Milford chronicle., 1922-01-06
GENERAL SUMMARY OF
BUSINESS CONDITIONS
In the Third Federal Reserve
District, Compiled as of Dec.
21, 1921, by Richard L. Aus
tin, Chairman of the Board
and Federal Reserve Agent.

and Federal Reserve Agent.
Continuing the reaction which begal
early in November after three weeks o
marked improvement, business condi'
tions in the Third Federal Reserve Dis
trict have been exceedingly dull during
the past month. All industries, with the
exception of two.-and these relatively
minor in scope,-have passed through a
period of declining demand and leduc-
ed operating schedules. Retail trade
however has been good, owing to usual
Christmas buying, and advance reports
indicate that the holiday trade this year
will compare favorably with that of 1920.
But wholesale business has been poor,
and general manufacturing activity low.
1t must be remembered, of course, that
in these fields December is normally a
month of relative dullness because of the
taking of inventories. But the desire to
show small inventory figures on financial
statements is more pronounced this year
than ever before, and as a result there
has been little ordering for immediate
delivery. Future buying, too, has been
!
derlying conditions to indicate that gen
eral business may soon resume its move
ment toward recovery, but it is also true
that little, if any, improvement has been
made during December.
The reaction in the iron and steel in
dustry has been more severe perhaps
than in any other In the latter part OF
November the demand began to fall off,
and today the amount of business being
transacted is very small. Production has
been further curtailed, and the industry
is operating at rate but little above
that of the exceptionally inactive period
of last summer But even at the low
rate now being maintained, production
exceeds consumption. and stocks are ac-
cumulating. There is much unevenness,
however, both in sales and in production
schedules for several firms. particularly
those manufacturing special machinery
have reported the receipt of fair sized Or
ders. But the industry in general has
had a poor month, and the firms in this
district have suffered rather more than
those in other iron and steel centers.
The coal industry, too, has been ad-
versely affected. The market for btu
minous coal is practically stagnan; in
fact, the demand is so small that in spite
of greatly curtailed production, stocks
continue to grow. Prices have declined /
esnecially on coal from union mines, the
present level being about 16 per cent be-
low that of July. To this result the i'm
portation of British coal has been a con-
tributing influence. Anthracite coal con-
ther of the past month slightly stimulat-
ed retail sales, but consumers have not
laid in their entire winters supply and
the result is that thus far the seasons
volume of sales has been discouraging
both to retailers and operators; so much
so. indeed, that several firms have al
ready closed their mines, and others con-
template doing so if substantial buy
ing movement does not soon develop.
In several of the textile industries, also
much of the gain made in the early fall
has been lost. The demand for cotton
goods. both for immediate and future
shipments, has dropped considerably, op-
erations have been curtailed and prices
have declined. The call for cotton yarns
has been much smaller and there has
been little purchasing of raw cotton. The
final government cotton crop estimate OF
3. S4O.OOO bales was more than 100000
,ales greater than that previously report
ed, and the prospects of larger sup
Div have had the usual effect on the de-
mand. Although the raw wool market
has maintained much of the activity it
displayed during the last three months,
sales of carpet woods being particularly
rood, the demand for wooden and worsted
yoods has declined sharply. Recent bus
ness in the mems clothing industry has
leen slight, and as a result, the call for
voolen goods from this source has been
negligible. The garment makers strike
n New York has also aided in curtail-
ng sales of woolen and worsted cloth.
rhe demand for broad silks, however,
las improved somewhat, but that for
aw and thrown silk is still small.
The hosiery industry is one of the very
ew that have maintained their position
Turing the month. The demand for hea- 4
her hosiery has been exceptionally good,
wing to fashions having decreed an
ther low shoe winter, and manufactur
rs have had difficulty in supplying it.
or silk hosiery, too, the call for imme
late delivery has been large, but owing
o the marked advance in raw silk quo
ations and the uncertainty as to their
lture trend, the placing of forward de-
very orders has been checked. A fair
olume of business has been transacted
l infants and children's cotton stock
lgs, but orders for mems and women's I
Otton hosiery have been small. The un-
erwear industry has received a few re- :
eat orders for heavy weight goods for
shipment General yhowings
: heavy weight lines for next fall will L
Ot be made until late in January, but
ready some orders have been booked.
cry little business has been done, how
yer, in light weight underwear, jobbers I
eing disposed to wait until the raw
,tton market becomes settled. I
General conditions in the shoe industry
i've not improved. Firms manufacture v
g the cheaper grades have received a
ir amount Of business, but the demand T
r shoes of the better quality has fallen
{. Especially is this the case with re-
ect to women's shoes, owing to the un- 7
rtaintly as to colors and styles for next
ring. It is true, however, that ra- II
er large number of orders for white
oes has already been placed. The b
lther markets have reacted to condi-
ms in the shoe industry. Glazed kid W
anufacturers have caught up with the Al
mand for the finer grades, and some