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MONTHLY REVIEW of Credit and Business Conditions S e c o n d Federal Reserve Agent F e d e r a l N D U S T R IA L activity in January was in slightly smaller volume than in December, and the distri bution of commodities showed a seasonal decline. The level of prices remained practically unchanged. I P r o d u c t io n The Federal Reserve Board’s index of production in selected basic industries was about 1 per cent lower in January than in December. The output of iron and steel, copper, and zinc increased, while activity in the woolen and petroleum industries declined, and mill con sumption of cotton, the cut of lumber, and bituminous coal production increased less than is usual at this season of the year. Automobile production, not included in the index, was slightly smaller than in December, but con siderably larger than in January 1925. Factory employ ment changed but little in January, but the earnings of workers decreased considerably owing to the closing of plants in most industries, at the opening of the year for inventory-taking and repairs. The volume of building contracts awarded in January, although seasonally less than in December, exceeded that of any previous Jan uary on record. Contracts awarded were particularly large in the New York and Atlanta districts. T rade Sales of department stores and mail order houses showed more than the usual seasonal decline in January, March 1, 1926 but were larger than in January of last year. Wholesale trade declined considerably and was in smaller volume than a year ago. Stocks at department stores showed more than the usual increase in January and were about 11 per cent larger than at the end of January 1925. Freight car loadings declined in January and the daily average for the month was approximately the same as one year earlier. P r ic e s Wholesale prices, as measured by the index number of the Bureau of Labor Statistics, remained practically unchanged from December to January. B y groups of commodities, prices of grains, coke, and paper and pulp increased, while dairy products, cotton goods, bituminous coal, and rubber declined. In the first three weeks of February there was a decline in the price of grains, and following the settlement of the strike in the anthracite region, a drop in the prices of bituminous coal and coke. Price advances were shown for refined sugar, copper, and petroleum. B a n k C r e d it A t member banks in leading cities the seasonal decline in the demand for credit, which began at the turn of the year, came to an end toward the close of January, and in the early part of February the volume of loans and investments at these banks increased considerably. The increase was largely in loans for commercial purposes, which after declining almost continuously from their percent Index o f 22 Basic Commodities, adjusted for Seasonal Variations (1919 = 100). Latest figure, January. D is t r ic t Federal Reserve Bank9 New York B u s in e s s C o n d i t io n s in t h e U n i t e d S t a t e s PERCENT R e s e r v e Index o f United States Bureau of Labor Statistics. (1913 — 100; base adopted by B ureau). Latest figure, January. 2 M O N TH LY REVIEW, MARCH 1, 1926 Weekly Rates in New Y ork M oney Market. Commercial Paper Rate on 4- to 6-M onths Paper and Acceptance Rate on 90-Day Paper. seasonal peak early in October, advanced by more than $50,000,000 in February. The growth in the commercial demand fo r credit throughout the country, together with some increase in currency requirements, was reflected in a withdrawal o f funds from the New York money market and was a factor in the increase in the demand fo r Reserve Bank credit after the end o f January. Reserve B anks’ holdings o f bills and securities increased by about $66,000,000 between January 27 and February 17. A s the result of the withdrawals o f funds from New Y ork the rates on call loans became somewhat firmer in February, but commercial paper rates were slightly lower. Money Market M oney market changes in February reflected largely the usual seasonal tendencies. A s spring needs o f busi ness fo r credit and currency arose in various parts of the country, funds were drawn from the New Y ork market, money rates stiffened, and member banks in New Y ork City foun d it necessary to increase their bor rowings from the Federal Reserve Bank. Evidence o f the transfer of funds to the interior may be seen in a reduction of the gold reserves of the Fedral Reserve Bank of New Y ork from $1,031,000,000 on January 20 to $910,000,000 on February 17. M uch o f this difference represents the transfer of funds to other districts through the gold settlement fund, as a conse quence of commercial and bank transactions between this and other districts, which presumably represent largely the withdrawal o f funds from New Y ork for use in spring manufacture and trade. A n indication o f the use o f these funds is found in an increase in commercial loans o f reporting member banks in other districts, and an increase in currency in circulation throughout the country between the middle o f January and the middle of February amounting to about $40,000,000. M onthly Averages of W eekly Figures for Member Banka in 101 Leading Cities. Latest Figures are Averages for Three W eekly Report Dates in February. This withdrawal o f funds to other districts impaired the reserves o f member banks and made it necessary fo r them to borrow from the Reserve Bank in order to maintain their reserves at the required figures. A s a consequence the rediscounts and advances o f the F ed eral Reserve Bank o f New Y ork increased nearly $100,000,000 between January 27 and February 17. Changes in money rates during this period reflected the same tendencies. Call money rates reflected simul taneously with the increase in Federal Reserve redis counts the need o f member banks fo r replenishing their reserves, and the prevailing call loan rates during the first three weeks in February were 4 % to 5 % per cent as com pared with 4 per cent in the latter part of January. B rokers’ time loans also advanced slightly to 4 % per cent. Commercial paper rates and bankers acceptance rates, which usually reflect somewhat more slowly any changes in money conditions, remained steady in February at 4 % per cent fo r prime commer cial paper and 3 % per cent fo r ninety-day acceptances. Commercial paper dealers which report each month to this bank their outstanding commercial paper re ported a total on January 31 o f $654,000,000, a figure 5 per cent larger than the amount reported one month previous. The increase is in accordance with the usual seasonal tendencies. The present volume o f paper out standing is 20 per cent less than a year ago. D u rin g F ebruary there was some indication o f a furth er in crease in the amount o f borrow ing through the com mercial paper market. The accom panying diagrams indicate the extent to which the changes in the money market during the past month have been seasonal in nature. The lefthand diagram showing the total holdings o f bills and securities by the Federal Reserve Bank of New Y ork indicates that the increase in such holdings between the latter part o f January and the middle of February was somewhat larger than in the two preceding years, but that the general movement is in accordance with past FEDERAL RESERVE AGENT A T NEW YO R K 3 MILLIONS OF DOLLARS NOVEMBER Total Bills and Securities o f Federal Reserve Bank o f New York. Latest figure, February 22. experience. The present level of bill and security hold ings o f the Reserve Bank is about the same as early in December. The diagram at the right showing the movement of the call loan rate shows a similar situation. The u p ward movement of rates in the past month has been normal and the current level is close to that of early December. Loans to Brokers and Dealers A t the request of the Federal Reserve B oard the weekly reports made by member banks in New Y ork City to the Federal Reserve Bank have been extended to include figures showing the loans to brokers and dealers secured by stocks and bonds made by 61 New Y ork City reporting member banks fo r their own ac count and fo r the account o f others. These figures were published fo r the first time in the February F ed eral Reserve Bulletin and are now made public in the weekly press statement. The addition o f this item to the weekly statement is in accordance with the policy which the Federal R e serve System has pursued o f extending from time to time the scope o f the inform ation currently made public on credit and business conditions. The follow ing table gives the figures reported by the banks fo r each week since the beginning o f the year. The total amount o f these loans has shown little net change since the first week of the year, but there has been a change in the character o f the loans. Loans by New Y ork City banks fo r their own account have been reduced 180 millions since January 6 and loans placed fo r out-of-town banks and others have increased by about the same amount. It is probable that this change is largely accounted fo r by the movements which were taking place over the first of the year. A t that time there was a considerable flow of funds from New Y ork to the interior to meet year-end requirements and it is probable that out-of-town funds were thus withdrawn from the money market and that New Y ork City banks DECEMBER. JANUARY FEBRUARY Call Loan Renewal Rate by Days. were called upon to make advances to fill the need thus created. The change which has follow ed since the early part o f the year is probably a readjustment from the unusual situation at that time. Loans to brokers and dealers secured by stocks and bonds (In millions of dollars) 1926 For own account For account of out-oftown banks For account of others Total 13............................ 20............................ 27............................ Feb. 3 ........................... 10........................... 17........................... 1,338 1,267 1,232 1,201 1,222 1,199 1,159 1,239 1,292 1,306 1,287 1,280 1,340 1,354 564 573 593 610 590 598 626 3,141 3,132 3,131 3,098 3,092 3,137 3,139 Simultaneously with the collection and publication o f these reports from New Y ork City banks the New Y ork Stock Exchange arranged to receive from its members at the close o f each month the amounts they are borrow ing in New Y ork City. There will thus be made avail able reports by both lenders and borrowers showing the amount o f loans to brokers and dealers on stocks and bonds. The first report by the Stock Exchange fo r January 30 showed that Stock Exchange members were borrow ing $3,043,000,000 from New Y ork City banks and trust companies, and $470,000,000 from private bankers and others, or a total o f $3,513,000,000. This total is larger than the figures reported by the member banks in New Y ork City because it includes loans placed directly by private bankers and others who do not re port to tbje Federal Reserve Bank. Security Markets Representative price averages of industrial stocks ad vanced early in February to new high levels, about 3 points above those o f last November, but later in the month price movements became irregular and trading diminished somewhat in volume. Railroad shares were com paratively steady at about 2 to 3 points below the high levels o f early January. 4 M ON THLY REVIEW, MARCH 1, 1926 H igh grade corporation bonds continued strong, and price averages again attained new high levels since 1917. The U nited States 3 % per cent Liberty bonds rose % o f a point to a new high level for the year but other Government issues were steady. In a generally firm foreign list, South Am erican issues were particularly strong. The volume of new financing declined in February from the exceptionally large January total, but was nearly as large as in February 1925. The largest offering was $75,000,000 o f serial bonds and corporate stock o f the City o f New Y ork, which, fo r the longer maturities, were sold on a 4.15 per cent basis as com pared with a 4.05 per cent basis fo r the similar issue o f last May. Other offerings included a $50,000,000 issue of automobile finance com pany notes, a $40,000,000 Canadian Government refunding loan, and a con siderable number o f industrial and public utility stock and bond issues. F o r e ig n F i n a n c in g The number o f foreign security offerings was fairly large during January and early February, but in the absence o f any very large issues the totals were below the 1925 monthly average. A s in recent months the proportion o f corporate issues continued large. In 1923 and 1924, by fa r the larger part o f the offerings was governmental issues, but more recently issues by fo r eign corporations have been an increasingly im portant element. This change is illustrated by the accom pany ing diagram, which shows by quarters the average monthly totals divided between government and cor poration issues. Exports, on the other hand, valued at $399,000,000, were $69,000,000 less than in December and $47,000,000 less than in January 1925. This January excess of imports over exports constituted the first unfavorable trade balance fo r January in any year since 1893, and the seventh im port balance in the last three years, follow ing an uninterrupted export balance in every month from the end o f 1914 to the end o f 1922. The tendency in recent months toward an un favor able balance o f foreign trade appears to be due partly to the large raw material requirements o f our indus tries, and partly to the smaller need o f European countries fo r grain from this country. Im portant fa c tors in the heavy imports in January, as in other recent months, were the large receipts o f rubber and silk, while the principal reductions in exports com pared with a year previous were in cotton and grain ship ments. The decline in cotton exports appears to be due, at least in part, to unusually heavy shipments early in the season. Grain exports, however, have been consistently smaller than a year ago fo r several months. The accom panying diagram shows the dollar value o f our exports o f grain and raw cotton since the be ginning o f the war. It appears that with the gradual revival o f agricultural production in Europe since 1921, our exports o f grain have tended to decline, except follow ing the poor European crops o f 1924, while the consumption o f raw cotton from this country has steadily increased. ■ CORPORATE □ 50VERNMENT E x p orts o f C otton and G rain and G rain Products from the U n ited S ta te s, 1 9 1 5 to 1 9 2 6 . F o r e ig n E x c h a n g e 68 4Z 15 16 J7 M WCJJARTERSa51- m 3R04™ 1923 ‘ isr. gu 3R0 4TH 1924 1ST- 2"£>3W.4 T* 1925 ' 1JA^ ~: 19£6 ~ A v e ra g e M on th ly A m o u n t o f Foreign Securities* Governmential and C orporate, Sold in th e U nited S ta tes in E ach Q uarter o f the P a s t T h ree Y e a rs and in Jan uary 1 9 2 6 ( I n M illion s o f D o lla r s.) F o r e ig n T r a d e Merchandise imports in January w ere valued at $414,000,000, which is a total $17,000,000 larger than in December, and the largest m onthly total since 1920. The most striking movement in the foreign exchange market during February was the continued advance of the Japanese yen, which reached 46.38 cents on the 17th, the highest quotation in two years. The accom panying diagram shows the course o f yen exchange in recent years. On A ugust 31, 1923, the day preceding the great earthquake, the yen was quoted at 48.94 cents. Under pressure o f importations o f enor mous quantities o f reconstruction materials, the ex change fell steadily until December 5, 1924, when it reached the low point o f 38.13 cents. The recovery that has occurred since that time has accompanied a decline in imports, a substantial increase in exports, and some shipments o f gold to the U nited States by the Govern ment. The recent sharp advance, however, is attributed by the Japanese Minister o f Finance to speculation. H is statement as cabled to New Y ork is as follow s: 5 FEDERAL RESERVE AGENT AT NEW YO R K “ The Government's attitude toward the liftin g of the gold embargo is, as often has been declared, to avoid as fa r as possible any artificial means fo r the recovery of the price of yen, but to have i t naturally improved by means of rehabilitation of our economic world and im provement of our trade balance. 4‘ The time of our return to the gold standard w ill be when our exchange thus recovers close to par and when we consider that the liftin g of the gold embargo w ill neither disturb seriously our economic world nor result in sudden withdrawals of gold from Japan. We w ill not l i f t our gold embargo because of the temporary unnatural recovery of the yen caused by speculation. The sudden rise of exchange is not desirable, as i t disturbs our market and our foreign trade. “ We wish the aforesaid attitude of our Government to be clearly understood, so that a more conservative at titude w ill be taken and we w ill see a stabilized movement of our exchange rates. ” The largest gold im port in the first twenty-three days o f February was $10,000,000 from the new Banco Cen tral de Chile, which is permitted to include in its re serves earmarked gold held abroad and deposits in London and New Y ork payable in gold, and to redeem its notes at its own option in gold coin, gold bars, or drafts on London or New Y ork payable in gold. Ship ments o f $7,000,000 were also received from Canada, bringing imports from Canada this year to nearly $25,000,000, or more than half o f the $43,000,000 gold shipped to Canada in October and November. E xports in February have been small and the month to date shows a net im port o f $15,400,000 fo r the P ort o f New Y ork and Canada. Excess of CENTS 1925 Imports Exports January............. February........... M arch................ A p ril................... M a y .................... $ 5,037,800 3,602,527 7,337,322 8,869,883 11,392,837 4,426,135 10,204,112 4,861,736 4,128,052 50,740,649 10,456,115 7,216,004 $73,525,943 50,599,708 25,104,416 21,603,945 13,389,967 6,712,480 4,416,452 2,135,690 6,784,201 28,039,190 24,360,071 5,967,727 19,351,202 3,086,870 September. . . . 1926 Imports Exports $68,488,143 46,997,181 17,767,094 12,734,062 1,997,130 2,286,345 $ 5,787,660 2,726,046 22,701,459 2,656, i49 13,903,956 i,248,277 16,264,332 The im port movement since the middle o f last year may be interpreted as partly due to seasonal causes as in years before the war there was frequently a gold im port balance during the fall and early winter when crops were exported, and a gold export balance in the spring and early summer. B u ild in g Course o f Japanese Exchange at New Y ork, 1914-1926. Sterling reached a new post-war high o f $4.8656 at the beginning o f February, reacted slightly, and there after fluctuated within narrow limits near $4.86. French francs continued to decline, touching 3.55 cents on the 20th o f the month. Belgian and Italian rates continued steady. The advance in Norwegian and Danish kroner was resumed, the form er reaching 21.75 cents, and the latter 26.18, which is the highest quota tion since January 1919. The discount on Canadian funds increased to almost half a cent, and there was a further movement o f gold from Canada amounting to $7,000,000. G o ld M o v e m e n t In January a net gold im port o f $16,300,000 was re ported fo r the country as a whole, the largest import balance since last October. Total im ports in January amounted to $19,300,000, o f which $17,800,000 came from Canada, accom panying the decline in Canadian exchange. E xports were $3,000,000, one-third o f which went to the Straits Settlements. Reports o f building activity during the month of January indicate a continuation o f the exceptional ac tivity o f the second half o f 1925. Contracts awarded during January fo r new construction, as reported by the F . W . D odge Corporation, fo r 37 states, were 48 per cent larger than in January o f last year, and sub stantially larger than in January o f any previous year. The increase in the New Y ork and Northern New Jersey district was 76 per cent, due largely to the inclusion o f a $50,000,000 contract fo r a power plant. The South eastern and M iddle A tlantic states also reported large gains, but the increase in contracts awarded in the re maining states was relatively small. Permits issued in 426 cities showed an increase over January 1925 o f 9 per cent, according to the reports o f S. W . Straus & Co., with about the same regional differences as were shown in the awarding o f contracts. The diagram on page 6 gives an analysis o f the types o f building permits issued in Manhattan since 1902. In order to make the data fo r earlier and recent years comparable the figures have been adjusted to make allowance fo r changes in construction costs. The dia gram thus shows approxim ately the changes during the period in the actual volume o f building in Man hattan. It appears from this diagram that the large volume o f residential building in 1925 has been ex M ON THLY REVIEW, MARCH 1, 1926 ceeded in a few earlier years during the period from 1903 to 1910. D uring this period the population of Manhattan grew more rapidly than at any subsequent time. From 1911 to 1919 residential building dropped off steadily, even aside from the cessation o f building during the war, and during the same period the popula tion o f Manhattan decreased. There has follow ed from 1920 to 1925 a rapid expansion of apartment house building, and a gradual increase in population. In these three periods building and population have moved together and it is difficult to say which is cause and which effect. It is reasonable to believe, however, that the amount and character of available housing have been im portant influences on population movements of Manhattan. 25,000 additional men fo r a period o f more than two weeks. Per capita earnings o f factory workers in New Y ork State continued in January at the high level o f De cember, but a reduction was reported fo r the country as a whole, due to suspensions fo r inventories and plant repairs at the beginning o f the year. Production Production in a m ajority o f reporting industries was larger in January than in December and was also above the estimated normal. The follow ing table shows this ban k ’s indexes o f p ro duction in which allowance is made fo r seasonal varia tions and year-to-year growth. (Computed trend of past years=100 per cent) 1925 Producers' Goods Steel ingots................................................ Bituminous coal........................................ Copper, U. S. mines................................. Tin deliveries............................................ Zinc............................................................ Petroleum.................................................. Gas and fuel oil......................................... Cotton consumption................................. Woolen mill activity*............................... Cement...................................................... Leather, sole............................................. Silk consumption*.................................... 1926 Jan. Nov. Dec. Jan. 102 113 109 109 130 97 123 111 96 98 144 122 78 122 90 110 110 104 118 111 119 100 95 93 123 102 73 121 98 123 116 102 109 113 116 107 98 88 124 113 68 122 98 110 116p 110 118 98 112 116 103 102 90 111 129 134 109 105 94 94 100 94 123 93 104 89 85 99 83 105 71 96 133 120 120 90 89r ** 166 175 130 108 132 104 80 184 97 98 82 100 135 141 120 95 95 ** 137 138 132 i29 105 93 86p 125 i32 Consumers' Goods Amount o f Building, in 1913 Dollars, for W hich Permits W ere Issued in Manhattan Each Year from 1902 to 1925. The substantial volume of business building in 1925 also appears to have been exceeded in earlier years. The record breaking total for all types of building in 1925 was largely due to an unusual volume of permits fo r hotels, industrial structures, and public buildings. Employment and Wages Changes in factory employment from December to January were largely seasonal. F or the country as a whole there was an increase of less than .1 per cent over December. The increase was confined to New England, however, and in New Y ork State and other sections of the country a slight reduction during the month was reported. The demand fo r labor at the state employment offices remained substantially smaller than the number o f ap plicants in January, and was but little larger than a year ago, apparently due in part to the fact that there was little call fo r casual labor for snow removal. Such unemployment as existed, however, was limited chiefly to common labor, clerical help, and workers involved in labor disputes such as the anthracite coal miners. In February, unemployment was diminished by the re turn o f the miners to work and all available common labor was employed in the cities fo r snow removal, the City o f New Y ork alone em ploying betweeen 8,000 and Cattle slaughtered.................................... Calves slaughtered................................... Sheep slaughtered..................................... Hogs slaughtered...................................... Sugar meltings, U. S. ports..................... Wheat flour............................................... Tobacco, manufactured........................... Gasoline..................................................... Paper, total............................................... Boots and shoes........................................ Anthracite coal......................................... Automobile, all......................................... Automobile, passenger............................. Automobile, truck..................................... 104 116 103 82 139 90 86 80 111 ii9* '83 p ** 120 119 120 * = Seasonal variation not allowed for. **=Strike. p=Preliminary. r=Revised. Indexes of Business Activity The level of general business activity in January ap pears to have equaled the highest figures fo r recent years, after allowance fo r the usual seasonal variation. Bank debits in 140 centers outside o f New Y ork City were the heaviest ever reported fo r January and were 6 per cent larger than in January o f last year, an ex ceptionally high month. R ailw ay shipments o f mer chandise and miscellaneous freight continued above es timated normal as measured by the trend o f past years and were larger than last year, but loadings o f other commodities including coal, forest products, and grain were 10 per cent smaller than a year ago. Indexes o f distribution to the consumer such as retail sales at department and chain stores and mail order houses, and magazine and newspaper advertising, were higher than a year a g o ; factory employment was higher, FEDERAL RESERVE AGENT A T NEW Y O R K business failures were fewer, and building permits con tinued substantially above normal. In the follow ing table this bank’s indexes are given in percentages o f the computed trend, with allowance fo r seasonal variation, and, where necessary, for price changes. (Computed trend of past years=100 per cent) 1925 1926 Jan. Nov. Dec. Jan. Primary Distribution Car loadings, merchandise and misc....... Car loadings, other................................... Wholesale trade, Second District............ Exports...................................................... Imports...................................................... Grain exports............................................ Panama Canal traffic............................... 104 107 94 94 110 67 95 106 104 91 86 120 40 91 106 106 97 89 124 47 104 105 100 82p 129p Distribution to Consumer Department store sales, Second District Chain store sales....................................... Mail order sales........................................ Life insurance paid for............................. Magazine advertising............................... Newspaper advertising............................ 96 96 114 107 92 94 99 99 116 112 109 102 100 102 134 113 102 97 97 97 122 99 103 98 111 122 111 125 111 122r 114 128 General Business Activity Bank debits, outside of New York City. Bank debits, New York City.................. Bank debits, 2nd Dist. exclusive of New York City.............................................. Velocity of bank deposits, outside of New York City ................................... Velocity of bank deposits, New York C it y ...................................................... Shares sold on New York Stock Ex change*.................................................. Postal receipts........................................... Electric power........................................... Employment, N. Y. State factories........ Business failures....................................... Building permits....................................... 105 107 100 110 101 103 101 107 111 125 124 237 98 106 98 98 141 279 99 108 100 102 166 245 108 111 100 101 160 221 97 io i’ 97 149 Seasonal variation not allowed for. r= Revised V= Preliminary W h o le s a le T r a d e January sales in wholesale lines in this district aver aged 4 per cent smaller than in January a year ago, but the number o f lines reporting gains and losses was almost evenly divided. Collections were generally larger than in January 1925, except in cotton jobbing and w om en’s coat and suit and shoe trades. Accounts receivable at the end o f the month were considerably larger than a year ago in most lines. Commodity Percentage Change Jan. 1926 from Dec. 1925 Percentage Change Jan. 1926 from Jan. 1925 Stock Stock Acc’ts Net end of Net end of Collec receiv Sales Month Sales Month tions able — 5.6 + 41.5 + 8.4 +40.7 —26.0 — 11.5 + 7.7 —31.0 — 0.4 — 28.0 — 20.7 — 8.6 — 0.5 +37.0 — 66.9 + 0.2 + 3.6 + 8.0 — 27.6 — 20.6 +12.6 — 10.4 — 19.9 + 0.9 + 7.0 + 22.5 + 0.4 — 16.8 +24.9 — 10.9 +11.6 +10.1 — 2.6 +23.0 — 18.2 Weighted Average.......................... + 3.6 — 4.4 Groceries.............................................. Mens’ clothing.................................... Women’s dresses................................. Women’s coats and suits................... Cotton goods-Jobbers......................... Cotton goods-Commission................. Silk goods............................................. Shoes.................................................... Drugs................................................... Hardware............................................. Machine tools...................................... Stationery............................................ Paper.................................................... Diamonds............................................ Jewelry................................................ — 1.0 + 2.1 +12.6 + 15.5 —20.3 — 9.9 — 8.0 +10.3 +19.7 — 3.2 — 5.1 + 4.1 + 34.5 +22.5 +18.6 + 8.3 — 7.7 + 7.5 +14.7 +17.0 +11.0 + 1.7 + 2.6 +10.4 +12.6 |—7.9 + 8.4 — 12.6 + 4.3 + 8.2 Department Store Trade January department store sales in this district aver aged nearly 4 per cent larger than a year ago, although there was one less selling day this January. Sales o f apparel stores were 8 per cent larger, and leading mail order houses reported a gain o f similar amount. Department store collections exceeded those o f a year ago, but accounts receivable at the end o f the month remained larger than at the end o f January 1925. Stocks o f merchandise on hand were 5 per cent larger than a year ago, a slightly larger increase than in sales, so that the rate o f stock turnover was slightly lower. In apparel stores, however, the increase in stocks was not so large as in sales, and the turnover was slightly higher than in January 1925. Percentage Change January 1926 from January 1925 Locality Net Sales Stock on Hand Collections Accounts (end of Receivable month) + 2.8 + 1.3 + 6.3 + 1.8 +10.0 + 8.4 + 1.8 — 7.1 + 9.4 — 6.5 + 15.3 + 4.0 + 4.9 + 5.4 + 3.1 0 + 1.2 +11.7 + 7.3 — 3.6 All department stores................... + 3.7 + 5.0 Apparel stores............................... Mail order houses......................... + 7.8 + 7.9 + 5.1 New York...................................... Buffalo........................................... Rochester....................................... Syracuse......................................... Newark.......................................... Bridgeport..................................... Elsewhere....................................... Northern New York State....... Central New York State.......... Southern New York State....... Hudson River Valley Dist....... Capital District......................... Westchester District................. + 7.8 + 5.7 +14.2 + 6.4 + 10.8 +24.9 + 5.S + ’ 9i4 + 7.7 — 15.6 + '9.3 + 6.2 + 3.5 +10.8 + 7.8 +20.8 + 7.0 +12.0 +11.8 + 4.1 + 7.7 + 8.1 Changes in sales and stocks in m ajor departments, com pared with those of a year ago, are shown in the fo l lowing table: Net Sales Stock on Hand Percentage Change Percentage Change January 1926 January 31, 1926 from from January 1925 January 31, 1925 Toys and sporting goods........................ Luggage and other leather goods.......... Home furnishings.................................... Toilet articles and drugs......................... Linens and handkerchiefs....................... Musical instruments and radio.............. Books and stationery.............................. Silks and velvets..................................... Men’s furnishings.................................... Women’s and Misses’ ready-to-wear. . . Cotton goods........................................... Men’s and Boys’ wear............................ Silverware and jewelry........................... Women's ready-to-wear accessories. . . . Shoes......................................................... Woolen goods........................................... Miscellaneous........................................... +48.1 +16.2 +11.8 +11.5 +10.2 +10.2 + 9.9 + 9.3 + 8.8 + 8.4 + 8.0 + 6.7 + 5.7 + 4.0 + 2.4 + 2.1 — 10.9 — 20.5 — 0.8 +30.7 +19.0 + 2.4 + 5.3 — 1.8 — 0.9 +10.8 + 7.7 — 2.6 + 4.8 +18.3 — 1.5 — 0.5 + 3.4 + 7.5 — 3.5 + 5.4 — 5.4 — 4.6 Chain Store Sales The January increases in chain store sales compared with a year ago were not so large as in December, but continued substantial, averaging 11 per cent. The open ing of new stores continued even more rapidly than a year ago and exceeded the increase in total sales, so that sales per store averaged smaller than a year ago in fou r out o f seven reporting lines. V ariety stores reported the largest increase in sales over a year ago, and the chain drug store business, which a year ago appeared practically stationary, showed a substantial increase. The chain grocery business con tinues to expand rapidly. Percentage Change January 1926 from January 1925 Type of Store Number of Stores +16.4 +15.8 + 2 0 .5p Variety............... Drug................... Grocery.............. Ten Cent............ Tobacco.............. Shoe.................... Candy................. + 6.0 +15.9 +16.7 +19.8 + 21.9 +17.1 + 1 1 .4p + 9.4 + 4.0 Sales per Store + 4.7 + 1.1 + 0.4 — 7.6p + 3.3 — 10.3 — 13.5 — 16.2 +10.8 — 6.4 + 1.0 +18.3 Total............... Total Sales large, though automobile production was only slightly larger than in 1923. Profits o f tobacco companies, mis cellaneous industrials, and stores included in the tabula tion have increased steadily during the past three years. In the clothing and textile group 1925 profits were well above those o f 1924 but less than half those o f 1923. The railroad equipment industry was the only group to show a decrease in profits com pared with 1924. Telephone companies and other public utilities con tinued to report steady increases in net earnings. The profits o f Class 1 railroads showed a 15 per cent increase over 1924 and were the largest in recent years. The follow ing table shows the detailed figures fo r net profits o f the concerns fo r which statements were avail able in various groups, and the diagrams show the rela tive profits fo r these groups in the last three years, taking 1924 figures in each case as 100 per cent. p=Preliminary Number of Corp. Business Profits in 1925 A nnual earnings statements now available fo r 294 industrial, mercantile, and public utility corporations indicate that net profits of such concerns in 1925 were about 30 per cent larger than in 1924, or in 1923. W hile these statements represent sim ply a sampling o f all con cerns, the concerns included are sufficiently representa tive so that the conclusion may fairly be drawn that the year was one o f very large profits. These large profits accompanied unusually high levels of production and trade in 1925, but, with a few exceptions, relatively stable prices o f m anufactured goods. Rubber companies reported the largest increase in profits com pared with either 1924 or 1923, and the gains fo r the oil and automobile industries also were unusually ALL INDUSTRIALS 1923 1924 1925 11 9 14 $142,901 23,047 23,721 $116,765 12,115 31,366 $130,632 9,742 60,005 16 7 23 16 8 73 13 103,946 11,635 77,937 25,262 38,681 161,658 62,599 78,424 23,517 77,782 6,979 39,944 160,462 67,203 160,882 48,313 82,753 11,991 42,319 209,593 83,908 Total 10 Groups........ 190 $671,387 $614,557 $840,138 Other Public Utilities... 68 36 $136,705 111,713 $150,793 127,116 $185,500x 149,092 Steel Companies............ R. R. Equipment.......... Oils.................................. Motors & Motor Ac cessories (Exclusive of Rubber............................ Food and Food Products Clothing & Textiles. . . . Misc. Industrials........... 104 $248,418 $277,909 Total 12 Groups........ 294 $919,805 $892,466 $1,174,730 Class I R. R................... i9i $983,736 $986,718 $1,136,984 1924 FOOD M OTO RS & I STEEL 1925 1923 1924 1925 ACCESSORIES! I EQUIPMENT 1925 1924 3925 1923 1924 $334,592x Total Public Utilities. S 1923 Net profits in thousands of dollars 1925 1923 RUBBER FOOD PRDDUCT5 ■ 1924 1925 1923 1924 1925 1923 .1924 1925 ;Cl£fTWIN<r& I TEXTILES TOBACCO m 1924 hi 1925 1923' 1924 1925 MtSCL INDUSTRIALS STORES ill i 1923 1924 1925 1923 1924 1925 TELEPHONE 1923 1924 1925 OTHER PUBLIC UTILITIES 1923 1925 Annual Net Profits o f Industrial, Mercantile, Public Utility, and Railroad Corporations, in Percentages o f 1924. CLASS 1 RAILROADS 1923 . 1934 1925
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