Full text of Economic Review (Federal Reserve Bank of Cleveland) : August 1947, Vol. 29, No. 8

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Busin
Fourth Federal Reserve District
Federal Reserve Bank of Cleveland

F in a n ce, In d u stry
Agriculture, and Trade

V o l. 29

Cleveland, O hio, August 1, 1947

No. 8

FARM REAL ESTATE LOANS
Recent Trend
in Farm Real
Estate Loans

In the first eighteen months of the
postwar period, farm real estate
loans at all Fourth District member
banks increased about 46 percent.
The rate of increase since last December, however,
seems to have slowed down somewhat on the basis of
reports submitted as of June 20 by 66 country member
banks in this District. At those banks, farm real
estate loans outstanding expanded only another four
percent during the first half of 1947.
This slowing down in the rate of gain at the 66 banks
may be the result of an acceleration in repayments,
a reduction in the volume of new loans made, or
perhaps both. It is estimated th at for each $1,000 of
farm real estate loans held by these banks last Decem­
ber 31, $310 in new loans were made during the first
half of 1947, while repayments on loans aggregated
about $270.

FARM REAL ESTATE LOAN SURVEY
The Federal Reserve System recently con­
ducted a survey of farm real estate loans out­
standing at a sample of country member banks
as of June 20, 1947.
Sixty-six member banks of this District sup­
plied data on each of their 1,682 farm real estate
loans outstanding on th at date.
The 66 reporting member banks are situated
in 50 different counties and represent virtually
complete geographical coverage. Their farm real
estate loans constitute approximately 10 percent
of such loans outstanding at all member banks in
the Fourth District.
Most of the 66 banks range between $2 million
and $10 million in total deposits.
A similar nationwide survey concurrently was
conducted among non-member banks by the
Federal Deposit Insurance Corporation.
'■ _

i:,]

,.r

......... \ j A ?'O T




Y iO ".i

-

Characteristics of the Loans
Interest Almost one half of the farm real estate
Rates
loans in the portfolios of the 66 member
banks at the time of the recent survey
carried an interest rate of 5 percent. The accom­
panying chart shows th at rates above 5 percent
accounted for 21 percent of the loans, with rates
under 5 percent applying to 34 percent of the total.
Nearly 30 percent of the loans called for a 4 percent
rate. A somewhat similar distribution occurred
when the number of dollars loaned at each rate was
considered. However, since the lower rates usually
applied to the larger loans, a relatively great pro­
portion of dollars, 43 percent, was loaned at 4
percent.
The banks reported th at their “ usual” rate of
interest had declined substantially since the early
1930’s and, for th at m atter, since the years just prior
to the war. Of the 61 banks which supplied this
information, 24 now usually charge 5 percent on
farm real estate loans, while the other 37 banks are
about evenly divided between the number custom­
arily charging over or under 5 percent. In 1930, 58
of the 61 banks usually charged more than 5 percent,
while in 1940 about two-thirds charged above 5
percent.

Interest Rates by The average rate charged deSize of Loan
clined with increases in the size
of the loans made. The accom­
panying chart indicates th at loans under $1,000
involved an average interest rate of 5.6 percent com­
pared with an average rate of 4.1 percent on loans
over $25,000. This is to be expected, since in many
cases the costs of making and servicing small loans
are virtually as great as are the costs on large loans.
As a result, the costs per dollar loaned are greater on
the small loans and necessitate higher rates. On
loans in the, most popular size loan range, which an
accompanying chart indicates to be the $2,500-$4,999
bracket, the average interest rate was 4.8 percent.

2

August 1, 1947

MONTHLY BUSINESS REVIEW

Interest Rates by The recent survey also indiTerm of the Loan cated th a t the longer term
loans tend to involve a lower
interest rate. For example, on loans ranging from
32,500-34,999 in size, the loans maturing in three
years or less were written with an average interest
rate of 5.0 percent, compared with 4.8 percent for
loans maturing in three to five years, and about 4.5
percent for loans maturing in more than five years. Sim­
ilar gradations occurred in loan size ranges 31,500—
32,499 and 35,000—39,999.
One reason may be th at initial loan costs can be
written off more gradually on long term loans.
Another possible explanation is that the long term
loans are more thoroughly appraised and screened,
are thus more conservative, and may entail less risk.
In this connection it may be noted that demand loans
in each of the three size ranges carried a compara­
tively high interest rate.

Supplementary Loan charges over and above the
Charges
interest payments are required
by 55 of the 64 banks supplying
information on this portion of the questionnaire.
On the basis of dollar figures provided by a majority
of the banks, it is estimated th a t the average non­
interest charge per loan comes to about 318.
Supplem entary Charges on Farm Real Estate Loans
N um ber
of
Banks
64
N um ber of B anks........................................
N um ber of Banks with No E xtra Charge
9
N um ber of Banks with E xtra Charge. . .
55
Types of Charge:
T itle Search..........................................
R ecording..............................................
A pproval...............................................
F lat C harge...........................................
O ther C harges......................................

Average
E xtra
Charge

$18

40
35
14
12
6

33 for recording, while about one-fourth charge an
appraisal fee which amounts to $7 on the average.
Only 12 banks stated th at a flat amount is charged,
and in those instances the average cost to the borrower
is 314.
Comparison of policies on interest rates and on
supplementary charges discloses th a t the banks
which usually receive the highest interest rates also
charge comparatively large supplementary fees.
Banks usually charging 6 percent average 325 per
loan in supplementary fees, 5 percent banks collect
318, while 4 percent banks on the average add only
312 to interest costs of the borrowers. In any event,
such supplementary charges are an inconsequential
item in relation to total interest cost over the entire
term of most farm real estate loans.

Method of
Repayment

The banks were asked to designate
whether each loan was an instalm ent
loan or a single payment loan. Eighty
percent of the loans, and 84 percent of the dollars
loaned, were reported to provide for repayment by
instalments.
Borrowers on single payment loans, however, have
been almost as active as instalm ent borrowers in
paying oflF their loans. For example, of the loans
outstanding June 20 but originally made in the years
1945-1946, 19 percent of the original amount has
been paid off on the loans designated as single pay­
ment, whereas 20 percent of the instalm ent loan total
has been repaid. Repayment ratios for loans initially
drawn up in other years are listed in the accompany­
ing table.
Ratio of R epaym ents to Original
A m ounts of th e Loans

$15
$ 3
$7
$14
$ 6

Approximately two-thirds of the banks make a
charge for title search, the average fee usually being
about 315. Roughly half of them levy a fee of about

Year Loan R epaym ents on
R epaym ents on Single
M ade
Instalm ent Loans
Paym ent Loans
1947........................................2%
7%
1945-1946...............
20
19
36
35
1943-1944...............
1940-1942...............
56
41
48
53
Before 1940...........

Percentage D istribution of Farm Real Estate Loans by Interest Rate Charged
66 Fourth D istrict Banks
INTEREST
RATE

IN T E R E S T
R A TE

DOLLAR
VOLUME
OF
LOANS

*9'/.
_________________________________________ |_______ 1_______ 1_______ |________1_______

0

10

20

30




40

50

(0

70

60

90

100

0

10

20

30
--------

40
PERC EN T

50

*0

70

OF TOTAL ----------

SO

90

100

3

MONTHLY BUSINESS REVIEW

August 1, 1947

Relationship of Method The proportion of loans
of Repayment to Size
designated as instalment
and Term of Loans
loans grew larger with in­
creases in the size of the
loans, and also when loans running for longer terms
were considered. For example, 67 percent of the
loans under 31,000 were designated as instalment
loans, while the corresponding percentage for loans
of #5,000-and-over was 84 percent.
Of the loans maturing in a year or less, only 36
percent were designated as instalment loans, whereas
98 percent of the loans maturing in over five years
were so marked. It may be noted from the accom­
panying table th at 66 percent of the demand loans
were nominally labeled instalment loans.

volume final payments are due within 53^ years.
Another 43 percent of the volume comes due between
and 103^ years, whereas only 6 percent of the
loan volume runs for more than 103^ years. Demand
loans account for another 15 percent of the dollar
volume outstanding, while 4 percent of the out­
standing amount represents loans which are nominally
past due. In rural areas long-term indebtedness to
banks is occasionally represented by a past due note
on which the borrower has met all obligations required
by the bank.
Percentage D istribution of Loan
By D ate Due
Years
% of T otal Dollars
D em and......................................
15%
1947..............................................
4
1948-49.......................................
10
1950-52.......................................
18
1953-59........................................
43
1960..............................................
6
Past D u e .....................................
4

R elationship of M ethod of R epaym ent
to Size and Term of Loan
Size of Original Loan

% on Instalm ent Basis

Under 3 1 ,0 0 0 ..........................
31,000-31,499...........................
31.500-32,49 9
32.500-34,99 9
35,000 and above......................

67%
71
77
85
84

All L oans............................

80%

T O T A L ...............................

Appraisal
Policies

Term of Loan
% on Instalm ent Basis
D em and......................................
66%
Year or L ess...............................
36
Over 1 to 5 Y ears.............
82
Over 5 Y ears..............................
98
All L o an s............................
80%

Term of Slightly over one-third of the dollar
Loans
volume of loans was made for a term of
over five years to ten years. One-fifth
of the dollar volume involved a term of over three
years to five years, and one-tenth of the loans were
drawn up to mature in three years or less. The
accompanying chart shows th at loans maturing in
more than ten years constituted about one-fifth of
the total dollar volume of loans. Demand loans
accounted for 16 percent of the total.
Due dates on the current volume of loans out­
standing indicate th at on one-third of the dollar

On the average, the banks which participated in the survey reported th a t they
lend up to 50 percent of the current
selling price on farm real estate. Of 56 banks report­
ing information on this question, about half specified
the 50 percent figure. Eight lend up to 60 percent,
whereas eight others do not exceed 40 percent. A few
banks are willing to go as high as 66 2/3 percent.
In 1940 the reporting banks loaned on the average
up to 52 percent of selling prices prevailing at th at
time.
The total of the original amounts of the 1,682
loans in the survey was found to be 47 percent of
appraised values, while the dollar volume of loans
outstanding on June 20 amounted to about 38 percent
of the original appraisals. Use of current farm values
in this calculation presumably would produce a much
lower percentage. With further regard to the rela­
tionship of the loan amounts to the values of the
mortgaged properties, it may be noted th a t all but
three of the 1,682 loans in the survey were reported
to be first rather than junior liens.
Average Interest Rate by Size of Loan

Usual Rate of Interest Charged by 61 Banks
1930
NUMBER
OF BANKS




-

1940

-

100%

1947
NUMBER
Of BANKS

IN TE R E S T
RATE

IN TE R E S T
R A TE

4

MONTHLY BUSINESS REVIEW

Percentage D istribution of Farm Real
Estate Loans by Size of Loan
PERCENT
OF T O T A L
IOOi---------------

PERCENT
OF T O T A L
-----------------1100

N U M B ER OF LOANS

August 1, 1947

the land, thus giving the relatively high value. Also,
the appraised value of the farms includes improve­
ments and buildings on the land, the value of which
is a larger element in the total worth of the small farms
than of the large. Farms of less than 30 acres
averaged #255 per acre when appraised, average size
farms of 70-139 acres were valued at $85 per acre,
while the large farms of 260 or more acres were
appraised at $70 per acre.
Average Appraised Value Per Acre
By Size of Farm

UNDCR
$1,000

$1,000 TO
$1,499

$1,500 TO
$2,499

$ 2,500 TO
$4,999

$5,000 TO
$9,999

Acres in Farm
Value per Acre
Under 3 0 .............................................. 3255
30-69....................................................
123
70-139..................................................
85
140-259................................................
75
260 and o v e r............. .........................
70

$10,000 AND
O VER

Characteristics of the Borrowers

T O T A L .................................

3189

Purpose
of Loans

When the appraised values of the
mortgaged acreage are converted to a
Pe r acre basis, a higher value per acre
is obtained on the smaller properties
than on the large ones. The soil and the location of
many of the smaller farms permits intensive use of

Almost two-thirds of the loans now outstanding represent borrowing to buy the
land mortgaged, while another 9 per­
cent of the loans were made to finance the purchase
of land other than the property being mortgaged.
An accompanying chart shows th at building or repair
work on the farms accounted for 8 percent of the
total number of loans.
The relative importance of these respective purposes
was not found to vary significantly with the size of
the farms, nor did it seem to change greatly from
year to year. With regard to different size farms,
the only noticeable variation was th a t owners of
small farms of less than 30 acres borrowed more
frequently in order to build or to do repair work on
the farms. Likewise, the purchase of more land was
the purpose of loans to small farmers in only 4 per­
cent of the cases compared with 9 percent for all
sizes of farms combined.
Recently there has been a tendency for a somewhat
smaller proportion of loans to be made to finance the
purchase of land mortgaged. Thus far in 1947, such
loans amounted to only 63 percent of the dollar
volume as compared with an average during preceding
years of about 72 percent. On the other hand, in
1947 the percentage for “other” known purposes has
advanced to 16 percent of the dollar volume from a'
customary 10 percent. The latter change may be a
result of increased purchases of farm equipment and
motor vehicles.

Percentage D istribution of Farm Real
Estate Loans by Term of Loan

Percentage D istribution of Loans
by Purpose of Borrower

T ypes of Farms

Of the 1,682 loans in the port­
folios of the 66 banks on June
20, 68 percent were made on general farms, which
are defined as farms where no one type of product
accounts for as much as half the total receipts of
the farm. Fourteen percent of the loans were made
to part-time farmers, or those who receive a major
portion of their income from work performed off the
farm. Dairy farms accounted for 8 percent of the
loans, tobacco farms for 4 percent, while the remain­
ing 6 percent was divided among livestock, poultry,
grain, truck and fruit farms.
Percentage D istribution of Loans by Type of Farm
Type of Farm
G eneral.......................
P a rt-tim e ...................
D a iry ...........................
T obacco ......................
All O th er* ..................

% of N um ber
of Loans
68%
14
8
4

% of Dollar
, Volume
70%
10
10
3
_7_

100%

100%

"■“Including Livestock, Poultry, Grain, Truck, and F ruit.

Value of
Property
Mortgaged

PERCENT
OF T O T A L

PERCENT
OF TOTAL

-----------H00

ioq

DOLLAR

60-

40

—

20-




VOLUME

P ER C EN T
OF T O T A L

P ER CENT
OF TO TA L

August 1, 1947

MONTHLY BUSINESS REVIEW

5

INDUSTRIAL REVIEW
Coal

Bituminous coal production was resumed on
a partial scale on July 8, when a new wage
agreement was signed by the northern operators and
the United Mine Workers. By the end of the week
the same conditions had been accepted by both the
western and southern operators. The principal pro­
visions of the agreement may be summarized as
follows:
Hours. An eight-hour day has been established,
at straight time rates, in contrast to the old contract
which provided for time and one-half beyond seven
hours.
The miners are to be paid for one and one-half
hours per day lunch and travel time. The new
agreement made no change in travel time, but the
war-shortened and perhaps somewhat nominal fifteenminute lunch period was lengthened to the historic
half-hour interval.
Under the former contract most mines operated
nine hours per day, whereas the new agreement will
probably hold the schedule generally to eight hours.
Thus actual production per worker will be about six
and one-half hours per day as against seven and
one-half to seven and three-quarters hours under the
preceding contract, or a reduction of around 15
percent.
Wages. The basic hourly rate has been raised from
$1.18^£ to $ 1 .6 3 ^ , or an increase of 4 4 ^ cents an
hour. The daily wage increase amounts to $1.20,
since the old contract provided for overtime pay for
anything over seven hours. Daily rates of pay are
thereby increased from $11.85 to $13.05, or about
10 percent, but because of the 15 percent reduction
in hours worked while earning th at pay, it is estimated
th at the labor cost to the mine operators has increased
about 25 percent.
Vacations. The entire industry will close down from
June 26, 1948, to July 5, inclusive. All workers who
have been on the payroll for at least one year will
receive vacation pay of $100. The union also retains
the right to designate “memorial periods” upon
proper notice.
Welfare Fund. The royalty payment is increased
from five cents to ten cents a ton, and the funds
accumulated under Government operation are to be
transferred to three trustees, of whom one is appointed
by the miners, one by the operators and one by
these two.
Exemptions. Mine foremen and assistants, coal in­
spectors, weigh bosses, watchmen, and clerks are not
covered by the agreement.
Grievances. Local disputes are to be settled by an
arbitration umpire selected jointly by the operators
and the union. National disputes are to be settled
by collective bargaining between the parties.
Safety. The Federal Mine Safety Code is desig­
natedfor as
the criterion of mine safety. Each local
Digitized
FRASER


union is to appoint a safety committee to inspect all
properties and equipment with authority to remove
all workers from any immediate danger area.
Duration. Although the new agreement is to run
to June 30, 1948, it has been provided th at the miners
are to work only “ if willing and able” to do so.

Economic
Implications

Coal production was resumed early
in July and other sectors of the
economy were enabled to continue
production with a minimum of disruption. The costs
of a long strike are incalculable in terms of wages and
product lost. Exports of coal so essential for the
recovery of Europe can now continue and unneces­
sary hardship in th a t area has been avoided. Against
these obvious benefits must be weighed both shortand long-term costs.
First, unless productivity-per-man increases notice­
ably, output of coal will be smaller than during the
first half of 1947 when the weekly average of about
12.5 million tons was barely enough to meet domestic
and export requirements. Estimates of production
for the first two weeks following resumption of
mining are not too reassuring.
The National Coal Association reported bitu­
minous coal output of 6.2 million tons for the short
week ended July 12 and only 12 million tons for the
week ended July 19. In the last week before the
miners stopped work, 12.9 million tons were pro­
duced. The present work week provides for *15
percent less working time.
It is obvious th a t 12 million tons of coal a week
are not sufficient to sustain domestic industry at its
present high level of activity and also to supply
essential fuel to the European economy. Coal
exports in May approximated 8.4 million tons.
Conceivably, production could be augmented by
Saturday work at premium pay rates. It is reported,
however, th at but few mines this past year were
able to work a full six days because of inability to
recruit a labor force for the sixth day even at over­
time pay. The new wage scale with its larger takehome pay may exaggerate this condition. More­
over, because of the “willing and able” clause, there
is no assurance th at production will be continuous
through the next twelve months.
Second, basic costs in nearly every industry have
increased. Prices for coal were raised immediately
from 75 cents to $1.25 per ton. This rise in fuel
costs has affected steel, pig iron, metal working indus­
tries, cement, electric utilities, railroads, refractories,
clay construction materials, and countless others.
Some industries may absorb some or all of the addi­
tional costs, but reports indicate th at many will pass
them along to their customers. Fuel prices for
household consumers have also been increased. When
coupled with the outlook for feed grains, these
increases point to generally higher prices.

6

MONTHLY BUSINESS REVIEW

Third, this new coal agreement has induced
demands for further wage increases by unions which
reached agreements earlier in the year. The rubber
and pottery unions, for example, are requesting
reopening of contracts.
Fourth, the long run competitive position of coal is
further weakened for the day when adequate pipe
lines will enable the flow of gas and oil to be increased.
Moreover, higher coal prices tend to stimulate the
use of petroleum and to hasten the depletion of this
valuable resource. Large and well-financed bitu­
minous mines can offset part of the wage increase with
better mechanization and greater capital investment,
but the smaller and marginal mines will be hard
pressed to meet this competition. Fewer mines and
miners and larger mining companies may well be
the end-product of the new high level of coal prices.
The accompanying chart shows the trend of
bituminous coal and lignite prices from 1911 to the
present time. These figures represent the annual
average value per ton, f. o. b. mine. From a low
point of #1.11 per ton, prices rose steadily during
and after World W ar I to a peak of $3.75 in 1920.
For the next twelve years coal prices receded and
reached a low of $1.31 in 1932. In the ensuing
recovery the rise has been particularly steep since
1940, when the greatest wage increases occurred.
The Bureau of Mines preliminary estimate for
1946 was an f. o. b. mine value of $3.40. Assuming
a conservative average increase of 80 cents a ton as
a result of the recent wage agreement, prices for the
whole of 1947 would average about $3.80 a ton since
this increase would apply only to the last six months
of the year. On an annual basis the increase of 80
cents would carry coal prices to $4.20, or the highest
level in modern industrial history. Due to the
extremely strong position of labor in the mines, there
is little likelihood th a t a price collapse similar to that
of 1920 is imminent.

Strip Mining
in Ohio
minous coal.
1948.

The General Assembly of the State
of Ohio has approved legislation
regulating the strip mining of bitu­
The act becomes effective January 1,

August 1, 1947

Strip operators will be required to obtain annually
a $50.00 permit from the Division of Mines. In
addition, a performance bond m ust be posted with
the Division of Mines at the rate of $100 per acre
for the land the operator estimates will be stripped
in the ensuing year. Liability under such bond will
continue for the duration of the particular operation
and for five years thereafter, unless released by the
Division.
To obtain a release of bond, strip operators are
required by the act to do the following:
1. Cover the exposed face of the unmined coal at
the base of the pit with overburden to a depth of at
least three feet.
2. Seal off with an earth fill any break-through to
underground workings in the coal.
3. Provide access roads and fire lanes on the areas
of land affected for the purpose of the prevention and
suppression of fire in accordance with a prescribed
plan approved by the state forester.
4. Level off all peaks and ridges of spoil banks to a
minimum width of 15 feet cross section.
5. If drift mining is to be continued at the premises,
these locations must be designated and it shall not be
necessary to replace the overburden on the haulage
way to the coal until such mining is completed.
6. Within one year after strip mining operations
on the premises are term inated, the operator shall
plant trees, shrubs, or grasses upon the land affected
at a cost not in excess of $50 an acre. The planting
must be done in accord with a plan approved by the
director of the Ohio Agricultural Experiment Station
and designed for soil building, erosion control, water
conservation or flood control as best determined by
the director. All required planting shall be done in
the normal planting season with reasonable diligence
by the operator. In cases of forest planting, the oper­
ator may elect the type of tree and decide whether
the future use is to be for lumber, pulpwood, or some
other purpose. The trees, shrubs, or grasses are to
become the property of the land owner unless other­
wise agreed.

B itu m in ou s Coal Prices
(Annual Average Value F. O. B. Mine)
D O LLAR S
PER TO N




D O LLA R S
PER T O N

The operator must file a detailed planting report
and within one year the director shall inspect the
premises. If the work has been done in a workmanlike
manner, and in accordance with the recommended
plan, the director shall certify performance and
recommend a release of bond.
Assurance th at the conservation plan will be carried
out seems to be guaranteed by the additional require­
ment th a t the bond per acre shall be raised to $200
upon filing of an annual report of the exact extent of
stripping accomplished during the year or upon com­
pletion of the operation if prior to th at time.
Failure to obtain a permit before stripping opera­
tions begin, carries a penalty of from $100 to $1,000
per day.

August 1, 1947

MONTHLY BUSINESS REVIEW

If restoration of stripped land is carried forward as
provided by this legislation, it should do much to
restore the land to some sort of productive use. These
uses might range from profitable reforestation to
grazing or recreational opportunities which would in­
clude hunting, fishing, and boating. Such develop­
ment would go far toward meeting the strenuous
objections th at have been raised in the past against
the destructiveness of strip mining of coal.
While it is not yet possible to estimate the per-toncost of carrying out this program, it is certain to be
substantial and will tend to narrow somewhat the
present differential between strip and deep - mining
costs.
On the other hand, the increase in reclamation cost
is more than offset by the recent coal-wage settlement
which increased wages 31-20 a day and shortened
working hours. In Ohio mines, the strip miner pro­
duces about four times the tonnage of the underground
worker. Hence, a wage increase on an hourly basis
bears much less heavily on the strip operator and
increases his competitive advantage.
The steadily rising wage scale in the coal industry
has greatly stimulated strip mining. In Ohio, only
9.7 percent of the 21,000,000 tons of coal produced in
1935 was strip mined. By 1940, 21 percent of produc­
tion was stripped. In 1945, however, production of
coal had risen to 31,500,000 tons and 41 percent was
strip mined. In the last decade, tonnage of Ohio strip
mines has increased six-fold while the output of deep
shaft mines has remained virtually stationary.

Steel

Production of steel in the United States for
the first half of 1947 amounted to about
42,250,000 tons or a rate of 93.4 percent of capacity.
Output in the like period of 1946 was hampered by
labor disputes and totaled only 27,350,000 tons. June
operations were reduced about 375,000 tons from May
and approximately 6,950,000 tons of steel ingots and
steel for castings were produced.
The shortage of coal and the uncertain outlook for
continued production after the coal miners’ annual
holiday served to reduce steel output to 73 percent
of capacity during the first week of July, a new low
for the year to date. By mid-July, the national steelmaking rate had rebounded to about 90 percent
according to Steel.
Mill operations in the District were particularly
hard hit due to the fact th at coal inventories tend to
be smaller in this region than in areas located at
greater distances from the coal fields. At the low
point, production sank to 33 percent at Cleveland,
40 percent at Youngstown, 42 percent at Pittsburgh,
63 percent at Wheeling, and 72 percent at Cincinnati.
District production rates at the end of July accord­
ing to Steel had risen to 99% percent of capacity in
Pittsburgh, 92 percent in Cleveland, 86% percent in
Wheeling, 90 percent in Youngstown, and 87 percent
in Cincinnati.
The new coal-wage settlement has had an inflation­
the ferrous industry. Early

ary for
effect
upon prices in
Digitized
FRASER


7

price advances included: steel-making scrap, up 31 to
35 a ton; pig iron, up 33.00 to 33.50 a ton; beehive
coke, up 32 to 33 a ton; bituminous coal, up 75 cents
to 31-25 a ton. Late in July, several im portant steel
producers advanced their selling prices on various
finished products from 36 to 310 per ton. Hot-rolled
products were up about 36 and cold-rolled items
about 37. Nails were increased as much as 310 per
ton. These prices not only reflect greater coal costs,
but also the higher steel wage scale in effect since
April and the rapidly advancing cost of steel scrap.
The extent to which such price adjustments will be
passed along by manufacturers of consumer and in­
dustrial equipment will depend upon individual cir­
cumstances. Margins in many cases seem adequate
to absorb at least some of the cost increments.
Despite the higher price structure which appears
inevitable, the coal settlement is likely to assure high
level steel production for some time to come and to
advance the date when the supply and demand for
ferrous metals will be brought into better balance.
Blast furnaces in the United States consumed about
6.250.000 gross tons of iron ore in June according to
the Lake Superior Iron Ore Association. Total con­
sumption for the first half of the year amounted to
38.750.000 gross tons as compared with 23,100,000 tons
in the first six months of 1946. Stocks of iron ore at
furnaces and on Lake Erie docks were 21,000,000 tons
on July 1, 1947, as compared with 25,750,000 on the
same date last year.
On July 15, there were 273 American Great Lakes
Ore vessels in service with a total trip capacity of
2,673,650 tons as compared with 257 boats a year ago
with a trip capacity of 2,600,000 tons. These capacity
figures are based on a 20-foot draft.

Iron The index of foundry equipment sales reached
a new peacetime high in June at a level of 650
(1937-9 = 100) as compared with 549 for the previous
month and 492 in June 1946. The index includes
net orders closed for both new equipment and repair
jobs.
Shipments of gray iron castings in May continued
above the million-ton level for the fifth successive
month when a new record of 1,097,307 tons slightly
bettered the April total. Cumulative shipments for
the first five months of 1947 total 5,372,000 tons as
compared with 3,788,000 tons for the like period
in 1946.
Malleable iron casting shipments declined eight
percent in M ay from April to reach a level of 75,500
tons. Shipments, however, were 21 percent above
May 1946.

Rubber Consumption of natural and manufactured
rubber by domestic manufacturers averaged
97,400 long tons per month for the first five months of
the year according to estimates of the Rubber M anu­
facturers Association. This represented an increase of
17.5 percent over the corresponding period in 1946.
In addition, about 25,000 tons a month of reclaimed
rubber were used.

8

August 1, 1947

MONTHLY BUSINESS REVIEW

The composition of the rubber consumed, however,
has changed radically. The use of natural rubber has
increased 218 percent to a monthly average of about
43,250 long tons while consumption of manufactured
rubber has dropped 22 percent to a monthly average
of 54,100 long tons. About 15 percent more reclaimed
rubber was consumed in the first five months of the
year.
The easing of the natural rubber supply was re­
flected in a new directive issued by the rubber division
of the Departm ent of Commerce, effective July 14.
Foamed latex products may incorporate use of natural
rubber up to 75 percent instead of the former 50 per­
cent. Products which previously were prohibited
from using natural rubber, may now contain it up to
10 percent of hydrocarbon content by weight. Special
limitations on use of pale crepe types of rubber have
been removed.
Allocation and inventory controls on general purpose
synthetic rubber were eliminated as well as quantita­
tive controls over natural rubber latex. Small users
of either natural or manufactured rubber need no
longer report their operations. Existing limitations
on the use of natural rubber in automotive tires were
continued although the Commerce Departm ent in­
dicated th at changes would be made this month.
The Office of Rubber Reserve has announced that
a Government-owned synthetic rubber plant in Los
Angeles, with an annual capacity of 30,000 tons, will
be closed at the end of the summer to bring production
of manufactured rubber into closer balance with de­
mand.
Shipments of passenger car casings by factories in
May were virtually unchanged from April and totaled
about 5,900,000 units. Production declined three per­
cent to 6,525,000 casings and factory inventories rose
14.5 percent to about 5,000,000 casings.
Factory operations for the year through May have
resulted in an increase in passenger tire production of
30 percent, an increase in shipments of 19 percent,
and a rise of 111 percent in inventories.
The m arket for both passenger and truck and bus
casings has changed substantially from the comparable
period in 1946.
First 5 M onths
1947
1946

Percentage
Change

Passenger Casings:
Shipm ents:
Original Equipm ent
R eplacem ent...........
E x p o rt......................

7,970,000
21,450,000
700,000

2,815,000
22,295,000
210,000

+ 183%
4
+233

T O T A L ................

30,120,000

25,325,000

+ 19

2,450,000
4,050,000
690,000

1,330,000
4,730,000
310,000

+ 84%
- 14
+ 123

Truck and Bus Casings:
Shipment®:
Original Equipm ent
R eplacem ent...........
E x p o rt......................

T O T A L ................
7,190,000
6,370,000
Source: The Rubber M anufacturers’ Association.



+ 13%

The demand for tires for original equipment has
increased substantially and reflects the higher rate of
output achieved by the automotive industry. Re­
placement demand, on the other hand, has slacked-ofF
with the greatest relative decline taking place in the
truck and bus types. As the domestic demand is being
met satisfactorily, exports have increased consider­
ably. May exports of passenger car tires in 1947 were
almost as large as the total for the first five months
of 1946.

Consumer Production of the major consumer durDurable
able goods in the first six months of
Goods
1947 established new records in nearly
every line. The accompanying table
compares monthly average factory sales or shipments
for 1941 with the first six months of 1947.
M onthly Average Factory Sales
1941
18,000
139,094

6 M onths
Percentage
1947
Change
44,718
+148%
300,370f
+H6

Electric Iro n ers........
Vacuum Cleaners**. .
Washing Machines. . .
(electric and gasoline)
163,324
334,318
+ 105
Gas R anges**.............
125,000
178,OOOf
+42
1,019,832
1,435,107
+ 41
R adios*........................
Electric R a n g e s .........
56,988
74,645f
+31
Electric Refrigerators.
275,297
237,145^
— 14
t Five months.
* Production.
** Shipments.
Sources: American W asher and Ironer M anufacturers’ Assoc.,
Vacuum Cleaners M anufacturers’ Assoc., N ational Electric
M anufacturers Assoc., Radio M anufacturers Assoc., and Bureau
of the Census.

W ith the exception of electric refrigerators, the unit
volume of all items produced and sold is greatly above
that of 1941. Refrigerator manufacturers are reported
to be having difficulty in obtaining sufficient sheet
steel and in some cases electric motors. Range manu­
facturers are likewise holding down production be'cause
of the lack of ferrous metals.
Of the seven classes of durable goods, vacuum
cleaners and radios are the only ones reported by
retailers to be in sufficient supply to offer consumers
a complete selection from which to choose different
makes, models, and price lines.
The Radio M anufacturers’ Association reports a
better balanced production for the first six months of
1947 as compared with 1946. Table model radios
which represented 77 percent of output in 1946
dropped to 63 percent this year. Console production
rose from 7 percent to about 11 percent, with 93 per­
cent of these being radio-phonograph combinations.
Production of FM-AM receivers has increased sharply
from last year as well as output of television sets.
In the washing machine field, representative re­
tailers report th at immediate delivery of some makes
of spinner and automatic type machines can be
obtained. Total industry sales in June were 349,000
machines and of these, 106,000 machines were of the
spinner and autom atic varieties.
(iContinued on Page 12)

9

MONTHLY BUSINESS REVIEW

August 1, 1947

SUMMARY OF NATIONAL BUSINESS CONDITIONS
B y the Board of Gooernors of the Federal Reserve System
(Released for Publication July 30, 1947)
Industrial production declined som ewhat further in
June and the early part of July. Value of retail trade
continued to show little change, after allowance for
seasonal changes. Prices o f commodities traded in the
organized m arkets generally advanced, and prices of
coal and iron and steel were increased.

Industrial Production
T otal o u tp u t of m anufactures
ured by the Board’s seasonally
reached a postwar peak of 190
average in M arch, had declined
further reduction is indicated in

and minerals, as meas­
adjusted index, which
percent of th e 1935-39
to 183 by June and a
July.

D urable goods production continued to decline slightly
in June, reflecting mainly fu rth er small reductions in
demand for various m etals and metal products and
building m aterials. Automobile passenger car produc­
tion, however, which has been limited by the available
supply of steel sheets, increased in June. In July the
rate of autom obile production was reduced again, reflect­
ing partly a tem porary curtailm ent in supplies of steel.
Production o f steel was curtailed in the early part of
July as a result partly of uncertainties surrounding the
signing of a new wage contract in the bituminous coal
industry, but at the end of Ju ly steel operations again
were scheduled at a rate of 94 percent of capacity.
Contraction in nondurable goods production continued
in June, reflecting chiefly earlier declines in domestic
demands for these goods as well as some slackening in
export demands. F urth er reductions in o u tp u t in the
textile industry accounted for most of the decline in
June, but there were also decreases in activity in most
other nondurable goods lines except meat-packing#
petroleum refining, and new sprint consum ption.

and amounted to 75,000 units as compared with 65,000
in June 1946.

D istribution
D epartm ent store sales in June and th e first three
weeks of Ju ly showed about the usual seasonal decline
and were 6 percent greater th an in the same period last
year. The B oard’s seasonally adjusted index of sales
was about 290 percent of th e 1935-39 average in M ay
and June as compared with 270 during th e first four
months of the year. Value of sales a t most other retail
stores, after allowance for seasonal changes, has been
slightly lower in recent m onths th an during th e first
qu arter of the year.
Despite a marked expansion in grain shipm ents in June
and the early p art of Jjuly, totlal loadings of railroad
revenue freight declined considerably, reflecting the
tem porary curtailm ent in coal shipm ents in this period
and a further decline in shipm ents of m anufactured
goods.

Com m odity Prices
Prices of commodities traded in the organized markets
generally advanced som ewhat in June and the early part
of July. Prices of coal, pig iron, and various steel products
were also increased in this period. Wholesale prices of
chemicals and some other products were reduced. Toward
the end of the m onth prices of w heat and cotton declined
considerably.
Retail prices of foods increased som ewhat in June
and the consumers’ price index of the Bureau of Labor
Statistics, at 157 percent of th e 1935-39 average, was
slightly above th e M arch peak.
Treasury Finance and Bank Credit

Production of minerals decreased som ewhat in June
as a decline in production of bituminous coal more than
offset gains in o u tp u t o f an thracite and crude petroleum.

Em ploym ent
E m ploym ent in most types of nonagricultural establish­
ments continued to show little change in June, after
allowance for seasonal changes. F urther reductions in
employment in the textile and rubber industries were
offset by increased em ploym ent in automobile plants and
in some non-m anufacturing lines.

C onstruction
Value of construction contracts awarded, as reported
by the F. W. Dodge C orppration, declined 10 percent
from M ay to June, reflecting chiefly a fu rth er decrease
in awards for most types of private construction. Awards
for public construction, following increases in earlier
m onths of the year, showed little change. New dwelling
units started , according to prelim inary estim ates of the
Bureau of Labor S tatistics, continued to increase in June



On July 2, the Federal Open M arket Com m ittee of
the Federal Reserve System directed the Federal Reserve
Banks to term inate th e policy of buying all bills offered
at the fixed rate of % percent and to term inate the repur­
chase option privilege on Treasury bills; the new policy
applied to bills issued on or after July 10. The average
rates bid on the weekly bill offerings rose to .74 percent
for the issue of July 24.
Additions to m onetary gold stock during June and the
first three weeks of July, together with a return flow of
currency from circulation during July following a seasonal
increase prior to July 4, resulted in a growth in member
bank reserve balances. Required reserves increased,
reflecting a further growth in deposits at member banks.
Commercial and industrial loans at banks in leading
cities outside New York increased som ewhat between
early June and m id-July, following a decline which had
been in progress since early April. Real estate and consumer loans continued to increase. G overnm ent security
holdings at banks in leading cities increased by over
600 million dollars between June 4 and July 16 with most
of the additions at New York city banks.

MONTHLY BUSINESS REVIEW

10

August 1, 1947

DEPARTMENT STORE TRADE STATISTICS
S a le s b y

D e p a r tm e n ts— J u n e ,

Inventories by Departments—June 30, 1947

1947

A s c o m p a r e d w ith a y e a r ago
( C o m p ile d J u l y 26, a n d r e le a s e d fo r p u b l i c a t i o n J u l y 29)
M a jo r H o u s e h o ld A p p l i a n c e s .........................................................................................
+80%
D o m e s tic F lo o r C o v e r in g s ...............................................................................................
S p o r tg o o d s ( in c lu d in g C a m e r a s ) ..................................................................................
+14
M e n ’s C l o t h i n g .......................................................................................................................
+12
S ilv e r w a r e a n d J e w e l r y ......................................................................................................
N o t i o n s ........................................................................................................................................
+ 7
I n f a n t s ’ W e a r ...........................................................................................................................
+ °
M e n ’s a n d B o y s ’ S h o e s ......................................................................................................
+ 6
C o t to n W a s h G o o d s ............................................................................................................
+ °
C o r s e ts a n d B r a s s i e r e s ........................................................................................................
+ 7
N e c k w e a r a n d S c a r f s ...........................................................................................................
+ 4
R e s t a u r a n t s ...............................................................................................................................
+ 4
L a m p s a n d S h a d e s ................................................................................................................
+ 4
D r a p e r ie s a n d C u r t a i n s .....................................................................................................
+ 3
C h i n a a n d G l a s s w a r e ..........................................................................................................
+ 2
B e a u t y S a l o n .....................................................................................................
D re s s e s ( W o m e n ’s a n d M is s e s ’) ............................................................
L u g g a g e ................................................................................................................
H p ” s c w a r e s ........................................................................................................
M A I N S T O R E T O T A L ..........................................................................
2
M e n ’s F u r n is h in g s ( H a t s a n d C a p s ) ..................................................
2
A r t N e e d le w o r k a n d A r t G o o d s ..................... .................................
3
G l o v e s ....................................................................................................................
- 3
F u r n i t u r e a n d B e d s .................................................................................
3
B o o k s a n d S t a t i o n e r y ..................................................................................
- 4
M i l l i n e r y ..............................................................................................................
4
W o m e n ’s U n d e r w e a r ....................................................................................
- 5
S h o e s ( W o m e n ’s a n d C h i ld r e n ’s ) ........... ..............................................
- 5
D o m e s tic s a n d B l a n k e t s . . .......................................................................
6
B o y s ’ C l o th i n g a n d F u r n i s h i n g s ...........................................................
6
B lo u s e s, S k i rt s a n d K n i t G o o d s ............................................................
- 9
J u n i o r s ’ a n d G i r ls ’ W e a r ................... .• • • ...............................................
9
C o a t s a n d S u its ( W o m e n ’s a n d M is s e s ’) .........................................
H a n d k e r c h i e f s ..........................................................................................................................
—
S ilk s a n d V e lv e ts (W o o le n D r e s s G o o d s ) ...............................................................
—
L a c e s a n d T r i m m i n g s ..........................................................................................................
— j*
P h o t o g r a p h i c S t u d i o ..................... .......................................................................................
— j*
T o i le t A r tic le s a n d D r u g S u n d r i e s ..............................................................................
T o y s a n d G a m e s .....................................................................................................................
_ 10
A p r o n s a n d H o u s e d r e s s e s ..................................................................................................
—in
L e a t h e r G o o d s ( S m a l l ) .................. . ..................................................................................
_
H o s ie ry ( W o m e n ’s a n d C h i ld r e n ’s ) .............................................................................
F u r s .................................................................................................................................................
~ 46
T h e re c o r d le v e l o f F o u r t h D i s t r i c t d e p a r t m e n t s to r e t r a d e e s ta b l is h e d in
M a y d id n o t h o ld t h r o u g h J u n e e v e n a f t e r a llo w in g fo r t h e n o r m a l s e a s o n a l

+ 1
-0- 1
- 1
- 1

shrinkage.
Main store sales in June were below a year ago, although basem ent store
volum e (not shown on accom panying table) was up 13 percent for the year.
T he w idest year-to-year declines in the upstairs-store departm ents occurred
in w om en’s and misses’ ready-to-w ear apparel. The m ost im portant decreases
in th a t section were recorded in a p r o n s , e tc ., off 19 percent, and the low est
in three years. W o m e n ’s a n d m i s s e s ’ c o a t s a n d s u i t s , as w e ll as j u n i o r s
a n d g ir ls ’ w e a r , were 9 percent below a year ago.
Several item s o f ready-to-w ear accessories reached the low est sales volum e
in three years. A m ong them were w o m e n ’s a n d c h il d r e n ’s h o s ie r y , 23
percent below June 1946; s m a l l l e a t h e r g o o d s, off 19 percent; h a n d k e r ­
c h i e f s , 10 percent lower; w o m e n ’s a n d c h il d r e n ’s s h o e s , w ith a decline ot
5 percent; and g lo v e s , off 3 percent.
Sales o f t o i l e t a r t i c le s a n d d r u g s u n d r ie s , etc., likew ise were the low est
for the month since 1944, T he volum e in t o y s a n d g a m e s since the first
o f the year has persistently fallen short o f th e 1946 rate.
A t th e other extrem e, in a num ber o f house furnishing lines, June^ sales
were the highest on record for th e m onth. M a jo r h o u s e h o l d a p p lia n c e
departm ents had one o f the best m onths on record. Sales o f this merchandise
have fluctuated w ithin a com paratively narrow range but at record-high levels
for th e past nine m onths.
O ther item s o f home furnishings reporting record sales for the m onth were
d o m e s t ic flo o r c o v e r in g s , w ith a 19 percent gain over last year; la m p s
a n d s h a d e s , up 4 percent; d r a p e r ie s a n d c u r t a i n s , up 3 percent; and
c h in a a n d g la s s w a r e , w ith an increase o f 2 percent.
Dollar volum e was also th e highest for any June on record in s p o r t g o o d s
departm ents, up 14 percent; m e n ’s c l o t h i n g , up 12 percent; m e n s a n d
b o y s ’ s h o e s , up 6 percent; s ilv e r w a r e a n d je w e lr y , up 11 p e r c e n t;in fa n ts
w e a r , up 6 percent; and c o r s e t s a n d b r a s sie r e s, where dollar sales were
4 percent above 1946.
,
.
Changes in u nit volum e are n ot necessarily com parable to the foregoing
changes show n in dollar volum e.
In d ex e s

o f

D e p a r tm e n t

S to r e

S a le s

a n d

S to c k s

D a i ly A v e r a g e fo r 1 9 3 5 - 1 9 3 9 = 1 0 0
S e a s o n a l V a r ia t io n '
Ju n e
June
M ay
1946
1947
1947
SA LES:
A k ro n ( 6 ) .............
C a n t o n (5)
C i n c in n a t i (8) . .
C l e v e la n d ( 1 0 ) . .
C o lu m b u s ( 5 ) . . .
E r ie ( 3 ) .................
P i t t s b u r g h (8 ) . .
S p r in g fie ld ( 3 ) . .
T o le d o ( 6 ) ............
W h e e lin g (6) . . .
Y o u n g s to w n ( 3 ).
D i s t r i c t (9 5 )
STO CK S:
D i s t r i c t ..................
for rFRASER
R e v is e d .

Digitized


W ith o u t
S e a so n al A d ju s tm e n t
June
June
M ay
1946
19 4 7
1947

305
3 44
314
271
327
303
254
289
272
248
307
284

299
361
3 03
274
324
312
259
282
264
231
322
298

308r
314
301
251
320r
285
2 55
266
260
265
298
272r

281
330
283
249
304
269
251
287
253
221
288
267

290
347
309
258
314
294
269
294
264
248
315
283

283r
301
271
231
297r
253
253
264
242
236
280
256r

231

238

206

222

241

198

As c o m p a re d w ith a y e a r ago
( C o m p ile d J u l y 3 1 , a n d r e le a s e d f o r p u b l ic a ti o n A u g u s t 1)
M a jo r H o u s e h o ld A p p l i a n c e s ................ ....................................................................
+330%
M e n ’s C l o t h i n g .....................................................................................................................
+147
M e n ’s a n d B o y s ’ S h o e s ....................................................................................................
+110
D o m e s tic F lo o r C o v e r i n g s .............................................................................................
+ 97
S h o e s (W o m e n ’s a n d C h i ld r e n ’s ) ...............................................................................
+ 76
S p o r t G o o d s ( I n c l u d in g C a m e r a s ) ............................................................................
+ 57
C o t t o n W a s h G o o d s ...........................................................................................................
+ 56
H o s ie ry (W o m e n ’s a n d C h i ld r e n ’s ) ..........................................................................
+ 49
S ilk s a n d V e l v e t s .................................................................................................................
+ 38
M e n ’s F u r n is h in g s ( I n c l u d in g H a t s a n d C a p s ) . . . .......................................
+ 36
F u r n i t u r e , B e d s, M a tt r e s s e s a n d S p r i n g s ............................................................
+ 35
C h in a a n d G l a s s w a r e ........................................................................................................
+ 27
D r a p e rie s a n d C u r t a i n s ...................................................................................................
+ 23
A p r o n s , H o u s e d re s s e s a n d U n i f o r m s .......................................................................
+ 20
C o r s e ts a n d B r a s s i e r e s .....................................................................................................
+ 16
D o m e s tic s , B l a n k e ts a n d T o w e l s ..............................................................................
+ 15
M A I N S T O R E T O T A L ...............................................................................................
+ 11
W o m e n ’s U n d e r w e a r .........................................................................................................
+ 11
S ilv e r w a r e a n d J e w e l r y ....................................................................................................
+
9
L u g g a g e .....................................................................................................................................
+
5
H o u s e w a r e s .............................................................................................................................
+
3
D re s s e s ( W o m e n ’s a n d .M isse s’) .................................................................................
— 4
B o o k s a n d S t a t i o n e r y .......................................................................................................
— 8
B o y s ’ C lo th in g a n d F u r n i s h i n g s ................................................................................
— 9
M i l l i n e r y ...................................................................................................................................
— 9
N o t i o n s ......................................................................................................................................
— 10
L a c e s a n d T r i m m i n g s .............................................................. .......................................
- 12
T o i le t A r tic le s a n d D r u g S u n d r i e s ...........................................................................
— 14
A r t N e e d le w o r k a n d A r t G o o d s .................................................................................
— 17
L a m p s a n d S h a d e s ..............................................................................................................
— 19
I n f a n t s ’ W e a r .........................................................................................................................
— 19
T o y s a n d G a m e s ..................................................................................................................
— 23
G l o v e s .........................................................................................................................................
— 24
N e c k w e a r a n d S c a r f s .........................................................................................................
— 26
H a n d k e r c h ie f s ........................................................................................................................
— 26
L e a t h e r G o o d s ( S m a l l ) ....................................................................................................
— 30
C o a t s a n d S u its ( W o m e n ’s a n d M is s e s ’) ..............................................................
— 32
F u r s .............................................................................................................................................
— 37
J u n i o r s ’ a n d G i r ls ’ W e a r ................................................................................................
— 40
B lo u s e s, S k irts a n d K n i t g o o d s .................................................................................
41
A l th o u g h d e p a r t m e n t s to r e s to c k s d e c lin e d f o r t h e t h i r d c o n s e c u t iv e m o n th
d u r in g J u n e a n d re a c h e d a n e w lo w f o r t h e y e a r , t h e J u n e 30 fig u re w a s s ti ll
11 p e r c e n t a b o v e t h e s a m e d a t e in 19 4 6 w h e n i n v e n t o r ie s w e re r is i n g r a p i d l y .
S o m e d e p a r t m e n t a l s to c k s , h o w e v e r , w e re m u c h lo w e r t h a n a t t h e s a m e
tim e l a s t y e a r. T h i s w a s p a r t i c u l a r l y t r u e w i t h r e s p e c t t o w o m e n ’s a p p a r e l
a n d a c c e s s o rie s .
S to c k s o f r e a d y - to - w e a r m e r c h a n d is e s u c h a s w o m e n ’s
a n d m is s e s ’ c o a ts a n d s u its , f u r s , ju n io r s ’ a n d g irls ’ w e a r, and b lo u se s ,
s k i r t s , e t c . , w e re 32 p e r c e n t t o 41 p e r c e n t b e lo w a y e a r a g o a n d t h e lo w e s t
fo r t h is tim e o f y e a r s in c e 1 9 4 4 . W o m e n ’s a n d m i s s e s ’ d r e s s e s , h o w ­
e v e r, w e re in r e l a ti v e ly b e t t e r s u p p ly , o n ly 4 p e r c e n t b e lo w last_ y e a r , w h ile
i n v e n t o r ie s o f a p r o n s a n d h o u s e d r e s s e s w e re a t a n a ll - ti m e h ig h f o r m id ­
s u m m e r, 20 p e r c e n t a b o v e J u n e 1 9 4 6 .
A m o n g r e a d y - to - w e a r a c c e s s o rie s , s to c k s o f g l o v e s , n e c k w e a r a n d s c a r f s ,
h a n d k e r c h i e f s , a n d s m a l l l e a t h e r g o o d s w e re 2 4 p e r c e n t t o 30 p e r c e n t
s m a lle r t h a n l a s t y e a r , a n d lo w e s t f o r t h e s e a s o n s in c e 1 9 4 4 o r lo n g e r . O n
th e o t h e r h a n d , h o s i e r y s u p p lie s w e re t h e l a r g e s t in f o u r y e a r s , a n d w o m e n ’s
a n d c h i l d r e n ’s s h o e s w e re a t a r e c o r d h ig h fo r t h e m o n th .
A s h a s b e e n t h e c a se f o r a n u m b e r o f m o n th s , t h e g r e a t e s t y e a r - t o - y e a r
g a in s in i n v e n t o r y o c c u rr e d in t h e h o u s e fu rn is h in g s a n d m e n ’s a n d b o y s ’
w e a r s e c tio n s .
S to c k s o f m a j o r h o u s e h o l d a p p l i a n c e s t o p p e d a ll p re v io u s
r e c o r d s fo r a n y m o n th . A t a n a ll - ti m e h ig h f o r t h e s e a s o n w e re : d o m e s t i c
f l o o r c o v e r i n g s , u p 9 7 p e r c e n t ; f u r n i t u r e , b e d s , e t c . , u p 35 p e r c e n t ; c h i n a
a n d g l a s s w a r e , u p 27 p e r c e n t ; d r a p e r i e s a n d c u r t a i n s , u p 23 p e r c e n t ;
a n d b l a n k e t s a n d l i n e n s , e t c . , u p 15 p e r c e n t . T h e e x c e p tio n in t h i s c la ss
o f m e r c h a n d is e w a s t h e l a m p s a n d s h a d e s d e p a r t m e n t w h e re i n v e n t o r ie s
w e re o ff 19 p e r c e n t .
M e n ’s c l o t h i n g s to c k s , a s w e ll a s m e n ’s a n d b o y s s h o e s , w e re t h e
h ig h e s t o f a n y J u n e 30 o n r e c o r d . T h e la r g e p e r c e n t a g e in c r e a s e s , h o w e v e r ,
a re p a r t l y a re f le c tio n o f t h e r e l a t i v e l y le a n i n v e n t o r y s i t u a t i o n o f a y e a r a g o .
S to c k s o f s p o r t g o o d s , u p 57 p e r c e n t , w e re t h e h i g h e s t o n re c o r d fo r t h e
m o n th , b u t t o y s a n d g a m e s s to o d a t a t h r e e - y e a r lo w fo r t h e s e a s o n .
T h e s e c o m p a r is o n s r e f e r t o d o l la r v o l u m e , a n d n o t to p h y s ic a l i n v e n t o r ie s .

June Department Store Sales by Cities*
C IT Y

( C o m p ile d J u l y 2 5 , a n d r e le a s e d f o r p u b l ic a ti o n J u l y 27)
% C h a n g e F r o m . S a l e s D u r i n g J u n e ( J u n e 19 4 1 = 100)
M a y ’4 7 J u n e ’4 6
1941
1943
1945
1946
1947

S p r in g f i e l d ...................
C o l u m b u s .....................
A k r o n .............................
C l e v e l a n d .....................

—
—

2
3
3
3

T o le d o
...
C a n t o n . . . . . ............. ......F o u r t h D i s t r i c t . ..
—
P i t t s b u r g h ................... ..... —

4
5
6
7

+
+
+

9
2
1
8

+ 4
+10
+ 4
— 1

E r i e ..................................
- 8
+ 6
C i n c i n n a t i ....................
— 9
+ 3
Y o u n g s t o w n ................
— 9
+ 3
W h e e l i n g .......................
-1 1
- 6
♦ B a s e d o n d a il y a v e r a g e s a le s .

100
100
100
100

144
145
134
122

159
186
156
141

186
248
203
186
208
199
198
193

100
100
100
100

133
142
120
106

160
156
144
131

100
100
100
100

131
127
114
114

147
159
151
161

194
223
199
219

202
254
201
201
217
218
206
191
207
230
205
205

D e p a r t m e n t s to r e s a le s in t h e F o u r t h D i s t r i c t in J u n e d e c lin e d s o m e w h a t
m o re t h a n s e a s o n a l ly f r o m t h e r e c o r d - b r e a k i n g M a y v o l u m e , b u t h e ld a b o v e
a y e a r a g o b y a 4 p e r c e n t m a r g in .

(Continued on Page 11)

August 1, 1947

11

MONTHLY BUSINESS REVIEW

FINANCIAL AND OTHER BUSINESS STATISTICS
Bank Debits*—June,

1947

Time Deposits—12 Fourth District Cities

( I n t h o u s a n d s o f d o lla r s )
( C o m p ile d J u l y 12, a n d r e le a s e d f o r p u b l ic a ti o n J u ly 14)
% C hange
3 M o n th s % C h a n g e
June
f ro m
E nded
f ro m
1947
y e a r ago
J u n e 19 4 7
y e a r ago
A L L 29 C E N T E R S .............. 3 6 ,0 6 8 ,4 4 7
+ 1 5 .8 %
£ 1 8 ,1 9 2 ,5 6 6
+ 1 7 .7 %
10 L A R G E S T C E N T E R S :
2 2 1 ,6 2 1
A k r o n . . . . .......................... O h io
C a n t o n ................................... O h io
9 8 ,7 0 5
C i n c i n n a t i ............................ O h io
7 9 7 ,6 5 3
C l e v e l a n d ............................. O h io 1 ,5 9 5 ,2 0 7
C o l u m b u s .............................O h io
4 4 5 ,5 2 8
D a y t o n .................................. O h io
2 1 7 ,4 1 4
T o l e d o .................................... O h io
3 6 1 ,6 7 6
Y o u n g s t o w n ....................... O h io
1 4 2 .9 0 6 H
E r i e .....................................P e n n a .
75,1 2 5
P i t t s b u r g h .......................P e n n a . 1 ,5 8 1 ,1 1 1

+ 0 .1
+ 1 6 .3
+ 1 6 .3
+ 1 3 .3
+ 1 9 .3
+ 2 1 .7
+ 1 8 .7
+ 4 1 .7
+ 7 .2
+ 1 7 .5

6 7 4 ,0 6 1
2 9 9 ,7 8 8 H
2 ,3 5 3 ,1 4 2
4 ,7 2 8 ,5 8 8
1 ,3 7 7 ,8 7 0 H
6 5 0 ,7 6 8
1 ,0 5 5 ,8 7 0
4 2 2 ,6 9 9 H
2 3 4 ,7 8 4
4 ,8 1 4 ,6 9 1

+ 7.2
+ 2 1 .4
+ 1 6 .9
+ 1 5 .7
+ 1 6 .1
+ 2 4 .1
+ 2 2 .4
+ 4 6 .1
+ 1 7 .2
+ 1 8 .9

+ 1 6 .0 %

3 1 6 ,6 1 2 ,2 6 1

+ 1 7 .9 %

( C o m p ile d J u l y 7, a n d r e le a s e d f o r p u b l ic a ti o n J u l y 9)
A v e r a g e W e e k ly C h a n g e D u r i n g :
5 W eeks
4 W eeks
4 W eeks
E nded
E nded
E nded
A p r . 3 0 , 1 9 4 7 M a y 2 8 ,1 9 4 7 J u n e 2 5 ,1 9 4 7
-3
1 0 5 ,0 0 0 + 3 2 7 8 ,0 0 0
+ 3 3 9 5 ,0 0 0
+
2 2 5 ,0 0 0 + 2 6 9 ,0 0 0
+ 3 4 0 ,0 0 0
+
4 7 4 ,0 0 0 3 2 ,0 0 0
6 6 ,0 0 0
+
2 0 4 ,0 0 0 + 1 7 8 ,0 0 0
+
5 9 ,0 0 0
+
3 5 ,0 0 0 +
5 0 ,0 0 0
5 3 ,0 0 0
+
9 3 ,0 0 0 6 7 ,0 0 0
+
7 8 ,0 0 0
+
1 5 ,0 0 0 4 4 ,0 0 0
+
4 8 ,0 0 0
+
3 4 ,0 0 0 +
7 0 ,0 0 0
3 3 ,0 0 0
+
7 7 ,0 0 0 1 1 ,0 0 0
1 0 ,0 0 0
+
1 2 1 ,0 0 0 +
1 9 ,0 0 0
+
1 9 ,0 0 0
+
3 1 ,0 0 0 +
2 0 ,0 0 0
1 1 ,0 0 0
+
1 0 ,0 0 0 2 9 ,0 0 0
+
2 2 ,0 0 0

C i ty a n d
T im e
N um ber
D e p o s its
of B anks
J u n e 25, 1947
C le v e la n d ( 4 ) ...........3 8 5 8 ,2 2 3 ,0 0 0
P itts b u rg h (1 3 ). . .
3 3 9 ,1 4 5 ,0 0 0
C i n c in n a t i ( 8 ) . . . .
1 8 3 ,5 5 1 ,0 0 0
A k r o n ( 3 ) ..................
1 0 2 ,3 3 9 ,0 0 0
9 0 ,2 4 7 ,0 0 0
T o le d o ( 3 ) .................
C o lu m b u s ( 3 ) ..........
7 1 ,7 7 9 ,0 0 0
Y o u n g s to w n (3 ) . .
5 3 ,3 7 8 ,0 0 0
D a y t o n ( 3 ) ................
5 0 ,0 6 3 ,0 0 0
3 9 ,9 1 8 ,0 0 0
C a n t o n ( 4 ) ................
E r ie ( 4 ) .......................
3 7 ,6 1 7 ,0 0 0
W h e e lin g ( 6 ) ............
2 8 ,8 3 3 ,0 0 0
L e x in g to n ( 5 ) ____
1 0 ,5 4 3 ,0 0 0
T O T A L — 12 C i t i e s 3 1 , 8 6 5 ,6 3 6 ,0 0 0

T o t a l ....................................... 3 5 ,5 3 6 ,9 4 6
19 O T H E R

CENTERS:

C o v i n g to n - N e w p o r t . . . . K y . 3 3 5 ,6 6 5
L e x i n g t o n ............................... K y .
5 0 ,5 6 8
H a m i l t o n .............................. O h io
33,5 2 1
3 7 ,7 6 5
L i m a ........................................O h io
L o r a i n .....................................O h io
1 6 ,2 5 9
M a n s f i e l d ..............................O h io
3 6 ,8 0 8 H
M i d d l e t o w n ........................ O h io
2 8 ,1 3 0
P o r t s m o u t h .........................O h io
1 8 ,8 1 0
S p r in g f i e l d ............................O h io
3 9 ,8 3 8
S t e u b e n v i l l e ........................ O h io
2 0 ,2 4 6
W a r r e n ...................................O h io
3 4 ,6 8 7 H
Z a n e s v il le ............................. O h io
2 5 .9 2 3 H
B u t l e r ................................ P e n n a .
2 7 ,1 5 2
6 ,8 7 8
F r a n k l i n ........................... P e n n a . /
G r e e n s b u r g ..................... P e n n a .
17,505
H o m e s t e a d ..................... P e n n a .
7 ,6 1 0
1 8 ,6 8 6
011 C i t y .............................P e n n a .
S h a r o n ............................... P e n n a .
2 2 ,3 2 3
W h e e l i n g ......................... W . V a .
5 3 ,1 2 7
T o t a l ........................................3

5 3 1 ,5 0 1

+ 0 .8 %
+ 4 .1
+ 2 2 .0
+ 1 8 .1
+ 2 9 .9
+ 2 7 .2
+ 8 .8
+ 2 3 .2
+ 1 1 .3
+ 5.5
+ 3 0 .5
+ 3 6 .3
+ 1 9 .5
— 4 .1
+ 8 .7
+ 8.5
+ 5.5
+ 1 5 .7
+ 7 .2

3

1 0 3 ,8 6 0
1 4 7 ,4 7 6
1 0 0 ,2 8 1 H
115,605
4 8 .5 4 9 H
1 0 7 ,4 3 3 H
8 3 ,9 0 2
57,515
1 2 5 ,6 6 8
6 1 ,5 6 0 H
1 0 2 ,7 0 7 H
7 1 ,2 2 9 H
8 1 .5 0 5 H
2 0 ,2 2 7
5 2 ,3 0 6
2 1 ,8 9 3
5 6 ,2 9 9
6 8 ,5 5 3 H
1 5 3 ,7 3 7

+ 3 .5 %
+ 7 .4
+ 2 7 .9
+ 2 1 .5
+ 3 3 .2
+ 3 1 .8
+ 1 5 .8
+22.1
+ 1 5 .5
+ 1 1 .4
+ 2 3 .8

+ 1 4 .0 %

3 1 ,5 8 0 ,3 0 5

+ 1 5 .7 %

+21.8
+ 1 7 .9
- 4 .0
+ 1 6 .6

+12.0
+ 4 .4
+ 2 1 .9
+ 5 .2

+ 3 1 ,2 1 3 ,0 0 0

+ 3 7 0 1 ,0 0 0

+ 3 7 8 8 ,0 0 0

T im e d e p o s its * a t 5 9 b a n k s in t h e l a r g e s t c itie s o f t h e F o u r t h . D i s t r i c t
a d v a n c e d to a n e w a ll - ti m e h ig h d u r in g t h e m o n th o f J u n e . T h e a v e r a g e
w e e k ly g a in a m o u n t e d to 3 7 8 8 ,0 0 0 , c o m p a r e d w i t h 3 7 0 1 ,0 0 0 in M a y a n d
3 1 ,2 1 3 ,0 0 0 in A p r il. T h e M a y a n d J u n e r a t e s o f in c r e a s e w e re t h e s lo w e s t
e x p e rie n c e d in t h e p o s tw a r p e rio d to d a te .
D u r i n g t h e s e c o n d h a l f o f 1946
t h e a v e r a g e w e e k ly in c r e a s e w a s a b o u t 3 1 ,8 5 0 ,0 0 0 , w h ile in t h e f ir s t h a lf o f
l a s t y e a r t h e fig u re w a s 3 3 ,5 0 0 ,0 0 0 .
D u r i n g J u n e , tim e d e p o s its in c r e a s e d in s e v e n o f t h e tw e lv e c itie s fro m
w h ic h r e p o r t s a re re c e iv e d . T h e o u t s t a n d i n g g a in s o c c u r r e d in C l e v e l a n d
and P itts b u r g h .
I n P i t t s b u r g h t h e a v e r a g e w e e k ly a d v a n c e w a s t h e
l a r g e s t r e p o r t e d s in c e J a n u a r y , w h ile t h e C l e v e l a n d fig u r e w a s t h e l a r g e s t
s in c e F e b r u a r y .
I n b o th c itie s c u r r e n t tim e d e p o s it t o t a l s a r e t h e h ig h e s t
on reco rd .
T im e d e p o s its a ls o m o v e d i n to r e c o r d h ig h g r o u n d d u r in g t h e m o n th in
A k ro n , C o lu m b u s , Y o u n g s to w n and E r ie .
A n in c r e a s e w a s lik e w is e
e x p e rie n c e d b y L e x i n g t o n , b u t t o t a l tim e d e p o s its in t h e r e p o r t i n g b a n k s
o f t h a t c it y a r e s till s li g h tl y b e lo w t h e a ll - ti m e h ig h r e c o r d e d in A p r il.
T o t a l t im e d e p o s its d e c lin e d s li g h tl y d u r in g J u n e in C i n c i n n a t i , T o l e d o ,
D a y to n , C a n to n and W h e e lin g .
A lt h o u g h t h i s w a s t h e s e c o n d s u c c e s s iv e
m o n th o f d e c lin e f o r C i n c i n n a t i a n d C a n t o n , t o t a l tim e d e p o s its in th o s e
c itie s a re o n ly a f r a c ti o n o f o n e p e r c e n t u n d e r t h e a ll- tim e h ig h s s e t in A p ril.
* R e p r e s e n t in g c h ie fly s a v in g s d e p o s its o w n e d b y i n d i v i d u a l s , b u t tim e
d e p o s its o f p a r t n e r s h i p s a n d c o r p o r a ti o n s a re a ls o in c lu d e d .

H d e n o te s n e w a ll - ti m e h ig h f o r o n e m o n th o r q u a r t e r - y e a r .
*

d e b its to a ll d e p o s it a c c o u n t s e x c e p t i n t e r b a n k b a la n c e s .

D u r in g t h e s e c o n d q u a r t e r o f 1947, b a n k d e b it s in 29 F o u r t h D i s t r i c t c it i e s
c o n ti n u e d to r u n w e ll a h e a d o f t o t a l s f o r l a s t y e a r . A g g r e g a te d e b it s f o r t h e
p a s t t h r e e m o n th s e x c e e d e d t h e fig u r e fo r t h e c o rr e s p o n d in g q u a r t e r o f a y e a r
a g o b y 18 p e r c e n t . T h i s in c r e a s e m a y b e c o m p a r e d w i t h y e a r t o y e a r g a in s o f
21 p e r c e n t in t h e firs t q u a r t e r o f t h is y e a r a n d 20 p e r c e n t in t h e l a s t q u a r t e r
o f 1946.
D u r i n g J u n e , t o t a l d e b it s w e r e 16 p e r c e n t h ig h e r t h a n a y e a r a g o , w h ile
c o rr e s p o n d in g fig u re s f o r A p ril a n d M a y w e re 18 a n d 2 0 p e r c e n t r e s p e c t i v e l y .
T h e d o l la r v o lu m e o f d e b it s in J u n e a m o u n t e d t o 3 6 ,0 6 8 ,0 0 0 ,0 0 0 , t h e h i g h e s t
m o n th l y fig u r e a t t a i n e d t h i s y e a r .

T E N L A R G E S T C IT IE S

Y oungstown led t h e la r g e c it i e s fo r t h e f o u r t h s u c c e s s iv e m o n th in p e r ­
c e n ta g e g a in o v e r y e a r a g o fig u re s . S e c o n d q u a r t e r d e b it s in t h a t c i t y t o t a l e d
4 6 p e r c e n t m o re t h a n in t h e c o m p a r a b le q u a r t e r o f 1 9 46. J u n e a n d s e c o n d
q u a r t e r d e b i t t o t a l s in Y o u n g s t o w n e s ta b l is h e d n e w a ll - ti m e h ig h s . D e b i t
t o t a l s f o r t h e s e c o n d q u a r t e r in Colum bus a n d Canton l ik e w is e w e r e a t
a r e c o r d h ig h le v e l.
T o t a l d e b i t s in J u n e a t t h e t e n l a r g e s t c e n te r s e x c e e d e d l a s t y e a r ’s f ig u r e
b y 16 p e r c e n t. C i ti e s , o t h e r t h a n Y o u n g s t o w n , w i t h p e r c e n t a g e s s ig n i f ic a n tl y
a b o v e t h a t f ig u re w e re Dayton ( 2 2 % ) , Colum bus ( 1 9 % ) , Toledo ( 1 9 % ) ,
a n d P ittsburgh ( 1 8 % ) .

NINETEEN SMALLER CENTERS
I n e ig h t o f t h e n i n e t e e n s m a lle r c e n te r s , d e b i t t o t a l s f o r t h e s e c o n d q u a r t e r
w e re a t a n a ll - ti m e h ig h . T h e e ig h t c it i e s w e r e H am ilton, Lorain, M ans­
field, Steubenville, Warren, Zanesville, B utler a n d Sharon.
I n Mansfield, Warren a n d Zanesville, J u n e fig u re s lik e w is e e s ta b l is h e d
n e w h ig h s . Zanesville d e b it s in J u n e e x c e e d e d t h e 3 2 5 ,0 0 0 ,0 0 0 m a r k f o r t h e
f ir s t t im e .

June Department Store Sales by Cities
(Continued from Page 10)
D o lla r-w is e , a g g r e g a t e s a le s w e re 106 p e r c e n t g r e a t e r t h a n in t h e c o m p a r ­
a b le m o n th in p r e w a r 1 9 4 1 .

Individual Cities
T h e M a y - J u n e d e c lin e w a s l e a s t p r o n o u n c e d in Springfield w h e re v o lu m e
d ro p p e d o n ly 2 p e rc e n t a n d ra n 9 p e rc e n t a h e a d o f J u n e 1946.
T h e s h r i n k a g e in Akron, Cleveland, a n d Columbus, lik e w is e w a s l im it e d
Digitized
for
to n o m
in aFRASER
l d im e n s io n s o f a ro u n d 3 p e r c e n t . Cleveland s to r e s r e p o r t e d a



Retail Trade
P e rc e n ta g e C h a n g e s
\
F r o m P r e c e d in g Y e a r
SA LES SA LES STO CK S
June
fir s t 6
Ju n e
1 9 4 7 m o n th s
19 4 7
D E P A R T M E N T S T O R E S (9 5 )
A k r o n .........................................................................................
— 1
+ 5
C a n t o n ......................................................................................
+10
+15
C i n c i n n a t i ...............................................................................
+ 3
+10
+ 8
+ 9
C l e v e l a n d ................................................................................
C o l u m b u s ................................................................................
+ 2
+ 7
E r i e .............................................................................................
+ 6
+12
P i t t s b u r g h ...............................................................................
— 1
+10
S p r in g f ie ld ...............................................................................
+ 9
+ 6
T o l e d o .......................................................................................
+ 4
+10
W h e e l i n g .................................................................................
— 6
— 3
Y o u n g s t o w n ..........................................................................
+ 3
+12
O t h e r C i t i e s ...........................................................................
+29
+28
D i s t r i c t .....................................................................................
+ 4
+10
W E A R I N G A P P A R E L (14)
C i n c i n n a t i ...............................................................................
— 7
— 3
C l e v e l a n d ................................................................................
-1 0
- 4
P i t t s b u r g h ...............................................................................
—16
— 8
O t h e r C i t i e s ............................................................................
— 3
+ 1
D i s t r i c t ......................................................................................
— 9
— 3
F U R N I T U R E (5 9 )
C a n t o n ......................................................................................
+12
+ 9
C i n c i n n a t i ...............................................................................
+ 3
+ 7
C l e v e la n d .................................................................................
—0—
+ 9
C o l u m b u s ................................................................................
+20
+10
D a y t o n ......................................................................................
— 3
+ 4
P i t t s b u r g h ...............................................................................
a
a
A lle g h e n y C o u n t y ..............................................................
+14
+24
T o l e d o ........................................................................................
a
a
O t h e r C i t i e s ............................................................................
+10
+20
D i s t r i c t ......................................................................................
+ 8
+14
a N o t a v a il a b le .
F ig u re s in p a r e n t h e s e s i n d i c a t e n u m b e r o f firm s r e p o r t i n g s a le s .

s a le s v o lu m e 8 p e r c e n t in e x c e s s o f a y e a r a g o , w h e r e a s in Akron a n d
t r a d e w a s a p p r o x i m a t e ly o n a p a r w i t h t h e s a m e m o n th o f 1946.

bus,

+19
a
+ 5
+17
+ 2
+20
+ 7
a
— 2
+ 3
a
+ 7
+ 9
+27
+30
— 6
—19
+ 7
+39
+20
+44
+12
a
a
a
a
+49
+35

Colum ­

I n Canton, Pittsburgh, a n d Toledo, t h e M a y - J u n e s a le s d e c lin e w a s
c lo se t o t h e D i s t r i c t a v e ra g e o f 6 p e r c e n t , a lt h o u g h Canton s h o w e d t h e l a r g e s t
( 1 0 p e r c e n t) y e a r - t o - y e a r g a in a m o n g t h e e le v e n c itie s .
D e c lin e s fro m t h e p r e c e d in g m o n th r a n g i n g fro m 8 p e r c e n t t o 11 p e rc e n t
w e re r e p o r t e d fro m C incinnati, Erie, W heeling, a n d Youngstown. I n
t h e c a se o f W heeling t h e r e d u c t io n in s a le s b r o u g h t t h e J u n e t o t a l 6 p e r c e n t
b e lo w t h e 194 6 le v e l.
I n a ll b u t o n e c i t y , J u n e 1 9 4 7 w a s m o re t h a n d o u b l e t h e J u n e 1941 fig u re s.
T h e s e p e rc e n ta g e s h o w e v e r , a re n o t a d j u s t e d f o r c h a n g e s in r e t a i l p ric e s.

12

MONTHLY BUSINESS REVIEW

INDUSTRIAL REVIEW
0Continued from Page 8)

Ceramics The ceramic industry continues to report
Glass
very heavy order backlogs with produc­
tion close to practical capacity in most
plants. Demand continues brisk for most lines of
dinner and china ware, although some slowing up has
occurred in the demand for off-quality ware or seconds,
much of which is exported.
The pottery workers union has requested a reopen­
ing of the wage contract. Bargaining is on an industry­
wide basis and the workers obtained an eight and onehalf cent increase in January. They are now seeking
to obtain an additional increase of six and one-half
cents per hour. Negotiations will be conducted in the
latter part of August.
The tableware branch of the glass industry reported
a falling off of orders about the middle of May. By
the middle of July, however, the rate of incoming
orders had returned to a satisfactory level. New wage
negotiations wrere scheduled to take place at the end
of the month. i>




August 1, 1947

Polished plate glass production in June, as reported
by the Hughes Statistical Bureau, totaled about 21
million square feet. Production declined from May
by about 2.1 million square feet but was 4.7 million
square feet above June 1946. Shortages of soda ash
continue to hamper most producers.

Machine
Tools

Machine tool shipments in June were estimated at 24.7 million dollars by the
National Machine Tool Builders’ Associa­
tion. Sales declined about one million dollars from
May and were at the lowest level of the year.
The industry is concentrating on the problem of
having new models of machine tools ready for the
national show in Chicago from September 17 to 26,
inclusive. Tools will be displayed and operated under
actual shop conditions.
Informed sources state th at in many cases such
extensive improvements have been incorporated in the
new tools as to render existing equipment obsolete.
This development should begin to stimulate the
industry in the fourth quarter of the year and offer
the metal working industries new opportunities to cut
costs.