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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
Second Federal Reserve District
Federal Reserve Agent
Federal Reserve Bank, New York
Business Conditions in the United States
R O D U C TIO N o f basic commodities and em ploy
ment at industrial establishments declined in
July and there was a further decline in whole
sale prices. The distribution o f goods, as indicated by
railroad freight shipments, maintained record totals and
the sales of merchandise, though showing the usual
seasonal decline, continued to be relatively heavy.
P
September 1, 1923
Crop forecasts o f the Department o f A griculture on
the basis o f condition on August 1 indicated that yields
of wheat and rye would be below July estimates, while
larger yields o f cotton, corn, oats, and barley were fore
cast. Due to a seasonal increase in grain shipments and
continued large shipments of industrial raw materials
and manufactured goods, car loadings in the last week
o f July reached the largest total on record.
T rade
P roduction
Production in basic industries, according to the index
o f the Federal Reserve Board, declined 1 per cent, in
July. Mill consumption o f cotton, steel ingot produc
tion, and sugar meltings were considerably smaller than
in June. New building operations during the month,
as measured by the value o f permits granted and o f
contracts awarded, showed more than the usual seasonal
decline.
Employment at industrial establishments located in
various sections of the country decreased 2 per cent, dur
ing July. Manufacturers of automobile tires and cotton
goods showed large reductions in number o f employees.
There were some further announcements o f wage ad
vances, but these were not so numerous as in the three
previous months. Average weekly earnings o f factory
workers, due to a decrease in full time operations, were
3 per cent, less than in June.
The volume o f wholesale trade was about the same
in July as in June, while there was a decline in retail
trade which was largely seasonal in nature. Among
the wholesale lines, sales o f dry goods and clothing were
larger than in June, while sales o f groceries, hardware,
and shoes were considerably smaller. Business in all re
porting lines was larger than in July 1922, and the av
erage increase, as indicated by the Federal Reserve
B o a rd ’s index o f wholesale trade, was 13 per cent. Sales
o f department stores were 10 per cent, larger than a
year ago, while mail order sales showed a gain o f 27 per
cent. Stocks o f department stores showed a seasonal
reduction during July and were smaller than in any
month since January.
P rices
Wholesale commodity prices declined during July for
the third consecutive month and the index o f the Bureau
PER CENT.
Production in Basic Industries— Combination of 22 Individual
sexies corrected for seasonal variation (1919 average — 100
Per cent.)
Index of Wholesale Prices, U. S. Bureau of Labor Statistics
(1913 average=100 Per cent.)
2
MONTHLY REVIEW, SEPTEMBER 1, 1923
BILLIO NS
OF DOLLARS
BILLIONS
OF DOLLARS
Bank Credit— 800 Member Banks in Leading Cities
of Labor Statistics was 5 per cent, below the A p ril peak.
Prices of all groups of commodities, except house furnish
ings, were lower in July. The largest declines occurred
in quotations o f clothing, drugs and chemicals, farm
products, and building materials. D uring the first half
o f August price changes were more moderate and quota
tions o f cotton, spring wheat, hogs, sheep, and rubber
advanced.
B a n k C redit
Since the middle o f July the volume o f bank credit in
use has shown a reduction, largely because o f the sub
stantial liquidation o f loans on stocks and bonds at
New Y ork City banks. Between July 18 and August
15 loans of member banks in leading cities secured by
stocks and bonds decreased by $94,000,000 to the low
est point for the year, $258,000,000 below the amount
outstanding at the beginning o f the year.
Commercial loans, however, increased so that the net
reduction in total loans fo r the period amounted to $60,000,000. Security investments declined $73,000,000 to a
new low level fo r the year.
The volume of discounted paper held at the Federal
Reserve Banks showed a slight decrease, while their
holdings of acceptances and United States securities
reached new low points fo r the year. Between the m id
dle of J uly and the middle o f August gold holdings of
the Federal Reserve Banks increased by $21,100,000,
reflecting in part net gold imports during J uly o f $27,400,000. Federal Reserve note circulation increased by
about $15,000,000 and there were also substantial in
creases in the volume o f gold certificates and National
Bank notes in circulation.
Slightly firmer tendencies in money rates during the
month were reflected in a gradually increasing propor
tion o f commercial paper sales at 5*4 per cent., as com
pared with 5 per cent, in the previous month.
Bank Credit— All Federal Reserve Banks
Banking Conditions
D uring the fou r weeks ended August 15 deposits and
total loans and investments o f reporting member banks
in this district declined to new low points for the year.
Loans on stocks and bonds were reduced to the lowest
since early 1922, wT
hile security investments fell to near
the previous low points for this year reached in May.
The volume o f commercial borrowing, on the other
hand, increased.
The follow ing table comparing changes during the
past six weeks in member bank figures fo r this district
and for the country as a whole shows that approxi
mately two-thirds o f the decline that has taken place
in deposits and total loans and investments o f all re
porting banks has reflected liquidation o f investments
and loans on securities in this district. Commercial
borrowing in this district has been more actively sus
tained than for the rest o f the country.
(In millions of dollars)
2nd
District
Loans largely commercial...................................................
Loans on stocks and bonds...................................................
Investments............................................................................
Total loans and investments.........................................
Total deposits.................................................................
All
Districts
+ 24
- 228
46
-
-
— 352
- 380
250
282
21
229
102
Accom panying the decrease in member bank loans and
deposits, loans o f the Federal Reserve Bank o f New
Y ork on August 22 were slightly lower than on July
18, and were $93,000,000 lower than on July 3. Com
bined holdings o f bills and Government securities also
declined, and total earning assets decreased to $207,000,000, only slightly above the low point reached in
June.
FEDERAL RESERVE AGENT AT NEW YORK
Rate of Turnover of Bank Deposits
Money Rates
Reflecting decreases in certain phases of business
activity in the past few months the rate of turnover of
bank deposits during July was slower than for some
months past. The following table shows the index num
bers for principal cities as computed by this bank, after
allowance has been made for the usual seasonal varia
tion. The figures show the annual rate of turnover of
bank deposits. These figures in general reached their
highest points in March and April of this year and since
that time have tended to be somewhat smaller, as avail
able credit has not been used quite as actively.
Jan.
Feb.
Mar.
Apr.
M ay
June
July
78.3
24.7
24.4
8 4.8
28.9
26.1
86.6
22.8
8 8.4
27.8
26.3
23.3
25.5
29.3
7 .7
33.7
44.8
39.0
New York City
Albany..............
B uffalo..............
R ochester.........
Syracuse...........
B oston...............
C hicago.............
San F rancisco..
8 .7
38.0
50.3
4 0 .5
39.2
46.9
41.0
39.7
47.1
38.1
81.4
19.5
26.5
23.1
10.3
35.5
44.9
81.0
26.0
26.9
23.8
10.3
36.3
45.8
41.9
75.1
24.7
25.5
23.3
9 .9
32.8
43.7
38.8
21.6
22.0
10.8 10.0
4 0 .2
Savings Bank Deposits
Reports by representative savings banks in this dis
trict show a small reduction in deposits between July
10 and August 10. The reduction, however, was due to
the usual withdrawal of deposits following the crediting
of interest July 1, and was less than occurred at the
corresponding time a year ago.
Since 1918 the general trend of deposits in New York
City savings banks has been upward at the rate of more
than 8 per cent, a year, and in representative banks out
side New York City at an average rate of a little over 4
per cent, a year. The average rate of interest paid on
savings deposits in this district is in the neighborhood of
4 per cent, and hence a 4 per cent, increase each year
would be expected if no new deposits were received, but
the interest on old deposits was allowed to accumulate.
The relationship between the actual increases in de
posits for representative banks and steady increase at
the rate of 4 per cent, is shown in the following
diagram.
Seasonal requirements for credit in connection with
commercial transactions, offsetting liquidation in the
financial markets, resulted in a slightly firmer tendency
in money rates during August.
Prevailing rates for prime commercial paper rose
from 5 to 5y± per cent, in New York and other large
financial centers. During July there was a further de
cline in the volume of paper outstanding of 26 reporting
dealers from $867,000,000 to $835,000,000.
Bills were inactive, but unchanged as to rates which
remained 4y 8 to 414 per cent, on purchases by dealers
and 4 to 4y 8 per cent, on sales by them. Foreign de
mand continued to absorb an appreciable amount of the
moderate supply of new bills, which arose principally
out of import transactions.
There was practically no change in quoted prices for
Government certificates and notes, and the market for
these issues was quiet.
Stock market call loan renewals, after touching 6 per
cent, at the first of the month, dropped to 4 % per cent,
until after the 20th, when a firmer tone again became
manifest. Stock market time money rates were quoted
514 to 5y2 per cent., compared with 5 to 5*4 per cent,
in July.
Security Markets
Stock prices became firmer in August, and industrial
price averages by the 20th of the month gained about
5 points from the summer’s low point. Railroad stocks
were also stronger, but advanced less than industrials.
Trading continued generally light.
The following diagram, comparing representative in
dustrial stock prices in New York and London, shows
that the recent decline in American securities has been
followed at an interval of several months by a similar
decline in British securities. This movement has ac
companied lower commodity prices and hesitancy in
trade closely resembling developments in this country.
150
Is
r
145
*
140
H
Nf W YORK
J
C *TY * J T _
K
4
_ O U T S ID E
N .Y .C IT Y .^
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no
** ^
-
IO *
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m j)
ftq>or»fn nf 1 Hv g H
ft a in ?? ank* h
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wi
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York V [y a d 1 F v
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inga Banks iu the B tu District Outsit N
eeu J
eur fork Gity
3
Monthly Avcj:»a(' Prim* of 25 litdu
*ti<Jal Stocks at New i'otk
88 Industrial Stocks A koaslcm
t
4
MONTHLY REVIEW. SEPTEMBER 1, 1923
The bond market was generally quiet in August, and
except for foreign issues maintained a steady tone. For
nearly six months there has been little change in the
general level of United States Government and high
grade corporation bonds.
The volume of new financing was moderately large
for this season of the year, due to the offering of $20,000,000 three-year notes of the Swiss Government at a
price to yield 6 per cent., and $20,000,000 twenty-year
bonds of the Norwegian Government at a price to yield
over 6.30 per cent.
Foreign Exchange
The continued deadlock over reparations and further
collapse of the mark to a new low point of 9 cents per
million marks were presumably factors in carrying
French and Belgian exchanges during the first part of
August to new low points of 5.43 cents and 4.28 cents, 23
and 34 per cent, under levels prevailing in January be
fore the occupation of the Ruhr. There were later par
tial rallies to 5.69 and 4.51 cents respectivelv on August
21.
Sterling, after recovering during July to $4.60, again
displayed an easing tendency and touched $4.54%,
slightly under the previous low point for the year
reached July 5.
Foreign Trade
As the result of a decline of $36,000,000 in July in
the value of imports, and a continuation of exports at
about the same level as in June, the balance of trade
for July was in favor of the United States, after a period
of four months during which imports had exceeded ex
ports.
The import balance during the earlier months of the
year may be largely ascribed to heavy American pur
chases abroad of crude or semi-manufactured materials.
Manufactured goods formed less than 18 per cent, of
total imports for the first six months of the year, as
compared with 23 per cent, in 1922 and 1921.
Data just made available for the sources of imports
and the destination of exports in the fiscal year ended
June 30 show decreases during the year in the propor
tion of exports to the United Kingdom, Germany, and
Japan, and increases in the proportion shipped to a
number of the countries currently receiving smaller
amounts. The following diagrams show the destination
of exports and the sources of imports for the fiscal year
ended June 30, 1923.
EXPORTS
IMPORTS
Argentine, Spanish, and Indian exchanges continued
downward to new low points since 1922, while Brazilian
exchange sagged further to the lowest ever reached.
Canadian, Swiss, and Scandinavian rates tended firmer.
The following diagram indicates by months the move
ments of leading rates since 1919.
United States Exports and Imports of Merchandise in the Fiscal
Year 1922-23, by Countries of Destination and Origin
As compared with the situation before the war, the
United States is exporting somewhat smaller proportions
of her products to the United Kingdom, Germany and
Holland, and somewhat larger proportions to the Far
East and South America. In imports, also, there has
been a tendency for a greater scattering in the countries
from which imports are received.
Wholesale Commodity Prices
Depreciation of Foreign Exchange Kates from Par Value
Gold Movement
Imports of gold during July amounted to $27,930,000
m compared with $19,434,900 m June, Exports were
$523,000, For the seven months ended Jul* Hi net gqld
imports haw been 1137,000,000 m
with
O O O during tht eomBponding pwitfti ft year
O jO O
During the month of July there was a continued de
cline in the prices of lumber, pig iron, copper, wool, silk,
and a number of other commodities directly related to
industrial activity. There was an accompanying decline
in prices of many of the farm products including wheat
which fell to under one dollar during several days of
the month. Refleptijig these movements the Department
of Labor's index number of wholesale prices declined
1.3 per cent, in July to a level 5 per eerit. below the
maximum of last April, AH groups of commodities
contributed to the decline in July
household
furnishing^ which have ghown m i w ^ i o n since April
FEDERAL RESERVE AGENT AT NEW YORK
Fuel and lighting, building materials, and farm products
have declined furthest from their high points, while food
and house furnishings have declined least. The index
of prices of 20 basic commodities maintained by this
bank also declined during July to the lowest point since
September 1922, and was 12 per cent, lower than the
high point of last April.
In the early weeks of August there was some recovery
in the prices of wheat, corn, cotton, hogs and steers.
There were continued declines in a number of commodi
ties used in industry, but this bank’s index of basic
commodity prices advanced approximately to its posi
tion at the middle of July.
Prices abroad, except in the Scandinavian countries
and Germany, show a downward tendency.
Cost of Living
The cost of living advanced one per cent, during July
due to continued increases in the cost of food, shelter,
and clothing. The index compiled by the National In
dustrial Conference Board was 5 per cent, above the
low point of 1922 and 62 per cent, above 1914. Changes
in detail are as follows.
5
Employment and Wages
Due partly to seasonal influences, the number of fac
tory workers in New York State as reported to the
State Department of Labor decreased slightly in July
and was almost 3 per cent, under the March high point
for the year. In the United States as a whole, employ
ment decreased 2 per cent, in July, the first decrease
since April 1922, according to the Bureau of Labor Sta
tistics. The largest reduction in employment occurred
in the automobile tire industry where a decrease of 10.3
per cent, accompanied curtailment of production.
Confirmation of the reduction in the pressure for
workers in New York is found in figures from the New
York State Employment Offices which indicate that the
number of jobs open in July was 7 per cent, smaller,
than the number of applicants for work. The diagram
below, expressing orders for workers as a percentage of
applications for work, shows that the ratio of orders to.
applicants has decreased each month since April.
PER CENT.
(July 1914 = 100 Per cent.)
Per cent.
change
from June
Per cent,
change
from Low
Items
July
F o o d ....................................................
Shelter................................................
C lothing.............................................
+
+
+
-
Sundries.............................................
147
175
170
176
173
2.1
1.7
0 .6
1.1
0
+
5 .8
+ 6.1
+ 11.1
+
1.1
+
1.2
All Item s............................................
162
+
1.1
+
4 .9
The slow movement of the cost of living is in sharp
contrast to that of wholesale prices of basic commodities
as indicated by the accompanying diagram which com
pares the cost of living index of the National Industrial
Conference Board with the index for 20 basic commodi
ties prepared by this bank.
Percentage of Available Positions to Applicants for Positions,
New York State Employment Offices
The number of wage increases in industrial establish
ments throughout the United States, as reported by the
National Industrial Conference Board, totaled 77 in the
month ended August 14 compared with 137 in July and
287 in June.
P M CENT,
300
Z50
100
150
100
Changes it* the Prices of Bade Commodities! Compared with
Changes Itt the Cost of Living
Production in Basic Industries
For the second successive month, there was during
July a preponderance of basic industries showing de
creases in activity as compared with those showing in
creases.
Curtailment continued most marked in the cotton in
dustry, where mill consumption of cotton fell 80,600
bales to a point 15 per cent, below consumption in June
and 26 per cent, below consumption in March, the high
month this year. The index of cotton consumption stood
17 per cent, below the estimated normal for the month,
compared with 8 per cent, above in May.
In the steel industry, a further drop of 3,500 tons
in daily average ingot production caused a decline of
8 per cent, in the index of ingot output, Active blast
furnace capacity between July 1 and August- 1 de
creased 8,400 tons, but due to the faot that many fu?<
MONTHLY REVIEW, SEPTEMBER 1, 1923
naces did not blow out until towards the end of the
month pig iron production showed a smaller decline.
Unfilled orders of the United States Steel Corporation
decreased 7 per cent.
Anthracite coal mined, on the other hand, was slight
ly larger in July and since the first of the year has
amounted to nearly 60,000,000 tons, the largest ever
reported for the first seven months of the year. Output
of petroleum again increased, resulting in a further in
crease in stocks of crude petroleum and gasoline. Auto
mobile production was lower than in June, but the de
cline was less than is usual for the season when con
siderable production capacity is shifted from open to
closed car models.
The diagrams at the foot of this page compare recent
changes in production and prices of basic materials and
the table immediately following shows indexes of month
ly production computed by this bank in percentages
of an estimated normal allowing for seasonal variation
and year to year growth.
(Estimated Normal = 100 Per cent.)
1922
1923
July
Pig iron.......................................................... * .
.
Steel ingots........................................................
Bituminous co a l.................................................
Anthracite co a l...................................................
Copper, U. S. m ine..........................................
Tin deliveries....................................................
Petroleum ............................................................
Cotton consumption..........................................
W oolen mill a ctiv ity *.......................................
Wheat flour.........................................................
M eat slaughtered...............................................
Sugar meltings, U. S. Ports...........................
W ood p u lp ...........................................................
Paper, to ta l.........................................................
Lum ber.................................................................
Tobacco consum ption.......................................
C em ent.................................................................
Gasoline.
.....................................................
Z inc*.....................................................................
Leather, sole.....................................................
Automobile, passenger......................................
* Seasonal variation not allowed for.
r....
Mar. Apr.
M ay June
July
81
91
411
It
77
75
110
84
89
121
99
131
105
93
101
90
126
109
60
89
131
110
114
105
112
90
110
127
107
118
122
119
132
100
124
122
114
98
95
114
139
108
118
113
120
118
120
114
125
93
133
108
83
96
150
121
106
106p
100
102p
84
114
115
117
102
89
132
134
101
120
110
116
122
102
109
119
89
134
115
82
103
142
136
91
146
121
85
106
135
J Strike period,
122
114
109
98
98
92
139
96
113
107
111
79
' 83
122
70
123
128
111
75
93
159
135
75
lQlp
p Preliminary.
Indexes of Business Activity
The indexes of business activity, computed by this
bank, show that during July there was a diminution in
r
the volume of business in six instances, while in four
others there was increased activity. The number of
business failures declined.
A summary of these index numbers is shown in the
following table. In each case the figures are expressed
as percentages of the estimated normal and allowance
has been made for seasonal variations, year to year
growth, and, when necessary, for changes in prices.
(Estimated Norm al = 100 Per cent.)
1922
1923
July
Primary Distribution of Goods—
Car loadings, mdse, and m isc......................
Car loadings, other........................................
Wholesale trade, Second D is trict..............
E xports.............................................................
Im ports............................................................
Cereal exports................................................
General Business Activity—
Bank debits, outside N. Y. C i t y ...............
Bank debits, N. Y. C it y ..............................
Electric pow er................................................
Postal receipts................................................
Building permits............................................
Newspaper advertising............................... ..
Magazine advertising....................................
Business failures............................................
Mar. Apr.
M ay June
July
103
79
94
98
99
171
108
120
111
83
125
106
114
125
105
82
122
107
108
119
103
83
130
143
102
106
119
117
102
100
97p
90p
119© 108p
92
97
111
102
99
118
94
83
121
108
110
116
105
182
110
92
103
111
104
115
99
144
110
95
103
112
105
118
104
122
110
91
102
107
105
117p
102
114
99
98
99
99p
95
101
100
84
p Preliminary.
Building
Projects for new building construction in the United
States, represented by the value of permits granted in
158 cities, amounted to $198,222,000 in July or approxi
mately $40,000,000 less than in June. The decline was
general throughout the country and continued the down
ward movement evident since March. An index pre
pared by this bank, which allows for changes in cost of
construction as well as seasonal variations and annual
growth, show that in July the volume of building for
^s
20
0
1
«
' A
A
;
PRICES
j\
A i
A,r/A \ ,(
]0
j\
\/V
IV ARODUCTION
1
P!6 IRON
i
V .-—
PRICES
V
SUGAR
i
MLLW 5
H PUC
« OM
eltings
!
U
A '.
j
, D LAS
OL R
PRET P BRE
ECN, fR ARL
'M 2 0
0 ,0|
' I
A
' *'
PRices
..... \
A
r
1
./V ,
\
j
^SOD
UCTIONV
—o
y
-h
o
f; ^
t
J - -J
J
ft
1 * 1 ‘ '19*
9*
Slanthly Ohatips in Pfoduetkm flat! Friefes of Bttslu OommoditlsM, Production figures ate shdwtt as percentages of tbs output
normally to be cspected w
hen seasonal vwlfttteu and
\g p m growth m taken Into consideration
I t
FEDERAL RESERVE AGENT AT NEW YORK
which permits were issued was 99 per cent, of estimated
normal. This index has declined abruptly from 182,
the high point reached in March, and now for the first
time since August 1, 1921, is below estimated normal.
In 27 Northeastern States the value of contract
awards, which appears to follow the granting of permits
by some weeks, decreased further in July and at $274,000,000 was $100,000,000 below the May high point.
Building wages in principal cities remained in July at
the high level reached in June, but the cost of building
materials declined further. As a fesult, the cost of
construction index computed by this bank declined to
195 per cent, of 1913 average cost. As shown in the
following table, building wages are above the highest
point of 1920, but the price of building materials is 37
per cent, less than in 1920.
Building
Materials
1913 A vera g e... .
Maximum, 1920.
Low, 1922...........
April, 1923..........
M ay, 1923..........
June, 1923...........
July, 1923...........
Building
Wages
Total Cost
of Construction
100
100
100
300
155
204
202
194
190
195
179
194
199
203
203
254
165
Crops
In its August forecast, the Department of Agricul
ture estimates that the corn, oats, and cotton crops will
be larger than had been estimated in July, and the spring
and winter wheat crops will be smaller. The following
table compares the August forecasts of yields of the
principal crops with the July forecasts, and with the
December estimates for 1922, and a five-year average.
(In Millions)
1922
Crop
C otton .......................
T ob a cco....................
P otatoes....................
200
201
198
195
Railway Traffic
For four successive weeks in July and early August
car loadings of freight were larger than the previous
high weekly figure in October 1920. The increase in
loadings as compared with earlier months of this year was
due wholly to seasonal influences, and an index prepared
by this bank which allows for seasonal fluctuations as
well as annual growth shows that car loadings in July
were only 10 per cent, above estimated normal as com
pared with 13 per cent, in June and 18 per cent, in May.
A computation by the Bureau of Railway Economics
shows that the net operating income of Class 1 roads
during the half year was equal to 5.64 per cent, on
their minimum tentative valuation as fixed by the In
terstate Commerce Commission, as compared with 5.75,
the percentage set by the Commission as a fair return
on capital invested. This is the highest rate of earnings
since before the war. Southern roads earned 6.64 per
cent, on their valuation during the half year, while the
Eastern group earned 6.59 per cent., and the Western
4.20 per cent.
PER CENT.
Unit i
Bushel
Bushel
Bushel
Bale
Short ton
Pound
Bushel
Bushel
1917-1921
i Average
2,931
1,378
835
11.2
100
1,361
482
160
December
Estimate
2,891
1,201
862
9 .8
113
1,325
561
201
1923
July
Forecast
2,877
1,284
821
11.4
99
1,425
476
189
August
Forecast
2,982
1,316
793
11.5
97
1,474
473
188
Due partly to the reduced yield of wheat and lower
prices for wheat, cotton, and oats, the aggregate farm
value of 12 principal crops, computed at August 1
prices, was about $500,000,000 less than the value com
puted from July 1 estimates and prices, but about $500,000,000 larger than the farm value of last year’s crops.
Wholesale Trade
Wholesale trade in this district was somewhat more
active in July than in June. The index prepared by
this bank, in which allowance is made for seasonal varia
tions, price changes, and year to year growth, advanced
2.7 per cent, between June and July and in the latter
month was 2 per cent, above the estimated normal. The
course of the index in recent months is shown in a dia
gram on the following page.
The dollar value of sales in July was 21 per cent,
larger than in July last year. Sales of all commodities
were above those of last July, the largest gain being
recorded by machine tool dealers. Sales of clothing,
both men’s and women’s, were especially large during
the month. The smallest gain, 9 per cent., occurred
in sales of groceries.
Detailed figures are shown in the following table.
D O L L A R SALES D U R IN G JU LY
(In Percentages)
Comm odity
1919
1920
1921
1922
1923
Stationery.............................
D rugs.....................................
Groceries...............................
296
149
90
189
155
451
275
123
221
123
96
155
392
121
114
125
165
124
256
151
144
166
97
174
79
96
94
97
103
70
82
88
127
99
94
96
100
100
100
100
100
100
100
100
100
100
100
100
232
137
157
123
125
119
117
115
113
112
111
109
T otal (w eighted).............
153
153
98
100
121
Machine tools......................
(A) M en’s .........................
(B) W om en’s ...................
D ry good s ............................
Diam onds.............................
Jewelry..................................
Hardware..............................
Monthly Car Loadings of Merchandise and Miscellaneous
Freight and all other Car Loadings (coal, ore, grain, etc.) in
Percentages of Estimated Normal
$
MONTHLY REVIEW, SEPTEMBER 1, 1923
TJME5
P E R YEA R
PERCENT.
1919
Wholesale Trade in the Second Federal Reserve District Com
pared with Estimated Normal
19E0
1921
1922
1923
Annual Rate of Turnover of Stocks of Goods held by Depart
ment Stores, at Selling Price. Allowance is made for usual
seasonal variation
Department Store Business
Midsummer price reductions by department stores in
this district led to unusually large sales of silk goods,
furniture, and women’s ready to wear apparel.
Total dollar sales in July were 8.6 per cent, above
those of July a year ago, as compared with an increase
of 8.1 per cent, during the first six months of the cur
rent year. There was more irregularity in July sales
however. In previous months all departments showed
gains over the same month last year but recently sales
in some of the important sections of the stores have been
lower. These losses, however, were not large enough to
offset the increased sales in other departments. The
stores that report sales by major classifications showed
the following changes.
Per cent. Change in Sales,
July 1922 to July 1923
Silk G ood s...............................................................................
F urniture.................................................................................
W om en’s and Misses’ Heady to W ear............................
W om en’s Ready to Wear Accessories. .
........
House Furnishings................................................................
Shoes.............................................................
.............
W oolen G oods........................................................................
M en’s and B oys’ W ear........................................................
Hosiery..........................................
. ..
Cotton G ood s........................................................................
Miscellaneous.........................................................................
+ 2 4 .3
+ 17.4
+ 15.4
+ 11.1
+ 7 .4
+ 5.7
+ 1 .3
- 4 .4
— 5.9
— 6 .6
+ 3.1
The retail value of stock held by department stores
on August 1 was 5.8 per cent, larger than that held on
August 1 a year ago. The increase in stock has not been
as large, proportionately, as the increase in sales and
the stock turnover is more rapid. The following diagram
shows the fluctuations in the annual rate of stock turn
over each month for the past several years. The dia
gram may well be compared with the diagram at the
left showing wholesale trade.
A low rate of stock
turnover has usually been followed by reduced whole
sale buying and a high rate of turnover by increased
trade.
July sales of mail order houses were 28 per cent, above
those of July a year ago, a somewhat larger advance
than that recorded in June. Detailed figures are shown
in the following table.
D ollar S ales D uring July
(In Percentages)
1919
All Dept. Stores..
New Y o rk ........
B uffalo..............
Newra rk .............
R ochester.........
Syracuse. . . . . .
Bridgeport........
Elsewhere, 2nd
D istrict.........
Apparel Stores. . .
Mail Order Houses
1920
1921
Stock on H and A ugust 1
(In Percentages)
1922
1923
1919
1920
1921
1922
1923
86
84
92
91
93
111
101
124
123
121
134
155
164
121
101
99
99
101
108
121
101
100
100
100
100
100
100
100
106’
105
105
111
87
98
101
88
75
117
107
113
92
100
100
114
108
94
97
94
97
74
94
80
114
112
115
121
106
122
130
100
98
104
104
100
105
95
100
100
100
100
100
100
100
109
109
110
118
96
111
112
78
96
129
108
114
135
98
105
84
100
100
100
98
107
128
Chain Store Sales
July sales by chain store systems were larger than a
year ago because of the opening of new stores. Among
all types of chain systems, with the exception of ten
cent stores, average sales per store showed a loss this
year as compared with last.
N umber of
Stores
Per cent.
Change
in Sales
per Store,
July 1922
1923
to July 1923
N et Sales D uring J uly
(I n Percentages)
T ype of
Store
July
1922
Cigar..............
Shoe...............
1919
1920
1921
1922
11,300
373
1,761
275
2,549
210
14,393
449
1,813
312
2,759
249
75
61
70
88
77
87
118
97
91
107
108
121
86
102
86
100
101
102
100
100
100
100
100
100
122
120
114
105
100
97
16,468
G rocery.........
Apparel..........
Ten C en t. . . .
July
1923
19,975
74
108
89
100
116 |
_
—
+
—
—
“
4 4
0 .5
10.5
7 .8
7 .3
17.9
4 .1
Agricultural Credits Under Federal Reserve Act
The Federal Reserve Board has recently prepared
and published in the Federal Reserve Bulletin a sum
mary of the ways in which credit may be extended for
agricultural purposes under the provisions of the amend
ed Federal Reserve Act and the regulations issued by
the Federal Reserve Board. In view of the present
widespread interest in this subject extra copies of the
statement are being printed and may be secured by ad
dressing the Federal Reserve Agent, Federal Reserve
Bank of New York.
