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MONTHLY REVIEW of Credit and Business Conditions S e c o n d F e d e r a l R e s e r v e D is t r ic t September 1, 1925 Federal Reserve Bank, New York Federal Reserve Agent Business Conditions in the United States R O D U C TIO N in basic industries turned upward in July after a continuous decline since January. Wholesale prices advanced further and the dis tribution of commodities continued in large volume. P P r o d u c t io n The Federal Reserve B oa rd ’s index of production in basic industries, which makes allowance fo r usual sea sonal variations, advanced by about 2 per cent in July to a point nearly 20 per cent above the low level of a year ago. Increased output was shown for lumber, coal, and cement, cotton consumption declined less than usual at this season, while the output of the iron and steel industry and the activity in the wool industry continued to decrease. In nearly all the industries activity was greater than in July of last year. A m ong industries not represented in the index the production of auto mobiles, rubber tires, and silk continued to be large. Volume of factory employment and earnings of indus trial workers declined further in July, seasonal increases in the clothing, shoe, and meat packing industries being more than offset by decreases in the other industries. Building contracts awarded in July were in only slightly smaller volume than the exceptionally large total reached in June and the total for the first seven months of this year exceeded that fo r any previous corresponding period. Estimates by the Department of A griculture indicated a less favorable condition of all crops combined on A u gust 1 than a month earlier. E xpected yields o f corn, wheat, rye, tobacco, and hay were somewhat smaller than in July, while the indicated production o f oats, barley, and white potatoes was larger. A ccordin g to present indications the yields of all principal crops, except corn and barley, will be smaller than last year. The mid-August cotton crop estimate was 13,990,000 bales as compared with a forecast of 13,566,000 bales on August 1. T r ad e Freight car loadings during July were larger than in June and exceeded those o f any previous July, and weekly figures fo r August indicated a continued large volume of loadings. Sales at department stores showed less than the usual seasonal decline in July and were 3 per cent larger than a year ago, and mail order sales were considerably above those of July 1924. Wholesale trade continued at the June level and was 6 per cent above the corresponding period a year ago. P r ic e s Wholesale prices advanced further by nearly 2 per cent in July, according to the index of the Bureau of PERCENT. Index of 22 Basic Commodities Corrected for Seasonal Variation. (1919 — 100 Per cent. Latest figure, July) Index of U. S. Bureau of Labor Statistics. (1913 =r 100 Per cent, base adopted by Bureau. Latest figure, July) 2 M O N THLY REVIEW, SEPTEMBER 1, 1925 Index o f Department Store Sales in 359 Stores. Per cent. Latest figure, July) (1919 == 100 Banks. Labor Statistics. Prices of farm products and o f mis cellaneous commodities rose over 4 per cent, reflecting chiefly increases in livestock and rubber, while in the other commodity groups price changes were relatively small. The general level of prices in July was 9 per cent higher than a year ago, the rise being chiefly in agricul tural commodities. In the first three weeks o f August raw sugar, potatoes, silk, metals, and coal advanced, while grains, leather, hogs, and rubber declined. B a n k C r e d it Demand for commercial credit at member banks in leading cities increased in A ugust and the volume of commercial loans on A ugust 12 was larger than at any time since the middle o f May, but still considerably be low the level at the beginning of the year. Loans on securities increased between the middle of July and the middle of August, while the banks’ investments showed little change for the period. Discounts fo r member banks increased at all the R e serve Banks in recent weeks and the total on A ugust 19 was the largest in more than a year and a half. The Reserve B anks’ holdings of securities and bills bought in the open market continued to decline, but total earn ing assets in the middle o f August were near the high point fo r the year. D uring the latter part of July and the first half of August conditions in the money market were somewhat firmer. The prevailing rate on prime commercial paper, which had remained at 3% to 4 per cent since early in May, advanced in August to 4 % per cent. Banking Conditions in the Second District W hile loans and discounts o f reporting member banks outside of the district continued to increase during the first three weeks o f August, the figures fo r banks in this district showed relatively little change. Commer cial loans, although moderately above the low point reached at the end of July, were only slightly above the July average, and loans secured by stocks and bonds (Latest figures, A ugust 19) continued near the level which has been rather con sistently held since the first o f the year. This was in contrast with the figures fo r banks outside o f this dis trict, whose stock and bond loans reached new high levels approximately $350,000,000 above those in Jan uary. In this district, as fo r the rest o f the country, the volume o f bank investments in securities was little changed. A t the Federal Reserve Bank o f New Y ork the volume o f discounts fo r member banks advanced approxim ately $50,000,000 in August to the highest levels since F eb ruary, accom panying a loss o f funds by this district to the interior. As holdings of Government securities and acceptances, however, declined slightly the average o f total earning assets during the month was not far differ ent from that o f previous months. Money Market Money conditions showed a firmer tendency in A u gust, accom panying increased com mercial requirements within the district, a movement o f funds to the interior, and continued demand from the security markets. The open market rate on prime commercial paper advanced *4 to 4 ^ per cent, the highest since May 1924. Banks in New Y ork City and in New England cen ters continued light buyers, while the demand from banks in the middle west was somewhat reduced owing to seasonal commercial requirements. Notwithstanding the high level of business activity, supplies o f paper con tinued small and the amount outstanding through 26 dealers at the end o f July showed a further decrease of 4 per cent to the lowest in any July since 1921. Supplies of bills were also small and about equal to the demand, which was chiefly for foreign account and for the shorter maturities, so that dealers’ portfolios showed little change. Open market rates, however, after remaining unchanged until the month-end advanced % o f one per cent to 3 % per cent on purchases o f 90 day bills and 3V2 per cent on sales. Yields on Government FEDERAL RESERVE AGENT AT NEW Y O R K short term securities continued to advance until after the middle of the month, when there wTas a partial reaction as prices became slightly firmer. In the stock exchange money market time loans ad vanced 14 to 4*4-4 ^2 Per cen^ fo r 60-90 day loans, and 4i/o-4% per cent for 4-6 months loans, the highest in more than a year. Call money was likewise firmer and except for a period at 4 per cent about the middle of the month, renewals held chiefly at 4*4 per cent, and towards the end of the month advanced to 4 % per cent. The accom panying diagram, com paring the commer cial paper rate with the yield on high grade bonds, re flects recent tendencies in money conditions. W hile commercial paper rates have advanced somewhat more than 1 per cent since last summer, bond yields have continued to decline until the past two months, when there has been a somewhat firmer tendency. 3 issues o f all kinds sold in this market have reached approximately 4% billion dollars, a larger total than in any corresponding period of previous years and three quarters of a billion dollars more than in this period of last year. The follow ing diagram, showing the new issues by months since 1919, compares the heavy financ ing o f the past year with that of previous years. MJLUONS OF DOLLARS 1919 N ew 1920 1921 1922 1923 192.4 C a p i t a l I s s u e s a n d R e f u n d i n g I s s u e s O f f e r e d in S ta te s, b y M o n th s. ( L a t e s t fig u r e s , J u ly ) th e 1925 U n it e d Velocity of Bank Deposits O p e n M a r k e t R a t e o n P r i m e 4 to 6 M o n t h s C o m m e r c ia l P a p e r a n d Y ie ld o f H ig h G r a d e B o n d s , b y M o n t h s . ( L a t e s t fig u r e s fo r c o m m e r c ia l p a p e r, A u g u s t ; fo r b o n d y ie ld s , J u ly ) Security Markets Stock trading in August increased in activity and prices continued to advance. Averages of active indus trial stocks reached new high levels approximately 20 points above the 1919 high prices, while averages of railway stocks reached the highest points since 1917. B ond prices, after displaying reactionary tendencies in July and the first part of August, strengthened towards the close o f the month but remained generally below the high levels of May and early June. United States Government issues were also firmer towards the close of the month, while among foreign issues the French Government 8s reached new high levels for the year. The volume of new securities offered in August fell somewhat below the totals fo r previous months, in keep ing with the usual seasonal tendency. Public utility and industrial issues preponderated, and foreign issues, aside from a large Japanese public utility offering, were small. Since the first o f the year, however, total new The large volume o f security offerings and continued activity in the stock and bond markets during recent months have been accom panied by an increase in the rate o f turnover o f bank deposits in New Y ork City to the highest level in the last six years, as shown in the diagram below. The rate o f turnover in 140 other cen ters, while not so high as in New Y ork City, increased substantially as general business was maintained at high levels, and in July was approximately 3 per cent, above the six year average. The accom panying diagram compares the rate o f turn over in New York City and 140 other centers, by months, in percentages of the six year average. R a te of 140 T u r n o v e r o f B a n k D e p o s i t s in N e w Y o r k C i t y a n d C e n t e r s O u t s id e o f N e w Y o r k C i t y a f t e r A llo w a n c e fo r S e a s o n a l V a ria tio n . ( S ix - y e a r a v e ra g e = 1 0 0 P e r ce n t. L a t e s t fig u r e s , J u ly ) in 4 MONTHLY REVIEW, SEPTEMBER 1, 1925 M IL L IO N S OF POUNDS D O LLA R 5 K ATE Gold Holdings o f the Bank of England, Sterling Exchange, the Bank of England Discount Rate, and the Market Rate on 3 M onths' Bank Bills in London, by weeks, since the first of January. (Latest figures for gold holdings, August 19; for sterling, August 22; and for interest rates, August 25) Money Conditions in Great Britain Foreign Exchange The reduction on August 6 of the Bank of E n gla n d ’s discount rate from 5 to 4 % per cent has called attention to the changes in the financial situation in Great Britain which have taken place since the resumption o f gold payments in A pril. These changes are illustrated in the diagram above. One of the uncertainties attending the restoration of the gold standard was the extent to which gold might be withdrawn from London once the prohibition on exports was removed. Since the restoration of a free gold market, however, the gold movement instead of being adverse to London has been generally favorable, partly because foreign funds, assured of ready conver tibility and attracted by London rates, have tended to flow into the British market. Gold holdings o f the Bank of England up to A ugust 19 showed an increase o f £8,000,000 due to imports, which together with an in crease of £27,000,000 due to the transfer o f gold from the Currency Note Redem ption A ccount to the Bank of England in the week of A p ril 29, raised the total gold holdings of the bank to £164,000,000, a new high level, and £126,000,000 above the 1913 average. Sterling exchange has advanced from $4.8156 to $4.8538, while the effect of the influx of gold upon money conditions is shown by the substantial decline in mone}r rates. Sterling exchange continued to be firmly maintained at above $4.8531 during August. French francs, on the other hand, declined slightly, and Belgian exchange showed a small net loss, notwithstanding a partial re covery later in the month follow ing the debt settlement with the United States. Lire declined during the early part o f the month, but recovered, and at 3.76 cents on August 28 showed a net gain o f about 10 points. Dutch exchange rose above parity fo r the first time since the resumption of gold payments, and heavy deal ings occurred in the Danish and Norwegian exchanges, which continued their rapid advance to new high levels for recent years. Brazilian exchange was also active and strong, and at 12% cents reached a new high price fo r the year, 27^ per cent above the recent low. A m ong Far Eastern exchanges, Japanese yen reacted below 41 cents, while rupees were steady. Chinese rates were generally higher, accom panying an advance in silver on August 27 to 71% cents, the highest since October 1924. Gold Movement In July, for the first time since last November, gold movements resulted in a net import balance fo r the United States. Total gold imports were $10,200,000, and exports $4,400,000, so that the excess of imports was $5,800,000. Of the imports, $6,000,000 came in one shipment from France and $2,900,000 was from Canada, while exports were chiefly for Mexico and the Orient. F or the eight months from December 1 to July 31 the net outflow o f gold amounted to $174,000,000. D uring the first 28 days of A ugust gold movements were unusually small. Imports at the Port of New Y ork totaled only $500,000, while exports were slightly more than a million. Foreign Trade Contrary to the usual seasonal tendency, exports o f merchandise increased $15,000,000 in J uly to $338,000,000, at which level they were $61,000,000 above July 1924. Imports valued at $326,000,000, while practically unchanged from the June figures, were also substantially above July of the previous year. In the case o f exports, the increase from June oc curred despite the fact that there was little change in the value o f grain and cotton shipments. O f imports, receipts o f rubber increased during July, while those of silk declined. Detailed figures made available for the fiscal year ended June 30 show heavy exports o f raw cotton amounting to over a billion dollars. E xports o f wheat and wheat flour were the next in value at approxim ately $400,000,000 follow ed closely by mineral oils, while automobiles and parts came fourth with nearly $250,000,000. Leading articles of import during the fiscal year were raw silk, valued at $353,000,000, follow ed by sugar, coffee, and crude rubber. FEDERAL RESERVE AGENT AT NEW YO R K Production Indexes of Business Activity Preparations for a strike in the anthracite coal fields on September 1 were reflected by heavy production of anthracite in both July and August. In the week of August 22 the production of 2,200,000 net tons was the largest for any week since 1922, and 29 per cent greater than in the corresponding week a year ago. Bituminous output also increased during July and August and reached the highest levels since early in February. The continuance of the automobile industry at un usually high levels of activity was shown by an output of 346,700 passenger cars in July, a total nearly equal to that of June and 46 per cent larger than a year pre vious. In the case of trucks, the output was larger than in June and 48 per cent above a year ago. In the iron and steel industry, production in July, while slightly below that of June, remained substan tially above July last year, and during the first three weeks of August operations showed a gradual upward tendency. A decrease of 170,991 tons in the unfilled steel orders of the Steel Corporation at the end of July was the smallest monthly decrease since the downward movement began in March. Silk mill activity increased in July to near the high level of last March, and cotton consumption and woolen mill activity, while considerably below normal, were substantially larger than in July 1924. The follow ing table gives this ban k’s indexes of production in m ajor industries in percentages of the computed trend, after allowance for seasonal variation. General business activity in July, as measured by this bank’s indexes, continued at an unusually high level. The index o f bank debits outside of New Y ork City, which reflects closely changes in the total volume o f trade, was only slightly lower than in June, and equal to or above any other month since January. Car loadings of merchandise and miscellaneous freight continued above the computed trend, or normal, for the month, and other loadings increased over June, due largely to the heavier movement of coal and the market ing of the new winter wheat crop. Mail order sales were 29 per cent above a year ago, building permits were exceptionally heavy, and factory employment held close to a normal level for this time of year. In the follow ing indexes o f business activity allow ance has been made for the usual year to year increase, seasonal variations and, wThere necessary, an adjustment has been made fo r estimated price changes. (Computed trend of past years=100 per cent) 1924 (Computed trend of past years=100 per cent) 1924 1925 July May June July 98 92 91 89 108 42 123 106 108 91 94 110 141 83 103 99 90 86 115r 77 98 103 101 94 98p 115p 76 96 95 95 118 109 99 90 96 111 114 112 97 95 94 114 112 93 117 123 ioo 91 ‘ 96 92 100 109 110 124 111 119 110 118 99 103 105 103 98 103 101 103 103 99 99 95 103 122 115 99 104 99 108 160 118 100 106 98 119 177 114 105 Primary Distribution Car loadings, merchandise and misc...... Car loadings, other................................... Wholesale trade, Second District........... Grain exports............................................ Panama Canal traffic............................... Distribution to Consumer Chain store sales....................................... Mail order sales........................................ Life insurance paid for............................. Real estate transfers................................ Magazine advertising............................... Newspaper advertising............................ 1925 General Business Activity Producers’ Goods Pig iron..................................................... Steel ingots............................................... Bituminous coal....................................... Copper, U. S. mines................................. Tin deliveries............................................ Zinc........................................................... Petroleum................................................. Gas and fuel oil........................................ Cotton consumption................................ Woolen mill activity*.............................. Cement...................................................... Lumber...................................................... Leather, sole............................................. Silk consumption*.................................... July May June July 57 55 75 101 60 96 123 97 61 70 123 100 73 98 89 99 87 99 87 96 132 107 89 83 125 105 74 115 84 94 88 102r 99 98 129 114 84 81 128 110 76 118 83 89 91p 104 96 102 109 107 101 136 111 109 107 80 103 114 92 104 85 93 96 113 122 | 80 i 113 97 110 86 93 88 96 79 104 130 121 115 97 90 97 132 140 97 99 105 101 101 100 99 Consumers’ Goods Cattle slaughtered.................................... Calves slaughtered................................... Sheep slaughtered..................................... Hogs slaughtered...................................... Sugar meltings, U S. ports..................... Wheat flour............................................... Cigars........................................................ Cigaretr.es.................................................. Gasoline..................................................... Tires.......................................................... Newsprint................................................. Paper, total............................................... Boots and shoes........................................ Anthracite coal......................................... Automobile, all....................................... .. Automobile, passenger............................. Automobile, truck.................................... * = Seasonal variation not. allowed for p = Preliminary r= Revised i35 128 113 87 91 93 136 148 87 ‘ 83 77p 132 i30 122 114 103 91 io7 105 79 111 iii 83 102p 104p 156 169 104 Bank debits, outside of New York City. Bank debits, New York City.................. Bank debits, 2nd Dist. excl. New Y'ork Velocity of bank deposits, outside of New York City..................................... Velocity of bank deposits, New York Postal receipts........................................... Electric power........................................... Employment, N. Y. State factories........ Business failures....................................... Building permits....................................... '98 94 p = Preliminary r=Revised Employment and Wages Factory employment in July showed only the usual mid-summer decline o f about 1 per cent from June, both in New Y ork State and in the United States, and remained well above the level o f a year ago. The decline from March to July in this state was only 5 per cent this year, com pared with 14 per cent last year. Average weekly earnings o f factory workers in the state showed little change during the month, though a 1 per cent decline occurred fo r the country as a whole, probably due to vacations. Total factory pay roll ex penditures in the United States declined over 2 per cent from June to July, but were 15 per cent larger than a year ago. 6 MONTHLY REVIEW, SEPTEMBER 1, 1925 Building July records of building permits and contracts indi cate the continuation of construction work at unprecedentedly high levels. Contracts awarded in 36 states totaled $529,000,000, an increase of 53 per cent over last year, and larger than ever before in July. Permits issued in 377 cities were 41 per cent above a year ago and also larger than in any July. In New Y ork City the building totals are rapidly over taking those of 1924, after falling much below in the early months of this year. Contracts awarded in July were 76 per cent larger and permits more than twice as large as a year ago. These increases were due chiefly to residential contracts, which reached the highest level since the spring of 1924. Influence of the New York City figures is shown in total contracts for the district, which were 40 per cent above last July. The accom panying diagram compares by months the figures fo r the country and for this district with last year. Reflecting the continued heavy building, costs are somewhat higher than a year ago. W hile disputes be tween various labor unions have caused suspension of work on a number of large projects, in general operations are proceeding at a high level, and labor supply has been adjusted fairly closely to demand. August 1 estimates fo r all crops except cotton, and August 15 prices at the farms, indicates an increase of 7 per cent over 1924, and over 75 per cent since 1921. Compared with last year, the increase in aggregate values is chiefly due to larger crops o f corn and cotton, although a number o f minor crops also promise substan tially larger financial returns than last year. The accom panying diagram compares the preliminary estimates of this y e a r’s crop with the final figures for recent years. In the case of cotton, the 1925 figures are based on estimates as of August 15. 8 ,7 3 2 ; COTTOH 644 CORN 1 9 2 .1 19ZZ 1 9 2 .3 19£4 1925 Estimated Value of Principal 1925 Crops at August 15 Prices at the Farm Compared with Dec. 1 Value of Crops Har vested in Previous Years. (In millions of dollars) Commodity Prices A fte r advancing during the early summer this ban k ’s price index o f 20 basic commodities declined late in July, and in August. This was due chiefly to the reaction in rubber, which fell to 95 cents, or 26 cents below the July high point, and also to a drop o f nearly 3 cents a pound in cotton, accom panying improved prospects fo r the crop. The prices o f corn, hogs, and petroleum were also lower, but metals, on the other hand, were firmer. Scrap steel continued to advance. P ig iron became slightly PERCENT. JAN- FEB* MAR' APR- MAV JUN- JUL* AUG. SEP. OCT- NOV* DEC* Value of Building Contracts Awarded in 36 States and in New York State and Northern New Jersey. (Latest figures, July) Crops Am ple rainfall resulted in a rather general im prove ment in crop conditions in New Y ork State during July. Indicated yields of oats, corn, barley, apples, and pears on August 1 were larger than last y e a r’s crops. In the cases o f buckwheat and potatoes, however, yields appar ently will be smaller than in 1924. W hile the composite condition of crops throughout the country as reported by the Department of A gricu l ture was 1.6 per cent lower on A ugust 1 than on July 1, and below the average of the last ten years, a pre liminary calculation of aggregate values, based on Price Indexes of 20 Basic Commodities in the United States and in England. (1913 = 100 Per cent. Latest figures, August 22) FEDERAL RESERVE AGENT AT NEW YORK firmer, and copper and lead reached the highest levels since January. As compared with a year ago, both this bank’s index o f wholesale prices and that of the Department of Labor showed considerable advances, due largely to increases in farm products and foods. These tendencies are re flected also in a moderate advance in the semi-annual cost of living index of the Department of Labor to a level slightly higher than at any time since 1921. As indicated in the follow ing table, this increase was due almost wholly to increases in the retail price of foods. (1913 Average = 1 0 0 per cent) Index June 1924 Index June 1925 Per cent Change June 1925 from June 1924 Food..................................................... Clothing.............................................. Housing.............................................. Fuel and light.................................. House furnishing g o o d s .............. Miscellaneous................................... 142.4 174.2 168.0 176.7 2 1 6 .0 201.1 155.0 170.6 1 67.4 176.7 21 4 .3 2 0 2 .7 + 8 .8 — 2 .1 — 0 .4 0 — 0 .8 + 0 .8 All item s........................................ 169.1 173.5 + 2 .6 Department Store Business Department store sales in this district averaged 2 per cent larger in July than a year ago. I f allowance is made, however, fo r an extra selling day this year for stores in New Y ork City and vicinity, the sales, on a working day basis, fell slightly below those o f a year ago, despite increased floor space in a number o f the stores. In the case o f apparel stores, the unadjusted sales averaged 3 per cent smaller than in July 1924. Stocks o f merchandise on hand in reporting stores were 4 % per cent larger than in last year, a somewhat greater increase than occurred in sales. The rate of turnover fo r the month, in consequence, fell slightly below last year, though fo r the year to date the average continues slightly above 1924. Net Sales Percentage Change July 1925 from July 1924 Rochester........................................................... Syracuse............................................................. Wholesale Trade Bridgeport......................................................... Trade of representative wholesale dealers in this dis trict during July averaged 10 per cent above a year ago, reflecting increases in a m ajority of the reporting lines. The largest increase occurred in w om en’s coats and suits, and was probably due chiefly to the fact that sales last year were unusually small because o f labor troubles. Machine tool sales, however, were also sub stantially larger than last year, silk goods business was maintained at a high level, and considerable gains oc curred in m en’s clothing, cotton goods, shoes, and diamonds. Stocks of wholesale shoe dealers continued to expand, whereas a year ago they were being sharply reduced, and stocks of groceries, and jew elry and diamonds were likewise larger than a year ago, although the increases were not so large as in previous months. In the cases o f cotton goods and silk goods, stocks continued smaller than last year. Net Sales Percentage Change Northern New York State..................... Central New York State......................... Southern New York S ta te..................... Hudson River Valley D is t..................... Westchester District................................. Groceries................................................ M en’s clothing..................................... Wom en’s dresses................................. Wom en’s coats and suits................ Cotton-Jobbers................................... Cotton-Commission houses............ Silk goods.............................................. Shoes....................................................... D rugs...................................................... Hardware.............................................. Machine tools...................................... Stationery............................................. Paper...................................................... D iamonds............................................. Jewelry................................................... Weighted Average......................... i July 1925 from June 1925 + 2 .1 + 5 4 .8 — 3 8 .6 + 5 2 3 .5 + 1 2 .4 — 9 .5 — 1 4.2 — 6 .6 — 1 .2 — 11.9 — 13.5 — 7 .5 — 4 .1 + 1 7.8 — 8 .5 + 2 .3 + 2 0 .3 — 1 1 .0 + 1 3 0 .0 + 9 .6 + 9 .9 + 2 4 .0 + 1 1 .1 — 7 .7 + 3 .4 + 5 6 .6 + 2 .2 — 1 .7 + 1 5 .6 — 3 .2 — 4 .9 + + 3 6 .2 __ 22 1 + + — 2 .1 * + 5 9 .5 +8.7 j *=Stock at first of month— quantity not value + 1 0 .2 + 8 .1 * 7 .4 1 .3 j — 7 .5 j — 9 .4 ( + i. 6 .6 0.4 + + — + + + — 5 .1 2 .9 0 .5 5 .9 8 .8 4.9 3 .8 + 3 .2 + 11 .3 — 7.9 Apparel stores.................................................. Mail order houses........................................... — 2 .9 + 2 9 .2 2 .3 + 4 .5 — 0 .9 The largest increases in sales over last year were in sporting goods, books and stationery, luggage and leather goods, and toilet articles and drugs. Furniture and home furnishings continued to show large gains, and there were substantial increases also in shoes and hosi ery. Silk goods and apparel sales, on the other hand, did not compare so favorably with a year ago as in June, and cotton goods showed a sharp decline. The average value o f the individual sales transaction in July was $2.41 com pared with $2.38 a year previous. July 1925 from July 1924 3 .8 — + Commodity July 1925 from July 1924 2 .1 3 .6 6 .5 4 .7 1 .2 2. S 5 .0 3 .3 All department stores................................... Stock at end of month Percentage Change July 1925 from June 1925 + + + — + + + + Stock on Hand Percentage Change July 31, 1925 from July 31. 1924 Net Sales Percentage Change July 1925 from 1 July 192 i Stock on Hand Percentage Change July 31, 1925 from July 31, 1924 + 3 3 .7 + 2 0 .8 + 1 7 .7 + 1 6 .1 + 16.1 + 1 2 .0 + 1 0 .9 + 9 .2 + 9 .0 + 8 .1 + 6 .8 + 4 .9 + 2 .6 + 2 .0 + i .4 — 0 .7 — 1 0 .0 — 3 .2 -J- 2 8 + 2 .3 + 1 0 .0 + 1 .8 + 12.1 + 4 .9 — 3 .0 — 3 .0 + 3 .6 4-5.2 + 1 .0 + 5 .6 + 0 .2 + 1 .4 + 1 .3 — 0 .2 + 1 2 .7 — 1 .2 Toys and sporting goods............................. Books and stationery.................................... Luggage and other leather goods............ Toilet articles and drugs............................. Home furnishings........................................... Silverware and jewelry................................. Linens and handkerchiefs........................... W om en’ s and Misses’ ready-to-wear. . . M en’s and B oys’ w ear.................................. M en’s furnishings........................................... Woolen goods................................................... i W om en’s accessories..................................... Cotton goods.................................................... Miscellaneous................................................... I ! ! | ! : | j ; : ! j Schedule of Interest and Principal Payments on of British Debt to This Government Account Schedule The Belgian Debt Agreement W ith the funding of its debt of $417,780,000 to this Government, subject to the approval of the Belgian Gov ernment and the United States Congress, Belgium be comes the sixth country to make form al provision for payment of its indebtedness to the United States. This settlement brings the total of foreign debts which have been funded to approximately $5,166,000,000, out o f a total of about $12,000,000,000, including principal and accrued interest. Countries which have previously con cluded funding arrangements are Great Britain, Poland, Finland, Lithuania, and H ungary. Under the terms of the Belgian settlement payment of Interest and Principal Payments on of Belgian Debt to This Government Account of principal of the pre-Arm istice debt o f $171,780,000 without interest, and o f the $246,000,000 post-Armistice debt with interest, amounting to $310,050,500, are to be made over a period of 62 years in annual instalments of about $12,700,000, except during the first ten years, for wThich smaller fixed payments are specified. Interest on the post-Armistice debt is fixed in arbitrary amounts for the first ten years and at 3 % per cent there after. The diagrams above, com paring the methods of payment of both the British and Belgian debts, show the smaller payments which are made during the first ten years under both the British and Belgian debt settle ment plans, and also the manner in which the amounts paid on principal increase and interest charges decrease. Statement showing principal amount of obligations of Foreign Governments held by the United States Treasury, interest accrued and unpaid thereon up to and including the last interest period prior to May 16, 1925, and payments received on account of principal and interest up to August 24, 1925. Unfunded Obligations Principal Amount of Obligations Now Held Interest Accrued as of Last Interest Paying Dates France.......................................................................... Italy............................................................................. Russia.............. ........................................................... Czechoslovakia............................................................ Jugoslavia.................................................................... Rumania...................................................................... Austria........... ............................................................. Esthonia........ ............................................................. Greece.............. ............................................................ Armenia..................................................................... Latvia.................................................................. . Nicaragua.................................................................... Liberia......................................................................... Cuba................ ............................................... $3,340,516 044 1,647,869,198 192,601,297 91,879,671 51,037,886 36,128,495 24,055,709 13,999,145 15,000,000 11,959,917 5,132,287 100,590 26,000 $870,040,904 490,674,654 62,546,395 25,799,424 14,377,111 10,380,166 6,495,041 3,794,875 2,625,000 2,999,562 1,219,852 Total..................................................................... $5,430,306,239 Funded Objigations Great Britain.............................................................. Belgium....................................................................... Poland.......................................................................... Finland........................................................................ Lithuania..................................................................... Hungary...................................................................... $4,554,000,000 *416,904,160 178,560,000 8,910,000 f 6 ,045,225 1,972,883 Total.................................................................... $5,166,392,268 Grand Total Funded and Unfunded......................... $10,596,698,507 Total Indebtedness Payments on Account of Principal j j Payments on Account of Interest $231,405,662 57,598,852 7,913,702 304,178 636,059 263,313 $64,302,901 164,852 6,76S $4,210,556,948 2,138,543,852 255,147,692 117,679,095 65,414,997 46,508,661 30,550,750 17,794,020 17,625,000 14,959,479 6.352,139 100,590 32,768 10,000,000 126,266 8,182 861 2,286,751 $1,490,959,752 $6,921,265,991 $77,033,046 $301,702,979 $4,554,000,000 $46,000,000 875,839 $1,490,959,752 1,159,153 50,513 8,910,000 ..........90,000 6,045,225 1,972,883 30,000 9,672 $5,166,392,268 $47,005,511 $345,164,750 $12,087,658,259 $124,038,557 $646,867,729 178,560,000 0 720,600 1,794,180 $343,620,000 192,567 500,000 672,300 135,675 44,208 416,904,160 ^Funding Agreement concluded but not approved by Congress fFunding Agreement approved by Congress but bonds have not been exchanged !