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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, wThile 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. New York City Albany.............. B uffalo.............. R ochester......... Syracuse........... B oston............... C hicago............. San F rancisco.. Jan. Feb. Mar. Apr. M ay June July 78.3 24.7 24.4 8 4.8 28.9 26.1 86.6 25.5 29.3 7 .7 33.7 44.8 39.0 22.8 8 8.4 27.8 26.3 23.3 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 .^ .. ^ H no ** ^ - IOC* . . . . m j) ftq>or»fn nf 1ft Having?? Hank* hi wi ' York V-\[y ar*d 15 Ftev- inga Banks iu the BeeutuJ District Outsit Neur fork Gity 3 Monthly Avcj:»a(' Prim* of 25 litdu*ti<Jal Stocks at New i'otk 88 Industrial Stocks At koaslcm 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 OOOjOOO during tht eomBponding pwitfti ft year 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 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.... 1923 July 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 wras a diminution in 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 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............................................ 1923 July 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^s that in July the volume of building for 200 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« POUM C eltings ! U A '. j , DOLLARS PERCENT, PfRBARREL 'M0 2,00| ' I A ' *' PRices ..... \ A ./V , j r \ 1 ^SODUCTIONV —yo -ho ft; ^ J - -J J ft 19**1 ‘ '19* Slanthly Ohatips in Pfoduetkm flat! Friefes of Bttslu OommoditlsM, Production figures ate shdwtt as percentages of tbs output normally to be cspected when 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. 1913 A vera g e... . Maximum, 1920. Low, 1922........... April, 1923.......... M ay, 1923.......... June, 1923........... July, 1923........... Building Materials 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 T ype of Store G rocery......... Apparel.......... Ten C en t. . . . Cigar.............. Shoe............... Per cent. Change in Sales per Store, July 1922 1923 to July 1923 N et Sales D uring J uly (I n Percentages) July 1922 July 1923 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 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.