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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 D is t r ic t October 1 , 1924 Federal Reserve Bank, New York Business Conditions in the United States R O D U C TIO N in basic industries was maintained during August at about the same level as in the two preceding months and factory employment showed a slight increase. Wholesale prices, especially those of agricultural products, showed a further advance. P P ro ductio n The Federal Reserve B oa rd ’s index of production in basic industries, adjusted to allow fo r seasonal varia tions, continued in August at the same level as in June and July. Production of steel wras substantially larger than in July and the output of pig iron and mill con sumption o f cotton also increased. Sugar meltings and production o f anthracite and zinc, on the other hand, were smaller. Factory employment increased slightly in August and average weekly earnings increased 4 per cent, owing to less part-time employment. Larger work ing forces were reported in the textile, leather, and automobile industries. Building contracts awarded, con trary to the usual seasonal trend, were 3 per cent, larger in August than in July. Crop conditions showed further improvement in A u gust and the September 1 estimates of production by the Department of Agriculture were larger for wheat, PERCENT. Index of 22 Basic Commodities Corrected for Seasonal Variation (1919 — 100 Per cent. Latest figure, August.) R e s e r v e oats, barley, and potatoes. Estimated yields o f corn, cotton, and tobacco, however, were smaller. Harvesting has proceeded rapidly this year, and the August market ing o f wheat was larger than in either of the past two years. T rade Bank debits, which reflect the volume o f business transactions settled by check, showed about the usual seasonal decrease in August, but were larger than a year ago. Railroad shipments increased slightly, as a result of larger loadings of miscellaneous merchandise, grain, and coal. Wholesale trade was 7 per cent, larger than in July, owing to seasonal increases in sales of dry goods, shoes, and meat, but continued to be smaller than a year ago. Department store sales showed less than the usual increase in August and were 7 per cent, smaller than last year. Mail order sales increased more than usual at this season and were one per cent, larger than in August 1923. Merchandise stocks of department stores at the end of August for the first time this year were smaller than on the corresponding date o f 1923. P rices Wholesale prices, as measured by the index o f the Bureau o f Labor Statistics, increased 2 per cent, in A ugust and were at about the same level as a year ago. The advance was due largely to further increases in PERCENT. 2 MONTHLY REVIEW, OCTOBER 1,1924 PERCENT. JBIUJONS Of DOLLARS \ V A x ft \ TOT/5 \ EARNING/ASSETS \ V l DISC )U N T 3 'V L v . ACc e PTAKc-E5 ....... U.S.SK!JRITIE5 ^ prices o f farm products and foods, though all other com modity groups except metals and fuel also advanced. D uring the first three weeks of September prices of wheat, rye, wool, and rubber increased while those of cotton, silk, petroleum, and metals declined. B a n k C redit Loans and investments o f member banks in leading cities continued to increase during the four-week period ended September 10 and on that date reached a record figure about $1,000,000,000 above the level of three months earlier. The largest increase was in loans on stocks and bonds, and commercial loans also increased, owing partly to seasonal demands fo r credit. The growth o f investments by member banks continued though at a somewhat slackened rate. A t the Federal Reserve Banks there was a further in crease in the holdings of Government securities and of acceptances with the result that in the middle o f Sep tember, although discounts were at the low point for the year, the total volume of Reserve Bank credit was higher than at any time since last spring. Seasonal increase in the demand fo r currency was reflected in a decline in cash reserve, and, at the Reserve Banks in certain of the agricultural districts in an increase of Federal Reserve note circulation. Slightly firmer conditions in the New Y ork money market in late August and early September were re flected in a slight advance in the rate on commercial paper from S-S1/^ to 3 ^ per cent. A fter the middle of September a recurrence of easier conditions followed Treasury operations. The September 15 offering o f oneyear Treasury certificates bore 2% per cent, interest, the same rate as the six months issue sold in June. Banking Conditions in the Second District Between the 20th of August and the middle of September the total volume o f credit extended by report ing banks in this district showed some reduction, reflect ing a moderate movement o f funds to the interior J ,a *7ie " C Department Store Sales— Index off Sales of 333 Stores in 117 Cities (1919 = 100 Per cent. Latest figures, August.) \ VA258 19J9 1920 1921 ' 1922 1923 192.4 Reserve Bank Credit— Weekly Figures for 12 Federal Reserve Banks (Latest figures, September 17) apparently in response to fall agricultural needs. On the 15th of September the Treasury paid out for matur ing notes, Liberty bond interest and miscellaneous items $171,000,000, against which tax collections and other receipts aggregated only $32,000,000, leaving a tem porary excess o f funds in market from Treasury opera tions amounting to $139,000,000. A s a result o f this operation there was a sharp increase in total loans and investments, and deposits o f New Y ork City banks to new high figures fo r the year. A s the collection o f tax checks continued and funds were redistributed through the country by transfers, the excess o f funds was rapidly reduced and a practical equilibrium was reached on September 23. W hile quoted rates in the money markets were relatively little affected by these changes, consider able amounts of funds were available outside the regular markets at lower rates fo r a week follow in g the 15th. MILLIONS OF DOLLARS RATE • Average Weekly Excess Reserves of New York City Clearing House Banks and Open Market Rates for 4 to 6 months Commercial Paper and 90-day Bills (Latest figures week ended September 27) The accom panying diagram indicates the extent to which funds have accumulated in the New Y ork market from time to time through the summer, and particularly 3 FEDERAL RESERVE AGENT AT NEW YORK at the September 15 quarterly tax period. As banks have been largely out o f debt to the Reserve Bank, im ports of gold, return of currency from circulation, dis bursements of government funds, and receipts of funds from other sources, have increased reserves here faster than they could be employed advantageously, with the result that banks have frequently shown substantial excess reserves instead of the very small surplus which has been customary for several years past. A t the Federal Reserve Bank of New York, the volume of discounts fo r member banks increased only slightly between August 20 and September 24. Bills bought in the open market, however, increased very substantially, and there was a small rise also in holdings of Govern ment securities, so that total earning assets rose nearly $50,000,000, and were larger than in any previous month since January. Money Market Increasing business activity, and the usual seasonal requirements fo r business and agriculture were reflected by a firmer tendency in the money market in the latter part of August and the first part of September. Follow ing September 15 a large excess of Government dis bursements over receipts in this market caused a recur rence of easier conditions which continued until the later part o f the month. A n advance of *4 of 1 per cent, to 2 ^ per cent, in the offering rate fo r 90 day bills in the latter part of August led to more active demand, and despite a sea sonal increase in the volume of bills accepted, dealers’ portfolios declined by the middle o f September to ap proximately the lowest point of the year. D ealers’ offer ing rates, accordingly, reverted to 2 per cent, but by the end of the month advanced again to 2*4 per cent. Commercial paper rates, which had advanced from a range of 3-3^4 per cent, to 3*4 per cent, prior to September 15, held substantially unchanged at the higher level in the latter part of the month. Banks in New Y ork City and other large centers were less active buyers, while supplies o f paper were somewhat increased. D uring August, the volume of paper out standing through 26 dealers rose $32,000,000 to $911,000,000, the highest since December 1920. Time money rates on Stock Exchange collateral ad vanced to 3-3*4 per cent, fo r 60-90 day loans early in September, but follow ing the 15th reacted to 2*4-2% per cent. A fter tem porary firmness over the first of the month, call money reverted to 2 per cent, on the E x change, though for a week follow ing the 15th consider able amounts were reported lent outside the Exchange at lower rates. Towards the close of September there were again slight advances in call and time money rates. Security Markets Easier money conditions follow ing September 15 were accompanied by increased activity in the bond market, and representative averages of corporation bonds recov ered more than half the loss sustained in August. L ib erty bonds likewise advanced, and the Treasury 4*4s reached a new high price at 106 7/32. New security offerings continued in large volume and found a ready market. In the case of State and munic ipal issues, prices paid were the highest in some cases in recent years. Foreign financing was particularly h eavy; the total of $170,000,000 fo r the first fou r weeks of the month brought the amount since J uly 1 to about $360,000,000, or only slightly smaller than the total for the entire first six months o f the year. Domestic cor poration financing was also large, both in August and September, due mainly to public utility and railway issues. The accom panying diagram compares domestic corporation issues, exclusive o f refunding issues, by types o f securities for the first seven months o f this year and previous years, and indicates that new financing has been the heaviest in five years. Most o f the issues have been long term bonds, but common stock issues have in creased substantially, accom panying easy money condi tions, and have been the largest since 1920. 1.902 1,854 COMMON STOCKS LONG- TERM BONDSS NOTES 1919 19£0 1921 1922 1923 1924 New Issues of Domestic Corporation Securities, exclusive of Refunding Issues, in First Seven Months of the Years 1919-1924, in Millions of Dollars (Source of figures— Commercial and Financial Chronicle) In the stock market, industrial price averages declined sharply in the early part o f September, accom panying a number of announcements o f dividend reductions or omissions, but as money grew easier after the 15th prices recovered most o f this loss. R ailroad stocks declined late in August and early in September, but likewise recovered in the later weeks. Foreign Exchange Larger seasonal offerings o f cotton and grain bills were presumably factors in a further decline o f 7 cents in Sterling early in September to $4.42, or 15 cents below the high point reached in August, before the conclusion o f the London Conference. Later in Sep tember, however, there was a recovery to around $4.46. 4 MONTHLY REVIEW, OCTOBER 1, 1924 Belgian and French francs held relatively steady dur ing the month about % cent below the August high point. Spanish pesetas showed renewed weakness early in the month and reached the lowest levels since A pril, accom panying continued unfavorable reports of the Moroccan campaign. Danish rates, on the other hand, continued their recovery to the highest since May, and Swiss ex change reached a new high for the year about 1 per cent, of par. Canadian dollars were maintained at or close to par through most o f the period. A m ong South Am erican exchanges, rates on A rgen tina and Brazil were both higher during the month. In the F ar East quotations on Chinese and Indian ex changes likewise advanced, accom panying a rise in bar silver to 7 0% cents, a new high since 1922. Japanese exchange, on the other hand, declined about a cent to the lowest since May, notwithstanding that merchan dise exports in August exceeded imports for the first time since 1922. reflect partly wheat buying diverted to this market by the shortage o f the Canadian crop, which promises to be slightly more than half as large as last year. D uring the past two years Canada has been supplanting the United States as the principal exporter of wheat. The accom panying diagram, com paring exports of the princi pal wheat producing countries by calendar years since 1913 reflects this movement, and indicates also the large expansion in wheat shipments from this country that follow ed the withdrawal o f Eussia as a wheat exporting country after the beginning o f the W orld W ar. M LUO W & . OF BUSHELS 80Qp----- i Gold Movement Im ports of gold in August totaling $18,000,000 were slightly smaller than the previous low figure o f the year, reached in July, and as exports of gold increased to over $2,000,000, the im port balance for the month was approximately $16,000,000, or the smallest since A p ril 1923. D uring the first four weeks of September, figures at the Port o f New Y ork alone indicated imports of only $559,000 as against exports of $2,600,000, the first excess of gold exports at this port since 1920. The decline in imports in recent months reflects in part the falling off in the shipments from England, which in A ugust totaled only $7,000,000, compared with $23,000,000 in January. D uring recent months a much increased proportion o f the South A frican gold output has been diverted to India, and Indian buying has likewise largely accounted for the increase in exports from this country. Further probable factors also in reduced gold imports have been the increase in foreign financing in this mar ket, low short time money rates here, and a growing capacity of European countries fo r the absorption of gold as their finances become stabilized. Foreign Trade Increases of $20,000,000 in shipments of grain and grain products, and of $9,000,000 in shipments o f cotton, were partly responsible for a rise in August of $54,000,000 in the value of merchandise exports to $331,000,000, the largest since May. As imports declined slightly to $270,000,000, the month showed an excess of exports amounting to $61,000,000, compared with a small excess of imports in July. Exports of grains and grain products totaling nearly $34,000,000 were the largest since November 1922, and continued heavy shipments of grain and larger ship ments of cotton were reported for the early weeks of September. In the case of grains, the large shipments 1914 1915 1916 1917 1918 1919 1920 m i )9ZZ 1923’ AV. Exports of Wheat and Wheat Flour of Principal Wheat Exporting Countries by Calendar Years. Foreign Shipments of United States Currency Reports fo r August from 14 banks in New Y ork City show a continued excess of receipts of United States cur rency from abroad over shipments to foreign countries. The amount of this excess, or $7,700,000, however, was somewhat smaller than in July. The receipts o f cur rency during the month were chiefly from Denmark, F in land, Poland, Greece, and Cuba. The follow ing table gives comparative figures from May 1923 to A ugust 1924. 1923 May to Dec. (monthly av.) Net Shipments Shipments Receipts $3,645,000 $2,910,000 $1,374,000 1.463.000 2.074.000 2.601.000 5.206.000 6.969.000 9.234.000 7.817.000 $4,320,000 5,526,000 21,000 Aug................... $5,694,000 6.989.000 2.095.000 940.000 292.000 681.000 199.000 117.000 Total (1924) $17,007,000 $36,738,000 $9,867,000 Net Receipts 1924 Feb.................... June.................. $1,661,000 4.914.000 6.288.000 9.035.000 7.700.000 $29,598,000 The banks in this district also have forw arded since May 1923, $32,000,000 to Cuba by wire transfer through this bank and the Reserve Banks o f Boston and Atlanta. O f this amount $17,000,000 has been forw arded this year. FEDERAL RESERVE AGENT AT NEW YORK Production 5 -------------- — 150 inn The increase in activity in some of the m ajor basic industries, begun in June and July, was continued in August and the early part of September. Available in dexes fo r produ cers’ goods generally advanced in August, but indexes of consumers’ goods declined in a number of cases. P ig iron output increased 6 per cent, in August, and steel ingot production 36 per cent, over the July figures, and mills in the first part o f September further in creased their operations to around 60 per cent, of capac ity, at which level they held steady. Unfilled orders of the Steel Corporation at the end of A ugust showed the first increase since February. Larger buying in the in dustry is attributed chiefly to railway purchases of equipment, particularly freight cars, orders fo r which thus far this year have equaled the total fo r all o f 1923. M ill consumption of cotton increased 10,784 bales, or 3 per cent., contrary to the usual seasonal tendency, and woolen mill operations increased for the first time since February. Further resumption of activity by cotton mills was reported during the early part of September. In the automobile industry the output of cars and trucks increased 2 per cent, over July, and 9 per cent, over the June low point, but this bank’s indexes, which allow for seasonal variation, declined slightly. M ining of bituminous coal also showed somewhat less than the / f.— ^ Vr 50 / anthracite * 1*— 150 I WOOL CONSUMPTION COTTON CONSUMPtld?. 50 0 150 300T5^& SHO :s J SOLE I eathefV "^ 50 u — ... CEMENT . V o \ r*. z ^LUMBER CIJT 0 4 ------ —flA- r 0 AUTOttOBIL Passenger a A \ \ Producers* Goods Pig 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.................................................. 110 107 105 111 99 73 146 92 89 98 130 125 106 66 61 73 99 71 71 124 101 61 76 138 106 63 57 55 75 104 60 70 123 97 61 70 147 107 73 58 72 74 112 84 68 126 109 145 79 149 74 116 88 85 96 108 121 118 93 90 104 145 157 98 92 117 93 119 108 120 83 86 102 118 125 106 90 82 86 92 97 76 109 133 93 136 126 118 89 80 103 118 130 104 85 73 93 113 122 80 72 / ■ / y > A A TRUCKS v S L V A 1 0 150 *63* 74p 149 V ,,/ COPPER ZINC* 50 * Aug. COAL 100 1924 July v o!_______ __ _____ __________________ J ____i_____________ 100 June p BIVUMINOUS 150 Aug. A . / \ / p IG^ |R pN a 1501 (Computed trend of past years=100 Per cent.) 1923 5TEE INGOT 5Z ^ PA PER UCTION BACCOW ^ c o t 'ISUMPTION 50 1916 1919 1920 192.1 1922 1923 1924 Monthly Production in Basic Industries. Seasonal Variation Allowed for. (Computed trend of past years = 100 Per cent.) 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....................................... i05’ 113 84 78 97 ioi* 87 74p 83 106 114 78 usual seasonal increase, and anthracite production con tinued below normal. Cement and copper production, on the other hand, con tinued unusually large, and increases occurred also in the indexes fo r production o f boots and shoes, and paper. The accom panying diagram shows the changes in a number o f this ban k ’s indexes o f production during the past 6 y 2 years; and the table gives the index num bers for recent months fo r a larger number o f indus tries. In both cases, the indexes are expressed as per 6 MONTHLY REVIEW, OCTOBER 1,1924 centages of the computed trend., after allowance for seasonal variation. Indexes of Business Activity Moderate increases occurred in August in the m ajority o f this b an k ’s indexes o f trade and business activity. Bank debits after allowing fo r seasonal variation were larger than in July, and both in this district and fo r the country continued to exceed the figures o f a year ago. Railway traffic showed a further increase and car load ings fo r the week of September 13 were the largest for the year. Loadings o f grain, and of merchandise and less than car-load lot shipments reached levels higher than ever before, and coal loadings increased to the largest since March. W hile department store sales de clined, sales by chain stores and wholesale trade showed an increase over July, but were not up to the level of last year. The follow ing table gives the indexes o f busi ness activity in percentages o f the computed trend, with allowance for seasonal variation and, where necessary, fo r price changes. (Computed trend of past years ==100 per cent.) 1923 Primary Distribution Car loadings, merchandise and misc....... Car loadings, other................................... Wholesale trade, Second District............ Grain exports............................................ Panama canal traffic................................ Distribution to Consumer Department store sales, Second District Chain store sales....................................... Mail order sales.. ..................................... Amusements receipts............................... Magazine advertising............................... Newspaper advertising............................. General Business Activity Bank debits, outside of New York City. Bank debits, 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....................................... 1924 Aug. June July Aug. 102 99 96 76 89 105 74 125 96 93 89 89 108 42 123 100 91 93 103 105 91 103 93 93 93 82 109 114 99 87 95 81 100 99 109 112 116 97 98 108 94 105 90 95 103 99 104 98 109 96 103 89 103 118 109 92 99 86 154 101 98 81 112 98 102 100 93 101 103 110 103 90 111 86 99 88 97 94 99p 98p 84 116 100 92’ 89 101 p = Preliminary. Building A fter declining steadily between A p ril and July, the F . W . Dodge C orporation’s figures o f building contracts awarded throughout 36 States increased slightly in August, due chiefly to increases in middle western sec tions, and were 19 per cent, larger than in A ugust a year ago. In New Y ork City the increase in contracts over a year ago was 9 per cent., and fo r the district as a whole 6 per cent. Residential contracts continued to exceed all other types and were larger than a year ago fo r all reporting States, though slightly smaller in this district. Indus trial building for the country likewise showed a moderate increase, but other types o f building showed compara tively little change. The Department o f Labor index o f building material prices, after declining 7 per cent, between A p ril and July to the lowest point in more than two years, was unchanged in August. Building wage rates were like wise unchanged, but bonus payments have practically disappeared in recent months. Employment and Wages Both in New Y ork State and fo r the country as a whole, the number o f workers employed in m anufactur ing increased slightly between the middle o f July and the middle o f August fo r the first time since March, according to reports o f the State and Federal Labor Departments. A verage weekly wage earnings increased 1 per cent, and 4 per cent, fo r the State and country respectively, reflecting a reduction in part time em ploy ment. Since August reports have indicated a further gradual increase in factory employment, but a tendency fo r out-door work to diminish. The chief increases in employment occurred in indus tries where it had been most curtailed, such as iron and steel, automobiles, some branches o f the textiles, the furniture and piano industries, and plants producing leather, shoes, and leather goods. R oad construction continued large, and building labor was generally ac tively employed. The chief decreases in employment occurred in the building materials industries, which have heretofore been active, and in knit goods and hosiery mills and food industries, while in the apparel trades the seasonal increase in activity has been slow. A surplus o f com mon labor continues in most sections, and a surplus o f skilled mechanics is reported in some localities. The demand fo r farm labor has declined somewhat, so that despite the moderate increase in industrial activity, em ploym ent offices generally continued to find it difficult to place applicants fo r work. Changes in wage rates continued com paratively few, and in most cases were reductions. In New England and the South a number o f textile mills put into effect wage reductions o f 10 to 1 2% per cent, upon resuming more active operations. 7 FEDERAL RESERVE AGENT AT NEW YORK C r o p C o n d itio n s W eather conditions during A ugust benefited the spring wheat, oats, and flaxseed crops, and the D epart ment of A gricu ltu re’s September 1 forecasts o f yields were larger than on A ugust 1. The corn crop, on the other hand, entered September with the lowest condition in 40 years, with three exceptions, and cool weather in the first half of the month delayed growth further. In this district the quality of the apple crop is far below normal as the result of wet weather, but hay, potatoes, and buckwheat promise good yields. The severe dry weather in many sections of the cotton belt between August 16 and September 16 resulted in a reduction o f 360,000 bales in the estimated yield, which at 12,600,000 bales promises to be one-quarter larger than the average harvest fo r the last three years. The follow ing table compares the August and September forecasts with the final harvest of last year. other hand, was steady, and prices o f rubber, wool, and bituminous coal showed further advances. The follow ing diagram shows the recent movements o f this ban k’s weekly index o f 20 basic commodities, com pared with those o f a similar index fo r Great Britain. PER CENT. JAN FEB MAR APR MAY JUN M . AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SCP OCT NOV O K 1923 (In millions) 1924 Crop Winter wheat....... Spring wheat........ All wheat.............. Corn...................... Oats....................... Potatoes................ Tobacco................ Hay....................... Cotton................... Apples................... Unit Bushel Pound Short ton Bale Bushel 1923 Harvest August 1 Forecast September 1 Forecast 589 225 814 2,576 1,439 480 589 247 836 2,513 1,486 488 1,195 89 572 213 785 3,046 1,300 509 1,491 89 179 197 1,202 89 13.0* 184 12.6* Wholesale Trade 10.1 * As of the 16th. Commodity Prices The tendency o f prices o f basic commodities, which was upw ard during the early summer, turned downward in the later part o f August and in September, and this bank’s weekly index o f the prices of 20 basic commodities reached on September 20 the lowest level in two years. This decline was due principally to a reduction in cotton prices to 2 2 % cents, the lowest in nearly two years and approximately 9 cents lower than at the end o f July. Follow ing the Government crop report issued on Sep tember 23, there was a recovery of about 4 cents. Corn prices likewise declined in September, so that notwithstanding some recovery late in the month prices on the 27th were approxim ately 10 cents below the August high point. Hogs and steers fluctuated irregu larly, but wheat prices advanced late in the month. Silk prices were somewhat lower, and copper declined below 13 cents fo r the first time in two months, while steel prices were generally lower, and petroleum declined nearly to the low levels of last winter. P ig iron, on the 1924 Price Indexes of 20 Basic Commodities in the United States and in England (1913 = 100 Per cent. Latest figures, September 20) Sales in August o f representative wholesale dealers in this district showed a further increase of 31 per cent, over July, or more than the usual seasonal advance, and this bank’s index o f sales, in which adjustment is made fo r price changes and seasonal variation, rose to 94 per cent, o f the com puted trend, com pared with 89 per cent, in July and 76 per cent, in June. Sales o f apparel showed particularly large increases, but remained smaller than the unusually large sales o f August a year ago. Diam ond sales, however, were in excess o f those o f last year, while silk sales were the largest fo r the month since 1919 and drug sales the largest fo r any August thus fa r reported. Trade in Dollar Value of August Sales (August 1923=100 Per cent.) Commodity (a) Cotton............................... (6) Silk..................................... (a) Men’s ................................. (b) Women’s dresses............... (c) Women’s coats and suits.. Machine tools.............................. Weighted Average................... 1920 1921 1922 1923 1924 90 92 59 93 87 85 89 93 95 100 100 100 100 100 107 100 105 95 m 189 187 ' mm 178 70 73 56 90 78 30 75 60 100 100 100 100 100 100 100 100 100 100 102 84 85 100 118 141 153 149 125 85 90 75 86 101 188 89 F86 122 94 93 95 99 86 76 69 86 102 96 77 114 93 90 90 89 82 76 86 86 68 71 72 MONTHLY REVIEW, OCTOBER 1, 1924 stationery and hardware, on. the other hand, continued Per cent. Per cent. Sales of each Dept, to Change in Sales of all Sales over August 1923 Departments the steady decline of recent months, and business in machine tools was again small. The table at the foot o f page 7 shows the detailed changes in the different lines as compared with August in previous years. The decline of 14 per cent, in the total as compared with last year is partly due to the fact that sales last year were unusually large. Chain Store Sales Total chain store sales in August were 11 per cent, greater than a year previous, due largely to the opening o f new stores. Sales per store averaged 4 per cent, smaller than a year ago, reflecting decreases at shoe, grocery, candy, and drug stores. A t dry goods and 10 cent stores, sales per store were larger than last year. The detailed comparisons are shown in the follow ing table. Number of Stores Dollar Value of August Sales (August 1923=100 Per cent.) Type of Store Per cent. Change in sales per store August 1923 to August 1924 Aug. 1923 Aug. 1924 1920 1921 1922 1923 1924 Dry goods......... Shoe.................... Ten cent............ Grocery............. Tobacco............. Candy................ Drug................... 543 302 1,817 15,998 2,754 190 312 622 371 1,975 18,903 2,797 204 316 75 102 74 80 95 78 92 75 89 76 70 94 81 89 78 90 85 82 94 83 92 100 100 100 100 100 100 100 121 115 112 111 102 102 98 + 6 .0 — 6.3 + 3 .4 — 6.0 + 0 .4 — 5.1 — 3 .4 Total.............. 21,916 25,188 80 75 84 100 111 — 3 .7 Hosiery................................................................................... Men’s and Boys’ wear........................................................ Women’s and Misses’ ready-to-wear accessories......... Cotton goods........................................................................ Shoes..................................................................................... Furniture............................................................................... Home furnishings................................................................. Woolen goods........................................................................ Silk goods.............................................................................. Women’s and Misses’ ready-to-wear.............................. Miscellaneous........................................................................ Outstanding orders fo r merchandise on September 1 showed the usual seasonal increase, but were considerably smaller than last year. The value o f stocks o f mer chandise on hand was the same as a year ago. This is the first time in nearly two years that stocks have failed to show an increase over the previous year. Mail order sales showed a slight increase over A ugust 1923. This bank’s index o f such sales, which allows fo r seasonal variation and price changes, was 81 per cent, o f the computed trend, or slightly lower than in July. The follow ing table shows the detailed comparative fig ures fo r department stores and mail order houses in August fo r the last five years. Net Sales during August (August 1923=100 Per cent.) All dept, stores..................... Mail order houses Sales of 63 leading department stores in this district were 7 per cent, smaller in August than a year previous. Stock on hand Sept. 1 (Sept. 1, 1923=100 Per cent.) 1920 1921 1922 1923 1924 1920 1921 1922 1923 1924 Elsewhere, 2d Dist................... Department Store Sales 3 .2 6 .5 14.6 4 .5 3 .4 12.5 15.2 1.8 3.8 7 .7 26.8 + 1.0 — 2 .4 — 3 .2 — 4 .6 — 4 .7 — 5 .7 — 5 .7 — 10.2 — 12.6 — 12.7 — 7 .8 88 94 97 98 96 117 94 84 85 89 91 95 87 98 87 80 90 108 86 78 91 90 90 101 80 93 93 84 91 100 89 100 99 100 100 103 87 100 96 100 96 100 94 100 90 100 79 100 92 115 117 91 122 97 150 112 143 108 123 106 107 98 93 83 93 115 103 93 93 89 91 98 89 105 95 89 100 100 100 92 100 101 100 107 100 103 100 103 100 98 100 101 92 100 100 M ILLIO N S OF DOLLARS A m ong the factors in this decline were one less selling day in August this year than last and reduced em ploy ment and wage earnings. Sales of Rochester stores av eraged slightly larger than a year ago, and Newark sales were within 1 per cent, of last y e a r’s volume. In other localities there were declines ranging from 4 to 13 per cent, in comparison with August 1923. W ith the exception of hosiery, all m ajor departments had smaller sales than a year ago. The reductions were largest in yard goods and w om en’s clothing, but furn i ture and home furnishings, shoes, m en’s clothing, and miscellaneous merchandise also showed reductions. The average transaction amounted to $2.54, compared with $2.65 last year. Sales and Stocks of Merchandise on Hand of Representative Department Stores in the Second District.