The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MONTHLY
REVIEW
Of Industrial and Financial Conditions in the New England District
By Frederic H. Curtiss, Chairman and Federal Reserve Agent
FEDERAL
VOL. X
RESERVE
BANK
BOSTON, MASS., JUNE 1, 1928
OF
BOSTON
NO.
6
THE SITUATION
During the first quarter of 1928 industrial con- month since August, 1926. Production of fine
ditions in New England we1e improving, and the cotton goods in April was about 50 per cent of the
Index of New England Business Activity increased volume produced in April last year, but the strike
from 100.0 in January to 103.1 in February, and in New Bedford affects this situation. The
advanced further in March to 104.8. This rate average daily consumption of raw wool by New
of activity was not sustained, however, and the England mills in April was less than in any month
Index in April receded materially to 99.3. Busi- since August, 1926. Boot and shoe production
ness activity in New England during recent weeks, was curtailed as usual in April, although in this
therefore, as measured
district the decrease was
by this index, has been
by considerably more
BUSINESS ACTIVITY
NEW ENGLAND AND UNITED STATES
slightly less than during
than the usual seasonal
the average month of
reduction. The rate of
NEW ENGLAND
110
1923-24-25. The level
operations
during
of indus.t rial activity in
March,
however,
was
!>..
~ 90
unusually high, so that,
April was nearly 3½
§ 80 1----t--,i-------t - - - ; - - + - - - + - - - + - - + - - - - + - - - - + - - - - ; despite the decline from
per cent less than that
"> 10 1 - - - - -1--,1-- - - - + - - - - + - - - - + - - - + - - + - - - + - - - - - <
of the corresponding
March to April, the
·":
month a year ago,
level of activity during
-~ 1:g ~ ~ ~ ~ - ~ - ~ -~
~ - ~- ~ - - - - ,
~
whereas during J anurecent weeks has been
I I O >---->---------<--+·
approximately the same
ary,
February
and
as a year ago. A
March there was greater
80 f--~ f------J-d-- - + - - - + - - - + - - - +--+---+-~
activity this year thaii
smaller
number
of
~ 10 >--- -f----,....C..,- - - - + - - - - + - - - - + - - - + - - + - - - - + - - - - - < workers was employed
during the first quarter
of 1927. The level of
by Massachusetts facDuring the first three months of 1928 the index of New England busitories during April than
wholesale commodity ness
activity was higher than in the corresponding months a year a~o,
but
in
April
this
condition
was
reversed,
and
there
was
a
substantial
in
March. Declines in
prices increased berecession in the index in April as compared with March.
tween March 15 and
employment from a
April 15 from 96.0 to 97.4 per cent of the 1926 year ago have been reported in textile machinery
average,' and the larger price advances were in and cotton goods factories, and in foundries and
the farm products, foods, hides, and leather machine shops, while, silk, jewelry, and rubber
products groups. Consumption of raw cotton by footwear manufacturers report improvement in
New England mills during April fell off materially employment. April construction in New Engfrom that of the previous three months' average. land was larger than in any previous April, and
In fact, the amount of cotton consumed in New for the four months ending April 30, new buildEngland during April was less than in any month ing in this district exceeded the same period a
since July, 1926. The consumption of cotton by year ago by about 16 per cent. Sales of New
all mills in the United States was about 15 per England department stores in April compared
cent less in April than during the corresponding unfavorably with those of April a year ago, a
month a year ago, and was less than in any decline of 11.8 per cent having been reporteq .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
~
2
June 1,
MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON
MONEY AND BANKING
Money rates in the New York market strengthened considerably during the three weeks ending
May 19. Quotations for brokers' prime commercial paper, four to six months' maturity,
advanced from 4½ per cent to 4½-4¾ per cent
during this period, while time money secured by
mixed collateral rose one-quarter of one per cent
to 5¼ per cent, and the rate on bankers' acceptances, 90-day bills, increased from 3½ to 3½-4
per cent. The weekly average rate on call money
during the weeks ending May 5, 12, and 19 was
5.25, 5.67, and 5.67, respectively. During the
week ending May 21 a year ago the prevailing
rates were: commercial paper, 4-4¼ per cent,
time money, 4¾ per cent, bankers' acceptances,
3% per cent, and call money, 4.16 per cent. The
level of money rates at the middle of May was
distinctly higher than that of the corresponding
period a year ago. On May 25 the rediscount
rate of nine Federal reserve banks was 4½ per
cent, and of three banks was four per cent. The
rediscoun t rates of the Federal Reserve Banks of
Philadelphia, New York, and Cleveland were
raised from four to 4½ per cent, effective May 17,
May 18, and May 25, respectively.
Total loans and investments of reporting New
England member banks, which were at a new
high level on April 18, had declined on May 16
by more than $32,000,000. The total loans and
NEW
1924
19 2 5
ENGLAND
investments of reporting member banks of the
entire country, however, increased during this
period by about $211,000,000. Collateral loans
of reporting New England member banks declined
between April 18 and May 16 by $21,511,000
(Boston, -$21,715,000; eight outside cities,
+$204,000). Commercial loans were reduced by
$9,483,000 (Boston, -$9,774,000; eight outside
cities, +$291,000)) and holdings of security investments decreased by $1,334,000 (Boston,
-$4,130,000; eight outside cities, +$2,796,000).
Collateral loans of reporting member banks of the
entire country increased substantially during this
four-week period, by $185,000,000, and holdings
of security investments increased about $36,000000, while commercial loans were reduced by
about $10,000,000. Because of the predominance
in the volume of transactions in Boston as compared with eight other New England cities, the
condition of the New England reporting member
banks is affected principally by changes in conditions in Boston banks. Between April 18 and
May 16 there were increases in collateral loans,
commercial loans, and holdings of security
investments of reporting member banks in eight
important New England cities outside of Boston,
yet the combined figures of reporting member
banks of New England declined not only in total
loans and investments but in each of the three
MEMBER
19 2 6
BANK
CREDIT
19 2 7
I 9 2 8
1100
.,,
~
1000
j
0
Q
...0
.,,
900
~
~
~
800
700
11100
~
~
0
Total loans and discounts of reporting New England member banks advanced materially between the last of February and the middle of
/\pril to a new hi&h point, qut between April 18 and May 16 there was a reduction, although on the latter date the level was still hi~her,
with the exception of March and April, than during any previous perioq.
••
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1928
3
MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON
items comprising the total. During the 12 months
ending May 16, the following changes occurred
in the condition of the reporting New England
member banks:
Actual change
in dollars
Collateral Loans .. . ........ . ... . ........ +$100,682
Security Investments...... . ...... . ...... +69,742
Commercial Loans . . . . . . . . . . . . . . . . . . . . . . . + 22,806
Total Loans and Investments . . . . . . . . . . . . + 193,230
Percentage
change
+25.8%
+13 . 8
+ 3. 1
+ 11. 8
Total loans and investments of reporting member banks of the entire country increased about
$2 >100,000,000 between May 18, 1927 and May
16, 1928, of which $1,224,000,000 was in collateral
loans, $622,000,000 in security investments, and
$255,000,000 in commercial loans, increases of
21.1, 10.3, and 2.9 per cent, respectively. The
expansion of member bank credit, therefore, of
both reporting member banks of the country as
a whole and reporting New England member
banks has been relatively similar during the past
12 months.
Total deposits of reporting member banks of
the Federal reserve system increased about
$1,409,000,000 between May 11, 1927, and May
9, 1928, an increase of 7.2 per cent. The per
cent of reserve to deposits of reporting mem her
banks, which was 8.6 on May 11, 1927, was 8.6
again on May 9, 1928.
Total bills and securities, or total earning assets,
of the Federal Reserve Bank of Boston decreased
by $31,986,000 between April 18 and May 16.
Loans to member banks increased during this
period by $1,166,000, but acceptances purchased
in the open market declined by $27,361,000, and
holdings of Government securities were reduced
by $5,791,000. During the two months ending
May 16 there was little change in the volume of
Federal reserve notes in circulation in this district.
MONEY
RATES
AND
BOND
The reserve ratio of the Federal Reserve Bank of
Boston was 67.3 per cent on May 16, which was
11.5 per cent lower than the ratio on May 18,
1927. Total cash reserves on May 16 were about
$185,000,000, and on May 18, 1927, were about
$221,000,000.
Between April 18 and May 16 total bills and
securities of all Federal reserve banks combined
increased about $104,000,000. Holdings of acceptances purchased in the open market, however,
declined about $4,000,000, and holdings of
Government securities were reduced by about
$79,000,000. This decrease of $83,000,000,· due
to the reduction in the holdings of acceptances
purchased in the open market and Government
securities, was more than offset by a substantial
increase of $187,000,000 in loans to member
banks, with the result that total bills and securities increased between April 18 and May 16 by
about $104,000,000. The changes in condition of
all Federal reserve banks combined between
May 16, 1928, and May 18, 1927, are given m
the following table:
Loans to Member Banks ....
Acceptance H oldings .......
Government Securities .. . ...
Total Bills and Securities . . ..
l,4t6
Total Cash Reserves ........
Reserve Ratio .... . ........
2,802
69.7%
Federal Reserve Notes in
Circulation ..............
Total Deposits ......... . ...
Change
+$349
+ 122
7
952
+ 464
3,223
79.3%
-
421
9.6%
1,583
1,711
-
128
2,434
2,353
+
81
Loans to brokers by reporting New York member banks on May 16 were $4,502,000,000, and
on May 18, 1927, were $2,931,000,000. In the
12 months ending May 16 this year there had
been an increase of $1,571,000,000, or 53.6 percent.
COMMERCIAL
YIELD
1927
1928
May 18
May 16
(in millions of dollars)
$ 807
$ 458
347
225
269
262
LOANS
OF
COMPARED
BROKERS
MEMBER
WITH
LOANS - NEW
BANKS- U.S.
YORK
1928
1926
AVERAGE YIELD ON
_ O_ H_IG_H _ G
.,R_A~
t;)E_ B_ON_D---'S-- + - - ~ - - + -5 t--_e
192 7
1928
--__._j
~
~
....
C:
c::i
MONEY RATES
PRIME COMMERCIAL PAPER
(4-6 MONTHS OUOTCD)
~
8,--,--.--,--.-,--,--,--,-r--.-,---,-,--.-,r-r-,--r-r-- -r--r-r-,-r-r-r~~~~m
~
4 f -- - --
-
-!-- -- - - - - - + --
---- - - - <
::!
lb
3t---- - --t-- - - - - + - - - - - - + - --
--
In March t h ere was a slight drop in the average b ond yield, and in
April a slight increase, so t hat the April average b ond yield corresp onded with that of both January and February. Money rates have
continued t o strengthen, and during the middle of May practically all
rates were higher than those of the corresponding period a y ear ago.
Digitized
forofFRASER
Sources
data- Standard Statistics Company, Inc., and Federal Reserve
https://fraser.stlouisfed.orgBank of New York.
Federal Reserve Bank of St. Louis
Commercial loans of reporting_ member banks of the entire country
advanced between the first of February and the second week in April ,
but have since shown a slight decline. Loans to brokers of reporting
New York member banks on May 16 were the highest ever recorded,
and during the 12 m onths ending May 16 had increased b y $1,571, 000,000, an increase of 53.6 per cent.
4
June 1,
MONTHLY RE\71EW OF THE FEDERAL RESERVE BANK OF BOSTON
NEW ENGLAND MARKETS
NEW ENGLAND BUSINESS ACTIVITY INDEX
Per Cent of 1923-24-25 Average
1928
1927
100 . 0
99.5
103.1
97.6
March ... .. ....... ..... ........... . 104.8r
102.5
April ...................... ... .... .
99.3p
102.6
May ............................. .
102 . 3
r. revised
p. preliminary
Receipts of raw cotton continued considerably
less than last season.
fi.~b~~~y: : : ::: : :::::::::::::::::::
Hariford:-More active building, a larger
volume of carloadings, and an exceptionally
large volume of check payments point to active
The New England Business Activity Index business and industry.
Lynn:-The seasonal decline in shoe production
declined five per cent between March and April,
and for the first time this year it was below the resulted in a smaller number employed in April
corresponding period of 1927. Declines in the than in March. Trade, however, has been imadjusted figures of carloadings, building, cotton proving. Building has been more active than a
consumption, wool consumption, shoe production, year ago.
New Bedford:-The sharp reduction in April
and employment were responsible for the reduction in business activity. Check transactions in check payments shows the effect the textile strike
April in most New England cities were larger than is having on general trade activity. Little
in April, 1927. Sales of new automobiles in this influence has been felt as yet in the market for
district for the first four months this year were fine cotton goods, although the trading has been
nine per cent larger than in the corresponding very light.
New Haven:- Department store sales declined
period last year, while the total United States
production of passenger cars for the same period in April, and were less than a year ago. Business is
fair, and industrial output compares favorably with
was 5.5 per cent ahead of last year.
Boston:-With the exception of building activ- a year ago. Check payments continue to expand.
Portland:-Building is active, and provides emity, business and industry were lower in April
than a year ago. Retail trade has been consider- ployment for the local supply of craftsmen.
ably below 1927, and carloadings, employment Business, as indicated by check transactions, is
fairly active.
and postal receipts have declined.
Bridgeport:-Building has been active. A
Providence:- There was evidently little change
slight increase from March was reported in between March and April in the industrial situaemployment, and in the metal products factories tion in Providence or in neighboring cities. A
the number on payrolls was larger than a year ago. slight reduction in employment in jewelry and
Brockton:-Shoe shipments in April were about textile establishments was offset by increases in
the same as in March, but a sharp decline the the metal trades and rubber factories.
first three weeks in May was reported. EmployWorcester:-The April volume of check payment has declined seasonally.
ments was below April last year, although for
Fall River:-Some improvement in employment the first four months this year they have been
was reported in April, partly due to more active larger than a year ago. Industry is apparently
building. The coarse goods market is slow. operating less actively than in 1927.
COMPARISON
4
Of"
CHE.CK
MOS. 11128 COMP. WITH
SAME PERIOD 192 7
1926
103.8
104.1
104.3
100.2
102.0
DE.PARTMENT
PAYME.NTS
PROVIDENCE
APRIL 19 28 COMPARED
WITH APRIL 1927
STORE
SALES
NEW
HAVEN
BOSTON
BANGOR
.
200
BROCKTON
FALL
RIVER
IJJ
,:
~ 150
- - - - - - · HOLYOKE
HARTFORD
LOWELL
LYNN
NEW
NEW
"
,:
a:
BEDFORD
HAVEN
PORTLAND
PROVIDENCE
--..:.~
I 00
f--
z
IJJ
~
u
a:
~
,---1
:.....:
80
l{,J
1928
1928
u.
0
!2
~
~
N
~
"Q
m
150 ~
,:
IJJ
v
MANCHESTER
200
1927//
1927"'/
- J1
3 YEAR AVE. 1924-1926
,,: . . .J
··...·....-!.1'
~,.£j '\ ,~.
•·
VI
v~
0
'11
100 ~
N
80
'"
?!:
m
:n
►
3 YEAR AVE. 1924-1926
60
60
40
40
GI
m
SPRINGF'IELD
WATERBURY
In the majority of New England cities check payments in April were
larger than a year ago. De~reases were reported in Fall River, Lowell,
Manchester, New Bedford, and Worcester.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Sales in Providence and New Haven department stores are representative of the decline in retail trade in April as compared with April a
year ago that has occurred throughout the district.
1928
5
MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON
COMMODITY PRICES AND INDUSTRIAL CONDITIONS
Wholesale Commodity Prices:-The level of
wholesale commodity prices~ as measured by the
"All Commodities" index of the Bureau of Labor
Statistics, increased rather sharply between
March 15 and April 15 from 96.0 to 97.4 per
cent of the 1926 average. Farm products, foods,
hides, and leather products increased substantially
over March, the first mentioned rising four per
cent to 107.6 per cent of the 1926 average. Increases were also reported in the building materials
and chemicals and drugs groups, while the house
furnishings and miscellaneous groups declined.
The commodity price decline that began in the
summer of 1925 was halted about a year ago,
after the "All Commodities" index had dropped
over 10 per cent. Since April last year, the
wholesale price level has risen four per cent,
most of this increase having taken place between
June 15 and October 15. Between October 15
and March 15, however, prices were irregularly
declining, but since March 15 this loss has been
more than recovered. The improvement from
April, 1927, has been due almost entirely to
strength in the prices of farm products, which in
this period have risen 14 per cent, while nonagricultural commodities have increased less than
two per cent.
Employment:-The number of workers employed by Massachusetts factories in April
declined two per cent from March. A considerable part of this decline was of a seasonal nature,
although in most industries the number employed
was below April, 1927. Substantial declines in
employment from a year ago _have taken place in
textile machinery and cotton goods factories and
WHOLESALE
COMMODITY
in foundries and machine shops, while silk,
jewelry, and rubber footwear manufacturers
report considerable improvement in employment.
A relatively much smaller number of workers was
employed in April in establishments operating on
a normal full-time schedule than in March or in
April a year ago. The average weekly wage in
April declined to the lowest point since July last
year, and the aggregate weekly earnings were 4.2
per cent less than in March. The number of
workers on the payrolls in Connecticut industrial
centers was about the same as a year ago, especially in the metal concerns. Employment in
selected Rhode Island establishments showed little
change from March .
Building:-The volume of ne·w construction in
April continued the tendency to expand that has
been in evidence since the first of the year. In
the United States the value of new building
contracts awarded in April was the largest in any
month so far recorded by the F. W. Dodge
Corporation, and in New England the April
construction was larger than in any previous
April. For the four months ending April 30,
new building in this district exceeded the same
period last year by approximately 16 per cent.
Vermont, Connecticut, and Massachusetts reported the most active building programs, in
comparison with a year ago, the first two showing
large increases, while Massachusetts reported
about the same volume as last year. All the
major classifications of building, including residential construction, were larger than a year ago,
but an increase of nearly $5)000,000 in the value
of public works and utility building was responVALUE
PRICES
OF
BUILDING'
NEW
19 2 6
19 2 5
I 70
J,.
MAM J
J
A.
s
0
DJr
19 2 7
192 8
1"'1M1J1JIAI.Sior, 0 i4r1M/1M1J1Wr2-r~~
5
60
CONTRACTS
AWARDED
ENGLAND
I 9 2 I I9 2 2 l 9 2 3
1928
~
20 BASIC COMMODITY PRICE INDEX
~1601--A- - . - - - + - - - - - + - - - - - - - + - - - - - - ;
::,;
VALUE
"<:
~
I 50 f---V-----¥'-H,,.-- - - - - . - + - - - - - t - - - - - - - i
~
~
140 f---------+--___:::,'---V1~++---1----"f.......' - - - - - - - i
0
~
~
-~ 130 f - - - - - - + - - - - - + - - ' 1rP-- - - - + - - - - - - 1
40 t------t-:t---+-- - - t - - - - t - - '....,,....;>-!rt--'/-·H
cl
Q
I 20
L,,,\/\,'l,/\.J___,____.__.L..J_J_JJ_L1.....LJ..__J_J,-'-'-'-'--
+so~~~~~~~~~
....L-'--'--'---'-"-L-i....1..-'--'----'......L..L'--'-'_.L_L.'---Yl'lfl/JI"
~~~rn~~
::;
30
l---++--+-i,-t-+-+.-H-1=~++---1
---++---;---1
....
~ -25
>---++•HHlf---- - t t -
Although a slight reaction has taken place in the 20 Basic Commodity
Price Index, it is still higher than at the first of this year. In Dun's
list of prices, advances continued to exceed declines.
Sotirces of data-Federal Reserve Bank of New York and Dun's Review.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Building contracts awarded during the first four months of this year
established a new high record for that period. The 12 months' total.
however, is still considerably below the high point reached in 1025,
Source of dala-F. W. Dorlge Corporation.
6
sible for the increase in the total between March
and April.
Boots and Shoes:-Shoe production was curtailed as usual in April, although in this district
the decrease was by considerably more than the
normal seasonal reduction. As previously pointed
out in this Review, however, the spring peak
this year was higher than usual, and shoe factories
in this district have been operating at a relatively
more active rate than those in other parts of the
country. The net result, notwithstanding the
large decline from March to April, is a scale of
operations approximately on a par with a year
ago. The decline in production outside of New
England, while not as large as in this district,
was sufficient to reduce the level of activity to a
point well below a year ago.
Metals:-April operations in the iron and~steel
industry continue to expand. Steel production
was at a new high level, and, although pig iron
production on a daily average basis was higher
than in the preceding month, it was seven per
cent lower than in April, 1927. Towards the end
of the month orders were distinctly less than a
month earlier, and the decline of 460,000 tons in
the unfilled orders of the United States Steel
Corporation forecast the reduction in steel
operations that has taken place so far in May.
The seasonal decline in the steel industry, now a
month later than usual, is not expected to carry
the level of operations as low as a year ago, but
at the present time the automotive is the only
one of the large industries that is buying in
sizable quantities. Numerous small orders -have
not prevented weakening in prices of both finished
steel and pig iron. Consumers are buying only
for immediate requirements. Machine tool orEMPLOYMENT
PER
100
June 1,
MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON
1924
CENT
IN
or
192
NUMBER
MASSACHUSETTS
1919-'23
1926
or
PRODUCTION OF FINE COTTON FABRICS
PRICES OF RAW COTTON AND COTTON GOODS
AVERAGE
192 7
ders continue to expand, and automobile production in April was slightly larger than in March
or in April, 1927. Nonferrous metals, especially
copper, have been stronger. Foreign demand
has been large, and recently domestic consumption
has improved.
Textiles:-Further reductions in wool consumption, cotto'n consumption, and fine goods
production were responsible for a sharp decline
in the index of textile activity from 96.0 to 82.8
percent of the 1923-25 average, in spite of further
improvement in silk mill operations. In comparison with general business, which also declined
between March and April, the textile industries,
with the exception of the silk mills, are operating
on a much lower plane. Cotton consumption in
April was lower than in any month since July,
1926> and, after making allowances for seasonal
conditions, it declined to the level of last December. The production of fine goods in April was
about SO per cent of the volume produced in
April last year, due to the strike begun the middle
of that month in New Bedford. Trading,
however, has been unaffected. With the supply
of goods large enough to meet the light demand,
prices have shown practically no change. Coarse
goods markets have been even slower than in the
preceding months. Wool consumption for the
second consecutive month was below the corresponding period of last year. Trading, however,
has been more active, with prices of many grades
still rising. Manufacturers have had difficulty
in maintaining goods prices on a parity with the
rising raw material costs. Since December the
New England silk mills have been increasing
their operations, and employment and mill
activity are the highest on record.
19 28
220
I9 23
I924
I9 2 5
I9 2 6
I92 7
I92 8
650
WAGE-EARNERS
,J 200
~
~
180
~
0
~
160 1
co
600
J
I
140
-I
:J:
0
C
t- 120
400 ~
N
!!!
...0
IA
~
z
w
V 100
~I
~I
70
The seasonal improvement in employment this spring was less than
usual, and the number employed m three of the leading industries in
Massachusetts is now lower than a year ago.
Source of data-Massachusetts Department of Labor and Industries.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
80
~
,,
R
300 l;:
60
40
200
A sharp decline has taken place in the production of fine cotton fabrics.
A considerable part of this decline had occurred before the New Bedford
strike. Prices of raw cotton and cotton goods are slightly higher than
at the first of the year.
Sources of data-Fairchild Publications and New Bedford Fine Cotton
Goods Exchange
1928
7
MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON
RETAIL AND WHOLESALE TRADE
Sales of reporting New England department stores in April were about 12 per cent less than during
April a year ago, about four per cent less than in April 1926, and six per cent less than in April, 1925.
All of the six New England states showed substantial decreases, with New Hampshire stores reporting
the largest decline and Maine department stores the smallest. During the first four months of 1928,
only the Maine stores showed an increase as compared with a similar period of 1927, sales of all New
England department stores being five per cent less for the January through April period this year than
in 1927.
•
Connecticut Department Stores. . . . . . . . . . .
Maine Department Stores .. .... .. . . . . .. ..
Massachusetts Department Stores . . . . . . . . .
ew Hampshire Department Stores ...... .
Rhode Island Department Stores . . . . . . . . . .
Vermont Department Stores . . . . . . . . . . . . . .
Boston Department Stores . . . . . . . . . . . . . . . .
Boston Women's Apparel Shops . . . . . . . . . . .
New Haven Department Stores . ...... . ...
Providence Department Stores . . . . . . . . . . . .
New England Department Stores . ... . . . . . .
New England Wholesale Grocery Concerns .
New England Wholesale Shoe Concerns.. . . .
SALES CONDITIONS
1927=100
Month of April
1926 1927
1928
1925
94
91
95
100
78
97
85
100
96
88
93
100
78
83
100
87
98
94
100
97
87
100
88
96
93
100
89
93
93
93
100
95
92
94
100
98
94
100
88
94
92
100
88
105
105
100
95
99
86
91
100
January through April
1925
1926
1927
1928
95
96
100
99
90
91
100
106
92
95
100
94
91
100
89
100
100
100
98
99
94
100
99
92
96
100
93
86
89
100
96
94
94
100
99
100
100
100
99
93
96
100
95
106
101
100
96
102
98
100
97
Credit conditions, as indicated by the percentage of open accounts outstanding at the first of
April collected during April, compare unfavorably this year with conditions during the previous three
years. Although the percentage collected during April by New England department stores declined
slightly from the corresponding period a year ago, Providence department stores show an increase
of better than four per cent. The Boston women's apparel shops also reported a slight gain, while the
Boston department stores showed a decrease of two per cent.
CREDIT CONDITIONS
Percentage of Open Accounts Outstanding at the First of April
Collected during April
1926
1925
Boston Department Stores . . . . . .. . ....... . ....................... . ..
52.7%
52.1 %
Boston Women's Apparel Shops . .. . ..... .. ............ . ......... . ...
51.0
53.5
New Haven Department Stores ........................ .... .........
53.8
55.8
Providence Department Stores ....... . .. . ...........................
48.2
48.2
New England Department Stores ..... . .............. . .. . ... . .. . .....
49.0
48.9
ew England Wholesale Grocery Concerns ........... . ........ . ......
75.4
69.4
New England Wholesale Shoe Concerns ............ . ..... ... .........
37.3
36.6
1927
50.6%
49.2
56.0
43.3
46.9
71.1
39.4
1928
48.6%
50.7
53.8
47.6
46.5
70.0
33.3
SALES BY DEPARTMENTS-NEW ENGLAND DEPARTMENT STORES
1927=100
January through April
Month of April
1928
1927
1926
1925
1928
1926 1927
1925
88
100
110
111
Silk and Velvet Dress Goods .. . ........ . .. 129
100
89
118
90
100
123
84
Woolen Dress Goods ... ... . .............. 155
111
100
160
92
100
114
127
Cotton Dress Goods ..................... 138
100
97
116
96
100
Silverwear and Jewelry .. . .......... ... ...
88
94
100
79
90
86
94
100
Men's Clothin~ ............. . . . ......... 100
99
92
100
95
88
100
100
Men's Furnishings ................... . ...
94
100
86
94
87
89
93
100
97
76
Boys' Wear .... . ...... . ... . .............
100
94
75
90
94
100
Women's Ready-to-Wear ................. 119
98
108
100
105
90
96
100
87
100
82
86
Misses' Ready-to-Wear ... . ... . .. . ....... .
88
98
104
100
84
88
Juniors' and Girls' Ready-to-Wear .. . . . .. . .
72
100
88
80
90
100
93
100
97
Millinery ....... . ... .. .. .. ... . . . ........
92
89
92
94
100
96
87
100
82
79
Women's and Children's Gloves ....... . . . .
85
95
100
100
100
105
91
Corsets and Brassieres . . . . . .. .. .. ........ 108
99
102
100
81
83
76
100
88
78
Women's and Children's Hosiery ... . .... . .
97
100
86
100
95
Knit Underwear, inc. Glove Silk . . .........
88
89
85
90
100
102
100
101
105
88
Silk and Muslin Underwear ... . .. ...... . .. 107
97
100
97
100
91
90
93
90
Women's and Children's Shoes .... . .......
100
97
100
100
95
Furniture . . ....... .. .... ... .. . .. . ... . .. .
91
90
92
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
8
MONTHLY REVIEW OF THE FEDERAL RESERVE BANK OF BOSTON
June 1> 1928
SUMMARY OF BUSINESS CONDITIONS IN THE UNITED STATES
INDUSTRIAL PRODUCTION
UNITED STATES
150
19 24
19 25
1926
19 27
1928
~
:,;
"t
...
i ..
V'
-'}I
100
~
....
~
\j
~~~
-
r
The volume of industrial production continued large during April, reflecting chiefly increased output in metal industries, while activity in industries
producing food and clothing decreased. Wholesale and retail trade also
declined. The general level of wholesale commodity prices increased in
April, reflecting advances in farm products.
There were Jarge exports of gold in April and May, member bank loans
and their borrowings at. the reserve banks continued to increase, and money
rates showed further advances .
50
Proditction:-Production of manufactures remained in about the same
volume in April as in March, while output of minerals declined slightly, owing
chiefly to a decrease in production of bituminous coal. Daily average output
of iron and steel, copper, and zinc increased in April, but since the first of
May there has been some curtailment in steel mill activity. Automobile
production was maintained in large volume during April, and, according to
preliminary reports, also during the first half of May. Textile mill activity,
output of boots and shoes, and meat production showed substantial declines
during April. The volume of factory employment declined slightly, reflecting chiefly decreases in the food, leather, and textile industries. Building
contracts awarded in April exceeded those for ::my previous month, and awards
during the first three weeks of May continued in unusua~y large volume.
~
Q.
0
WHOLESALE PRICES
UNITED STATES
7 5 ' - - - - - - - ' - - - - ' - - - . . , __ _.___
FEDERAL
RESERVE BANK
UNITED STATES
__,
CREDIT
!
~
Q
~
11.-----
~-'-----+-
-
+""""""'' -l------l
~
3:::!
Ill
MONEY RATES
NEW ·YORK
6
1924
1925
1926
1927
1928
Trade:-Sales by department stores and by wholesale firms in most lines
of trade declined in April, and were in smaller volume than a year ago. Average daily sales of department stores, after allowance is made for the earlier
date of Easter and the usual seasonal changes, were smaller in April than in
March, and were also smaller than in April a year ago. This decrease was
due largely to unfavorable weather conditions. Stocks of department stores,
after adjustment for seasonal changes, were in about the same volume as in
March, and slightly smaller than a year ago. Freight carloadings showed
an increase between the beginning of April and the middle of May, but for
most classes of commodities continued smaller than a year ago.
Prices:-The general level of wholesale commodity prices, as indicated
by the index of the Bureau of Labor Statistics, increased from 96 per cent
of the 1926 average in March to 97.4 per cent in April. This increase reflected
sharp advances in the prices o( grains, cotton, livestock, and hide and leather
products. Rubber prices continued to decline, and most of the other groups
of commodities showed little change. During the first three weeks of May
there were decreases in the prices of grains, fl.our, sheep, and hogs, and increases in copper, zinc, and rubber.
Bank CredU:-At member banks loans largely for commercial and industrial purposes, following a rapid increase during February and March,
have shown little change ~ince the early part of April. Loans on securities
continued to increase, and total loans and investments of reporting member
banks in the middle of May were larger than at any previous time.
The outward movement of gold continued in May, the decline in monetary gold stock during the four weeks ending May 23 being nearly $90,000,000.
This loss of gold together with further sales of United States securities by
thefreserve~ banks, was reflected in an increase of nearly $140,000,000 in
member bank borrowing at the reserve banks.
I
-
COMMERCIAL PAPER RATE
RESERVE BANK REDISCOUNT
ACCEPTANCE RATE
RATE
o~_ __.__ _......__ _..,__ __..___ __,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
There were further advances in open market money rates during May,
and discount rates at the Federal Reserve Ranks of New York, Philadelphia,
Cleveland, Atlanta, and Dallas were raised from four to 4½ per cent.
@FedFRASER