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R eport S e c o n d F ro m on B u sin e ss C o n d itio n s F e d e r a l th e to R e s e r v e F ed eral R eserve th e F ederal D i s t r i c t A g e n t at N ew R eserve Y o rk B oard N ew Y ork , N ovem ber 2 0 , 1 9 1 9 M on ey and T h e con d itio n s refe rre d to in th e m o n th ly re p o rt fo r O cto b e r led th e F e d e r a l R e s e r v e B a n k of N e w Y o r k on N o v e m b e r 3 to a d v a n c e its d isco u n t ra te s, a n d in B a n k in g a n n o u n cin g th e a d v a n c e , to issue th e fo llo w in g s ta te m e n t: T h e reaso n fo r th e a d v a n c e in ra te s an n o u n ced t o -d a y b y the F e d e r a l R e s e r v e B a n k of N e w p ro g ra m m e of 6‘b o rro w a n d b u y ,” a m o n g b a n k s in o rd er t h a t t h e y m ig h t b u y c e rtifica te s of in d eb ted n ess fa r in excess of th eir a v a ila b le fu n d s, a n d a m o n g in d iv id u a ls t h a t t h e y m ig h t b u y b o n d s fa r in excess of th e ir c u rre n t sa v in g s. T h e re s u lt w a s a n im m en se in cre a se in th e lo an a cc o u n ts o f th e m em b er b a n k s, a n d a p ro p o rtio n a te ly g r e a t in crease in th e ir re d isco u n ts w ith th e F e d e r a l R e s e r v e B a n k . B u t w ith b o n d b u y e rs g r a d u a lly re d u c in g th e ir b o rro w in g s a t Y o r k is th e ev id e n ce t h a t som e p a r t of th e g r e a t v o lu m e of c re d it, re s u ltin g fro m b o th G o v e r n m e n t a n d p r iv a te b o rro w in g , w h ic h w a r fin an ce req u ired , as it is released fro m tim e to tim e fro m G o v e r n m e n t need s, is b e in g d iv e rte d to sp e cu la th e b a n k s, a n d w ith a ste a d ily d ecre a sin g vo lu m e o f tiv e e m p lo y m e n t ra th e r th a n to re d u ctio n of b a n k loan s. A s th e to ta l v o lu m e of th e G o v e r n m e n t’ s loans is n o w in cou rse of re d u ctio n c o r resp o n d in g red u ctio n s in b a n k loan s a n d d e p o sits sh o uld b e m a d e in o rd er to in su re an p ro cess, t h a t p o rtio n of th e e xp an sio n w h ic h th e c a r r y in g of G o v e r n m e n t o b liga tio n s im p o sed u p o n o rd e rly re tu rn to n o rm a l c re d it con d itio n s. T h e issu an ce b y th e F e d e r a l R e s e r v e B a n k of th e sta te m e n t a lr e a d y q u o te d led to a gen era l d iscu ssio n of th e p olicies th erein a d v o c a te d as w ell as o f th e n o rm a l p u rp o se o f th e reco u rse to th e F e d e r a l R e s e r v e B a n k b y m em b e r b a n k s, w h ic h in th e gen era l re d isco u n tin g a n d exp a n sio n of th e p a s t th ree y e a rs a b o v e re ferre d to , h a d n a tu r a lly b eco m e so m e w h a t o b scu red a n d o verlo o k ed . O p in io n s w ere q u ite g e n e ra lly exp ressed t h a t g r a d u a l c o n tra c tio n is n o w desirab le, t h a t it sh o u ld p ro ce ed a t le a st as f a s t as G o v e r n m e n t o b lig a tio n s in th e b a n k s a re red u ced , a n d t h a t in n o rm a l tim e s th e re d isco u n tin g p riv ile g e sh o u ld be e xercised to m e e t e m e rg e n cy co n d itio n s or T h e in crease in ra te s, th o u g h o n ly fr a c tio n a l,w a s th e first step ta k e n b y th e F e d e r a l R e s e r v e B a n k to w a rd s a ssu m in g its n o rm a l rela tio n to th e v o lu m e o f cred it. D u r in g th e w a r a n d as lon g as th e G o v e r n m e n t co n tin u ed to b o rro w on a n in cre a sin g scale, a c o n s ta n tly in cre a sin g exp a n sio n of c re d it w a s n ece s s a r y a n d th e F e d e r a l R e s e r v e B a n k h a d n o t o n ly to p ro v id e th e b a sis fo r su ch exp a n sio n b u t to e n co u rage it, a n d its ra te p o lic y w a s n e c e ss a ry su b o rd in a te d to th e ra te s c arried b y th e G o v e r n m e n t b o n d s a n d certificates. B u t w h en th e tid e tu rn e d a n d th e G o v e r n m e n t’s b o rro w in g b e g a n to decrease, cre d it co n tra c tio n b e c a m e n o t o n ly p o ssible b u t n e c e ssa ry a n d it w a s th e d u t y of th e F e d e r a l R e s e r v e B a n k , h ith erto th e a g e n c y o f e xp a n sio n to ta k e th e le ad in en co u ra gin g th e g ra d u a l c o n tra c tio n of cred it. T h e sta te m e n t exp ressed th e v ie w s o f th e b a n k as ce rtificates to b e c a rrie d b y th e b a n k s th e m se lv e s, th e a p p ro p ria te cou rse w o u ld seem to b e fo r th e b a n k s to a p p ly th e c re d it th u s released to re d u cin g th e ir re d isco u n ts w ith th e F e d e r a l R e s e r v e B a n k . B y su ch a th e b a n k s w o u ld b e g r a d u a lly re tire d a n d extin gu ish e d . b u t a u to m a tic a lly th e su d d en o r se aso n al d em a n d s of a b a n k ’ s o w n cu sto m e rs, b u t n o t fo r th e p u rp o se of su p p ly in g fu n d s, a t a p ro fit o v e r th e d isco u n t ra te , to th e g en era l c re d it m a rk e t, w h e th e r in th e fo rm o f co m m ercia l p a p e r o r o f loan s secu red b y sto ck s a n d b o n d s o r com m o d ities. to th e desirab le p o lic y to be p u rsu e d b y th e m em b e r b a n k s as th eir in v e stm e n ts in G o v e r n m e n t o b lig a tio n s, or th eir loans u p o n th e m , g r a d u a lly are re d u ced . D u r in g th e w a r th e F e d e r a l R e s e r v e B a n k as B r ie fly re v ie w e d , th e co n d itio n s w h ic h led to th e a d v a n c e in d isc o u n t ra te s a n d to th e issu a n ce o f a n fiscal a g e n t of th e G o v e r n m e n t h a d to en co u ra ge a lo w in g : e x p la n a to ry sta te m e n t on N o v e m b e r 3 w ere th e fo l The to ta l G o vern m en t debt d ecreased REPORT ON BUSINESS CONDITIONS $4 0 0 ,0 0 0 ,0 0 0 d u rin g S e p te m b e r, a n d fro m S e p te m b e r 5 to O cto b e r 3 1 th e G o v e r n m e n t o b lig a tio n s c arrie d b y th e 1 1 2 re p o rtin g b a n k s in th is d is tric t d ecreased $ 10 3 ,0 0 0 ,0 0 0 . B u t th e fu n d s th u s released w ere n o t u sed to d ecrease b o rro w in g s a t th e F e d e r a l R e s e r v e B a n k : o n th e c o n tr a r y , d u rin g th e sa m e p erio d , th e loan s a n d in v e stm e n ts o f th e 1 1 2 b a n k s in cre a sed $ 2 3 7 ,0 0 0 ,0 0 0 , o f j w h i c h $ 2 0 3 ,0 0 0 ,0 0 0 w a s in lo a n s secu red b y sto c k s a n d b o n d s, a n d th e loan s a n d in v e stm e n ts o f th e F e d e r a l R e s e r v e B a n k in creased $ 1 2 9 ,7 0 0 ,0 0 0 w h ile its re se rv e p e rc e n ta g e d ecreased fro m 4 4 .5 p e r ce n t, to 4 1 . 5 p e r cen t, in sp ite o f its d isp o sa l to o th er F e d e r a l re se rv e b a n k s o f b a n k e rs a c c e p ta n c e s a g g r e g a tin g $ 6 8 ,0 0 0 ,0 0 0 . D u r in g th e tw o w e ek s p e rio d fo r w h ic h rep o rts h a v e been re c e iv e d sin ce th e in crease in ra te s, th e v o lu m e o f G o v e r n m e n t o b liga tio n s c a rrie d in one fo rm o r a n o th e r b y th e 1 1 2 re p o rtin g b a n k s in th is d is tric t h a s co n tin u e d g r a d u a lly b u t s te a d ily to d e crea se, th e ir a g g r e g a te loan s a n d in v e stm e n ts h a v e d e cre a se d $ 2 1 5 ,3 0 0 ,0 0 0 a n d th e ir loan s on sto ck s a n d b o n d s h a v e d e crea se d $ 10 1 ,6 0 0 ,0 0 0 . B e tw e e n N o v e m b e r 1 a n d 2 2 th e loan s a n d in v e stm e n ts o f th e F e d e r a l R e s e r v e B a n k h a v e d e cre a se d $ 3 6 ,7 0 0 ,0 0 0 a n d its re s e rv e p e rc e n ta g e h a s risen fro m 4 1 . 5 p e r ce n t, to 4 5 .0 p e r cen t. N o a c c u ra te e stim a te c a n b e g iv e n o f th e p o rtio n of th is d ecrea se in lo a n s w h ic h rep resen ts a c tu a l decrease in c re d it d e m a n d , b eca u se th e h ig h ra te s fo r call m o n e y p re v a ilin g th ro u g h o u t th e m o n th d o u b tless h a v e led co rp o ratio n s a n d oth ers to w it h d r a w su rp lu s m o n e y fro m b a n k s to len d on call a n d h a v e a d d e d still fu rth e r to th e a lr e a d y im m en se v o lu m e o f fu n d s fro m in terio r b a n k s w h ic h are e m p lo y e d h e re ; b u t th e lo w e r p rice s n o w p re v a ilin g in se c u rity a n d in so m e o f th e c o m m o d ity m a rk e ts w o u ld seem to in d ic a te a so m e w h a t re d u ce d a b so rp tio n of fu n d s. T h e re se rv e p o sitio n o f th e F e d e r a l R e s e r v e S y s t e m as a w h o le, h o w e v e r, d id n o t im p ro v e w ith t h a t of th e N e w Y o r k b a n k , b u t, on th e c o n tra r y , declin ed T h e m o n e y m a r k e t in O cto b e r fre q u e n tly g a v e sign s of stra in , o w in g in p a r t to th e sp e cu la tio n w h ich w a s p ro ce e d in g in secu rities, real e sta te a n d m a n y T h e co n gestio n o f ra ilro a d a n d o v e r seas fre ig h t, d u e to strik e s, added la r g e ly to th e p ressu re, a n d th e p a y m e n t o f $ 1 3 5 ,0 0 0 ,0 0 0 o f B r it is h n o tes a n d $ 3 6 ,0 0 0 ,0 0 0 o f th e F r e n c h C itie s loan on N o v e m b e r 1 a n d th e p la c in g o f th e n e w B r it is h loan of $ 2 5 0 ,0 0 0 ,0 0 0 , th o u g h in p a r t a re fu n d in g o p era tio n , in v o lv e d a h e a v y re a d ju stm e n t o f b a la n ce s. C a ll m o n e y fo llo w ed c lo se ly th e v a rio u s m o v e m e n ts th u s fa r , th e re n e w a l ra te h a s been a b o v e 6 p e r ce n t, a n d on N o v e m b e r 1 3 it rose to 1 6 p er ce n t. On N o v e m b e r 1 2 , th e d a y on w h ic h h e a v y declin es to o k p la c e on th e sto c k m a r k e t c a ll m o n e y to u c h e d 3 0 p e r c e n t., w h ic h h a d n o t been re a c h e d b e fo re sin ce 1 9 0 7 . T h e m a r k e t fo r c o m m e rcia l p a p e r h a s been d u ll, w ith ra te s la t te r ly on a 5 ^ to 5 % p e r cen t, b a sis, in s y m p a t h y w ith h igh er c a ll ra te s. O cc a sio n a l sales to w a rd th e close o f th e p erio d a re re p o rte d a t 6 p e r cen t. D e a le rs co n tin u e to fin d th e ir b e st m a r k e t a m o n g th e in te rio r b a n k s, p a r tic u la r ly in stitu tio n s in th e sm a lle r cities. R a t e s on b a n k e rs ’ a c c e p ta n c e s on th e o u tsid e m a r k e t a d v a n c e d a b o u t % o f 1 p er ce n t, in th e secon d w ee k of N o v e m b e r , a n d h a v e co n tin u ed firm a t or a b o v e n e w le v e ls ra n g in g b e tw e e n 4 % a n d 4 % a cc o rd in g to m a tu ritie s. T im e m o n e y h a s been sc a rce a n d th e v o lu m e of tr a d in g sm all. R a t e s fo r th e sh o rter m a tu ritie s ra n g e d b e tw e e n 6 a n d 7 p e r ce n t., w h ile on lo n ger m a tu ritie s fo r a fe w d a y s t h e y to u ch e d 8 p e r cen t. B a n k cle a rin gs h a v e been e x tra o rd in a r ily h e a v y , refle ctin g th e g r e a t a c t iv i t y on th e s to c k m a rk e t. T h e fo llo w in g ta b le g iv e s th e to ta ls o f e a ch w e e k o f th e p e rio d : Week ended New York City Other (6 cities) October 22 October 29 November 5 November 12 November 19 $5,712,080,000 5,713,194,000 5,437,575,000 6,313,998,000 6,028,439,000 $153,050,000 134,182,000 134,227,000 146,160,000 146,251,000 D e v e lo p m e n ts of th e m o n th end ed N o v e m b e r 2 0 on th e sto c k m a r k e t M ark et w ere in te rlo ck e d w ith th e m o v e m e n ts on th e m o n e y m a rk e t. D u r in g O cto b e r th e ra te s a v e ra g e d w ell a b o v e 6 p e r ce n t., b u t th e tra n sie n t declin e in m o n e y w h ic h o ccu rre d soon a fte r th e S to c k m id d le of th e m o n th fro m 4 7 . 7 p e r ce n t, to 4 6 .9 p e r c e n t. c o m m o d ities. d e scrib e d a b o v e . O n o v e r h a lf of th e d a y s in O cto b e r on w h ic h m o n e y ra te s w ere q u o te d th e re n e w a l r a te w a s a b o v e 6 p e r cen t. O n e v e r y d a y , in N o v e m b e r , e n co u ra g e d sp e cu la tio n and p rices p a r tic u la r ly of c e rta in in d u stria l sh ares rose r a p id ly . N o r m a l liq u id a tio n w h ic h m ig h t h a v e been e x p e c te d fro m p ro fit-ta k in g d id n o t m a te ria lize b e c au se m a n y h old ers of sto c k figu re d t h a t m o st o f th e p ro fits a cc ru e d w o u ld h a v e p a sse d fro m th e m b y w a y of in co m e ta x e s. T h e lim ita tio n th u s p la c e d on th e a v a ila b le s u p p ly of sto ck s a cc e le ra te d th e rise. The im p etu s of th is sp e c u la tiv e a c t iv i t y c a rrie d th ro u g h to N o v e m b e r 3 , d esp ite a p erio d of h ig h m o n e y ra tes w h ic h b e g a n th e la s t w eek in O cto b e r. T h e reco rd of d a ily sales se v e ra l tim es a p p ro a c h e d a n d in one case e xceed ed tw o m illion sh ares. FEDERAL R ESERVE AGENT F o llo w in g th e ra te in crease of th e F e d e r a l R e serve B a n k call m o n e y ren ew e d p ro g re ssiv e ly a t ten, tw e lv e , fo u rtee n , a n d sixteen p er c e n t., a n d on N o v e m b e r 1 2 , a fte r a w ee k of h e sita tio n p rices b ro k e v io le n tly . S a le s on th a t d a y w ere m o re th a n 2 ,5 0 0 ,0 0 0 sh ares. In d u s tria l sto ck s as a gro u p closed 1 ^ 3 ^ p o in ts a n d ra ilro a d sto ck s 5 p o in ts b elo w th e h ig h e st of th e y e a r . C e rta in in d u stria ls w h ich h a d been th e lead ers on th e risin g m a r k e t closed fro m 5 1 to 1 2 6 p o in ts b elo w th e y e a r ’ s h igh reco rd . Sub se q u e n tly p rices re co v e re d so m e w h a t, a n d in th e final N ew cre d it dep ressed th e bond a v e ra g e m o n th ly o u tp u t th is y e a r . m arket som e w eek s b efo re th eir effect on sto ck s w a s a p p a re n t. E v e n in th e th ird w eek of O cto b e r th e re w a s a n o tice a b le fa llin g off in th e p u b lic d e m a n d fo r b o n d s, b o th on th e sto ck F in a n c in g ex ch a n ge a n d in th e b o n d h o u se s; a n d d u rin g th e la st w eek of th e m o n th slo w liq u id a tio n d e velo p ed . Q u o ta tio n s seem to in d ica te t h a t m o st in v e sto rs in selectin g th e b o n d s to b e re ta in e d h a v e been m o re solicitou s fo r h ig h yie ld s th a n fo r seasoned se cu ritie s; fo r as a g en eral ru le th e g ro u p s sh o w in g th e lo w e st n e t yie ld s a fte r ta x e s h a v e been th e m o st h e a v ily sold. H ig h g ra d e ra ilro a d b o n d s d u rin g th e p a s t m o n th w e n t off a b o u t 2 % p o in ts, w h ile in d u stria ls w h ich y ie ld a go o d deal m o re d eclin ed o n ly h a lf a p o in t, a n d p u b lic u t ilit y b o n d s y ie ld in g m o re ^ th an ra ilro a d b o n d s also declin ed less. L i b e r t y b o n d s, fro m O cto b e r 2 0 to N o v e m b e r 2 0 fell off 3^ to 1 ) ^ p o in ts, th e re su lt o f m a te ria l liq u id a tio n . A la rg e a m o u n t w a s re p o rte d sold fo r th e p u r po se o f p ro v id in g a d d itio n a l m arg in s on d eclin in g sto ck s th in ly h e ld ; w h ile th e g e n e ra lly h igh e r ra te s a t w h ich loan s to c a r r y th ese b o n d s w e re ren ew ed b y th e b a n k s d o u b tless h a d its effect. T h e ta x -fre e issues w e n t d o w n o n ly s lig h tly , w h ereas th e o th ers suffered c o n sid e ra b ly. EXCH ANGE WEEK ENDED England.......................... France............................. Italy................................. Spain............................... Argentina....................... Hong Kong................... China (Shanghai)........ Japan............................... OCTOBER 25 High Low 4.18M 8.62 10.21 19.15 42.35 93.50 136.50 50.625 4.15 8.73 10.45 19.10 42.35 91.00 134.50 50.625 NOVEMBER 1 High Low 4.17M 8.65 10.61 19.30 42.35 94.25 142.00 50.625 YORK A co n sid erab le p ro p o rtio n of th is fin a n cin g w a s in p re fe rre d in d u stria l sto ck s o f c o rp o ratio n s n o t h ith e rto k n o w n in th is m a rk e t, a n d in m a n y cases rep resen ts th e effo rts of th e sm aller in d u stria l con cern s to en ter u p o n a career o f exp an sio n . I n a d d itio n to th is g r e a t to ta l th e m a r k e t w a s called u p o n to a b so rb $ 1 1 5 ,0 0 0 ,0 0 0 , in H ig h m o n e y a n d th e d em a n d fo r B on d M ark et NEW D u r in g O cto b e r d o m e stic c o rp o ratio n s issu ed n e w secu rities a m o u n tin g to a b o u t $ 3 9 0 ,0 0 0 ,0 0 0 w h ic h exceed ed th e p re v io u s h ig h reco rd re a ch e d in S e p te m b er b y $ 10 ,0 0 0 ,0 0 0 , a n d $ 1 3 6 ,0 0 0 ,0 0 0 a b o v e th e w eek th e vo lu m e o f tra n sa ctio n s fell off m a te ria lly . and AT th e n e t a m o u n t, o f U n ite d K in g d o m 5 3 ^ ’ s offered on a 6 to 6 J ^ p er cen t, b a sis. T h e r e w ere also th e u su al offerings of o u r S t a t e a n d m u n icip a l b o n d s, to g e th e r w ith a b o u t $ 6 0 ,0 0 0 ,0 0 0 o f fo reign m u n icip a l a n d o th er bo n d s. T h e c ircu la rs re c e iv e d th u s f a r in N o v e m b e r in d ica te a m a rk e d fa llin g off in th e v o lu m e o f o ffer ings. I t is re p o rte d t h a t a n u m b e r o f la rg e issues a re bein g w ith h e ld p e n d in g a re tu rn o f easier co n d itio n s in th e m o n e y m a rk e t. F o r e ig n E xchange and F o r e ig n T rade T h e declin e o f th e ch ief E u r o p e a n e xch a n g e s w h ich h a s been p ro g re ssiv e fo r se v e ra l w eek s, a cc e le ra te d a t th e en d o f th e c u rre n t 3 0 - d a y p erio d . S te rlin g a t 3 .9 9 ) ^ a n d fra n c s a t 9 .8 0 to u ch e d n e w lo w lev els on N o v e m b e r 2 0 . T h e s e d e clines w e re a n tic ip a te d e ig h t d a y s p r e v io u s ly b y a fa ll in lire to 1 2 . 8 3 . G e r m a n m a rk s on N o v e m b e r 1 8 sold a t 2 .0 5 cen ts, w h ic h co m p a res w ith a p a r it y b e fore th e w a r o f 2 3 .8 ce n ts. P r a c t ic a lly th e o n ly E u r o p e a n e xch a n ge s w h ic h h eld th e ir o w n w ere th o se on S p a in a n d S w itz e r la n d . T h e risin g p rice o f silv e r h a s a ffected th e O rie n ta l e xch a n ge s, a n d ra te s fo r S h a n g h a i a n d H o n g K o n g a re n o w a t a p re m iu m . T h e ta b le a t th e fo o t o f th e p a g e g iv e s th e w e e k ly ra n g e of d e m a n d ra te s fo r th e le a d in g e xch a n g es. T h e excess o f e x p o rts o v e r im p o rts as sh o w n in th e O cto b e r fo re ign tr a d e re co rd fo r th e c o u n tr y w a s $ 2 1 6 ,2 4 5 ,0 0 0 . T o t a l im p o rts w ere $ 4 16 ,0 0 0 ,0 0 0 , TABLE NOVEMBER 8 Low High 4.1634 4.15J4 4.1434 8.86 8.85 9.05 10.82 10.76 11.10 19.18 19.55 19.30 42.40 42.35 42.35 93.50 94.00 93.00 136.50 139.00 139.00 50.625 50.625 50.625 NOVEMBER 15 High Low 4.13% 9.10 11.80 19.70 42.90 97.50 147.00 50.50 4.1034 9.53 12.83 19.53 42.90 94.00 142.00 50.50 NOVEMBER 22 High Low 4.08% 9.56 11.54 20.15 43.05 102.50 149.50 50.50 3.9 9^ 9.80 12.44 19.70 43.05 97.50 147.00 50.50 REPORT ON B U S IN E S S C O N D IT IO N S Percentage Increase in Sales Value a b o u t $ 19 ,0 0 0 ,0 0 0 b e lo w th e figures fo r la s t m o n th b u t co n sid e ra b ly la rg e r th a n fo r a n y o th er m o n th on reco rd . T h e c u sto m h o use re p o rts fo r N e w Y o r k sh o w a n u n u su a l im p o rta tio n of lu xu ries, su ch as p recio u s sto n es, silks, laces, ra re w o o d s a n d th e like. E x p o r t s fo r O cto b e r w ere $ 6 3 2 ,0 0 0 ,0 0 0 , w h ich is a b o v e th e S e p te m b e r figures b u t s lig h tly b e lo w th o se fo r A u g u s t . T h e declin e in e xp o rts d u rin g S e p te m b e r a n d e a rly O cto b e r co in cid ed w ith th e lo n gsh o rem en ’ s strik e vessels in th is p o rt. w h ic h tie d u p h u n d red s of Percentage Increase in Units J e w e lr y 48 44 Fu rs 57 70 48 In d e te r m in a te 38 53 M u s ic a l in stru m en ts F u r n itu r e C lo th in g 78 14 1 F ig u re s w ere n o t o b ta in a b le fro m p a sse n g e r a u to m o b ile dealers b eca u se of th e c u rre n t sh o rta g e in c ars due to th e so m e w h a t slo w er re a d ju s tm e n t fro m w a r p ro d u ctio n . I t a p p e a rs fro m th e in q u iry t h a t th e in crease in th e T h is h a s been a m o n th of a d v a n c - C ost o f th e first w eek o f N o v e m b e r , 3 3 of th e 3 1 3 articles, th e v a lu e of sales is g re a te r th a n th e n u m b e r o f u n its sold. T h is difference is m a in ly a reflection of th e in crease in p rices ch a rg e d . Je w e le rs a c c o u n t fo r th e f a c t t h a t th e to ta l v a lu e of sales h a s in cre a sed o n ly s lig h tly w h o lesale p rice s o f w h ich are q u o ted b y D u n ’ s R e v ie w , a d v a n c e d w h ile o n ly 1 2 declin ed. I n th e fo l m ore th a n th e v o lu m e of u n its sold on th e g ro u n d ch ie fly t h a t g o ld is th e b a sic m a te ria l o f je w e lr y , a n d lo w in g w eek th e re w a s a decline in th e p rices o f c e r t h a t go ld , b e ca u se of its fixed p rice h a s n o t in crea sed in d o llar v a lu e . F u r rie r s in te llin g w h y p rice in creases in c e rta in fu rs h a s n o t p ro d u ce d a g re a te r L iv in ff P r *ces f ° r th e m a jo r ity o f a rticle s t h a t en ter in to th e c o st o f liv in g . In ta in p ro v isio n ite m s, b u t it w a s m o re th a n o ffset b y a rise in th e p rice s o f b re a d stu ffs, v e g e ta b le s, co tto n go o d s a n d h ides. T h e g e n eral a v e ra g e a d v a n c e in th e p rin cip a l a rticle s t h a t determ in e th e c o st of liv in g in t h a t w eek w a s a b o u t l j ^ p er cen t. difference s a y t h a t th e in tro d u ctio n of m a n y fu rs n o t k n o w n h ereto fo re in th is m a r k e t e q u alize th e a v e ra g e o f p rices. has te n d e d to on P erson al e xp en d itu re w h ic h b e g a n to lift a t th e tim e th e a rm istice w a s sign ed d isa p p e are d c o m p le te ly w ith m o st p eo ple u p o n th e sale o f th e V ic t o r y L o a n . C a r e fu lly co m p iled T o h ig h p rices th e b u y in g p u b lic sh o w s a lm o st no re sista n c e ; b u y e rs are eith er c o m p le te ly in d ifferen t or th e y a c c e p t th e h igh er p rices as q u ite to b e e x p ecte d . M a n y o f th ese n e w b u y e rs a re u n a c c u s to m e d to fo rm er p rices a n d a c c e p t th e n e w scale th erefo re w ith o u t q u estion , o ften p a y in g in cash . re p o rts fro m se v e ra l b ra n ch e s o f re ta il tra d e , m a d e p a r tic u la r ly w ith a v ie w to determ in e th e e x te n t of lu x u r y b u y in g , in d ica te t h a t n e v e r h a s th ere been so m u c h sp en d in g, su ch a d e m a n d fo r e xp en siv e article s a n d su ch d isre g a rd o f p rices. I t is n a tu ra l th a t N e w Y o r k C i t y sh ould b e a p r im a r y m a r k e t fo r lu x u r y b u y in g b e ca u se p eo ple fro m all p a rts o f th e c o u n tr y g o to its sto res to sp en d th eir su rp lu s fu n d s; b u t re p o rts fro m m a n y sectio n s of th is d istric t in d ica te R e p o r ts fro m th e sto res in d ica te t h a t th e w a v e of b u y in g done b y w a g e earn ers h a s so m e w h a t su b sid ed , a resu lt, it w a s su g ge sted , of strik es or u n e m p lo y m e n t cau se d b y strik es. P e o p le w h o h a v e p o ssessed w e a lth fo r som e tim e also h a v e been d isp o sed to lim it th e ir p u rch a se s, re ly in g on p resen t su p p lies to c a r r y th e m th ro u g h in th e h o p e t h a t p rices m a y com e d o w n . T h e con sensus o f o pinion a m o n g th e re ta ilers is t h a t th e b u lk of th e b u y in g com es fro m th e in te rm e d ia te R e ta il T h e re p re ssiv e effect of th e w a r T rade t h a t free sp en d in g is gen eral a n d t h a t th e con clusio n s classes, a n d m a in ly fro m th o se w h o se w a g e s o r in co m e re a ch e d fo r N e w Y o r k a p p ly elsew here, in sm all an d h as risen fa r a b o v e th e a m o u n t req u ired to m a in ta in la rg e cities alike. th eir fo rm er s ta n d a rd o f liv in g . I n q u ir y w a s m a d e in six b ra n ch e s of re ta il tra d e , T h e je w e lr y tra d e re p o rts an u n p re ce d e n te d d e n a m e ly je w e lr y , fu rs, m u sic a l in stru m e n ts, fu rn itu re , m a n d fo r p la tin u m a n d fine go ld je w e lr y , d ia m o n d s au to m o b iles a n d clo th in g, a n d e xten d ed to d e p a rt a n d o th er p recio u s ston es. m e n t sto res d e a lin g in tw o or m ore of th ese sp e cia l ties. A lto g e th e r so m e w h a t m o re th a n f o r t y stores p rice o f d iam o n d s h as risen 10 0 p e r cen t. A n u m b e r o f je w e le rs, p a r tic u la r ly th o se w h o do n o t o p e ra te W ith in six m o n th s th e P e rc e n ta g e s th eir o w n fa cto rie s , s a y th a t th e y a re h a v in g tro u b le sh o w in g th e in crease a b o v e a y e a r ago in th e v o lu m e g e ttin g en o u gh go o ds to m ee t th e d e m a n d a n d th a t o f to ta l sales, a v e ra g e d fro m e stim a te s m ad e , w ere as th e y w ill h a v e to fa c e th e C h ris tm a s season w ith o u t fo llo w s: su fficien t sto ck s. a n d in d iv id u a l a u th o ritie s w ere v isite d . T h e in crease in th e p rice o f silver, FEDERAL RESERVE AGENT AT NEW YORK w h ich on N o v e m b e r 2 0 w a s $ 1 . 3 2 % a n o u n ce, a n d th erefo re a t or a b o v e th e go ld p a r it y p o in t, h a s c a u se d a g r e a t rise in th e p rice of s ilv e rw a re . N e v e rth e le s s th e dealers re p o rt t h a t th e d e m a n d exceed s th e s u p p ly . p ro p o rtio n th a n th e lo w e r g ra d e s, b e c a u se o f th e fa c to r o f lab o r, w h ic h co sts n e a r ly as m u c h p e r h o u r o n c h e a p p ro d u cts as on th e m o re ex p e n siv e . L u x u r y b u y in g h as been p a r tic u la r ly h e a v y n o t o n ly in m illin e ry a n d o th er a rticle s o f w o m e n ’ s w e a r, b u t in G o ld , on th e o th e r h a n d , w h ile its d o llar v a lu e re m ain s sta b le , is c h e a p in p re c ise ly th e ra tio t h a t g en era l p rices h a v e risen. I n th e te n m o n th s o f th is y e a r $ 4 8 ,5 0 0 ,0 0 0 o f go ld h a s been w ith d ra w n fro m m e n ’ s a p p a re l. th e A s s a y O ffice in N e w Y o r k fo r u se a t th e a rts. I n O cto b e r th e h ig h e st a m o u n t in th e h is to r y o f th e A s s a y O ffice w a s w ith d ra w n . T h e in cre a se in w it h d ra w a ls a p p e a rs fro m th e fo llo w in g : J a n u a r y ......................................... F e b r u a r y ....................................... $ 3 ,8 2 5 , 3 2 3 . 0 9 3 ,7 4 4 ,7 8 0 .0 8 M a r c h ............................................ A p r i l ................................................ M a y ................................................. J u n e ................................................. 4 ,3 5 3 ,16 4 .3 3 4 ,8 5 9 ,4 5 4 .0 4 4 , 6 3 6 , 7 8 2 .3 3 5 ,4 9 9 ,5 7 4 .4 0 J u l y ................................................. A u g u s t . ......................................... S e p t e m b e r .................................... 4 , 8 5 6 ,3 1 9 . 1 5 5 , 3 4 3 , 6 3 7 .2 9 5 ,4 4 4 ,6 9 0 .8 2 O c to b e r .......................................... 6 ,0 0 4 ,9 7 2 .8 7 T o tal $ 4 8 ,5 6 8 ,6 9 8 .4 0 R e p o r ts fro m th e fu r tra d e in d ica te t h a t th is y e a r ’ s bu sin ess is th e b e s t e v e r k n o w n , d e sp ite th e f a c t t h a t for th e la s t tw o o r th re e y e a r s it h a s been u n u su a lly h e a v y , w ith risin g p rices. T h e fu rriers d ea lin g in th e m o st e xp en siv e a rticle s a re th o se w h o re p o rt th e g r e a te st in crease in bu sin ess. M u s ic a l in stru m e n ts c a n n o t b e p ro d u ce d in q u a n t i t y to m eet th e d em a n d . I n th e first six m o n th s of th e y e a r w a g e earn ers w ere b u y in g la v is h ly . They w ere q u ite co n te n t to p a y ten tim es as m u c h fo r an in stru m e n t o f th e sam e so rt th e y b o u g h t fiv e y e a rs ago b u t o f b e tte r g rad e . L a t t e r l y th e v o lu m e of p u rch a sin g h a s sh ifte d to th o se of la rg e r incom es. I n th e fu rn itu re tra d e th ere is a p referen ce fo r h ig h er g ra d e go o d s, p a r tic u la r ly lu x u r y fu rn itu re , d e sp ite th e fa c t t h a t c e rta in a rticle s h a v e a d v a n c e d a t le a st 10 0 p er cen t. I n s ta llm e n t fu rn itu re h ouses s a y t h a t m a n u a l w o rk ers a re in clin ed to p a y c a sh fo r th e ir p u rch a ses o r on sh o rt-te rm c re d it, w h ile cle rica l w o rk ers are p ro n e to e xte n d th e ir p a y m e n ts o v e r a lon ger p eriod. I n th e clo th in g tr a d e th e sea so n ’ s b u sin ess h a s been T h e reck less b u y in g t h a t is in d ica te d fro m m a n y so u rces a c ts d ir e c tly to p o stp o n e th e re tu rn to lo w er p rices, to p ro d u ce o v e r-e x p a n sio n in th e c o u n tr y ’ s in d u stries a n d to h a m p e r th e c a p a c it y o f th is c o u n tr y n o t o n ly to m a in ta in its fin a n cial p o sitio n in th e w o rld , b u t to se rv e th o se p a r ts o f th e w o rld w h ich are still su fferin g g r ie v o u s ly fro m th e losses o f w a r. W it h th is p o in t o f v ie w th e w ise st re ta ile rs a re fu lly in a cco rd . C o lle c tio n s a n (j ... t a llu r e s W h ile collection s a re still go o d , c re d its a re b e in g w a tc h e d m o re clo se ly . jn port A c c o r d in g to th e la te s t reN o v e m b e r o f th e C r e d it C le a rin g H o u se , b a se d u p o n tra n sa ctio n s b e tw e e n w h o lesale rs a n d re ta ile rs in v o lv in g a b o u t $ 10 0 ,0 0 0 ,000, p a y m e n ts fo r th e m o n th in th e e a ste rn sectio n of th e c o u n tr y w e re 5 p e r ce n t, m o re th a n a y e a r a go . In d e b te d n e ss, h o w e v e r, sh o w s a slig h t in crease. F a ilu r e s in th is d istric t fo r th e m o n th o f O cto b e r n u m b e re d 8 6 as c o m p a re d w ith 9 2 la s t m o n th a n d 1 1 5 in O cto b e r, 1 9 1 8 . T h e r e w a s a re d u c tio n also in liab ilitie s, w h ic h to ta le d $ 1 , 6 5 0 , 4 4 1 a g a in s t $ 2 , 3 3 5 , 1 2 0 in S e p te m b e r, a n d $ 4 , 2 9 5 , 3 2 8 in O cto b e r, 1 9 1 8 . I n e a r ly N o v e m b e r th e re d e v e lo p e d th e u su a l in crease in th e n u m b e r o f failu res th ro u g h o u t th e c o u n tr y , b u t to ta l figures are n o t y e t in h a n d . A c c o r d in g to th e N o v e m b e r cro p re p o rt fo r N e w Y o r k S t a t e , th e y ie ld p er a cre o f all cro p s co m b in ed w a s 7 p e r ce n t, h igh er th is seaso n th a n th e a v e ra g e in th is s ta te d u rin g th e la s t ten y e a rs . W h ile m a n y cro p s, in clu d in g h a y , w in te r w h e a t, b e a n s, to m a to e s, h o p s a n d g ra p e s y ie ld e d w ell, th is h a s been d is tin c tiv e ly a corn y e a r . T h e ex cellen t co rn cro p is a scrib e d to fa v o ra b le w e a th e r e a r ly in th e seaso n , im p ro v e d fa rm in g m eth o d s a n d C rops m o re c are fu l a tte n tio n to th e k in d o f seeds u sed . The y ie ld of silage co rn w a s 2 5 p e r ce n t, h e a v ie r th a n th e a v e ra g e fo r th e la s t fe w y e a rs , a n d it is o f e x c e p tio n a lly go o d q u a lity . S w e e t co rn ra ised fo r ca n n in g a v e ra g e d 2 .6 to n s p e r a cre co m p a re d w ith 1 . 1 0 to n s la s t y e a r , a n d co rn h u sk ed fo r g ra in a v e ra g e d tw o in d ica te b u sh els p e r a cre m o re th a n a n y p re v io u s h a rv e s t. v a r io u s ly t h a t th e in crease in th e d o llar v a lu e o f sales o v e r la s t y e a r is fro m 5 0 to 40 0 p er ce n t. T h e h ig h e st w a s e stim a te d earlier in th e season, a n d th e N e w g ra d e s o f clo th in g h a v e a d v a n c e d p r o b a b ly less in Y o r k S t a t e cro p is n o w e stim a te d a t 3 7 J ^ m illion p h en o m en al. R e p o r ts fro m th e d ealers T h e y ie ld p e r a cre o f p o ta to e s w a s m u c h h igh er th a n R E P O R T O N B U S IN E S S C O N D IT IO N S b u sh els, w h ich is 5 m illion bu sh els a b o v e th e te n y e a r a v e ra g e . Iro n F u r t h e r a d v a n c e s h a v e ta k e n p la c e and iron a n d steel p ro d u c ts, a n d th ese m a y b e a ttr ib u te d a lm o st w h o lly to th e steel strik e a n d to a n tic ip a tio n s of th e effe ct of S te e l in th e coal strik e. U n fille d orders w ere in cre a sin g e v en b efo re th ese strik e s o ccu rre d , b u t n o t en o u gh to t a x th e p ro d u cin g c a p a c it y of th e p la n ts. D u r in g th e m o n th end ed N o v e m b e r 4, h o w e v e r, p ig iron w e n t u p $ 1 . 0 0 to $ 3 .0 0 p e r to n , a n d old m a te ria ls 5 0 cen ts to $ 2 . 5 0 p e r to n . w ere few . A m o n g finish ed p ro d u cts a d v a n c e s L a k e S u p e rio r iron ore sh ip m en ts to N o v e m b e r 1 w ere 4 4 ,0 0 0 ,0 0 0 to n s, o r a b o u t 13 ,0 0 0 ,0 0 0 to n s less th a n a y e a r ago . P ig iron p ro d u ctio n fo r O cto b e r w a s 1,8 6 5 ,0 0 0 to n s a g a in s t 2 ,4 8 8 ,0 0 0 fo r S e p te m b e r, a decrease o f 2 5 p e r cen t. T h e n u m b e r o f m en still o u t on strik e, or o u t b e ca u se o f th e strik e, is n o w e stim a te d b y steel tra d e a u th o ritie s a t 1 5 to 2 0 p er ce n t, o f th e n o rm a l w o rk in g fo rce. T h u s fa r th e co al strik e h a s h a d no re s tric tiv e influence u p o n iron a n d steel p ro d u ctio n ; b u t o f cou rse it is b o u n d to h a v e su ch an influen ce un less co al p ro d u ctio n sp eed ily re co v e rs. R e p o r ts to us fro m m a n u fa c tu re rs w h o u se iron a n d steel in th e ir o w n p ro d u ctio n in d ica te t h a t no im p a irm e n t in th e s u p p ly of r a w m a te ria l h a s been fe lt on a c c o u n t of th e steel strik e. O n th e c o n tr a r y in th e m a jo r ity o f in stan ce s o u tp u t is g re a te r th a n a y e a r ago a n d is still u n e q u a l to th e d em a n d , th o u g h a t so m e w h a t h igh er p rices. S lo w d eliveries a re b la m e d fo r su ch sh o rta g e of m a te ria ls a n d o u tp u t as p re v a ils. C e rta in to o l m a n u fa c tu re rs re p o rt th a t un filled orders #a re c o m in g in a t do u b le th e p re se n t r a te o f o u tp u t, or are g re a te r th a n e v e r befo re. M id d lin g u p la n d s c o tto n a t N e w C o tto n Y o r k co n tin u e d to rise th ro u g h th e la t te r h a lf o f O cto b e r a n d th e first M ark et of n o rm a l in con sequ en ce o f o u r C iv il W a r . A s id e fro m th e C iv il W a r p erio d it is n e c e ssa ry to go b a c k to 1 7 9 9 to fin d a p rice fo r A m e ric a n co tto n t h a t c o m p a re s w ith th is level. T h e m ain fa c to r in th is h igh p rice w a s of co u rse th e e x tra o rd in a r y fo reign a n d d o m estic d em a n d fo r A m e ric a n c o tto n , to g e th e r w ith a th re a te n e d c u r ta ilm e n t o f p ro d u ctio n . G in n in g is still fa r b eh in d la s t y e a r a n d th e in te rio r re ce ip ts fo r th e season to O cto b e r 3 1 w ere o n ly 1,7 4 6 ,0 0 0 b a les a g a in s t 2 ,0 3 5 ,000 fo r th e sam e p erio d a y e a r ago . O n th e o th e r h a n d c u rre n t re ceip ts a re fu lly u p to n o rm a l; in th e la s t w e ek of O cto b e r th e y w ere 2 7 6 ,8 00 bales a g a in s t 2 5 7 ,0 0 0 a y e a r ago . T h e w o rld ’ s v isib le s u p p ly is large. A r o u n d th e first of N o v e m b er it w a s p la c e d b y th e le ad in g a u th o r ity a t 4 ,6 3 2 ,000 b ales a g a in s t 3 ,9 5 5 ,0 0 0 a t th is tim e in 1 9 1 8 , a n d 3 ,6 9 2 ,0 0 0 in 1 9 1 7 . T h e recession of th e sto ck m a r k e t on N o v e m b e r 1 2 w a s reflected in c o tto n , w h ich like sto ck s, h a s been th e s u b je c t o f a c t iv e sp ecu la tio n . P ric e s fell off a b o u t 2 0 0 p o in ts, a n d no m a te ria l r e c o v e r y h a s ta k e n p la c e since. T h is is th e tim e o f y e a r w h en th e B u ild in g a m o u n t o f n e w c o n tra c ts a w a rd e d n o r m a lly dim in ishes b e c a u se o f th e a p p ro a c h o f w in te r. Y e t fo r th e a u tu m n seaso n b u ild in g o p e ra tio n s in th is d istric t, p a r tic u la r ly resi O p e r a tio n s d e n tia l c o n stru ctio n , a re h o ld in g w ell. B y w eek s th e a w a rd s as sh o w n in th e a d v a n c e re p o rts o f th e F . W . D o d g e C o m p a n y w ere as sh o w n a t th e fo o t of th e p a ge . F o r th e w ee k en d ed N o v e m b e r 7 d etails a re n o t y e t co m p iled , b u t th e a p p ro x im a te to ta l o f th e a w a rd s w a s $ 1 1 ,5 0 0 ,0 0 0 . I t is n o tice a b le t h a t th e a m o u n t o f b u ild in g go in g on is still as la rg e as it a v e ra g e d fo r th e m o n th o f O cto b e r, a n d t h a t resi d e n tia l b u ild in g a g a in co n stitu te s a h ig h p e rc e n ta g e of th e to ta l. p a r t o f N o v e m b e r a n d re a ch e d a p rice of 3 9 % cen ts a tte n tio n N ever co m p a riso n since 18 6 6 has th e N ew Y o rk q u o ta tio n T h a t th is d istric t is c o n c e n tra tin g its on d w ellin g c o n stru ctio n of p e rce n ta g e s. In th e a p p e a rs la s t in w eek a of T h e q u o ta tio n s o f t h a t y e a r O cto b e r, fo r e xa m p le, 4 4 .2 p er cen t, o f th e a w a rd s w ere in d e p re cia te d p a p e r m o n e y , a n d as o f a tim e in th is d istric t w a s fo r resid en tial c o n stru ctio n , w h ic h w h en th e w o rld ’ s p ro d u ctio n w a s still a m ere fra c tio n in clu des a p a r tm e n t a n d te n e m e n t h o uses, h o tels a n d to u ch e d su ch a figu re. B U IL D IN G W EEK EN D E D October 10 17 24 31 CO NTRACTS RESIDENTAL AWARDS New floor space in square feet Value 1,556,400 $5,505,600 405,800 1,976,500 1,658,700 5,281,300 1,477,600 4,629,200 OTHER AWARDS Value $5,994,906 7,111,510 7,442,100 3,151,600 TOTAL Value $11,500,506 9,088,010 12,723,400 10,468,600 FED ER AL R ESERVE AGENT g a ra g e s as w ell as in d iv id u a l h o uses, w h ereas th e p e rc e n ta g e fo r th e n o rth e rn h a lf of th e c o u n tr y e a st of th e m o u n ta in a n d P a c ific C o a s t sta te s w a s 2 7 .3 . AT NEW YORK m a n u fa c tu re rs to s a y t h a t as soon as p re se n t sto ck s a re e x h a u ste d p rice s a re lik e ly to b e a d v a n c e d fu rth e r. F o r th e y e a r to N o v e m b e r 1 th e to ta l a w a rd s in N e w Y o r k S t a t e a n d N o rth e r n N e w Je r s e y a m o u n te d to $ 4 5 3 ,0 0 0 ,0 0 0 a g a in st $ 2 3 7 ,7 0 0 ,0 0 0 in 1 9 1 8 , $ 2 8 6 ,2 7 5 ,0 0 0 in 19 17 , a n d $ 2 2 3 ,8 0 0 ,0 0 0 in 19 13 . The la tte r figu re w a s th e h ig h e st a tta in e d b efo re th e w a r. T h u s e v en a llo w in g fo r th e a d v a n c e in b u ild in g co sts, th e vo lu m e fo r th e y e a r th u s fa r is n o ta b le. C lo th in g m a n u fa c tu re rs h a v e h a d C lo th in g , D ry G oods ^ an d te x tile s reso rt to a llo ttin g th eir p ro d u c t fo r sp rin g d e liv e ry b e ca u se t h e y in ^urn are su )3j ect to a llo tm e n t in o b ta in in g m a te ria ls fro m w oolen a n d w o rste d m ills. G o o d s fo r w in te r use, th e d e m a n d fo r w h ich su b sid ed so m e w h a t a m o n th ago on a c c o u n t of m ild w e a th e r, are a g a in in h e a v y d e m a n d . T h e o u tp u t of silk a n d c o tto n m ills is re p o rted Labor E a r l y rep o rts fro m th e N e w Y o r k S t a t e In d u s tr ia l C o m m issio n in d ica te t h a t strik es re d u ce d th e su m to ta l o f e m p lo y m e n t a b o u t 2 p er cen t, in O cto b e r as c o m p a re d w ith S e p te m b e r. T h is re d u c tio n w a s in sp ite o f a n in c rease o f a b o u t 2 p e r ce n t, in th e n u m b e r of e m p lo y e e s in lo ca lities o r in d u stries u n a ffe cte d b y strik es. T h e to ta l re d u c tio n sh o w n , h o w e v e r, is co n sid e ra b ly less th a n th e figures g iv e n o u t b y la b o r lead ers a m o n th a go led one to a n tic ip a te . T h o se figures su g g ested t h a t th e re d u ctio n w o u ld a m o u n t to a b o u t 5 p er cen t. O n th e w h o le, la b o r difficulties h a v e d im in ish ed in th e p a s t m o n th . A n u m b e r o f n e w strik e s w ere s ta r te d in N e w Y o r k C i t y w h ic h p ro m ised to w o rk h a rd sh ip on th e p eo p le, b u t th e y w e re q u ic k ly sold u p to th e m id d le o f 19 2 0 . T h e ra te o f p ro d u c tio n o f th ese m ills h as in crea sed b u t rem ain s fa r b eh in d th e d em a n d . se ttled , u s u a lly w ith a n in crease in w a g e s o r sh o rter h o urs. T h e p rin te rs’ strik e is still on, th o u g h w ith T h e k n it go o d s tra d e also is u n ab le to k eep u p w ith th e d e m a n d fo r its p ro d u cts. M a n y orders fo r go o d s fo r e x p o rt h a v e been refu sed b e ca u se of th e in a b ility p u b lish ers to t r y in n o v a tio n s in th e e xten sio n o f th e u se o f e le c tro ty p in g a n d lith o g r a p h y . of m a n u fa c tu re rs to m e et th e d o m e stic call fo r go o d s. Sh o e m a n u fa c tu re rs re p o rt g r e a t d ifficu lty in se cu rin g en o ugh leath ers o f fine q u a lity to m e e t th e d em a n d fo r h igh g rad e shoes. T h e sh o rta g e of m a te ria l, to g e th e r w ith la b o r difficulties, p ro m p ts s lo w ly d im in ish in g e ffectiven ess. I t h a s led c e rta in W a g e s o f f a c t o r y w o rk e rs, as co m p iled b y th e N e w Y o r k S t a t e In d u s tria l C o m m issio n , co n tin u e m a te ri a lly h igh e r th a n d u rin g o u r p a rtic ip a tio n in th e w a r, a n d a re 96 p er ce n t, a b o v e th e a v e ra g e fo r 1 9 1 4 . T h u s it a p p e a rs t h a t w a g e s on th e a v e ra g e h a v e a d v a n c e d m o re th a n th e c o st o f liv in g . T h is re p o rt is p re p a re d m o n th ly fo r th e F e d e r a l R e s e r v e B o a r d . C o p ie s a re issu ed fo r th e in fo rm a tio n of m e m b e r b a n k s a n d th o se w h o h a v e co n trib u te d to w a r d its p re p a ra tio n . A d d itio n a l cop ies m a y be o b tain e d b y a d d ressin g FED ERAL R ESER VE AGENT, F ed eral R eserve B a n k of N e w Y o rk . 1 5 N a s s a u S tre e t, N e w Y o r k .
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