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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 S e c o n d Federal Reserve Agent F e d e r a l R e s e r v e June 1 , 1924 Federal Reserve Bank, New York T rade B u s in e s s C o n d it io n s in t h e U n i t e d S ta te s A C T O R Y employment and production o f basic commodities declined in A p ril and there was a further recession in wholesale prices. Retail trade was larger than in March, chiefly because of Easter buying, and was at about the level of earlier months of the year. There was a decrease in the volume o f bor rowing fo r commercial purposes and further easing of money rates. F P ro ductio n The Federal Reserve B oa rd ’s index of production in basic industries, adjusted to allow fo r seasonal varia tions, declined 2 per cent, in A pril. Declines were particularly large in the iron and steel, coal, and woolen industries. M ill consumption of cotton, on the other hand, showed less than the usual seasonal reduction between March and A pril. Factory employment de clined 2 per cent, in A pril, owing chiefly to large reduc tion o f forces at textile and clothing establishments. Contract awards fo r new buildings reached a higher value than in March and were also larger than a year ago; value of building permits granted, however, de clined and was smaller than in the corresponding month of 1923. Department of Agriculture estimates on May 1 o f the yield o f winter wheat and rye are somewhat above the forecasts made in A pril. The acreage o f winter wheat is estimated at 7 per cent, less than last year. PERCENT. Index of 22 Basic Commodities corrected for seasonal variation (1919 = 100 Per cent. Latest figure, April) D is t r ic t Railroad shipments, which since the middle o f March have been smaller than last year, were 3 per cent, less in A p ril than a year ago. Shipments o f coal were much below last year, while loadings o f merchandise and miscellaneous freight were higher. Wholesale trade in A p ril was in about the same volume as during the preceding month and as in A p ril 1923. Sales o f dry goods and hardware were smaller than a year ago, while sales of drugs and shoes showed some increases. D epart ment store sales were considerably larger in A p ril than in March, partly owing to the unusually late E aster; total sales fo r the two months were 2 per cent, greater than in the corresponding period o f 1923. Merchandise stocks at department stores showed less than the usual seasonal increase in A pril, but were at a higher level than a year ago. P rices Wholesale prices, according to the Bureau o f Labor Statistics index, declined 1 per cent, during A p ril and reached the lowest point since M ay 1922. Farm products, however, advanced 2 per cent, in A pril. Metals and foods showed substantial reductions; prices o f clothing, fuel, and chemicals also declined; while prices of building materials and house furnishings remained unchanged. D uring the first half o f May quotations on cotton, wheat, flour, and hogs increased, while prices o f sugar, silk, wool, and metals declined. PER CENT. M ONTHLY I1EVIEW, JUNE 1, 1924 BILLIONSOFDOLLARS Index of Employment in Manufacturing Industries (1919 Average = 100 Per cent. Latest figure, April) B a n k C redit D uring the five week period ending May 14, the volume o f borrow ing fo r commercial purposes at mem ber banks in leading cities declined somewhat from the high level reached early in A pril. There were increases, however, in loans on stocks and bonds and in invest ments in securities; so that the total o f all loans and investments at the middle of May was higher than a month previous, and in larger volume than at any time in more than three years. Volume o f borrow ing by member banks at Federal Reserve Banks declined further during the last week of A p ril and in May, while holdings of securities bought in the open market increased slightly. Total earning assets declined to $795,000,000 on May 21, the lowest figure since the autumn of 1917. Further easing o f money conditions during the last week o f A p ril and the first three weeks of M ay was reflected in a continued rise of the prices o f Govern ment securities, in a reduction from 4 % to 41/4 per cent, in the rate for prime commercial paper, and a decline in the rate fo r bankers acceptances from 4 to 3 per cent. On May 1, the discount rate of the Federal Reserve Bank of New Y ork was reduced from 4 % to 4 per cent. B a n k in g C o n d i t io n s in t h e S e c o n d D i s t r i c t Between the middle of A p ril and the middle of May there was a further moderate reduction in the volume of commercial borrow ing at banks in this district. On May 14, commercial loans of member banks in principal cities were approxim ately $50,000,000 below the March high point, thereby canceling about one-third o f the previous rise since January 1. More than offsetting the decrease in commercial loans, however, was a further increase during the month o f $70,000,000 in security investments to the highest point since February 1923. A s a result chiefly o f these changes, the total of all loans and investments was the largest in more than a year. Reserve Bank Credit— Weekly Figures for 12 Federal Reserve Banks (Latest figures, May 2 1 ) The accom panying diagram shows the recent move ments o f commercial loans and of investments o f report ing banks in New Y ork City and throughout the United States. Loans Largely for Commercial Purposes and Total Invest ments of Reporting Member Banks in New York City (Latest figures, May 14) Loans Largely for Commercial Purposes and Total Invest ments of Reporting Member Banks in the United States (Latest figures, May 14) Deposits also increased during the month, and in the last week o f A p ril and first two weeks o f M ay reached levels slightly higher than ever before. Net demand deposits were the largest since January 1923, and time deposits reached a new high point. The volume o f credit extended by the Federal R e serve Bank o f New Y ork was smaller in M ay than in A pril. A reduction in the volume o f bills discounted, and a decrease practically to zero in bills purchased, were only partly offset by an increase in holdings of Government securities. M o n e y R a te s Seasonal slackening in the commercial demand for eredit, continued large imports o f gold, and reduced activity in certain lines o f business were accompanied FEDERAL RESERVE AGENT AT NEW YORK in May by a general decline in money rates to the lowest Levels since 1922. The open market rate fo r prime commercial paper declined from 4 % to 4 ^ per cent., and in a few cases /sales were made at 4 per cent. W hile there was a continued good demand fo r paper, the supply was more limited, and the outstanding paper o f the 26 reporting dealers declined $19,000,000 in A p ril to $883,000,000. Easier money conditions were reflected also by marked reductions in open market rates for Government securi ties and bankers acceptances. Yields on short term Treasury issues were reduced by % to % of 1 per cent, between A p ril and May, while the offering rate fo r 90-day bankers bills declined from 4 to 3 per cent. D ealers’ portfolios of bills continued to be reduced and reached totals less than half as large as at the February high point. In the Stock Exchange money market time loans de clined 3/2 o f 1 per cent, to 3% -4 per cent., the lowest since July 1922. Call loan renewals ruled at 3 % per cent, during the first part o f the month, but under pressure o f large accumulations of funds declined later to 3 per cent. The follow ing diagram shows by months the course o f open market money rates since 1914 and the re discount rate o f the Federal Reserve Bank of New Y ork on commercial paper. BAXE 3 W hile new security issues were in good demand, the volume offered in the open market was only moderate. The largest issue o f the period was a $40,000,000 6 per cent, loan o f the K ingdom o f the Netherlands, at a price to yield 6.10 per cent. On May 20 the American Telephone and Telegraph Company announced a pros pective offering o f $150,000,000 capital stock to stock holders at par. Stock prices declined early in May, in some cases to new low points fo r the year, but thereafter became slightly firmer. On M ay 26 the Standard Statistics C om pany’s index o f 202 industrials stood about 1 % points above the lowest point fo r the year, and 9 points below the high level reached in February. Railroad stocks continued firm and in some instances reached new high prices fo r the year. F o r e ig n S h ip m e n t s o f U n i t e d S ta te s C u r r e n c y Reports fo r A p ril from 14 banks in this city which are the principal shippers o f United States currency to fo r eign countries show fo r the first time since last August an excess o f receipts o f currency from abroad over ship ments. P rior to March this year shipments had been increasing rapidly, but beginning in that month there was a marked decrease, due chiefly to a decline in ship ments to central E urope and countries bordering on Russia. In A p ril there was also an increase in receipts, particularly from Germany. It seems possible that these changes in the movements o f currency reflect efforts towards the establishment o f stable currencies in Russia and Germany. The follow ing table gives the figures by months from M ay 1923 through A p ril 1924. Month Shipments Receipts Net Shipments $ 3,916,000 2,473,000 3,051,000 1,684,000 7,842,000 3,095,000 3,195,000 3,825,000 $ 2,341,000 2,568,000 2,824,000 6,161,000 3,723,000 2,109,000 1,821,000 933,000 $ 1,575,000 227,000 ------4,119,000 986,000 1,374,000 2,892,000 4,477,000 ------------------------- 5,694,000 6.989.000 2.095.000 940,000 1,374,000 1,463,000 2,074,000 2,601,000 4,320,000 5,526,000 21,000 ------- ------------------1,661,000 $44,799,000 $29,992,000 $21,040,000 $6,233,000 Net Receipts 1923 July................... Aug.................... Dec..................... $ 1924 Feb..................... Open Market Rates for Prime Commercial Paper and Bankers Acceptances, and Discount Rate of the Federal Reserve Bank of New York S e c u r it y M a r k e t s The marked ease in money conditions that developed in May was accompanied by further strength in the bond market. The upward tendency was strongest in the United States Government group, and Liberty 3rd 41/4s at 101 2/32s and Treasury 4 ^ s at 102 22/32s reached the highest prices since issuance, while the other 4 % issues were within half a point o f the 1922 high prices. The general bond market was also firm, and high grade railroad bonds particularly strong. F o r eign issues generally held steady, despite the unsettle ment in exchange rates. ------95,000 In addition to direct shipments banks in this district in the past twelve months forw arded $30,295,000 to Cuba by wire transfer through the Federal Reserve System, including both the Boston and Atlanta Reserve Banks. O f this amount $15,350,000 was forw arded dur ing the first fou r months o f this year. F o r e ig n E x c h a n g e Uncertainty as to the effect of the German and French elections on the adoption o f the recommenda tions o f the Committee o f Experts to the Reparations Commissions, coupled with the unusual rapidity o f the A p ril advance, were among the factors in a reaction in MONTHLY REVIEW, JUNE 1, 1924 4 the leading European exchanges in May. A t 5.40 cents and 4.63 cents on May 24, French and Belgian francs showed a loss of more than a third of the recovery of A pril. Sterling was likewise under pressure, and de clined from $4.40 to $4.34. The principal changes in other European exchanges included a reaction in Spanish pesetas from their recent high level, and a further advance in Swedish kronor to 26.57 cents, a new high level fo r the year. B y resump tion of specie payments on A p ril 1 Sweden becomes the first European nation to return to a gold basis. Follow ing a substantial decrease in the excess of imports in A pril, Japanese yen recovered to 40^4 cents on May 22, or approxim ately 2 cents above the low figure reached in A p ril under the influence o f the large import trade balances of February and March. G o ld M o v e m e n t Gold imports in A p ril totaled $45,400,000, o f which $21,000,000 came from the Netherlands and $14,000,000 from England. Exports, which were chiefly to Vene zuela, Mexico, and Spain, totaled $1,400,000, and the excess of imports was $44,000,000. F or the first fou r months o f this year the excess of imports of gold amounted to $156,994,000, compared with $45,424,000 in the corresponding period o f 1923. The accom panying diagram shows the net movement of gold by months from 1914 through A p ril 1924. Since the export movement o f 1919-1920 came to a close the total excess o f imports o f gold has amounted to $1,534,000,000, and since 1914 the excess has been $2,147,000,000. A bout half o f the large gold imports during 1923 and thus far in 1924 have been from England, and have approximated payments on the British Government debt to this country. in A p ril last year, while imports at $324,000,000 were considerably smaller than a year ago. A s a result, there was a favorable trade balance o f $24,000,000 this year, compared with an im port balance o f nearly $40,000,000 in A p ril 1923. The increase in exports in A p ril was due partly to a small increase in exports o f manufactured goods ready fo r consumption. Cotton exports continued to show a seasonal decline, and there were decreases in shipments o f other raw materials such as coal, meats, and grains. Factors in the slightly larger imports were an increased movement o f silk, and the largest receipts o f rubber ever reported. D uring the first fou r months o f this year the total excess o f exports was $176,000,000, com pared with an import excess o f $86,000,000 during the corresponding period o f last year. In large part, this reversal o f the trade balance reflects an increase o f 16 per cent, in the quantity and 42 per cent, in the value o f cotton ship ments during the present cotton marketing year as com pared with last year. P r ic e s B y a further decline o f 1.3 per cent, in A p ril to 148 per cent, o f the 1913 average, the Bureau o f Labor Statistics index fo r wholesale prices reached the lowest level since May 1922, 7 per cent, below the high point o f last year, reached in March and A pril. Foods and metals contributed chiefly to the decline from the March figure but all other groups were either unchanged or lower, except farm products, which advanced slightly. The accom panying table indicates the recent price ten dencies in the various groups o f the index, and the changes that have occurred over a y e a r’s time. Per cent, change from M IL L IO N S Cr DO LLARS Commodity group April Index March 1924 1 E X C E :s s o f IM P O R T S I JkL M l I i m s& ?• i f s ? ? * Farm products.............................................................. Foods............................................................................... Cloths and clothing..................................................... Fuel and lighting.......................................................... Metals............................................................................. Building materials........................................................ Chemicals....................................................................... House furnishings......................................................... Miscellaneous................................................................ 139 137 189 179 139 182 128 175 113 + — — — — 1.4 2 .8 1.0 1.1 3 .5 0 .0 — 1.5 0 .0 0 .0 — 1.4 — 4 .9 — 7 .8 — 10.5 — 9 .7 — 10.8 — 5 .9 — 6 .4 — 10.4 All commodities........................................................ 148 — 1.3 — 6 .9 ex CES5 ( :x p o r t 5 — ACkO 1 1Q3 9 1 a?* United States Net Imports and Exports of Gold (Latest figure, April) F o r e ig n T r a d e The value of both exports and imports o f merchan dise was slightly larger in A p ril than in March. E xports totaling $348,000,000 were also $23,000,000 larger than April 1923 D uring the greater part of May, this b an k ’s weekly price index o f 20 basic commodities was practically sta tionary. Cotton rose sharply to around 3 2 % cents a pound, and there was also a recovery in hides, while wheat, corn, and hogs were com paratively steady. Sugar, on the other hand, at 7 cents a pound was 2 cents below the February high point o f this year, and the lowest since February 1923, and silk prices reached new low points since 1921. Rubber touched the lowest price since October 1922, and there were declines also in wool, lumber and the metals. The accompanying diagram shows by weeks the recent movement of this FEDERAL RESERVE AGENT AT NEW YORK bank’s index and compares with it a similar index o f 20 basic commodities in Great Britain. PER CENT. 5 Despite the large increase in building in New Y ork City during the past year there appears to be no short age o f funds fo r high grade building loans. Evidence of this is foun d in the fact that, while mortgage invest ments of savings banks in New Y ork City and other sections o f the State increased substantially in 1923, as shown by the table below, prepared by the New York State Savings Banks Association, they were except in the Buffalo district, still considerably below the statu tory limit fo r such investments, which is 70 per cent, of their total resources. Mortgage Investments of Savings Banks District Amount (000 Omitted) Jan. 1, 1923 Price Indexes of 20 Basic Commodities in the United States and England (1913 == 100 Per centi.) $ 155,967 94,114 146,612 Manhattan and Bronx. . 815,958 Brooklyn, Queens, and Richmond..................... 402,168 Total, New York State $1,614,819 Jan. 1, 1924 Per cent.of Total Resources Jan. 1, 1923 Jan. 1, 1924 58.3 56.1 52.0 47.0 69.7 58.5 56.7 48.4 474,878 53.2 57.0 $1,839,988 50.4 53.0 $ 171,062 103,400 173,500 917,148 B u ild in g Building permits issued during A p ril in 158 selected cities throughout the country were 29 per cent, smaller than in March, and about 10 per cent, smaller than in A p ril a year ago. The decline from March was due chiefly to a large decrease in New Y ork City, where the March figures had been greatly increased by uncertainty whether there would be continued tax exemption on residential construction. Figures fo r building contracts actually awarded, published by the F . W . Dodge Cor poration, showed only a slight decrease in the New Y ork district in A pril, and for all reporting districts were larger than ever before. Reflecting the movement o f permits, this bank’s index o f building construction, with allowance fo r seasonal variation and changes in costs o f construction, declined sharply in A p ril but was 30 per cent, above normal as determined by the trend of past years. F or the first fou r months of this year the index averaged 73 per cent, above the com puted trend, due in considerable part to the heavy building in New Y ork City. The follow ing table compares the dollar figures fo r permits granted in the five boroughs o f New Y ork with those o f all other selected cities and indicates the extent to which the New Y ork figures have affected the aggregate building totals. Value of Building Permits in thousands of dollars Borough Jan.-April 1923 Jan.-April 1924 Manhattan........................................... Bronx..................................................... Brooklyn............................................... Queens................................................... Richmond............................................. $ 61,345 75,172 100,934 74,753 6,055 $100,371 76,608 140,974 100,983 8,805 +$39,026 + 1,436, + 40,040 + 26,230 + 2,750 New York City............................... Other selected cities....................... 318,259 787,075 427,741 764,096 +109,482 — 22,979 Total, 158 selected cities............... $1,105,334 $1,191,837 +$86,503 Change Reports in M ay from several o f the larger savings banks located in Brooklyn, where building has been particularly heavy this year, indicate an increase in the percentage o f mortgage investments from 57 per cent, at the first of the year to approxim ately 60 per cent., still leaving, therefore, a substantial margin before reaching the legal limitations. P r o d u c tio n The decline during A p ril in the Federal Reserve B o a rd ’s composite index o f basic production, noted on the first page, accompanied recessions in a m ajority o f this bank’s indexes o f production in individual lines. Production o f p ig iron declined 6.6 per cent, from the high rate reached in March, but was approxim ately at normal, as determined by the trend o f past years. The reduction in active blast furnaces, however, was par ticularly large in the latter part o f the month, and further shut-downs were reported in May. Steel pro duction continued to decline and by the third week in May was estimated at 60 per cent, o f capacity, or onethird below the high rate reached early in March. Un filled orders o f the United States Steel Corporation declined 574,360 tons during A p ril to the lowest ton nage since February 1922. F ollow ing a prolonged decline since early in January, mining o f bituminous coal increased slightly late in A p ril and early in May, but was lower than in any corresponding period fo r which records are available, except the strike period o f 1922. Anthracite output also declined more than usual in A p ril but increased sub stantially early in May. M ill consumption o f cotton was only slightly smaller than in March, and this bank’s index, which allows fo r seasonal variation, remained at 82 per cent, o f the com puted trend. W oolen mill activity, however, declined 6 MONTHLY REVIEW, JUNE 1,1924 further and production o f zinc and leather also con tinued below the computed trend. The output o f passenger automobiles was slightly smaller than in March or in A p ril last year, but still fa r above the com puted trend. Truck output was 6 per cent, larger than in March and 3.8 per cent, smaller than in A p ril last year. Increases occurred during A p ril in indexes showing output of packing houses, paper mills, and boot and shoe factories. The follow ing table gives this ban k’s indexes o f p ro duction in recent months and in A p ril a year ago, in terms of the com puted trend, with allowance made fo r usual seasonal variations. (Computed trend of past years = 1 0 0 Per cent.) postal receipts. The indexes o f building permits and factory employment, however, declined, and there was an increase in the proportion o f firms failing to the number in business. (Computed trend of past years= 1 0 0 Per cent.) 19 2 4 1923 April Feb. Mar. Apr. 114 125 102 82 122 107 157 Ill 119 111 95 117 64 147 108 113 97 84 102 73 138 llOp 102 97 90 112 75 129 98 96 100 103 95 99 103 99 101 95 96 107 98 102 90 96 85 103 104 91 96 95 97 105 112 113 102 95 111 104 99 109 104 144 97 109 118 104 114 99 201 94 102 104 96 109 99 196 104 107 105 102 Primary Distribution Car loadings, mdse, and misc.............................................. Car loadings, other................................................................ Wholesale trade, Second District...................................... Exports..................................................................................... Imports..................................................................................... Grain exports.......................................................................... Panama Canal traffic............................................................ Distribution to Consumer 1923 Producers' Goods Pig iron.................................................................................... ..................................................... Steel ingots................... Bituminous coal..................................................................... Copper, U. S. mines..................................................... .. Tin deliveries.......................................................................... Zinc*................. ....................................................................... Petroleum................................................................................ Gas and fuel oil...................................................................... Cotton consumption............................................................. Woolen mill activity*........................................................... Cement ................................................................................ Lumber .............................................................................. Leather, sole............................................................................ Consumers' Goods Cattle slaughtered................................................................. Calves slaughtered................................................................. Sheep slaughtered.................................................................. Hogs slaughtered................................................................... Sugar meltings, U. S. ports................................................. Wheat flour............................................................................. Cigars ..................................................................................... Cigarettes................................................................................ Tobacco.................................................................................... Gasoline.................................................................................... Tires*........................................................................................ Newsprint................................................................................ Paper, total............................................................................. Boots and shoes...................................................................... Anthracite coal....................................................................... Automobile, all....................................................................... Automobile, passenger.......................................................... Automobile, truck................................................................. 1924 Apr. Feb. Mar. Apr. 114 115 117 89 132 82 134 106 101 120 134 119 103 105 116 113 110 151 72 134 111 95 96 167 145 84 105 115 89 96 73 78 124 n ip 82 95 151 129 75 101 96 81 99p 143 73 109 115 101 132 122 110 84 88 99 115 159 104 109 118 102 138 142 120 105 148 92 118 123 119 87 79 106 130 149 115 107 94r 109 151 155 137 100 119 88 123 121 122 81 79 96 130p 156 106 100 91 96 131 138 101 106 130 89 126 117 117 77 85 97 *82 86p 136 *7i ii4 107 112p 85 125 131 102 *=Seasonal variation not allowed for. p=Preliminary. r=Revised. I n d e x e s o f B u s in e s s A c t i v i t y Indexes o f trade and general business activity were generally higher in A p ril than in March. Loadings of revenue freight in A p ril and the first 10 days o f May continued substantially lower than a year ago, due chiefly to smaller shipments o f coal, but remained con siderably above the totals fo r the corresponding period in any previous year. Merchandise and less than car load shipments averaged in May about 3 per cent, higher than last year. Available indexes o f distribution to the consumer were nearly all higher in A p ril than in March, but in the cases o f department store and chain store sales were below normal as measured by the trend of past years. Mail order sales, on the other hand, were above the computed trend. There were also advances in A p ril in indexes o f bank debits, particularly those outside New Y ork City, and in *Department store sales, Second District....................... *Chain store sales.................................................................. Mail order sales...................................................................... Life insurance paid for......................................................... Amusement receipts.............................................................. Magazine advertising............................................................ Newspaper advertising......................................................... General Business Activity Bank debits, outside New York City............................... “ “ New York City.............................................. Postal receipts......................................................................... Electric power......................................................................... Employment, N. Y . State factories.................................. Building permits.................................................................... Business failures..................................................................... *97 130 108 * = Allowance made for late Easter, p = Preliminary. E m p lo y m e n t a n d W a g e s A general decline in factory employment in A p ril was indicated by reports from the United States and the New Y ork State Labor Departments. Follow ing un usually small spring advances this year, reductions o f 2.1 per cent, fo r the United States, and 3.2 per cent, for New Y ork State, brought the total numbers on the factory pay rolls to the lowest since the fa ll o f 1922. E xcept fo r small seasonal increases, the decline has been continuous during the past year and in this State has amounted to approxim ately 7 per cent, since A p ril 1923. The follow ing table, com paring the changes in factory employment by industries in New Y ork State, indicates that decreases in A pril, both as compared with the pre vious month and with A p ril 1923, were in large part in the textile, clothing, leather, and metal industries. Not withstanding these declines, however, employment offices report the existence o f no large amount o f unem ploy ment, due to the opening o f the season fo r building, road construction, and farm work. (June 1914=100 Per cent.) Stone, clay, and glass........................................ Metal products................................................... Wood manufactures........................................ Furs, leather, and rubber,................................ Chemicals, oils, etc............................................ Paper.................................................................... Printing and paper goods................................ Textiles................................................................ Clothing and laundering.................................. Foods and tobacco............................................ All industries....................................................... April 1924 Per cent, change from March Per cent, change from April 1923 104 126 105 113 107 103 96 89 81 91 104 + 0 .3 — 3.1 — 1 .7 — 3 .8 — 0 .4 + 0 .2 — 2 .9 — 5.1 — 5.1 — 3 .6 — 3 .2 — 1.8 — 7 .9 — 1 .3 — 5 .6 — 3.1 — 10.1 — 5 .6 — 11 .9 — 12.0 — 2 6 — 7 .3 FEDERAL RESERVE AGENT AT NEW YORK The general level o f wages remained little changed during A p ril and early May, although occasional in stances of wage reductions occurred, particularly in the textile and metal industries. Reflecting partly the de crease in employment, the average weekly earnings of factory workers in New Y ork State were slightly lower in A p ril than in March. Compared with A p ril a year ago, however, earnings showed an increase o f 2.6 per cent. W h o le s a le T r a d e PER CENT. isor 100 A A A A J ] a A t\ \ J \ A n 50 0 150 i \A A \A C>TTON A v y 1 g D0D5 A 100 This bank’s index for A p ril of the sales of 168 whole sale dealers in 11 principal lines, corrected fo r seasonal variation and price changes, was fo r the second month 3 per cent, below normal, as determined by the trend of past years. The chief increases in dollar sales over corresponding figures fo r A p ril last year occurred in wom en’s coats and suits, and shoes. There were increases also, however, in the sales o f m en’s clothing, silk goods, stationery, and drugs, while sales o f groceries were equal to those o f the year previous. Hardware sales, on the other hand, after showing increases over the year previous fo r many months, were 4 per cent, below those of last A pril. Cotton goods sales continued slow, while lessened activity in metal working industries was reflected in a larger reduction in machine tool sales. Comparisons between A p ril sales fo r the past five years appear in the follow ing table, while the accom panying diagram shows the movement o f sales in d if ferent lines by months since 1919. In this diagram no allowance has been made fo r seasonal changes or year to year growth. ' JLa # n / weigh TED AVERAGE! ALL CC)MMODITlES \ A .... \ 50 SILK GOO OS 0 150 100 J r I'i(V\ GROCERIES 50 1 $ 7 v rSJ v \J V/ SHOES 0 150 V 100 A A r / ARD W ARE M A a \ 50 ACOHIN ^ MTO 1-5EI V 0 150 Dollar Value of April Sales (April 1923=100 Per cent.) Commodity 100 \I\1A 1920 1921 1922 1923 1924 Shoes........................................................... Drugs........................................................... Stationery................................................... Clothing...................................................... (a) Men’s ............................................... (6) Women’s drosses........................... (c) Women’s coats and suits............. Groceries..................................................... Dry Goods................................................. (a) Cotton............................................. ( b) Silk................................................... Hardware.................................................... Jewelry........................................................ Diamonds................................................... Machine Tools.......................................... 196 87 131 95 124 74 76 137 130 124 137 112 215 158 161 108 83 97 73 75 69 74 92 98 107 89 82 82 40 45 86 87 82 82 97 60 82 87 79 93 64 76 69 52 30 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 126 112 105 104 104 73 136 100 97 91 102 96 95 77 60 Weighted average................................ 123 87 82 100 101 M .A 1 \ jJEWELRY 50 DIAMONDS VjpV 1 1 0 150 f a f ] 1A l\ DRUG:5 100 I \ a -A A A IX rA N STATIONElRY 50 D e p a r t m e n t S t o r e B u s in e s s Department store sales in this district in A p ril were 11 per cent, larger than a year previous, due largely to delayed Easter buying this year. F or the months of March and A p ril combined sales were 3 per cent, larger than last year, which is less than the usual year to year growth. The increase in A p ril sales over a year ago was largest in wearing apparel, which is most affected by the date o f Easter. Sales o f furniture and home furnishings 1919 1920 1921 19 Z Z 19Z3 19Z4 19 Z 5 Monthly Sales of Representative Wholesale Dealers in the Second Federal Reserve District (Average Sales in 1919 = 100 Per cent.) MONTHLY REVIEW, JUNE 1, 1924 have been most previous. A p ril ment store trade in the follow ing consistently above those for a year sales in the major divisions of depart compared with a year ago are shown table. Per cent. Change in Sales over April 1923 Per cent. Sales of each Dept, to Sales of all Departments + 3 4 .1 + 2 2 .2 + 1 8 .7 + 1 8 .7 + 1 8 .5 + 3 .6 + 2 .8 + 2 .3 — 2 .9 — 7 .6 + 1 1 .8 7 .7 15 5 17.0 3 .9 3 .5 13.5 1 .6 5 .6 3 .3 4 .8 23.6 Men’s and boys’ wear......................................................... Women’s and misses’ ready-to-wear......................... . . . Women’s ready-to-wear accessories................................ Shoes....................................................................................... Hosiery................................................................................... Home furnishings................................................................. Woolen goods........................................................................ Furniture............................................................................... Cotton goods........................................................................ Silk goods.............................................................................. Miscellaneous........................................................................ Stocks o f goods on hand May 1 were 5 per cent, higher than a year previous for the fourth consecutive month. The average sale in A p ril was $2.93 as compared with $2.58 in March and $2.87 in A p ril 1923. Mail order sales were 10 per cent, higher than a year ago, whereas in March they were 7 per cent, lower. A fter allowing for the usual seasonal variation and price changes, mail order sales were above the computed trend fo r the first time since June 1923. Net Sales During April (Apr. 1923=100 Per cent.) 1920 1921 96 All dept, stores. . . 99 New York......... 89 Buffalo............... 93 Newark.............. 95 Rochester.......... Syracuse............ 102 Bridgeport......... 116 94 Elsewhere, 2dD, 85 Apparel.............. Mailorderhouses 102 96 95 98 94 106 103 103 102 92 75 1920 1921 1922 1923 1924 98 99 88 90 104 96 103 100 99 74 114 116 108 124 146 138 122 92 92 93 94 96 87 111 113 101 82 83 96 98 96 89 102 97 100 88 93 100 100 100 100 100 100 100 100 100 105 105 103 105 113 105 102 99 109 100 100 100 100 100 100 100 100 1100 tlOO 111 110 106 116 121 109 111 106 117 110 S h o e ....................... > ^/ v / Apr. 1923 Apr. 1924 299 438 118 1,796 14,664 2,747 305 360 571 130 1,933 17,764 2,741 318 111 62 84 79 87 99 89 112 81 85 79 70 108 96 123 88 95 95 81 100 91 100 100 100 100 100 100 100 146 132 131 125 117 104 102 + 2 1 .3 + 1.3 + 1 9 .1 + 1 6 .5 — 3 .3 + 4 .5 — 2 .6 20,367 23,817 85 78 88 100 120 + 2 .4 \ v rvJ/ \ v r v\ / f DEPT-STOR.E 5 ...... A L L /_ . fcoo J T r \ r . CHAIN APP/ <REL lI.,.,.. . £00 A wi l \ V V v CHAIN SHOE:s i ._ J ^ k FIVE I ^ i\7h Vr r J A a C h a in S t o r e S a le s Late Easter buying was probably largely responsible fo r an increase o f 2.4 per cent, in the sales o f all types o f chain stores in A p ril over A p ril a year ago, com pared with a decrease o f 2 per cent, in March. There was also a large increase in the sales per store o f shoe, candy, and ten cent stores, but sales per store of groceries and drugs declined. A llow ing fo r seasonal variation and price changes, this bank’s index o f chain store trade was 3 per cent, below the com puted trend, com pared with 4 per cent, below in March. The accom panying diagram shows the course o f sales o f department stores in this district and o f different types o f chain stores by months since 1919. D uring these five years the average annual increase in the total chain store sales, exclusive of groceries and after allow ance fo r price changes, has been between 13 and 14 per cent., whereas the average increase in department store sales has been about 8 per cent. The sales o f all these types of stores, with the exception o f groceries, show a remarkably regular seasonal variation. Dollar Value in Percentages Type of Store Stock on Hand May 1 (May 1, 1923=100 Per cent.) 1922 1923 1924 Per cent. Change in sales per store Apr. 1923 Apr. Apr. Apr. Apr. Apr. to 1920 1921 1922 1923 1924 Apr. 1924 Number of Stores 1 I J V v 7 ft . l/w ^ \ r ^ / V TEN CHAIN GROCj■ERIES 0 200 -----------J CHAIN TOBA*CCO ' ' l1 0. 200 0 200 CHAIN CANDY 1!■ V r— CHAIN DRUCis 1 1919 U ■- ■ / , 192.0 19Z1 192.2 19 Z 3 ' X9ZA- Monthly Sales of Department Stores in the Second Federal Reserve District and Sales of Chain Stores (Average Sales in 1919 = 100 Per cent.)
@FedFRASER