Business Review: January 1, 1927
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THE BUSINESS REVIEW THIRD FEDERAL RESERVE DISTRICT PHILADELPHIA JANUARY i, 192.7 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA BUSINESS CONDITIONS IN THE UNITED STATES Activity in manufacturing industries maintained during November at approxi of merchandise carried by wholesale decreased in November and December, mately the same rate as in October. The firms declined further in November and while production of important minerals value of building contracts awarded were smaller at the end of the month continued at a high level. Wholesale showed less than the usual seasonal de than a year ago. Inventories of depart prices declined to the lowest level in cline in November and was slightly ment stores, however, increased slightly more than two years. Firmer money larger than in November, 1925. Awards more than is usual in November. Freight conditions in December reflected the usual for the first half of December likewise car loadings declined considerably in seasonal requirements in connection with exceeded those reported in the corre November and December from the record holiday and end-of-year activity. sponding period of last year. high levels of October, although the Production. Factory employment Agriculture. The Department of movement of coal continued heavy. and payrolls declined in November, re Agriculture estimates the value of 55 Prices. The neral level of whole flecting decreased activity in many im principal crops raised in 1926, on the sale prices declined in November and portant industries, but owing to the large basis of December 1 farm prices at prices of many important basic com output of minerals, the Federal Board’s $7,802,000,000 compared with $8,950,- modities decreased further in the first index of production in basic industries 000,000 in 1925. O f the decrease in the half of December. The Bureau of Labor advanced somewhat during the month. value of crops the decline in the value Statistics index of wholesale commodity Production of bituminous coal and pe of the cotton crops accounts for $580,- prices for November was 148, the lowest troleum in recent weeks has exceeded 000,000 and that of the corn crop for level since July, 1924. Bituminous coal all previous records, and output of cop about $260,000,000, while the total value prices increased sharply during October per and zinc during the month of No of the wheat crop increased by nearly and the early part of November, but in vember was in unusually large volume. $40,000,000. recent weeks have declined by about two- Pig iron production also increased Trade. In November, distribution of thirds of the previous rise. Petroleum slightly in November, but steel mill merchandise at wholesale and retail prices have been reduced since early in operations in that month and in Decem showed the usual decline from the ac November, and there have also been de ber were considerably reduced. Auto tivity earlier in the autumn. Compared clines in pig iron, copper, zinc, lead and mobile production, which is not included with a year ago, however, wholesale silver. The fall in prices of agricultural in the index of production in basic in trade was in about the same volume and commodities, which has lasted with few dustries, declined sharply in November retail trade larger. Sales of department interruptions for over a year, continued for the second consecutive month and stores were about 7 per cent larger than iti November. Grains, however, have was smaller than in any month since last year and those of leading mail order risen somewhat since the latter part of August, 1925. Textile mill activity was houses were six per cent larger. Stocks that month. The clothing materials and FACTORY EMPLOYMENT WHOLESALE PRICES PER CENT PER CENT 200 200 100 100 50 50 0 0 1922 1923 1924 1925 1926 1922 1923 1924 1925 1926 Federal Reserve Board’s indexes of factory em Index of United States Bureau of Labor Sta Index of value of building contracts awarded ployment and payrolls (1919=100). Latest tistics (1913=100, base adopted by Bureau). as reported by the F. W. Dodge Corporation figures—November: employment, 95.2; pay Latest figure—November, 148.1. (1919=100). Latest figure—November, 188. rolls, 108.8. Page One Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 1 RESERVE BANK CREDIT Latest figure BILLIONS OF DOLLARS BILLIONS OF DOLLARS compared with BUSINESS INDICATORS Philadelphia Federal Reserve District November, 1926 Previous Year month ago Retail trade—estimated net sales (143 stores)................... 829,586,000 + 3.5% + 3.0% Department stores (65)..................................................... $23,817,000 + 3.9 * + 2.2 “ Apparel stores (35)............................................................ $3,961,000 -1 0 .9 “ + 4.4 “ Shoe stores (25).................................................................. $652,000 -1 0 .4 “ + 7.6 “ Credit stores (18)............................................................... $1,156,000 + 7.5 “ + 13.4 “ Wholesale trade—net sales (137 firms)............................... $10,553,889 - 3.2 “ + 4 .7 “ Boots and shoes (9 firms).................................................. $345,697 -20.5 “ + 21.5 “ Drugs (14 firms)................................................................. $1,675,098 + 1.3 “ + 8.5 “ Dry goods (15 firms).......................................................... $1,065,671 - 3.5 “ + 5.5 “ Electrical supplies (7 firms).............................................. $742,809 + 3.5 “ + 0.6 “ Groceries (46 firms)........................................................... $3,586,454 - 0.9 “ + 8.6 “ Monthly averages of daily figures for 12 Fed Hardware (26 firms)............................................................I $1,973,027 - 9.2 “ + 3.1 “ eral Reserve Banks. Latest figures are aver Jewelry (10 firms).............................................................. $563,569 + 2.0 “ + 4.0 “ ages of first 21 days in December. Paper (10 firms)................................................................. $601,564 - 8.0 “ + 3.5 “ house furnishings groups have declined Production: Shoes * (88 factories)..........................................................|prs. 1,064,078 -1 1 .7 “ steadily in price during recent months Pig iron.................................................................................I tons 327,856 - 0.6 “ + 10.4 “ to the lowest levels of the post war Hosiery * (109 mills)......................................................... doz. prs. 1,094,259 - 6.5 “ Iron castings (36 foundries).............................................. tons 6,035 - 7.5 “ + 4.6 “ period. Steel castings (11 foundries)............................................. tons 5,267 -24.4 “ - 4.7 “ Bank credit. Loans and investments Cement.................................................................................|bbls. 3,617,000 - 9.3 “ + 4.6 “ Anthracite........................................................................... tons 7,446,000 -1 4 .2 “ Strike of member banks in leading cities in Bituminous coal— Pennsylvania........................................j tons 15,373,000 + 7.8 “ + 25.4 “ creased by over $100,000,000 during the Wool consumption * (81 mills)......................................... lbs. 8,129,804 - 5.7 “ Active cotton spindle hours (Penna. and N. J .).............. 92,369,518 + 1 .7 “ - 18.7 “ four weeks ending December 15, reflect Electric power— 11 systems.............................................. KWH 405,020,000 + 2.6 “ + 24.9 “ ing in part the growth in the demand Distribution: for credit and currency that usually oc Freight car loadings (Allegheny district—-weekly average) 220,164 - 8.0 “ + 9.2 “ Tonnage of vessels (Port of Philadelphia)....................... tons 4,131,209 + 2.8 “ + 40.4 “ curs in December. The increase was in Exports of wheat (from Port of Philadelphia)................. bus. 753,160 -2 8 .6 “ - 72.0 “ loans on securities, while commercial Exports of flour (from Port of Philadelphia)................... lbs. 5,943,140 - 9.5 “ - 2.4 “ loans declined somewhat from their sea Imports of crude oil (into Port of Philadelphia).............. gals. 7,169,400 + 2.2 “ - 4 3 .8 “ sonal high point in November. Financial: Loans, discounts and investments of member banks The volume of Reserve Bank credit (weekly average)............................................................ $1,161,800,000 - 0.6 “ + 5.3 “ showed the usual seasonal increase after Bills discounted held by F. R. B. of Phila. (daily average) $43,826,000 -1 2 .2 “ - 17.9 “ Acceptances executed (9 banks for month ended De the middle of November but was lower cember 10)...................................................................... $4,221,000 + 7.2 “ - 1.7 “ than in the corresponding period of 1925, Commercial paper sales (6 dealers)................................. $9,621,000 +88.7 “ + 5.3 “ partly because there was a smaller in Savings deposits (99 banks).............................................. $602,388,000 -0.02 “ + 5.3 “ crease this year in the amount of money General: Debits (18 cities)................................................................ $2,352,563,000 - 9.4 “ + 4.8“ in circulation. Commercial failures—number.......................................... 72 +28.6 “ + 46.9 “ Money market conditions became Commercial failures—liabilities........................................ $2,620,000 + 3.1 “ + 159.1 “ Building permits (16 cities)..............................................