in the Chicago district. These in PERCCNT. Index of Wholesale Prices, United States Bureau of Labor Statistics (1913 average = 100 per cent.) 2 M O N TH LY R E V IE W , JUNE 1, 1923 B ILU O N 5 OF DOLLARS Bank Credit—800 Member Banks in Leading Cities creases in loans were accompanied by a somewhat larger liquidation o f investments which was general through out the country. Partly as a result o f the sale o f these investments reporting member banks have met the de mand fo r additional loans without obtaining increased accommodation at the Reserve Banks. The volume o f Federal Reserve Bank credit has, consequently, contin ued to remain fairly steady at the level which has pre vailed since the middle o f January, and the volume of Federal Reserve notes in circulation has remained prac tically unchanged. Somewhat easier money conditions are indicated by slightly lower rates on commercial paper and lower yields on outstanding Treasury certificates. The Treas ury offering o f approxim ately $400,000,000 4% per cent, notes, maturing March 1927, was heavily oversub scribed, and the issue was subsequently quoted at a premium in the open market. Banking Conditions During A p ril and the early part of M ay there was a slight decrease in commercial borrow ing in this district, indicated b y a decrease o f $20,000,000 between A p ril 11 and M ay 16 in loans made largely fo r commercial pur poses b y reporting member banks. Such loanst had in creased nearly $200,000,000, or 8 per cent., during the preceding three months o f the year. Bank invest ments in Government and other securities and loans on stocks and bonds showed little change; so that there was a slight decrease in the amount o f total loans and in vestments. There was little change in the amount o f borrowing from the Federal Reserve Bank. Fluctuations were due chiefly to temporary conditions in the money market. On M ay 23 total earning assets of the New Y ork Reserve Bank stood at $263,000,000, a figure somewhat below the average fo r the past fou r months. The accom panying diagrams compare recent tenden cies o f member bank loans and investments in New Y ork City with those fo r the country as a whole. In this city, the rise since the first o f the year in advances largely to commercial customers has been more than equaled b y liquidation o f security investments and of loans on stocks and bonds (not shown in the d ia gra m ), BILLIONS OF DOLLARS Bank Credit—All Federal Reserve Banks thus resulting in a decline in the total volume o f credit outstanding. F or the country as a whole, however, these offsetting factors have been somewhat less than the com mercial loan increase, so that total loans and investments have shown a moderate increase. ments of Reporting Member Banks in New York City ments of Reporting Member Banks in the United States Money Market In May as in A pril, money rates continued to become slightly easier, in accord with the usual seasonal tenden cies. Commercial paper sales were somewhat more generally at 5 per cent., and in a few cases were 4% per cent., compared with prevailing rates o f 5 to 5 per cent, a month ago. A s shown by the accom panying diagram, there was a slight increase in the sales o f commercial paper through the open market. In the bill market, where dealers’ buying rates had been advanced a month ago to a range o f 4% to 4^4 and offering rates to a range o f 4 % to 4 % per cent., rates became established more uniform ly at the lower levels, at which the market was m oderately active. Slight easing in commercial m oney rates was accom panied by lower rates fo r Government certificates and notes, nearer maturities o f which declined about of one per cent, between the first o f A p ril and the middle o f May. F E D E R A L RE SER VE AGENT A T NEW YORK Except for a brief period around the first o f the month, and on May 21 when the last V ictory notes out standing fell due, call money on the Stock Exchange continued to rule generally under 5 per cent. Time money on stock market collateral was also easier at 5 to 5^4 per cent. 3 V ictory notes still outstanding are notes matured but not yet presented fo r payment. BILLIONS OF DOLLARS MILLIONS Commercial Paper Outstanding— Twenty-six Dealers Government Debt Treasury operations during M ay in connection with the Government debt included the cash offering o f $400,000,000 4 % per cent. Treasury notes dated M ay 15 and maturing March 15, 1927, with provision fo r additional allotments in exchange fo r 4 % per cent. V ictory notes, for the purpose o f meeting the maturity o f $770,000,000 V ictory notes falling due M ay 21. The new issue, which was the ninth o f a series o f re funding notes, was heavily oversubscribed and subse quently quoted in the open market at a premium. Total cash subscriptions were nearly a billion dollars, of which $382,000,000 was alloted, while exchanges amounting to $287,000,000 reduced the amount o f V ic tory notes to be redeemed in cash on M ay 21 to about $475,000,000. Due, however, to the failure o f many holders to present their notes prom ptly for payment, the amount o f redemptions was com paratively light. The results o f the Treasury’s program o f debt redem p tion and refunding during the past two years were de scribed by the Secretary o f the Treasury in a letter accom panying the new offering o f notes. It wes esti mated that by June 30 this year the total gross debt will show a reduction o f about $1,600,000,000 since A p ril 30, 1921, when the amount outstanding was 24 billions. A pproxim ately billions o f the short-dated debt maturing within two years, including V ictory notes, Treasury certificates, and W ar Savings issues, will have been retired or refunded. In its place will be a new class o f short-dated debt aggregating about 5^> billion dollars distributed in convenient maturities over 5 years up to the maturity of the Third Liberty Loan, and con sisting o f $4,000,000,000 short-term Treasury notes, to gether with Treasury certificates and Savings issues. These maturities have been so arranged as to permit o f their refinancing with a minimum of disturbance to in dustry and to facilitate their gradual retirement from surplus revenue. The accom panying diagram shows as o f M ay 23 the changes since 1917 in type o f the short-dated debt. Changes in Type of Short-dated Government Debt Outstanding Security Markets Accom panying indications o f slackened demand in certain commodity markets and a pause in the upward movement o f com modity prices, stock prices declined late in A p ril and in May. Industrial price averages reached levels 10 to 15 points lower than the March high points and about even with the lowest points touched in Novem ber. Railroad price averages declined about 5 to 10 points to the autumn low point. The following diagram compares the movement o f 50 stocks, both railroad and industrial, during the past four years with the volume o f transactions and average rates for Stock Exchange call money. In 1919, the decline in stocks accompanied high money rates and there con tinued to be a close relationship between prices and money rates until the middle o f 1921. Since then, how ever, large gold imports have greatly augmented money supplies, so that the relation between stock market move ments and money rates has been much less close. PRICE CALL of STOCKS RATE 1919 1920 1921 \ 9Z 2 1923 Average Stock Prices, Call Loan Rate, and Daily Average Transactions on the New York Stock Exchange 4 M ONTHLY R E V IE W , JUNE 1, 1923 In contrast with weakness in stocks, bonds were steadier, due partly to easier money conditions. Liberty bonds were little changed but averages of high grade cor poration bonds showed a gain of about points since the first o f A pril, though still 2 points lower than at the first o f the year. Foreign bonds reacted moderately fo l lowing the failure o f Germany's new proposals regard ing reparations. Despite steadiness in outstanding bonds, new financing showed a further decline, and dur ing the second and third weeks of May was the smallest at any time this year. Foreign Exchange Accom panying an upward trend of prices in foreign countries which in many cases has been more rapid than in this country, the tendency of the m ajor exchanges was downward during the past month. Sterling on May 9 dropped below $4.60 for the first time since last fall, though there was later a recovery to $4.63. Dutch, Ger man, Spanish, Norwegian, and Swiss exchanges also es tablished new low points for the year. O f the exchanges intimately concerned in reparations, marks displayed most acute weakness, breaking to more than 59,000 to the dollar, a new low record. F o r a con siderable period during February and March when the attempt was being made to stabilize the mark the rate had been fairly stable around 21,000 to the dollar. French and Belgian exchanges were comparatively steady, while Italian lire eased to around 4.85 cents, com pared with 5 cents early in A pril. Japanese exchange was an important exception to the general tendency and at 49*4 cents on May 12 reached the highest price since 1920. Other leading F ar Eastern rates, and Argentine and Brazilian exchanges were uni form ly lower. Indian rupees at 31 cents showed a loss o f over 8 per cent, from the point reached in the rapid advance of last year and January this year. Brazilian exchange, after some recovery late in A pril, reacted to the low point established during the early part o f that month. Gold Movement A p ril imports o f gold amounted to $9,188,000 and were largely from Great Britain and Canada. Exports during the month were $655,000, of which $413,000 went to Mexico. The excess o f imports was $8,533,000, as compared with $5,559,000 in March and $6,984,000 in February. The total excess of imports since January 1 has been $45,424,000, or an average of $11,356,000 a month, as compared with an average o f $19,858,000 a month for the year 1922. There has been a gradual reduction in the monthly averages of net imports since early in 1921 accompanying a reduction in excess exports o f merchan dise. Aside from the export balance o f merchandise prevailing until recently, the depreciation o f the European exchanges and the desire o f foreign holders to place balances in the United States for investment, the payment of debts, or for other purposes, are factors which have made fo r a continuance of gold imports. The follow ing diagram shows the net movement o f gold since 1914. MILLI0N5 OF DOLLARS 150 i 100 EXCE:ss of IMPORT5 1 i ii i L 50 J L .1 . Q w tPl1 9 ? r-'j A 0 100 1914 L_ 1 1 EXCESS C 3F ;XP0RT:5 ■' If 50 r' V 1 1915 1916 1917 1916 1919 19£0 19?,1 19E2 1923 Net United States Imports and Exports of Gold Foreign Trade In both March and A pril, for the first time since August 1914, the value o f imports exceeded the value of exports. Imports in March were valued at $402,000,000 and in A pril at $367,000,000. E xports were $341,000,000 in March and $326,000,000 in A p ril and the ex cess o f imports amounted to $61,000,000 in March and $41,000,000 in A pril. Details as to the character o f the imports have not been published but in February a large percentage of receipts consisted o f crude or partly man ufactured materials. F or the ten months ending A p ril 30 the excess o f our exports has amounted to $233,000,000, the smallest for any similar period since 1910 and with that exception since 1896. In only five full years in the past 52 have merchandise imports exceeded exports. The follow ing diagram shows the fluctuations in the value of exports and imports during the past several years. m illio n s DOLLA RS op 1000 iI 900 1 h n 800 EXPORTS 600 \tA ; j 500 fv 400 300 ft f\jis ft/ iP r i 700 f r\J J f J ¥ I i ! i a! J A 200 * i«f U ■ !,*• V if hih k \ / ORT5 iAW" ....- ■ 1A '\ 'ijjr m 100 0 1915 1916 1917 1916 1919 1920 19E1 19I Z 1923 Value of Imports into the United States and Value of Exports from the United States FEDERAL P r ic e In creases RESERVE A broad AGENT AT NEW YORK PERCENT. Prices in foreign countries as far as figures are avail able have been markedly upward in the past few months, and on the whole the increase has been greater than the increase in this country. Since last December prices in France have risen 15 per cent., those in Denmark 12 per cent., and those in Japan 7 per cent. In England the prices of 20 basic commodities have been rising rap idly and have increased 14 per cent, since last December, as compared with a 6 per cent, increase in a similar list o f commodities in this country. The Statist and the Economist indices for England have also been rising more rapidly than the Department of Labor index for the United States. Comparisons are shown in the fo l lowing table. (1913 = 100 Per cent.) Dec. 1922 United States: Department of Labor............ 156. Twenty Basic......................... 148. Bradstreet’s ........................... 150. Dun's...................................... 153. England : Statist..................................... 152. Economist.............................. 158. 141. Twenty Basic......................... 362. France......................................... 580. Italy............................................ 165. Canada....................................... Japan.......................................... 183. 149. Shanghai..................................... 220. Norway...................................... 155. Sweden....................................... 182. Denmark.................................... Germany.................................... 166,500. 158. Holland...................................... Calcutta..................................... 176. 161. Australia.................................... Per cent, change since Dec. 1922 Latest figure Date of latest figure 159. 157. 148. 160. April (av.) May 19 May 1 May 1 + + -f March 31 April 30 May 19 April 30 April 30 April 15 April (av.) April 30 April 30 March 15 May 1 April 1 March 31 March 31 March (av.) + 3 + 4 + 14 + 15 + 1 + 2 + 7 + 6 + 5 + 5 + 12 +284 + 4 + 3 + 1 156. 165. 160. 415. p 588. 168. 196. 158. p 231. 163. 204. 639,300. 164. p 181. 163. 2 6 1 4 p—preliminary. Commodity Prices Recessions in the prices of several important basic commodities during A p ril and the first two weeks of May carried the price index o f 20 commodities computed weekly by this bank down 3 per cent. These price reces sions were not reflected, however, in the Department of Labor index for A pril, which remained the same as for March. There were increases in the group figures for building materials, metals, and cloths and clothing, but decreases in fuel and in farm products. In the past five months prices o f farm products have declined 3 per cent., while the general index of prices has risen 2 per cent. The cost of living index computed by the National Industrial Conference Board, which indicates the move ment o f retail prices, was also unchanged in A pril. The follow ing diagram shows the trend of prices of basic materials, the Department o f Labor index, which also includes manufactured and semi-manufactured products, and the cost o f living during the past several years. Prices o f basic materials are now 29 per cent, higher than at the low point o f 1921, the Department of Labor index is 15 per cent, above the low point, but the cost of living has shown no appreciable increase. A ll three indices are now at the same point in relation to pre-war figures. Changes in Three Price Index Numbers Production in Basic Industries P ig iron production in A pril, amounting to 3,548,000 tons, was larger than in any month in the past and 14 per cent, above estimated normal, when seasonal tenden cies and year to year growth are taken into considera tion. Steel ingot output declined slightly because o f the shorter month, but the average daily output increased. The heavy output o f iron and steel reflects the pressure fo r the immediate delivery o f steel for use in building construction, the manufacture o f automobiles, railroad equipment, and other products. Greater caution in plac ing forw ard orders, however, has reduced the unfilled orders of the United States Steel Corporation from 7.405.000 tons on A p ril 1 to 7,289,000 tons on May 1. W hile current production is well above any previous figures, unfilled orders are 34 per cent, below the high point o f 1920. Consumption o f cotton by domestic mills was 577,400 bales in A p ril as compared with the exceptionally high figure o f 623,000 bales in March. Further curtailment of production by Fall River mills has been reported in the past few weeks. M any cotton mills have completed orders on hand and operators are reluctant to m anufac ture cotton goods from cotton at present price levels unless assured o f a ready sale. Am ong other basic industries, there was a reduction in output o f anthracite coal, cement, zinc, and sugar, but increases in petroleum, bituminous coal, and tin, when adjustment is made for usual seasonal tendencies. A u to mobile production again reached a new high figure o f 382.000 vehicles, or 29,000 more than in March. The following table shows the index numbers com puted by this bank fo r production in different indus tries. In each case production during the current month is compared with estimated normal after making allow ances fo r seasonal changes and year to year growth. 6 M ONTHLY RE V IE W , JUNE 1, 1923 (Estimated norma 1production = 100 Per cent.) 1921 Low 1921-22 Anthracite coal...................... Bituminous coal r .................. Pig iron................................... Steel ingots............................. Zinc*....................................... Tin deliveries......................... Copper, U. S. mine............... Wheat flour............................ Sugar meltings, U. S. ports. . Meat slaughtered................... Wood pulp............................. Paper, total*........................... Cottoi) consumption............. Wool consumption * e........... Tobacco consumption r ......... Cement................................... Leather, sole........................... Gasoline r ............................... Petroleum............................... Dec. Jan. Feb. Mar. 103 106 108 107 103 97 81 128 94 93 115 104 112 112 105 110 109 103 138 99 158 101 74f 71t 30 26 29 25 15 75 55 77 67 64 64 55 76 86 73 101 85 80 95 85 93 136 94 93 103 95 129 85 135 94 116 120 100 101 123 124 104 105 95 74 109 89 109 121 108 103 108 126 90 160 100 120 126 99 85 110 91 122 132 119 Apr. 102p 117p 114 99 82 132 90p 110 122 100 (a) 107 136 91 146 106 121 127p 101 133 102p i34p year ago in the number o f employees. In representative wholesale houses there has been an increase o f 12 per cent, in the number o f employees as compared with an increase o f about 20 per cent, in the dollar amount o f sales. Chain stores reported an increase o f 11 per cent, in the number o f employees and an increase o f 11 per cent, in sales. Department stores reported a gain of 7 per cent, in the number o f workers and an increase for the first 4 months o f 7 per cent, in sales. In all o f these lines increases in the dollar amount o f sales are due in part to higher prices. The follow ing table shows the percentage change in the number o f workers in different commercial lines from A p ril 1922, to A p ril 1923, and in comparison the change in the number o f workers employed in various industries, as reported by the New Y ork State D epart ment o f Labor. * Seasonal variation not allowed for. f Strike period not included, p Preliminary. r Revised. (a) Report not completed by Federal Trade Commission. e Estimated. Commercial L ines Wages and Employment There were about as many wage increases in indus trial establishments in the latter part o f A p ril and the early weeks o f M ay as in the preceding month. A re port by the National Industrial Conference Board shows 201 increases and 1 decrease between A p ril 15 and May 14. Almost half o f the increases were in the textile and clothing industries. Average weekly earnings o f operatives in representa tive factories in New Y ork State were $27.00 in A pril, slightly above the March figure. A p ril earnings were $2.85 or 12 per cent, above the low point reached in A p ril 1922, due to increased working time and advances in wage scales. Seasonal inactivity in the clothing and food-products industries caused a slight decrease during A p ril in the number o f workers employed in New Y ork State fa c tories, according to the New Y ork State Department o f Labor. There were 18 per cent, more workers than in A p ril 1922, however, and 28 per cent, more than in August 1921. The United States Bureau o f Labor Sta tistics reported a slight increase in employment fo r the country as a whole during A pril. A bout 85 per cent, o f the factories reporting were operating on full time. Employment agencies in New Y ork City report con tinued difficulty in securing unskilled labor, certain types o f mechanics, and stenographers. One agency has mentioned the creation o f 28 new classifications o f office workers as indicating greater division o f work with in creased business activity. W age rates for office workers and sales clerks have risen somewhat. Agencies dealing with farm labor in this district report that thus far they have been able to meet the demand. Employment in Commercial Lines Wholesale and retail dealers in this district which re port their sales to this bank each month have recently furnished additional figures showing changes since a Per cent. Change department stores. + 7 CHAINSTORES.......... W holesale T rade Machine tools............. Shoes........................... Hardware.................... Jewelry and diamonds. Clothing...................... Groceries..................... Stationery............. . Drugs.......................... Dry goods................... Average................... +11 +58 +23 + 13 + 7 + 7 + 4 0 - 1 - 1 + 12 Factories, N ew Y ork State Per cent. Change Metals, machinery, and conveyances Paper.................................................. Stone, clay, and glass products....... Wood manufacturing........................ Fur, leather, and rubber goods....... Water, light and power..................... Clothing, millinery, and laundering. Chemicals, oils and paints................ Textiles............................................... Printing and paper goods................. Food, beverages, and tobacco......... All industries.................................. +38 +24 +23 + 15 + 14 + 14 + 11 + 10 + 7 + 4 + 2 + 18 The largest change has been in industry, the next largest in wholesale trade, and the smallest in retail trade, as illustrated in the follow ing diagram. A P R IL 1922 100°/o FACTORIES WHOLESALE ■I ■■Ml........ 1 ] 11S94 FIRMS RETAIL STORES ]1 0 9 % Employment in New York State Factories, Wholesale Firms, and Retail Stores, in the Second Federal Reserve District Wholesale Trade Reports received from representative dealers in ten commodities indicate a slightly smaller volume o f whole sale trade in this district in A p ril than in the two pre ceding months. This bank’s weighted index o f dollar sales corrected for seasonal changes shows a decline o f 4 per cent, from the March index. A p ril sales were 19 per cent, above those o f A p ril last year, whereas the gains in January, February, and March were about 23 per cent. A p ril sales o f wom en’s clothing were exceptionally large, particularly to the middle west and the far west. Retailers who underestimated their spring requirements placed numerous reorders fo r prom pt shipment. Sales o f hardware were also good, reflecting building activity. F E D E R A L RE SER VE AGENT A T NEW YORK Diamond sales were almost twice as large as last year but were much smaller than in 1919 or 1920. Detailed figures follow. DOLLAR SALES DURING APRIL (In Percentages) 1919 1920 1921 1922 1923 Machine tools................... Diamonds........................... Jewelry............................... Hardware........................... Clothing............................. (a) Men’s ........................ (b) Women’s................... Stationery........................... Groceries............................. Dry goods.......................... Drugs.................................. Shoes................................... 412 534 293 122 107 58 140 107 141 96 98 188 469 301 312 148 123 110 132 161 158 147 100 214 160 75 118 107 93 63 114 119 106 124 95 116 100 100 100 100 100 100 100 100 100 100 100 100 344 191 145 132 131 99 153 123 115 115 115 113 Total (weighted)............ 117 145 102 100 119 7 A p ril 1920, a reduction due largely to lower prices. Stock turnover fo r the first four months o f 1923 was at the rate o f 3.6 times a year compared with 3.4 times for the first four months o f 1922 and 3.1 times in 1920. The preceding diagram shows the fluctuations in sales and stocks during the past several years. The light lines show the actual value o f sales and stocks each month, while the heavy lines show the same figures with allow ances made fo r normal seasonal fluctuations. The dia gram indicates that the rate o f stock turnover was slow est in 1920, when prices were highest, and that it has been relatively steady since that time. Sales by mail order houses during A pril continued to show about the same increases as have been reported since the first o f the year. Detailed figures follow. Department Store Business A p ril sales by department stores in this district were 2.1 per cent, above those of A p ril a year ago. This gain is smaller than the year to year increase in sales reported by the stores fo r some months past, owing in part to un seasonably cold weather, and in part to the fact that Easter buying took place largely in March, whereas a year ago many Easter purchases were made in A pril. Sales by stores in Newark and Buffalo were relatively larger than those o f stores situated in New Y ork and other cities of the district. A n increase of 11.5 per cent, in the average amount o f each department store sale from $2.52 in A p ril last year to $2.81 this year is some indication of the change in prices since a year ago. The number o f individual trans actions this A p ril was 8 per cent, less than a year ago. Stocks o f department stores on M ay 1, computed at the selling price were about 4 per cent, above those held last year, but about 15 per cent, less than those held in PER CENT, N et Sales D uring A pril (In Percentages) Stock on Hand M ay 1 (In Percentages) 1919 1920 1921 1922 1923 1919 1920 1921 1922 1923 85 86 83 81 76 91 95 98 100 101 103 91 107 112 98 96 111 104 102 108 100 100 100 100 100 100 100 100 102 101 113 111 96 105 97 75 74 82 79 83 94 85 119 119 113 140 142 142 122 97 96 100 99 108 116 101 100 100 100 100 100 100 100 104 103 104 113 98 103 100 80 Apparel stores. . . 84 Mail order houses 119 94 86 137 102 92 100 100 100 100 100 101 135 80 57 ** 105 99 ** 94 89 ** 100 100 ** 114 107 ** All dept, stores.... New York........ Newark............ Rochester........ Syracuse.......... Bridgeport....... Elsewhere in2nd Chain Store Sales A decline in sales by chain store systems during A p ril as compared with March probably was due in part to the fact that Easter purchases were made during March rather than A p ril this year. Shoe stores reported sales nearly 25 per cent, less than in A p ril a year ago. The number o f pairs o f shoes sold was 20 per cent, less and the average price per pair declined 6 per cent. Reports this month include sales figures from 21 sys tems o f chain grocery concerns which operate about 13,500 stores throughout the country. Detailed figures follow. T ype of Store Grocery............ Apparel............ Drug................ Ten Cent......... Cigar................ Shoe................. Sales and Stocks of Department Stores in the Second District. (Average Sales in 1919 — 100 per cent.) N umber of Stores Per cent, change in sales per store 1919 1920 1921 1922 1923 April 1922 to April 1923 D ollar Sales D uring A pril (In Percentages) April 1922 April 1923 11,323 373 278 1,739 2,253 202 13,544 438 305 1,796 2,747 241 67 55 86 70 74 67 111 71 97 84 99 86 88 93 105 83 108 90 100 100 100 100 100 100 118 114 110 106 100 76 1.5 2.7 0.2 + 2.4 - 17.8 - 36.6 16,168 19,071 68 99 90 100 111 - 5.8 B u ild in g A c tiv ity P rojects for new building construction in the United States, represented in permits granted in 158 cities, amounted to $322,940,000 in A pril and were $46,000,000 less than in March. The decrease from March to A p ril in New Y ork City alone more than ac counts for the total decline. There were recessions in the Southwestern and Pacific Coast States and continued in creases in other sections o f the country. D uring the early weeks of May there were postponements o f several important building projects in this city, due, it was an nounced, to rapidly advancing costs. Labor disputes were also a factor, both in restricting new operations and retarding work under construction. Notwithstanding the decline in the volume of build ing as compared with March, activity continued at a high rate. This bank’s index of the volume o f construc tion planned, in terms of normal, stood at 144 in A pril, compared with 182 for March when it reached the highest point ever touched. Allowance is made in the index for both the usual seasonal movement and for changes in the costs of construction. The A p ril index of construction costs, based on prices of building materials and wages in the building trades, was 3.1 per cent, above the March index and about 20 per cent, below the highest levels reached in 1920. The recent increase was due to advances both in materials and wages. Basic wage rates reached approxim ately the high points of 1920 and additional bonus payments have become frequent. Railroad Traffic Car loadings of revenue freight during A p ril were 19 per cent, above an estimated normal which makes allow ance for usual seasonal fluctuations and year to year growth. This is the highest figure since data became available in January 1918, and indicates slightly heavier traffic than in the spring of 1918 when the movement of war materials was at its height. The total shortage of cars was decreased about 50 per cent, by the placing of new cars in commission, progress in repair work, and more economical operation. PER CENT. Value of Building Permits in 158 Cities Compared with the Value Normally to be Expected Each Month. Allowance is Made for Seasonal Fluctuations and Year to Year Growth PER CENT. Car Loadings as Percentages of Estimated Normal Loadings. Allowance is Made for Usual Seasonal Fluctuations and Year to Year Growth PER CENT. Electrical Power Production In recent years the production and consumption of electricity have furnished a good reflection o f general business activity because of the increasing use o f elec trical power in industrial plants. A n index computed by this bank o f electrical power production in percent age o f estimated normal shows that the production in A p ril was 15 per cent, above the estimated normal for that month. Production of Electricity by Central Stations Throughout the United States. Allowance is Made for Seasonal Fluctuations and Year to Year Growth PER CENT. PO S T A L RECEI Postal Receipts Post Office receipts in 50 selected cities throughout the United States, which were 5 per cent, above the esti mated normal in March, dropped to a point fractionally below this normal during A pril, according to an index prepared by this bank. The adjacent diagram, in which estimated normal is taken as 100 per cent., shows the fluctuations since January 1918. The figures include all postal receipts except postal savings in 50 cities, which are selected by the Post Office Department as rep resentative o f the country. Receipts in these cities are about 50 per cent, o f total receipts. .A*—, NORMAL 1916 1919 1920 1921 1 9 ZZ 19£3 Postal Receipts in Selected Cities Throughout the United States Shown as Percentages of Estimated Normal Receipts. Allowance is Made for Seasonal Fluctuations and Year to Year Growth
@FedFRASER