GENERAL BUSINESS CONDITIONS.

There is given on the preceding page a sum- to 4 per cent. Town notes, fall maturities, mary of business conditions in the United 2.75 to 3 per cent; spring maturities, 3 per cent States by Federal Reserve districts. The re- to 3 per cent; 90-day bankers' acceptances, ports are furnished by the Federal Reserve 23 per cent upward indorsed, 23 per cent upAgents, who are the chairmen of the boards of ward unindorsed. directors for the several districts. Below are the detailed reports as of approximately October 23:

DISTRICT NO. 1-BOSTON.

The expansion of business in general and the increase in retail trade continues unabated; while the current tendency seems to be toward even greater activity and higher prices, rather than toward any slackening of demand.

the week ending September 16.

Loans and discounts of the Boston Clearing House banks on October 14 show an increase of $16,587,000 over last month and demand. deposits have increased $13,843,000 in the same period. The amount "due to banks" on October 14 was $150,161,000 as compared with $130,044,000 on September 16. The excess reserve of these banks increased from $26,940,000 on September 16 to $36,168,000 on October 14. Exchanges of the Boston Clearing House for High and increasing cost of everything used the week ending October 14 were $189,721,963 in manufacturing is the most pronounced fea- as compared with $203,964,782 for the correture in the situation. Raw materials of prac-sponding week last year and $186,433,957 for tically every kind are scarce and any special demand raises prices at once. This has been well illustrated in leather, where the efforts of domestic manufacturers of leather goods and shoes to cover their requirements on contracts have shown the market to be practically bare of some kinds of leather and have forced prices upward 10 per cent or 15 per cent in two or three weeks. Manufacturers of all kinds of goods have therefore become cautious about making future contracts until they can see their way clear to secure the materials needed to cover. The effect of this condition on the jobber, retailer, and even the consumer is to lead him to stock up before prices advance further. As labor is being well employed at increased wages and as the farmers are securing good prices for their crops, the buying power of this district has been materially increased and retailers everywhere are reporting exceptionally good business.

The money market continues dull and easy, with no apparent change. Call money, 3 per cent; six months' money, 3 per cent to 3 per cent, with exceptions at 31 per cent and some business at 4 per cent; year money, 4 per cent

Building and engineering operations in New England continue to set a new high record. From January 1 to October 18 these contracts amounted to $168,003,000 as compared with $141,914,000 for the corresponding period of 1915, and $155,203,000 for the same period in 1912, the best previous year on record.

Exports from the port of Boston for September, 1916, amounted to $15,091,461 as compared with $17,678,230 for August, 1916, and $7,177,360 for September, 1915. Imports for September, 1916, amounted to $9,148,998, a decrease of $2,023,886 from August, 1916, and a decrease of $3,097,535 from September, 1915.

The receipts of the Boston post office for September, 1916, show an increase of only $12,000, or less than 2 per cent over September, 1915. For the first 15 days of October receipts were about 9 per cent, or $30,000 over the corresponding period last year.

The Boston & Maine Railroad reports net operating income, after taxes, for August,. 1916, as $1,703,943 as compared with $1,270,930 for the corresponding month of 1915. The New York, New Haven & Hartford Railroad

reports net operating income, after taxes, for August, 1916, as $2,366,073, as compared with $2,114,540 for the same month last year. One of the larger railroad systems states that there are about 15 per cent more freight cars on its lines than normal, but that the number now is about 20 per cent under what it was at the time of the embargo last spring.

Now that the harvest is in, reports indicate that the results are about as estimated a month or two ago. The hay crop was well above normal. The apple production is about 75 per cent of normal with a great deal of apple scab and the quality generally not up to the average. The grain and oat crop was comparatively light. The prevailing high price for potatoes more than offsets the deficiency in the yield, which was not as great as it has been in some years past. The cranberry crop is small, due to wet weather in the early spring.

coming in from Africa and South America, but little or none from Australia or the other British colonies. The woolen and worsted mills are running as full as practicable, the worsted mills being retarded to some extent by the high price of wool required for that industry. It is said that this is the best high-price wool market we have had for a great many years.

In the cotton-goods industry conditions are practically the reverse of what they were in 1914. At that time manufacturers were well supplied with finished goods and were glad to make even small sales. At present the mills have practically no finished goods for spot delivery and buyers must content themselves with making future contracts. It is now the buyer and not the seller who is urging business. Cloth brokers are visiting mills and in many instances are willing to make contracts for delivery starting late next spring and running The uncertainty in the leather situation and well into the summer. Manufacturers who the rapid rise in prices has been very discon- have been through similar periods are exerciscerting to boot and shoe manufacturers. ing caution against the day when they may They are running their factories at full capacity find themselves with high cost materials on and are taking care of their regular customers hand and contracts for their goods canceled. for some months in advance. Beyond this With this in view they are reluctant to make they have no idea what prices to ask in order commitments as far ahead as the buyers desire. to protect themselves. Retailers are buying This is of course natural, in a rising market, all that the factories can produce and the when purchasers can see a profit in everything larger manufacturers are distributing their they have bought. It has been some years output in proportion to the amount purchased since new mills in any considerable number by the retailer and jobber in former years. three or four mills are in the process of erection have been built, but now in New Bedford alone Collections are very good and this would seem to indicate that goods are being sold to the which will add hundreds of thousands of new ultimate consumer and not retained on the spindles to that city's capacity and bring in many new operatives. Mill stocks have inthe last year and on the average are selling creased materially in value and price during higher than for some years past, while in many instances they are establishing new high records. While the price of cotton goods at retail has advanced, it has not kept pace with the increased production cost nor with the prices being obtained by manufacturers. Therefore, when jobbers and retailers reach the end of their stocks, purchased many months ago at lower prices, radical price increases will probably be necessary unless, in the meantime, there is some decided change in the situation.

shelves of the retailer.

The dry goods business continues active. The most serious problem confronting the dry goods merchant is the prices asked for advanced orders and he is in doubt whether to purchase now and risk a drop in prices before he receives and sells the goods or wait for lower prices and perhaps be unable to get the goods later.

Wool prices are strong, but dealers feel that the advance is legitimate and the purchasers, for the most part, are buying to cover contracts. The situation in regard to the importing of wool has not changed. Some wool is

DISTRICT NO. 2-NEW YORK.

In spite of the existing high prices remarkable activity continues in most lines of business with a general tendency toward further expansion. Manufacturers are unable to keep pace with their orders, being handicapped by labor shortage and other deterrents.

Business in both wholesale and retail markets has been stimulated by more seasonable weather. In the wholesale trade, buying for next spring shows some conservatism. Department stores report a slight falling off in collections, but expect, in the near future, an improvement in this condition together with a material increase in sales. Retail clothing stores are doing a large volume of business.

The cotton goods trade is prosperous although the price of raw materials is very high and the mills have been unable to run to capacity because of the scarcity of labor. In the white goods line, both sales and collections are good. Demand for woolen goods is strong. The retail concerns in this line are placing large orders with the wholesale dealers.

In the leather market there is a heavy demand for raw materials and a continued rise in prices, which is reflected in the higher cost of manufactured goods.

Jewelers report that sales and collections are satisfactory. Shipyards are very busy. They are reported to be buying supplies for delivery as far ahead as the spring of 1918. Meat packers report satisfactory conditions in the domestic market and a steady volume of export trade from this port. The building trade in New York City has been quiet, statistics for September showing a decrease from last year of $2,859,349. Dealers in building materials report small sales and abnormally high prices. The scarcity of freight cars in all classes of equipment became more acute during September, the net shortage on the railroads of the country having increased from 19,873 cars to 61,030 cars.

Recent developments of importance in the labor situation have been the settlement of the controversy between the milk distributers and producers and the outbreak of a serious strike among the workers in several large oil plants in Bayonne, N. J.

The New York Stock Exchange is passing through a period of extraordinary activity on a rising market. Transactions in stocks, in September, totaled 30,096,390 shares compared with 18,558,765 in September, 1915. Bonds sold during the month amounted to $96,384,000 par value against $81,171,000 in the same month last year.

Exchanges through the New York Clearing House for the year ended September 30 aggregated $147,180,709,461. This represents the most active year in the existence of the association, the above figures showing an increase over last year's total of $56,338,001,738 and surpassing the previous record year of 1906 by $43,426,609,370. On October 14 members of the New York Clearing House reported loans, etc.; $3,337,732,000, deposits $3,436,939,000,

The metal trades are very active. Heavy buying continues in iron and steel, the decrease in September of 137,773 tons in the unfilled orders of the largest producer being accounted for by better working conditions and a consequent increase in shipments. Active buying by railroads of cars and other equipment is reported. Electrical supplies and equipment are in good demand. A large concern in this line reports that the mills are running to capacity with more orders on hand than they are able to fill. The position of the copper market is very strong, owing to large purchases excess reserve $68,914,410. Since September by foreign governments. A large volume of business is reported in paints, drugs, and chemicals. Conditions in the furniture trade are excellent, orders being plentiful and collections good. There are no labor troubles, and very few failures have occurred in this line.

66559-16- 5

2 loans have increased $45,395,000, deposits increased $12,170,000, and excess reserve decreased $26,914,730.

Statistics for September, compared with the corresponding month of last year, show large increases in New York City bank clearings,

postal receipts, and exports and imports. Railroad at Lewistown Junction compared Foreign trade and ocean passenger traffic was disturbed by submarine activities.