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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 Business Conditions in the United States R O D U C TIO N in basic industries and factory em ployment increased in September. Distribution of commodities, both at wholesale and at retail, continued in large volume, and the level of prices re mained practically unchanged. P P r o d u c t io n The Federal Reserve B oard's index of production ad vanced 2 per cent in September, notwithstanding the suspension of anthracite mining. The volume o f output increased considerably in the iron and steel, bituminous coal, and textile industries, while the decreases which oc curred in some other industries were relatively small. Automobile production was larger than in August, but continued to reflect the effects of curtailment incidental to changes in models. Number of employees on factory payrolls in September was larger than in August in nearly all reporting industries. Building contracts awarded during September did not equal the record level of August, but continued large as compared with earlier months. Total contracts awarded during the first nine months of this year were nearly as large as fo r the entire year 1924. Crop conditions, as reported by the Department o f Agriculture, showed considerable improvement in Sep tember, and the indicated yields o f cotton, corn, oats, barley, and hay were larger than a month earlier, while PERCENT. November 1, 1925 forecasts o f wheat and tobacco production were slightly smaller. Marketing of crops increased further in Sep tember, but was smaller than last year. T rade Wholesale trade was 9 per cent larger in September than in August, and sales in all lines except dry goods wTere larger than a year ago. Sales of department store and mail order houses showed considerably more than the usual increase in September and were larger than a year ago. Stocks o f merchandise at department stores also increased in September more than usual and at the end o f the month were 4 per cent greater than a year ago. Wholesale firms in all leading lines except groceries reported smaller stocks on September 30 than a month earlier. Total and merchandise freight car loadings in Sep tember were larger than during the same month o f any previous year. Coal shipments were smaller than in August, owing to the anthracite strike, and shipments o f coal and of grain products were smaller than in Septem ber o f last year. P r ic e s The level o f wholesale prices, as measured by the index of the Bureau o f Labor Statistics, declined slightly in September. A m ong groups o f commodities grains, woolen goods, and furniture showed price declines, while prices of coal and building materials advanced. In the first half of October prices of grains, wool, and rubber inPER CENT. r ) WHOLESALE PRICES 1913«100 if--------------------- ■ Index o f 22 Basic Commodities Corrected for Seasonal Variation. (1919 = 100 Per cent. Latest figure, September.) 1922 1923 19£4 1925 Index of U. S. Bureau of Labor Statistics (1913 = 100 Per cent, base) adopted by Bureau. (L atest figure, September.) M ONTHLY REVIEW, NOVEMBER 1. 1925 Bll .IONSOFDOLLARS W eekly Figures Member Bank Credit for Member Banks in 101 (Latest Figures, October 14.) Leading Cities. creased, while prices of sheep, hogs, sugar, and cotton declined. B ank C r e d it A t member banks in leading cities the volume o f loans, both for commercial purposes and on securities, increased further between September 16 and October 14, and at the middle of October total loans of these banks were nearly $650,000,000 larger than at the end o f July. Since July demand deposits o f these banks increased by about $360,000,000, but were below the level of the beginning of the year, while the volume o f their borrowings at the Reserve Banks increased by about $200,000,000 to the highest point of the year. Total volume of Reserve Bank credit outstanding was larger in October than at any other time during 1925, reflecting increases during the two preceding months both in discounts for member banks and in acceptances bought in open market. This growth has been due p ri marily to the seasonal increase during the period o f about $100,000,000 in currency in circulation and there has also been a considerable increase in member bank reserve balances, accom panying a growth in their deposits. In October the rates on prime commercial paper were firmer and the renewal rate on call loans averaged higher than in September. Banking Conditions in the Second District In keeping with the tendencies elsewhere, the volume of loans and investments of reporting member banks in this district increased moderately during the fou r weeks ended October 14, with the difference, however, that in this district the total still remains slightly smaller than at the beginning of the year, whereas for the rest o f the country the totals are much above the January levels. The principal change during the month was in com mercial loans, which increased by October 14 to $2,713,000,000 and were $229,000,000 or 9 per cent above the July low point of the year. Member bank investments in securities held at about the same levels as a month previous, while loans secured by stocks and bonds, which Reserve Bank Credit: W eekly Figures for 12 Federal Reserve Banks. (L atest figures, October 21.) in other districts have been advancing rapidly, were likewise little changed and close to the levels prevailing since the beginning o f the year. The follow ing table, com paring the changes in loans and investments of reporting member banks in this dis trict and in principal cities of other districts since June and the first of the year, reflects the greater stability shown by the figures fo r this district and indicates that recent increases in member bank credit have taken place largely in banks located in other centers. (In millions of dollars) Since June 24 Since Jan. 7 2,713 2,258 2,185 7,156 + 210 — 26— 38 + 146 — + — — 5,960 2,934 3,277 12,171 + 292 + 184 — 5 + 471 + 272 + 451 + 3 + 726 Oct. 14, 1925 Second District Commercial loans............................... Loans on stocks and bonds............... Investments........................................ Total loans and investments............ Other Reporting Centers Commercial loans............................... Loans on stocks and bonds............... Investments........................................ Total loans and investments............. 7 43 96 60 A t the Federal Reserve Bank o f New Y ork the volume of discounts fo r member banks continued at compara tively high levels during the latter part o f September and early part of October, reflecting in part withdrawals of currency from the Reserve Bank amounting since A u gust to about $50,000,000 more than receipts. Discounts later declined considerably, accom panying gold imports and a gain o f funds by this district in the inter-district settlements. Money Market Increased demands for funds fo r commercial purposes, with a considerable increase in currency requirements, together with continued activity in the security markets, were accompanied by firmer money conditions during the first part of October. Later in the month, gold im ports and an inflow o f funds from the interior caused slightly easier conditions. As New Y ork banks generally remained out o f the commercial paper market dealers relied chiefly on in- 3 FEDERAL RESERVE AGENT A T NEW Y O R K terior banks for sales, and rates on prime names, aver aging 4 14 *4 14 per cent, were slightly higher than in September. Supplies o f paper continued unusually small, and the volume outstanding through 26 reporting dealers at the close of September was 2 per cent lower than in August and at the lowest point since Janu ary 1922. In the bill market the number of bills was increased by the usual seasonal creation of bills to finance crop movements. Despite substantial sales to the Reserve Bank, dealers’ portfolios rose gradually until after the 15th of the month, w^hen they held about steady as the demand fo r bills increased. The open market offering rate on 90 day bills remained unchanged at 3y2 per cent. Yields on short term Government issues advanced between % and 1/4 of one per cent, reflecting firmer money conditions during the early part of the month. Stock Exchange time money rates were about !/4 o f one per cent higher than at the end of September. Call money was also distinctly firmer during the first part of the month, as shown by a rise in the average renewal rate above 5 per cent. The accompanying diagram compares certain money rates in New York and London and indicates that dur ing the summer and early fall rates in the two centers were moving in opposite directions. Rates were rising in New Y ork but declining in London. More recently follow ing a considerable shipment of gold to this country, London rates have stiffened by about y2 o f one per cent, while the New Y ork rates have shown comparatively little change. 4 % ’s declined to new low points for the year French securities were lower, but other foreign issues generally firm, follow ing the Locarno conference. The volume o f new security offerings declined in Octo ber, due chiefly to a decline in large municipal and fo r eign issues. Domestic corporate financing, on the other hand, continued active and, as in past months, included numerous stock issues. The growth of the stock method of financing during the past 9 months is shown in the fol lowing table, which indicates also that the proportion of such issues to total financing is still considerably below the high levels reached in 1919 and 1920. 1919 1920 1921 1922 1923 1924 1925 56.0 44.6 17.7 25.8 23.6 27.4 29.1 Percentage of bond and note issues to total..................... 44.0 55.4 82.3 74.2 76.4 72.6 70.9 Percentage of stock issues to 100.0 100.0 100.0 100.0 100.0 100.0 100.0 F or the first nine months of the year, total new secur ity issues of all types, exclusive of refunding loans, have reached a new high level of approximately 4i/2 billions, compared with 4 billions in the corresponding period of last year. The extent to which corporate financing, par ticularly of public utilities and of land and building pro jects, has contributed to this expansion is indicated in the follow ing diagram based on tables appearing in the Commercial and Financial Chronicle. l\ 959 507 2,411 333 2,100 1,895 LAND-BLDG5-ETC1£41_ RAILROADS 1,919 995 1351 M ANU FACTURE y n M M INING- & ril5C 'L - W ffl ■ PUBLIC UTILITIES 1919 j | | 19 £0 1921 1922 j 1923 g j j 1924 1925 New Capitial Issues During the First Nine Months of Seven Years by Types of Companies. (Refunding Issues Excluded.) In millions of dollars. Security Markets Renewed rise of prices in October with heavy trading carried averages o f industrial stocks 35 points above the low of March, and 30 points above the high of pre vious years, reached in 1919. Railroad stocks were also strong and reached new high levels since 1917. Reflect ing these advances, a computation on October 22 indi cated the average yield on 69 active dividend paying stocks of both classes to be approximately 5 per cent. Corporation bonds showed little net change for the month. In United States Government securities, how ever, the tax exempt 3^2’s and the Liberty 2nd and 3rd Foreign Exchange Accom panying seasonal offerings o f commercial bills and easier money conditions in London, sterling ex change declined further during the first weeks o f Oc tober to $4.83% , the lowest point since the resumption o f gold payments. Later in the month, follow ing gold shipments and somewhat firmer money in London, the exchange rate recovered to above $4.84% . French exchange declined sharply to nearly 4 cents on October 24, and then recovered to 4*4 cents. Belgian francs advanced slightly to above 4i/2 cents and were thus quoted substantially above French exchange. Of other European exchanges, lire showed reactionary ten MONTHLY REVIEW, NOVEMBER 1, 1925 4 dencies, while Danish and Norwegian rates were again strong at close to their recent high levels. Argentine exchange showed a further gain, and B ra zilian milreis rose above 15 cents for the first time since 1921. Reflecting seasonal grain exports, the premium on Canadian dollars was further increased and as a con sequence there were substantial gold shipments from New York, together with some movement from London. Gold Movement The decline in sterling exchange below the gold point in October was followed by gold shipments from E n g land amounting to $32,000,000 during the first 27 days of the month. In addition to these shipments, $4,000,000 was received in San Francisco from Japan and an ad ditional $9,500,000 was reported en route to New Y ork from England. W hile this inflow of gold is the heaviest for any month since M ay of last year, it has been offset in part by exports of $23,000,000, of which $22,000,000 has gone to Canada and the remainder chiefly to the Straits Settlements. F or the month of September the gold movement for the country showed exports of $6,800,000 and imports of $4,100,000, which resulted in a net export balance of $2,700,000 fo r the month, and of $144,400,000 fo r the first nine months o f the year. Foreign Trade A further increase in both import and export trade, largely seasonal, occurred in September, but while im ports of $349,000,000 were 22 per cent larger than a year previous, exports amounting to $422,000,000 were slightly smaller, and the export balance was the smallest fo r any September in the last ten years, except 1922. The decline in exports com pared with a year ago was due entirely to much smaller shipments o f raw food stuffs, especially rye and wheat, resulting from smaller crops in the United States and larger crops in Europe. Exports o f manufactured products were about 14 per cent larger than in September 1924, and raw cotton ex ports, which constituted nearly one-fourth o f total exports in September, were slightly larger in quantity and about the same in value as a year ago. The substantial increase in im port trade over Sep tember of last year was due chiefly to an increase of nearly 50 per cent in the value o f raw materials re ceived, especially silk and rubber. Im ports of raw foodstuffs also wrere considerably larger in value than a year ago. Production Indexes o f production com puted by this bank gen erally indicated an expansion of m anufacturing activity in September. P ig iron production showed an increase and the out put o f steel ingots rose above estimated normal fo r the first time since A pril. A dditional evidence o f increased buying during the month appeared in an increase of 204,000 tons in unfilled orders of the Steel Corporation, and October orders in most companies were generally reported as showing moderate increases over the Sep tember averages. Accom panying the stoppage o f anthracite coal m in ing, production of bituminous coal increased further to 46,700,000, the highest since January, when output was unusually heavy. Reflection o f the coal strike appeared also in increased activity in the production o f coke for use as a substitute fo r anthracite. Monthly Changes in Production of Basic Commodities. Production Figures are in Percentages o f Computed Trend o f Past Years which is taken as a Base of 100. (Latest figures, September.) FEDERAL RESERVE AGENT AT NEW YORK 5 ADVERT ISING* NEWSPAPE 5. 6 MAG-A2fNI 1923 PERCEN T. 150" DEPT. STORES /V/"VN V ' A >©r\ / v V VT r- 'V ML ORDER 10U5ES DEPT STORE i i M A I L C >RDER S, \L E S 11 1922 192.4 Monthly Changes In Indexes of Distribution and Genera] Business A ctiv ity . (Computed trend = 100 Per cent. Latest figures, September.) In the automobile industry, figures on passenger cars, while increased over August, continued to reflect tem porary production difficulties in one o f the leading com panies.. The output of other companies was excep tionally heavy, and the production of trucks, amounting to 57,883 vehicles, reached a new high level, 88 per cent above that of September last year. Increased activity in the textile trade was shown by (Computed trend of past years=100 per cent) 1924 1925 Sept. July Aug. Sept. 65 87 88 99 85 99 124 94 78 87 124 100 78 114 83 89 92 105 96 102 126 117 83 77 132 116 82 130 81 98 96 lOOr 110 107 127 108 78 83 131 103 79 130 84 105 99p 103 105 110 104 112 100 127 134 112 106 82 107 116 131 110 92 99 96 118 122 99 122 114 103 91 103 107 105 79 111 137 145 111 83 106 104 158 169 111 105 114 93 99 99 86 100 74 101 137 125 108 81 101 108 95 96 90 102 107 94 113 110 109p 105 80 108 Producers' Goods Pis iron..................................................... Steel ingots............................................... Bituminous coal....................................... Copper, U. S. mines................................. Tin deliveries............................................ Zinc............................................................ Petroleum.................................................. Gas and fuel oil........................................ Cotton consumption................................ Woolen mill activity*.............................. Cement...................................................... Lumber...................................................... Leather, sole............................................. Silk consumption*.................................... 85 88p 131 105p 71 122 Consumers' Goods 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.................................... * = Seasonal variation not allowed for. * *= Strike. p = Preliminary. 114 85 105p ** 126 117 163 r = Revised. an increase o f 34,600 bales in the consumption o f cotton to 85 per cent, o f estimated normal, and a further rise in the index o f woolen mill activity. In the case o f silk consumption, on the other hand, the index, while con tinuing high, showed a decline as com pared with the August level. O f other m ajor lines o f activity, copper output con tinued slightly above normal, and cement mill ac tivity remained at high levels. The accom panying table shows this bank's indexes o f production in percentages o f the com puted trend, after allowance fo r seasonal variation. Indexes of Business A ctivity A further increase of general business activity appears to be indicated by this bank's indexes for September and prelim inary figures fo r October, most of which stand at levels close to or above estimated normal as measured by the trend o f past years. Bank debits outside o f New York, which closely re flect trade conditions, were 15 to 16 per cent higher in recent weeks than in 1924, and approxim ately 10 per cent above the trend o f past years. Railway traffic con tinues heavy, despite smaller shipments o f coal and grain, and in merchandise and miscellaneous freight particularly was much above the totals o f previous years. Continued activity in real estate in September was indicated by large totals of building permits and real estate transfers. Department store and mail order sales were also at high levels, and factory labor generally well employed. The diagram at the top of the page and the follow ing table show this bank's indexes o f business activity expressed as percentages o f the com puted 6 MONTHLY REVIEW, NOVEMBER 1, 1925 trend, with allowance for seasonal variation and, where necessary, for price changes. (Computed trend of past years =100 per cent) 1924 1925 Sept. July Aug. Sept. 102 100 105 106 106 86 125 103 101 94 99 115 76 96 103 104 91 102r 114r 83 94 106 96 90 95p 118p 102 95 114 109 105 99 96 88 93 117 123 120 96 92 103 98 120 120 101 94 95 102 94 116 122 112 105 95 101 113 110 118 109 122 110 122 102 103 107 105 92 103 105 99 104 100 102 98 87 142 114 105 108 98 106r 177 121 99 107 98 101 184 122 103 Primary 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............................. 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 Dist. excl. New York City........................................................ 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....................................... Building permits....................................... p=Preliminary. ioo 97 184 r—Revised. Employment and Wages A n increase of nearly 3 per cent from August to Sep tember in factory employment was reported by the New Y ork State Department of Labor, and substantial gains in other localities within the district were reported by the Manufacturers Association of B ridgeport and the United States Employm ent Service. F or the country as a whole factory employment gained i y 2 per cent over August and nearly 8 per cent over September 1924. In New Y ork State the gains over August were fairly general, but were especially noteworthy in metal p ro ducts, textiles, and house furnishing industries. In ad dition to the usual seasonal gains in clothing, food pro ducts, and holiday lines, important increases occurred also in machinery and electrical goods, while automobile employment continued at unusually high levels. P rac tically the only industries failing to gain were shipbuild ing and railway equipment, and industries which are past their seasonal high points. W age rates in the state generally remained little changed in September, but owing to slightly fuller work ing time, average weekly earnings of factory workers in creased slightly to $28.32, which was close to the highest level since 1920, and 123 per cent above the 1914 average. as tabulated by S. W . Straus and Co., also recorded large gains, as shown by a rise of 38 per cent over a year ago in the total for 369 leading cities. W hile in this district September contracts were con siderably below the high level of August, they were larger than in any previous September and 56 per cent above September last year. Outside of this district the volume of building was larger than ever before, and in three important districts, New England, Pittsburgh, and the Central West, was larger fo r the nine months since January than for the entire year 1924. Both in this dis trict and for the country as a whole the percentage of residential construction continued high and close to the level of last year. Reflecting heavy building, prices o f building materials, according to the Department of Labor index, advanced 2.4 per cent between July and September, and were slightly higher than last year, though much below the high levels of 1920 and 1923. Basic building wage rates continued comparatively steady at the high levels of recent months. Apartment Rents Reports from representative apartment house owners and agents in the New Y ork Metropolitan area indicate a decrease o f about 2 per cent from last year in rents of apartments which rented in 1920 for over $15 monthly per room and a reduction o f about 1 per cent in rents o f lower priced apartments. In addition to this slight down ward tendency in quoted rents, the offering of concessions to prospective tenants is reported to be frequent, especi ally in the higher priced apartments. Compared with 1914 levels, present rental rates fo r the cheaper apartments have advanced about 90 per cent, and are now only slightly below the highest point. Rents o f medium priced apartments (renting in 1920 fo r from $15 to $30 per room monthly) are approxim ately 60 per cent higher than in 1914 but are 9 per cent lower than the maximum of 1921. The accom panying diagram com pares the movement o f the two rent indexes with this bank’s index of the cost of construction, including both building materials and building wages. PER CENT. B u ild in g The continuation of heavy building in September was indicated by the reports of the F. W . Dodge Corporation, which showed total contracts awarded in 36 states to be only 7 per cent below the high level of August and 59 per cent larger than in September 1924. Permits issued, 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 rent ing for between $15 and $30 per room in 1920. FEDERAL RESERVE AGENT AT NEW YORK Further indication of a large supply of medium and high priced apartments, resulting from extensive new building operations, appears in the larger volume of advertising of vacant apartments during the fall renting season of 1925 than in past years. The accompanying diagram compares the number of columns of apartment house advertising in the Sunday edition o f a leading New York newspaper during the renting seasons of the past four years. 7 bank’s index of 20 basic commodities and also an index of unskilled labor wages in this district, indicates the maintenance of a fair degree of stability during the past few years in these basic elements entering into costs of manufacture. This stability is in contrast with the sharp advances which have occurred in stock prices, and the active speculation in real estate in many sec tions. N U M B E R OF CO LU M N S f / / / \ l 325 1924 / \ /l9 2 3 \ / / / Prices of 20 Basic Commodities and W ages of Unskilled Labor in the Second District Compared with Prices of 50 Stocks in Percentages of the 1923 Average. AUGUST SEPTEM BER- O CTO BER Columns of “ Apartments for Rent” Advertising in the Sunday edition of a New York Newspaper during the Renting Seasons of 1922, 1923, 1924 and 1925. The demand for mortgage loans, though somewhat diminished in the past year, continues large and the supply of funds for high grade mortgages is reported to be ample. Rates, which are about the same as those pre vailing a year ago, are reported to be 5 to 6 per cent, depending upon location and character of the property. Lenders report that they are making loans rather freely for the smaller type of residences but are proceeding cautiously with loans on high priced apartments and office buildings. Commodity Prices A slight decline in the Department of L a b o r’s wholesale price average for September was followed by further declines in October in this bank’s price index of 20 basic commodities to the lowest point since May. This decrease was due chiefly to lower prices for agricultural products, as non-agricultural products in many cases tended to be firmer. Spot cotton declined sharply to 201/4 cents, the lowest since May 1922, due to prospects for a large crop. Corn and meats were also reactionary, and raw sugar weakened further to the lowest levels since 1922. Partly offsetting these decreases were increases in prices of iron and steel, rubber, copper, coal, and coke. Recent moderate declines in general wholesale prices, in the face of high and apparently increasing business activity, are some indication of the cou n try’s large p ro ductive capacity and the marked unwillingness of pur chasers to enter into any competitive bidding up of prices. The accom panying diagram, com paring this Crops Crop conditions in New Y ork State continued gene rally satisfactory during September and compared fa vorably with the ten year average. W hile the forecasts fo r potatoes and beans were much smaller than the final yields last year, fru it crops, except grapes, were reported good in most localities, hay has been abundant, and corn and oats were expected to be larger than last year. F or the country as a whole crop conditions improved during the month, but remained slightly below the ten year average. O f the principal crops, the estimate for corn was increased 33 million bushels to nearly 500 m il lion bushels above the 1924 harvest. Spring wheat, on the other hand, showed little change either from August or from the 1924 final crop, but, owing to deficiency o f win ter wheat, the total crop o f 697 million bushels promises to be the smallest in 8 years. In the case o f cotton, estimates were further increased to 15,226,000 bales, which would be the largest crop since 1914. Wholesale Trade Wholesale trade in this district, measured by a weighted index o f the sales o f 200 principal dealers, showed a seasonal increase from August to September, but was 6 per cent smaller than a year ago, due to sub stantially smaller sales o f w om en’s apparel and drugs, and to slight declines in groceries, jewelry, and dia monds. Sales o f machine tools, which reflect industrial activ ity, showed a large gain over last year. Commission house sales of cotton goods were also much heavier than MONTHLY REVIEW, NOVEMBER 1, 1925 a year ago, while substantial gains occurred also in sales of silk goods, stationery, paper, and hardware. Stocks o f shoes continued substantially larger than a year ago, and silk goods stocks also showed a consider able increase, after showing decreases during the early months of the year. Jobbers’ stocks o f cotton goods and hardware, on the other hand, continued smaller than a year ago, and stocks of jew elry and diamonds were also below those of last year. Net Sales Percentage Change Commodity Groceries.............................. Men’s clothing..................... Women’s dresses................. Women’s coats and suits. . . Cotton-Jobbers.................... Cotton-Commission houses. Silk goods............................. Shoes..................................... Drugs................................... Hardware............................. Machine tools...................... Stationery............................ Paper.................................... Diamonds............................. Jewelry................................. Weighted Average. Stock at end of month Percentage Change Sept. 1925 Sept. 1925 Sept. 1925 Sept. 1925 from from from from Aug. 1925 Sept. 1924 Aug. 1925 Sept. 1924 +18.4 — 7.2 — 5.9 —12.1 +18.0 +31.4 + 5.7 + 6.3 +17.7 +19.0 +27.5 — 0 —20 — 34 + 4 +19 + 6 + 1 + 9.1 + 5.1 +21.7 — 13 + 7 +80 + 9 + 7 — 3 — 3 + 6.2 — 5. +12.6 +14.2 + 1.8 — 1.0 — 12.9 + 7.1* +21.1* —11.0 5.2 +34.6 -13.1 - — 1.2 ■— 4.0 Department Store Trade Reports from 72 leading department stores in this district showed the usual seasonal increase in sales from August to September, and a gain o f 2 per cent over the unusually large sales in September last year. F or the fourth consecutive month more stores reported increases than decreases in sales com pared with a year previous. In the case of apparel stores, however, sales were 4 per cent smaller than a year ago. Department store stocks o f merchandise on hand at the end of the month were nearly 4 per cent larger than last year, a slightly greater increase than occurred in sales, so that the rate of stock turnover was somewhat smaller than in September last year. F or the year to date, however, the rate of turnover has been almost identical with that of the corresponding period last year. Stock on Hand Net Sales Percentage Change Percentage Change September 1925 September 30, 1925 from from September 1924 September 30, 1924 + 2.3 + 1.2 + 0.8 — 1.1 +11.5 + 4.2 + 1.5 — 6.2 +12.0 + 1.4 + 2.0 + 2.2 + 4.0 Silks and velvets..................................... Books and stationery.............................. Hosiery..................................................... Luggage and other leather goods.......... Men’s furnishings................................... Home furnishings.................................... Musical instruments and radio.............. Silverware and jewelry........................... Women’s ready-to-wear accessories. . . . Women’s and Misses’ ready-to-wear. . . Men’s and Boys’ wear............................ Woolen goods........................................... Miscellaneous.......................................... + 6.0 + 5.9 + 2.1 + 3.7 Apparel stores............................ Mail order houses...................... — 3.8 +11.0 — 1.2 +11 .0 + 19 .6 — 5.3 + 8.5 +13.8 + 7.1 + 7.6 + 7.7 +10.3 — 2.0 + 1.3 — 5.8 — 2.8 — 2.4 — 9.8 + 8.7 — 2.0 — 5.6 +19.8 +14.1 + 13.7 +12.0 + 9.0 + 7.5 + 7.4 + 7.3 + 6.8 + 6.7 + 6.7 + 4.5 + 2.8 + 1.5 — 1.7 — 1.8 — 8.6 — 18.0 — 0.8 Chain Store Sales A ll types of chain stores continued in September to report larger sales than a year ago, and in most cases the comparisons with the sales o f a year previous were much more favorable than those reported at this time last year. Sales per store, however, were smaller than a year ago in fou r out o f seven lines. The outstanding gain in September was in chain drug stores, where total sales showed the largest increase over a year previous in a long period. Ten cent store systems, variety stores, and tobacco chains showed increases of about the usual amount, but the gains in grocery, shoe, and candy sales were smaller than those reported in the three months preceding. Percentage comparisons o f the number of stores oper ated, total sales, and sales per store with those of a year ago are shown in the follow ing table. Percentage Change September 1925 from September 1924 Type of Store Number of Stores Total Sales Sales per Store Variety.................................................... Tobacco................................................... Shoe......................................................... +14.7 + 4.0 +23.2 + 6.1 + 9.4 +10.8 +20.4 [-21.6 -17.7 -15.7 -12.9 - 7.8 - 3.7 - 3.5 + 6.0 +13.2 — 6.1 + 6.4 — 1.5 — 6.4 — 14.0 Total.................................................... +19.9 4-14.2 — 4.7 Grocery................................................... Ten Cent................................................ All department stores................ Toys and sporting goods........................ Toilet articles and drugs........................ + 3.8 + 3.0 — 3.3 — 3.3 + 6.5 + 6.2 Net Sales Stock on Hand Percentage Change Percentage Change September 1925 Sept. 30, 1925 from from September 1924 Sept. 30, 1924 Linens and handkerchiefs....................... ♦Stock at first of month— quantity not value New York.................................... Buffalo.......................................... Rochester..................................... Syracuse..................................... Newark......................................... Bridgeport.................................. Elsewhere................................... Northern New York State.. . Central New York State........ Southern New York State. .. Hudson River Valley District Capital District..................... Westchester District.............. Comparison o f sales by departments showed large sales o f articles more or less of luxury character, such as toys and sporting goods, toilet articles and drugs, silks and velvets, books and stationery, and luggage and leather goods. Sales of furniture and cotton goods, es pecially sheets, pillow cases, etc., also showed substantial gains, while sales of woolens dropped behind last year, and business in m en’s and w om en’s clothing was also generally slow. The average amount o f the individual sales transac tion in September was $3.01, com pared with $3.02 a year previous.
@FedFRASER