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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 RO D U C TIO N o f basic commodities declined in August to the lowest level of the year but was considerably higher than during the summer of 1924. Distribution of goods at wholesale and retail continued in greater volume than a year ago. Seasonal growth in the demand fo r credit, arising partly from financing of the crop movement, was reflected in an increase in the volume of commercial borrowing. October 1, 1925 crop estimate was 13,931,000 bales com pared with a fore cast o f 13,740,000 bales on September 1. P P r o d u c t io n The Federal Reserve B oa rd ’s index o f production in basic industries, which is adjusted fo r seasonal varia tions, declined 4 per cent in August, but was 15 per cent higher than a year ago. Output of steel and of bitu minous and anthracite coal and activity in the woolen industry increased in August, while mill consumption o f cotton and the production of flour and lumber de creased. Em ploym ent and earnings o f factory workers were larger in August than in July, but continued smaller than in June. B uilding contracts awarded dur ing August, owing chiefly to large awards in New York, exceeded all previous records. Crop reports of the Department of A griculture at the beginning of September, as compared with forecasts a month earlier, indicated somewhat larger yields of spring wheat, oats, barley, hay, and tobacco, and smaller yields of corn and potatoes. The mid-September cotton *tRCEirr. T rade Wholesale trade was 5 per cent larger in A ugust than in July owing to seasonal increases in the sales of dry goods and shoes, and sales of all lines except groceries were greater than those in August 1924. Sales at department stores and at mail order houses showed less than the usual increases in August but continued in greater volume than last year. Stocks o f merchandise at department stores increased in A ugust and for the first time this year were considerably larger than in the corresponding month a year ago. Wholesale firms in all leading lines except drugs and hardware reported smaller stocks on A ugust 31 than a month earlier. Total freight car loadings were larger during August than in any month since last October. Coal shipments, preceding the anthracite strike, were especially heavy, less-than-carload-lot shipments continued to increase, and the movements o f livestock and grains were season ally greater than in July, although smaller than in August 1924. P r ic e s Wholesale prices showed a further slight advance in August and were near the high level reached in the spring of this year. Prices o f agricultural commodities, which in recent months have been above the average fo r all PEJ? CEKT. 1------------------------------- WHOLESALE PRICES 1^13 - 100 1922 Index o f 22 Basic Commodities Corrected for Seasonal Variation (1919 = 100 Per cent. Latest figure, A ugust.) 1923 1924 19Z5 Index o f U. S. Bureau o f Labor Statistics (1913 = 100 Per cent, base adopted by Bureau. Latest figure, A ugust.) MONTHLY REVIEW, OCTOBER I, 1925 PER CENT. BlLUOfOOfDOLLARS Index o f Factory Employment and Factory Payrolls in Manu facturing Industries. (1919 average = 100 Per cent. Latest figures, A ugust.) Member Bank Credit W eekly Figures for Member Banks in 101 Leading Cities. (Latest figures, September 16.) commodities, increased further, while prices o f other commodities declined slightly. Between the end o f August and the latter part of September prices o f bitu minous coal, p ig iron, rubber, and cotton advanced, and prices o f spring wheat, corn, raw sugar, and wool declined. The manner in which credit tendencies within the district have differed from those fo r the rest o f the country is indicated in the follow in g diagram, which compares total loans and investments and deposits of reporting banks fo r the Second D istrict and fo r the country except the Second District. In contrast with the decrease shown here since January, loans and in vestments o f outside reporting banks have increased by approxim ately $600,000,000, due chiefly to a rise o f over $400,000,000 in their loans secured by stocks and bonds. That banks in this district have failed to show any cor responding increase apparently reflects, in part, the loss o f gold early in the year through exports, and in part the tendency o f interior banks to convert New Y ork balances into street loans, which has had the effect o f reducing the volume o f funds which banks in this city have had to lend for their own account. B a n k C r e d it A t member banks in leading cities loans chiefly fo r commercial and agricultural purposes showed further seasonal increases during the first half o f September and at the middle of the month were about $275,000,000 higher than at the end o f July. Investment holdings remained in about the same volume as during previous months, but loans on securities increased and on Septem ber 16 were near the highest level of the year. A further growth in the total of Reserve Bank credit in use occurred during the five week period ended September 23. Member bank borrowings increased in the early part o f September, and after a temporary decline during the period of Treasury financing, increased to a larger total than at any time since the beginning of 1924. The seasonal growth in the demand fo r currency during August was reflected in an increase o f $65,000,000 in total money in circulation. Money rates showed a firmer tendency during the last week of August and the first three weeks o f September. The prevailing rate on prime commercial paper remained at 41/4 per cent but there was an increased proportion of sales at 4 ^ per cent. ........ — r .........— TO T A L LOAM5 & jS * INVE5TM ENTS Banking Conditions in the Second District The further growth during late August and early September in the total loans and investments o f report ing member banks throughout the country was not ac companied by any important increase for the reporting banks located in this district. W hile commercial loans shared in the general seasonal increase fo r the country, these advances were partly offset by a decline in invest ment security holdings, so that the level o f total loans and investments remained little changed at a point near ly $200,000,000 lower than at the beginning o f the year. - * T O T A L D E P O S ITS 6.5 X v y w / 5.51 APR- MAY JUN- . JU L AU&SEP- OCT NOV- DEC- JAN.- A L L R E P O R TIN G f B A N K S | SECOND D l‘ST. 1 L -_ L . J FEfr MAR APR- MAV JUH- JUL ALKr SIP. . 1924 1925 W eekly Figures for Reporting Member Banks in Second District and in All Other Districts Compared. (Latest figures, September 16) 3 FEDERAL RESERVE AGENT AT NEW Y O R K A t the Federal Reserve Bank of New Y ork Labor D ay requirements fo r currency were reflected by a sharp rise in discounts fo r member banks in the early part o f September to $260,000,000, a new high level for the year. A s customary at quarterly tax periods, Govern ment disbursements caused a sharp tem porary decline in loans after the 15th, from which there was a re covery as checks drawn in payment o f income taxes were presented at banks fo r collection. On September 26 discounts of approximately $200,000,000 stood mode rately above the levels of August, and $75,000,000 to $100,000,000 above the figures at the beginning o f the summer. H oldings o f bills and Government securities showed little net change during the month. Money Rates Except fo r several days of temporary ease after the Government disbursements on the 15th, money continued generally firm in September at rates equal to or slightly above those quoted in the latter part of August. Prim e commercial paper continued chiefly at 4% per cent, but some upward tendency was indicated by more frequent sales at 4 % per cent in September than in August. As New Y ork City banks were largely out o f the market, sales continued to be mainly in the interior. Supplies o f paper remained small and the amount out standing through 26 dealers at the end of A ugust de clined further from the low figure reached at the end o f July. Bills were in fair demand in September, but owing to a seasonal increase in the supply, dealers’ portfolios rose substantially from the low level of the year reached in the early part of the month. Follow ing the advance in rates late in A ugust quotations fo r 90-day bills remained unchanged at 3 % per cent on dealers’ pur chases o f bills and 3 per cent on bills offered by them. Yields on short term Treasury obligations declined moderately, but were steadier toward the close o f the month. The September offering of approximately $250,000,000 Treasury 9-months certificates of indebtedness, bearing interest at 3 1 4 per cent, com pared with 3 per cent on an issue of similar maturity offered last March, was heavily oversubscribed and subsequently offered in the open market at par. In the Stock Exchange money market, call loans were chiefly 4*4 per cent or higher, except fo r the period o f ease around the quarterly tax date, and toward the end o f the month the renewal rate touched 5 % per cent, highest since January 1924. Time money rates were also slightly firm er; at 4 % and 4 % per cent respectively fo r 60-90 days and 4-6 months maturities, rates were a fraction higher than at the end o f August. Security Markets Stock trading continued heavy in September’ and price averages o f industrial issues advanced 4 points higher than in A ugust and 25 points above the high levels o f 1919. Railw ay averages were also firmer, and again reached new high levels since 1917. In the bond market, corporation issues showed a fu r ther tendency to recover during the first part o f Sep tember, but became reactionary again toward the end of the month, when money conditions grew firmer, so that prices continued a point or so below the May and June high levels. United States Government issues moved irreg u la rly; the Liberty 3 % ’s declined to the low est point of the year and most other issues also showed considerable declines. A fter a seasonal decline in August the volume o f new securities issued again became large in September. Domestic issues were widely varied, while the foreign offerings were unusually heavy, including $70,000,000 Dominion o f Canada 1-year notes, $29,700,000 Argentine Government bonds, and the m ajor part o f a $25,000,000 German A gricultural Bank issue. D uring the eight months ended August 31 total domestic issues, exclu sive o f refunding loans, amounted to $3,426,000,000, or approximately 8 per cent more than in the correspond ing period o f last year, while foreign issues, exclusive o f the refunding loans, have exceeded last y e a r’s figures by 60 per cent. The follow ing table gives the compara tive figures fo r domestic and foreign issues during the first eight months o f the two years. (In millions of dollars) 8 months ended August 31 1924 1925 Corporate......................................................................... State and Municipal...................................................... Foreign............................................................................ 2,012 1,149 400 2,384 1,042 638 Total new capital.................................................. 3,561 4,064 Gold Movement Gold movements at the P ort of New Y ork during the first 28 days o f September showed a small excess o f ex ports, owing chiefly to demands from India and the Straits Settlements, which together took $3,800,000 out o f the total shipments o f about $4,460,000. A s imports amounted to only $520,000, the net loss fo r the period was approxim ately $3,940,000. D uring the latter part of the month, however, imports o f $2,000,000 were reported en route from Japan to this country. F or the month of August gold movements fo r the country resulted in imports o f $4,800,000, o f which $3,500,000 came from Canada. As exports were slightly more than $2,100,000, the net im port balance fo r the month was $2,700,000, com pared with $5,800,000 in July, and an export balance o f $2,300,000 in June. Foreign Exchange Sterling exchange was under pressure in September, presumably from seasonal offerings o f com modity bills, and declined to $4.84, compared with $4.86 at the high point reached in May. Since the reduction in the bank rate on August 6, the Bank o f England has reported steady withdrawals o f small amounts o f gold for export, chiefly fo r India and the Straits Settlements, notwith standing which the ban k’s gold on September 24 remained nearly £5,000,000 in excess o f that held when gold payments were resumed. MONTHLY REVIEW, OCTOBER 1, 1925 4 Follow ing spectacular advances in recent months to new high levels, both Danish and Norwegian exchanges reacted somewhat in September. Italian lire, on the other hand, rose above 4 cents upon the announcement of official measures taken to control exchanges. French and Belgian francs, together with other European cur rencies, showed little change. Among South Am erican exchanges Brazilian rates advanced further to new high levels since March 1921, and Argentine pesos were strong at close to par. The accom panying diagram shows by months recent ten dencies in leading exchange rates. _ A IMPORTS COM PUTED\ /\ TREND •JL___ ------------n ' > / S / EXPORTS ___ 1922. 1923 1924 1925 Merchandise Exports and Imports of the United States in Per centages of the Computed Trend. Seasonal Variation and Price Changes Allowed For. (Latest figures, A ugust) Public Debt Reduction After Two Wars Depreciation o f Foreign Exchange Rates from Par Value. (Latest figures, September.) Foreign Trade Both exports and imports of merchandise increased substantially in August, due in the case o f exports largely to seasonal increase in grain and raw cotton shipments. A t $383,000,000 exports were also 16 per cent larger than a year ago, while imports aggregating $375,000,000 were nearly 50 per cent larger, and have been equaled in only two months since 1920. Figures on grain and cotton shipments in August showed dollar amounts about the same as last year. In the case o f wheat and wheat flour, bushel figures showed a fallin g off of 44 per cent from last year, owing to the shorter crop, but this was partly offset in the dollar figures by the higher prices this year. F or cotton, the reverse was true, as larger quantity figures this year were offset by lower prices than prevailed a year ago. Fluctuations in this ban k ’s index of exports, together with changes in a similar index fo r imports, are shown in the follow ing diagram in percentages o f the com puted trend of past years, after allowance for seasonal variation and price changes. D uring recent years ex ports have tended to run rather consistently below the computed trend. Imports, on the other hand, have tended to run above, particularly during the past year, when increases apparently were due mainly to large imports o f raw materials for m anufacture such as hides, skins, wool, raw silk, and rubber. The Treasury final statement o f the public debt at the end o f the fiscal year, issued during the past month, indicates continued substantial progress during the past year in the reduction o f the debt. Comparison o f progress in debt reduction follow ing the Civil W ar and the W orld W ar shows a rate o f pay ment considerably faster during the past six years than that follow ing the Civil W ar. From the peak o f the interest bearing debt after the Civil W ar o f $2,381,530,000 reached in A ugust 1865, repayments during the six succeeding years amounted to $446,833,000, so that by June 30, 1871, approxim ately 19 per cent o f the debt had been redeemed. Corresponding figures after the W orld W ar indicated the high point o f debt to have been reached at $26,348,779,000 in A ugust 1919, almost a year after the Armistice, whence the reduction u p to 1925 amounted to 23.3 per cent. In part the more rapid reduction o f the W orld W ar debt reflects the application o f proceeds from salvage and liquidation o f other assets. The accom panying diagram gives the cumulative perC tNT. IOO------------------------------- ------------------------------------------- -— 75- 50- m&i9X> 18,67-1921 mrmz 186&-J9Z5 1870490* 18711925 Cumulative Percentages o f the Public Debt paid off each Fiscal Year for Six Years following the Peak o f Debt after the Civil W ar and W orld W ar. FEDERAL RESERVE AGENT AT NEW YO R K centage of the interest bearing public debt paid off at the end of each fiscal year fo r six years follow ing the peak of the debt after the two wars. The policy o f rapid redemption indicated at both periods is in keeping with the American tradition. Production Although the Federal Reserve B oard's composite index o f production declined in August, due chiefly to decreases in cotton consumption and flour milling, and in lumber production, output in a number o f basic in dustries showed upw ard tendencies, or was maintained at the high levels reached in previous months. P ig iron production showed only a slight increase, but output of steel ingots rose 11 per cent, and unfilled orders of the Steel Corporation showed the smallest decrease since the decline began in March. D u rin g September steel buying continued more active, due in large part to railroad orders, and several additional furnaces were put in blast. A sharp decrease of 133,000 cars in the production of passenger automobiles in August was due almost entirely to temporary production difficulties encountered by one o f the leading manufacturers. Other companies main tained heavy production schedules, and the output o f trucks was 30 per cent above a year ago. H igh p ro duction in September also was indicated by a rise in Detroit employment figures to a new high level fo r the year. Production o f bituminous coal in A ugust and early September reached the highest levels since January, though remaining somewhat below estimated-normal as measured by the trend of past years. Anthracite pro duction was exceptionally heavy in August in anticipa- 5 tion o f the strike, which resulted in a complete suspension o f operations after A ugust 31. In the textile industries, the further decline in cotton consumption carried the index to 78 per cent o f esti mated normal, the lowest since September last year. W oolen mill activity, on the other hand, turned upward, and activity in the silk industry continued exceptionally high. A m ong other industries cement production reached a new high level, and the output o f copper held close to estimated normal. In the case of lumber, the decrease in production follow ed several months o f unusually high output. The foregoing table gives this bank's indexes of production in percentages o f the com puted trend, after allowance fo r seasonal variation. Steel Production and Unfilled Orders D uring the past few years the tendency o f merchants to confine orders to near deliveries has been frequently commented upon. The accom panying diagram, com paring steel ingot production fo r the country and un filled orders o f the Steel Corporation in percentages of the 1913 average, reflects this tendency in the steel in dustry. Whereas unfilled orders in 1920 rose to an un usually high point as com pared with production, the reverse has been true in recent years. A t the end of August unfilled orders were near the lowest point for recent years and nearly 50 per cent below 1913, not withstanding an increase o f approxim ately 36 per cent in production over 1913 levels. In part, this low ratio of orders to production reflects prom pter deliveries, aided by greater transportation efficiency. W ft CENT. (Computed trend of past years =100 per cent) 1924 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............................................. Silk consumption*.................................... 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.................................... *=SeasonaI variation not allowed for. 1925 Aug. June July Aug. 58 74 74 100 84 97 126 97 63 74 126 94 72 93 84 94 88 102 99 98 129 114 84 81 128 110 76 118 83 89 92 105r 96 102 126 117 83 77 132 116 82 130 81 98 96 101 110 107 103 103 96 126 104 101 100 78 97 115 100 104 87 92 86 110 118 78 99 105 101 101 98 99 103 85 109 135 128 113 87 92 93 136 148 87 122 114 103 91 103 107 105 79 111 137 145 111 83 105 104 158r 169 lllr p = Preliminary. r= Revised. '78 83j> 131 '79 130 105 114 93 99 99 86 100 74 101 ios SI 99p 108p 95 96 90 Unfilled Orders o f the Steel Corporation and Production o f Steel Ingots by Months, in Percentages of the 1913 Average. (Latest figures, A ugust) Indexes of Business Activity Distribution o f goods and general business activity, as measured by this bank’s indexes, increased in August. The index o f bank debits fo r this district outside of New Y ork City reached a new high point fo r the year, and that fo r New Y ork City alone was the highest since May. Railway traffic in m anufactured products continued to show gains over all previous years, and loadings of M ONTHLY REVIEW, OCTOBEft 1, 1925 all other commodities combined remained above esti mated normal, notwithstanding a substantial decline in grain shipments from the high levels o f last year. F o r eign trade was also larger than in recent months, and active distribution o f goods at retail was indicated by an increase in department store sales above the com puted trend, and gains o f 17 and 20 per cent over a year ago in chain store and mail order sales. B uilding operations advanced further to exceptionally high levels, and factory employment was close to normal for this season. The follow ing table gives this ban k’s indexes o f busi ness activity in percentages o f the computed trend, with allowance fo r seasonal variation and, where necessary, for price changes. cent. Both in this district and fo r the rest o f the country, the main activity continues to be in residential construction, though commercial building also shows substantial gains over last year. (Computed trend of past years =100 per cent) 1924 Aug. 1925 June July Aug. 103 99 90 103 103 104 91 103p 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 Dist.... Chain store sales....................................... Mail order sales........................................ Life insurance paid for............................ Real estate transfers................................ Magazine advertising............................... Newspaper advertising............................ 93 96 98 92 84 116 101 100 94 99 115 76 96 88 122p 93 117 123 102 98 120 120 94 91 92 95 104 119 111 110 119 118 122 100 101 111 96 100 105 103 107 101 103 105 118 114 105 108 98 94 177 121 105 105 105 92 90 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....................................... 86 115 77 98 101 95 103 137 93 94 114 112 ioo 100 106 98 119 177 109 99 98 101 184 p = Preliminary Building Contrary to the usual seasonal tendency, building contracts rose in A ugust to the highest level ever reached, 66 per cent above the total of A ugust last year. W hile figures fo r the rest o f the country continued high, the increase was caused largely by increased activity in and around New Y ork City, where up to July 1 this y e a r’s building activity had been comparatively low. In New Y ork City contracts were 81 per cent above J uly and 162 per cent over August last year, apparently reflecting in part an effort o f builders to advance their projects as far as possible before the end of the year, when present wage agreements in New Y ork City will expire. In some trades demands fo r higher wages have already been filed. Despite the large increases of recent months, the total o f contracts awarded in this district since the first o f the year has been only slightly above last year, whereas for the country as a whole the increase has been 25 per Va lu e o f B uilding C ontracts A w arded in N ew Y o rk S ta te and N orthern N ew Jersey and in other R eporting S ta tes. (L a te s t figu res, A u g u s t .) Employment and Wages Factory employment increased slightly in A ugust fo r the first time since last spring. W hile in New Y ork State and fo r the country as a whole the increase was less than 1 per cent, the gains over last year amounted to 3 per cent and 8 per cent respectively. A ccord in g to State Em ploym ent Office reports the upw ard ten dency continued in September. The accom panying diagram com paring the ratio o f requests fo r workers to applicants fo r work at these offices shows a sharp rise recently to the highest levels since 1923. Increased employment within the district reflects the upward turn in manufacturing, seasonal requirements fo r fru it pickers and other farm labor, and increase in building activity. In cement and automobile estab- R atio o f W o r k e r s called for a t State E m p lo ym en t O ffices to A p plicants for W o r k . (L a te s t figure, Septem ber.) FEDERAL RESERVE AGENT AT NEW Y O R K Crops lishments employment has been particularly heavy for the season, shoe factories have been more active, and the steel industry, though em ploying few er workers than in the spring, has held far above last year. In railway equipment plants, on the other hand, employment has been the smallest in three years, and the number o f workers in woolen and worsted mills has shown only a moderate increase from June, the lowest point since 1921. A verage weekly earnings of factory workers in August amounted to $28.16, a slight increase over the previous month and near the highest levels reached in 1920 when earnings were the largest ever reported. E xcept fo r a cut of 10 per cent in wages of woolen workers there continued to be little change in the general level o f wage rates in the district. September crop reports fo r New Y ork State gener ally indicated an improvement over previous months. Yields o f corn, oats, and barley apparently w ill be larger than in recent years. Total indicated crops o f fruit, with the exception o f pears, are somewhat below the average, but the quality is reported much better than last year, so that aggregate marketable supplies are expected to compare favorably with previous years. F or the United States, the September report indicated a reduction since the A ugust report o f 65,000,000 bushels in the probable yield o f corn, due to drought, but an increase o f 21,000,000 bushels in the prospective output o f spring wheat. W hile the total wheat crop o f the country was forecast at 173,000,000 bushels below last year, the w orld crop is expected to be larger, due to larger crops in Canada and Europe. In the case o f cotton, the mid-September estimate of slightly over 13,900,000 bales indicates the largest crop since 1914. The follow ing table compares the prospec tive yields o f leading crops fo r the country with the final yields o f form er years. Business Profits Profits of 102 industrial corporations in the second quarter of this year were larger than in any other threemonths period in recent years. Telephone companies continued to show a steady expansion o f earnings, and railroad profits were larger than in the second quarter o f 1924, though slightly smaller than in the correspond ing period o f 1923. (In millions) Winter wheat................................ Spring wheat................................. All wheat....................................... Corn............................................... Oats................................................ Barley............................................. Rye................................................. Hay................................................ Potatoes......................................... Tobacco......................................... A ll types o f industrial concerns reported larger net earnings in the second quarter this year than last, but the increase was particularly marked in the case of automobile and accessory companies, whose profits for the first two quarters combined were as large as fo r the whole of last year. Other types of industrial companies which showed increases over a year ago fo r the half year, as well as for the second quarter, were concerns in the oil, food and food products, metal and mining, machine manufacturing, and miscellaneous groups. Due apparently to lower prices this year than last, profits in the steel industry were below those of the first half of 1924, notwithstanding the heavier production. Unit 1920-1924 Average Harvest 1924 Harvest 1925 Sept. Forecast Bushel Bushel Bushel Bushel Bushel Bushel Bushel Ton Bushel Pound Bale 592 245 837 2,935 1,328 182 70 107 418 1,331 11.0 590 283 873 2,437 1,542 188 63 112 455 1,241 13.6 416 284 700 2,885 1,462 222 52 94 344 1,247 13.9 Commodity Prices The general level o f wholesale prices remained little changed during September, according to this ban k ’s index o f 20 basic commodities, which stood at 155 per cent o f the 1913 average on September 26, compared with an average o f 156 for the month o f August. Due apparently to favorable reports o f foreign crops, September wheat at Chicago declined heavily to The follow ing table compares profits o f the various types o f corporations in the first half of this year with those o f the past two years. (Net profits in millions of dollars) 1923 Group No. of 3ra 4th 2nd Corpo 1st rations Quar. Quar. Quar. Quar. 1924 1st Half 2nd Half Motor & Motor Accessories........ Oil................................................. Steel.............................................. Food & Food Products................ Metal & Mining........................... Machine Manufacturing............. Miscellaneous............................... 17 13 14 13 15 11 19 38 18 27 12 10 4 8 47 22 47 13 11 6 8 30 16 43 12 10 5 9 20' 8 46 11 5 3 9 85 40 74 25 21 10 16 50 24 89 23 Total 7 groups............................. Telephone..................................... Class I R R ................................. 102 70 193 117 36 185 154 35 262 125 30 277 102 35 255 Totpl......................................... 365 338 451 432 392 Year 1st 2nd 3rd 4th Quar. Quar. Quar. Quar. 1925 1st Half 2nd Half Year 1st 2nd Quar. Quar. 1st Half 8 18 135 64 163 48 36 18 34 34 26 46 11 9 5 9 22 20 30 13 9 5 8 20 18 18 14 8 4 5 22 15 21 12 9 4 8 56 46 76 24 18 10 17 42 33 39 26 17 8 13 98 79 115 50 35 18 30 37 20 34 11 12 5 9 61 28 34 15 12 6 11 98 48 68 26 24 11 20 271 71 447 227 65 532 498 136 979 140 35 203 107 37 188 87 36 287 91 43 309 247 72 391 178 79 596 425 151 987 128 44 204 167 46 234 295 90 438 789 824 1,613 378 332 410 443 710 853 1,563 376 447 823 1j MONTHLY REVIEW, OCTOBER 1,1925 $1.35 a bushel, 24 cents below the level of the middle of August, while corn lost 27 cents to 77% cents during the same period. Other noteworthy declines included a reaction of % a cent in copper from the high point reached in the latter part of August and a decline in raw sugar to further new low levels since 1922. Offsetting these decreases, however, was a rise in cattle prices to new high levels fo r the year, strength in hogs late in the month, and a firmer tendency in coal and pig iron. Cotton was particularly strong early in the month, but reacted to somewhat under 24 cents follow ing the larger crop estimate on September 16. ance is made for the seasonal variation, year to year growth, and price changes, indicated sales 2y2 per cent above the estimated normal. A pparel store sales showed a moderate increase over August 1924, and mail order sales throughout the country were 20 per cent larger than a year ago. Compared with the increase o f 10 per cent in sales, department store stocks o f merchandise increased only 3Y2 per cent over last year, so that the ratio of sales to average stock on hand during the month was nearly 6 per cent higher in August this year than last. W h o le s a le T r a d e Aggregate sales o f leading wholesale dealers in this district increased substantially from July to August, due chiefly to large seasonal gains in sales of clothing, and 12 out o f 15 reporting lines reported increases over August a year ago ranging from 1 % to 35 per cent. Increases over last year in sales were particularly large in diamonds, machine tools, shoes, and m en ’s cloth ing. Sales o f silk goods continued to show a substantial gain, but the margin over last year was considerably smaller than in preceding months. Sales of cotton goods by commission houses, on the other hand, dropped below those o f a year ago, business in drugs continued smaller than last year, and sales of groceries again fell below 1924 after showing increases in June and July. Stocks on hand in wholesale grocery houses fell slight ly below a year previous for the first time this year, and those o f cotton goods and hardware merchants were likewise below last year. Stocks of shoes and jew elry and diamonds continued to show increases, and silk goods recorded an increase over the year previous for the first time since last fall. Net Sales Percentage Change Stock at end of month Percentage Change Commodity Aug. 1925 Aug. 1925 Aug. 1925 Aug. 1925 from from from from July 1925 Aug. 1924 July 1925 Aug. 1924 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. — 10.9 +90.8 +74.1 +111.5 + 1.7 + 1.3 +12.3 +19.3 — 14.4 — 5.6 —20.0 — 5.5 +13.0 + 2.3 + 1.5 + 2.9 — 4.2 +10.2 +13.9 — 14.3 + 2.9 +30.0 — 0.5 + 5.9 +13.2 +31.7 + 8.2 +21.8 + 3.2 + 7.2 +35.4 + 6.0 + 3 .7 — 0 .4 — 1 9 .0 — 1 5 .4 + 3! 2* — 9 .4 + 8 .4 * + 2 4 .5 + — 1 2 .8 1 .8 \ + 2 .6 j- + 2 .2 *Stock at first of month— quantity not value D e p a rtm e n t S to re T ra d e Sales of 75 leading department stores in this district averaged 10 per cent larger in August than a year pre vious, the largest increase since last September. This bank’s index o f department store trade, in which allow- Net Stock on Hand Percentage Change Percentage Change August 1925 August 31, 1925 from from August 31, 1924 August 1924 +10.8 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.............. - 1.9 -1 6 .7 - 6.0 +11.1 - 1 1 .3 + 5.2 — 8.0 + 5.9 + 0.1 + 3.7 - 3.1 -6 0 + + + 0.4 1.7 4.7 4.0 + 22.4 + 5.9 + 3.0 All department stores................ + 9.8 + 3.5 Apparel stores............................ Mail order houses...................... + 4.5 + 20.4 + 0.5 Sporting goods and books and stationery continued to show the largest increases in sales. Furniture sales were also substantially larger this year than last, and consid erably increased business was reported in home fu r nishings, w om en’s apparel, m en ’s furnishings, yard goods, hosiery, and shoes. In the case o f luggage and leather goods, sales, while larger than last year, showed much smaller gains than have appeared in recent months. The average amount o f individual sales transactions was $2.62, compared with $2.44 a year previous, an increase o f more than 7 per cent. Stock on Hand Net Sales Percentage Change Percentage Change August 31, 1925 August 1925 from from August 1924 August 31, 1924 Toys and sporting goods........................ Books and stationery............................. Men’s furnishings................................... Women’s and Misses’ ready-to-wear. . . Linens and handkerchiefs....................... Silks and velvets..................................... Silverware and jewelry........................... Toilet articles and drugs........................ Home furnishings.................................... Hosiery..................................................... Musical instruments and radio.............. Women’s ready-to-wear accessories. . . . Luggage and other leather goods.......... Men’s and Boys’ wear............................ i +41.0 +19.7 +19.6 +18.5 +16.7 +16.7 +16.5 +13.2 +13.2 +13.1 +12.6 +12.0 +11.6 + 9.1 + 6.0 + 5.5 + 5.1 + 4.4 — 1.7 + 0.9 + 2.1 — 2.3 + 6.2 + 3.0 + 2.2 + 2.3 — 0.6 — 5.1 +11.6 — 3.2 +14.6 + 6.8 — 1.5 — 0.7 + 4.8 + 7.9 + 11.4 — 2.8
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