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MONTHLY REVIEW o f C r e d it a n d B u s in e s s C o n d it io n s S e c o n d Federal Reserve Agent F e d e r a l R e s e r v e September 1 , 1924 Federal Reserve Bank, New York T rade B u s in e s s C o n d i t io n s in t h e U n i t e d S t a t e s R O D U C TIO N in basic industries, after a consider able decline in recent months, was maintained in July at the same level as in June. Factory em ployment continued to decline. Wholesale prices increased fo r the first time since early in the year, reflect ing chiefly the advance in the prices of farm products. P P ro ductio n The Federal Reserve B oa rd ’s index of production in basic industries, which had declined 22 per cent, be tween February and June, remained practically un changed during July. Iron and steel and woolen indus tries showed further curtailment, while production o f flour, cement, coal, and copper was larger than in June. F actory employment decreased 4 per cent, in July owing to further reduction of forces in the textile, metal, and automobile industries. B uilding contract awards showed more than the usual seasonal decline in July, but were 10 per cent, larger than a year ago. Crop conditions, as reported by the Department of Agriculture, were higher on A ugust 1 than a month earlier. Estimated production of nearly all of the p rin cipal crops except tobacco was larger than in J uly and the yields of wheat, oats, rye, and cotton are expected to be considerably larger than last year. PERCENT. Index of 22 Basic Commodities corrected for seasonal variation (1919 = 100 Per cent. Latest figure July) D is t r ic t Railroad shipments increased in July owing to larger loadings o f miscellaneous merchandise, grain, and coal. Wholesale trade was 3 per cent, larger than in June, owing to increased sales o f meat, dry goods, and drugs, but was 3 per cent, smaller than a year ago. Retail trade showed the usual seasonal decline in July, and department store sales were one per cent, greater and mail order sales 7 per cent, less than a year ago. Mer chandise stocks at department stores continued to decline during July and were only slightly larger at the end o f the month than a year earlier. P rices Wholesale prices, as measured by the index o f the Bureau o f Labor Statistics, increased more than one per cent, in July. Prices o f farm products, foods, and clothing increased, while prices o f building materials again declined sharply, and prices o f metals, fuel, and house furnishings also decreased. D uring the first half o f August quotations on corn, beef, sugar, silk, copper, rubber, and anthracite advanced, while prices of cotton, flour, and bricks declined. B a n k C redit Commercial loans o f member banks in leading cities, owing partly to seasonal influences, increased consider ably early in August. Loans secured by stocks and PER CENT. Index of U. S. Bureau of Labor Statistics (1913 = 100 Per cent, base adopted by Bureau. Latest figure July) MONTHLY REVIEW, SEPTEMBER 1,1924 8ILUON5 OF DOLLARS Member Bank Credit— Weekly Figures for 750 Member Banks in 101 Leading Cities (Latest figures August 13) bonds and investments continued to increase, so that at the middle of August total loans and investments o f those banks were larger than at any previous time. F u r ther growth o f demand deposits carried them also to the highest level on record. Between the middle of July and the middle o f August, Federal Reserve Bank discounts fo r member banks de clined further and their holdings of acceptances de creased somewhat. United States security holdings increased, however, and total earning assets o f Federal Reserve Banks remained practically unchanged. Continued easing in money rates in the New Y ork market during July and early in A ugust is indicated by a decline of % of one per cent, in prevailing rates fo r commercial paper to S-31/^ per cent. A fte r the middle of August there was some advance in open market rates for bankers acceptances and short term Government securities. D uring August the discount rate at the Federal Reserve Bank of New Y ork was reduced from 3 % to 3 per cent, and at the Federal R e serve Banks of Cleveland and San Francisco from 4 to 3*/2 per cent. B a n k in g C o n d it io n s in t h e S e c o n d D i s t r i c t D uring the fou r weeks ended August 13 the expan sion of bank credit in this district continued at a rapid pace. The total loans and investments o f the weekly reporting member banks in principal cities rose an addi tional $166,000,000 and exceeded the highest point reached in 1919, while total deposits increased by a nearly equal amount and likewise reached levels higher than ever before. A s in the preceding months, these increases reflected chiefly further advances in investments and in loans on stocks and bonds. Loans made largely fo r commercial purposes, however, showed some upward tendency early in August, accom panying other evidences o f somewhat more active business conditions within the district. Both in this district and elsewhere the expansion o f bank credit has occurred chiefly in the financial centers, and particularly in New Y ork City. The accom panying diagram shows the degree o f expansion since March this year in the loans and deposits of the reporting member banks in leading cities throughout the country, and indicates that about $700,000,000 of the increase in loans and $900,000,000 o f the increase in deposits occurred in the New Y ork City banks alone. BILLIONS BILLIONS OFDOLLARS OFDOLLARS Total Loans and Investments and Total Deposits of 750 Re porting Member Banks in Prin cipal Cities in the United States (Latest figures August) 13) Total Loans and Investments and Total Deposits of 67 Re porting Member Banks in New York City (Latest figures August 13) The cause o f these increases in loans and deposits o f New Y ork City banks may be foun d in a movement o f funds from the interior, the return o f currency from circulation resulting from reduced business activity, and continued gold im ports (though in smaller amounts than form erly ). The effect o f these movements on the volume of credit has been accentuated by the fact that the New Y ork banks have largely extinguished their indebtedness at the Reserve Bank and any addi tional funds received may be added to their reserve balances and form a basis fo r increased loans and investments. The follow in g table, giving a rough balance sheet of changes from the middle o f July to the middle FEDERAL RESERVE AGENT AT NEW YORK of August and since March 5, in the m ajor resource and liability items of reporting member banks in this city, reflects the increases that have taken place in reserve balances, despite declines in rediscounts and bills pay able, and indicates the character of the expansion of loans and deposits. (In millions of dollars) Reporting Member Banks in New York City July 16 to Aug. 13 Resources: March 5 to Aug. 13 Loans on stocks and bonds. . All other loans (commercial). Investments.............................. + 57 + 43 + 51 — 11 Total loans and investments............. Balances at Federal Reserve Banks. Due from banks.................................... Cash........................................................ +151 + 16 — 3 + 683 +151 + 1 + 21 0 +165 +855 Net demand deposits. Time deposits.............. Government deposits. +120 + 34 0 +776 +118 — 17 Total deposits............................ Bills payable and rediscounts. +154 +877 — 29 Total (selected items only) x +149 +848 Total (selected items only) . Liabilities: +372 +322 1 The difference between this total and total resources may be accounted for by changes in items not reported and the fact that net demand deposits as re ported do not include all “ due to banks,” which have increased 56 millions since July 16 and 302 millions since March 5. D uring the greater part o f the past month the volume o f member bank borrow ing from the Federal Reserve Bank of New Y ork continued to decline, and on August 20 reached a new low point since 1917. A t the same time, member bank reserve balances continued to in crease and on August 13 reached levels higher than ever before. In the latter part of the month, however, a change occurred in the direction of certain of these movements. Accom panying some increase in general business activity and enlarged seasonal demands from agricultural sections, there was a movement of funds out o f this district, resulting in a decrease in member bank reserves and an increase in the volume of borrowing from the Reserve Bank. S a v in g s B a n k D e p o s it s Deposits of representative savings banks in this dis trict decreased slightly between July 10 and August 10, due to withdrawals follow ing the crediting of semi annual interest, but were above the average fo r the first quarter of the year, notwithstanding recessions in busi ness activity in recent months. The accom panying dia gram shows the growth o f deposits since 1918 in New Y ork City and elsewhere in the district, together with the increase which would have taken place if no new deposits had been made but the interest on old deposits left to accumulate at an annual rate of 4 per cent. F or banks outside of New Y ork City the increase since March has been somewhat below the 4 per cent, rate, whereas fo r New Y ork City banks the increase has been considerably in excess o f this rate. Deposits of 15 Savings Banks in New York City and 15 Savings Banks in the Second District Outside New York City. (Average Deposits in 1918 = 100 Per cent. Latest figures August 10 ) M o n e y M a rk e ts The easy money conditions o f July continued during the first two weeks o f August, but after the middle o f the month the money market became slightly firmer, reflecting seasonal requirements fo r credit fo r commer cial purposes, increased demand from the financial mar kets, and some tendency fo r funds to move from New Y ork to the interior. A n inactive demand fo r bankers bills, together with an increase in the supply resulting from a partial liqui dation by banks o f their holdings, led to a moderate in crease in dealers’ portfolios, and rates on 90 day bills were generally raised % o f one per cent, to 2 % per cent, on purchases by dealers and 2*4 on sales by them. Yields on short Treasury securities also tended upward, par ticularly on issues m aturing in 10-12 months. The open market rate on prime commercial paper de clined early in A ugust an additional *4 o f one per cent, to 3-31/4 per cent., as the result o f active buying by banks in New Y ork and other large centers. Later in the month the undertone became slightly firmer. The total volume of paper outstanding through 26 reporting deal ers increased slightly in July to $879,000,000. Time money rates on stock exchange collateral, after declining slightly early in August reverted to approxi mately the average level o f July, which was 2% -3 per cent, fo r 60-90 day loans and 314-3% per cent, fo r four to six months maturities. The rate on call money re mained 2 per cent. S e c u r it y M a r k e t s Easy money conditions during the greater part of August were accompanied by continued activity and strength in the bond market. Nearly all the active Government issues reached new high prices, and foreign bonds were conspicuously strong and active, reflecting a more favorable prospect fo r the adoption o f the Dawes plan in Europe. In many cases prices in this group reached new high levels since the date o f issuance. Late in the month as money conditions grew firmer there MONTHLY REVIEW, SEPTEMBER 1, 1924 4 were reactions of % to over a fu ll point in Government issues and corporation bond averages. The extent to which bank buying has been a factor in higher bond prices this year is indicated by a rise o f nearly $600,000,000 since the March low point o f the year in the security investments of the weekly reporting member banks. The accom panying diagram com paring the changes in the Government security holdings of these banks by months fo r recent years, indicates that in this group at least the increases in holdings in past months have been in long term bonds, as holdings o f short term securities have declined to the lowest since 1922. D u r ing this period, the amounts both o f long term and short term Treasury issues outstanding have been reduced, but the reductions have been larger in the short term issues. Furthermore, since the end of last year, the holdings o f Treasury short term issues by the Reserve Banks have considerably increased. BILLION 5 OF DOLLARS 2.5 ----------------------------------------------------- ------------------------------------ Z largest thus far reported. A s in the previous months the larger net receipts were due chiefly to smaller ship ments to central and eastern Europe, where currency reforms have been in progress, and to larger receipts from Germany, H olland, England, and Switzerland. The follow ing table gives the detailed figures by months. Net Shipments Shipments Receipts $3,645,000 $2,910,000 1.374.000 1.463.000 2.074.000 2.601.000 5.206.000 6.969.000 9.234.000 $4,320,000 5,526,000 21,000 July................... 5.694.000 6.989.000 2.095.000 940.000 292.000 681.000 199,000 Total (1924). $16,890,000 $28,921,000 $9,867,000 1923 May to Dec. (monthly av.) 1924 Feb.................... Net Receipts $1,661,000 4.914.000 6.288.000 9,035,000 $21,898,000 In addition to direct shipments since May 1923, banks in this district have forw arded $32,000,000 to Cuba by wire transfer through this bank and the Reserve Banks of Boston and Atlanta. O f this amount $17,000,000 has been forw arded this year. F o r e ig n E x c h a n g e 1.5 X 5 0 19 19 19 2 0 19 2.1 19 2 2 19 23 19 2 4 Holdings of United States Bonds and S>hort Term Certificates and Notes of 750 Reporting Member Banks in Principal Cities Throughout the Country (Latest figures August 13) The volume of new security issues was exceptionally large in August. Offerings included a large railway re funding loan and several important foreign issues in addition to a variety of smaller industrial and public utility issues. Since the first o f the year issues involv ing new capital have continued to be substantially larger than last year, due mainly to larger flotations o f com mon stocks, foreign bonds, and bonds o f domestic States and municipalities. In the stock market trading continued generally active and prices advanced to new high levels fo r the year. Railroad price averages rose above the 1922 high levels, which were the highest for recent years, while indus trial stock averages reached the highest levels since A p ril 1920. Later in the month there was some reaction from these levels. F o r e ig n S h ip m e n t s o f U n it e d S t a t e s C u r r e n c y The return flow o f United States currency from circu lation abroad continued to increase in July, when net receipts of $9,035,000 by banks in this district were the Progress of negotiations at the London Conference o f A llied and German representatives on the Dawes plan was presumably an important factor in a further rise of nearly 16 cents in sterling exchange early in A ugust to $4.57, a new high level fo r the year. French and Belgian francs also advanced substantially and at 5.74 and 5.25 cents respectively were the highest in three months. Follow ing the conclusion o f the conference, sterling and fr&ncs lost about one-third o f the advances previously made in the month. The Canadian dollar in August reached par fo r the first time since 1922. Dutch and Swiss exchanges also advanced considerably in August, and other European exchanges were generally little changed, or somewhat firmer. Brazilian quotations fluctuated irregularly, according to reports o f internal political conditions. A m ong the far eastern exchanges Indian rupees ad vanced over 2*4 cents to the highest since January 1923, apparently reflecting increased export trade and higher prices for silver. Chinese rates were also higher, while Japanese yen continued com paratively steady at about 3 cents above the A p ril low point. G o ld M o v e m e n t The decline in the volume of gold imports which began in June continued in July. The total of $19,000,000 fo r the month was the smallest since A p ril last year and less than half the average o f the first five months of this year, and at the P ort o f New Y ork imports in the first twenty-seven days o f August were at about the same rate as in July. Gold exports in July totaled only $327,000. The decline in gold imports accompanied a larger volume of foreign issues sold in this market, a decline in FEDERAL RESERVE AGENT AT NEW YORK the export trade balance of the United States, and larger competition by India in the London market fo r South A frican gold. D uring recent months imports to this country from E ngland have declined from around $20,000,000 monthly to about $13,000,000. The accom panying table shows the total gold imports and exports o f this country fo r the first seven months of the year. Month Imports Exports Excess of Imports January....................................... February..................................... March......................................... April............................................ May............................................. June............................................. July............................................. $45,135,760 35,111,269 34,322,375 45,418,115 41,073,650 25,181,117 18,834,423 $ 280,723 505,135 817,374 1,390,537 593,290 268,015 327,178 $44,855,037 34,606,134 33,505,001 44,027,578 40,480,360 24,913,102 18,507,245 Total..................................... 245,076,709 4,182,252 240,894,457 5 MILLIONS OF DOLLARS S ilv e r E x p o r t s D uring the first seven months of this year exports of silver from this country have exceeded imports by $19,000,000, compared with excess imports o f nearly $8,000,000 in the same period o f 1923 and over $3,000,000 in 1922. This reversal of the silver move ment accompanies larger requirements fo r settling trade balances with India, whose export trade, particularly in cotton, has been unusually large, and reflects also a revival of the demand fo r silver from Poland, Germany, and other European countries in connection with their recoinage programs. Recent instances of substantial purchases by foreign governments in this market were an order in June for 6,400,000 ounces of silver by the Polish Government, to be coined in this country, and an order by the German Government in A ugust fo r 4,000,000 ounces. The prices of bar silver in New York, which, since the cessation of purchases by the Treasury under the P itt man A ct, have been holding at about 64 cents, have advanced in the past three months to above 69 cents, the highest since October 1922. M o n t h ly Im p o r ts a n d E x p o r t s o f M e r c h a n d is e o f th e U n it e d S ta te s ( L a t e s t fig u re s J u l y ) Building A further reduction o f about one-tenth occurred in July in new building construction, measured by the F. W . Dodge C orporation’s reports o f building contracts awarded in 36 States. The decline reflected chiefly smaller totals in New Y ork City, where earlier in the year an unusually large amount o f new construction was begun, and decreases also in mid-western sections and in New England. Notwithstanding the decline from June, however, J uly contracts both in this district and in all reporting districts continued to be larger than a year ago. The accom panying diagram compares the monthly contract figures o f this year with last year, and indicates that, except fo r M ay in the case o f all reporting districts, the figures consistently have run higher than last year, although the margin of increase has been smaller in recent months. MILLIO NS OF DOLLARS F o r e ig n T r a d e A further decline of $29,000,000 in the value o f mer chandise exports in J uly reduced the total fo r the month to $278,000,000, the smallest, with the exception o f the first two months o f 1922, since August 1915. Imports increased slightly to $278,400,000, so that there was a small import balance fo r the first time since June 1923. The diagram which follows shows the recent changes in foreign trade and compares these with the previous figures since 1914. The decline in exports in July was due principally to decrease of $18,000,000 in shipments o f manufactures ready fo r consumption. Cotton imports likewise declined both in quantity and value, while grain shipments de creased about $4,000,000 to the smallest total, excepting May 1924, in recent years. D uring the early weeks o f August there was a seasonal increase in grain ship ments, but cotton exports showed a further decline. V a lu e o f B u ild in g C o n tr a c ts A w a r d e d in 36 S ta te s a n d in N e w Y o r k S t a t e a n d N o r t h e r n N e w J e r s e y ( L a t e s t fig u re s J u l y ) MONTHLY REVIEW, SEPTEMBER 1,1924 6 P ro d u ctio n I n d e x e s o f B u s in e s s A c t i v i t y The decline in industrial activity generally in progress since M arch came to a pause in July, and in some indus tries production showed an upw ard tendency which was sustained in August. W hile iron and steel production fo r July reached new low levels since the winter o f 1921-22, the rate o f steel mill operations gradually increased from approximately 40 per cent, of capacity in the middle of the month to about 55 per cent, by the latter part o f August. Unfilled orders o f the Steel Corporation at the end o f July showed the smallest decrease since November 1922, and bookings in the first three weeks o f A ugust were re ported to be 10 per cent, larger than in July. Production of passenger automobiles, after declining steadily fo r three months, showed an increase of 9 per cent, in July, notwithstanding that a seasonal decrease usually occurs in that month. Production o f trucks, however, was somewhat smaller than in June. In the textile industry cotton mill consumption was only slightly smaller in J uly than in June. In New England, m ill operations were larger than in June, and in this district and in the South there was increased activity in August. W oolen m ill activity, on the other hand, showed a further decline in July. W eekly figures of bituminous coal production con tinued to show gradual increases, but output continued far below normal as measured by the trend o f past years. Cement production, on the other hand, was the largest ever reported, and the copper output was also above the computed trend. The follow ing table gives this bank’s indexes of production in percentages of the computed trend of past years and after allowance fo r seasonal variation. Reports on distribution o f goods and general business activity generally indicated increases in July com pared with June. Department store and chain store sales in this district were larger than a year ago, and wholesale trade was more active than in June, though smaller than last year. Railroad shipments o f merchandise and miscellaneous freight and grain increased in July and the first half o f August, and averaged slightly larger than a year ago. Other loadings, however, continued smaller than last year, owing chiefly to smaller ship ments o f coal. Both in New Y ork City and outside, bank debits in July and early August were larger than last year. The follow ing table gives the indexes o f business activity in percentages o f the com puted trend, with allowance fo r seasonal variations and, where necessary, fo r price changes. (Computed trend of past years* 100 Per cent.) 1924 1923 Producers' Goods Pig Iron ...................................................... Steel in gots.................................................. Bituminous coal........................................... Copper U. S mines.................................... Xiu deliveries............................... ................ Petroleum...................................................... Gas and fuel o i l .......................................... Cotton consumption................................... Woolen mill activity*................................. Lumber........................... ............................... Leather, sole................................................. Consumers' Goods Cattle slaughtered....................................... Calves slaughtered.................................. Sheep slaughtered........................................ Ho^s slaughtered......................................... Sugar meltings, U. S. ports....................... Wheat flour................................................... Cigarettes...................................................... Tobacco manufactured.............................. Gasoline......................................................... Tires* ........................................................... Newsprint...................................................... Paper, total................................................... Boots and shoes............................................ Anthracite coal ...................................... Automobiles, all........................................... Automobiles, passenger.............................. Automobiles, truck.................. .................. *=Seasonal variation not allowed for. Jubr May June July 121 105 106 102 84 75 142 102 83 104 135 114 105 81 74 77 98 96 78 129 105 70 84 139 120 66 66 61 73 99 71 71 124 101 61 76 138 106 63 57 55 75 104 60 70 123 105 123 86 135 70 122 86 83 100 110 95 115 84 89 100 151 162 109 118 127 101 118 103 122 85 92 101 122 138r 119 102 91 88 108 113 89 92 117 93 119 108 120 i26* 118 iis* 125 106 90 82 86 92 97 76 io4 ‘ 85 75p 93 113 122 80 p=Preliminary. r=Revised. e i' 70p 147 *73* (Computed trend of past years =100 per cent.) 1923 1924 July May June July Grain exports................................................ Panama canal traffic.................................. 102 119 100 95 110 73 166 99 100 86 91 110 65 129 99 96 76 89r 105r 74 125 96 93 89 89 109 42 Distribution to Consumer Department store sales, Second District. Chain store sales.......................................... Mail order sales............................................ Life insurance paid for............................... Amusement receipts.................................... Magazine advertising.................................. Newspaper advertising............................... 93 94 91 103 94 105 99 93 97 99 101 108 102 94 91 93 103 105 94 93 82 109 io 3 ’ 93 *99’ 86 General Business Activity Bank debits, outside of New York City. Bank debits, New York C ity.................... Postal receipts.............................................. Electric power.............................................. Employment, N. Y . State factories........ Business failures........................................... 98 98 99 109 103 80 105 109 101 108 93 113 99 109 94 105 90 111 99 112 99 P rim ary Distribution Car loadings, merchandise and misc....... Car loadings, other....................... .............. Wholesale trade, Second District............. *88* 103 r — Revised E m p lo y m e n t an d W a g e s Between the middle o f June and the middle o f July there were further decreases o f about 4 per cent, in the number o f factory workers employed in New Y ork State and in the United States, which brought the total to the lowest since early in 1922 and approxim ately 13 per cent, below the number employed in M arch this year. E xcept fo r a slight further seasonal increase in the food products industries all groups o f m anufactur ing industries reported reductions in employes, and the reductions were especially large in the metal working and textile industries. Since the end o f July, however, current incomplete reports indicate little net change in employment, as extended vacation periods in some industries have been offset by increased operations in others. The percentage reduction shown fo r factory employ ment in New7 Y ork State since March represents the FEDERAL RESERVE AGENT AT NEW YORK release of over 175,000 workers from the factories and a decrease of approxim ately $25,000,000 or 17 per cent, in monthly wage payments. Notwithstanding these large decreases, the State employment offices report that, while there is some unemployed labor of various types, including even building labor, serious unemployment has so fa r been averted by the unusual volume o f out door work. R oad construction has been particularly heavy, owing to the fact that last y e a r’s program was restricted by labor shortage. B uilding continues larger than last year. Special efforts have been made by the State employment offices to place unemployed factory workers on the farms. In addition to the usual advertis ing, radio broadcasting was used to find places fo r workers. Per capita weekly wage earnings in July were $27.12, a decline of more than a dollar since March, due largely to part time work. A few wage rate reductions were put into effect throughout the district, but the number o f workers affected by these was not large. C r o p C o n d it io n s The composite condition of all crops, excluding cotton, on August 1 was 1.9 per cent, higher than the month earlier, but 4.1 per cent, below the ten year average condition at this season, according to the Department o f A griculture. Forecasts of the wheat, corn, oats, barley, rye, and potato crops were larger than on July 1, but those fo r fruits, hay, and tobacco were smaller. More favorable weather conditions for cotton, com bined with less than the usual amount o f boll weevil damage, resulted in an increase of more than 1,000,000 bales between July 16 and A ugust 16 in the probable yield of cotton, which, at about 13,000,000 bales, prom ises to be the largest in four years. 8 ,1 5 8 7 Calculated on the basis o f July 15 prices at the farm and August 1 crop estimates, the value o f the principal crops this year is approxim ately $8,150,000,000, a large increase over the amounts received by producers in the previous three years, as shown in the diagram belowr. In the case o f the corn crop, the increase in value in 1924 reflects higher prices, as the prospective yield is smaller than last year, while the reverse is true o f the cotton crop. In the cases o f the wheat and oats crops the larger value reflects both increased production and higher prices. C o m m o d i t y P r ic e s Lateness o f the corn crop and consequent danger o f frost damage led to further advances in corn prices during the greater part o f August, so that, notwith standing a late reaction, prices on the 27th were over 40 cents higher than at the end of May and close to the highest since 1920. Reflecting higher corn, hogs rose to $10.35, the highest in over two years. W heat, on the other hand, reacted during the month, due to improved crop prospects in this country and in Canada, but, at $1.27 a bushel on August 27, was still 21 cents above the low of the year. W hile prices o f grains and live stock showed irregular tendencies, prices o f industrial raw materials were more generally higher than in previous months. P ig iron and lumber, which had been declining fo r several months, became firmer, and there were advances also in copper and lead. A t 27% cents crude rubber was up 8^/2 cents in less than two months, and hides at 16 cents showed an increase o f 50 per cent, since A pril. Silk and wool were likewise firmer, but cotton and petroleum declined under pressure o f larger production. Reflecting these various tendencies, this ban k’s weekly index o f 20 basic commodities was somewhat lower in August, follow ing a marked advance in July. In July the Department o f Labor price index o f more than 400 commodities advanced 1.6 per cent, due to rise in prices o f farm products and foods. W h o le s a le T r a d e TOTAL ALL O TH E R O AT5 WHEAT HAY CORN 192.1 1922 1923 1924 Estimated Value of Principal 1924 Crops at July 15 Prices at the Farm compared with Dec. 1 Value of Crops Harvested in 1921, 1922, and 1923 (In millions of dollars) Wholesale trade was more active in this district in J uly than in June, as shown by an increase o f 13 per cent, in the sales o f representative dealers reporting to this bank, whereas in July there is ordinarily a small de cline. Compared with J uly last year, however, the total still showed a considerable decrease. In the individual lines, sales o f diamonds, drugs, and stationery were substantially larger than a year ago, and sales o f hardware, groceries, shoes, drygoods, dresses, and m en ’s clothing compared more favorably with a year ago than in June. Sales o f w om en’s coats and suits, on the other hand, were adversely affected by labor troubles, and machine tool sales also continued far below last y e a r’s levels. The follow ing table gives the detailed figures on July wholesale trade fo r the past five years. MONTHLY REVIEW, SEPTEMBER 1, 1924 PER CENT. Dollar Value of July Sales (July 1923 — 100 Per cent.) Commodity 1920 D ia m o n d s .................................... D ru g s ............................................ S ta tio n e ry .................................... Shoes............................................. G roceries...................................... D r y G oods................................... (а) C o tto n ...................... (б) S i l k ...................................... 104 H a rd w a re ...................................... J e w e lry ......................................... C lo th in g ....................................... . (а) M e n ’s................................ (б) W om en’s dresses............ (c) W om en’s coats and suits M achine T o o ls............................ 131 219 W eighted A verage................. 59 85 88 149 124 160 115 112 122 108 101 99 110 95 166 80 92 77 70 76 67 90 75 34 129 1922 1923 1924 84 90 90 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 121 88 92 75 81 69 87 85 74 68 66 90 49 82 108 105 100 98 97 92 103 95 91 74 92 94 35 58 92 D e p a r t m e n t S t o r e B u s in e ss J uly sales by department stores in this district were 8 per cent, larger than a year ago, whereas June sales were 2 per cent, smaller than a year previous. Stores in most of the principal cities of the district reported larger sales than a year ago, and apparel store sales were sub stantially larger. A ll m ajor departments of the stores showed increased business compared with a year ago. Sales of m en ’s and boys ’ clothing increased by one-third, and sales o f fu rn i ture, hosiery, and w om en’s ready-to-wear accessories showed increases o f more than 10 per cent. In silk, woolen, and cotton goods, and w om en’s outer wear, smaller increases occurred. The average sale was $2.26 as compared with $2.23 in July 1923. Men’s and Boys’ wear........................................................ Furniture............................................................................... Hosiery................................................................................... Women’s ready-to-wear accessories................................ Silk goods.............................................................................. Shoes....................................................................................... Home furnishings..................................... ................... Women’s and Misses’ ready-to-wear.............................. Woolen goods....................... ................................................ Cotton goods........................................................................ Miscellaneous........................................................................ Per cent. Change in Sales over July 1923 Per cent. Sales of each Dept, to Sales of all Departments + 3 3 .8 + 1 3 .7 + 1 2 .5 + 1 1 .6 + 5 .8 + 5 .0 + 3.2 + 2 .8 + 1.1 + 0 .4 + 5.1 8.1 7.1 3 .8 17.8 5 .0 3.9 12.9 8 .5 1.0 5 .8 26.1 Stocks o f merchandise in department stores on August 1 wTere 1 per cent, larger than a year ago, the smallest increase in nearly two years. As sales increased 8 per cent., the ratio of stocks to sales was about 6 per cent, smaller than last year. Larger buying, however, by the stores in preparation fo r the autumn season was re flected by an increase in the outstanding orders o f these stores fo r goods. The percentage of these orders to total purchases of the stores the year before was substantially larger on August 1 than on July 1, and while smaller than on August 1 a year ago, was larger than in August 1922. M o n t h ly P e r c e n ta g e s o f O u ts ta n d in g O rd e rs to T o t a l P u r c h a s e s in P r e v io u s Y e a r o f R e p r e s e n ta tiv e D e p a r tm e n t S to r e s in th e S e c o n d D i s t r i c t ( L a t e s t fig u r e A u g u s t 1 ) Notwithstanding recent advances in prices o f farm products, sales by the principal mail order houses in July were 8 per cent, smaller than a year previous, com pared with an increase o f 4 per cent, in June. The follow ing table gives the detailed changes in department store sales in July and stocks on A ugust 1 o f this year and previous years. Net Sales during July (July 1923 = 100 Per cent.) Stock on hand Aug. 1 (Aug. 1, 1923 = 100 Per cent.) 1922 1923 1924 1920 1921 1922 1923 1924 1920 100 105 116 94 100 100 100 103 115 94 95 100 102 100 112 121 91 90 100 98 100 121 156 109 101 100 109 100 115 166 123 102 100 115 100 99 119 100 99 100 105 110 100 102 100 99 103 99 88 100 90 106 93 100 116 99 85 92 100 112 105 100 108 117 95 100 101 106 100 92 103 104 103 New York............... Buffalo..................... Newark.................... Rochester................ Syracuse.................. Bridgeport............ Elsewhere, 2d Dist. Apparel.................... 90 95 89 111 104 110 94 116 85 All dept, stores. . Mail order houses. 92 91 85 104 90 89 C h a in S t o r e S a le s July sales by chain stores were 14 per cent, larger than last year, com pared with an increase o f 5 per cent, in June. Sales per store, which in June had averaged 10 per cent, below the previous year, were only 1 per cent, lower in July, and in the case o f ten cent stores showed an increase o f nearly 5 per cent. Number of Stores Dollar Value of July Sales (July 1923 = 100 Per Cent.) Type of Store Dry Goods............ Grocery.................. Ten Cent............... Shoe........................ Candy..................... Drug....................... Tobacco.................. July 1923 July 1924 449 15,795 1,813 307 135 312 2,759 578 18,726 1,969 367 148 318 2,760 81 89 80 124 79 102 108 21,570 24,866 89 July July 1920 1921 Per cent. Change in sales per store July 1923 to July 1924 July 1922 July 1923 July 1924 85 67 75 97 81 95 101 83 81 88 105 80 96 100 100 100 100 100 100 100 100 122 116 114 112 105 102 101 — 5 .5 — 1.8 + 4 .9 — 6 .3 — 4 .6 + 0 .4 + 0 .6 75 85 100 114 — 1.1
@FedFRASER