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MONTHLY REVIEW o f C r e d it a n d S e c o n d Federal Reserve Agent B u s in e s s F e d e r a l R e s e r v e C o n d itio n s D is t r ic t Federal Reserve Bank, New York May 1, 1925 T rade Business Conditions in the United States RO D U C TIO N in basic industries was smaller in March than in the two preceding months but was as large as at any time in 1924. Distribution of merchandise both at retail and wholesale was in greater volume than a year ago. W holesale prices, after in creasing since the middle o f 1924, remained in March at about the same level as in February. P P roduction The Federal Reserve B oa rd ’s index of production in basic industries declined in March to a level 5 per cent, below the high point reached in January. Iron and steel production and cotton consumption showed less than the usual seasonal increase during March and activity in the woolen industry declined. There was a further decrease in the output of bituminous coal. In creased activity in the automobile industry was reflected in larger output, employment, and payrolls. In general, factory employment and payrolls increased during the month. Value of building contracts awarded in March was the largest on record, notwithstanding the recent considerable reduction in awards in New Y ork City. Wholesale trade in all principal lines increased in March and the total was larger than a year ago. Sales at department stores and by mail order houses increased less than is usual at this time o f the year. Stocks of shoes and groceries carried by wholesale dealers were smaller at the end o f March than a month earlier, and stocks o f dry goods, shoes, and hardware were smaller than last year. Stocks o f merchandise at department stores showed more than the usual seasonal increase and were somewhat larger than last year. P rices Wholesale prices o f most groups o f commodities in cluded in the index o f the Bureau o f Labor Statistics declined somewhat in March but owing to an advance o f food prices, particularly o f meats, the general level of prices remained practically unchanged. Prices of many basic commodities, however, were lower at the middle o f A p ril than a month earlier. B a n k C redit The volume o f loans and investments at member banks in principal cities continued at a high level during the five-week period ended on A p ril 15. Total loans declined, PfRCTNT. jr — ! ---------------------- .. _ -------- 161 WHOLESALE P RICES t913«lOO 1922 Index of 22 Basic Commodities Corrected for Seasonal Variation (1919 = 100 Per cent. Latest figure, March.) 1923 1924 19 2.5 Index of U. S. Bureau of Labor Statistics (1913 = 100 Per cent, base adopted by Bureau. Latest figure March.) MONTHLY REVIEW, M AY 1, 1925 BILLIONS OF DOLLARS Reserve Bank Credit—Weekly Figures for 12 Federal Reserve Banks. (Latest figures April 22.) Member Bank Credit—Weekly Figures for Member Banks in 101 Leading Cities. (Latest figures April 15.) reflecting chiefly a reduction in loans on stocks and bonds, and also some decrease in loans fo r commercial purposes. Investment holdings, which early in March had been nearly $300,000,000 below the high point of last autumn, increased by the middle o f A p ril by about half this amount. Demand deposits, after declining rapidly between the middle o f January and March 25, increased during the follow ing weeks, but on A p ril 15 were still $633,000,000 below the maximum reached in J anuary. A t the Reserve Banks the volume of earning assets on A p ril 22 was about $75,000,000 below the high point at the end of February, but continued above the level of a year ago. Discounts fo r member banks were about twice as large in A p ril as at the exceptionally low point in the middle of January, while total U nited States securities and acceptances held were in smaller volume than at any time during the year. Somewhat easier money conditions in A p ril were indi cated by a decline o f one-eighth of one per cent, in the open-market rate on 90-day acceptances to 3 % per cent, and by sales o f prime commercial paper at below 4 per cent. g old at the disposal o f the Bank o f E ngland i f desired. It is believed that this w ill be an effective aid tow ard general resum ption o f g old paym en ts.” R em oval of British E m bargo on G old Exports On A p ril 28 the British Chancellor of the Exchequer announced that the Government proposed to introduce a bill granting a general license to the Bank o f England fo r the export of gold and bullion, effective immediately, and providing fo r the redemption of currency in gold bullion when the value involved is not less than 400 fine ounces o f gold. This action has the effect of reestablish ing a free gold market in Great Britain. A fte r the British announcement the follow ing state ment was issued by the Federal Reserve Bank o f New Y o rk : “ In con n ection w ith the reestablishm ent o f a fre e g old m arket in L on don the F ederal R eserve Bank o f N ew Y o rk has com pleted an arrangem ent, in w hich other R eserve Banks w ill participate, to place $200,000,000 A t the same time the follow ing statement was issued by Messrs. J. P. M organ & C o .: “ In con n ection w ith the reestablishm ent o f a fr e e g old m arket in L on don, the British G overnm ent have arranged a credit o f $100,000,000 w ith J. P. M organ & C o.” A s indicated by the statements, these two arrange ments are quite different. The latter is a governm ent banking credit, while the form er is an arrangement be tween the banks o f issue o f the two countries. U nder the arrangement between the Reserve Bank and the Bank o f England the credit could be made operative in the various ways provided by section 14 o f the Federal Reserve A ct. Sterling bills could be purchased by the Reserve Banks, a deposit balance could be created and maintained with the Bank o f England, or gold could be earmarked or exported. The precise form o f use, if any, would depend upon the needs o f the situation. Simultaneously with the British announcement, A u s tralia, New Zealand, H olland, and the D utch East Indies, announced the free export o f gold. A s a result o f the action o f the British Government, certain other E u ro pean currencies which have been stabilized with refer ence to sterling w ill become stabilized with reference to gold. M o n ey M arket Money conditions became slightly easier in A p ril, due to reduced activity in the security and com m odity mar kets, a moderate slackening in some lines o f trade, and Government interest payments on the 15th. W hile the commercial paper market continued in active and firm at New York, there was a good demand in the interior and sales at 3 % per cent, became more frequent than in March, although 4 per cent, continued to be the usual rate fo r prime paper. Dealers continued to report a scarcity of paper, and at the end o f March 3 FEDERAL RESERVE AGENT AT NEW YORK the supply outstanding through 26 dealers was only slightly above the seasonal low point reached at the end o f December. In the bill market easier conditions were reflected by an increased demand, especially fo r the short m aturi ties. As the supply o f new bills was small, dealers lowered their rates on 30-day bills by % to 3 % per cent, fo r purchases and 3 per cent, fo r sales, and their rates on 60 and 90 day bills by a similar amount to 3*4-3% per cent. Short term Government securities were also in somewhat larger demand, with the result that prices advanced slightly and yields were corre spondingly reduced. On the Stock Exchange the larger supply o f funds was reflected chiefly in the time money market where rates fo r 60-90 day loans dropped to 3% -4 per cent., compared with 4-4*4 per cent, in March. Call loan renewals ruled chiefly at 3Y2 to 4 per cent., or about the same levels as in the latter half o f March. Z95 M ILLIONS Comparison of Par Value of New Foreign Security Issues Offered in New York in the First Quarter of 1924 and 1925 by Types of Issues. (Figures in millions of dollars.) the type o f foreign issues sold. W hereas last year the issues wrere largely by governments and municipalities, this year they have largely represented financing by private corporations. Foreign Exchange Commercial Paper Outstanding—26 Dealers (Latest figure March 31) Security M arkets During A p ril stock prices recovered substantially from the low point of the March decline. In the case o f in dustrial averages the recovery amounted to nearly half the loss sustained in March. In railway averages the recovery was relatively small, due partly to weakness in the stocks of some western railroads. In the bond market the firmer trend o f prices was marked, and price averages o f high grade corporation bonds reached approximately the high levels o f 1922. United States Government bonds also reached new high prices fo r the year, but foreign bonds other than United K ingdom issues were generally lower than in previous months. Offerings o f $85,000,000 preferred s t o c k and $75,000,000 bonds o f the Dodge motor com pany were conspicuous in a large total of new security issues in A pril. R ailroad financing was also heavy, and there was a wide variety o f other types o f issues, including $64,240,000 foreign loans, among the largest of which were $14,000,000 Japanese public utility bonds, an $8,000,000 City o f Oslo loan, and $20,000,000 Province o f Ontario treasury bills. D uring the first quarter of the year, the par value o f foreign issues sold here amounted to $295,000,000, or slightly more than in the corresponding period o f last year. This is shown by the accom panying diagram, which indicates a change in Announcement by the British Government o f the pro posed removal o f the embargo on gold exports was fo l lowed by a rise in sterling to slightly above $4.84*4, or within 3 cents o f par. D utch exchange was also firmer, and strong advances in Norwegian and Danish krone carried these rates to additional new high levels since A ugust 1923. Swiss and Canadian rates by small ad vances again exceeded par. Accom panying discussion o f French Governmental changes and raising o f the note circulation lim it o f the Bank o f France, French exchange declined from some what above 5*4 cents to 5.11. Later in the month, however, there was a recovery to around 5.24, or not fa r from the average level o f previous months. Belgian exchange reacted slightly, but lire held steady at about 4.10 cents. A m ong the F a r Eastern exchanges Japanese yen at 42 cents maintained the substantial recovery recorded since the low o f 3 8% cents reached in December 1924. Rupees, however, reacted slightly, while Chinese ex changes and silver moved indecisively. In South A m er ica Argentine rates continued to recede from the high levels reached in January, and B razil exchange was also slightly lower. Gold M ovem en t E xports o f gold from the P ort o f New Y ork during 29 days o f A p ril totaled $20,000,000. O f the A p ril ship ments $3,000,000 represented shipments to India, follow - MONTHLY REVIEW, M AY 1, 1925 4 ing a lapse in the movement to that country in March, and $15,000,000 was additional withdrawals by the Reichsbank of gold earmarked here fo r its account. As imports amounted to $5,300,000, chiefly from the Nether lands, the net export movement from this port fo r the period was approxim ately $15,000,000. In addition to shipments from this port, however, $1,000,000 was re ported sent to Australia from San Francisco. The final figures on the gold movement fo r the entire country fo r March showed exports o f $25,000,000, about half as much as was shipped in February, and a third as much as in January. Im ports during the month totaled $7,000,000, chiefly from E ngland and Canada. The follow ing table gives a detailed summary o f the ex port movement by months and by countries o f principal destination for the fou r months ended March 31. D uring this period the net export balance totaled approxim ately $163,000,000. (In thousands of dollars) Country Dec. 1924 Jan. 1925 Feb. 1925 Mar. 1925 G erm any..................... British India.............. Australia..................... E ngland....................... N etherlands............... China & Hong K ong. S w eden........................ P oland ......................... All oth er...................... 20,000 5,674 17,500 36,466 6,354 5,078 3,284 942 1,003 12,510 16,228 16,793 1,032 1,035 540 15,120 63 2,758 50 ’ 1, i92 T otal E xports........ Total Im ports........ 39,675 10,274 N et E xp orts............... 29,401 10,264 1,324 220 1,001 Total 4 Months * 2,899 1,104 1,358 ’ 6,000 65,130 58,431 25,905 16,424 5,643 2,815 2,004 1,104 11,449 73,526 5,038 50,600 3,603 25,104 7,337 188,905 26,252 68,488 46,997 17,767 162,653 1,113 by no means uniform , and in some im portant industries the rate o f activity increased. In the iron and steel industry the daily rate o f output in March continued high but towards the close o f the month and in A p ril there was a substantial reduction in the number o f furnaces in blast. Further evidence also of slower buying appeared in lower prices and a reduc tion o f 421,000 tons in the unfilled orders o f the Steel Corporation at the end o f March. Bituminous coal production declined in M arch to 6 per cent, below a year ago, while anthracite production showed a loss o f 13 per cent. In the first half o f A pril, however, soft coal production was larger than last year. In the textile industry silk goods mills continued active, but woolen m ill activity showed a further decline to around 94 per cent, of normal as measured by the trend o f past years. The index o f m ill consumption of cotton also declined in March, after allowance fo r sea sonal variation. Production o f passenger automobiles, on the other hand, showed a larger than usual increase, and, although still below March 1924, when the output was close to the largest ever reached, was nearly equal to the high total of March 1923. Accom panying seasonal increase in build ing operations, cement output increased sharply and was larger than ever before fo r this season. The diagram on page 5 shows the changes in a number o f this ban k ’s indexes o f production during recent years; and the table below gives the index numbers in recent months fo r a larger number o f industries. In both cases the indexes are expressed as percentages o f the com puted trend, after allowance fo r seasonal variation. (Computed trend of past years=100 per cent.) Foreign Trade Both imports and exports o f merchandise showed large increases in March. E xports valued at $452,000,000 were, with the exception of last October and November when cotton and grain shipments were at their height, the largest since February 1921 and about onethird larger than in M arch 1924. Im ports of $385,000,000 were 20 per cent, larger than in March last year, and, excepting only March 1923, the largest since 1920. Compared wTith March a year ago, the increase m exports was due in large part to heavy shipments of cotton, which were nearly double those of M arch 1924. E xports of grain, especially wheat, were also fa r in excess of the March 1924 volume. In the case o f im ports, the increase over a year ago was partly due to large receipts of rubber and silk. In both cases the actual quantity imported was nearly double that of a year ago, and rubber prices were almost twice as high in March 1925 as in March 1924. Production A fter reaching high levels in January and February many of this ban k’s indexes o f production in leading industries declined in March. Decreases, however, were 1924 Mar. Jan. Feb. Mar. 105 110 89 94 73 93 125 111 82 95 125 129 75 102 113 109 109 130 97 123 111 96 98 144 146 78 106 113 96 lllr 119 97 120 105 101 97 119 136 83 105 107 83 107p 111 96 100 119 88 123 99 103 96 79 96 130 156 106 100 91 98r 131 138 101 110 149 83 112 116 103 102 90 111 138 169 109 105 77 94r 100 94 123 102 158 85 103 85 104 95 78 103 141 171 111 106 92 103r 110 106 127 Producers’ Goods Steel ingots.................................................... Bituminous co a l........................................... Copper, U. S. m ines.................................... Tin deliveries................................................ Z in c................................................................. Petroleum ....................................................... Gas and fuel o il............................................ Cotton consum ption.................................... W oolen mill a ctivity*................................. Lum ber........................................................... Leather, sole................................................. Consumers' Goods Cattle slaughtered........................................ Calves slaughtered ................................ Sheep slaughtered........................................ Hogs slaughtered.......................................... Sugar meltings, U. S. p orts....................... W heat flour................................................... Cigars.............................................................. Cigarettes....................................................... T obacco, manufactured.............................. Gasoline.......................................................... T ires*.............................................................. Newsprint...................................................... Paper, to ta l................................................... Boots and shoes............................................ Anthracite co a l............................................. Automobile, a ll............................................. Automobile, passenger................................ Automobile, truck........................................ *=Seasonal variation not allowed for. p=Preliminary r=*Revised 1925 96 94p 129 122p 82 110 143 98 88 115 89 96 80 98 ii3 102 91 v 85 r 119 121 112 FEDERAL RESERVE AGENT AT NEW YORK 5 cellaneous freight continued at a relatively high level. In the case o f other freight, the lower index in March reflected chiefly smaller coal traffic and a decrease in shipments o f livestock and grain after the unusually heavy marketing o f previous months. 150 125 .ANTHRACITE 100 TV A COAL j V. ' I 50 n f ..... ......... T ' 111 1SM6WKK5 19ZA BITUMINOUS COAL ioa 106 105 110 111 113 in 116 114 103 100% WOOL CONSUMPTION COTTON CONSUMPTIO BOOTS b SHOES V —> SOLE LEATHER Bank Debits in First Sixteen Weeks of 1925 in Percentages of the Corresponding Period of 1924, by Federal Reserve Districts. v tr Bank debits, both in New Y ork City and outside, con tinued to exceed all previous figures fo r the season, and fo r all districts from the first o f the year to A p ril 22 were larger than a year ago by 14 per cent. The accom panying diagram com paring the increases by Federal Reserve districts indicates particularly large increases in the New Y ork district where the security markets have been active, and in agricultural districts which were especially benefitted by the rise in prices o f farm products. In the follow in g table this bank’s indexes are given in percentages o f the com puted trend, with allow ance fo r seasonal variation and, where necessary, for price changes. (Computed trend of past years=100 per cent.) 1924 1925 Mar. Jan. Feb. Mar. 108 113 97r 84 102 73 138 104 113 94 r 94 110 67 95 112 109 lOOr 90 109 65 100 110 105 95 r 102p 113p 97 102r 85 103 91 96 97 96r 98 98 92 91 107 99r 101 99 98 93 98 96r 92 99 97 92 104r 107r lllr 122r 109r 117r IlOp 122v 104r lO lr 99r lO lr 107r 96 105 99r 104 197r lllr 98 106 92r 98 159r 112r 98 105 93r 96 | 18 lr 113r Primary Distribution Monthly Production in Basic Industries. Seasonal Variation Allowed for. (Computed trend of past years — 100 Per cent.) Latest Figures March. Indexes of Business A ctivity Indexes o f business activity fo r March generally showed a moderate slackening in trade from the high level o f February, particularly in distributive lines. This was true o f wholesale and retail trade, and mail order sales, notwithstanding that the actual sales were larger than the rather small totals o f M arch last year. Indexes o f foreign trade, on the other hand, rose sharply, and the railway movement o f merchandise and mis- Car loadings, merchandise and m isc. . . . Car loadings, other........................... Wholesale trade, Second D is trict.. E xports................................................ Im ports................................................ Grain exports..................................... Panama Canal traffic....................... i06 Distribution to Consumer Department store sales, Second D is t___ Chain store sales.......................................... M ail order sales........................................ ’ ’ Life insurance paid fo r ............................... Magazine advertising.................................. Newspaper advertising............................... General Business Activity Bank debits, outside of New York C ity. Bank debit?, New Y ork C it y ............... Velocity of bank deposits, outside of New York C ity ........................................ Velocity of bank deposits, New York C ity .................................................. Postal receipts.................................... Electric p ow er.................................... Employment, N. Y . State factories Business failures................................ Building perm its................................ p=»Preliminary Revised 93r 105 163r 6 MONTHLY REVIEW, M AY 1, 1925 E m p lo y m e n t a n d W a g e s A further increase o f 1 per cent, in the month ended March 15 carried the level o f factory employment in New Y ork State to a point 9 per cent, above the low level o f last summer, but still 6 per cent, below the level o f M arch 1924. Average weekly earnings o f factory workers stood at the highest level since 1920. A considerable factor in the March increase in em ploym ent over February was a sharp recovery in cement, brick, and other building materials industries, accom panying the seasonal expansion in outdoor construction work. The w om en’s clothing industry likewise showed a substantial gain, and there was a large gain in em ploym ent in automobile plants, though in the latter case the number of workers remained smaller than last year. O f the industries which showed declines, the woolen industry was most conspicuous, while employment in cotton mills continued relatively low, due to wage disputes. Reflecting the larger factory employment, and the increase in outdoor work, employment offices report a stronger demand for labor, with the result that prac tically all o f the better class of labor is fu lly employed, while a shortage o f skilled mechanics continues in some localities. Farm labor supply is reported slightly more plentiful than last year, but demand is said to be re stricted b y the combination of high wages and low return to farmers in New Y ork State on last y e a r’s crops. Building The volume o f new building contracted fo r continues generally at high levels, as shown by an increase o f 11 per cent, in March over last year in the F . W . Dodge Corporation figures fo r 36 states, including New Y ork and Northern New Jersey. In this district, fo r the second month, contracts fell fa r below the level o f a year ago, largely because o f a heavy loss in residential contracts in New Y ork City, where the volume o f build ing o f this type has been unusually large fo r several years. In the case o f building permits applied for, the figures fo r March also showed a heavy decline in New Y ork City, and as increases in other cities were not sufficient to offset the loss in New York, the aggregate fo r 356 cities and towns, published by S. W . Straus & Co., fell 14 per cent, below March 1924. Figures on building fo r the first quarter o f the year show a similar contrast between contracts let and per mits applied for. The follow ing diagram, giving a some what detailed comparison o f the quarterly figures by sections o f the country, indicates a gain o f 4 per cent, in contracts, while permits, which precede contracts, show a decrease o f 9 per cent. In com paring these figures, allowance should be made fo r the fact that con tracts include building projects outside o f incorporated towns and cities not covered by permits, and likewise road construction work, which is running ahead o f a year ago. 1,032. WESTERN ' 1 SOUTHERN CENTRAL PITTS BURG DIST. MID. ATLANTIC N.EASTERN EASTERN N.Y. STATE & NORTHERN N T . fH 1ST.QUARTER 1ST.QUARTER 1ST. QUARTER 192.4 192.5 1924 CONTRACTS 3 6 STATES P E R M ITS 1ST. QUARTER 1925 356 C IT IE S Comparison of Building Contracts Awarded and Permits Applied for in Different Sections of the Country During the First Quarter of 1924 and 1925. (Figures in millions of dollars.) Com m odity Prices W hile the general average o f wholesale prices com puted by the Department o f Labor fo r the entire month o f March was little changed from the average fo r F eb ruary, the week to week movement o f basic commodities has been almost steadily downward since early in March. On A p ril 25 this bank’s index o f 20 basic commodities stood at the lowest point since November 1924, and 7.7 per cent, below the high point o f the year reached on March 7. Most commodities in the index shared in these de clines. M ay wheat and corn in Chicago sold down to new low levels fo r the year at $ 1 .3 6 ^ and $.91%? from which, however, there were recoveries to $ 1 .4 9 ^ and $1.06% on A p ril 28. H og prices, which in M arch had reached the highest levels since 1920, declined about 13 per cent, and cattle were also lower. W ool continued the decline begun in March, and cotton touched the lowest since January 31. A m ong the metals, p ig iron and steel, lead, and copper weakened further, though late in A p ril copper recovered somewhat on reports o f curtailment o f output. Reflecting large w orld supplies o f sugar and mcm. Price Indexes of 20 Basic Commodities in the United Stiates and England. (1913 = 100 Per cent. Latest figures April 25). FEDERAL RESERVE AGENT A T NEW Y O R K prospects of a large crop, raw and refined sugar prices fell to the lowest levels since 1922. Crude rubber, on the other hand, continued to rise and at 45 cents was nearly double the price o f a year ago. Hides held com paratively steady, and silk recov ered slightly from the low point reached at the end of March. The diagram on the preceding page shows the changes in this bank’s Am erican 20 basic index, together with the changes in a similar index fo r Great Britain. This ban k ’s index of the general price level, which includes not only wholesale prices but retail prices, rents, and wages, stood in March at 186 per cent, of the 1913 average, compared with 185 per cent, in February, and 182 per cent, in March 1924. ranging from 2 per cent, in w om en’s coats and suits and dresses to 18 per cent, in machine tools. FIRST QUARTER 1 19^4 o !o COTTON FIRST QUARTER •/„ 192.5 COM, HOUSE 5 SJLK. G OO DS M E N S C L O T H IN G D IA M O N D S f DRUG S , W O M E N 'S W O M E N 'S DRESSES COATS HARDWARE & S U IT S ‘ PAPER W holesale Trade S T A T IO N E R Y March wholesale trade in this district, while showing a considerable seasonal increase over February, averaged only 2 per cent, larger than in M arch 1924, when sales were unusually small in some lines, due partly to the lateness of Easter. This bank’s index o f wholesale trade, after rising to 100 per cent, o f estimated normal in February, fell to 95 per cent, in March, or close to the level of January. This decrease was due chiefly to a 10 per cent, decline in grocery sales from March 1924, follow ing substantial decreases also in January and February. In the cotton goods and apparel trades, on the other hand, sales were generally larger than last year, and trade in silk goods was the largest since early 1920. The follow ing table shows the percentage changes in these and other lines of trade com pared with a year ago. Net Sales Percentage Change _______________ Commodity Groceries............................... M en’s clothing.................... W om en’s dresses........... W om en’s coats and suits. . C otton-Jobbers................... Cotton-Com mission houses Silk good s............................. Shoes...................................... D rugs..................................... H ardware.............................. Machine t o o ls ...................... Stationery............................. Paper..................................... Diam onds............................. Jewelry.................................. W eighted Average. S Percentlge ch™ngeth Feb. 1925 to Mar. 1925 Mar. 1924 to Mar. 1925 + 4 .4 + 1 1 .3 —10.2 +10.0 + 5 5 .3 + 7 .1 + 2 0 .9 + 1 2 .7 + 4 4 .4 + 6.8 +20.2 + 3 0 .1 + 3 .6 + 1 9 .0 — 18.9 + 9.1 + 1 5 .5 Feb. 1925 to Mar. 1925 + 9 .7 — 0 .5 + 6 .4 + 2.8 + 6 0 .2 + 3 2 .4 — 6.1 — 0.1 — 4 .0 — 12.3 — 6 .4 + 1.2 + 1 2 .9 — 14.7 + Mar. 1924 Mar*°i925 ——-----^ ;7 ....... 8.2 —16.2 8.2* 1114; 4* 2.1 — 10.9 2 .5 —i9.9 ;;;;;; , ....... •+ 4 .3 QRdCERVES COTTON TOBBER5 M A C I1IN E TOOLS First Quarter 1925 Sales in Fifteen Principal Wholesale Lines in Percentages of the First Quarter of 1924. Chain Store Sales Continued rapid growth o f chain store business is indicated by M arch reports, which showed 16 per cent, more stores in operation than a year ago and an 18 per cent, increase in total sales. The increase both in number o f stores and total sales was particularly marked in the cases o f grocery and dry goods systems, which also showed substantial gains in sales per store. Ten cent stores reported sales keeping pace with store expansion, but in tobacco and shoe chains sales per store showed considerable decreases. In drug and candy chains, the number o f stores operated was about the same as last year, but sales o f drug stores were larger than a year ago, while sales o f candy chains were slightly smaller. rpke f o l l o w i n g table shows the percentage change from March 1924 in the number o f stores operated, in total sales, and in sales per store, o f reporting chain systems. } + 1 4 .0 + 2 .3 Percentage Change M arch 1924 to M arch 1925 ♦Stock at first of m onth— quantity not value. T yp e of Store A comparison o f the figures fo r the first quarter o f the year indicates that in most lines sales fell below a year ago. The principal exceptions to this were commis sion house sales o f cotton goods, which were unusually small last year, and sales of silk goods. Sales o f m en ’s clothing, diamonds, and drugs were equal to or larger than last year, but in other lines decreases occurred G rocery.................................................................... Ten C ent.................................................................. D ru g.......................................................................... T o b a cco .................................................................... S hoe.......................................................................... Number of Stores Total Sales Sales per Store + 1 8 .9 + 6 .7 — 0 .3 + 6 .0 + 2 0 .6 + 1 8 .3 + 1.1 + 2 7 .5 + 7 .9 + 4 .2 — 3 .2 + 7 .6 + 2 3 .9 — 0 .3 + 7 .2 + 1.2 + 4 .5 — 8 .6 — 10.7 + 4 .7 — 1 .4 + 1 6 .0 + 1 8 .2 + 1.8 M ONTHLY REVIEW, M A Y 1, 1925 D e p a r t m e n t S to r e B u s in e s s M arch department store sales in this district averaged 5 per cent, larger than in M arch 1924, but as sales last year were com paratively small, due partly to the late ness of Easter, this ban k’s index, which allows fo r sea sonal variation and normal growth, declined from 107 per cent, of the com puted trend, or normal, in February to 98 per cent, in March. In March, as in January and February, about half the department stores reported smaller sales than a year ago, but these decreases were more than offset by substantial increases in some o f the larger stores. A pparel stores also showed large increases, even exclud ing stores which have considerably increased their floor space. Department store stocks o f merchandise at the end of the month increased 5 per cent, over last year, the same increase as occurred in sales, and the ratio of sales to average stocks valued at selling prices was the same as a year ago, or 30 per cent. The average amount o f the individual sales transaction was $2.92, com pared with $2.72 in March 1924. D uring March, as shown by the follow ing table, the chief increase in business was in apparel lines which would be affected by the favorable weather this year and the earlier date o f Easter. Furniture and home furnishings, however, also showed moderate increases over a year ago. W om en’s and Misses’ ready-to-wear. . . M en’s and B oys’ w ear.............................. Luggage and other leather good s........... N et Sales Percentage Change March 1924 to M arch 1925 Stock on Hand Percentage Change March 31, 1924 to M arch 31, 1925 New Y o r k ..................................................... Buffalo........................................................... R ochester..................................................... Syracuse ..................................................... Newark......................................................... Bridgeport.................................................... Elsewhere..................................................... Northern New York State................... Central New York State ................... Southern New York S tate................... Hudson River Valley D istrict............. Capital District .................................... Westchester D istrict............................. + + + + + + — — — — — + — 5 .8 2 .5 6 .6 4 .4 7 .6 2 .7 1.6 6 .3 4 .6 2 .2 1 .6 4 .9 3.1 + 6 .4 — 5 .4 + 6 .9 — •0 .1 + 8 .1 + 2 .8 + 1 .2 All department stores................................ + 5 .3 + 4 .7 Apparel stores............................................. M ail order houses .................................... + 2 3 .3 + 1 2 .6 + 3 7 .1 Home furnishings....................................... W oolen goods.............................................. W om en’s accessories.................................. Toilet articles and d r u g s ......................... Silverware and jew elry.............................. M en’s furnishings....................................... Linens and handkerchiefs......................... Miscellaneous.............................................. Net Sales Percentage Change M arch 1924 to March 1925 Stock on Hand Percentage Change M arch 31, 1924 to M arch 31, 1925 + 2 1 .5 + 2 0 .7 + 1 8 .8 + 1 1 .6 + 9 .2 + 8 .3 + 6 .1 + 4 .6 + 4 .2 + 3 .6 + 3 .2 + 2 .6 + 0 .9 + 0 .8 — 0 .2 4- 3 .3 + 1 .2 + 3 .7 — 5 .2 — 6 .5 + 5 .0 + 4 .7 + 0 .1 — 0 .9 — 7 .8 — 0 .2 + 1 4 .5 + 0 .2 — 1.4 + 1 4 .7 — 0 .6 + 0 .8 A com parison o f first quarter 1925 sales with those o f 1924 in 35 m ajor departments o f the stores, shown in the diagram below, indicates substantial increases in sales o f w om en’s apparel and shoes, domestics (including sheets, towels, etc.), silks and velvets, linens, and m il linery. Other principal increases were in sales o f radio sets, and in furniture and other home furnishings. First Quarter 1925 Sales of Department Stores by Major Classifications in Percentages of the First Quarter of 1924.
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