Survey of Current Business November 1927
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UNITED STATES DEPARTMENT OF COMMERCE WASHINGTON SURVEY OF CURRENT BUSINESS NOVEMBER, 1927 . 75 COMPILED BY BUREAU OF THE CENSUS BUREAU OF FOREIGN AND DOMESTIC COMMERCE BUREAU OF STANDARDS IMPORTANT NOTICE In addition to figures given from Government sources, there are also incorporated for completeness of service figures from other sources generally, accepted by the trades, the authority and responsibility for which are noted in the "Sources of Data19 on pages 134-137 of the August semiannual issue Subscription price of the SURVEY OF CURRENT BUSINESS is $L5Q a year; single copies (moiithly), 10 cents, semiannual issues, 25 cents. Foreign subscriptions, ?2.25; single copies (monthly issues), including postage, 14 cents; semiannual issues, 36 cents. Subscription price of COMMERCE REPORTS is $4 a year; with the SURVEY, $5.50 !a year> Make remittances only to Superintendent, of Documents, Washington, D, C., by postal money order, express Order, Aor New draft. Currency at sender's risk. Postage stamps or foreign money,not accepted ; OFFICE t tm Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis INTRODUCTION THE SURVEY OF CURRENT BUSINESS is designed to ment from one period to the next. Thus, if a relative present each month a picture of the business situation number at one month is 120 and for a later month it by setting forth the principal facts regarding the vari- is 144 there has been an increase of 20 per cent. ous lines of trade and industry. At semiannual inter- vals detailed tables are published giving, for each item, INDEX NUMBERS monthly figures for the past two years and yearly comparisons, where available, back to 1913; also blank When two or more series of relative numbers are lines sufficient for six months have been left at the combined by a system of weightings, the resulting bottom of each table enabling those who care to do series is denominated an index number. The index so to enter new figures as soon as they appear (see number, by combining many relative numbers, is issue for August, 1927, No. 72). In the intervening designed to show the trend of an entire group of months the more important comparisons only are industries or for the country as a whole, instead of for given in the table entitled " Trend of business move- the single commodity or industry which the relative ments." number covers. Comparisons with the base year or WEEKLY SUPPLEMENT with other periods are made in the same manner as in the case of relative nupahers. Realizing that current statistics are highly perish- RATIO CHARTS "" ^ * ** able and that to be of use they must reach the business : • -,- , .-• , ^ - .*-v. **, man at the earliest possible moment, the department In many instances the charts used in the SURVEY has arranged to distribute supplements every week to OP CURRENT BUSINESS are of the type termed "Ratio subscribers in the United States. The supplements are Charts" (logarithmic scale),, notably the Business usually mailed on Saturdays and give such information Indicator charts on page 2. These charts show the as has been received during the week ending on the percentage increase and allow direct comparisons preceding Tuesday. The information contained in between the slope of one curve and that of any other these bulletins is republished in the monthly SURVEY, curve regardless of its location on the diagram; that which is distributed as quickly as it can be completed is, a 10 per cent increase in an item is given the same and printed. vertical movement whether its curve is near the bot- BASIC DATA tom or near the top of the chart. The difference The figures reported in the accompanying tables are between this and the ordinary arithmetic form of very largely those already in existence. The chief chart can be made clear by an example. If a certain function of the department is to bring together these item, having a relative number of 400 in one month, data which, if available at all, are scattered in hun- increases 10 per cent in the following month, its dreds of different publications. A portion of these relative number will be 440, and on an ordinary data are collected by Government departments, other chart would be plotted 40 equidistant scale pointa figures are compiled by technical journals, and still higher than the preceding month. Another move- others are reported by trade associations. ment with a relative number of, say, 50, also increases 10 per cent, making its relative number 55. On the RELATIVE NUMBERS ordinary (arithmetic) scale this item would rise only 5 equidistant points, whereas th6 previous item rose 40 To facilitate comparison between different impor- ;)ints, yet each showed the same percentage increase, tant items and to chart series expressed in different ¥he ratio charts avoid this difficulty and give to each units, relative numbers (often called "index num- of the two movements exactly the same vertical rise, bers," # term referring more particularly to a special and hence the slopes of the two lines are directly kind of number described below) have been calcu- comparable. The ratio charts compare percentage lated. changes, while the arithmetic charts compare absolute In computing these relative numbers the last pre- changes. war year, 1913, or the first postwar year, 1919, have RECORD BOOK usually been used as a base equal to luO wherever ossible. More lately the average for 1923-1925 has As an aid to readers in comparing present data Eeen frequently taken as 100. with monthly statistics in previous years, the depart- The relative numbers are computed by allowing the ment is compiling a BECORD BOOK OF BUSINESS montblly average for the base year or period to equal STATISTICS, in which data now carried in the SURVEY 100. If the movement for a current toonth is greater OP CURRENT BUSINESS are shown by months as far than the base, the relative number will be greater than back as 1909, if available. Full descriptions of the 100, and vice versa. The difference between 100 and figures and reports of how the data are used in actual the relative number will give at once the per cent practice by business firms are contained in the KECORD increase or decrease compared with the base period. BOOK. The first section, covering textiles, has already Thus a relative number of 115 means an increase of 15 been issued and may be obtained for 10 cents per per cent over the base period, while a relative number copy from the Superintendent of Documents, Govern- of 80 means a decrease of 20 per cent from the base. ment Printing Office, Washington, D, C. (Do not ,; Relative numbers m&j also be used to calculate the send stamps.) Notices of other sections will ;be approximate percentage increase or decrease in a move- given in the SURVEY as they are issued. This issue presents practically complete data for the month of September and also items covering the early weeks of October received up to October 28. (See charts and table, pp. 4 and 5.) As rnost data covering a particular month's business are not available until from 15 to 30 days after the close of the month, a complete picture of that month's operations can not be presented at an early date, but the weekly supplements give every week the latest data available* Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis UNITED STATES DEPARTMENT OF COMMERCE WASHINGTON SURVEY OF CURRENT BUSINESS COMPILED BY BUREAU OF THE CENSUS BUREAU OF FOREIGN AND DOMESTIC COMMERCE : : BUREAU OF STANDARDS No. 75 NOVEMBER 1927 CONTENTS SUMMAKIES NEW DETAILED TABLES Continued Preliminary summary for October 1 Raw silk, cylinder oil, binders board, water softeners, Course of business in September 9 carded sales yarn and porcelain plumbing fixtures.--- 27 Business indicators: Debits to individual accounts 28 Text Table Monthly (table and chart) 2,3 INDEX BY SUBJECTS page page Weekly (table and chart) 4, 5 Textiles 12 31 Wholesale prices (table and charts) 6, 7, 11 Metals and metal products- 13 33 Indexes of business: Fuels 14 37 Automobiles and rubber Summary (table, text, and charts) 9, 10, 11 14 35,38 Hides and leather 14 38 Detailed indexes (production, prices, sales, etc.) 18 Paper and printing 14 39 Automobiles, building, mining, manufacturing, elec- Building construction and housing 15 40 tric power, and transportation (charts) 8 Lumber products 15 41 Prospective carloadings, fourth quarter of 1927 21 Stone, clay, and glass products 15 42 Chemicals and oils 15 43 NEW DETAILED TABLES Foodstuffs 16 45 Tobacco 16 48 Long-term indexes of stock-market values 23 Transportation and public utilities 17 48 Revised index of wholesale prices 24 Employment and wages 11 50 National advertising in newspapers, rental advertise- Distribution movement (trade, advertising, etc.). 17 51 ments in Portland, Oreg., and printing activity 25 Banking and finance 17 52 Electric power output, United States and Canada 26 Foreign exchange and trade, gold and silver 17 54 PRELIMINARY SUMMARY FOR OCTOBER Business in October, as seen from figures covering counts of Federal reserve member banks again ex- check payments, for the first three weeks was larger panded, being substantially higher also than a year than during the corresponding period of 1926. Distri- ago. The Federal reserve ratio was lower than in the bution of goods through primary channels, however, preceding month but higher than in the corresponding was running smaller than last year as indicated by month of last year. Prices of stocks listed on the figures on carloadings. The value of new building New York Stock Exchange showed little change from contracts awarded during the early.weeks of October the average of the preceding month, despite a rather showed a falling-off from the corresponding period of drastic decline during the third week of October.