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MONTHLY REVIEW o f C r e d it a n d B u s in e s s C o n d it io n s S e c o n d Federal Reserve Agent F e d e r a l R e s e r v e November 1 , 1924 Federal Reserve Bank, New York Business Conditions in the United States R O D U C TIO N o f basic commodities, factory em ployment, and distribution o f merchandise in creased in September. D uring September and early in October there was a considerable increase in the volume of borrow ing fo r commercial purposes. in September and exports o f wheat and cotton were larger than fo r the same month o f any recent year. P P ro ductio n The Federal Eeserve B oa rd ’s index o f production in basic industries, adjusted to allow fo r seasonal varia tions, rose 9 per cent, in September, the first advance since last January. Increased activity was reported in many lines of industry including textiles, iron and steel, and coal. Factory employment increased 2 per cent, during September, reflecting larger working forces in nearly all reporting industries. A verage weekly earn ings o f industrial workers increased slightly, owing to a decrease in the extent of part-time employment. B uild ing contracts awarded showed a small seasonal decline in September, but were considerably larger than a year ago. Crop conditions, as reported by the Department of Agriculture, showed a further slight improvement dur ing September, and the estimates of production fo r spring wheat, oats, barley, and white potatoes on October 1 were larger than the month before. Estimates o f the yields o f corn, tobacco, and cotton, however, were reduced. Marketing of wheat was exceptionally heavy PERCENT. Index of 22 Basic Commodities corrected for seasonal variation (1919 = 100 Per cent. Latest figure September) D is t r ic t T rade Distribution o f commodities, as reflected in railroad shipments, increased during September and was greater than last year, owing to larger loadings o f miscellaneous merchandise, grain, and coal. Wholesale trade was 11 per cent, larger than in August, as a result o f increased business in almost all reporting lines. Sales o f groceries and drugs were larger than a year ago, while sales o f meat and shoes were smaller. Retail trade showed more than the usual seasonal increase in September, and sales o f department stores and mail order houses were considerably larger than last year. Merchandise stocks at department stores increased more than usual during September, but con tinued to be slightly smaller than a year ago. P r ices Wholesale prices o f farm products, clothing, fuel, and metals declined somewhat in September, while prices of food products, building materials, and chemicals ad vanced. The general level o f prices, as measured by the Bureau o f Labor Statistics index, was slightly lower in September than in August. D uring the first half o f October quotations on wheat, flour, cattle, hogs, wool, and rubber increased, while prices o f cotton, lumber, and gasoline declined. PER CENT. Index of U. S. Bureau of Labor Statistics (1913 = 100 Per cent, base adopted by Bureau. Latest figure, September) MONTHLY REVIEW, NOVEMBER 1,1924 BILLIONSOFDOLLARS Member Bank Credit— Weekly Figures for Member Banks in 101 Leading Cities (Latest figures October 15) B a n k C redit D uring the five weeks ended October 15 loans and investments o f reporting member banks in leading cities increased by more than $600,000,000. Credit demand fo r financing the marketing of crops and the fall activity of trade was reflected in increased commercial loans throughout the country and the total volume o f these loans rose to a level considerably above the peak of October 1923. Member bank investments in securities continued to increase and loans on stocks and bonds also advanced. A further growth of demand deposits carried their total to the highest figure on record. A t the Federal Reserve Banks, discounts changed but little in September and declined in the first three weeks of October, while holdings of acceptances increased con siderably and there was also some increase in United States securities. A s a consequence, total earning assets were larger than at any time since early in the year. Larger currency requirements partly seasonal in char acter were reflected between August 1 and October 1 in an increase of $140,000,000 in the total volume o f money in circulation. Money rates in the New Y ork market remained rela tively constant in the latter part of September and the early part of October. On October 15 the discount rate o f the Federal Reserve Bank of Minneapolis was reduced from 4 y 2 to 4 per cent. B a n k in g C o n d it io n s in t h e S e c o n d D i s t r i c t A further sharp rise in the loans and investments, and the total deposits of reporting member banks in the principal cities o f this district in the latter part o f Sep tember was in keeping with the banking tendencies else where throughout the country, and brought bank credit in this district to a new high level, approximately $850,000,000 above the level on June 4. D uring the first two weeks o f October, however, loans and investments and total deposits in this district declined slightly, while fo r the rest o f the country they continued to increase. The pause in the expansion o f credit in this district was due chiefly to a moderate decline in loans on stocks and bonds by New Y ork City banks and accompanied some loss o f funds to the interior, and adjustments in the money market incident to Government operations on October 15. Commercial loans showed a further increase to a point equal to the high level of last fall, and security investments reached points higher than ever before. The follow ing diagrams compare by weeks the recent course o f loans and deposits o f reporting banks in the Second District and in all districts except the Second. BILLIONS BILLIONS OF DOLLARS OFDOLLARS IE ALL REPORTING-1&ANKS EXCEPT 2.ND Dt5Jm ic r ALLREW 3KTING & ANKS SECON D DISTRH : t ♦ TOTAL LOAINS 6 INVESTMEN J / 7 ^ / V i rOTAL DEPOSITS JANFEBM ARAPR'N AYJU NJU LAU GSEPOCTN O VD EC 192/4 Toial Loans and Investments and Total Deposits of 636 Report ing Member Banks in Princi pal Cities Outside the Sec ond District. (Latest figures, October 15) TOTAL LOANS & INVEST! y A V 1 TOTAL DEPOSITS JANFEBM ARAPRM AVJW t JU LAU GSEPOCTN O VD EC 19 24Total Loans and Investments and Total Deposits of 108 Report ing Member Banks in the Second District. (Latest figures, October 15) A t the Federal Reserve Bank o f New Y ork member banks increased their borrowings m oderately during the first two weeks o f October and there was a temporary increase in the holdings o f bills and Government securi ties, with the result that on October 15 the total earning assets stood at the highest level since the early part o f 1923. F ollow ing the 15th, however, there was a con siderable return flow o f funds from the interior, and total earning assets o f the Reserve Bank declined by ap proxim ately $100,000,000 to levels not fa r from those prevailing in September. 3 FEDERAL RESERVE AGENT AT NEW YORK M o n e y M a rk e ts S e c u r it y M a r k e t s Further expansion in business activity and in bor rowing for commercial and agricultural purposes, ac companied by the movement of funds to the interior, led to slightly firmer money conditions during the first part of October. A fter October 15 a return flow of funds to this district caused a recurrence o f easy con ditions, but rates were little affected except in the Stock Exchange money market. In the bill market, the firmer money led to increased offerings to dealers, with the result that dealers’ port folios increased sharply to approxim ately the highest levels of the year, and there was a substantial increase also in their borrowings at the Reserve Bank. In con sequence, open market rates on 90-day bills were ad vanced slightly to 2 % per cent, on purchases and 2*4 per cent, on sales. Follow ing these rate advances port folios showed a decline. In the commercial paper market, on the other hand, a more active demand for paper from banks in New Y ork City and other centers contributed to a slight de cline in rates to d-S1/^ per cent., the level which had prevailed in August and with that exception the lowest since 1916. Supplies o f paper were somewhat smaller than in September, when the outstanding paper of re porting dealers showed a further increase o f $3,000,000 to $914,000,000, the highest since December 1920. Stock Exchange time money, after declining in the latter part of September, was also slightly firmer in the early part of October. Call money ruled at 2 % per cent., compared with 2 per cent, in September, until October 17, when the rate again declined to the 2 per cent, level. Later in the month there was again an advance in call money rates. W hile money rates in this market have remained rela tively low, those in London have advanced in the past month, with the result that the spread in rates between the two markets has become wider, as indicated in the accom panying diagram. The offering o f $110,000,000 7 per cent. 25 year bonds as the Am erican portion o f the German external loan provided fo r in the plan o f the First Committee o f Experts to the Reparation Commission was the out standing event in the security markets in October. The bonds, which were sold at a price to yield nearly 7 % per cent., are part o f a loan aggregating approximately $190,400,000, offered simultaneously in the United States, Great Britain, France, Italy, Switzerland, H ol land, Belgium, Sweden, and Germany. They were largely oversubscribed almost immediately, and both here and in London were immediately quoted on the exchanges at a premium o f several points. Besides the German loan, offerings o f foreign securi ties late in September and in October totaled approxi mately $265,000,000, including two large loans to the Swedish and Mexican governments, and two French rail way issues. The total o f foreign issues sold here since the first o f the year is now over a billion dollars. A n indication of the growth o f the market in this country fo r foreign securities appears in the follow ing diagram, which shows the number o f foreign government, state, and municipal issues traded in on the New Y ork Stock Exchange during each year since 1904. These figures are exclusive o f Canadian provincial and municipal se curities, and also o f foreign corporation issues which alone would increase the total fo r 1924 about one-third. 95 Number of Foreign Government, State, and Municipal Issues Traded in on the New York Stock Exchange Each Year, Canadian Provincial and Municipal Issues Excluded. (Latest figures, through October 20, 1924) 1922 1923 1924 1922 1923 Money Rates— New Y©rk and London 1924- The prices o f outstanding corporation bonds generally held steady in October and bond averages were little changed at levels slightly below the August high point fo r the year. United States Government securities be came firmer in the latter part o f the month, and the long-term Treasury 4 % s reached a new high price at 107. In the stock market a sharp decline in prices early in the month carried railroad and industrial averages down about 4 to 5 points to the lowest level since July. Prices subsequently recovered part o f these losses, and on October 24 both railway and industrial averages were approxim ately 3 points below the A ugust high levels. MONTHLY REVIEW, NOVEMBER 1, 1924 4 F o r e ig n E x c h a n g e Im proved sentiment resulting from flotation o f the German loan and other foreign issues in this market, together with some tendency for funds to flow to London due to higher rates there, were among the influences offsetting seasonal pressure from cotton and grain bills, and sterling in October advanced about 6 cents to $4.50% , the highest since August. Dutch guilders reached their highest point since August 1923, and Swiss francs were higher than at any time since May 1922. Other changes included a decline in Danish exchange, and a tem porary reaction in the Norwegian rate, follow ing the suspension o f a large Norwegian bank. German, Austrian, Belgian, and Italian quotations were com paratively steady, but French exchange declined slightly. Canadian dollars continued to fluctuate about par, and Brazilian and A rgentine rates were firmer. A lthough Japanese foreign trade during the first twenty days in September continued to show an excess o f exports, the yen at 38.13 cents on October 10 reached a point lower than ever before. Chinese exchanges, on the other hand, advanced, and Indian rupees were the highest since 1920, accom panying further rise in silver to 72 cents an ounce, the highest since July 1922. G o ld M o v e m e n t Im ports of gold in September amounting to $6,600,000 were the smallest since February 1920. O f these im ports, approxim ately $2,500,000 was from Canada, and $1,500,000 from Argentina, while imports from Great Britain, which were as high as $23,000,000 in January, fell to only $16,567. A s exports increased to $4,600,000, chiefly to British India and H ong Kong, the net import movement was only $2,000,000. In the first 25 days o f October an increase in the incom ing movement was indicated by imports o f $12,750,000 at the P ort o f New Y ork alone. E xports in the same period at the P ort o f New Y ork totaled $2,494,000. The follow ing table compares net imports by quarters during 1924, and indicates the changes in the gold move ment, by countries, since the first o f the year. The THOUSANDS O F BALES (000 Omitted) 1924 Country First Quarter $48,521 1,937 1,232 6,150 28,582 Cbina and Hong TCong.............. ‘ *‘ 667 16,898 799 4,486 10,787 ' *4,476 8,779 363 3,972 5,409 Net Imports............................ $112,966 $109,421 $20,401 2 890 ........ 2 3,691* 139 6,418 288 7,714 4,073 $36,236 ♦Net Exports F o r e ig n T r a d e A further increase o f nearly $100,000,000 in the value o f exports in September carried the total to $427,000,000, the largest since February 1921. W hile imports in creased about $30,000,000 to $285,000,000, the excess o f exports was also the largest since 1921. In September as in A ugust a large part o f the in crease in exports was due to heavy shipments o f cotton and wheat, which rose $57,000,000 and $22,000,000 re spectively. O f the total increase o f about $150,000,000 in exports since July, over $100,000,000 has been due to shipments o f these commodities alone. Compared with September last year, wheat exports have more than doubled, both in quantity and value, but cotton exports, though somewhat larger in quantity, have decreased in value, due to lower prices. A factor in the larger im port total was an increase o f nearly $8,000,000 in value o f silk imports, which, meas ured in bales, were the largest ever reported. Imports of rubber also increased in September, but those o f coffee declined. THOUSANDS OF BARRELS 600r 18 150r Second Quarter Third Quarter $61,971 2,882 8,517 42 5,917 THOUSANDS OF CARS GROSS TONS 30r decline in imports in the third quarter reflects chiefly smaller shipments from England and from the Nether lands, but was due also to decreases in the amounts shipped from all other principal countries except Argentina. 1924 25 t O-' 500 y \ 20 \ 1923 3 / S 192.3 1923 '*»— / 75 V7 1924 300 V ZOO 50 100 25 JAN FEB MAR APR HAY M JUL AUG SEP OCT W I DEC Pie ii*ON PRODU CTION JAN FEB MAR APR MAY M M AUG SEP OCT NOV DEC AUTOr10B1LE PRODUfCTlOM .JAN FEB MARAPR MAfJUN JUL AUGSEP OCTNOV DEF' , CEME NT PRODU*CTION ;JAN FEE MAR APR MAY Jl/N JUL AUG SEP OCT NOV DEC Average Daily Consumption of Cotton and Production of Pig Iron, Automobiles, and Cement, by months for 1923 and 1924 compared. (Latest figures, SepUmber) \ t9 Z 4 -\ l92*4 \ COTTON coNsur1PT10N % % V . \ i 15 J FEDERAL RESERVE AGENT AT NEW YORK P ro d u c tio n The sharp rise in the Federal Reserve B oa rd ’s com posite index o f the production o f basic commodities in September was accompanied by advances in nearly all of this bank’s indexes o f production in individual lines. The blowing in o f 23 blast furnaces in September was reflected by a further increase of 9 per cent, in pig iron output and steel ingot output rose an additional 11 per cent, to 82 per cent, of the com puted trend. Unfilled orders of the Steel Corporation at the end o f September showed a further increase of 184,000 tons. D uring the first three weeks o f October orders taken by the Steel Corporation were reported larger than in the same period o f September, but production fo r the industry as a whole was reported as continuing at about the September rate. (Computed trend of past years=100 Per cent.) 1924 1923 Producers' Goods Pig i ron..................................................... Steel ingots.............................................. Bituminous coal....................................... Copper, U. S. mines................................. Tin deliveries............................................ Zinc*.......................................................... Petroleum.................................................. Gas and fuel oil......... .............................. Cotton consumption................................ Woolen mill activity*.............................. Cement...................................................... Lumber...................................................... Leather, sole............................................. Consumers’ Goods Cattle slaughtered.................................... Calves slaughtered................................... Sheep slaughtered..................................... Hogs slaughtered............................... Sugar meltings, TJ. S. ports..................... Wheat flour ............................................ Cigars. ............................................ Cigarettes.................................................. Tobacco, manufactured........................... Gasoline.................................................... Tires* . .............................................. Newsprint................................................. Paper, total............................................... Boots and shoes........................................ Anthracite coal......................................... Automobile, all......................................... Automobile, passenger............................. Automobile, truck.................................... * = Seasonal variation not allowed for. Sept. July Aug. Sept. 102 100 57 55 75 104 60 70 123 97 61 70 147 107 73 58 72 74 88 In d e x e s o f B u s in e s s A c t i v i t y 66 This bank’s indexes o f business activity generally showed further advances in September and in many cases reached levels close to or above normal, as meas ured by the trend o f past years. Total railway carloadings continued to increase, and in the early part o f October were within 1 per cent, of the largest ever reached, while loadings o f grain and merchandise and less than carload lot freight were larger than ever before. In part, the large carloading figures may reflect lighter loading per car, as net ton mileage figures have been considerably below those of carloadings. Bank debits outside o f New Y ork City showed some what less than the usual seasonal increase, but continued larger than last year. F actory employment, on the other hand, while larger than in August, was considerably smaller than a year ago. The follow ing table gives this ban k ’s indexes in percentages o f the com puted trend, 99 102 80 68 144 95 88 100 136 125 90 98 118 76 146 102 109 88 85 96 107 107 104 85 90 35 140 149 104 112 122 80 65 82 84 104p 85 126 97 63 74 149 104 72 78* 84p 148 68 109 133 93 136 126 121 r 89 80 103 118 130 104 85 74r 93 113 p=Preliminary. M ILLIO NS O F DOLLARS IN THOUSANDS A n increase o f 78,000 bales, or 22 per cent., in the mill consumption o f cotton occurred in September, and further expansion of operations by some of the mills was reported in October. W oolen mill activity was also considerably increased. In the automobile industry, the output of passenger cars increased 3 per cent., and was 18 per cent, above the June low level, but 14 per cent, lower than in September last year. The production o f trucks also increased and was larger than a year ago. M ining o f bituminous and anthracite coal increased at more than the seasonal rate in September, but in October the rise in bituminous production was checked about the middle o f the month, and anthracite output was limited by heavy rains. Cement production in September de clined slightly, and copper mining was also smaller. The diagram at the bottom of page 4 compares daily average production in fou r industries by months this year and last year, and the table on this page gives this bank’s index numbers of production fo r a larger number o f industries in percentages o f the computed trend, with allowance fo r seasonal variation. 103 130 87 126 105 114r 84 78 97 116 168 104 87 74 83 HOr 118r 78 r=Revised. 78 104p 142p 87p 127p 131 125 91 82 107 iio' 92 88p 91 116p 121 96P THOUSANDS OF CARS M ILLIO N S and Sales of Wholesale Dealers in Second District, compared by months, for 1923 and 1924 (Latest figures, September) MONTHLY REVIEW, NOVEMBER 1,1924 with allowance for seasonal variation and, where neces sary, fo r price changes. (Computed trend of past years ==100 Per cent.) 1924 1923 P rim ary Distribution Car loadings, merchandise and misc....... Car loadings, other...................................... Wholesale trade, Second District............. Exports........................................................... Imports........................................................... Grain exports................................................ Panama Canal traffic.................................. Distribution to Consumer Department store sales, Second District Chain store sales.......................................... Mail order sales............................................ Life insurance paid for................................ Amusement receipts.................................... Magazine advertising.................................. Newspaper advertising............................... General Business Activity Bank debits, outside of New York City. Bank debits, New York C ity.................... Velocity of bank deposits, outside of New York City........................................ Velocity of bank deposits, New York City...... ....................................................... Postal receipts.............................................. Electric power............................................... Employment, N. Y . State factories........ Business failures........................................... Sept. July Aug. 103 106 96 93 89 89 108 42 123 100 95 94 155 97 96 91 112 84 101 93 93 82 109 114 99 112 103 97 94 98 92 84 116 100 102 87 95 81 101 '92* ’ 99* 93 100 97 95 93 Sept. 101 116 106p 106 i25 92 103 110 99 111 102 95 98 92 104 97 108 103 99 104 103 83 103 109 96 106 89 103 101 88 100 factories is unusually low, and most employers report a surplus o f labor in their localities. A further reflection o f the changed conditions as compared with last year ap pears in the reports o f the Public W elfare Department of New Y ork City, which show an average of about 1,900 applicants fo r free lodging in each o f the first three weeks in October this year, com pared with about 1,200 in the corresponding weeks o f last year. The general level o f wages remains little changed. Reports to this bank from representative employers in this district show that hiring rates fo r unskilled labor are, fo r the most part, very nearly the same as on July 1, and on October 1 a year ago. Rates fo r skilled labor in this district likewise have been little changed in recent months, though in the building trades few er bonuses are being paid. Average weekly earnings o f factory work ers have increased since July, due to the reduction in part time employment. The follow ing diagram shows the recent movements in this ban k ’s indexes o f unskilled labor wages and prices o f basic commodities, both o f which form important elements in the cost o f manu facture. 90 87 p=Preliminary. E m p lo y m e n t a n d W a g e s The slight increase in the number of persons employed in representative factories in this State in August was follow ed by a more rapid recovery in September, when the number of workers on the payrolls was increased about 4 per cent. Increases occurred in practically all the m ajor industrial groups except building materials. The follow ing table shows the changes since the July low point in a number o f basic industries o f the State, and compares them with the decline o f the spring and early summer. Per cent, of Change in number of Employes Industry Iron and steel............................. Machinery................................... Automobiles................................ Cement......................................... Brick............................................. Furniture..................................... Carpets and rugs....................... Cotton goods.............................. Woolen and worsted................. Cotton and woolen knit goods Men’s clothing............................ Women’s clothing...................... Shoes............................................. Mar. to July July to Sept. — 46 — 12 — 36 + 2 +202 — 10 — 16 — 32 — 34 — 35 — 6 — 43 — 11 + 17 + 3 + 16 — '28 + 4 + 5 + 62 — 6 + 9 + 3 + 56 + 4 Notwithstanding the September increase in em ploy ment, the total number o f workers in representative fa c tories o f the State was approxim ately 11 per cent, smaller than a year ago, and State employment offices report that while they have experienced some increase in the demand for workers, the requests are still considerably fewer than the applications fo r work. Labor turnover in Wages of Unskilled Labor compared with Prices of Basic Commodities (1913 average = 100 Per Cent.) B u ild in g The value o f building contracts awarded in September throughout the country was slightly smaller than in August, but 19 per cent, larger than in September last year, according to the F. W . Dodge Corporation. Since January 1 the total o f new construction contracted for has been nearly 12 per cent, larger than in the same period o f last year. Most of the increases in building contracts in recent months have been outside of the New Y ork district. Figures for this district in September, however, still showed an increase of 9 per cent, over a year ago, and fo r New Y ork City alone an increase o f 21 per cent. Notwithstanding the large amount o f residential build ing contracted fo r during the past year, the percentage o f this type of contracts has not materially changed as com pared with September 1923. Building materials prices, according to the Depart ment o f L a b o r’s index, have maintained a steady average 7 FEDERAL RESERVE AGENT AT NEW YORK recently, after a decline of about 7 per cent, during the spring and early summer. W hile building wages throughout the country have been generally unchanged, there were more decreases than increases in September for the first time in over two years. R o a d B u il d i n g Exceptional activity in residential construction dur ing the past year has been supplemented by unusually heavy road building. The number o f square yards o f concrete pavements fo r roads, streets, and alleys con tracted for in the first nine months of this year has been greater than in any corresponding period. The steady growth in this type o f road construction is indicated by the accompanying diagram, which shows the contracts let by months since 1919. The increased activity in this field has been an important factor in the continued high level of cement production, about 25 per cent, of which, it is estimated, is used in construction of pavements. Road construction has absorbed a considerable number o f unskilled laborers released by the curtailment in man u facturing industries. IN M ILLIO N S 300 ~ 1 ------------ 1 COST OF 1 CONSTRUCT!ON IA 250 200 i 150 100 RENT ARTMEN RENT APARTMEIn t X ^ 191* LEVEL 1917 1916 1919 1920 19£1 1922 19£3 19£4 Rents of Apartments in New York City compared with Changes in the Cost of Building Construction. Apartment A is the Typical Apartment renting for less than $15 per room in 1920. Apartment B is the Typical Apartment ^renting for between $15 and $30 per room in 1920 Further indication o f some surplus o f medium and high priced apartments appears in the large volume of advertising o f vacant apartments offered in many cases at lower rents than a year ago. Out o f a list o f 38 apartment houses advertised in the daily papers in both 1923 and 1924, 20 offered reduced rents this year, 11 showed no change, and only 7 showed advances. The accom panying diagram compares the number of columns of apartment house advertising in the Sunday edition o f a leading New Y ork newspaper during the past three renting seasons. NUMBER OF CO LUM NS Contracts Awarded for Concrete Highway Construction in the United States by Months. (In millions of square yards. Latest figure, September) A p a rtm en t R en ts Reports from representative apartment house owners and managers in New Y ork City indicate a slight decline since last year in rents o f apartments which rented in 1920 for $15 to $30 monthly per room, and a reduction o f about 4 per cent, in higher priced apartments, but show a further slight advance in rents of cheaper apart ments. In some cases, however, where rental rates show little or no change, it has been possible fo r tenants to obtain other concessions. Compared with 1914 levels, present renting rates for the lower priced apartments show an advance o f about 91 per cent., and for medium priced apartments about 63 per cent. The accom panying diagram compares the movement of rents fo r these two classes of apartments with this bank ’s index o f the cost o f construction, includ ing both building materials and building wages. Columns of “Apartments for Rent” Advertising in the Sunday Edition of a New York Newspaper during the Renting Seasons of 1922, 1923, and 1924 The supply o f funds fo r high grade mortgage loans is reported to be large, and this, together with some de crease in acceptable applications, has led to a decline of approximately % o f 1 per cent, since the first o f the year in the prevailing interest rate on mortgage loans. In Manhattan the prevailing rate fo r highest grade mort gages is close to 5 per cent., and in the outlying bor oughs 5 % per cent. Lenders report that they are adopt ing a cautious policy in granting new loans. MONTHLY REVIEW, NOVEMBER 1, 1924 W h o le s a le T r a d e D e p a r t m e n t S t o r e B u s in e s s W holesale trade in this district continued to increase in September, and sales of representative dealers were 4 per cent, larger than a year previous, chiefly because there was one more selling day in the month this year than in 1923. The chief increases in sales over a year ago occurred in diamonds, wearing apparel, and stationery, but sales o f drugs and silk goods continued larger than last year, and those o f groceries and shoes rose above 1923 fo r the first time since the early part o f the year. Sales o f hardware, jew elry, and cotton goods, on the other hand, remained smaller than last year, though larger than in August, while machine tool sales were at the lowest point in two years. Comparative figures o f September sales with those of previous years appear in the follow ing table. September sales o f 63 reporting department stores in this district were 12 per cent, larger than a year ago, partly because o f more selling days than in September 1923, and partly because o f an unusual number o f spe cial sales in the month. A verage daily sales fo r the district were 4 per cent, larger than a year ago, and for Newark and New Y ork City stores were 5 to 7 per cent, larger than in 1923. Stores in Buffalo, Syracuse, and various other selected cities reported small increases in aggregate sales over last year, while stores in B ridge port and Rochester reported decreases. A ll m ajor departments o f the stores showed substan tial increases in business over last year, except silk goods, in which there was a decrease o f about 11 per cent. The increases were particularly large in woolen goods, furniture, and home furnishings. The average value o f the individual sales transaction fo r the stores was $3.05, compared with $3.00 last year. Dollar Value of September Sales (September 1923=100 Per cent.) Commodity Diamonds..................................... Stationery..................................... Clothing........................................ (a) Men’s ................................. (6) Women’s dresses............... (c) Women’s coats and suits.. Drugs............................................ Groceries....................................... Shoes............................................ Dry goods..................................... (a) Cotton................................ (6) Silk..................................... Hardware..................................... Jewelry......................................... Machine tools............................... 1920 1921 1922 1923 1924 112 150 117 127 125 98 82 124 109 83 97 70 122 162 248 59 9(3 80 73 100 70 93 108 80 95 65 76 73 26 123 93 98 89 114 96 88 98 109 87 91 82 93 89 104 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 127 117 109 113 108 106 104 103 102 98 93 102 95 95 88 112 84 95 100 104 Weighted Average................... 8:2 C h a in S t o r e S a le s September sales of reporting chain stores were sub stantially larger than a year ago in the cases o f dry goods, grocery, ten cent, and candy chain systems, but smaller than last year in the cases o f tobacco, shoe, and drug chains. In all lines, however, except ten cent stores, the volume of sales per store was either unchanged or showed a decline, and this bank’s index o f chain store sales declined 3 points to 92 per cent, o f normal as measured by the trend of past years. The follow ing table gives detailed comparisons of the sales of the d if ferent chain systems during the past five years. Number of Stores Dollar "Value of Sept. Sales (Sept. 1923=100 Per cent.) Type of Store Sept. 1924 Dry goods............ Grocery................ Ten Cent.............. Candy................... Shoe...................... Tobacco............... Drug..................... - 544 16,206 1,828 191 316 2,747 312 638 19,024 1,986 206 378 2,814 318 72 79 75 80 86 98 92 68 68 7,5 79 77 92 91 79 83 90 87 91 97 95 100 100 100 100 100 100 100 113 113 112 108 98 98 95 — 3.2 — 3.9 + 3.5 — 0.3 — 17.7 — 4.2 — 6.9 Total................. 22,144 25,364 80 73 86 100 110 — 3.5 Woolen goods.................................................................. Furniture......................................................................... Home furnishings........................................................... Women’s ready-to-wear accessories.............................. Women’s and Misses’ ready-to-wear............................ Hosiery............................................................................ Shoes................................................................................ Cotton goods.................................................................. Men’s and Boys’ wear................................................... Silk goods........................................................................ Miscellaneous.................................................................. +29.0 +25.3 +19.5 +17.1 +15.6 +14.4 +14.2 +11.6 + 9.9 — 10.7 +16.7 Per cent. Sales of each Dept, to Sales of all Departments 2.9 8.9 18.7 14.4 9.2 2.7 3.6 3.2 7.3 3.7 25.4 Stocks o f merchandise on hand October 1 fo r the sec ond successive month were approxim ately equal to those of a year previous. The percentage o f outstanding orders o f the stores to total purchases during the pre vious year was 8.2 per cent, on October 1, compared with 7.9 per cent, on September 1, and 9.3 per cent, on October 1, 1923. Sales by leading mail order houses in the United States increased 44 per cent, over A ugust to the largest total since A pril, and were 17 per cent, larger than in September 1923. This ban k’s index o f mail order sales, after allowance fo r seasonal variation and price changes, was 4 per cent, above the com puted trend of past years. The follow ing table shows the comparative figures for department stores and mail order houses in September fo r the last five years. Net Sales during Sept. (Sept. 1923=100 Per cent.) Per cent. Change in sales per store Sept. 1923 to Sept. 1924 Sept. 1923 1920 1921 1922 1923 1924 Per cent. Change in Sales over Sept. 1923 Stock on hand Oct. 1 (Oct. 1, 1923=100 Per cent.) 1920 1921 1922 1923 1924 1920 1921 1922 1923 1924 Elsewhere, 2d Dist................. All dept, gtores.................... Mail order houses................... 93 93 80 91 93 102 102 85 82 87 82 80 80 85 93 81 97 96 92 89 90 98 99 95 91 96 83 79 96 100 113 112 82 100 117 100 100 100 100 100 100 100 100 115 106 114 95 102 96 105 109 110 93 92 100 99 120 99 92 100 103 120 91 92 100 106 133 100 91 100 96 142 92 91 100 98 128 104 103 100 104 113 107 96 100 97 90 83 87 100 97 93 92 100 100
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