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F E D E R A L R E S E R V E B O A R D
STATEMENT
FOR THE
PRESS
' F,«>
For
r e l e a s e
i n
Monday morning papers,
January
3 , 1$21 .
The fo l lowing i s a review of general bus iness and
f inancial condi t ions throughout
t h e
several Federal
Reserve Dis t r i c t s dur ing
t h e
month
of
December,
a s
contained
i n t h e
forthcoming issue
of the
Federal
Reserve Bul let in.
Fur ther progress
i n
bus iness readjus tment
h a s
been
t h e
c h a r a c t e r i s t i c
f e a t u r e
of
commercial
and
industr ial development during
t h e
month
of
December, Such re ad ju st me nt
h a s
been accompanied
by a
f u r t h e r
dec l ine
of
pr ices , which
h a s
brought
t h e
level shown
b y t h e
Board's
index number
t o 1 9 0 p e r
cent
of tns
l eve l
of 1913 (
a
dec l i ne
f o r t h e
month
of
about
8-g p e r
cen t ) .
An
i nc r eas e
of
unemployment growing
out
of r educ t i ons of bus ines s a c t i v i t y , which have c u t opera t ions t o f igures
varying from 4 0 p e r cent t o 7 5 p e r cent of normal, h a s a f f ec t ed l abor
un fa vo ra bl y. Wage cu ts runn ing
a s
high
a s
20
p e r
cent
t o 2 5 p e r
cent
i n
some' l i n e s have accompanied
t h e
shrinkage
of
demand,
an d
there
h a s
been
a
f a l l i n g
off of
expor t t rade.
On th e
o th er hand, ba nk ing power
h a s
been we ll mai nt ai ne d, normal cr e d it accommodation
h a s
been extended
t o
l eg i t i ma t e bus i nes s ,
t h e
r e s e r ve r a t i o
h a s
grown stronger,
a n d
interreserve bank borrowing h a s been i n p a r t l i q u i d a t e d . A t t h e member
banks l iq uid a t io n-o f loans
i s
beginning
a n d
be t t e r cond i t i ons
a r e
f o r e -
shadowed. '
:
From D i s t r i c t
No. 1
(Boston)
i t i s
repor ted tha t
t h e
l i q u i d a t i o n
i n
commodit ies , while drast ic,
h a s
been
on, th e
whole or de rly , re gu la r
demands f o r credit have been granted, a n d t h e banking s i tua t ion i s
s t ronger .
From Distr ict
No. 2 (New
York)
i t i s
r ep or te d tha t money r a t e s have
grown ea si er , wholesal e pr ic e de cl in es have been
t h e
sharpes t
of the
present movement, manufacturing
i s i n
reduced volume,
a n d
export t rade
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i s
dec l in in g . Re ta i l t rade
h a s
bean wel l mai nta ine d. There
h a s
been
a n
adequate supply
of
bank ing accommodation.
Prom Distr ic t No. 3 (Ph i l ade lph i a ) i t i s repor ted tha t there h a s
been b u t . l i t t le change of conditions from t h e pr ec ed in g mouth, manufac-
t u r i n g
and
wholesal ing being quiet , whi le r e t a i l t r ad e
. i s
larger than
las t year .
From Distr ic t No. 4 (Cleveland) i t i s reported that money conditions
a r e encouraging, pr ices a r e s t i l l r eced ing , manufac tur ing cont inues t o
b e
r e s t r i c t e d
i n
volume, ra i l road eff ic iency
i s
large, whi le cur ta i lment
of output an d lowering of wages a r e i n evidence throughout t h e i ron and
s tee l t rade .
From Distr ic t No, 5 (Richmond) i t i s repor ted tha t bus iness i n
wholesale an d manufac tur ing l ines i s i nac t i ve , bu i l d ing ope ra t i ons a t a
minimum,
and
unemployment prevalent,
b u t
s igns
of
improvement
a r e
noted.
From District
No. 6
(At l an t a )
i t i s
reported that most
of t h e
cot ton
crop h a s been harvested b u t i s being la rg el y held, whi le farmers gen era lly
f e e l t h e e f f e c t of low pr ic es . Other markets a r e qu ie t . Coal p r o -
duct ion h a s incr ease d- Lower pr i ce s of p ig iron have n o t produced any
great amount of bus iness .
From Distr ic t No. 7 (Chicago) i t i s r e p o r t e d t h a t l i q u i d a t i o n of
bank loans i s pro gre ssi ng favor ably. Banners a r e su f f e r ing f rom low
p r i c e s ,
b u t
e f f o r t
i s
being made
t o
supply
t h e
c red i t they re qu i r e .
Re t a i l t r ade h a s he ld up well , a l l th ings cons idered .
From Distr ic t No. 6 ( S t . Louis) apathy i n buying i s rep or t ed . Pr ice
cuts have gone further
an d
t h e r e
i s
inc rea se
of
unemployment. Tra nsp or-
t a t i o n h a s largely improved and banking condi t ions a r e even better than
h e r e t o f o r e .
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From Distr ic t No. 9 (Minneapolis) i t i s repor ted tha t g ra in rece ip ts
M'
ve
somawhat fa l len o f f , while stocks of gra in nave in cr ea se d. Flour
produc t ion h a s improved. Pr ic es i n gen er al have de cl in ed . Bank
c o n d i t i o n s a . re s t ro nger . Re ta i l t rad e h a s neld i t s ow n.
From Distr ic t
No. 10
(Kansas City)
i t i s
reported that there
i s
slowing down
of
b u s in e s s
i n
near ly
a l l
l i n e s ,
b u t
t h e r e
i s a
general
bel ief th at condit i ons wi l l soon be r ig h te d and a founda t ion i s being
.. : c - . d l y
l a i d f o r i be t t er bus ines s . Only s l ig ht evidences of l i q u i d a t i o n
a r e t o b e
noted.
From Distr ic t
No. 11
(Dal las )
i t i s
repor ted tha t the re wi l l
be a
la rg e carry over both
of
debts
and
commodities into
1 9 ? 1 -
Movement
of goods shows decrease pretty generally, b u t r e t a i l - t r a d e h a s held up
well .
From Distr ic t No. 12 (San Franc isco) i t i s repor ted th a t r e t a i l t rade
i s good, who les ali ng l e s s ac ti ve , crops moving st ea di ly t o market,
l i v e s t o c k
an d
a l l i e d i n t e r e s t s
i n
favorab le pos i t ion ,
and
f in a n c i a l
p rospec ts favorab le .
A g r i c u l t u r e . - The weathsr con dit ion s which have pr ev ai le d gene rall y
throughout
t h e
agr icu l tu ra l sec t ions have been favorab le
f o r
farm opera-
t i o n s .
The
husking
of
corn
h a s
been carried forward rapidly
and i s
p r a c t i c a l l y f i n i s h e d i n m o s t d i s t r i c t s . I n D i s t r i c t No. 4 (Cleveland),
however, husking h a s been slow a n d t h e warm, moist Whether h a s i n j u r e d t h e
q u a l i t y of corn t o some ex te nt . The weatherco ndit ions have a l so a ided
m a t e r i a l l y i n fa l l p lowing a n d t h e p re p a ra t io n of the ground f o r ne t t
se as on 's crop . Winter wheat h a s made a good start and i s in a good
condi t ion
to go
through
t h e
w i n t e r .
In
some sections there
h a s
been some
damage from t h e Hessian f l y , b u t t h e colder weather will tend t o el iminate
th i s e v i l .
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An i n d i c a t i o n o f t h e ex ten t t o which cotton picking h a s progressed
i s a f f o r d e d b y t h e number of bales ginnad pr ior t o December 1 , which was
10,144,
921 i n 19 20 , a s
against 8,844,3t>S
i n
ISIS*
I n
some sections
rains have delayed picking t o some ex te nt , wh il e i n other sect ions
farmers a r e r epo r t ed t o b e abandoning t h e co tt on because of the dec l ine
i n
p r i c e
a n d t h e
r e l a t i v e s c a r c i t y
of
p ick ers , toge t her wi th
t h e
high
wages demanded. I n southern Oklahoma cotton picking continues, although
r e p o r t s a r e t o t h e e f f e c t t h a t a cons iderab le por t ion of the .c rop wi l l
be p a s t u r e d a f t e r t h e f i r s t p ick ing . There h a s been considerable
d e t e r i o r a t i o n
i n t h e
q u a l i t y
of the
l i n t ,
due to t h e we t
weather ,
and th e
bulk of t he ginning i s repor ted to be grading below middling.
Movement of co t ton t o market h a s been re la t ive ly s low^ rece ip t s
showing a sharp and unseasonable fa l l ing o f f . I n some sections i t i s
re po rte d t ha t se l l e r s have complained th at they were unable
t u
se l l t he i r
cot ton a t any pr ice un less i t was of sup er ior gra de. However, co tt on
farmers i n many sections show a tendency t o hold a s much a s p o s s i b l e of
their crop o f f t h e market, i n t h e hope of an advance i n p r i c e . Many
new
cotton storage warehouses have been constructed.
The low
p r i ce s
r e a l i z e d f o r cot ton have resul ted i n cons iderab le a t ten t ion be ing g iven t o
t h e reduc t ion of next ye ar ' s acreag e, some pl an te rs proposin g a decrease
of o n e - t h i r d , and v '
6
? crop ro ta t ion h a s been urged.
Live Stock
-
Live stock
on
farms
and
ranges
i n
D i s t r i c t
No. 1 0
(Kansas City) i s genera l l y hea l thy and in good co nd it io n . The tendency
i s f a s t d i s appea r ing t o abandon t h e bus iness an d s a c r i f i c e t h e stock.
As feed i s cheap a n d p l e n t i f u l , t h er e i s more of an i n c e n t i v e t o p u t f l e sh
on the
an ima l s
i n
s p i t e
of the low
pr ic es pr ev a i l i ng . Southwes te rn ranges
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X-3C08
and
l i ve s tock , wi th
fe w
excep t i ons ,
a r e
e n t e r i n g
t h e
w i n t e r
i n t h e
best
condit ion they have enjoyed f o r many ye ar s . Re ce ipt s of c a t t l e a t 1 5
wes tern markets inc re as ed from 1,6 28, 564 head duri ng October
t o
1,751,261
head during November, t h e respective index numbers being 1 6 2 a n d 1 7 7 , a s
compared with 2,038,786 head, corresponding
t o a n
index number
of 202
during November,
1 9 1 9 .
Rece i p t s
of
hogs increased greatly between
October
a n d
November, being 2,624,185 head during November,
a s
compared
with 1,836,748 head during October a n d 2,659,251 head during October, 1919 ;
t h e
respective index numbers being 119,84
and 12 1 , On th e
other hand,
r e c e i p t s
of
sheep were l e s s , bei ng 1, 54 2, 47 ? head du ri ng November, c o rr e s-
ponding
t o
index
1 1 3 , a s
compared with 1,805,330 head during October,corres-
ponding t o a n index number of 1 ]§ , and 1,742,668 head dvring November,
1919>
corresponding
t o a n
index number
o f 1 2 8 .
November c a t t l e r e c e i p t s
a t
Forth Worth, however, were
t h e
smal les t
on
record
f o r
that month since
1 9 1 2 , a n d were gen eral ly of an undes i rable qu al i ty . Wi th dec l ine s i n
t h e
p r i c e s
of
hogs
i n
December receipts
f o r t h e
f i r s t h a l f
of t h e
month
i n t h e
pr inc ipa l market s
i n
D i s t r i c t
No . 10
(Kansas City) again fel l
below those
of a
year
a g o . T he S t .
Paul cat t le market
w as
depressed
t o
t h e
l owes t l eve l s
of
t h i s yea r ,
i n
p a r t
a s a
r e s u l t
of
l a r ge r ece i p t s
( e s p e c i a l l y of common a n d poor grade, which a r e always hard t o market a t
t h i s t ime
of ths
ye ar ), slac ken ed demand
f o r
s t o c k e r s
a n d
f eede r s ,
inadequate stock cars
f o r
shipping ,
and low
p r i c e s
a t
ea s t er n market s .
Heavy marketings a n d d e c l i n e s i n g r a i n s a n d p r ov i s i o ns con t r i bu t ed t o
a
d e c l i n e
i n h o g
p r i c e s , c l o s i n g p r i c e s
f o r t h e
highes t grades
on
November
3 0 ,
be i ng
9 t o 9.65, a s
compared with
$ 1 2 t o
$12.25
o n
October
3 0 .
[Other Crops
- The
t obacco s i t ua t i on
h a s
shown
b u t
very l i t t l e change
dur ing t h e past month. The opening of the western dark markets i n
Kentucky
w a s
d i s a p p o i n t i n g
t o t h e
farme rs because
o f t h e
p r e v a i l i n g
low
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pr i c e s , t oge t he r w i th t h e decreased demand. I n D i s t r i c t No* 5
(Richomnd)
t h s
faraers have shewn
a
tendency
t o
s e l l t h e i r o f f - c o l o r
andi poorer grades , a pparen t ly holding th ei r best tobacco un t i l a f t e r
t h e ho l idays i n t h e hope of be tt er pr ic es . Export demand f o r leaf
tobacco i s very small , while manufacturers
1
s tocks a r e repor ted la rge
ax>4 their purchases have been kept
a t a
minimum.
The
s lackening
of
demand f o r manufactured goods continues, with t h e r e s u l t th a t some
f a c t o r i e s a r e closed while others a r e running only on pa r t t ime . The
decreased demand
i s
most not iceable
i n t h e
case
of
c i g a r s ,
a n d t h e
r e t a i l e r s * o r d e r s a r e f a l l i n g o f f i n consequence.
F r u i t s - Shipments of Cal i fo rn i a f r u i t have been very sa t i s f ac to ry ,
a n d t r ans po r t a t i on f a c i l i t i e s have been exce l l en t t hroughou t t h e shipping
season. While t h e boxed apple crop i s placed a t 27,6 33,0 00 boxes, a s
compared with 35,^-5*000 boxes i n l$ iy , approximately two- th i rds of t he
crop i s o u t o f t h e p r o d u c i n g d i s t r i c t s a n d storage holding ovar much
smaller than i n 1 9 1 9 * Shipments of oranges a r e slightly below shipment3
during
t h e
same pe ri od l a s t yea r,
b u t
shipments
of
lemons have been
t h e
largest ever recorded i n C a l i f o r n i a .
Brain a n d Flour - The movement of g ra in t o market h a s varied somewhat
a t d i f f e r e n t c e n t e r s . I n D i s t r i c t No. 10 (Kansas City), November
whea t r ece ip t s
a t t h e
principal markets were about
1 3 p e r
cent larger than
t h s
r e c e i p t s
f o r t h e
month
of
October,
b u t
were
1 1 , 6 p e r
cent below
t h e
r e c e i p t s of November, 1919 - On th e other hand, i n D i s t r i c t No. 9
(Minneapol i s ) rece ip t s a t Minneapolis a n d Duluth were 1 5 . 5 p e r cent below
October rece ip t s ,
b u t
were
4 7 . 1 p a r
cent above receipts
f o r
November,
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1919- I t i s repor ted tha t about > 0 p a r cent of th i s yea r ' s c rop i s
s t i l l o n t h e farm a s against about 3 5 p e r cent a t t h e same time la s t
yea r . I n D i s t r i c t No, 10 no twi ths t and ing . the f ac t t ha t a bumper crop
of
corn
w as
r a i s e d
i n t h e b i g
corn-producing States
a s
compared with
t h e
snail crop
of
l as t yea r ,
t h e
primary re ce ip ts
of
corn
a t t h e
markets
of
th is Di s t r i c t were about
4 2 p a r
cent bslos
t h e
r e c e i p t s
i n t h e
sane
period of 1919 . I n Minneapolis and Duluth corn receipts were sl ignt ly
above November, 1519# and more than double receipts f o r October, 1 J 2 0 .
Receip ts
of
oa t s , ba r l ey ,
r ye , and
f lax decreased
a s
compared wi th Oc tober,
b u t
in-each case were above receipts
f o r
November,
191 9- The
p r i c e s
of
grains throughout
t h e
various markets have shown
a
decl ine with only
a few
minor exceptions. The c los ing p r i ce of cash wheat No. 1 dark northern
a t Minneapolis on November 30 was $1,$0-7/8 t o $1.5^—7/8, while t h e closing
p r i c e o n October 30 was $2.13? t o $2.17i* I n D i s t r i c t No. 10 (Kansas City)
i t i s repor t ed th a t wheat pr ic es ra l l ie d t h e f i r s t week i n December a f t e r
a continued decl ine i n November, bu t a t t h e end of t h e second week a
weakness w as deve loped which broug ht wheat down alm ost t o t he l ow l e v s l of
t h e last week i n November .
The
f l ou r market cont inues du ll . Mil ler s rep ort con dit ion s int .heir
business t h e most unsat i sfac tory exper ienced i n r ecen t yea r s , s t a t e s t h e
r epor t f rom Di s t r i c t
N o . 8 ( S t .
Lou is ). Hard-wheat pa te nt s were quoted
i n
Kansas City
on
December
1 4 a t
$8-50
t o $ 9 , a s
compared wi t h $9*35
t o
$9-5°
on November l 6 . Aside from t h e absence of demand, particular complaint i s
made
o f t he
i n s t a b i l i t y
of
wheat fu tu re s
a n d t h e
r e s u l t i n g d i s o r g a n i z a t i o n
of the fl o ur market . There h a s been a further slowing down of mi l l ing oper
t i o n s i n t h i s D i s t r i c t . The to ta l output of a selected group of m i l l s i n
November w as 1 ,285 ,155 ba r r e l s , a s compared with 1,970,977 i n November,
I 9 1 9 ,
an d opera t ions dur ing t h e s i x weeks
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*
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X-3008
ending December 11 have been a t 53-3 per cent of capacity, a s
compared
wi„h
87 -8 pe r
cent
fo r t he
same per io d l a s t year. Production
i n
L i s t r i c t
No. 9 (Minneapolis) during the four weeks ending November 27 was 2,469,1*95
bar re l s , an increase c f . 8 r e t cent over th e f igure of 2,279,990 barrels f o r
the four week s ending October 30, but was only 80 pe r cent of output a year
ago, which was 3,012,465 ba rr el s. Present operat ions a re a t 52 per cent
of capacity, a s compared with
69
per cent a year ago . Mill operat ions
i n D i s t r i c t No. 2 (St . Louis) a re only 45-50 p e r cent
0
f capacity. St .
Louis mills have affected a cu t in wages o f a l l operatives of 50 cents a
day .
C
_
ot t
9» tex t i les . - Although a slight increase in the buying of cotton
by New England mills h a s occurred during the past month, according to the
rsno rt from Di st ri ct No. 1 (Bos ton) , purchases have been much below normal,
while mills in the Carolinas a re said to have been out o f the market f o r
some time (D i st ri c t
No.
5, Richmond).
In
view
of the
limited demand
and
th e size of the crop, which, according to f inal estimates of the Department
of Agriculture will amount to 12,987,000 bales, i t i s n o t surprising that
pr ice dec li ne s have been con tinuousl y recorded. From November
20 to
December
20
there
was a
decline
of
slightly more than
10 per
cent
in the
price of snot cotton in New York; while th e fall from the maximum -price
recorded
i n
July amounted
to
63-75
P - r
cent.
For 22
towns
in the
Carolines
th e Bureau of Markets quoted or ices averaging only l 4 . 4l on December 11,
and
D i s t r i c t
No. 5
(Richmond) reports that
the
market
was
limited
even a t th i s low level .
The New England mills a re estimated t o have been operating a t even
lower capacity during the middle of December than they were during the
previous month, when
30 per
cent
to 40 p r
cent
of
operating capacity
r s
^ r es en t ed
t h e
average
f o r
D i s t r i c t
No. 1
(Boston) .
I n
D i s t r i c t
So. 5
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(Richmond) i t i s s ta ted tha t i n Gaston County, N . C. , vrhoro t h e f ine-yarn
indus t ry o f t h e D i s t r i c t id largely aoncontratc t i , . t h e n i l I s have cl.oaod
doxm entirely.
The r epo r t on cotton consumption issued b y t h e Census Bureau i n IIovcnbvr
r e f l e c t s t h e ce s sa t i on of m nu f a c t u r i n ft a c t i v i t y , t h e amount consumed,
332,057 bi l es , f a l l i n g below th at repor ted
f o r
Au.rust,
1914 , by
51,943 bales*
The cotton consumption of t he
N cv,--
England n i l I s f o r t h e month ending November
30 was only 100,402 bales, a s compared with 168,16? ba ) os .reported f o r
August*
On th e
other hand,
t h e
reduct ion
i n
cot ton s tocks
of
these mills
from 610,311 bales i n oboist t o 463,369 bales i n October resulted in t he
increased buying previously referred to and caused a s l i gh t i nc r ea se i n
stocks held
t o b e
r eg i s t e r ed
i n
November, whan 485.651 bales
on
hand were
reported.
D i s t r i c t Mo. 1 (Boston) says that there i s a more dis t inct note of
optomisn
i n t h e
Boston wool trade than
f o r
some time,
i t
b o i n e s t i m a t e d
tha t sa les f o r t h e second week i n December amounted t o 6,000,000 pounds,
about equally divided between domestic
an d
fo re ig n, B r i t i s h Government
holdings, however, offered a t auc t ion t h e second week i n December resuitea
i n sa l e s f only 1 , 5 0 0 ba les out of a t o t a l o f f e r i n g of 7,400 ba le s. While
t h e r e i s a s ye t no evidence of react ion from t h e depression prevai l ing i n
t h e market f o r woolen and worst ed t e x t i l e s , D i s t r i c t No, 3 (Phi lade lph ia )
s t a t e s t ha t two or t hre e largo mi lls rep ort incr eased idmand f or dress
jxoods, more particularly women's wear. On th e oth er hand, some mi ll s in t he
D i s t r i c t
a r e
fur ther reduc ing
t h e
sca l e
of
operat ions
or
consider ing
a com-
plete suspension of operat ions- Yarn mi ll s i n D i s t r i c t No, 3 (Phi lade lph ia )
report less business than during t h e pre ced ing month, even wi th y a m pr ices
50 pe r
cent
t o 60 pe r
cent below
t h e
peak po in ts , Manufacturers
of
hosiery,
underwent- , sweaters , e tc . / ' i t i s sa i d , have su f f ic ie n t yarns t o enable those
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wh o a re opera t ing a t a l l t o maintain thei r cur tai led schedules* The
American V/oolen Co.
1
s auct ion sale of 9,000 pieces of overcoat ing (Dec,
14-16) brought prices of about 25 per cent t o 4 0 p e r cent of those p r e -
v a i l i n g a t t h e open inn: l eve l f o r 1920*
Hosiery, - P r a c t i c a l l y no bus iness i s be ing t r ansac ted i n hos ie ry l ines
i n D i s t r i c t No* 3 ( Ph i l ade l ph i a ) , a s a r e s u l t of the u n c e r t a i n t i e s of prico
fluctuations which have been aggravated by forced sales of s t ocks . As a
r e s u l t , i t i s es t imated that t h e operat ing capaci ty o f t h e m i l l s i s less
than 20 per cent of normal. Returns rece ive d f o r November from 34 repor t ing
f i rms i n t h e hos iery indus t ry, which sel l t o t h e wholesale trade, show a r e -
duct ion i n t h e value o f t h e producttmanufactured during t h e month (sell ing
p r i c e ) of 74 per cent as compared with t h e same month in 1919 and 18 .8 per
cent a s compared with t h e previous month. The value of f inished products
on hand a t t h e endofcf t h e month (sel l ing pr ice) was 9 5 .2 p e r cent i n excess
of
stocks held
a
year
a z o .
There
w a s ,
however,
a
r educ t i on
o f 5 ,9 p e r
cent
a s compared with t h e prev ious month. Un fi ll ed orde rs on hand at the end of
t h e
month (sel l ing pr ice)
had
dropped
8 7 , 5 p e r
cent
o s
compared with November,
1 9 1 9 , an d 2 1 .1 p e r cent a s compared with t h e preceding month. S i x r epo r t i n r
f irms which sell t o t h e retai l t rade show a decrease i n t h e value o f t h e
product manufactured o f 6 4 .3 p e r cent as compared with November, 1919 , and
2 4 . 8 p e r
cent
a s
compared with
t h e
pre viou s month? Un fi ll ed orde rs
on
hand
a t t h e en d o f t h e
month (sell ing price) were
6 , 2 p e r
cent less than during
t h e
previous month, which
hn d
r e g i s t e r e d
a
great decrease
o f 7 1 ,8 p e r
cent
as compared with September.
S imi la r condi t ions preva i l i n t h e underwear industry i n D i s t r i c t Mo. 3
(Ph i l ad el ph ia ) , many mi l l s being close d, whi le others a r e ope r a t i ng a t from
20 per cent t o 4 0 p e r cent of c a p a c i t y . The mild weather h a s a l so in te r fe red
with
t h e
p lac ing
of
addi t iona l o rder s
f o r
heavy-weight goods
and
s tocks
a i -
re dy
manufactured have been sold
a t
s a c r i f i c e , Twenty-one concerns manu-
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fa ct ur in g underwear, located
i n
D i s t r i c t
No. 3 (P
h i l ade l ph i a ) , reco rd
a
decrease
i n t h e
value
o f t h e
product manufactured
o f 6 3 . 9 p e r
cent during
33
November, 1 9 2 0 , a s conpared with November, 1919 , and pe r cent a e compared
with
t h e
prec edin g month. Finis hed produc ts
on
hand
a t t h e e n d o f t h e
month
were
3 2 2 . 1 p e r
cent
i n
excess
of
amounts held
a t t h e e n d o f
November,
1919 ,
and
showed only
a
neel ig ib le decrease
of 1 ,6 pe r
cent
a s
compared with
t h e
previous month
of
Oct obe r. Orders booked duri ng
t h e
month were
2 5 . 7
p e r cent less than during t h e corresponding month last year and 16 .5 pe r
cent less than
i n
October, Un fi l l ed orders
a t t h e e n d o f t h e
month were
9 5 . 8 p e r
centbelcw
t h e
amounts outstanding
a t t h e e n d o f
November,
1919.
Thi r ty- f ive f i rms be longing
t o t h e
Nat ional Associat ion
o f
Fin i sher s
of Cut
Fabr ics , which represent
72 pe r
cent
o f t h e
white goods,
62 pe r
cent
o f t h e dyed goods, and 32 per cent o f t h e pri nt ed goods,, re po rt t h e t o t a l
mumber
of
yards f inished dur ing
t h e
month
of
November,
1 9 2 0 , a s
40,591,156
as
compared wi th 52,833, 213 yard s f in is he d duri ng
t h e
preceding month
of
October.
T he
percentage
of
capaci ty operated dur ing
t h o
month averaged
f o r
25 pe r
cent
' a l l
repor t ing f i rms
a s
aga i ns t
35 pe r
cent during
t h e
preceding
month.
Tho
f i rms located
i n
D i s t r i c t s
1
(Boston)
and 2 (New
York)
had an
operat ing perccntagees l ight ly below
t h e
average ,
t h e
f igures be ing
21 pe r
ccnt i n each case, whereas Distr ict No. 3 (Phi l ade lphia) r epor ted opera t ing
capac i t y of 38 per cent . The avera ge number of days' work ahead a t t h e
end of
November
w a s 4 . 3 a s
conpared with
4 . 4 f o r t h e
preceding month.
Thero
h a s b o . n
very l i t t l e change
i n t h e r a w
si lk market during
t h e
past month,
a s
t h e r e
h a s
been
no
gonera1 increase
of
manufac tur ing ac t iv i ty
t o
c r e a t e
a
buying demand.
I n
Paterson loons
a r e
working
a t 6 . 7 p e r
cent
of
their maximum capacity
i n
terms
of
loom ho ur s
a s
compared with
8 . 6 p e r
cent
l a s t month. Elsewhere i n New Jer sey t h e depress ion i s n o t s o extreme, however.
I ndeed , D i s t r i c t
No. 3
( Ph i l ade l ph i a ) r epor t s
a
renewal
of
i n t e r e s t - o n
t h e
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- 12 -
X-5008
p ^ r t o f buyers f o r d r e s s and wais t houses , wi th t h e r e s u l t t h a t some mi ll s
which were shu t down have resumed op e ra t i on s, t w o o f t h e l a r g e s t m i l l s a t
f u l l time . Improvement, however, i s by no means gen er al , many fi rm s i n
t h e District showing; n o s iecns of in c r e a s e d a c t i v i t y .
Shoes and l e a t h e r , - Lea ther pr ices have suffe red fur ther dec l ines ,
heavy na t i ve s t ee r (packer hid es) se l l i ng
fo r 1 6
cen ts
and 19
c e n t s
per
pound on December 1 5 , a s compared with 53 cen ts i n August, 1919* Calfskins
s e l l i n g
as h i :h as $1 in
August,
1 9 1 9 ,
were quoted
a t 1 5
c e n t s
t h e
middle
o f th e present month. As a matte r of f a c t , q u o t a t i o n s a r e largely nominal
i n t h e
absence
of any
general buying demand.
Reports received from 24 r e p r e s e n t a t i v e b oo t and shoe manufacturers
of New
England a bout
t h e
middle
of
November indicated that conditions were
a t l e a s t n o worse i n tha t indus try than dur ing t h e preceding month, s i x con*
oe rns repor t ing a decreased produc t ion, be ing offse t-by s i x which h a d i n -
creased t he ir outpu t , whi le t h e o the r 12 repor ted cond i t ions t o b e unchanged.
The
m a j o r i t y
of
these concerns reported shipments
t o b e
e i the r equa l
t o o r in
excess
of
those
o f t h e
preceding month*
I ron and s t e e l . - Fur ther decreases i n t h e p r i c e s of i r o n a n d s t e e l
products have occurred
, and in
p r a c t i c a l l y
a l l
items
t h e
wide spr ead which
sepa rate d independent pr ic e lev el s from tho se
o f t h e
l e a d in g i n t e r e s t
h as
a i sappea red .
I t i s
repor ted f rom Di s t r i c t
No* 3
(Ph i lade lph ia ) tha t ,
u
demand
prominent,
i n most l i n e s , more however, i n s to o l p l a t e s and o the r f in i shed
produc ts , i s a lm o s t e n t i r e l y a b s e n t /
1
an d ca nc el l at io ns have become more
p r e v a l e n t .
1
The v p f i l l o d o r d e rs o f t h e United Sta tes Stee l Corpora t ion d e -
creased from 9,636,852 tons r .t t h e c lo s e of October t o 9,021,48 1 tons a t t h e
c lose of November, t h e respective index numbers being 187 and 171* The
m a r k e t s i t u a t i o n
i s
r e f l e c t e d
i n t h e
cont inued decrease
i n
p r o d u c t i v e a c t i v i t y
Pig-iron production during November
w as
2,934,908 tons , corresponding
to an
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- 1 3 - x - 3 0 0 8 0 5
.index number
of 127 , a s
compared with 3#292,
597
ton s durin g October, co rr es -
ponding
t o a n
index number
of 142 .
Ste el - ing ot prod uct io n l ik ewi se decreased,
from 3,0 15, 962 to ns d ur in g October t o 2,638,670 tons during November, t h e
respective index numbers being
1 2 5 a n d I C 9 .
St ru ct ur al s t ee l bookings dur ing
November were U9>200 tons, o r 2 7 p e r cent of capac i t y , a s agains t 45,600
tons ,
or 25% p e r
cent
of
cap aci ty dur ing October. Curtai l ment
of
opera t ions
i n D i s t r i c t No. 3 ( Ph i l ade l ph i a ) h a s progressed more rapidly during t h e
current month than
a n y
t ime previous,
a n d
almost wi thout except ion repor ts
indica te tha t present opera t ions a r e only a t 4 0 p e r cant of capacity, while
fur ther decrease
i s
planned.
A
number
of
independent s teel works
i n
D i s t r i c t
N o . 4 a r e
shut down completely,
a s a r e
many merchant b l a s t fu rn ac es which have
been accumulating stocks
o f p i g
iron, while many independent steel plants
a r e
oper a t i ng
a t n o t
over
5 0 p e r
cent
t o 6 0 p e r
cen t .
A
decided c on tr as t , however,
exis ts between
t h e
s i t u a t i o n
of the
independents
a n d t h e
l e a d i n g i n t e r e s t .
The
l a t t e r en tered l a r&a order s
i n
past months
a t t h e
minimum prices
a n d h a s
bean
enabled
t o
keep
up
ope r a t i ons
on
these order s , var io us su bs i d i ar i e s
now
ope r a t -
i n g a t
about
9 0 p e r
cent
of
c apa cit y. Accompanying rea dju stm ent pro ces s
i n t h e
industry have been wage reductions announced by various independent producers,
Coal . - Product ion of bituminous coal h a s continued upon a high l eve l .
The November figure wa s 51, 012, 000 tons , corresponding t o a n index number of
1 3 8 , a s
compared wi th 5 0,74 4,000 tons d uri ng October,
a n d
18 ,6 88 , OCOtons
d u r -
i n g
November,
1 9 1 9 , t h e
respective index numbers being
137 an d 5 0. The
output
f o r t h e week ending December 4 se t a new high record f o r t h e yea r , b u t w a s
bet t e red dur ing
t h e
fo ll ow in g week. This
w a s i n
s p i t e
o f t h e
f a c t t h a t
o n
November
2
9
t h e
p r i o r i t y
i n t h e u s e o f
open-top cars
w as
withdrawn completely.
Demand
i s n o t a s
i n s i s t e n t , w i t h
t h e
l e s s e n e d a c t i v i t y
i n
va r i ous i ndus t r i e s ,
and
t h e r e
h a s
been
a
marked fal l ing
o f f i n t h e
expor t t r ade ,
i n
p a r t i c u l a r
l u r -
i n g t h e
p a s t
tw o
months.
The
f ue l s i t ua t i on t hus
i s
e a s i e r
i n
ce r t a i n s ec t i ons , s o
t h a t , f o r example, i n D i s t r i c t No. 8 (S t . Lo ui s) , da i l y improvement i s repor ted .
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- 1 4 - . X - 3 0 0 8 6 6
Coke h a s oxpcrioncod a f u r t h e r d c c l i n e i n pr ice .
Product ion o f anthracite coal during Novonbor w as 7,519,000 tons , a s
conparod with 8,188,000 tons i n October and 7,070 ,000 tons i n Novonbor, 1919,
and the
respective index numbers being
102, 111, and 106*
There
h a s
boon
v i r t u a l l y n o l o s s of t i n e f ro m t r a n s p o r t a t i o n d i f f i c u l t i e s . E f f o r t s o f the
f a i r pr i ce conni t toc a r e repor ted f ror i Di s t r i c t No, 3 ( P h i l a d e l p h i a ) to be
hol ding down nine pr ic es
t o o
fai r margin
of
prof i t above cos t
o f
produc-
t i o n and to have been l imit ing t h e rohandl ing of coal b y wholesalers* The
market i s boconing nor e stead y and complaints of shor tages f ro n eas t ern c i t i e s
a r c becoming loss numerous.
Pet ro loun.
-
Novonbor crude petroleum production
i n
D i s t r i c t
No, 11
(Dal l as )
w as
13,347,352 barrels ,
a new
r ecor d ,
a s
compared with 12,277,197
ba rr el s during October. Product ion i n D i s t r i c t No, 10 (Kansas City), however,
i e commencing t o show a s l ight decl ine f rom t h e peak i n October, I t i s r e -
ported that production i s i n excess o f t h e amount which can bo handlod readily
b y t h e pipe l ines and r e f i n e r s a r c temporari ly s toring some o i l - Dr i l l i ng
a c t i v i t i e s i n Texas have been steadily declining since July, and t h i s i s
p a r t l y a t t r i b u t a b l e
t o t h e
over taxed condi t ion
of
pipo l ines
and
s torage
i n
many
o f t h e
most ac t i ve f i el ds * Operators
i n
some
o f the
f i e l d s
i n
D i s t r i c t
No. 10 (Kansas City) a r c cur tai l ing developments t o some extent, b u t ex t en -
sive enlargements o f r e f i n e r i e s a r e i n progress* The petroleum market i n
t h a t D i s t r i c t i s exper iencing t h e usual seasonal dul lness ,
11
b u t t h e r e h a s
been
no
genera l
o r
sweeping decline
i n
ei ther crude pet roleum
o r i n i t s r e -
f ined products*
A
r educ t i on
i n t h e
p r i ce
of
crude
o i l o f 5 0
cen t s
p e r
ba r r e l
was announced i n November i n t h e Texas coas ta l f i e lds , d ue t o t h e heavi ly
increased product i on. Subsequent ly reduc t ions of 15 t o 25 cen t s p e r ba r r e l
were reported i n t h e f u e l o i l markets o f north Texas*
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0 7
- 15 — yv.- j (/0 i
Nonferrous metals .
-
Fur th er i s^ fwase
of
a c t i v i t y
was
noticed.
In / th e
z inc indus t ry i n D i s t r i c t No, 10 (Kansas Ci ty ) dur ing November. SMx/iuents
of z inc o re from t h e Missouri-Kansas-Oklahoma southwestern distr ict during
November were 37,470 tons,
as
compared with 40,479 tons during
t h e
sacre-
month l a s t ye ar - Shipments of lead o r e , however, were somewhat greater
than
i n
November
1919»
being 6,368 tons,
a s
aga i ns t
6 , 2 1 0
t ons .
The
average
p r i c e of z inc ore was the lowest average price f o r a n y month of th e year,
t h e pr ice be ing *40 p e r ton a t th e opening o f the month and 2)2 ,95 . .a t th e
cl os e. Lead pr ic es dropped $ 10 p e r t o n . Addi t ion al pr op er t i es shut down
i n t h e Di s t r i c t , many f o r three t o four months, and mines continuing t o
operate were forced
t o c u t
wages, beginning December
1 ,
from
10 to 25 pe r
' cen t , r educt ions t o remain i n e f f e c t a s long a s present z inc pr i ces prevai l -
Product ion
of
ref ine d copper
i n
D i s t r i c t
No. 9
(Minneapol is ) ,
a s
repor ted
b y companies producing 7 5 p e r cen t of the to ta l output o f the D i s t r i c t , was
19,926,725 tons during November,
a s
compared with
2 0 ,
194,498 tons dur in g
October and 25,156,563 tons during November, 1919* The decrease i s ascr ibed
t o t h e l ack of export demand and p r e v a i l i n g low p r i c e s , The number of miners
employed decreased 12 p e r cent from October t o November, o r from 27,035 t o
23,805, a s compared with 29,374 f o r November, 1919• Wages were red uce d i n
Michigan ei ther i n November or on December 1 , al though n o t i n Montana* Trade
sources i nd ic at e some recov ery bo th
i n
p r i c e
and in
demand
i n t h e
nonferrous
metal markets a s a whole a t t h e opening of December, b u t t h i s w as soon
fol lowed b y a r e a c t i o n , an d lower pr ic e le ve ls were reache d. The p r i c e of
lead was reduced b y t h e l e a d i n g i n t e r e s t on December 3 t o five cents , which
was the outside market level and on December 2 1 t o 4 . 7 5 c e n t s , b u t demand
h a s cont inued l ight i n this r retal , a s wel l a s i n copper , z inc, a n d t i n .
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6 8
™
U
~
X-3008
Eiaplpyrcent and, wages. - An incr eas i ng percen tage of unemployment i s
noted throughout t h e count ry , t u t t h e s i t u a t i o n i s most serious i n t h e
e a s te r n d i s t r i c t s , e s p e c i a l l y i n t h e manufactur ing centers , where mil ls
and f a c t o r i e s a r e e i t he r c l o s ed o r ope r a t i ng on pa rt - t im e s che dul es, Wage
re du ct io ns have al so become more ge ne ra l du ri ng t h e pas t month, especial ly
i n t h e
t e x t i l e i n d u s t r i e s ,
a
large percentage
of th e New
England mills
having announced wage cuts
of
about
2 2 $ p e r
cen t , ef fe ct iv e December
2 0 .
D i s t r i c t
No. 1
(Boston) says:
The
c l o s i n g
of the
wors ted mil ls
i n
Lawrence
t h e last week i n November affected approximately 1 , 5 0 0 employees, while some
l6,OCO have been affected b y wage reductions i n t h e cot ton mil ls ; wage r e -
duc t i ons i n Lowell, Mass., i n t h e cotton mills involve 25,000 employees
and in New Bedfo rd, Mass., about 4 0 , COO; i n Manchester , N . H . , upward of
l6 ,000 a r e a f f e c t e d b y reduced wage schedules announced t o t ake e f f ec t on
January 3» 1921, The Massachusetts Department of Labor and I ndus t r i e s
e s t i ma t e s t ha t 2 5 p e r cent of the membership of reporting unions were u n -
employed t h e middle of December, while i n many instances working hours have
been cu r t a i l ed -
I n
D i s t r i c t
No. 2 (New
York)
i t i s
s t a t ed t ha t
t h e
number
of
workers
i s
about
2 0 p e r
cent below
t h e
maximum reached
i n t h e
s p r i ng .
The
p r i n c i p a l
decline during December occurred
i n t h e
meta l
an d
k indred in du s t r i es in ,upp er
New York State, b u t i n t h i s D i s t r i c t a l s o th e most ser ious condi t ions prevai l
i n t h e
t e x t i l e
and
c l o t h i ng t r ades ,
i t
be in g est ima ted th at only 5»000
th e
65,000 normally employed i n men ' s c l o t h i ng f ac t o r i e s in New York City are now
a t work* I n fac tor ies engaged i n t h e manufacture of women's clothing, about
4 0 p e r cent of the 75,000 workers ordinari ly employed a r e s t i l l r e t a i n e d . I n
P a t e r s on employment i n t h e s i l k m i l l s i s about 1 0 p e r cent of normal* The
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New York rep or t fu r th e r says : Those id le i n Rochester include 9>200
clo th ing fac tory workers
and.
5.000 shoe-factory workers ,
a n d t h e
remainder
a r e made u p from those formerly employed i n t h e b u i l d i n g and metal t rades
and mis ce ll aneous f ac t o r y en t e r p r i s e s . I n Syracuse 100 f ac t o r i e s f o r mer l y
employing 40,000 persons have laid
o f f
18 ,7 2$ . fiuburn, F ul to n,
a n d
Oneida,
providing employment f o r 15,000 i n t h e ear ly spr ing , no w employ 10,000.
The
depress ion
i n t h e
lmxt-gcods trade
h a s
been r e f l ec t ed
i n
U t i c a
and
Cohoes, where only about 1 3 p e r cent o f the maximum number of such workers
are now employed. I n Troy eight of the nine l a rge col l a r an d s h i r t f a c t o r i e s
were closed during December, making idle 10,000 workers, mostly women
and
g i r l s . I n Rome, I l iori , Lit t le Falls , and Herkimer, where about 23,500
persons were employed last spring, 8,500 are now id le . These f i gu re s
and the more general data f o r t h e Sta te as a whole r e fe r i n t h e main t o
persons working
i n
i ndus t r i a l e s t ab l i s hmen t s
who
c o n s t i t u t e
i n
th i s S ta te
about one- thi rd o f the wage-earning po pu lat ion . Other types of workers have
been much less affected b y t h e s lackening i n b u s i n e s s a c t i v i t y .
I n t h e sou thea s ter n d i s t r i c t s a lso cons id erable unemployment ex is t s , ,
a l though condi t ions
a r e n o t s o
acu t e .
The
t e x t i l e m i ll s
i n
these sect ions
have likewise reduced wages anywhere from 2 0 p e r cen t t o 2 5 p e r cent .
D i s t r i c t No. 8
( S t .
Louis) say s th a t alth ou gh unemployment i s much less
marked than elsewhere i n t h e country i t h a s not i ceably increased dur ing
t h e p a s t 30 days , t h e l umber , f u r n i t u r e , c l o t h i ng , and meta l indus t r i es
be ing mos t a f fec ted . So f a r wage reductions i n this Dis t r ict have been
i n s i g n i f i c a n t .
I n D i s t r i c t No. 10 (Kansas Ci ty) repo r ts indi ca te very gen era l u n -
employment, due in p a r t t c t h e usual winter slowing down b u t a l s o r e s u l t i ng
from lack
of
demand
f o r
l oca l p r oduc t s .
The
cur t a i l men t
of
o p e r a t i o n
h a s
been f a i r l y gene r a l ; occur r i ng
i n t h e
mining
and
pe t r o l eum i ndus t r i e s ,
i n
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r a i l r o a d i n g , and to some extent i n me rc a n t i l e e s t a b l i sh me n t s . i*n
excep t ion
t o
t h i s s i t u a t i o n
i s
noted, however,
i n t h e
coal mines
of
Missouri, Kansas, Oklahoma, and Arkansas, where th e percen tage of un-
employment i s l es s than dur in g pre ced in g months. Report s from 144 of the
l a rg e r i n d u s t r i a l e s t a b l i sh me n t s
i n
five leading towns
i n
Oklahoma; which
employ
a
t o t a l
of
17, 000 pe rs on s, show
a
reduc t ion
of
forces amounting
on
t h e average t o about 7 p e r c e n t . O i l r e f i n e r i e s i n some instances have
reduced t h e number of employees a s much a s 4 0 p e r c e n t . There have been
some reductions i n t h e f o r c e s of packing houses, an d f l o u r m i l l s i n c e r t a i n
se c t io n s of the State have reduced their working forces nearly 5 0 p e r c e n t .
I t i s said that there i s more unemployment i n Colorado than a t a n y time f o r
t h e
pas t th ree years , t h i s be ing esp ec i a l l y t ru e
f o r t h e
th ree la rges t
c i t i e s . The bu i l d i ng t r ade s , however, a r e sa id t o b e work ing s tead i ly and
t h e s i t u a t i o n i n t h e c o a l and meta l l i fe rous mines i s good. I n Kansas, a l -
though there i s some increase i n unemployment among unskilled workers, the
s i t u a t i o n o n t h e whole i s f a i r l y g oo d. I n Wyoming, a l s o , th er e h a s been
some unemployment, b u t i t h a s n o t been except ional ly pronounced. I n D i s t r i c t
No. 12 (San Francisco) unemployment i s i n c r e a s i n g , th e unemployed i n t h e
S ta t e
of
Washington being estimated
a t
20,000, while
i n
Portland 10,000
la b o re r s a r e s t a t e d t o b e without work.
Wholesale t rade. - During Octob er t h e d e c l in e i n t h e volume of ne t
sa l e s of repo r t i ng wholesa le f i rms h a d become quite general n o t only a s
compared with
t h e
preceding month,
b u t
wi th
th e
same month
a
year
ago . The
downward tendency,continued during November,has become more pronounced i n
l i n e s n o t p re v io u s ly s o s e r i o u s l y a f f e c t e d . I n D i s t r i c t No. 3 (Ph i lade lph ia )
2 6 reporting hardware firms shew decreases o f 1 0 . 1 p e r c e n t i n November a s
compared with
t h e
preceding month, although sales
a r e
s t i l l
1 0 . 2 p e r
cent
i n excess of those f o r November, igig. The s a l e s of 51 wholesa le grocery
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9 ~ X-300S
houses
i n t h e
D i s t r i c t f e l l
1 5 - 8 p e r
cent
a s
compared, with
a
year
a g o ,
although showing
a
neg l ig ibl e increase over
t h e
preceding month.
I t i s
stated that buying
i n
th i s f i e ld
i s
l a r g e l y
f o r
immediate consumption.
As
a
mat te r
of
f a c t ,
i n
volume
and
number
of
sa l e s ,
th e
wholesale grocery
business
i s
probably about
a s
ac t ive
a s a
year
a g o , b u t
pr ice reduct ions
have brought about decreases
i n t h e
money volume
of
s a l e s .
I n
D i s t r i c t
No. 4
(Cleveland) sl ight reductions
a r e
shown
i n
volume
of
s a l e s
o f d ry
goods
and
grocery firms amounting
t o 4 . 2 p e r
cen t
a n d 3 . 8 p e r
c e n t ,
r e -
spec t ive ly , wi th
3
dry-goods houses
and 13
grocery f i rms report ing.
On th e
other hand, hardware sales
( 4
f i rms report ing)
a r e
s t i l l
1 6 . 7 p e r
cent above
those
f o r
November,
1 9 1 9 ,
while
3
wholesale drug concerns have increased
sa les
4 5 . 8 p e r
cen t
a s
compared with November,
1919- In
D i s t r i c t
No. 5
(Richmond) wholesale hardware, houses registered declines
of 7 . 8 p e r
cent
i n
volume
of
sa l e s
a s
compared with
a
year
ago and
l4-$f
p e r
cent
a s
compared
with
t h e
month
o f
October.
I n
th i s D i s t r i c t dec l i ne s
i n a l l
lines, namely,
g roce r i e s ,
d r y
goods, boots
and
shoes, hardware,
and
furni ture were reported,
t h e
percentage decreases
a s
compared with November,
1 9 1 9 ,
be ing
5 * 7 p e r
cent
f o r g roce r i e s (9 f i rms report ing) 2 p e r cent f o r d r y goods ( 8 f i rms ) ,
35*7 p e r cent f o r boots and shoes (9 f i r m s ) , a n d 84 p e r cen t f o r f u r n i t u r e
( 4
f i rm s) . Last year
i t wa s
sa id tha t :
At the
c lo se
of
November
t h e r e -
porting fi'Cms h a d large amounts i n orders outs tanding, b u t this year the
orders reported amount t o pr a ct i ca ll y noth ing . Back order s with which the
f e l l
o f f ,
firms began
t h e
year have been f i l led
as new
bus iness
o r
else have
been canceled before shipment could
b e
made.
A d r y
goods wholesaler
r e -
ported #125,000
i n
outstanding orders
on
November
3 0 , 1 91 9» t u t
only $3,000
on
November
3 0 , 1 9 2 0 -
Another fi rm se ll in g
t h e
same li ne es ti ma te s th at
they
h a d
unfi l led orders around
a
ha l f mi l l ion do l la rs
a t th e end o f
November
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7 2
- 2 0 -
7-3008
l a s t y e a r , t u t h ad n o t enough t o mention this year on the same date. A
boot and shoe de al er re po rt s #15,000 i n u n f i l l e d o r d e r s on November 30 ,
1 9 2 0 ,
compared with $200*000
on t he
same date
a
yea r
a g o .
Four fu rn i t u r e
makers reported outstanding orders as of November 30 , 1920 , a s b u t $37i932»
compared with *909*^30 on t he same date last year.
I n
D i s t r i c t
No. 6
(Atlanta) average decreases
a r e
shown
f o r a l l r e -
por t ing l ines both a s compared with November, 1919« and wi th t h e preceding
month, t h e decl ines be ing especia l ly heavy i n t h e case o f d ry goods and
shoes from t h e r e t u r n s of a year ag o. The 11 r e p o r t i n g d r y goods firms
show average sales decreases
o f 9*^ p e r
cen t
a s
compared with November,
1 2 . 2
1919» and p e r cent a s compared with t h e pre ced ing month. Si mi la rl y
9 wholesale shoe houses r eg is te r dec l in es of 40*2 p e r cent and 31*5 p e r cent ,
r e s p e c t i v e l y . Twelve groce ry fifcms give average sa le s
1 8 . 2 p e r
c en t below
th e t o t a l s f o r t h e same month last year a nd 11 , 7 pe r cent lower than those
of the preceding month, while t h e corresponding f igures f o r 9 hardware
f i rms
a r e 4 9 - 4 p e r
cent
and 9*5 P
e r
c@6t, re sp ec t i ve ly . Decreases
i n
sa les a s compared with November, 1919, &re heavy f o r a l l repor t ing l ines
i n D i s t r i c t No- 7 (Chicago), amounting t o l6 .2per cent f o r 2 3 grocery
houses , 2 0 . 1 p e r cen t f o r 8 shoe firms, and 2 9 . 1 p e r cent f o r 8 d r y goods
f i r m s . A l l concerns report cautious buying and downward price trends.
In D i s t r i c t No. 10 (Kansas City) t h e only exception t o t h e downward move-
ment i s found i n t h e case of drugs , decl ines be ing especia l ly heavy i n
groce r i e s an d f u r n i t u r e a s compared with a year a g o , w h i l e f u r n i t u r e ,
grocery ,
a nd
hardware sales
a r e
much below October averages.
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X-3008
I n
D i s t r i c t
No. 11
(Da l l a s ) , a l s o ,
t h e
so l i t a ry except ion
t o t h e
general
declines reported occurs i n wholesale dru gs, s al es being 8 p e r cen t i n
excess of those f o r November, 1919* al though 2 1 p e r cent below t h e
average
f o r th e
preceding month, with
5
f i nn s rep ort in g. Four grocery
1 9 2 0
f i rms report decl ines of 10 p er cent from November
(
a n d 3 4 p e r -
c
ent
a s compared with November, 1919/
f o r 2
hardware concerns,
th e
dec l ines
are 3 P
e r
cen t and 27 pe r cen t , resp ec t i ve ly ; f o r 3 d r y goods firms,
1 3 p e r can t and 29 pe r cen t ; a nd f o r 2 deal e r e i n farm implements,
37 pe r
cent
and 47 per
c e n t .
I n
D i s t r i c t
No. 12 (San
Francisco)
13 7 wholesale firms reporting f o r 8 l i ne s , namely , g ro cer ies , d r y
goods, hardware, drugs, shoes , s ta t ionery, furni ture ,
an d
au to t i r e s ,
show average declines a s compared with t h e preceding month and with
November, 1919» dr ugs agai n be in g alone i n maintaining an increase ,
having advanced 1 5 « 7 p e r cen t as compared with November, 1919*
Th e dec l i ne s as compared with a year ago amount t o 3 2 p e r cent f o r
au to t i r e s ,
2 3 - 8 p e r
cen t
f o r
f u r n i t u r e ,
3 3 - 3 P
e r
cent
f o r
shoes,
2 1 . 6 p e r cen t f o r d r y goods, 1 1 . 9 p e r oent f o r g r o c e r i e s , and 8 . 8
p e r
cent
f o r
hard ware . Declines from
th e
averages
of the
preceding
month were U 7 .7 p e r cen t f o r au to t i r e s , 1 9 - 5 p e r cen t f o r f u r n i t u r e ,
2 8 . 2 p e r cen t f o r shoes, 2 4 . 5 p e r cent f o r d r y goods, 1 4 . 7 p e r cent
f o r
g r o c e r i e s ,
1 8 . 1 p e r
cent
f o r
hardware,
and 11-5 P
e r
cent
f o r
drugs•
Demand i s reported t o b e rest r ic ted, buyers f i l l ing only immediate needs,
while current orders a r e small and , i n some cas es , p ra ct i ca l l y negl igib le«
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Reta i l t rade - The r e t a i l t r a d e s i t u a t i o n i s c h a ra c t e r i z e d by &
continued lowering of p r i c e s and an increased volume of b u s in e s s , Jua
both t o these p r ice reduc t ions a n d t o Christmas shopping. The -percentage
in c re a se o f n e t sales over those of November, 1919> i
n
-o st on wars 11..
i n P h i l a d e lp h ia 8 , 5 , i n Richmond 1 3 . 1 , a n d i n S a n Francisco 1 1 . 3 - ? h o
cause
of the
comparatively large volume
of
business during November
s
well expressed i n t h e repor t f rom Di s t r i c t No. 10 (Kansas City) whicr,
says: While t h i s may reasonably be a sc r ib e d i n p a r t a t l e a n t t o tx>e
seasonal influences impart3d by the Chr is tmas sp i r i t , i t i s quite
evident that t h e a t t r a c t i v e p r i ce s a t which goods a r e o f f e r e d a r e having
a good deal to do wi th t h b increased volume of s a l e s . I t i s reported
i n soa.e d i s t r i c t s tha t p r i ces are now approaching t h e replacement values,
whi le i t i s repor ted i n D i s t r i c t No, 8 (S t . Louis) that t h e p a s t 3 0
days have been marked
by
numerous
an d
d ra s t i c c u t s
i n
r e t a i l p r i c e s,
bu t
t h e r e d u c t io n s a r e i n a large measure isola ted and s p e c i a l i z e d . The
department stores a r e g ra d u a l ly l i q u id a t in g t h e large sums whicn were
t i e d
up in
stocks when
t h e
presen t dec l ines s ta r ted ,
b u t t h e
outs tanding
orders a r e very low and l i t t l e a t t e nt i o n h a s been paid t o t h e replacement
of depleted stocks because they a r e ho ld ing o u t wi th t h e view t o r e s to c k -
i n g a t
lower f igures during
t h o
early months
of 1 ̂ 2 1.
This
i s
sh'-wn
by
t h e percen tage of outstanding orders a t the end of November t o t h e to t a l
purchases during t h e calendar year 1 ^ 1 9 , which i s 7• I'
1
- c a to n , •+/•
i n P h i l a d e lp h ia , and Jlo i n Richmond.
Building - Causes operative i n preceding months t o hamper t h e
resumption
of
building continued
t o
prevent
a
r e v iv a l
of
a c t i v i t y .
The
d e t e r r e n t e f f e c t s
o f h W )
wage levels
an d
high pr ices
vf
b u i ld in g ma te r i a l s ,
toge the r wi th re s t r i c t ed funds f o r investment have been accentuated by
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X-3003
t h a usual decl ine t o b e expected t n i a season? I n New York State and
n o r th e rn New Je rsey bu i l d ing con t ra c ts f o r November were $20,000,000
below t h e October to ta l , b u t c o n t r a c t s w i th in t h e d i s t r i c t f o r t h e 1 1
months period were $579,>000,000, l b p e r cent i n excess of t o t a l s f o r t h e
same period in 1919* In D i s t r i c t No. 4 (Cleveland) t h e decrease ' i n to t a l
v a l u a t i o n of p e rmi t s f o r 1 2 c i t i e s f o r t h e same month l a s t ye ar was 51 P
e r
cent and a s l igh t ly g rea te r dec l ine occur red i n D i s t r i c t No. 5 (Richmond),
where totals were 5^*& per cent below those f o r November, 1919-* I n D i s t r i c t
No* 6
(At l a n t a )
a few
ci t ies show increases ,
b u t t h e
general t rend
i s
downward* I n D i s t r i c t N o . 8 ( S t . Louis) Louisville, Memphis, a n d L i t t l e
Rock a l l repor t dec l ines i n t h e value of p e rmi t s , a s compared with November,
1919*
More in qu ir ie s
a r e
sa id
t o
have been received
by
a r c h i t e c t s ,
b u i ld e r s ,
an d
c o n t r a c to r s ,
b u t
ac t ua l under tak ings
a r e f e w . I n
D i s t r i c t
No.* 9 (Minneapolis) t h e number of permits amount t o 8 1 p e r cent of the
t o t a l f o r November, 1919> and the v a l u a t i o n i s only 3 3 p e r cent of t h a t of
a year a g o . There was a dec l ine i n t h e number of permi ts i n every city
except Fargo a n d Missoula, a n d d e c l in e s i n va lua t ion occur red i n a l l c i t i e s
except
S t .
Paul, Missoula,
a n d
Great Fal ls .
I n
D i s t r i c t
No. 10
(Kansas
City) t h e decrease i n t h e va lue of permi ts a s compared with t h e same month
las t yea r w a s 5 0 . 6 p e r cent , a l though est imated costs of b u i l d i n g up to
December 1 were 1 1 . 5 p e r cent larger than during t h e corre spond ing peri od
las t yea r - I n D i s t r i c t No. 11 (Dal las ) t h e value of permi ts i s sued i n
9 l e a di n g c i t i e s w a s 4 2 , 9 p e r cent below va lu at io ns i n November, 1919*
a l though t h e total number of permits increased from 1 , 3 8 7 t o 2,001
#
As a
mat te r
of
fact , heavy decreases
i n
Fort Worth, Shreveport, Dallas,
and El
Paso account
f o r t h e
drop,
a s
elsewhere increases
h ad
occur red .
I n
D i s t r i c t No. 12 (San Franc isco) t h e d e c l in e i n b u i l d in g a c t i v i t y h a s n o t a t ?
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Y 6
- 2 4 - . X-3008
any time been so pronounced a s i n t h e o t h e r d i s t r i c t s , and al though
t h e va lue of permi ts dec l ined 8 . 7 p e r cent from October fig ur es , t h e
t o t a l s a r e s t i l l 1 . 6 p e r cent greater than those reported i n November,
1 9 1 9 . I t i s d i f f i c u l t t o e s t ima te t h e in f lu e n c e o f t h e seasonal
change
i n
bringing about
t h e
decrease since October,
a s
las t yea r
t h e November f igures regis tered a n advance.
Produc t ion
of
lumber
h a s
dec l ined genera l ly .
I n
D i s t r i c t
No. 5
(Richmond) many m i l l s have clo se d en t i r e l y , a n d a diminished production
f o r November i s r e p o r t e d by four lumber assoc ia t ions of the San Francisco
D i s t r i c t . The l a r g e s t of t h e s e , t h e West Coast Lumberman's Association,
wi th 1 2 1 m i l l s , r e p o r t s f o r t h e four weeks ending November 2 7 , orders
of
182,417,000 feet against
a cu t of
264,305,
000
f e e t .
The
d e c l i n e
h a s
been d u e p a r t l y t o seasonal cur ta i lment of o p e ra t io n s , a s some of the
l a r g e r m i l l s
a r e
c l o s i n g
f o r t h e
yearly overhaul ing
of
machinery,
and in
other sections snow h a s reduced operat ions . I n D i s t r i c t No. 3 (Ph i lade lph ia )
t h e r e
h a s
b e en l i t t l e b uy in g
of
lumber because bu i l de rs
a r e
unable
t o
secure
funds a n d because t h e p u b l i c i n g e n e ra l a n t i c ip a t e fu r th e r r e d u c t io n s .
I n D i s t r i c t No. 6 (At l a n t a ) I-be lumber situation shows some improvement.
While a number of m i l l s i n New Oij. .S a r e expected t o remain closed until
a f t e r
t h e
h o l id a y s ,
i n
Alabama many
a r e
resuming op er at io ns . In cr eas ed demand
h a s taken place f o r southern pine , a n d i n consequence prices have strengthens#.
Work
h a s
begun
o n t h e
f i r s t u n i t
o i a
lumber terminal located
on th e
Hackensack River, near Jersey City, N. J . This f i r s t un i t wi l l cover
a n a r e a of 50 ac re s , wit h s torage sheds f o r 100,000,000 feet of lumber
and a box
f a c to ry , p l a n
i n g
m i l l ,
a n d
sash
a n d
door p lan t .
The
t e rmin a l i s being erected t o store , handle and se l l P a c i f i s co a s t
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*
2
5 ~ X-3008
lumber brought by sea from po rt s i n Washington, Oregon, a n d Ca l i f o r n i a ,
P r i c e s - The Board's index number of wholesale prices showed
a further marked decline during November. I n October t h e number
stood a t 1 0 8 p e r cent above I9 I3 pr ic es , i n November a t $ 0 p a r cent .
This means there
h a s
been
a
decl ine
of 28 p e r
cent from
t h e
peak
of
l a s t May and of 8 . 5 p e r cen t du ri ng November. Imp ort s a n d expor t s a r e
much nearer t h e prewar level than a r e commodities f o r domestic consump-
t i on . Fur ther decreases i n p r i c e s of commodities which were a lr e ad y
a f f e c t e d b y t h e decl ine r a ther than a n extens ion of p r i ce cu t t i ng t o
o t he r i ndus t r i e s f ea t u r ed t h e month. I n other words# agr icul tura l p
pr oduc t s , t ex t i l e s , h i des , and l e a t h e r , a n d i ron a n d s tee l product s
decl ined very s t r i ki ng ly , whi le coal , petroleum, gas ol i ne , pape r , br i ck ,
and cement regained largely unaffected. I n t h e l a t t e r gr oups of
commodit ies reductions a r e repor ted nere a n d t he r e i n t h e open mar ke t,
b u t quoted contract pr ices appear t o b e a t approximately t h e same l^vel
a s i n ear l i e r months . I n t h e case of petroleum, reductions occurred
i n t h e Texas coa s tal f ie ld , b u t i n o t h e r d i s t r i c t s no important changes
have been made.
I n t h e
coal indus t ry pr i ces
a r e
r epor t ed
a s
eas ier
i n
December. Contract quo tat ion s
on
leading grades
of
a n t h r a c i t e
and bi tuminous f o r November, however, were a t t h e same high level a s
i n October.
I n thre e important in du s t r i e s - cotton, wool, and boot s and shoes -
where t h e l i q u i d a t i o n p r o c e s s h a s been of longes t dura t ion , fur ther
price reductions wers made i n November, b u t i t w as reported from several
sources i n December that buying h a d been on a la rg er sca le than
xn
r ece nt months. Fa l l i ng pr i ce s f o r farm pro duc ts h a s l e d t o a
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- 2 6 -
x-3003
wi thhold ing of commodities from market i n t h e case of co t t on , # # # %
and
tob acc o. Repo rts from
a l l
s ec t i ons
of the
country
a r e t o t h e
effect that lumber prices were heavily reduced during November*
Str uc tur al s te el along wi th other s t ee l product s l ike wise decl in ed,
b u t cement a n d brick prices remained firm.
Re ta i l food pr ic es decreased 2-g- p e r cent during November,
according
t o a n
index number
of the
Bureau
of
Labor S t a t i s t i c s ,
computed from t h e p r i c e s of 22 a r t i c l e s of food i n d i f f e r en t s ec t i ons
of the
country.
The
r a t e
of
decl ine
w as
only sl ightly more rapid
than during October and September. Fede ral Reserve ag en ts a l so re po rt
decreases i n r e t a i l pr ic e s during November an d December, although i n
most dis t r icts emphasis w as placed o n t h e fac t . t ha t i n s p i t e of
extreme reductions
i n
cer t a i n l i ne s , notably c lo th ing , r e t a i l pr i c es
a s a whole -were dec li ni ng l e s s ra pi dl y tha n wh ole sal e.