frsbog_mim_v14_0053.pdf

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X-3008

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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54

- 2 - X-300S

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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X-3008

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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58

•6 X-30Q8

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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r

° -

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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X-3008

(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

7/17/2019 frsbog_mim_v14_0053.pdf


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-

7/17/2019 frsbog_mim_v14_0053.pdf


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

7/17/2019 frsbog_mim_v14_0053.pdf


- 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

7/17/2019 frsbog_mim_v14_0053.pdf


- 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


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


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 .

7/17/2019 frsbog_mim_v14_0053.pdf


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

7/17/2019 frsbog_mim_v14_0053.pdf


X-3006

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

7/17/2019 frsbog_mim_v14_0053.pdf


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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- 1

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


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


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


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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- 2 2 -

X-300K 7 4

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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- 2 3 -

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

7/17/2019 frsbog_mim_v14_0053.pdf


- 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.

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