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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 R e s e r v e D is t r ic t Federal Reserve Bank, 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 I N D U S T R IA L output increased in March and the distribution of commodities continued in large vol ume. The level of wholesale prices declined for the fourth consecutive month. P ro ductio n The Federal Reserve B oard's index o f production in basic industries increased in March to the highest level for more than a year. Larger output was shown fo r steel ingots, pig iron, anthracite, copper, lumber, and newsprint, and there were also increases in the activity of textile mills. The output of automobiles increased further and was larger than in any previous month, with the exception o f last October. B uilding contracts awarded also increased in March, as is usual at this season, and the total was near the high figure o f last summer. Particularly large increases in building activity as compared with a year ago occurred in the New York, Atlanta, and Dallas Federal Reserve Districts. Con tracts awarded continued larger during the first half of A p ril than in the same period of last year. Condi tion o f the winter wheat crop has im proved since the turn o f the year and on A p ril 1 was estimated by the May 1, 1926 Department o f A griculture to be 84 per cent o f normal, com pared with 68.7 per cent last year and an average of 79.2 per cent for the same date in the past ten years. T rade Wholesale trade showed a seasonal increase in March and the volume o f sales was larger than a year ago in all leading lines except dry goods and hardware. Sales o f department stores and mail order houses increased less than is usual in March. Compared with March a year ago sales o f department stores were 7 per cent and sales of mail order houses 9 per cent larger. Stocks o f princi pal lines o f merchandise carried by wholesale dealers, ex cept groceries and shoes, were larger at the end o f March than a month earlier, but fo r most lines they were smaller than a year ago. Stocks o f department stores showed slightly more than the usual increase in March and were about 3 per cent larger than last year. Freight car loadings during March continued at higher levels than in the corresponding period o f previous years. Ship ments o f miscellaneous commodities and merchandise in less-than-carload lots were especially large. Loadings o f coal, owing to the large production o f anthracite, were also large, while shipments o f coke decreased consider ably from the high levels of preceding months. PERCENT TER CENT ■% 152 WHOLE 5M E PRJCES 1922. 1 92 3 1924- 1 925 1926 Index of United States Bureau of Labor Statistics. (1913 = 100; base adopted by Bureau). Latest figure, March. Indexes of Factory Employment and Factory Payrolls in Manu facturing Industries. (1919 average = 100 Per Cent.). Latest figures, March. 2 M O N THLY REVIEW, M A Y 1, 1926 TER CENT: Index of Value of Contracts awarded in 7 Federal Reserve Dis tricts reported by the F. W . Dodge Corporation. (1919 = 100). Latest figure, March. P rices Wholesale prices, according to the Bureau o f Labor Statistics index, declined by more than 2 per cent in M arch to the lowest level since September 1924. The decline was general fo r nearly all groups o f com modities and the largest decreases were noted in grains, cotton, wool, silk, coke, and rubber. In the first two weeks o f A p ril prices o f basic commodities were steadier than in March. Prices of grains, flour, and potatoes increased, while prices o f cotton goods, wool, silk, bitum inous coal, p ig iron, and rubber declined. Reserve Bank Credit: Monthly averages of daily figures for 12 Federal Reserve Banks. Latest figures are averages of first 22 days in April. M o n e y M a rk et Money rates declined during A p ril to the lowest quo tations since last August. The movement o f principal rates over the past few years is shown in the accom pany ing chart. The changes since A p ril first are as fo llo w s : April 1, 1926 April 27, 1926 Time Money—90 day.................................................... Prime Commercial Paper.............................................. Bills—90 day.................................................................. Treasury Certificates: 5 months...................................................................... 3H 4 4 3H 3.19 3.55 2.99 3.19 4X B a n k C redit Commercial loans o f member banks in leading cities were relatively constant, between the middle o f March and the middle o f A pril, at a level about $200,000,000 higher than at the end o f January and approximately equal to the high point reached last autumn. Continued liquidation of loans to brokers and dealers was reflected in a further decline in the total of loans on securities, which on A p ril 14 were more than $500,000,000 below the high point reached at the end o f la^st year. A t the Reserve Banks an increase in the volume of member bank borrow ing during the last two weeks o f March was follow ed by a marked decline in the first three weeks o f A pril, which brought the total near the lowest levels of the year. H oldings of United States secur ities increased continuously during the month, while acceptances declined seasonally. Total bills and secur ities were in smaller volume at the end o f the period than at any other time during the year and only slightly larger than a year ago. Open market rates on commercial paper declined in A p ril from 41/4 -4 % per cent to 4-4% per cent and rates on acceptances and on security loans were also lower in A p ril than in March. On A p ril 23 the discount rate at the Federal Reserve Bank of New Y ork was reduced from 4 to 3 % per cent. The principal factors making fo r easier rates in the New Y ork market during the month may be listed as fo llo w s: 1. A gold impoTt of $10,000,000 on April 1, following net gold imports of $39,000,000 during March. 2. An excess of Treasury payments over receipts in making interest payments on April 15. 3. An increase in holdings of Government securities by the Reserve Banks, amounting to $59,000,000 during April. Most of these purchases were made in the New York market and the securities then distributed among the various Reserve Banks. 4. A decrease in bank loans to brokers and dealers amounting to 230 million dollars in the four weeks ended April 21, and bringing the total reduction since the middle of February to nearly 700 million dollars. The reduction during April was largely in loans for the account of New York City banks and reduced the reserve requirements of those banks by about $10,000,000. 5. Reduced borrowings at the Federal Reserve Bank of New York. . The reduction of the discount rate of the Federal Reserve Bank of New York from 4 to 3% per cent. 6 A ccom panying the general ease o f money and some liquidation o f loans o f out-of-town banks to brokers and dealers, there was a substantial flow o f funds from New Y ork to other centers during the month, with the excep tion o f the third week, when the flow was toward New FEDERAL RESERVE AGENT A T JNEW Y O R K MILL10/15 OF DOLLARS Call Loan Renewal Rates, Open Market Rates for 4-6 Months Commercial Paper and 90-Day Bankers Acceptances, and the Federal Reserve Bank Rediscount Rate by Weeks. (Latest figures, week of April 28) Federal Reserve Bank of New York Loans to New York City Member Banks. Latest figure, April 28. York. A fte r the middle of the month there was also an export movement o f gold to Canada amounting in the aggregate to 16^ m illion dollars, reversing the direc tion o f movement o f the early months o f the year. To ward the end of the month this out-of-town movement of funds was follow ed by slightly firmer money conditions and renewed borrow ing by member banks at the Federal Reserve Bank. P o s it io n of B anks The changes which have taken place since the first of the year leave the New Y ork City member banks in a position not far different from their position a year ago. The figures for principal loans and investments and principal forms of deposits are, at the two periods, as follows : CONDITION OF 59 NEW YORK CITY REPORTING MEMBER BANKS (In millions of dollars) April 22 April 21 Net 1925 1926 Change Loans on stocks and bonds.......................................... All other loans (largely commercial)........................... Investments................................................................... Total loans and investments........................................ Net demand deposits.................................................... Time deposits................................................................ Government deposits.................................................... Total deposits................................................................ 1,953 2,303 1,806 6,062 5,107 825 36 5,968 1,933 2,396 1,788 6,117 5,011 828 43 5,882 — 20 +93 — 18 +55 —96 + 3 + 7 —86 The reporting member banks outside New Y ork show an increase o f about 750 million dollars over last year in their total loans and investments, o f which nearly 500 m illion dollars is in loans on stocks and bonds. Deposits show an increase of some 650 millions, most o f which is in time deposits. T r an sfers to Cuba On Saturday, A p ril 10, and fo r a few days following, money conditions were tem porarily affected by a transfer o f funds to Cuba to meet a sudden currency demand on Cuban branches o f Am erican and Canadian banks. The New Y ork offices, or correspondents o f these banks, on A p ril 10 and 12 transferred 39 m illion dollars to Cuba. The transactions took the form o f transfers o f funds through the Federal Reserve wire transfer system to the Federal Reserve Bank o f Atlanta, which supple mented its customary supply o f currency in Cuba by shipping additional amounts, which were paid out to the Cuban banks immediately on arrival, with the result that the demand was satisfied and ceased at once. This transfer o f funds resulted at once in a net loss to the reserves o f New Y ork City banks and there was a further loss at the same time through movements of funds to other parts o f the country. The banks thus be gan the day on A p ril 12 deficient in their reserves and before the close o f the day call money had risen to 5^2 per cent. D uring the course o f the next few days, how ever, as the high rates drew money to New Y ork, and Reserve Bank credit was used in increasing volume, money became easy again. C o m m e r c ia l P a per and B il l M a r k e t s A t the end o f March the amount of paper outstanding through 26 commercial paper dealers was $668,000,000, an increase o f nearly 2 per cent from February. Out standings, however, were 18 per cent smaller than in March 1925. The demand fo r paper, especially on the part o f interior buyers, increased considerably late in A p ril and sales were limited only by the small supplies of new paper which dealers were able to offer. A good demand fo r bills resulted from easy money conditions, but the amount of bills offered to the market was small because o f the usual seasonal decline. A s a result, dealers’ portfolios were substantially reduced, and bill rates were easier. A fte r the reduction o f the Federal Reserve discount rate, bill rates were reduced further to levels about % of one per cent under the rates prevailing early in the month. M ONTHLY REVIEW, M A Y 1, 1926 4 £33 S e c u r ity M a r k e ts Follow ing the sharp decline of stocks in March, prices moved irregularly in A pril. Averages o f industrial stocks fluctuated about a level several points above March extreme low records, and railroad averages were com paratively steady. In marked contrast to the substantial recession in stock prices from the high levels reached earlier this year, averages of high grade corporation bonds advanced in A p ril to new high levels since early in 1917 under the impetus o f easy money conditions and strong invest ment demand. United States Government securities were also strong and all active issues except the First 3 % ’s reached new high levels for the year. In the fo r eign list, French and Belgian bonds recovered the pre vious m onth’s loss and other issues were firm. The accom panying diagram of stock and bond prices during the past eight years shows how firmly bond prices have been maintained through the recent decline in stocks. PRICE 1920 1921 1922 1923 1924 1925 1926 New Capital Issues by Dom estic Corporations, First Quarter o f Each Year, 1920 to 1926 (M illions o f D ollars). New security offerings continued in heavy volume in A p ril and were somewhat larger than the totals for the previous month or fo r A p ril 1925. Railw ay financing, com prising mainly issues o f equipment trust certificates, was heavier than at any time since last July. P ublic utility issues continued numerous. Other classes o f domestic issues were smaller than in March while foreign offerings were somewhat larger. The principal foreign security offerings in this market were the m ajor part o f $30,000,000 R epublic o f U ruguay bonds, and a $20,000,000 issue o f Argentine Government bonds, both issues m aturing in 34 years and priced to yield 6.25 and 6.13 per cent respectively. F o r e ig n T r a d e Prices of 232 Stocks (Standard Statistics Corporation index) and of 40 Domestic Bonds (New York Times Average) by Months 1918 to 1926 (April 1926 estimated.) N e w F i n a n c in g New security offerings by domestic corporations ex clusive o f refunding issues during the first quarter of 1926 were substantially larger than in the corresponding period o f any recent year. A s the accom panying dia gram shows, the increase over the first quarter o f 1925 was mainly in issues o f preferred and common stocks, while bond flotations were o f practically the same vol ume as last year. Common stock issues were double those o f the first three months o f last year and were the largest since 1920, while preferred stock issues exceeded those o f the first quarter in any o f the last six years. A n unfavorable balance o f trade occurred in March fo r the third successive month, and the amount o f the import balance, $70,000,000, was the largest ever re ported. E xports showed about the usual seasonal in crease over February, but the valuation o f $375,000,000 fo r March was $79,000,000 less than that o f March 1925. Imports also showed a seasonal increase over the high level o f February, and at $445,000,000 were $60,000,000 larger than a year previous, and the largest since 1920, when prices were very high. Small shipments abroad o f raw cotton and grain con tinued to be the chief factor in the small volume o f our export trade com pared with that o f a year ago. The value of cotton and grain exported in M arch 1926 was $65,000,000 less than in M arch 1925, and fo r the first quarter o f this year the exports o f these commodities were $192,000,000 less than in the corresponding period last year, whereas the decrease in total exports fo r the three months was only $146,000,000. E xports o f finished manufactures have increased steadily since 1921, espe cially shipments o f automobiles. H eavy receipts of crude rubber at prices which, despite the severe decline o f recent months, are still above those o f a year ago, largely accounted fo r the gain over last year in total imports. In actual volume, rubber imports were 26 per cent larger than those o f M arch 1925, and exceeded those o f any previous month on record. 5 FEDERAL RESERVE AGENT AT NEW Y O R K G o ld M o v e m e n t Complete figures on gold imports into and exports from the United States indicate net imports o f $39,200,000 fo r the month o f March, the largest monthly import balance since M ay 1924. The net inflow during the first quarter of 1926 totaled $77,000,000 com pared with a net export o f $133,000,000 in the first quarter of 1925. Actual imports in March were $43,400,000 and included consignments from Canada amounting to $39,300,000, and $2,500,000 from Chile. E xports were $4,200,000, chiefly to H ong Kong, British Malaya, and Mexico. On A p ril 1 an additional $10,000,000 o f gold was re ceived from Canada, but subsequently, as Canadian exchange advanced to a premium, this im port was offset by exports to Canada, totaling $16,250,000 up to A p ril 30. Receipts and shipments of gold through the P ort o f New Y ork were small, imports amounting to only $480,000 and exports to $800,000. E xports included ship ments to Germany, Mexico, and Guatemala. The accom panying diagram shows the actual amount o f gold im ports and exports in each month since the beginning of 1914. Continued weakness in Canadian exchange early in A p ril was accom panied by im ports from Canada o f $10,000,000 o f gold, but by the middle o f the month the rate advanced to a premium o f 5 /3 2 per cent, and sub sequent gold exports to the Dominion o f $16,250,000 were reported. Japanese yen resumed its advance, rising 1 cents to 47.45 cents on A p ril 27, the highest quotation since December 1923. This advance in yen was accompanied by an equally sharp decline in Chinese rates, and was reported to represent purchases o f yen against sales of the silver Chinese currencies. W o r l d P r ic e s The decline in com m odity prices in the United States since the middle o f last year has been simultaneous with a similar movement in most other countries with stabilized currencies. The detailed figures fo r a number o f these countries are shown in the follow ing table. They indicate that com modity prices have declined from 6 to 18 per cent in different countries in the course o f the year. In most cases this decline has been accompanied by a reduction in the discount rate o f the central bank o f issue. The movement in this group o f countries has been quite different from the movement in those countries where currency stability has not yet been achieved, as is in dicated by the figures in; the lower half o f the table. In these countries the general tendency o f prices has been upw ard and the movement o f interest rates has been upward also. Price Index March 1925 1914 1915 1916 1917 1916 1919 1920 1921 1922. J923 1924 1925 1926 Gold E x p orts and Im ports o f the U nited S tates by M on th s, 1 9 1 4 to 1 9 2 6 (A p ril 1 9 2 6 e s tim a te d ). F o r e ig n E x c h a n g e E xcept fo r a tem porary decline around the middle o f the month, sterling exchange was firm during A pril, demand rates advancing to $4.86 1 /32 on the 29th, a new high for the year. French francs touched a new low point of 3.27 cents on A p ril 28, and Belgian francs also remained weak, declining to 3.49 cents, the lowest since March 1924. Lire were steady at slightly more than 4 cents, and guilders continued to advance gradu ally to a new high point for the year. In the Scandinavian currencies, Swedish kronor re acted to slightly below par, and Danish kroner declined fractionally from March high levels, while Norwegian kroner advanced to 21.96 cents, the highest point since September. Follow ing declines in March, the Argentine exchange recovered to above the 40 cent level and B ra zilian milreis also became firmer late in A pril. Countries with Stabilized Curren cies United States........................... England. ................................. Netherlands.............................. Sweden...................................... Germany................................... Switzerland............................... Austria....................................... Hungary.................................... Countries whose Currencies are TJnstabilized Belgium..................................... France....................................... Poland....................................... Discount Hate March Per cent Change 1926 April 1925 161 174 155 168 134 170 143 153* 152 152 146 149 118 151 119 125* — 6 — 13 — 6 — 11 — 12 — 11 — 17 — 18 3 y2 5 4 5M 9 4 13 11 546 514 659 122 583 632 693 144 + 7 +23 + 5 +18 6 10 5X 7 April 1926 3X 5 3H t'A 7 3K 7H 7 7H 6 7 12 * = February E m p lo y m e n t a n d W a g e s F actory employment in March showed little change from the February level. In New Y ork State there was a slight increase but the gain from the low point o f Jan uary has been less than one per cent. F o r the country as a whole a small reduction occurred during the month. In A p ril there appears to have been the usual seasonal reduction in factory employment but the expansion of outdoor activities, though somewhat delayed, served to maintain the general level o f employment. Railroad equipment plants in New Y ork State in creased their working forces in M arch to the highest level in more than a year in response to a larger demand fo r 6 M ON THLY REVIEW, M A Y 1, 1926 cars and locomotives during recent months, and em ploym ent in iron and steel mills exceeded even the high est level reached in the spring o f 1923. A further seasonal increase carried employment in the automobile factories close to the highest level reached last year, and renewed activity was reported in building materials. F actory workers ’ per capita earnings were close to those o f January, the highest ever reported. The number o f workers called for at state employment offices in March was 83 per cent o f the number o f appli cants fo r work as com pared with 78 per cent a year previous, but as a result o f unseasonably cool weather there was no further increase in the demand fo r help in the first half o f A p ril such as occurred last year. F or the country as a whole the demand fo r agricul tural labor on A p ril 1 was slightly larger and the supply slightly smaller than a year previous, and the wages offered were higher than on the corresponding date of any previous year since 1920. Because o f the com peti tion with the high wages offered by industrial concerns, the farm wages offered in New Y ork State were reported to be over 40 per cent higher than the average fo r the entire country. B u ild in g a whole show more increases than decreases and the ma jo rity o f them show a volume o f business well above normal. The follow ing table gives this ban k ’s indexes in per centages o f the com puted trend, with allowance fo r sea sonal variations and, where necessary, fo r price changes. (Computed trend of past years=100 per cent) I n d e x e s o f B u s in e s s A c t i v i t y A continued high level o f general business in March is indicated by a m ajority o f the indexes com puted b y this bank. Car loadings of merchandise and miscellaneous freight showed slightly less than the usual seasonal in crease, and retail trade appears to have been restricted by unfavorable weather conditions, but the indexes as March Jan. Feb. March 105 94 103 113 104 106 105 100 82 130 47 97 106 100 85 126 37 96 103 102 87v 133p 51 97 96 107 112 111 97 97 97 97 122 99 110 103 98 100 96 121 109 113 103 97 95 89 110 116 109 99 98 110 121 114 128 113 124 113 140 Prim ary Distribution Car loadings, merchandise and misc...... Car loadings, other................................... Grain exports............................................ Panama Canal traffic............................... Distribution to Consumer Department store sales, Second Dist.. . . Chain store sales....................................... Mail order sales........................................ Life insurance paid for............................. Real estate transfers................................. Magazine advertising............................... Newspaper advertising............................. General Business Activity Bank debits, outside of New York City. Bank debits, New York City.................. Bank debits, 2nd District, exclusive of New York City..................................... Velocity of bank deposits, outside of New York City r.................................. Velocity of bank deposits, New York Shares sold on New York Stock Ex- The volume of new building projects undertaken con tinued very large in March. The F . W . Dodge Corpora tion reports nearly $600,000,000 of contracts awarded in 37 states, an increase o f 53 per cent over the February total and o f 22 per cent over that o f M arch 1925. In the New Y ork and Northern New Jersey district contracts awarded in March were 88 per cent larger than a year ago but did not equal the unusual volume o f March 1924. Permits issued during the month in 440 cities also showed a large increase over February, but the gain over March o f last year was only 2 per cent, according to S. W . Straus Company reports. Many of the larger in creases over last year were reported from Florida and other southern states. Residential building continued to account fo r a consid erable part o f the increase in contracts in this district. In other districts, however, the principal gains were in commercial building and public works and utilities, while reductions com pared with a year ago were reported in contracts fo r residential, industrial, and educational building. 1926 1925 10G 110 106 106 98r 106r 104r 105r 108r 120r 118r 128r 295 101 186 Postal receipts........................................... Electric power........................................... Employment, N. Y. State factories........ Business failures....................................... New corporations formed in N. Y. State Building permits....................................... 218 95 105 99 105 112 143 221 97 109 101 97 128 149 202 100 110 101 96 124 144 General price level.................................... 186 188 187 * = Seasonal variations not allowed for p=Preliminary ioi 111 115 147 Revised C o m m o d i t y P r ic e s Wholesale prices in March averaged 2.3 per cent lower than in February, according to the index o f the D epart ment o f Labor. This decline was the largest since A p ril of last year, and carried wholesale prices 6 per cent below the level o f a year ago, canceling more than half the rise from the lowest point o f 1924. In A p ril a slightly lower level o f prices than in March is indicated by this bank’s index o f 20 basic commodities. Prices o f textile raw materials continued weak in A pril. Raw silk declined steadily and at $5.65 on A p ril 28 was $1.25 lower than at the beginning o f the year. Spot cotton quotations at New Y ork declined to 18.85 cents, compared with over 21 cents early in January, and wool was slightly lower than in March. Crude rubber prices also showed a further moderate decline, and in the latter part o f A p r il were little more than half the prices prevailing at the beginning o f the year. Prices o f hogs, grain, and sugar, however, were some what higher than in March. FEDERAL RESERVE AGENT A T NEW Y O R K M ILLIONSOFPOUNDS Z5Or P r o d u c tio n Production was maintained at a high level in most leading industries in March. Steel ingot production was larger than in any previous month, and p ig iron output increased substantially, follow ing a decline in coke prices. Anthracite coal production was expanded to an unusually high level, and bituminous output was only m oderately curtailed. Autom obile production in March showed a seasonal increase over February, and the total output o f 428,000 passenger cars and trucks was the largest in any month except October o f last year. Lum ber production con tinued at a high level in M arch and cement production showed more than the usual increase over February. 200 WOOL 150 100 m illion s o r POWPS lOOOp 900 600 700 600 500 400 CO T T ON muons ofpounds In A p ril some curtailment o f productive activity has been reported, especially in steel and textiles. Reports from the D etroit automobile center show a moderate re duction in the number o f workers employed. Silk goods production was further reduced, and plans fo r some curtailment o f cotton goods production were reported, follow ing unsatisfactory sales in recent months. The accom panying diagram indicates the course of consumption o f the principal textile raw materials dur ing the last eight years, and shows the increase in the use of silk and rayon relative to cotton and wool. March indexes o f production, in which allowance has been made fo r seasonal variations and year-to-year growth, are shown in the follow ing table, with com par able figures for recent months and a year ago. (Computed trend of past years=100 per cent) 1926 1925 Mar. Jan. Feb. Mar. 119r 107 83 107 111 96 117 110 96 93 129 112 82 137 112r 110 113 103 129 105 114 107 93 86 123 104 64 132 108r 112 114 108r 100 106 113 104 102 84 108 110 69 121 114r 112 lOlp 106 103 98 Cattle slaughtered.................................... Calves slaughtered.................................... Sheep slaughtered..................................... Hogs slaughtered...................................... Sugar meltings, U. S. ports..................... Wheat flour............................................... Cigars........................................................ Cigarettes.................................................. Tobacco, manufactured........................... Gasoline.............. ...................................... Tires........................................................... Newsprint.................................................. Paper, total............................................... Boots and shoes........................................ Anthracite coal......................................... Automobile, all......................................... Automobile, passenger............................. Automobile, truck.................................... 110 116 107 88 115 89 96 80 98 129 117 113 102 95 85 119 121 112 104 116 103 82 139 90 86 80 111 137 132 119 94 84 2** 120 120 121 106 116 114 76 116 90 94 74 109 136 129 127 100 91 30** 132 133 128 116 109 127 93 *=Seasonal variation not allowed for **=Strike Producers' Goods Pig iron r ................................................... 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.............................................. Silk consumption*.................................... io3 85p 116p 109p 69 111 Consumers' Goods * p =Preliminary Consumption of Textile Raw Materials in the United Quartierly Averages for 1918 to 1925, and First Quarter of 1926. C h a in S t o r e S a le s Chain store business during March showed about the same increase over the previous year as in February, but as the increase in the number o f stores operated was not so large, sales per store com pared more favorably with those of a year ago than in the previous months of this year. Gains in volume o f business were reported in all lines, but as in the past three months were particularly large in variety, drug, and grocery stores. More substantial increases than in any month since last October occurred in total sales o f shoe and candy chains, and sales per store were closer to those o f a year previous than in any recent month. Increases in total sales o f both tobacco and 5 and 10 cent stores were the largest fo r any month so far this year, and there was also a considerable im provement in their sales per store. Percentage Change March 1926 from March 1925 94 110 83 111 i30 100 92p 104p 132 137 110 r=Revise States, Variety........... ....................... ......................... Drug.................................................................... Grocery.............................................................. Shoe.................................................................... Ten Cent............................................................ Tobacco...................................................... . Candy................................................................. Number of Stores Total Sales Sales per Store +17.1 +20.1 +18.3 +15.6 + 5.8 + 13 .4 +22.7 + 27 .4 + 25 .4 + 19 .6 + 13 .0 + 12 .4 + 8.4 + 8.4 + 8.8 + 4.4 + 1.1 — 2.2 + 6.3 — 4.4 — 11.7 +16.8 +17.6 + 0.6 W h o le s a le T r a d e A lthough 9 out o f 15 lines reported larger March sales than last year, wholesale trade in this district, mea sured by a weighted average of reports from nearly 200 concerns, showed a decrease of about 3 per cent compared with last March, despite the extra selling day this year. This decline was due chiefly to substantially smaller sales of w om en’s clothing and textiles. Silk sales dropped below the level of a year previous fo r the first time since September 1924 and sales of cotton jo b bers showed the largest decrease in over a year. The largest increases occurred in sales o f diamonds and machine tools. Stationery continued its steady gain and unusually large increases were reported by drug and grocery firms. Shoe stocks dropped below the level of a year previous fo r the first time since last March, and stocks o f gro ceries, cotton goods and jew elry and diamonds remained smaller. Silk stocks, however, continued to be much heavier than a year ago, m en ’s clothing showed a sub stantial increase, and hardware remained practically unchanged. Collections averaged about 3 per cent larger than last year, all lines with the exception of cotton jobbing and coats and suits reporting increases over last March. A bout the same average increase was reported in ac counts receivable, although decreases were reported in fou r lines. Commodity Men’s clothing............. Women’s dresses.......... Women’s coats and suits Cotton goods-Jobbers.. Cotton goods-Commision............................ Silk goods..................... Shoes............................ Drugs............................ Hardware..................... Machine tools.............. Stationery.................... Paper............................ Diamonds..................... Weighted Average . . + 17.7 + 4.9 + 4.1 +43.9 + 1.8 Stock end of month — 3.5 — 4.8 — 11.7 Percentage Change March 1926 from March 1925 Net Sales + 8.8 + 0.6 — 33.4 — 19.7 — 17.8 Stock end of month Collec tions Acc’ts Receiv able — 1.4 +14.2 + 9.7 + 8.2 + 10.0 + 15.3 — 10.1 — 24 '.2 — 8.7 — 20.7 — 7.3 + 2.6 + 9.1 + 5.3 — 0.3 + 3.2 — 1.7 + 0.4 +22.3 + ‘ 4.5 +11.1 + 2.6 + 3.4 +18.0 + 6.7 *— 0.3 +63.4 — 8.7 +18.1 +25.1 + i.5 + 22.0 + 1.1 +16.2 + 21.8 + 2.9 + 4.4 — 10.6 — 4.7 *+ 48 .8 + 7.3 — 4.5 + 10.3 + ’ i*2 — 7.5 + 19.7 +10.8 + 4.1 +21.6 | —9.2 + 2.3 +18.9 — 2.8 j *Stock at first of month— quantity not value. D e p a r tm e n t S to re T r a d e Sales of department stores in this district during March were 7 per cent larger than last year, due partly to the fact that Easter came a week earlier this year and partly to an additional selling day this March. A n index of department store sales com puted by this bank, which makes allowance fo r these factors and fo r seasonal and price changes, was 95 per cent o f normal in March com pared with 100 in February and 97 in March a year Percentage Change March 1926 from March 1925 Locality Net Sales Stock on Hand end of month Collec tions* Accounts Receiv able* + + + + + + — 4.3 6.8 3.4 2.1 8.8 8.3 6.0 + 9.0 + 8 3 + 22.1 — 13.2 — 0.1 + 19 .4 + 7.4 + 22.0 — 5.9 — 1.3 + 3.3 Northern New York State....... Central New York State.......... Southern New York State........ Hudson River Valley vDistrict.. Capital District........................ Westchester District................. + 7.4 — 6.3 + 12.6 — 4.4 + 9.9 +23.9 + 6.7 +11.7 + 4.8 + 4.8 +11.7 + 0.7 +14.8 + 7.1 All department stores....................... + 6.9 + 4.3 + 6.7 +11.7 Apparel stores............................... Mail order houses......................... + 6.7 + 9.9 +12.1 + 25.6 +38.9 Buffalo........................................... Rochester....................................... Newark.......................................... Bridgeport..................................... Percentage Change Mar. 1926 from Feb. 1926 Net Sales ago. Unseasonably cold weather in March, and in A p ril as well, has retarded buying of spring merchandise. Changes in the different localities com pared with last year varied widely, ranging from an increase o f 24 per cent reported in B ridgeport fo r the second consecutive month to a decrease o f 6 per cent in Buffalo. Sales o f apparel stores were also 7 per cent larger, and mail order houses reported a gain o f 10 per cent. Stocks o f merchandise in department stores showed a 4 per cent increase over last year. In apparel stores the increase in stock was 12 per cent, almost double the increase in sales. A substantial increase over last year was again indi cated in charge account collections, but accounts receiv able at the end of the month also continued to be much larger. Outstanding instalment accounts reported by department stores remained smaller than a year ago in New Y ork and Buffalo, but were larger in most other localities. The average fo r all reports received was a reduction o f 3 per cent. ♦Exclusive of instalment accounts. The follow ing table shows sales and stocks by depart ments compared with March o f 1925. Net Sales Stock on Hand Percentage Change Percentage Change March 1926 March 31, 1926 from from March 1925 March 31, 1925 Toys and sporting goods........................ Books and stationery.............................. Linens and handkerchiefs....................... Furniture.................................................. Toilet articles an i drugs......................... Men’s furnishinrs.................................... Shoes........................................................ Luggage and other leather goods.......... Cotton goods ......................................... Men’s and Boys’ wear............................ Silverware and jewelry........................... Hosiery..................................................... Women’s ready-to-wear accessories. . .. Home furnishings.................................... Silks and velvets..................................... Musical instruments and radio.............. Women’s and Misses’ ready-to-wear . . . Woolen goods............. ............................. Miscellaneous........................................... +31.3 +25.5 +21.8 +20.4 +17.3 +15.3 +13.1 +13.1 +10.1 + 9.4 + 9.1 + 8.9 + 8.8 + 7.5 .+ 1.5 + 0.2 — 2.6 —30.1 — 0.3 +13.0 +12.1 — 0 4 + 7.7 + 4.4 0 + 6.2 +15.0 — 2.1 + 6.6 + 9.4 + 9.5 — 7.0 + 2.2 — 2.1 + 4.3 — 4.1 — 18.5 — 8.9
@FedFRASER