frsbog_mim_v15_1249.pdf

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F E D E R A L R E S E R V E B O A R D

S T A T E M E N T F O R T H E P R E S S

X-3256

F o r

Release

i n

Morning Papers,

Thursday, December 1 , 1 9 2 1 .

T he

fo l lowing

i s a

review

of

general business

and

f i nan c ia l condi t ions th roughout

t h e

several Federal

Reserve Dis t r ic t s dur ing t h e month of November, a s

contained

i n t h e

for thcoming iss ue

o f t h e

Federal

Reserve Bul le t in .

Improvement i n bus iness condi t ions i n November h a s n o t been

a s pronounced a s du r ing t h e preceding tw o months. Several f a ct o r s

a r e

r e spons ib l e

f o r

t h i s re la t i ve s lowing down .

T he

seasonal

peak

of

demand

h a s , f o r t h e

time being, been reached

and

passed.

Uncer ta in ty regard ing pr ic es

of

s t a p l e s , p a r t i c u l a r l y

of

cotton,

h a s

interfered somewhat with trade buying, while

t h e

p o s s i b i l i t y

of f u r t h e r r e d u c t io n s of f r e i g h t r a t e s h a s apparent ly tended t o

u n s e t t l e p r i c e s a n d t o r e t a r d t h e a c t i v i t y of indus t ry i n some

o f t h e

chief manufa cturin g se ct io ns . Recovery

i n t h e

s t e e l

and

i ron t rade

h a s

come

t o a

h a l t

f o r t h e

time being,

a n d

s t a b i l i t y

h a s n o t y e t

been achieved

i n

that branch

of

produc t ion .

Never the less ,

t h e

progress toward normal conditions achieved

during November

h a s

been continuous,

a s may be

seen

by a

comparison

wi th t h e corr esp ond ing month of a year a g o , o r wi th t h e general

movement of economic conditions since t h e beginning of th i s year .

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x-3256

Cotton a n d woo l en t ex t i l e s i n some o f t h e pr inc ipa l producing d i s -

t r i c t s

a r e

almost

on a

normal ba si s . Ste el

a n d

iron, while working

a t abou t f i f t y p e r cent 'of capac i t y , a r e i n much better condit ion

t han w as t r u e a few months ago* I n soma industr ies which h a d a c -

cumulated la rg e su rp lu s stoc ks, such

a s

zinc, demand

h a s

been

s u f f i c i e n t t o car ry o f f a p a r t o f t h e overs upply # Unemployment h a s

a t lea s t s l ig ht ly decreased . Expor t t r ade cont inues i n s ubs t an t i a l

volume, showing

a n

increase over October,

and

whi le labor ing under

many handicaps d u e t o unsett led exchanges, shows t h e r e s u l t of s t rong

foreign demand,especial ly

f o r

s ta pl es . Thi s

i s

p a r t i c u l a r l y n o t e -

worthy when

i t i s

remembered that

t h e

p r i c e s

a t

which cotton

and

c e r e a l s

are now

being shipped

a r e s o

much lower than those

of a

year

a g o .

Banking con dit ion s

a r e

reported sl ightly improved

pr ac t i ca l l y t h r oughou t

t h e

United States.

Reduction

of

p r i c e s

f o r

c e r e a l s ,

a n d

f a i l u r e

of

co t t on

t o

mainta in

a s

high

a

l e v e l

a s h a d

been expected during October have

proven a ser ious handicap to f ar mi ng i n t e r e s t s . Res u l t s of t h i s r e l -

a t i v e l y low r e t u r n f o r output have been a r educ t i on i n t h e demand of

farming communities i n some parts o f t h e country f o r consumable goods

and a

simultaneous tendency

t o

check somewhat

t h e

p r oces s

of

l i q u i d a t -

i n g

l oans

a t

banks , Never theles s , r e t a i l bus in ess cont inu es

t o

improve, taking

t h e

country

a s a

whole,

a n d h a s

been material ly helped

b y t h e

improvement which

h a s

taken p lace

i n

employment conditions

dur ing

t h e

p a s t

few

months . Improvement

i s

a l so observable

i n

whole-

sal e tr ad e, sa le s comparing fav ora bly with

a

year

a g o .

Pr ic es cont inue

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t o

main ta in

a

s u b s t a n t i a l l y s t a b l e p o s i t i o n ,

T ne

Federal Reserve

Board*s index f o r October shows a r e c e s s io n of l e s s t h a n tw o po in ts ,

a nd i t i s evident that t h e p ri ce changes which are now occur r ing

d o n o t

r e p re se n t

a n y

extensive movement toward modification

o f t h e

average level*

Important financial developments have taken place during t h e

month. I n a d d i t i o n t o a genera l reduc t ion of Federal Reserve discount

r a t e s , t h e r e h a s been a dis t inct tendency toward decl ine i n t h e leve l

of market ra tes both f o r shor t and lo ng term fun ds. This h a s been

accompanied by a decided advance i n t h e p r i c e s of bonds, an d p a r t i c u -

l a r l y of s t a n d a rd s e c u r i t i e s* New o f f e r i n g s of cap i ta l i s sues have ,

i n

many cases, been readily absorbed,

a n d t h e

genera l cond i t ion

o f

c r e d i t h a s become easier. The one p o in t a t which f inanc ia l cond i t ions

have shown l i t t l e or no improvement i s i n fo re ig n exchange, where t h e

German mark h a s continued i t s downward movement while other European

cu rr en ci es have been gen era lly un se tt le d wi th only spo rad ic tendency

t o improvement.

T he g e n era l s i t u a t io n of t r a d e an d in d u s t ry i s unmistakably more

h o p e fu l ,

a n d i s

improving

a s

s t e a d i l y

a s c a n b e

expected

i n

view

of

t h e slowness of economic progress i n o t h e r p a r t s o f t h e world , p a r -

t i c u l a r l y i n Western Europe. Another hand icap t o complete readjustment

con t inues

t o b e t h e

f a i l u r e

t o

bring about

a

proper co-ord i na t io n

and

mutua l re la t ionsh ip of prices * This i s r e s p o n s i b l e f o r n o small part

o f t h e

slowness

of

economic recovery

i n

cer ta in b ranches

of

business*

O n t h e whole, t h e best opinion now lo o k s t o a ste ady, even i f lo c a l ly

in te r rup ted , p rogress back

t o

normal cond it i ons , a l tho ugh

no

immediate

o r

sudden exp ans ion or boom

i s now in

sight*

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X-J256

•AGRICULTURE.

T he

pre l iminary es t imat es

f o r t h e

crops

o f 1 9 2 1 ,

issued as o f November 1 , in d ic a t e t h a t t o t a l a g r i c u l tu r a l p ro d uc t io n

i n 1 9 2 1

w i l l

b e

much lower than

i n 1 9 2 0 , a n d

also considerably less

than

t h e

average product ion

i n t h e

years

1 9 1 5 t o 1 9 1 9 - T h e

est imated

volume of every important crop i s smal le r f o r 1 9 2 1 than that o f 1 9 2 0 ,

b u t t h e 1 9 2 1

produc t ion

of

corn, sugar bee ts , sweet po ta to es ,

an d

kaf i r s exceeds

t h e

average production

i n t h e

preced ing f ive -year

p e r i o d .

T he

pre l iminary es t imate

f o r

corn produ ct io n

i s

3,151,&98,000

bushels which i s 2 . 5 p e r cent less than t h e crop o f 1 9 2 0 , b u t 1 2 . u

p e r

cent greater than

t h e

average outturn

i n t h e

y e a r s

1 9 1 5 t o 1 9 1 9 -

B o th Di s t r i c t

N o . 1 0

(Kansas City)

an d

D i s t r i c t

N o . 8 ( S t .

Louis)

re por t th at corn husking

h a s

made rapid progress

a n d

t h a t

a

considerable

p o r t i o n

o f t h e

crop

h a s

been crib bed. Reports from D i s t r i c t

No. 8

( S t . Louis) indicate that corn i s well matured a n d t h e y i e ld f o r

both s i lage an d g ra in i s good. T he stock o f o ld corn o n f a r x s i n

t n e

United States

w a s

est imated

a t

281,4^2,000 bushels

on

November

1

which i s over three times t h e average hold-over during t h e past f ive

y e a r s . T he cond i t ion o f t h e white potato crop continued t o improve

during October,

b u t t h e

est imated product ion

on

November

1 w a s

1 6 . 9

p e r

cent smaller than

t h e

crop

o f 1 9 2 0 a n d 4 . 1 p e r

cent less than

t h e

average to ta l y ie l d

i n t h e

years

1 9 1 5 t o 1 9 1 9 -

D i s t r i c t

N o.

9

(Minneapolis) s ta tes that over

6 0 p e r

cent

o f t h e

current potato crop

w as

shipped from

t h e

farms

by t h e en d o f

October, whereas oiJLy

2 8 p e r

cent of las t yea r ' s c rop w a s marketed a t t h e corresponding date i n

1 9 2 0 . Repor ts f rom Di s t r i c t No . 7 (Chicago), o n t h e other nand, indicate

t h a t

a

l a r g e p o r t i o n

o f t h e

Wisconsin potato crop

i s

being stored.

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x-3256

T he

est imated product ion

of

sugar bee ts

on

November

1 ,

amounted

t o

7,480,000 tons which w a s 1 2 . 5 P

e r

cent less than i n 1 9 2 0 , b u t 2 0 , 3 P

e r

cent more than t h e average production i n t h e previous f ive years .

Reports f rom Di st r i c t No. 6 (At lan ta ) ind ica te tha t t h e Louisiana

cane sugar yield will amount t o about 223,000 tons, a s compared with

a product ion of 169,127 tons in 19 2 0. The new wi nt er wheat crop h a s

made good progress i n most sections, b u t h a s suffered from a lack of

r a i n i n Kansas, Nebraska, Oklahoma, a n d Colorado, Di s t r i c t No. 8

( S t . Louis) st at e s th at wint er wheat i s i n prime condition t o enter

cold weather , a l though un of f i c i a l rep or ts ind ica te th at t h e acreage

w i l l b e s l ig h t ly le ss than la s t year . T he winter wheat a n d r y e crops

a r e

well advanced

i n

D i s t r i c t

No, J

(Chicago),

a n d i t i s

reported that

a larger acreage h a s been sown i n Wisconsin than i n 1 9 2 0 .

COTTON: Co tt on ginned p r i o r t o November 1 4 , amounted t o

7,270,575 bales, a s compared with 8,914,642 bales i n t h e corresponding

period

o f 1 9 2 0 .

This ind ic ate s th at

t h e

cotton crop

o f 1 9 2 1

wi l l

probably exceed 8,000,000 bales, whereas

t h e

last Government estimate,

as of September 2 5 , p red i c t ed a crop of 6,537#000 ba le s. A s a resu l t

of th i s i nc r ea se i n t h e known supply of co t ton , t h e p r i c e of spot

co t ton

a t New

York

h a s

declined from over

2 0

cen ts

i n

September

t o

18.4-

cen ts

o n

November

2 3 , b u t i s

s t i l l about

5 0 p e r

cent higher than

t h e p r i ce s p r eva i l i ng i n August. Di s t r i c t N o . 5 (Richmond) states

tha t t h e crop i n t h e southern half of South Carolina w as p r a c t i c a l l y

a fa i lu re , whereas a fair crop w as gathered i n t h e sec t ion nor th of

Solumbia a n d i n North Carol ina. Reports from D i s t ri c t No. 6 (Atlanta,?

ind ic a te th a t co t ton cu l t iv a t io n dur ing

t h e

past season

w a s

r e l a t i v e l y

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much more successful i n Mi ss is si pp i, Alabama, and Tennessee than i n

t h e eas t e rn s ec t i on o f t h e Di s t r i c t . Continued d r y weather h a s been

favorab l e t o t h e ha rves t i ng o f th e cotton crop i n D i s t r i c t No, 11

(Da l l a s ) and very l i t t l e co t ton remains t o b e picked i n a n y p a r t of

t h a t D i s t r i c t .

TQBACCO,

T he

November

1

es t ima t e

f o r

tobacco showed

an

increase

t o

1,020/374,000 pounds,

b u t t h e

crop

i s

s t i l l on ly about two- th i r ds

t h a t of las t year , t h e r edu cti on being found very lar ge ly i n t h e

manufactured an d export types . T he markets of North Carolina and

Virginia were active during October, b u t s t i l l l a rg e r s a l e s were

witnessed dur ing t h e f i r s t tw o weeks of November because of be t t e r

weather f o r t h e p repa ra t i on of l ea f f o r market. Bet ter pr ic es ,

averaging $ 3 0 , 8 7

p a r

1 0 0 pounds, were realized during October than

during either September,

l g 2 1 o r

October,

1 $ 2 0 , a n d

grades coming

on

t h e market during November have shown soms further improvement, so

th at s t i l l b et te r pr ic es have been r ea l iz e d. Medium and fine grades

a r e advancing s teadi ly, and buyers appear t o b e anxious t o secure

a l l good leaf of fe re d, b u t t h e demand continues poor f o r l o w grade

tobacco, which comprises

a

l a rge pa r t

of

th i s yea r ' s c rop .

I n t h e

w e s t e r n d i s t r i c t s

of

Kentucky-Tennessee, whose tobacco moves

t o

market

l a t e r t h a n

i n t h e

e a s t ,

t h e

outs tanding fea ture

h a s

been

t h e

announce-

ment that t h e Burley Tobacco Growers Cooperative Association h a s signed

up about 8 5 p e r cent of th i s year ' s c rop and can now proceed with

marketing arrangements. T he cigar leaf tobacco market i n D i s t r i c t

No. 3 (Ph i l ade lph i a ) h a s h a d t h e d u l l e s t f a l l i t h a s exper ienced f o r

years , a n d t h e ques t i on of p r i c e s i s a stumbling block t o recovery.

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—7~ X—3 2 56

October w a s t h e best month experienced this year b y t h e cigar manu-

f a c tu r in g in d u s t ry i n t h a t D i s t r i c t , b u t th e re a re now some evidences

of

di min is hin g demand, althoug h

t h e

ma jo r i t y

of

manufacturers continue

t o receive orders fas ter than they c a n f i l l t h e m. T he demand f o r

manufactured tobacco i n D i s t r i c t N o . 5 (Richmond) h a s been a s strong

during October a s during any e a r l i e r month t h i s yea r, although export

t rad e cont inues l i g h t , most o f t h e or de rs coming from La t in America,

I n both c igars and manufactured products, t h e o f f e r i n g of new brands

a t prices lower than those f o r established goods continues.

FRUIT. T he apple crop continued t o de te r i or a t e during October

a n d t h e est imated product ion i s only

102,290,000

busnels, which i s

p e r

cent less than

t h e

product ion

i n 1 9 2 0 . T he

crop

h a s

been

a

f a i l u r e

i n almost a l l s t a t e s e a s t o f t h e Rocky Mountains, wnereas apple production

i n s t a t e s we st o f t h e Rocky Mountains will amount t o about kl,392,000

bushe ls

i n 1 9 2 1 , a s

compared with

30,952,000

bushe ls

i n I92O,

Apples

matured s o rap id ly i n D i s t r i c t B o . 1 2 ( S a n Francisco) that s torage

fa c i l i t i e s we re i n a d e q u a te , and a temporary glut o f t n e market ensued.

Total production of c i t r u s f r u i t s i n 1 9 2 1 wi l l probably b e considerably

l a rg e r t h a n

i n 1 9 2 0 ,

d e sp i t e

t h e

d e s t r u c t i o n

of

about

1 0 p e r

cent

of

t h e Flor ida crops by a recen t s torm. Di s t r i c t N o . 6 (At lan ta ) repor t s

that more grapefrui t wil l b e shipped from Flo ri da t h i s year than l a s t

year , b u t th e re may be some diminution i n t h e shipments of oranges.

Reports from Di st r i c t N o . 1 2 ( S a n Francisco) indicate that shipments of

the new crop of oranges an d lemons from California should b e l a r g e r

during

t h e

crop year ending October

31 »

P r i c e s

of

between

$6 and $7 a

b o x a r e being pai d f o r t h e be t te r g rades of Florida oranges, wnile small

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X-325b

&nd poor ly co lored f r u i t ha rd ly fe tch es a s u f f i c i e n t p r i c e t o cover

f r e i gh t charges . Product ion

of

wine

an d

tab le grapes

i n

Ca l i fo rn i a

only amounted t o about 388,000 tons during 1 9 2 1 , a s compared with

540,000 tons

i n 1 9 2 0 , b u t

shipments totaled 2$,$1$ cars

u p t o

November

5 , a s compared with 25,309 cars i n t h e corresponding per iod o f 1 9 2 0 .

T he

Ca l i fo rn i a p roduc t ion

of

r a i s i n s

w a s

also unusual ly l ight dur ing

1 9 2 1 , b u t t h e qua l i t y i s except ional ly good, d u e t o a favorable drying

season.

GRAIN MOVEMENTS.

T he

volume

o L

g r a i n movements showed some

further cur ta i lment dur ing October , b u t to ta l sh ipments o f 1 9 2 1 crops

from

t h e

far ms have been very heavy. Wheat r e c e i p t s

a t

leading primary

markets

i n

October were smaller than

i n

September,

b u t

were s l igh t ly

l a rge r t han

i n

October,

1 9 2 0 .

Rece ip t s

of

wheat

a t

Minneapolis

and

Duluth amounted

t o

27,744,836 bushels

i n

October,

a s

compared with

32,108,426 bushels i n September a n d 26,278,983 bushels i n October, 1 9 2 0 .

I n t h e

four pr incipal markets

of

D i s t r i c t

N o . 1 0

(Kansas City)

12,653#800 bushels

of

wheat were received

i n

October

i n

compariso n wi th

21,981,400 bushels i n September an d 12,394,150 bushels i n October, 1 5 2 0 .

Rece ip t s

a t

th ese f ou r mark ets from Jul y

1 t o

October

3 1

were about

8 2 p e r

cent greater than

i n t h e

corresponding per i od

o f 1 9 2 0 ,

Corn

receipts showed

a

s l i gh t dec l i ne

i n

October,

b u t

were very much larger

than

i n

October,

1 $ 2 0 .

D i s t r i c t

N o . 1 0

(Kansas City) reports that

new

corn i s beginning t o move t o t h e markets, b u t tha t rece ip t s cont inue

l i g h t

d u e t o t h e l o w

p r i c e

a t

which

i t h a s

been s e l l i n g . Movement

of

other important grains

w a s

also somewhat abated

i n

October, Stock s

of

gi-a-in a t 1 1 in t e r i o r ce nt er s were, however, f u r t h e r augmented durin g

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t h e month- A t Minneapolis an d Duluth stocks of wheat increased 43

p e r cent, corn 1 2 4 p e r cent, cats 1 5 p e r cent, barley 1 3 p e r cent, and

r y e 2 1 p e r

cen t .

The

most noteworthy change

i n

volume

of

grain stocks

a t eight seaboard centers was an increase of 73 p er cent i n t h e stocks

of corn.

SiQJIE, Output of mil ls represent ing 7 5 p e r cent of t o t a l p r o -

Auction i n D i s t r i c t No. 9 (Minneapolis) was 2,969,0o9 barrels during

October, an increase of 7 pe r cent a s compared with 2 ,

66

421 barrels

during September, and an increase cof 23 per cent a s compared with

2,427, 749 barrels during October, 1 9 2 0 . Production of m i l l s i n

D i s t r i c t $ 0 . 1 0 (Kansas City) representing 6 $ p e r cent of the to ta l

output

of

t ha t D i s t r i c t , amounted dur ing October

t o

2,295/7*9 barrels,

an increase of 53 p er cent over t h e October, 1 9 2 0 f igu re of 1,502,721

b a r r e l s . I n D i s t r i c t No, 12 (San Francisco), production of 63 mills

during October was 997/325 barrels, an increase of 2 , 6 p e r cent over

t h e

September figure

of

970,632 ba r r e l s

f o r

6 4 mi ll s. Pric e decli nes

were reported on a l l grades of flour during October, b u t a pa r t i a l

recovery w as noted during November. T he t rade i s s ta ted t o have been

somewhat depressed by the decl ine i n wheat pr ic es . This was evidenced

i n D i s t r i c t No. 10 (Kansas City) by r epo r t s of curta i lment of shipping

i n s t r u c t i o n s on old orders , a s wel l a s bytthe slowing down of new

orders. Business i n D i s t r i c t N o . 8 ( S t . Louis) h a s been irregular

an d

unsa t i s f ac to ry

t o t h e

s e l l e r . Domestic demand cont inues

i n

f a i r

volume, b ut i s on a hand t o mouth bas i s . Some export bus in es s i s r e -

ported

i n t h e

Di st r i c t , mainly

t o

western Europe,

b u t

export demand

i n D i s t r i c t No, 12 (San Francisco) dwindled t o small proportions i n

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October , Mil lers

i n

th a t s e c t io n

a r e

repor ted

t o b e

await ing

further developments

i n t h e

wheat market before buying stocks

of

wheat

a n d

expanding operations.

L I V E S T O C K . Heavy movement

of

l ive s tock

t o

market

w a s r e -

por te d du ri ng October* Rec ei pt s

of

c a t t l e

a n d

c a lv e s

a t 1 5

western

mar ket s duri ng t ha t month were

1 ,

J12,917 head, corr espon ding

t o a n

index number

o f 1 7 0 , as

compared w i t h 1, 417 ,2 59 head duri ng September,

corresponding

t o a n

index number

of 141, and

1,621,295 head during

October,

1 9 2 0 ,

corresponding

t o a n

index number

o f l 6 l _

Receipts

of

ho gs in cr ea se d from 1,7 33, 827 head du ri ng September

t o

2,057*

2 3 1

head during October,

a s

compared wi th 1, 791 ,88 1 head dur in g October ,

1 9 2 0 , t h e

respective index numbers being

8 1 , 9 ^ a n d 8 2 .

October

r e c e i p t s of sheep were 1,542,143 head, a s compared with 1,651,659

head during September a n d 1,864,728 head during October, 1 9 2 0 , t h e

respective index numbers being 1 3 $ , 1 2 1 , a n d 1 3 6 . October ship ment s

of

s to c k e r

a n d

f e e d e r c a t t l e

an d

calves from

3 4

markets were

5 7 p e r

cent larger than during September, although shipments

of

sheep

and

lambs were s l ig ht ly le ss ,

b u t i n

both cases

t h e

figures were very

much less than

a

year

a g o .

Southern c a t t l e have been shipped

t o

Montana t h i s f a l l

f o r

winter feeding,

d u e t o t h e

abundance

of

good

winter range

a n d t h e

large forage supply

of

h igh qua l i ty

h a y .

P r a c t i c a l l y a l l c a t t l e an d sheep i n D i s t r i c t N o . 1 1 (Dallas) have

been driven t o wi nte r ranges an d graz ing cond i t ions a r e reported above

normal, a l though r a i n f a l l

i s now

needed

t o

star t growth

of

win te r

and

spr ing feed .

T he

a c t i v i t i e s

of the War

Finance Corporation

i n

that

D i s t r i c t have engendered b et t er f ee li ng among cat tle men .

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—3.1. —

X-3250

Twenty- f ive represen ta t ive packers repor t a n in c re a se of

6

%

3 p e r - c e n t i n October sales (measured i n dol la rs ) over those

during September, b u t a dec l ine of 2 $ . 6 p e r cent a s compared with

October, 1 9 2 0 . Fres h meats and l a r d f o r domestic trade have been

moving well a n d t h e r e h a s been an improvement i n t h e demand f o r

cheaper cuts

of

beef

an d

pork

i n

many l o ca l i t i es * There

was

improvement

i n

November

i n t h e

demand from Great Britain

and

t>jie Continent f o r packing house products. T he fresh meat trade

w as reported generally slow during October i n D i s t r i c t N o . 1 0

(Kansas City), and conditions were more stable than i n September,

a l thoggh re ta i lers bought only f o r t h e immediate requirements of

t h e i r t r a d e .

Product ion of bituminous coal i n October w a s l a rg e r t h a n

dur ing a n y month o f t h e current year . T he steady improvement

evident during September an d October w as ma te r i a l l y a c c e l e r a t e d

dur ing t h e l a s t t e n days of October, when, under t h e t h r e a t o f t h e

strike, heavy demands f o r spo t de l i ve r i es appeared . Af t e r t h e

s t r i k e c a l l w a s r e scin d ed , a c t i v i t y i n t h e market ceased* P r o -

duc tio n increa sed from 35,105,000 tons

i n

September

t o

43,741,000

to n s i n October, which w a s , however, below t h e October, 1 9 2 0

p ro d u c t io n

of

52,144,000 tons.

T he

respective index numbers

a r e

9 5 , 1 1 3 , a n d 1 4 . D i s t r i c t No. 3 (P h i l a d e lp h ia ) r e p o r t s t h a t

although prices rose somewhat when

t h e

str ike threatened, they

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- 1 2 -

X-3256

have gradual ly reacted a nd a r e now a t t h e leve ls p reva i l ing dur ing ea r ly

October . Dis t r ic t

N o. 7

(Chicago) reports that

t h e

r e d u c t io n

i n t h- e p r o -

duc t ion

of

domest ic s izes

h a s

caused

a

decrease

i n t h e

amount

of

screenings

i n t h e

hands

of

o p e ra to r s ,

s o

t h a t

t h e

p r i c e

i n t h e

open market

h a s r e -

mained throughout October

a t a

level higher than during September.

D i s -

t r i c t

N o . 1 0

(Kansas City) s ta te s th at gener al ly

t h e

c o a l s i t u a t io n

i s

considered dul l , a l though

t h e

October percentage

of

l o s s

of

a c t i v i t y

a t

t h e

mines

o n

account

of "no

market

w a s

very mater ia l ly reduced

i n

Colorado,

Missour i ,

a n d

Oklahoma,

a s

compared with

t h e

month

of

September.

T he inc reased p roduc t ion of anthraci te coal during October was n o

doubt caused

b y t h e

speeding

u p a t t h e

time

o f t h e

th rea tened ra i l road

s t r ike . P roduc t ion

w a s

low er, however, tha n

i n a n y

month

of

October

f o r

t h e

l a s t e ig h t y e a r s .

T he

output this October

w a s

7>

530,000

to n s

as co m-

pared with t h e September figure of 7,124,000 to n s . T he respect ive index

numbers

a r e 1 0 2 a nd $ 6 .

Although

t h e

demand

w as

st imulated temporar i ly

consumers

are n o w

w i l l i n g

t o

purchase only

i n

sma ll l o t s . D i s t r i c t

No . 3

(P h i l a d e lp h ia ) r e p o r t s t h a t

t h e

demand

f o r

steam coal

i s

grea te r than

i t

w a s i n t h e

summer,

b u t

orders

a r e

small

a n d d u e t o t h e

i n s t a l l a t i o n

o f o i l

h e a t i n g p l a n t s i n many hotels an d o f f i c e b u i ld in g s , t h e market m a y b e p e r -

manently narrowed.

T he

improvement

i n t h e

i ro n

an d

s t e e l i n d u s t ry

i n

September

and

October continued

t o b e

r e f l e c t e d

i n a n

increased product ion

of

coke.

B e e -

hiv e coke pro duc ti on inc rea se d from

289,000

tons

i n

September, corresponding

t o a n

index number

o f 1 1 , t o

4l6 ,000 tons

i n

October, corre spon ding

t o a n

index number

of

1 6 . By-product coke pro duct ion inc rea sed sim il ar ly from

1,423, 000 t o n s i n September t o 1 ,734 ,000 tons i n October, t h e r e sp e c t iv e

in*ax numbers being

l 6 l a nd 197 .

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- 13 - x-3256

p

£TROTJSUM: Du ri ng Oc to be r t h e r e was a f u r t h e r n a r r o w in g o f t h e s l i g h t

margin between domestic production o f crude o i l a nd i t s consumption. Beports

f o r t h e seve ra l impor tan t o i l f i e l d s i n d i c a t e t h a t o u tp u t i s s t i l l c u r t a i l e d .

I t i s r e p o r t e d t h a t t h e demand f o r an d p r i c e of gasol ine weakened cons ider-

ab ly , d u e most ly to the "bad w e ath er p r e v a i l i n g i n t h e norbh a n d north-vest

a n d t h e

n o r m a l f a l l i n g

o f f o f

consumption

a t

this t ime

o f t h e

y e a r .

T h e

p r i c e

o f

crude petroleum advanced

i n

p r a c t i c a l l y

a l l

f i e l d s .

D i s t r i c t No . 1 0 (Kansas City) reports that October development opera-

tions show a s l i g h t d e c r e a s e i n t h e number of wel ls comple ted a n d a l s o i n

t h e number o f b a r r e l s d a i l y new p r o d u c t i o n a s coirparsiwith September, while

d r i l l i n g ope ra t io ns dur in g Oc tober show

a

ga in

of 36 new

r i g s

a s

compared

with September, b u t were 3 5 p e r cent less than a yea r a g o . Stock o f crude

o i l h e ld i n Kansas a n d Oklahoma aggrega ted 65,936, l4s barre ls a t t h e e n d

o f September, a n in c r e a s e of 1 ,097 ,643 ba r r e l s dur ing t h e month.

Produc t ion

o f

pe t ro leum

i n

Kansas

a n d

Oklahoma during

t h e

month

o f

October

'

averaged approximately

UoU,

125 ba r r e l s da i ly , a ccord ing t o u n o f f i c i a l

r e p o r t s . A s compared with a y e a r a g o t h i s i n d i c a t e s a r e d u c t i o n of 7,750

b a r r e l s i n average da i l y produ c t io n a n d a to t a l d e c r e a s e of 240,250 barre ls

f o r t h e month.

Produc t ion o f crude pe troleum i n D i s t r i c t N o . 1 1 (Da l l a s ) con t inued t o

d e c r e a s e . H i e t ot a l o utput dur in g October w as 9 ,9^1 ,748 ba r re l s which

r e p r e s e n t e d

a

20,282 b a r r e l d ecre ase from September pro duc tio n-

New

comple t ions i n th i s Dis t r i c t numbered 1 9 2 we l l s , on ly Q2 o f which were

p r o d u c e r s ,

a s

compared with

l l 6

produce rs

o u t o f 1 7 1

comple t ions

f o r

September.

D ue t o t h e

r i s e

i n

p r i c e s t h e r e

h a s

been

a

resumption

of

d r i l l -

i n g i n th i s s e c t i o n . A f t e r n e a r l y tw o months of dispute over wage ai , iust-

ments

a n d

working rules

i n t h e

C a l i f o r n i a f i e l d s ,

a

s e t t l e m e n t

h a s

been

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1

— 14

y-3256

obta ined a n d work h a s been resumed o n a l l l e a s e s . On account o f t h e s t r ike

t h e l o w

f i g u r e

of

227,957 ba rr e l s

of

average dai ly product ion

w as

reported*

Although consumption during October decreased

i t w a s

s t i l l c o n si d e r ab l y

i n excess of ou tpu t , a n d stored stocks were further reduced b y 555,039

ba rr e l s , only 33,116,456 ba rr e l s being hel d a t t h e e n d o f October , Thi r ty -

two new wel l s , wi th a n in i t i a l d a i ly p ro du c t io n o f 14,825 b a r r e l s , were

completed during t h e month*

IBON AND STffBL; During October d i s t i n c t improvement w as ev iden t i n

t h e i ro n a n d steel industry* P i g iron production during that month amour)ted

t o

1,233,232 tons, corresponding

t o a n

index number

of 53> as

compared with

9^5>529 tons during September, corresponding

to an

index number

of 43+

Steel

ingot production showed

a

somewhat gr ea t er i nc r ea s e, from 1*174,740 cons

during September t o 1,616,810 tons during October, t h e respect ive index

numbers being 51 and 70* O n November 1 , 9 5 furnaces were i n b l a s t , a s

compared with 84 on October • The u n f i l l e d o r de r s o f t h e United States

Steel Corporation, however, n o t o n ly f a i l e d t o respond, b u t actually showed

a

d ecre ase , from 4,560,670 tons

a t t h e

c lose

o f

September

t o

4,286,829 tons

a t t h e

c lo se

of

October,

t h e

respective index numbers being

87 and 81, the

lowest since

May 3 1 > 1919»

November doe£

n o t

show

a

cont inuance

of the

improvement during t h e previous month, b u t ind ica tes tha t cond i t ions a t

b e s t a r e merely holdi ng th ei r own. In f a c t , D i s t r i c t No. 3 ( Philadelphia)

r e p o r t s " a d i s t in c t , though s l ig h t , reac t io n f rom t h e s t e a d i ly i n c re a s in g

activity that occurred during September a n d O c t o b e r P r i c e s r e f l e c t the

s lacken ing of demand• Af t e r a spirited advance during September an d October,

they have again weakened cn p r a c t i c a l l y a l l p ro d u c t s . T he advance of $5*00

on sheets which w as made some time a g o h a s been los t , a n d t h e lower figure

i t s e l f h a s been shaded. Lesse ning of demand h a s been most conspicuous i n

t h e l i gh te r p roduc ts , such a s sh e e t s a n d wire , which con tr ibu ted gre at l y

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- 15 - X-3256

t o t h e

recent increase

i n

s t ee l p r oduc t i on .

T he

he av ie r produ cts which

hav e been la gg in g

u p t o

this t ime

a r e

repor ted f rom Di s t r i c t

N o . 4

(Cleveland)

t o b e

making

a

be t t e r showing unde r demands o r i g i n a ti n g wit h some in cr ea se

of

genera l bus iness cons t ruc t ion ,

o i l

f i e l d work

a n d

rai l road buying, both

f o r c a r

r e p a i r s

a n d

r a i l s .

I n

D i s t r i c t No.

3

(Phi l ade lphia) output

a t

p r e s e n t i s somewhat i n excess of c u r r e n t d e l i v e r i e s . T he po l i cy o f p u r -

chaser s

i s t o

c a r r y

a s

l i t t l e m at e ri al

a s

poss ib le in to

t h e n e w

yea r ,

a s

l ower f r e ight r a t es an d product ion cos t s would ne ce ss i t a t e wr i t i ng o f f

in ve nt or ie s . Matty in qu ir ie s

f o r 1 9 2 2

d e l i v e r y

a r e

however being received.

AUTOMOBILES: Some

o f t h e

larger manufac turer s

of

automobi les

i n

Di s t r i c t

N o . 7

(Chicago) fur ther cur tai led product ion dur ing

t h e

l a t t e r p a r t

o f

October, when they discovered cars pi l ing u p i n t h e hands of d i s t r i b u t o r s

a n d

deale r s , pending

t h e

p r e s e n t a t i o n

of new

models.

I n

fa c t , r educt ion

of

product ion schedules

t o

conform

t o

approaching winter condi t ions , wi th

the i r l es sened sa les ,

h a s

been gen era l . Man ufac ture rs ' i i ipments dur ing

October were 17,323 carloads, a s compared with 19,002 carloads during

September,

b u t

were s l ight ly

i n

excess

o f t h e

October ,

1 9 2 0

f i gu r e .

Oct obe r d ri ve away

s

were 11,257 machines,

a s

compared with 13.840 machines

du rin g September. Busi ness

i n

t rucks dur ing

t h e

p a s t

f e w

months

h a s n o t

b e e n r e l a t i v e l y

a s

l a r ge

a s i n

passenger cars ,

NONFEPFOUS METALS:

T he

nonferrous metal markets

a r e

general ly quiet ,

wi th n o unusual demand expected f o r t h e remainder o f t h e y e a r . T he October

average p ri c e s show unif orm advances over

t h e

f i g u r e s

f o r

September,

a n d

lead, zinc a n d t i n averages were t h e highes t s ince May or June* T he pr ice

o f

copper

(New

York,

n e t

r e f i n e r y )

was 13

c e n t s

p e r

pound

on

November

l 6 , a s

conpared with 1 2 - 7 5 cen t s p e r pound on November 1 , whi le t h e p r i c e of lead

at New

York remained

a t 4 . 6 5

cents throughout

t h e

l a t t e r p a r t

o f

October

t o

t h e middle o f November. T he demand f o r zinc h a s shown l i t t l e improvement

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- 1 6 -

x

3 2 5 6

a n d t h e p r i c e o f 4 . 7 0 cen t s a t S t . Louis h a s been maintained dur in g t h e

month. Copper pr od uc ti on i n October amounted t o

2'1

>

157>75^

pounds i n

comparison with

a

product ion

o f

20,926,55** pounds

i n

September, October

p r oduc t i on o f copper i n D i s t r i c t No . 9 (Minneapol is ) a s i n d i c a t e d

by

t h e

f i g u r e s o f companies producing about

75

P ®

r

cen t o f t h e ref ined copper i n

t ha t Dis t r i c t r emained a t t h e same lo w level which h a s prevai l ed s ince t h e

s p r i ng o f 1 9 2 1 , Zinc pro duc tio n du rin g October remained a t almost t h e same

f i g u r e a s f o r September, Shipments of zinc f o r October were

10,311

tons

more than

t h e

amount produced,

so

that s tocks

o n

hand were reduced from

81,135 tons a t t h e beginning o f t h e month t o 70,824 tons on October

31«

D i s t r i c t N o, 10 (Kansas City) rep or ts t ha t ther e w as heavy shipment of zinc

ores during October, due in some measure t o a r ad i ca l i nc r eas e i n t h e value

o f t h e o r e , A

comparison

of

s t a t i s t i c s

f o r 1 9 2 1 t o t h e e n d o f

October with

t h e same period i n 1 9 2 0 re ve al s th at shipments o f zinc ores have been about

one-hal f i n amount a nd less than one- thi rd i n value, whi le lead o r e ship-

ments have decreased approximately one-third i n amount a n d two- th i rds i n

t a l u s . D i s t r i c t N o. 1 2 ( S a n Franci sco) s t a t e s tha t n o further improvement

i n t h e

gold

a n d

s i l ve r mi n i ng i ndus t r i e s

w as

repor ted dur ing October

and

t h e copper mining indu s t ry cont inu es gr eat ly de pressed. T he lead mines o f

Utah a nd Idaho, which produce appr oxi mate ly 5 0 p e r c e n t o f t h e United States

product ion of l e a d , a r e ope r a t i ng a t f u l l c a p a c i t y . I n t h i s D i s t r i c t t h e

demand f o r l ead i s s tro ng , consumption outr unni ng pro du ct ion .

COTTON TEXTILES; The u n s e t t l i n g e f f e c t

of a

drop

i n t h e

p r i c e

of raw

cotton fol lowing upon t h e i n i t i a t i o n of new pr ic e ad jus tme nts growing o u t

o f t h e previous advance h a s r e s u l t e d i n a s l i g h t l y l e s s e n e d a c t i v i t y i n t h e

indus t ry dur ing October . T he un ce r t a in ty mani fes ted i t s e l f , however , r a th er

i n a

h e s i t a n c y

o n t h e

p a r t

of

buyers

t o

p l ace

n e w

orders than

in any

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- i ? - X-3255

immediate curtai lment

of

m i l l a c t i v i t y .

An

examinat ion

of

c o t t o n s t a t i s t i c s

makes

i t

apparent tha t mi l l ac t i v i ty

w as

sus ta ined dur ing

t h e

month

a s

consumption amounted

t o

434,745 bales

i n

October,

a n

advance

of

almost

2 5 p e r

cent over

t h e

October f igures

o f t h e

preceding year ,

I n

New

Eng land , consumption

w as

s t a t e d

t o b e

l a r g e r

i n

October than

a t a n y

t ime during

t h e

pa s t year .

A t

present mi l l s

i n

tha t sec t ion

a r e

operat ing

a t

about

8 0 p e r

cent

of

capaci ty, whi le

i n

D i s t r i c t

N o .

3 (Ehi l adelphia)

t h e goods m i l l s shew a lesser degree o f ac t i v i t y , e st i ma t ed a t from 60 to

6 5 p e r cen t . Orders i n most cases a r e said t o b e n o more than suff icient

t o

cover

s i x

week's operat ions

o n t h e

prese nt running ba s i s

i n t h e

case

of

t h e

m i l l s

i n t h e

P h i l a d e l p h i a D i s t r i c t .

B u t

spr ing bus ine ss

i n

ginghams

an d

f ancy f ab r i c s o f f e r s

a

c o n t r a s t

t o t h e

general market

a n d i s

repor ted

t o b e

ex ce ll en t. Yarn pr ic es have f a l l e n somewhat sin ce weavers

and

very

kn i t t e r s covered th e i r r equi remen ts / l a rge ly

i n

September

an d f ew new

orders

a r e

being placed

a t t h e

present t ime.

T he

yarn mi l l s

i n

D i s t r i c t

N o.

3

(Philadelphia) showed

a

s l i gh t r educ t i on

i n

a c t i v i t y , o p e r a t i ng

a t

about

6 5 p e r cent of capac i t y . A s orders booked wil l b e f i l l e d w i t h i n t h e next

s i x weeks , reduct ion i n t h e sca le of ope r a t i ons i s being contemplated b y

manufacturers .

Ac t i v i t y

i n t h e

southern mi l l s cont inu es

t o b e

greater than

i n

other

s ec t i ons

o f t h e

country.

I n

D i s t r i c t

N o . 6

(At lanta) mi l l s genera l ly

throughout

t h e

D i s t r i c t

a r e

ope r a t i ng

on

f u l l t ime

a n d

some

a r e

running

night sh i f t s . Cloth product ion

o f

48 m i l l s r e p o r t i n g

t o t h e

Federal Reserve

Bank

o f

Atlanta showed

a n

increase

o f

3 - 5

P

e r

cent

i n

yardage

i n

October

a s compared with September a n d o f 1 7 . 4 p e r cent a s compared with Octooer,

1 9 2 0 .

Cloth shipments inc rea sed

7 - 5

p e r

cent

f o r t h e

month

a n d

7 3 - 2 P

fcr

cent over those

f o r a

year

a g o .

Orders

en

hand

a t t h e e n d o f t h e

month

7/17/2019 frsbog_mim_v15_1249.pdf


- ig . X-3256

h a d dec l i ned 5 * 2 p e r c e n t "but were 2 8 . 4 p e r cent above those f o r t h e e n d

o f October , 1 9 2 0 . A m a j o r i t y of yarn a s wel l a s c l o t h m i l l s a r e opera t ing

a t f u l l c a p a c i t y o r even running over t ime, a l though repor t ing es tabl i sh-

ments said that a c e s s a t i o n o f order s h a d fol lowed t h e recent drop i n

co tt on pr i c es . Yam;~production i n pounds f o r m i l l s w a s 1 . 6 p e r cent less

i n October than i n September, b u t 3 3 - 6 p e r cent a>ove t h e output dur ing

October, 1 9 2 0 . Y&m shipments advanced 1 2 . 9 p e r cen t a n d 6 2 . 1 p e r cent

r e s p e c t i v e l y a s compared with t h e preceding month a n d wi t h t h e same month

a year a g o . Orders on hand were $ . 4 p e r cent above those f o r t h e e n d o f

o f September a n d 85*8 p e r cent above t h e t o t a l s f o r t h e e n d o f October,1920.

COTTON FINISHING: Reports fr om

3 5 o f t h e 5 8

members belonging

t o

t h e

Nat ional Associat ion

of

F i n i s h e r s

o f

Cotton Fabrics show that during

t h e

month

o f

October there

was an

i nc r eas e

i n

f i n i s h e d y a r d s b i l l e d ,

t h e

total amount ing

t o

105,2g6,4l4

a s

compared, wit h 10 1,8 24 ,7 95

f o r

September.

However,

a

drop

i n

f i n i sh in g order s r ece ived dur ing

t h e

month

w a s

recorded,

t h e

f i g u r e

f o r

October being 100,909,9^5

a s

compared wit h 107 ,336 ,42?

f o r

t h e

preceding month.

T he

percentage

o f

average capaci ty

i n

operat ion rose

s l i g i t l y f r o m 7 3 t o 77 f o r a l l D i s t r i c t s . T h e average work ahead a t t h e e n d

o f t h e

month f e l l from

1 1 t o 1 0

days.

WQQLEN TEXTILES: T he s t r i k e of the New York garment workers came a t

t h e e n d o f t h e per iod covered b y t h e r e p o r t s a n d i t s e f f e c t upon t h e

a c t i v i t y o f t h e mills manufacturing dress goods could n o t t h e r e f o r e b e gauged.

In New England t h e woolen a n d wors ted indus t ry h a s been running on a normal

b a s i s i n s p i t e of the f a c t t h a t t h e goods market a t t h e pre sen t t ime i s du l l .

I n D i s t r i c t No, 3 (Ph i la del phi a) dr es s goods mi l l s have been op era t in g a t

about 8 0 p e r cen t of c a p a c i t y . T he manufac turer s o f k n i t t i n g y a r n s i n

7/17/2019 frsbog_mim_v15_1249.pdf


»

X - 3 2 5 6

— 1 ^ —

D i s t r i c t

No. 3

(Phi l ade l phia) cont inue

t o do a

good business

a n d

many

o f

them have order s su f f i c i e n t t o enfeb.le them t o r u n a t f u l l cap ac i ty wel l

into 1922* I n D i s t r i c t No . 4 (Cleve land) r epor t ing t ex t i l e mi l l s have

n o t h a d a s

good business

i n

October

a s i n

September.

I n t h e

former month

they were opera t in g ne ar ca pac i ty b u t s ince then ord ers have f a l l e n o f f a n d

i n October op er ati on s averaged only about 7 0 p e r cent o f normal , Th e

Census figure showing t h e percentage o f idle machine hours t o t h e total hours

repor ted ind ica ted a slight improvement f o r t h e month o f October a s compared

with September, O n November 1 , f o r example, t h e percentage o f idle hours

f o r

looms wider than

5 0 "

reed space

h a d

dropped

t o 2 4 - 9 p e r

cent

a s

compared

wi th 2 5 . 8 p e r cent f o r October 1 . T h e cor responding f igures f o r looms f o r

5 0 " reed space o r less were 2 7 . 0 p e r cent a n d 2 7 - 5 P

e r

cent r espec t ive ly .

T he percentage of id le hours i n t h e case o f woolen spindles dropped from

2 0 . 9 P

e r

cent t o 1 8 . 3 p e r cent a n d t h e f i g u r e f o r worsted spindles showed a

s l i g h t i ncrea s e f ro m

7 - 8 p e r

c e n t

t o 8 . 1 p e r

c e n t .

T he

market

f o r r a w

wool showed a n upward tendency with a s l i g h t i n c r e a s e i n volume o f s a l e s

during t h e period covered b y t h e r e p o rt . D i s t r i c t No. 1 (B o s to n) says

tha t Dealers rep ort th at there h a s been an a ppre c i a b l e reduc t i o n i n t h e

s t o c k s

o f t h e

more popular wools

and

t h a t

i t i s

s om et im es d i f f i c u l t

t o b u y

l a r g e q u a n t i t i e s o f t h e ki nds des i re d wi tho ut ca us i ng t h e p r i c e s t o advance. ™

CLOTHING-:

T he

s t r i k e

o f

approximately 50,000 members

o f t h e

I n t e r n a t i o n a l

La d ie s ' Garment Work ers' Hhiton whi ch be ga n November ity-, h a s who l l y t i ed u p

some o f t h e l a r g er women's a ppa re l f a c t o r i e s of New York although numbers

o f t h e

s mal le r manufacturers have s ign ed co nt rac ts wi th

t h e

u n i o n

a n d a r e

b e g i n n i n g t o o pera te a g a i n . T he st r i ke occurs between seasons and a speedy

7/17/2019 frsbog_mim_v15_1249.pdf


- 2 0 -

x-3256

se tt le me nt would, mean t h a t outp ut would cons eq uen tl y

b e

on ly s l igh t ly

a f f e c t e d

s o f a r a s

l o s s

of

t ime

i s

c on ce rn ed . S t a t i s t i c s

o f

produc t ion

f o r

men's c lo thi ng from Di st r i c t

Bo. 7

(Chicago)

an d

wnolesa le sa le s

of

both

men's

an d

women's clothing

i n

D i s t r i c t s

Bo. 2 (Bew

York)

an d Bo . 8

(St .Louis)

ind ica te tha t cond i t ions

i n t h e

in du st ry were fa vor ab le dur ing October.

I n

D i s t r i c t

Bo. 7

(Chicago) returns from

s i x

la rge manufac tu re rs

of

men's

clothing showed that production

and

shipments

h a d

f a l l e n

o f f l b , 4 p e r

cent

an d

38*5

p e r

cen t respec t ive ly

a s

compared with September

b u t a s a

r e su l t

o f th e very la te season, t h e produc t ion f ig ure s were 4 5 - 5 p e r cent ahead of

those

f o r

l a s t y e a r

a n d

shipments were

3 0 - 2 p e r

cent

i n

ex ces s. Orders

placed

f o r

spring from

t h e

opening

of the

season

t o

date were

4 l

. g

p e r

cent

grea te r than

f o r t h e

corresponding peri od

i n 1 $ 2 0 . I n t h e

case

o f 1 )

t a i l o r s - t o - t h e - t r a d e , t h e number of suits made i n October a s compared with

September increased

2 9 p e r

c e n t ,

b u t

to t a l s we re

1 . 7

p e r

cent below those

f o r

October,

1 $ 2 0 .

Shipments ros e

2 6 . 5 p e r

cent

a s

compared with September,

b u t

were

7 - 9 p e r

cent below l a s t year . Orders were 2 7

. 4 p e r

cent greater

i n

October than

i n

September

a n d . 8 of 1 p e r

cent below those

f o r

October,

1 9 2 0 . T h e

f i g u r e s

f o r t h e

five large cut-trim-make concerns show

t h e

same trend b u t " t h e improvement here i s less marked than i t i s i n t h e other

branches

o f t h e

c lo th in g in d u s t ry .

T he

f i g u r e s

a r e a s

f e l l o w s :

f o r

number

of su i t s o rdered , a n inc rease of l b . 3 p e r cent a s compared with September

and a decrease o f 1 0 . 5 p e r cent a s compared with October, 1 9 2 0 ; f o r number

of suits made, a n in c re a se o f 1 9 . 7 p e r cent a s compared with September and

a

decrease

of 7*9 P

d r

cent

a s

compared with October,

1 9 2 0 ; f o r

number

of

sui ts shipped,

a n

in c re a se

of 1 6 . 8 p e r

cent

a s


and a

decrease

of

8 . 5

p e r

cent

a s

compared with October,

1 9 2 0 .

Sa les

of 11

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- 2i - •

x-3?5o

r epo r t i ng w ho l es a le c l o t h i ng f i r m

i n

D i s t r i c t

No. 2 (New

fork) showed

a n

advance

o f 4 4 . 3 P

Gi

~

cent

i n

October

am


ana of 5*3

p e r

cent

a s

compared with October

o f t h e

preceding year .

I n

D i s t r i c t

N o. 8

( S t .

Lords) sales

of 2J

lea din g clot hi ng f i rms were f rom

4 t o 1 2 . £ p e r

cent

grea te r than

i n

September

an d

from

"( to 3.6 per

cent above sales

f o r a

year

a g o . I t w a s sea ted , however, th at buying i n t h a t D i s t r i c t ' w a s dull i n t h e

e a r l y p a r t

of

November.

SILK: Peports from

th e

different sections

in

which silk mills

are

located testified

to a

surprising degree

of

unevenness withine

th e

industry.

In

Paters

on, N. J . , as in

previous months, operations remained

at low ebb.

The

percentage

of

active loom hours

to

total available

was

only

I S . 5 per

cent

as

compared with

24 per

cent

on

October

8. In

North Hudson,

the

correspond-

in g

figure

fo r

November

was 50.8 per

cent, which contrasts unfavorably with

th e

October figure

of

somewhat more than

62 per

cent. Returns made

by l6

manufacturers

of

broad silk located

in

District

No. 3

(Philadelphia)

are of

a

conflicting nature, although decidedly greater activity

i s

indicated

than that prevailing

in the

centers just mentioned. Half

of the

manufacturers

state that business

i s

poor

and

demand decreasing, while

th e

others assert

that

th e

reverse

i s

true.

The

former group

are

averaging about

5

P

s r

cent

of operating capacity; th e latter, 6? per cent. Prices of raw silk have

advanced, creating a considerable amount of indecision among prospective

buyers. Imports f e l l from 4,597*642 pounds

in

September

to

3,1^0,516 pounds

in October.

R3SIEBY: Manufacturers

of

s i l k hos i e r y

i n

D i s t r i c t

N o. 3

(Phi lade lphia)

cont inued t o d o a n exce l l en t bus i nes s a n d p r a c t i c a l l y a l l t h e m i l l s a r e sold

ahead

f o r t w o o r

th re e months. There

i s a

demand

f o r

nove l t y l i ne s

f o r t h e

hol iday t r ade

b u t

fewer inqui r i es

f o r

mercerized hosiery have been made

7/17/2019 frsbog_mim_v15_1249.pdf


* x-3256

- 2 2 -

m

fol low ing pr ic e advances . Twenty-five f i rms i n D i s t r i c t N o . 3 (Ph i lade lph ia ;

which sell t o t h e wholesale trade showed a n in c re a se i n r.urnber of p a i r s of

hose manufactured during October of l 6 . 8 p e r cen t a s compared with September,

Shipments during t h e month increased l U , 7 p e r cen t an d u n f i l l e d o rd e r s a t

t h e e n d o f t h e menth were 2 7 * 1 p e r cc-nb above those on hand a t th e end of

September*

T he

nine report ing f i rms which se l l

t o t h e

re ta i l t rade produced

4 p e r cen t le ss i n October than during t h e preceding month and shipments

an d u n f i l l e d o r d e rs a l s o f e l l o f f b y 1 2 . 1 p e r cent a n d 2 . 8 p a r cent respect

tively* There

h a s

been further improvement

i n t h e

manufacture

of

cot ton

h o s i e r y i n D i s t r i c t No„ 6 (Atlanta) where report ing mil ls a r e opera t ing

a t t h e r a t e of 80 to 100 p e r cent of c a p a c i ty . T he ou tpu t of these mi ll s

i s larger than f o r t h e same pe ii od i n 1$20» There h a s been a decrease i n

s tocks on hand and an inc rease of unf i l led o rders*

UNDEBWE B:

T he

comparative re po rt s rece ived from mi l ls engaged

i n

producing underwear continue

t o

show marked improvement

f o r

October

a s

compared with

t h e

September returns

f o r t h e

same mi l l s - Prod uct ion ros e

from 445,825 dozens i n September t o 487,99^ dozens i n October, a gain of

9 * 5 p e r cent» Un fi ll ed order s ro se from 809-996 dozens September 1 to

1»171,960 dozens October 1 , a gain of 44*7 p e r c e n t . New o r d e rs f e l l o f f

from 865,492 dozens re ce iv ed d uri ng September t o 537,928 dozens f o r October,

a l o s s o f 37*8 p e r ce nt . Shipments de cre ase d from 497*854 dozens i n

September t o 477,810 dozens i n October, a l o s s o f 4 * 0 p e r cent .

Fortjjr-one m i l l s showing

an

ac tua l p roduc t ion

of

513,264 dozens

f o r t h e

month of October repor t unf i l led o rders on hand o f 1,284,718 dozens on

November 1 , o r n e a r l y tw o months actuWb pr od uc t ' so ld , t h e amount of u n f i l l e d

or de rs havi ng ri s e n from 1*191,688 dozens

on

October

1 , a

gain

o f 7 - 8 p e r

cent.

7/17/2019 frsbog_mim_v15_1249.pdf


- 23 - X-J256

Shipments ro se fr om Ul8,258 dozens i n September t o 503*2 6 l dozens i n October,

T he

ac tua l p roduct ion

of 56

mi l l s r epo r t i ng

f o r

October amounted

t o

675,205

dozens o f 87*3 p e r cent o f normal, a s compared with 84*4 p e r cent o f normal

product ion f o r t h e 5 5 mzl ls th at rep or te d i n t h e preceding month, a n d 5 0 - ^

p e r

cent

f o r t h e 6 l

mi l l s tha t r epor ted

i n

October,

1 3 2 0 , O n e

m i ll opened

u p i n October , lea vin g fou r mi l l s s t i l l c losed . Product ion cont inues t o

incr ease s lowly de sp i t e t h e h i ghe r p r i ce s d u e t o advances i n co t t on , an d th e

f ac t tha t there h a s b e e n l i t t l e o r n o reduct ion i n labor costs*

SHOES

ND

LEATHER: Sales

o f

h i des

a n d

skins declined somewhat during

October, al though prices were well maintained. T he market f o r packer hides

became very active i n t h e third week o f November, a n d p r i c e s r e g i s t e r e d a

s l ight advance * T hi s ac t i v i t y h a s n o t a s y e t been r e f l ec t ed i n t h e market

f o r

co un tr y hi de s* Demand

f o r

heavy leather cont inued

t o

improve during

t h e

f i r s t three weeks of November, a n d quota t ions f o r heavy backs increased a t

both New York a n d Chicago, Di s t r i c t No, 3 ( Ph i l ade l ph i a ) r epo r t s t ha t t h e

upper leather market i s more active than i t h a s been, t h e bus iness being

c h i e f l y

i n

medium

a n d

lower grad es. Expo rts

a r e

s t ead i l y i nc r eas i ng ,

due to

increased purchases by Great Br it ai n, Spain a n d Japan# A s l i g h t improvement

i n demand f o r l e a t h e r b e l t i n g i s repor ted f rom both Di s t r i c t No . 3 ( P h i l a -

de l ph i a ) an d D i s t r i c t N o . 7 (Chicago),

Shoe manufacturing continued on a larg e sca le duri ng October, al thou gh

a c t i v i t y s t i l l a p p e a r s t o b e more general i n t h e West than i n t h e East*

October product ion

w a s

g r e a t l y

i n

excess

o f

October ,

1 9 2 0 , b u t

t h a t

was a

month o f extreme depression i j i t h e shoe indus t ry. T he output of shoes during

October reported b y nin e larg e manufa cturers i n D i s t r i c t No, 1 (Boston) was

5 * 7 p e r cent less than i n September, b u t SO p e r cent greater than i n

October, 1 9 2 0 . New orders were about 1 5 p e r cent i n excess of these

received i n

7/17/2019 frsbog_mim_v15_1249.pdf


September,

a n d 1 3 p e r

cent la rg er than

i n

October,

1 9 2 0 - T h e

s l i gh t

s lackening o f a c t i v i t y i n product ion i s ascr ibed t o t h e change i n seasons.

Fo r t y - f i ve r epo r t i ng f i r ms

i n

D i s t r i c t

No* 3

(Phi ladelphia) produced

2+7

p e r

cent less shoes

i n

October than

i n

September, while shipments declined

1 . 6 p e r cen t. Orders booked inc rea sed 2 8 » 7 p e r c ent , afid were 60*5 P

e r

cent i n excess o f t h e orders booked i n Oct obe r, 1920* Althou gh a few large

plants have booked orders f c . r r-pr

4

ng de?.ivery

;

most shoe mar, v.fac ture rs a r e

working

o n

order s

f o r

immediate shipm ent. Rep ort s from

2 7

manufac turer s

i n

D i s t r i c t

N o, 7

(Ch ica go) show

a n

increase

o f 5*9 P

e r

cent

i n

production

dur ing October* Un fi l l ed ord ers a t t h e e n d o f t h e month were 1 1 . 1 p e r cent

greater than

a t t h e

c l o s e

o f

September

a n d $ 8 . 2 p e r

cent greater than

a t

t h e

c lose

of

Octo ber, 1920* Eleven fi rm s

i n

D i s t r i c t

N o . 8 ( S t *

Louis)

repor t sales ranging f rom

3 2 t o 4 0 p e r

cent larger than

a

year

a g o .

Demand

c e n t e r s p r i n c i p a l l y o n moderate an d low-price shoes, a n d f a c t o r i e s i n

D i s t r i c t

J 8 0

8 ( S t . Louis) producing such grades a r e ope r a t i ng a t capaci ty .

Shoes prices were unchanged during October,

b u t

were from

3 5 t o ^ 5 P

e r

cent

les s than

i n

October,

1 9 2 0 ,

LUMBER:

A

marked improvement

i n

demand, par t i cu la r ly

f o r

upper grades

o f

lumber , i s ind ica ted

b y t h e

r e p o r t s

f o r

October from

t h e

var ious Dis t r i c t s»

D i s t r i c t

No# 6

(Atl ant a) re po rt s some ir re gu la r improvement dur ing

t h e

month

with only

a

s l ig h t inc rease over

t h e

September total

i n

product ion

f o r t h e

D i s t r i c t

a s a

whole.

T he

threatened s t r ike caused both orders

and

production

t o

decline toward

t h e e n d o f t h e

month.

T he

s ta tement

o f t h e

Southern Pine

Associat ion

f o r t h e

week ending October

2 8 ,

showed ac tu al pro duc ti on

o f t h e

1 3 0

r e p o r t i n g m i l l s

t o b e 2 0 . 5 p e r

ce nt below normal pro duc tio n* Stocks

a t

m i l l s

a r e l o w a n d

badly broken

and

buyers f ind

i t

d i f f i c u l t

t o

cover

the i r r equi rements

i n

high grade f inish

and

f loor ing*

and as t o

dimension*

Pr ices cont inue

t o

r i s e des p i t e

t h e

numerous recent advances.

7/17/2019 frsbog_mim_v15_1249.pdf


- 25 -

x-3256

Opera t ions

o f t h e

Northern Hemlock

a nd

Hardwood Manufacturers '

Associat ion, most of whose members a r e l oca t ed i n D i s t r i c t N o . 7 (Chicago),

show that f o r October shipments were 2 l 4 p e r cen t a n d that orders were 219

p e r cent o f produ ct ion . Repor ts f rom Di s t r i c t N o.

( S t . Louis) indicate

a

heavy demand

f o r

hardwoods

a n d f o r

s t r uc tu ra l lumber, advancing pr i c es ,

heavy shipments,

a n d

depleted s tocks .

T he

genera l pr i ce l eve l

of

yellow

pine showed a gain of approximately 2 5 p e r cent dur ing t h e month. The

volume o f yard buying diminished b u t demand o n t h e p a r t o f .rai lways f o r

c a r r e p a i r m a t e r i a l s a n d t h e wood consuming industr ies increased. I n

D i s t r i c t No . 9 (Minneapol is ) t h e October lumber c u t o f 8 , 9 3 0 , f e e t was

1 7 p s r cent l e s s than i n September a n d 5 3 p e r cent less than i n October,1920.

October shipments totaled 15,699,808 feet , about

t h e

same

a s t h e

September

f i g u r e ,

b u t

orders booked during

t h e

month were

2 0 p e r

cent larger than

t h e

September total

a n d 3 5 p e r

cent larger than

i n

October l a s t year . Thir ty - f iv e

m i l l s

i n

D i s t r i c t

No, 11

(Dal l as ) r epor t

an

average weekly production

of

13,577,^80 feet which w a s 3 2 p e r ce nt below norm al. Average week ly shipments

amounted t o 18,329,625 fee t . I n product ion n o not i ce abl e increase over the

September total i s shown b u t shipments have increased i n volume. Pri ce s of

l o w grade lumber have been steadily increasing while prices of upper grades

remained fai r ly cons tant .

I n

D i s t r i c t

N o . 1 2 ( S a n

Franci sco)

t h e

demand

f o r

lumber continued

t o

s t rengthen dur ing October

an d

showed

a

marked increase over

t h e

previous

months o f t h e ye ar . Pr ice advances were gen era l ly maint ained . Four fa ct or s

c o n t r i b u t e d t o t h e s t r e n g t h o f t h e October lumber market - a n expansion o f

demand i n t h e wood working in du s t r i es , la rg er buying of c a r m a t e r i a l f o r

r e pa i r s , increased yard buying, sus ta ine d by an acti te demand f o r bui ld ing

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- 2 6 -

X-3256

m a t e r i a l s ,

and

increased export shipments

t o

J apan . S t a t i s t i ca l

s t a t ements

of the

four lumber as so ci at io ns

of

this Dis t r ict show

a

volume of orders received during October which w a s 1 8 , 9 p e r cent greater

than actual product ion,

a nd 1 2 . 2 p e r

cent

i n

excess

of

shipments,

and

which represents

t h e

largest amount

of

business booked

i n a n y

month

since March, I92O. T he October c u t of t h e l 6 l r epo r t i ng mi l l s was

3SO,4c6,

0 00

f e e t

and

shipments amounted

t o

392>9?0#000 f e e t , P rodu ctio n,

which

i n

September

w a s 7 5 p e r

cent

of

normal,

i s now

es t imated

a s 8 5 p e r

cent

of

norma l. From

7 5 p s r

cent

t o 8 0 p e r

cent

o f t h e

normal output

of

l o g s

i s

being produced

a n d i t i s

expected that

a l l

a v a i l a b l e r a f t s

of l o gs w i l l b e sold be fo re camps cl os e. Curt ailm ent of product ion i s

r epor ted

i n t h e

shingle indus t ry.

BUILDINS, During

t h e

month

of

October

t h e

v a l u a t i o n

of

bui ld ing

permits i ssued

i n 1 6 6

selected ci t ies showed

a

s l ight increase over

September

i n

Dis t r i c tgNo.

1

(Boston),

No, 6

( At l an t a ) ,

Mo. 7

(Chicago),

and No. 9

(Minneapolis)

and a

s ubs t an t i a l i nc r eas e

i n

D i s t r i c t s

N o . 2

(New

York),

No. 3

( Ph i l ade l ph i a ) ,

N o . 4

(Cleveland) ,

N o . 1 0

(Kansas City),

a n d N o , 1 2 ( S a n Franci sco) . T he percentage of increase ranged from . 4

p e r

cent

i n

D i s t r i c t

No, 6

(At lanta)

t o 3 3 - 3 P

e r

cent

i n

D i s t r i c t

No. 2

(New

York). Dec rea ses from

t h e

September totals occurred only

i n

D i s t r i c t s

No. 5

(Richmond), No.36

( S t .

Louis)

and No. 11

(Dal las) .

These decreases were

1 1 . 4 p e r

cent ,

3 8 . 5 p e r

cent

a nd 3 6 . 7 p e r

cent ,

r e s p e c t i v e l y . I n comparison with t h e corresponding per iod o f 1 9 2 0

t h e

October s tat i s t ics showed increases

i n

D i s t r i c t s

No. 2 (New

York^

No. 3

( Ph i l ade l ph i a ) ,

No. 4

(Cleveland)

No. 5

(Richmond),

No. 7

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- 2 7 - X-3256

(Chicago), N o . 8 ( S t . Louis ) , No . 9 (Minneapol is ) , N o . 1 0 (Kansas City),

N o . 1 1 ( Da l l a s ) and No . 12 (San Fra nc isc o). These in cr ea se s vary from

2 7 . I

p e r cent i n D i s t r i c t N o,

9

(Minneapolis) t o 230.5 p e r cent i n

D i s t r i c t No. 2 (New Yor k) . D i s t r i c t s No . 1 (Boston) and No . 6 (At lanta)

show decreases from October last year

of

37-*+

p e r

cent

a n d 2 5 - 5 p e r

cent,

r e s p e c t i v e l y .

While t n e t o t a l va l ua t i on of permits issued thus increased from

$151,97^*000 t o $1/2 ,204,000, t h e value of c o n t r a c t s l e t i n seven

Federal Reserve D is t r ic ts ; prepared by the F . W. Dodge Company, decreased

from $227,473,000 i n September t o $203, 95*+» 0 0 0 i n October. Inc rea ses

were shown i n D i s t r i c t s N o s . 1 a n d 3 , whi le t h e f i g u r e s wer e p r ac t i ca l l y

unchanged i n D i s t r i c t s N os. 5 and 9# and decreased cons iderably i n

D i s t r i c t s Nos. 2 (New York), 4 (Cleveland) , and 7 (Chicago).

D i s t r i c t No . 3 (Phi l ade lphia) r epor t s tha t bui ld ing opera t ions

a r e n o t s o ex t ens i ve a s t h e number of permits granted would indicate,

and t h a t t h e volume of c o n t r a c t s l e t h a s n o t increased correspondingly.

The

reduct ion

i n

wages

and

c o s t s

of

some ma te ri al s

h a s

r e s u l t e d

i n i n -

creased bui lding of r e s i dences i n D i s t r i c t No, 4 (Cleveland) . A l l

s t a t e s

of

D i s t r i c t

N o. 7

(Chicago)

a n d

most

o f t h e

c i t i e s p a r t i c i p a t e d

i n t h e i nc r eas e o f t h e number of permits granted i n t h a t D i s t r i c t , and

a l l o f t h e

states except Michigan showed

a n

i n c r e a s e

i n

es t imated cos t .

I n D i s t r i c t N o . 3 ( S t . Louis) there h a s been considerable growth i n t h e

cons t r uc t i on of dwel l ings . T he r u r a l d i s t r i c t s a nd smaller towns have

taken a much more important part i n t h i s development. Fu rth er minor

r educ t i ons a r e repor ted i n c o s t s of clay pr od uc ts , cement an d metal goods,

whi le lumber pr ic es have advanced. Const r uct ion a c t i v i t i e s i n Di s t r i c t

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- 2 8 -

X-3256

N o . 1 2 ( S a n

Francisco) surpassed

a l l

records, both

i n t h e

number

and

value

of

per mi ts granted du ri ng October. This

was- due

c h i e f l y

t o t h e

dec l in ing p r i ce s of many building materials a n d t h e reduced labor

costs .

EMPLOYMENT

T he

United States Employment Service reports

a n

inc rease

o f 1 . 6 p e r

cent

i n

numbers employed

i n 1 4

se lec ted indus t r ies

o f t h e

United States

i n

October. Such lo ca l re po rt s

a s a r e

ava i lab le

ind ic a te tha t increases

i n

numbers employed

a r e

s l i g h t l y

i n

excess

of

decreases . Genera l iza t ions

a r e

however, difficult because

o f t h e

marked variations

i n

employment co nd it io ns w i t hi n

t h e

same community

a s

wel l

a s

between different regions, which grow

o u t o f t h e

unequal

degrees

of

a c t i v i t y p r e v a i l i n g

i n t h e

seve ra l i ndus t r i e s .

F o r

example,

D i s t r i c t No . 1 (Boston) reports that unemployment i s se r ious i n t h e

shoe industry

i n

Lynn

and

Haverh i l l

an d

a l s o

i n t h e

cen t e r s

o f t h e

jewelry and of the metal i nd us t ri es . Report s from metal goods cen te rs

a r e

said

t o

show

a

decrease

of

near ly

$ 0 p e r

cent

i n

numbers employed

a s

compared with

a

year

a g o . O n t h e

other hand,

t h e

s i t u a t i o n

i n t h e

cot ton

a n d

woolen t e x t i l e i ndu s t r i e s

i s

good

and

probably there

h a s

been a moderate increase i n t h e number of employees i n most New England

i n d u s t r i e s . T ne New York State Department of Labor reports a gain of

2 . 5 p e r

cent

i n

numbers employed

i n

f a c t o r i e s

i n

October. Moderate

gains

i n

employment

i n

te x t i l e mil ls were counterbalanced

by

losses

i n t h e

manufacture

of

clothing,

b u t

r a i l r o a d

c a r

bu i ld ing

a nd

repa i r

shops

a n d

rai l r oa d equipment fac to r i es took

on a

larger number

of

workers.

I n

D i s t r i c t

N o . 3

(Phi lade lph ia )

t h e

Pennsylvania State Department

of

Labor reported s l ight increases i n t h e numbers employed i n t h e s i x

c i t i e s of Altoona, Harrisburg, Johnstown, Philadelphia, Scranton, and

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if

-29- x -3256

Williamsport.

Reports from other parts

of the

District also indicated improve-

> merit in employment conditions. In District Bo. 5 (Richmond) a slignt

increase

in

numbers unemployed

was

noted

in the

cities

but in the

rural sections

of tne

Carolines,

the

demand

for

labor strengthened

with

tne

resumption

of a

number

of

important lumber plants

and

other

establishments*

In

District

No, 7

(Chicago)

2J1

firms employing

150,607 persons at the end of October reported an increase of 2*5

per cent in numbers of employees as compared with the preceding month.

The

most conspicuous increases took place

in

iron

and

steel, railway

repair shops and in the factories producing boxes and containers.

The chief decreases were in construction work and in automobile and

automobile accessory plants. While

tne

United States employment

ser-

vice figures revealed some improvement

for the

firms employing over

500 men in Minneapolis and St. Paul, it is stated in the report from

District No. 9 (Minneapolis) that clerical and domestic workers and

those engaged

in

other lines

of

employment

are

idle

in

increasing

numbers. Outside

of tne

cities

and

larger, towns, unemployment

is

also

growing following

tne

completion

of

harvesting.

In

Montana, coal mining

and

lumbering operations

are

more active

but in

copper mining

and

allied industries depression exists*

In

District

No. 12 (San

Francisco)

the

completion

of

harvesting

and

cessation

of

work

on

highways

and

public improvements in October has resulted in increasing unemployment

among unskilled workers in certain sections. On the other hand, there

have been increases

in

numbers employed

in the

manufacturing

and

building

trades.

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-30- X-3256

WHOLESALE TR/DE. Seasonal factors are in large part respon-

sible

net

only

for the

quite general reduction

in the

sales

of

wholesale dry goods during October, but also for the equally pro-

nounced increase in the sales of hardware* In tne case of dry

goods it is a striking fact that the value of sales was above that

of October 1920 in seven of the nine reporting Districts, ranging

from

a

minimum increase

of 7*3 P

8 r

cent

in

District

No. 4

(Cleveland)

with five firms reporting to 25.5 per cent in District No. 5

(Richmond) with 18 firms reporting. In District No. 9 (Minneapolis)

and

District

No. 1 2 (San

Francisco) sales were still below

the

levels of a year ago, with decreases of 20.8 per cent with five

firms reporting, and 3*3 P©

r

cent with 11 firms reporting re-

spectively.

As

compared with September, however,

a

seasonal falling

off in demand brought about a drop in sales in seven out of nine

Districts, Decreases ranged from 3*7 per cent in District No* 2

(New

York) with three firms reporting,

to 2 0 .

3

per

cent

in

District

No. 9 (Minneapolis) with five firms reporting. District No* 11

(Dallas) showed a slight increase of 1 per cent in sales for 12

reporting firms.

Hardware sales increased in October as compared with September

in eight of the ten reporting Districts. Advances varied from 1*6

per

cent

in

District

No* 10

(Kansas City) with five firms report-

ing to 21.9 per cent in District No. 11 (Dallas) with ten firms

reporting. District No. 11 (Dallas) states tnat tne demand for small

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- 3 1 -

X

-3256

building hardware

a n d f o r

automobile accessor ies

w a s

p a r t i c u l a r l y

st ro ng . City s a l e s have been heavy, b u t country buying quite limited

i n amount. Di st ri ct Mo, 3 (Phi lade lph ia ) a l so ca l l s a t t en t ion t o

t h e fact that automobile accessor ies and e l e c t r i c and hea t i ng s u p -

plies have been sell ing well ,

b u t

sta tes that bui lders ' hardware

h a s been i n lesser demand. I n D i s t r i c t N o. 7 (Chicago) there was

a

s l i gh t increase

i n

i n q u i r i e s

f o r

bu i lde r s

1

hardware

and in

Di s t r i c t

N o . 8 ( S t . Louis) this w as a l so t h e case.

T he

decreases

i n s a l e s i n D i s t r i c t No. 9 (Minneapolis) and No. 12 (San Francisco)

were negligible, being only

. 4 p e r

cent

i n t h e

former case with

1 1

f i rms repor t ing an d .7 p e r cent i n t h e la t t e r case wi th 2 3 firms

repor t ing .

Wholesale grocery sales remained relatively steady during

October, with slight advances

i n a l l

r epo r t i ng d i s t r i c t s excep t

D i s t r i c t N o . 7 (Chicago), i n which 26 reporting firms showed an

average decrease o f 1 , 1 p e r ce nt. Inc rea ses ranged from . 6 p e r

cent

i n

D i s t r i c t

N o . 6

(.Atlanta) with

2 9

f i rms repor t ing

t o 1 7 - 3

p e r cent i n D i s t r i c t No. 2 (New York) with nine firms reporting.

Making

d u e

allowance

f o r

pr ic e di ff er en ce s, s al es compared fa vor -

ably with those f o r October, 1 $ 2 0 , t h e maximum reduction being

3 1 . 6 p e r

cent

i n

D i s t r i c t

N o . 6

(Atlanta) with

2 9

f i rms repor t ing .

That District states that September business w as s t imula ted by

t h e

in f luence

of a

subs t an t i a l r i s e

i n t h e

p r i c e

of

cot ton,

f o l -

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X-3256

lowed

by a

p r i c e

s a g i n

October which, to ge th er wit h

t w o o r

three

weeks

of

warm wea the r, caused bu sin es s

to

drag .

A

f a i r l y

s u b -

s tant ia l advance

i n

sales occurred

i n t h e t w o

other southern

D i s t r i c t s , D i s t r i c t No . 5 (Richmond) reporting a n inc rea se of

2 . 2 p e r cent with 57 f i rms repor t ing , a n d D i s t r i c t N o. 1 1 (Dallas)

an

increase

of 3>4 p e r

cent with

1 4

f i rms r epo r t i ng . D i s t r i c t

N o .

1 1

(Dalla s) says th at busine ss

h a s

been very uneven, decreases

having occurred

i n

sections where

t h e

cot ton yie ld

h a s

been poor,

while

i n

regions where

o i l

a c t i v i t y

h a s

been renewed, business

i s

exce l len t . Ci ty sa l es i n th i s Di s t r i c t have remained fa i r ly c o n -

s tan t .

I n

D i s t r i c t s

Nos. 2 (New

York),

5

(Richmond),

6

(Atlanta)

and 7

(Chicago) increases

i n

wholesale sa les

of

boots

and

shoes

have taken place, t h e percen tages of inc rea se beginning wit h 1 . 7

p e r

cent

i n

D i s t r i c t

No. 2 (New

York) with ei gh t f ir ms re po rt in g,

and

r i s i n g

t o 1 3 » 3 p e r

cent

i n

D i s t r i c t

N o . 6

(Atlanta) with

1 1

f i rms repor t ing . I n D i s t r i c t N o . 1 2 ( S a n Francisco) , o n t h e other

hand,

a

decrease

of 7 -& p e r

cent

w a s

recorded with

1 7


I n

every Dis t r ic t

f o r

which records

a c e

ava i l ab l e

f o r a

year

a g o ,

sales

were above

t h e

t o t a l s

f o r

October,

1 5 2 0 ,

with

t h e

except ion

of

D i s t r i c t

N o . 1 2 ( S a n

Francisco) ,

i n

which

t h e

sales-averaged

9 . 1 p e r

cent less

with 17 fi rm s re po rt in g. However, th er e was a substant ia l advance of

nearly

3 0 p e r

cent

i n

September sales

i n

D i s t r i c t

N o . 1 2 ( S a n

Francisco)

a s

compared with August,

a

fact which would help

t o

exp la in

t h e

drop

i n October s a l e s . Actual in cr ea se s ranged from 2 . 1 p e r cent i n

D i s t r i c t

No . 7

(Chicago) with nine firms reporting

t o 4 4 . 2 p e r

cent

i n

D i s t r i c t

No . 5

(Richmond) with

I S


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X-3256

RETAIL TRADE: R e t a i l t rade

a s

shown

b y

s a l e s

of 3&5

r e p r e s e n t a t i v e

d e -

partment stores throughout t h e country showed a substant ia l improvement i n n

October a s compared with t h e previous month. T he change i s , however, less

n o t i c e a b l e i n t h e Southern sect ions o f t h e count ry , a n d D i s t r i c t N o . 8 ( S t .

Louis) reports that

" i n t h e

Southern sect ions

t h e

a c t i v i t y

i n

r e t a i l t ra d e

wh

which accompanied t h e r i s e in raw co t ton p r i ce s h a s subsided i n a not iceab le

deg ree . When compared wit h t h e October, 1 9 2 0 f i g u r e s , s a l e s f o r t h e country

a s a whole showed a decrease of

6 . 7

p e r c e n t . I n D i s t r i c t s N o . 1 (Boston)

and 2 (New York), in cr ea se s amounting re sp ec ti ve ly t o 4 - 4 p e r cen t a nd 2 . 8

p e r cent were, however, shown, b u t the se were more than o f f s e t b y decreases

o f 3 - 2 p e r

cen t

i n

D i s t r i c t

N o . 3

( P h i l a d e l p h i a ) ,

1 $ . 2 p e r

cent

i n

D i s t r i c t

N o .

4 (Cleveland) , 5 - 6

p e r

cent

i n

D i s t r i c t

N o . 5

(Richmond),

1 5 * 1 p e r

cent

i n D i s t r i c t N o. 6 ( A t l a n t a ) , 9*9 p e r cent i n D i s t r i c t N o . 7 (Chicago) ,

8 . 7

p e r cent i n D i s t r i c t N o . 8 ( S t . . Louis ) , 1 2 . 8 p e r cent i n D i s t r i c t N o . 9QWinn-

e a p o l i s ) , 7 . 4 p e r cent i n D i s t r i c t N o . 1 0 (Kansas City),

1 6 . 7

p e r cent i n

D i s t r i c t

N o . 1 1

(Dal las )

and

6 . 3

p e r

cen t

i n

D i s t r i c t

N o . 1 2 ( S a n

Franc isco) .

A l l

Di s t r i c t s repor t th at demand cont i nues

to be

conf ined

t o

ac tua l neces s i -

t i e s . Accordingly ready- to-wear c lo th i ng , co t ton fa br ic s and trimmings a r e

i n most active demand, while t h e movement o f heavy k n i t goods h a s been unex-

pectedly s low, d u e t o t h e con tin ued warm wea the r. Although st ock s on hand a r e

lower than

a

year

a g o ,

they show

a

s l i gh t increase over s tocks

a t t h e

c l o s e

of

September. T he amount of outs tanding orders i s , however, sl ightly lower than

a month a g o , while t h e same i s t rue of the r a t e of stock turnover .

PRICES: Prices

i n t h e

United States were s l ight ly lower

i n

October than

i n September. T he index o f t h e Federal Reserve Board, constructed pr imari ly

7/17/2019 frsbog_mim_v15_1249.pdf


x -3 2 5 6

f b r

internat ional compar isons , showed

a

drop

of 2

poi n t s f rom

1 4 3 t o 1 4 1

(with

p r i c e s i n 1 9 1 3 cons idered as ICO) whi le t h e index o f t h e Bureau of Labor S t a -

t i s t ics showed a similar change from 1 5 2 to 1 5 0 . There were app rec iab le d e c rear.

i n t h e p r i c e s of leadi ng ag r i cu l t ur al commodities wi th t h e except ion of sheep,

c a t t l e , d a i r y ' p r o d u c t s , an d wool. Lumber p ri c e s were only ve ry s l i g h t l y lower,

and minera l s and metals higher .

During t h e f i r s t th ree weeks of November, prices of many leading commodi-

t ies cont inued t o dec l in e , a l though t h e nonferr ous me ta ls , cor n, oat s , wo6l,

and some grades of cat t le hides showed smal l increases : I t seems probable,

however, that a n average of prices during this period would show a reduct ion

from t h e October level . I n t h e cereal group, wheat averaged lower than i n O c -

tober

b u t w a s

s l i gh t l y h i ghe r

i n t h e

third week

of

November than

i n t h e

f i r s t ;

corn

an d

oats showed slight gains over

t h e

October aver age^ Cotto n

h a s

reacted

downward from t h e September an d October levels b u t i s s t i l l app r ox i ma t e l y 5 cents

higher than i n August, t h e average of upland middling at New Orleans being 173

cen t s

a

pound

i n t h e

f i rs t three weeks

of

November

a s

compared with

1 2 *

cent s

i n

August. Sheep and hogs also decl ined heavi ly dur ing t h e early weeks of November

h u t s t e w s have been quoted s l ig ht ly hig her than i n October.

Cotton yarns and cloth have followed t h e t rend o f t h e r a w m a t e r i a l a n d were

quoted i n many cases a t ah o u t th e same point a s during September. I n s p i t e of

t h e

r e l a t i v e s t r e n g t h

of raw

wool pr i c e s, yarns have

n o t

advanced during Novem-

b e r .

An average o f t h e p r i c e s of several types o f s teel products works o u t some-

what lower f o r th e third week i n November than f o r October . St ee l b i l l e t s have

also been reduced. T he nonfer rous meta l s , o n t h e ot he r hand, i ncl udi ng copper,

t i n , a n d zinc have been r i s i n g i n p r i c e f o r t h e pa st sev er al months. Bituminous

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- 3 5 -

X

3 2 5 6

coal

i s

practically unchanged, from

the

September

and

October quotations.

Retail price statistics

are not yet

available

f o r

November. During Octo-

b e r ,

however,

the

retail food index

of the

Bureau

of

Labor Statistics showed

practically no change (0.3 per cent decrease) from th e September average.

SHIPPING:

The

ocean freight market displayed distinctly firmer tendencies

in November, th e demand from charterers f o e steamers in the West Indian and

Mediterranean trades being particularly active.

At the

same time,

th e

rates

on

a

number

of

commodities including grain

and

cotton, were reduced during

the

month to bring them into line with lower quotations on other goods which had

previously been announced. American ships have been carrying

i n

recent months

a smaller proportion of our foreign trade - whether this i s measured in terms

of

value

or

weight

-

thai

was the

case

a

year

ago.

According

to the

records

of

th e

United States Shipping Board,

in

September,

1920,

American vessels carried

4l per

cent

of

this country's seaborne exports

and 59 P

e r

cent

of our

seaborne imports,

by

weight.

In

September

of the

present year,

our

ships

car-

ried

tut 33 per

cent

of our

seaborne exports

and 4o per

cent

of our

seaborne

imports, foreign ships carrying the remainder. In these figures cargoes of oil

i n bulk are not included. Much the same story i s told by the value statistics

of the

Department

of

Commerce, according

to

which American ships

are

credited

with carrying

38.6 per

cent

of our

exports

and 31*6 per

cent

of our

imports

in

September, 1921, compared with 41-7 per cent and 42.7 per cent respectively a

year

ago.

FOREIGN TRADE: Small increases

in the

value

of

both exports

and

imports

are

recorded

f o r

October

as

compared with September.

The

increased value

of

exports

i s

more than accounted

for by an

expansion

of

cotton shipments from

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- 3 6 - X-3256

522,000 bales in September to 875>000 bales in October, the value of cotton

exports rising by almost 50*090,000 in

the

latter month, while exports of all

commodities rose only 20,000,000 to a total of ^346,000,000- Total imports in

October were valued at 123,000,000 an increase of 4

over the month

preceding. Both imports

and

exports, however, show very decided declines

in

value

as

compared with

a

year

ago-

This

is due in no

small measure

to the

lowered prices of practically every commodity entering into our foreign trade,

although contractions in the actual quantities of merchandise shipped have also

had

their effect*

-As an indication of the volume of our foreign trade in recent months

compared with the same months a year ago, reference may be made to the statis-

tics now compiled by the United States Shipping Board on the actual weight in

long tons

of our

water-borne commerce» According

to

these figures,

in the

three months ending September,

1920,

total water-bonre imports

to the

United

States amounted to 8,996,383 tons, while in the same three months of the present

year they were 5*484,908 tons* a decline iti weight of 39 per cent* The weight

of water-borne exports declined in the same months from 16,778,124 tons to

13»513»269 tons, a reduction of 20 per cent- If shipments of oil in bulk and

Great Lakes cargoes are omitted from the comparison, the remaining sea-borne

cargoes show

a far

greater contraction

in the

last

few

months than

do the

foregoing totals•

The

figures

for

imports then become 5>081,095 tons

in the

third quarter, 1920, and 2,346,998 tons in the same quarter of 1921, a decline

of 54 per cent- Seaborne exports, excluding oil in bulk, are given as

15,530,787 tons in the third quarter of

x

1920, compared with 8,152,327 tons in

the same period this year, the decline in the weight of these experts being

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x-3256

t h e r e f o r e

4 j p e r

cen t* S imi la r f i gu re s

f o r

prewar months

a r e n o t

a v a i l a b l e .

A

o f t h e weights o f t h e pr inc ipa l commodit ies imported a n d exported

i n 1 9 1 3

seems, however,

t o

j u s t i f y

t h e

conc lus ion tha t expor t s

i n

recent months

have been subs tan t ia l ly g rea te r than i n t h e same months o f 1 9 1 3 , while imports

have been close

t o t h e

prewar level*

I f o i l i s

dis regarded, however ,

t h e

pre sen t l eve l

o f a l l

oth er imports

i s

m a te r i a l l y l e s s t ha n

i n t h e

corresponding

prewar months.

frsbog_mim_v15_1249.pdf

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