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Seventeenth oAnnual
of the

FEDERAL RESERVE BANK
OF PHILADELPHIA

Made to the Federal Reserve Board
for the Third Federal Reserve District
by the Chairman of the Board
and Federal Reserve Agent




193 1

Seventeenth oAnnual cBgport
of the

FEDERAL RESERVE BANK
OF PHILADELPHIA

Made to the Federal Reserve Board
for the Third Federal Reserve District
by the Chairman of the Board
and Federal Reserve Agent




1931

Letter of Transmittal

March 19, 1932.
Federal Reserve Board
Washington, D. C.
Sirs :—
I have the honor to transmit herewith
the seventeenth annual report on the operations of the Federal Reserve Bank of
Philadelphia, covering the year 1931.
Very truly yours,




R.

L. AUSTIN

Chairman of the Board and
Federal Reserve Agent

CONTENTS
Page

Profit and loss account

5

Statement of condition

7

Trade and industrial conditions

9

Financial changes:
Member banks
Federal Reserve Bank
Money rates

13
16
20

Federal reserve notes

21

Departmental operations

22

Personnel

24

Banks of the district
The National Credit Corporation
Membership in the system
Fiduciary powers
Member bank earnings and expenses
Banking and business statistics

25
26
27
28
28
29




BILL AND SECURITY HOLDINGS
FEDERAL RESERVE BANK OF PHILADELPHIA
MILLIONS

1928
MILLIONS
$

1930

1929

1931

DISTRIBUTION OF BILLS DISCOUNTED
FOR PHILADELPHIA
> BANKS

i\

60

(\

!

•
i

SLA
W

\

• f
• /

\

FOR OTHER BANKS

^

20
•

1928




1929

1

/

^

"'*•

1930

[/

1931

'f!

Annual Report of the Federal Reserve Bank
of Philadelphia for 1931

Business activity and prices of commodities and securities
declined substantially in 1931. Reflecting these conditions, the
volume of member bank loans decreased and over much of the
year the need for reserve bank credit in this district was small.
But in the fall, troubled banking conditions were accompanied by a
particularly strong demand for currency, a sharp increase in borrowings from this bank, and numerous bank suspensions.
Profit and loss account
1931

1930

1929

Earnings:
From
From
From
From

$1,407,303
213,784
969,430
123,498

Additions to current net earnings
Deductions from current net earnings....
Net additions
Net earnings available for dividends,
surplus and franchise tax

$6,076,048

2,041,627

2,197,891

$954,615

$3,878,157

$219,038
63,296

$192,688
44,533

$1,181
77,350

$155,742

Current net earnings

$2,996,242

$728,430

Current expenses

$4,493,786
666,005
808,116
108,141

1,985,585

Gross earnings

$1,217,736
155,562
1,521,825
101,119

$2,714,015

bills discounted
bills bought
United States securities
other sources

$148,155

$76,169*

$884,172

$1,102,770

$3,801,988

$1,002,601
0
100,169

$938,312
0
2,863,676

Distribution of net earnings:
Dividends paid
$1,004,835
0
Paid to Government as a franchise tax. .
120,663#
Transferred to surplus account
* Net deduction.

Withdrawn from surplus.

Income received from discounted bills during the first nine
months of 1931 was only $526,000, about half the amount earned
a year earlier, owing partly to lower discount rates; the volume




Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

of discounts during the last quarter, however, was so heavy that
the total amount earned in the year was raised to $1,407,000 or
$190,000 more than in 1930. Lower rates of return also affected
the income from United States securities, which dropped more than
one-third from 1930 despite the fact that holdings of these securities were greater in 1931.
Gross earnings totaled $2,714,015 as compared with $2,996,242
in 1930; current expenses also declined, being the lowest since 1919,
so that the decline in current net earnings was only from $954,615
to $728,430. Additions to these earnings, largely due to profit
realized on the sale of United States securities, raised net earnings
to $884,172, although this was the lowest amount since 1924. It
was not sufficient to meet dividend payments of $1,004,835, so that
$120,663 had to be taken from surplus; this was the first time since
1916 that earnings failed to equal dividends. The surplus was
further reduced by a charge of $458,716, reserved for depreciation
on United States bonds.
A departmental distribution of current expenses is given
below:
1931

1930

$ 95,648
Maintaining the accounts of the bank
58,014
Loans and discounts
360,656
Currency and coin*
434,336
Transit and collections
20,975
Fiscal agencv functions
Custody of securities, including purchases
and sales
71,505
Transfer and telegraphic service
27,279
Official salaries and supervisory expenses. . .
159,779
Federal reserve agent's department:
(Custody of collateral against federal reserve notes, note issues, bank examination, library, statistical and business
reporting and analysis work)
91,434
Maintaining the general audit
59,966
Bank relations
19,206
Insurance (other than on currency, coin
and security shipments)
32,285
Operation of banking house
150,836
This bank's portion of Federal Reserve
Board expenses
71,036
Miscellaneous
178,055

% 97,713
54,075
390,237
432,758
25,383

Totals*
Cost of federal reserve currencv
Total current expenses
Omitting cost of federal reserve currency.




1929
$

97,701
55,734
423,349
451,798
31,459

68,370
26,983
158,739

71,404
21,669
162,165

88,709
60,093
18,182

85,813
59,362
15,801

32,476
154,412

33,117
165,319

78,901
174,141

75,170
169,467

$1,831,010
154,575

$1,861,172
180,455

$1,919,328
278,563

$1,985,585

$2,041,627

$2,197,891

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

Statement of condition
December
31, 1931

December
31, 1930

Gold reserves
Reserves other than gold

$227,704
15,237

$238,552
8,874

+

Total reserves
Non-reserve cash

$242,941
3,656

$247,426
5,146

- $4,485
- 1,490

48,295
68,117

10,272
15,391

+ 38,023
+ 52,726

Total bills discounted

$116,412
4,065
68,652
5,610

$25,663
3,496
54,204
610

+$90,749
+
569
+ 14,448
+ 5,000

Total bills and securities

$194,739
904
624
43,558
2,626
1,152
245

$83,973
68
350
51,802
2,614
40
95

+$110,766

Total resources

$490,445

$391,514

+ $98,931

$269,372

$153,727

+$115,645

123,939
3,551
7,609
391

142,539
1,344
558
163

Deferred availability items
Capital paid in
Surplus
Depreciation reserve on U. S. bonds
All other liabilities

Total deposits

$135,490
41,826
16,600
26,486
475
196

$144,604
49,256
16,793
27,065
16
53

59,114
7,430
193
579
459
143

Total liabilities

$490,445

$391,514

+ $98,931

(OOO's omitted)

Changes

RESOURCES

Bills discounted:
Secured by government obligations
Other bills discounted
Bills bought
United States securities
Other securities

Due from foreign banks
Federal reserve notes of other banks
Uncollected items
Bank premises
Claims account—closed or suspended banks
All other resources

-$10,848

6,363

836
274
8,244
12
1,112
150

LIABILITIES
Federal reserve notes in circulation
Deposits:
Member bank—reserve account
Government
Foreign bank
Other deposits

Ratio of total reserves to deposit and federal reserve note liabilities combined. . .
Contingent liability on bills purchased for
foreign correspondents




60.0%
$24,604

82.9%
$42,147

+
+
+

18,600
2,207
7,051
228

22.9%
- $17,543

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

DISTRIBUTION
RETAIL AND WHOLESALE TRADE

PERCENT

I923-25AVG-I00

/ \

1926

1927

1928

1929

^RETAIL SALES

1930

1931

1930

1931

FREIGHT CAR LOADINGS

1926

1927

1928

1929

PASSENGER AUTO REGISTRATION
I923-25AVG.=IOO

1926

1927

1928

1929

1930

1931

1929

1930

1931

PRICES

1926




1927

1928

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

Trade and industrial conditions in the Philadelphia
Federal Reserve District
The volume of business in 1931 continued the downward trend
which commenced in 1929, so that trade and industrial activity
reached the lowest level in many years. Prices of all types of
commodities, securities, and real estate declined almost steadily.
The general wholesale commodity price index in 1931 was the
lowest since the early war days; it was 18 per cent below 1930
and only two per cent higher than in 1913. Prices of farm products
showed the most drastic decline, being 9 per cent lower in 1931
than 1913, while foods were 15 per cent and other commodities,
chiefly manufactures, 5 per cent above the pre-war level. The
price recessions of the past two years have reacted adversely on
business, finance, and credit in this district as in the country, resulting in greater uncertainty and impairment of confidence than
in the previous year.
The value of mercantile trade declined sharply. Retail sales
were 13 per cent smaller than in 1930 and 21 per cent less than in
1929. Sales at wholesale declined 15 per cent from the previous
year and were 26 per cent below those of two years earlier. Stocks
of merchandise carried by retail and wholesale establishments decreased correspondingly. Buying of new passenger automobiles, as
indicated by registrations, also was curtailed.
Shipments of commodities by railroad freight in this section
were noticeably on the decline throughout the greater part of the
year, reaching the smallest volume in the last decade. While a
portion of this decline may be attributed to deliveries of merchandise by truck, the principal cause of the reduction in loadings,
amounting to 21 per cent from a year ago and 33 per cent from
1929, was the marked falling off in the volume of trade and industrial output.
The value of foreign trade, as indicated by shipments at the
port of Philadelphia, was substantially smaller than last year.
Exports were 27 per cent and imports 30 per cent less than in 1930;
custom receipts also showed a loss of 22 per cent. In the country
as a whole, exports dropped 37 per cent and imports 32 per cent.
Production of manufactures continued the declining trend of
the previous year. The index of manufacturing activity was 76.7




Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

per cent of the 1923-25 average, showing a drop of 20 per cent
from a year ago and of 31 per cent from 1929 which was an exceptionally high year in manufacturing. The most drastic curtailment occurred in the output of such producers' goods as heavy
metal products used for equipment purposes, whereas the output
of consumers' goods, such as textile products and shoes, held its
ground, owing partly to reduced supplies in distributing and producing channels and to the wearing out of consumers' stocks.
Carry-over of manufactured products as well as of raw materials
and commodities for further manufacture by local plants has been
rather low in comparison with the preceding two years.
Factory employment was 17 per cent smaller and wage payments 29 per cent less than in 1930; compared with 1929 employment declined 24 per cent and wage payments 40 per cent. The
decrease in factory wage earnings was due to reduction in operating time as well as in wage rates. Employment averaged about
766,000 workers, the shrinkage from 1930 approximating 156,000
workers. The weekly average of wages paid was nearly $16,000,000, a decline from 1930 of almost $7,000,000 a week.
Output of coal mines reflected unfavorable industrial and
weather conditions. Production of anthracite was 14 per cent
smaller than in the previous year and 19 per cent less than two
years ago. Similarly production of bituminous coal declined 21
per cent from 1930 and 32 per cent from 1929.
Activity in building and general contracting showed a smaller
degree of fluctuation, though at a considerably lower level, than in
the previous two years. The value of contract awards in the
aggregate declined 43 per cent from 1930 and 53 per cent from
1929. The drop in contracts let for residential buildings amounted
to 40 per cent as compared with the previous year and 73 per cent
from two years ago. These declines were due to lower construction costs and to conditions within the industry itself as well as
to business generally. Employment and wage earnings in building trades appear to have been more severely affected than those
in other major industries.
The real estate situation continued to reflect declining prices
and exceptionally numerous foreclosures. Forced sales, as measured by the number of writs issued in Philadelphia, reached the
largest volume in thirteen years. They exceeded the 1930 figure
by 21 per cent and were 51 per cent greater than in 1929. Such
renting demand as existed throughout the year was restricted




10

Seventeenth

Annual

Report,

Federal Reserve Bank of

Philadelphia

INDUSTRIAL PRODUCTION
PHILADELPHIA FEDERAL RESERVE

DISTRICT

PRODUCTIVE ACTIVITY IN MANUFACTURING

PERCENT

I923-25AVG.= 100

100

50

1926

1927

1928

1929

1930

1931

VALUE OF BUILDING CONTRACTS

200

19 23-25AVG.= fOO

«
TOTAL

j

|

150

l

1

100

1

RESID I N T I A L - ^ ' ^

V

50
\

^

ADJUSTED FOR SEASONAL VARIATIONS

1926

1927

1928

1929

1930

1931

OUTPUT OF COAL

150

1923-25 AVG.= 100

ANTHRACITE

\ A/

100

Bl FUMINOUS

50

1

DJUSTED FOR SEASONAL VARI/kTIONS

1926




1927

1928
11

1929

1930

1931

*

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

mainly to the less expensive dwellings, and vacancies exceeded
those in the preceding two years. Rents in Philadelphia were 7
per cent lower than in the previous year and 10 per cent less than
two years ago, but 40 per cent higher than in 1914. Funds for
financing new purchases have been rather scarce, particularly in
larger industrial cities, and there has been more than the usual
demand for the reduction of mortgages. Difficulties also have been
noticed in meeting such fixed charges as taxes and interest as
well as payment of rent.
Farm crop yields on the whole were larger than in 1930 and
compared favorably with the ten year average, even though the
acreage harvested was smaller. The value of crops, however, was
only 75 per cent of that in 1930 and 66 per cent of that in 1929,
indicating a sharp reduction in prices. Income of local farmers
from livestock and livestock products, particularly dairy and poultry, while reduced in comparison with other years because of lower
prices, provided means with which to meet most of their expenses,
including taxes and interest charges on obligations, probably with
less difficulty than was the case in urban industrial sections. The
supply of farm labor was greater than normal requirements, exceeding that of 1930, owing partly to the influx of industrial
workers in search of livelihood on farms. Wage rates and earnings
of hired farm hands declined.
Retail prices in 1931 declined more sharply than in the preceding year, so that the cost of living has been reduced further. The
table below gives percentage changes in the index of the cost of
living based on the family budget requirements of industrial
workers.

Items included
in the cost of
living

Per cent change
December 1931 compared with
December 1930

December 1929

U.S.
Food
Clothing
Housing
Fuel and light. .
House furnishings
Miscellaneous...
Total

Phila. Scranton U.S.

-16.7
-11.4
- 7.0
- 4.0
-11.3
- 1.3

-12.9
-13.9
- 7.2
- 2.1
-12.1
- 1.4

- 9.3 - 8.5

Phila. Scranton U.S.

Phila.

+ 2.0

-12.7
- 1.0

-27.7 -25.0
-15.6 -17.1
-10.3 -10.4
- 6.0 + 2.9
-15.5 -16.6
- 1.2 - 1.6

-27.5
-18.3
- 7.4
+ 1.1
-14.8
- 1.3

+ 8.9
+34.2
+36.2
+66.3
+60.7
+99.4

- 9.3

-14.9

-14.0

-14.8

+41.6 + 50.5

-16.0
-16.1
- 4.6

Source: United States Bureau of Labor Statistics




December 1914

12

+
+
+
+
+
+

17.0
42.0
40.3
91.7
54.1
117.6

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

Financial changes in the Philadelphia district
Member banks

The accumulation of deposits, which had been so characteristic
of the reports of member banks during 1930, continued in the early
months of 1931 and the April peak was the highest on record. This
increase was confined largely to Philadelphia banks and reflected
gains in individual deposits and in balances held for other banks,
as well as in deposits credited to the government in payment for
new issues of United States securities.
From the high point in April there was a pronounced and
rather steady decline in net demand deposits, but the high in time
deposits was not reached until August. The sum of these two
classes of deposits decreased in May and June, but showed little
change in July and August. The exceptional demand for currency
which followed caused marked declines in deposits, in September,
October and early November. On October 3 the Clearing House
Committee of the Philadelphia Clearing House Association adopted
a resolution reading in part: ". . . that all financial institutions
in this city having saving fund deposits or other time deposits
require that notice be given as provided by the terms of the agreement as contained in the pass books or other forms of contract."
Part of the reduction in time deposits in November and December
no doubt reflected the transfer of deposits from the time to the
demand classification as notices given by depositors expired. The
continued falling off in the total of net demand and time deposits
later in November and in December in part was due to the repayment of loans and possibly in part to withdrawals of currency.
The following table gives changes in the loans and investments
of all member banks. Although the figures have been affected by
December 31
(000,000's omitted)

1931

Changes

1930

$53

Loans to banks
Loans to other customers:
Secured by stocks and bonds
All other
Loans to open market*... .
United States securities
Other securities . . . .

$56

«2
- 134
- 71
- 38
+ 118
- 47

535

669

915

986

18
337

56
219

700

747

Total loans and investments. . . .
$2,558
$2,733
-$175
* Includes bought commercial paper and bankers' acceptances, and loans on
securities to New York City brokers.




13

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

MEMBER BANK DEPOSITS
PHILADELPHIA FEDERAL RESERVE DISTRICT
MILLIONS
%
2400
2300
2200

*

TOTAL OF NET DEMAND
AND TIME DEPOSITS

^ ^ ~ *
_ / * ^

^J

\

2100
2000

1300
1200

1929

1930

1931

CLASSIFICATION OF DEPOSITS
NET DEMAND

^_^o—

MOO
TIME

1000
900

1929
1200

1930

1931

GEOGRAPHIC CHANGES IN DEPOSITS

1100
BANKS IN
PHILADELPHIA

1000
900

BANKS IN TOWNS OF
" I^OOO OR MORE OUTSIDE
OF PHILADELPHIA

800
700

BANKS IN TOWNS
UNDER 15,000 POPULATION

600
500

1929




930
14

931

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia
bank suspensions during the year, the influence of these was offset
largely by the absorption of nonmember banks by member banks.
The figures reveal a large decline in indebtedness to the banks,
a tendency which was rather general throughout the year and
which was one of the factors explaining the reduction in deposits.
No doubt the decrease in loans was due in large part to diminished
industrial activity and to lower prices for commodities and securities which lessened the amount of bank loans required to finance
business transactions. In so far as the reduction in deposits was
due to currency withdrawals, this reduction in loaning power may
have caused the banks to restrict credits; this may have been supplemented by the desire to attain a more liquid position in preparation for possible additional withdrawals.

MEMBER BANK LOANS AND INVESTMENTS
PHILADELPHIA FEDERAL RESERVE DISTRICT

MILLIONS

S

1800
1700
r

><^LOANS T
O
CUSTOMERS

^"^

1600
1500
1

"""

1200
INVESTMENTS AND
OPEN MARKET LOANS

MOO

1000
900

•/

\

r^—.

800 k/v-

1929

1930

1931

The liquidity of the member banks as a whole was increased
by the accumulation of United States securities, which are acceptable as collateral for borrowings from the Federal Reserve Bank.
Although holdings of other securities and loans to the open market
decreased in the year, the proportion of total investments and open
market loans to member bank credit increased from 37 per cent at
the end of 1930 to 41 per cent on December 31, 1931.




15

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia
Federal Reserve Bank

Up to September the banks had little occasion to borrow from
the reserve bank as they adjusted fluctuations in their reserves
largely by changes in investments, open market loans, or balances
with other banks. From 26 millions at the beginning of the
year, bills discounted by this bank declined slowly. After early
March bills discounted did not, even for a single day, rise above
25 millions until September, although there was an unusual
demand for currency in May. The call for currency during
September and October, incident to disturbed banking conditions around Scranton and Philadelphia, was exceedingly strong;
in fact, in the period from September 2 to November 12 currency payments to the banks exceeded receipts from them by
130 millions, and in one week alone, the first in October, the excess
was nearly 50 millions. Although the banks met this demand in
part by the sale of investments, they also borrowed heavily from
the reserve bank; bills discounted rose from 18 millions on September 2 to 118 millions on November 12. The demand on us for
currency over the balance of the year did not come up to usual
seasonal expectations, but borrowings from the reserve bank remained in excess of 100 millions, rising as high as 138 millions at
a time when the government was withdrawing large sums from
depositories. At the end of the year rediscounts for member banks
amounted to 116 millions.
(000,000's omitted)

Bills
discounted

Bills
bought

U. S.
securities

$42
75
89
29
42

$18
25
13
4
5

$29
26
20
49
53

I 90
126
123
83
102

28
27
24
21
16
18
19
16
18
32
89
108
117

3
4
3
1
#
#
#
3
8
15
13
7
5

52
51
51
50
49
49
49
54
55
55
57
58
58

83
82
78
72
65
67

Other
securities'1

Annual averages:
1927
1928
1929
1930
1931

Monthly averages:
1930—Dec
1931—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

Including foreign loans on gold.




Less than $1,000,000.
16

Totals

69
74

82
103
164
181
187

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

CURRENCY DEMAND
FEDERAL RESERVE BANK OF PHILADELPHIA
MILLIONS

+ 125 + 100
+ 75 -

-

+ 50

y J

+ 25 -

i

0
-25

-

-50
-75 MARCH 31,1927=0

-100

1929

1930

193

The bank's holdings of purchased bills decreased from 3^2
millions at the end of 1930 to an average of little more than 100
thousand dollars in April, May and June; they increased to more
than 17 millions in the middle of September and declined again
to 4 millions at the close of the year. Purchases of bills within
the district were small, and the changes in the total holdings
represented almost entirely fluctuations in this bank's participation in foreign and domestic bills held for the account of the federal
reserve system. Domestic bills increased from nothing in the
middle of September to 8 millions in October and then declined to
less than 1 million.
On January 1 the bank had 3!/2 millions of foreign bills, but
practically all of these were paid off by the spring. Subsequent
extensions of credits to foreign central banks raised our holdings of
such bills to 17 millions about the middle of September. Reductions
followed from that time, so that by the close of the year the
holdings of them were little over 3 millions.
Changes in the bank's holdings of United States securities
reflected principally variations in its participation in system hold-




17

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

ings of such securities. Other securities, however, were made up
for the most part of municipal warrants and Federal Intermediate
Credit Bank debentures acquired from local banks.
The reserve ratio for the year—78.8 per cent—was little below
that maintained in 1930, reflecting high ratios in the first nine
months, and an average of 64.5 per cent for the last three months,
and a ratio of 60 per cent at the end of the year. Cash reserves
were larger than in 1930, but the deposit liability was greater and
there was a large increase in federal reserve note circulation.
Although the annual average of member banks' reserve deposits was 141 millions, the December average was only 124 millions as compared with 141 millions a year earlier, reflecting the
large decrease in deposits of member banks. The annual averages
in the accompanying table show that the spread between member
banks' reserve deposits and total deposits was greater in 1931 than
in any of the three preceding years. This was due to the larger
volume of foreign bank deposits held during the last half of the
year.
(000,000's omitted
in dollar figures)

Federal reserve
Cash
note
reserves
circulation

Member bank
reserve
deposits

Total
deposits

$136

$139

$132

$172

134
138
141

137
140
150

147
135
175

192
225
257

63.6%
67.6"
81.7'
78.8'

141
144
141
146
151
147
145
146
144
140
131
128
124

143
147
143
150
155
149
151
152
161
158
150
145
139

138
14S
141
139
139
144
148
148
150
161
238
274
276

231
244
239
251
262
259
263
260
262
249
256
271
261

82.2'
83.2'
84.3'
86.9'
89.2'
88.4'
88.3'
86.6'
84.3'
78.1 '
66.0'
64.5'
62.8'

Annual figures:
1928
1929
1930
1931

Monthly figures:
1930—Dec
1931—Jan
Feb
Mar.
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

Reserve
ratio

There was a decline from March to October in the federal
reserve system's contingent liability on bills purchased for foreign
correspondents. This was particularly marked in the third quarter
of the year and was roughly paralleled by an increase in balances
maintained with the system by foreign banks. This bank was
a party to these operations, and its statements show a decline in




18

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

RESERVE POSITION
FEDERAL RESERVE

BANK OF PHILADELPHIA

70
65
60
55
50

928

1929

1930

1931

MILLIONS

260

140
220

CASH RESERVES
\




k

FED. RES. NOTE
CIRCULATION

1931
19

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

the contingent liability on such bills from 34 millions on July 1
to 4 millions on October 14, while its share of foreign bank deposits
increased from 3 to 22 millions. The trends then were reversed
and by the end of the year the liability on bills had increased to
25 millions and foreign bank deposits had declined to V/% millions.
Money rates

During the first half of 1931 there was little change in Philadelphia in the rates charged customers on prime commercial loans,
although rates for commercial paper and bankers' bills declined
about one per cent in the open market. The low demand for reserve
bank credit in this district, the very high reserve ratio of the bank,
and the lower market rates were the principal factors which led
the directors of this bank to reduce the discount rate from 3 ^
to 3 per cent, effective May 7.
Over most of the summer, money rates changed little and there
was a continued absence of demand for credit from this bank, but
in the early fall, there was a rapid rise in borrowings from the
reserve bank and, following the departure of England from the gold

MONEY RATES-PHILADELPHIA
PERCENT

6
RATES ON
PRIME COMMERCIAL LOANS
TO CUSTOMERS

5/2

5
4/2

4
FEDERAL RESERVE BANK
DISCOUNT RATE

3/2

L~

3

928




1929

1930
20

1931

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

standard in September, the country lost more gold than it had
gained in earlier months of the year. Discount rates of most of
the reserve banks were raised and open market rates rose to the
highest point since early 1930. Rates on commercial loans increased
locally and this bank raised its discount rate from 3 to 3 ^ per
cent, effective October 22. In the last two months of the year
changes in money rates were comparatively small.
Action was taken by the Philadelphia Clearing House Association to regulate maximum rates of interest to be paid on deposits
by its member banks. The first action was effective February 1
and two revisions were made subsequently.
Feb. 1

Apr. 10

June 1

Maximum rates on—
1. Demand deposits of other banks, trust com-

panies and private bankers in the United States
or Canada, except mutual savings banks
2. Demand deposits of mutual savings banks
3. Demand deposits or certificates of deposit
payable on less than 30 days' notice from individuals, firms or corporations
4. Time deposits and certificates of deposit payable on 30 days' notice or more

2 %
234"

2

134%

1 %
134"

2

"

134"

l

"

3

"

234"

2

"

"

No maximum was set for savings deposits, but under the rules,
time accounts of firms, corporations or co-partnerships can not be
regarded as savings deposits.
Federal reserve notes
The exceedingly strong demand for currency which prevailed
over part of 1931 was met by issues of federal reserve notes, as
the following table shows:
1931

Totals

1929

1928

$147
51
60
30

$192
39
53
25

$146
31
53
25

$336

New' currency paid out by bank:
Federal reserve notes...
Gold certificates
Silver certificates..
United States notes

1930

$235
22
53
26

(000,000's omitted)

$288

$309

$255

Federal reserve notes in actual circulation increased from 153
to 269 millions during the year. Nearly 233 millions of new notes
were issued to the bank, more than in any other year since the




21

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

bank started operations; of this total, 71 millions, or 30 per cent,
was in notes of the $100 denomination or higher, as compared with
11 per cent in 1930 and 7 per cent in 1929. Collateral requirements
against note issues to the bank were supplied in part by the deposit
of gold, but for the most part by discounted bills. Comparative
year-end statements of notes issued follow:
December 31

(000's omitted)

1931

$181,135

$192,585

$38,700
121,300
22,444

$40,200
96,400
56,415

$296,949

Total collateral held

$236,885
44,300

$54,700
125,300
116,949

Collateral held:
Gold and gold certificates on hand
Gold fund—Federal Reserve Board
Discounted and purchased bills

$242,755
61,620

$295,067

Notes issued to bank (outstanding)

1929

$388,667
93,600

Notes received from comptroller
Notes on hand

1930

$182,414

$193,015

More than 16 millions of federal reserve notes of the old, larger
size issued by this bank still was outstanding at the end of 1931,
a decline of less than 7 millions in the year. During each of the
last five months, less than half a million dollars of these notes was
presented for redemption.
Departmental operations
Comparative figures showing the activity of a number of the
principal departments of the bank are given in the table following:
(000's omitted)

1931

1930

1929

1928

Number of pieces or transactions handled:
51
41
60
68
Notes and bills discounted
199,377 211,091 215,030 214,881
Notes (currency) counted
308,220 334,963 331,780 328,886
Coins counted
Ordinary checks handled (including return
70,134 72,846 70,234 67,522
items)
1,952
2,130
1,929
1,963
U. S. government checks handled
Items payable at a future date (collection
items):
1,487
1,680
2,545
1,361
United States coupons paid
570
607
548
552
All other items
122
126
123
117
Transfers of funds
U. S. securities issued, redeemed, or ex80
61
112
555
changed




22

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

As a result of depressed business conditions and lower prices
of commodities and securities, it was to be expected that the operations of some of the departments would show a decline in number
of pieces handled and larger decreases in dollar amounts. Thus
the number of transit checks, collections (other than United States
coupons), and transfers of funds handled each show a decline of
about 4 per cent from 1930 in number of items, but the falling off
in dollars varied from 16 to 20 per cent. Discount operations and
fiscal agency activities increased in 1931.
Among the special facilities for expediting the collection of
checks are the wire settlement of clearing house balances, county
clearings systems, and direct sending of transit items. At the end
of 1931, twelve cities were availing themselves of our facilities for
settling clearing house balances by wire; settlements handled in
this manner totaled $172,400,000 as compared with $166,000,000
in 1930. Eight county clearings systems were in operation; 102
banks participated and $48,300,000 of items were interchanged,
balances being settled through the reserve bank, as against $40,600,000 in 1930. Direct sendings of checks to other reserve banks
by our member banks show a decline from $7,700,000,000 to $5,100,000,000, reflecting lower prices and a decrease in business operations.
Member banks have made greater use of our facilities for keeping securities in custody; an average balance of $301,000,000 was
held in 1931, as compared with $260,000,000 in 1930. Securities
and cash held for our own account and for the Treasurer of the
United States averaged $454,000,000 daily in 1931.
Six issues of United States certificates of indebtedness matured
in 1931; original allottments to the district had totaled $140,700,000 and the amount redeemed here was $45,200,000 or 32 per cent.
New issues during the year included six series of certificates, three
of Treasury bonds and one of Treasury notes; total subscriptions
were $1,120,200,000, and allottments to the district, $323,900,000.




23

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

Personnel
Board of Directors
Residence

Name

Class

Group 1 Joseph Wayne, Jr., President,
Philadelphia National Bank,
Philadelphia, Pa.
Group 2 George W. Reily, President,
Harrisburg National Bank,
A.Harrisburg, Pa.
Group 3 John C. Cosgrove, Director,
First National Bank,
Hastings, Pa.

Term expires

Philadelphia, Pa. December 31, 1932
Harrisburg, Pa.

December 31, 1933

Johnstown, Pa.

December 31, 1931

C. Frederick C. Stout, Member,
John R. Evans & Company,
Ardmore, Pa.
December 31, 1931
Philadelphia, Pa.
Group 2 Arthur W. Sewall, President,
15.
General Asphalt Company,
Philadelphia, Pa. December 31, 1932
Philadelphia, Pa.
Group 3 J. Carl De La Cour, Vice-President,
Wm. S. Scull Company,
Riverton, N. J.
December 31, 1933
Camden, N. J.
Group 1

f

Richard L. Austin,
Philadelphia, Pa. December 31, 1932
Chairman of the Board
Alba B. Johnson, Deputy ChairRosemont, Pa.
December 31, 1933
man of the Board
Bridgeville, Del. December 31, 1931
Harry L. Cannon

The regular elections held in the fall of 1931 resulted in the
re-election of C. Frederick C. Stout as a class B director and John
C. Cosgrove as a class A director for terms of three years each.
In November, Arthur C. Dorrance, who represented the group 3
banks as a class B director, tendered his resignation, much to the
regret of the board of directors. At a special election held in December, J. Carl De La Cour, vice president of the Wm. S. Scull Company
of Camden, New Jersey, was chosen to complete the unexpired
term, which runs to December 31, 1933. Harry L. Cannon was
reappointed as a class C director by the Federal Reserve Board for
a term of three years from January 1, 1932.
Appointments by the Federal Reserve Board for the year 1931
included Richard L. Austin as chairman of the board and federal
reserve agent, Alba B. Johnson as deputy chairman of the board,
and Arthur E. Post and Ernest C. Hill as assistant federal reserve
agents.
Howard A. Loeb, chairman of the board of the Tradesmens
National Bank and Trust Company of Philadelphia, represented this
district on the Federal Advisory Council during 1931. The officers




24

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

of the bank, appointed by the directors, were: governor—George
W. Norris; deputy governor—William H. Hutt; cashier and secretary—C. A. Mcllhenny; assistant cashiers—W. J. Davis, J. M. Toy,
R. M. Miller, Jr., S. R. Earl; comptroller—William G. McCreedy.
The number of employees other than officers was 685 at the end of
1930 and 686 on December 31, 1931.

Banks of the district
Including one institution that reopened a few days after suspending operations, there were 101 bank suspensions in this district
during 1931, of which 13 were in New Jersey and 88 in Pennsylvania. This compares with 10 in 1930 and 3 in 1929. Although
more than three-fifths of the banks in the district are members of
the federal reserve system, only 30 per cent of the banks that closed
in 1931 were member banks. The proportion of deposits represented by closed banks was about 4 per cent of the total of all
banks in operation at the beginning of the year.
These failures may be considered in large part a result of conditions which were an aftermath of the war. During the intense
business activity and speculation of all kinds, which followed the
war, and which culminated in 1929, many extravagances developed
for which the nation has been paying during the last two years.
Productive capacity was raised to extraordinary levels, building
was carried on too freely, optimistic views as to earnings of corporations carried stock prices to unprecedented figures.
The readjustment which has been in progress scarcely could
be expected to leave the banks unscathed. Sharp declines in commodity and stock prices and in real estate values affected the
liquidity of many loans. Bond investments were affected by decreased earning power of issuing corporations, foreign difficulties,
and forced liquidation by owners of securities. Despite these
circumstances, there is reason to believe that many banks which
have suspended could have survived had it not been for the lack
of confidence which manifested itself in extraordinary withdrawals
of deposits.
Excessive demands of frightened or disturbed depositors are
difficult to control and may quickly result in suspension of a bank.
This probably has been the cause of most failures in this district in
the past year. Under present conditions the closing of a bank by
no means is proof of incompetent management.
Beset by loan and investment problems in an aggravated form
25



Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

and by other conditions incident to the public's lack of confidence,
many bankers turned to the reserve bank for consultation. Nearly
2,000 visits were received from bank officers during 1931 and the
members of the bank relations department made 1,800 visits to
banks of the district. These visits and the activities of the bank
examination department to a greater extent than ever before reflected the bankers' desire for advice in the handling of situations
which had arisen outside of their usual operations.
The National Credit Corporation

In October the National Credit Corporation was organized by
bankers "for the purpose of aiding and assisting banks throughout
the United States to utilize their resources and credit so as to
further the stabilization of financial and economic conditions and
to enable them better to serve their respective communities."
Through this corporation it was proposed that funds should be
made available to solvent, going banks whose assets were not entirely liquid under existing conditions.
The corporation is administered by a board of twelve directors,
one from each federal reserve district, and each director was called
upon to organize within his district associations of banks which had
subscribed to gold notes issued by the corporation; through these
associations, the funds obtained from the subscriptions were to be
loaned to banks which had applied for advances.
Livingston E. Jones, president of the First National Bank of
Philadelphia, was appointed the director from this district. Seven
associations were organized within the Third Federal Reserve District, taking in all of the district but the western tier of counties.
The areas covered by the associations are outlined below:
No. 1: Philadelphia, Chester, Delaware, Bucks and Montgomery counties
in Pennsylvania. Mr. Howard A. Loeb, Chairman of the Board,
Tradesmens National Bank and Trust Co., Philadelphia, Chairman.
No. 2: State of Delaware. Mr. A. F. Crichton, President, Union National
Bank, Wilmington, Delaware, Chairman.
No. 3: Berks and Schuylkill counties in Pennsylvania. Mr. R. S. Meek,
President, Farmers National Bank and Trust Company, Reading,
Pa., Chairman.
No. 4: Lehigh, Northampton, Carbon, Monroe, Pike, Wayne, Lackawanna, Luzerne, Sullivan, Wyoming, Susquehanna and Bradford
counties in Pennsylvania. Mr. D. R. Atherton, Executive Vice
President, First National Bank, Scranton, Pa., Chairman.




26

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia
No. 5: Lancaster, York, Adams, Franklin, Fulton, Cumberland, Dauphin,
Lebanon, Perry, Juniata, and Mifflin counties in Pennsylvania.
Mr. George Reily, President, Harrisburg National Bank, Harrisburg, Pa., Chairman.
No. 6: Union, Snyder, Northumberland, Montour, Columbia, Lycoming,
Clinton, Potter, and Tioga counties in Pennsylvania. Mr. James
B. Graham, President, Lycoming Trust Co., Williamsport, Pa.,
Chairman.
No. 7: That part of New Jersey in the Third Federal Reserve District.
Mr. F. Morse Archer, President, First Camden National Bank &
Trust Co., Camden, N. J., Chairman.

Loans made up to the end of the year within the district
amounted to $4,335,750, extended to 36 banks.
Membership in the system

In addition to the bank suspensions, the number of member
banks in this district also was reduced by consolidations and absorptions; one new national bank was organized. Total membership declined from 753 to 715 in the course of the year, as shown
in the table:
National
banks

Losses during 1931:
Suspensions
Consolidation or absorption by national banks.
Consolidation or absorption by state member
banks
Absorption by non-member banks
Conversion into national bank
Active membership, December 31, 1931

Totals

669

84

753

1
1
1

0
0
0

1
1
1

3

Active membership, December 31, 1930
Gains in 1931:
Primary organization
Suspended bank reopened
Conversion from state member bank

State
bank
members

0

3

23
5

7
0

30
5

1
1
0

2
1
1

3
2
1

30
642

11
73

41
715

Consolidations or absorptions of nonmember banks, whether
for the purpose of continued operation or for liquidation, were
numerous and the loans and investments so acquired by the member banks practically equalled the amounts lost to the system
through suspensions or withdrawal from membership as a result




27

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

of absorption by nonmembers. On September 29 the loans and
investments of the member banks were $2,740,000,000, or 66 per
cent of all banks in the district, a higher percentage than a year
earlier:
Loans and investments*

Per cent of

Member banks All banks

total

$2,755
2,687
2,671
2,713
2,737
2,733
2,813
2,788
2,740

1929 -Oct. 4.
Dec. 31.
1930—Mar. 27.
June 30.
Sept. 24.
Dec. 31.
1931—Mar. 25.
June 30.
Sept, 29.

$4,505
4,395
4,353
4,420
4,409
4,321
4,385
4,339
4,137

61.2%
61.1 '
61.4'
61.4'
62.1 '
63.2'
64.1 '
64.3'
66.2 '

* 000,000's omitted.

Fiduciary powers

During 1931, three national banks were granted full fiduciary
powers, but eleven banks, of which seven had full and four partial powers, were removed from the list as a result of consolidation,
absorption by other banks, or suspension of operations. At the
end of 1931, 289 national banks had such powers, 228 being in
Pennsylvania, 51 in New Jersey and 10 in Delaware. Annual
figures follow:
Number of banks granted

National banks having fiduciary powers

Full powers
224
254
262
268
264

December 31, 1927.
31, 1928.
31,1929.
31,1930.
31,1931.

Partial powers
36
32
30
29
25

Totals
260
286
292
297
289

Member bank earnings and expenses

Net profits of member banks in the year ended June 30, 1931,
were materially smaller than in the preceding year, owing in part
to lower rates of return on loans and investments, but more largely
to greater amounts charged off as losses on loans and investments.
Dividend payments exceeded net profits in 1931. In both years
interest paid on time deposits averaged about 3*4 per cent of




28

Seventeenth A?inual Report, Federal Reserve Bank of Philadelphia

such deposits and aggregated more than 20 per cent of the gross
earnings.
Years ended June 30
1931

1930

Ratios of average loans
and investments
Earnings:
Interest, discount, and dividends received
Trust department earnings
Profit on securities sold
Other earnings

5.26%
.32 "
.23"
.28"

5.59%
.31 "
.26"
.34"

Gross earnings

6.09%

6.50%

Expenses:
Salaries and wages paid
Interest paid on borrowed money
Interest paid on deposits
Taxes
Other expenses

1.15%
.06"
2.15"
.29"
.63 "

1.16%
.20"
1.98"
.31 "
.67"

Total expenses

4.28%

4.32%

Net earnings
Recoveries on charged-off assets

1.81%
.06"

2.18%
.07 "

Net earnings and recoveries
Losses and depreciation charged off

1.87%
1.30"

2.25%
.58"

Net addition to profits
Dividends paid

•57%
1.19"

1.67%
1.26 "

Banking and business statistics
In the interest of banking, credit and business administration,
the Department of Research and Statistics has been making
numerous improvements in the collection and analysis of financial,
trade and industrial information for this district. Many new sets
of indicators bearing on production and distribution of commodities
have been added so that at present monthly and weekly series of
figures covering nearly all important phases of business and banking activity are maintained in our files. This accumulation of important statistical data has been made possible through the continued cooperation of business men as well as private and official
agencies.
The demand for information on business conditions, particularly by geographic divisions, has been heavy, a fact which is characteristic of depression periods. This demand has been satisfied




29

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

partly through advance monthly reports showing changes in trade
and industrial activity and partly through the monthly bulletin,
The Business Review. The advance information is issued as soon
as the figures are assembled primarily for the benefit of the cooperating concerns, which send reports to us, while the regular
bulletin is made available to the public in general at a somewhat
later date. The aim of these reports is to give only a factual statement of business conditions in this district each month so that the
reader can draw his own conclusions and apply them to his own
line of activity. Weekly reports and analyses of business and banking conditions also have been prepared for the directors and officers
of this bank, providing them with the necessary information on
prevailing conditions in commerce, industry and agriculture.
Statistical data have been furnished weekly and monthly to
the Federal Reserve Board for its administrative and research
purposes and special studies have been made both for the benefit
of the Board as well as this bank.
For many years this bank has been collecting figures bearing
on changes and trends in the production and distribution of goods
but until recently these statistics had not been so unified as to
show current changes in the general activity of major industries.
It has been thus extremely difficult to get even a rough measurement of general business activity because of the multitude of details which often display marked divergencies in their trend and
seasonal variations. This is especially true of this district because
of its unusually wide industrial diversification.
This problem has been solved partly by the construction of a
new index of manufacturing, which is the most important industry
in this district. This new index combines 45 sets of figures and
provides a monthly measurement of changes in the rate and volume
of output in the aggregate as well as by individual lines. The
figures used in the index represent two-thirds of all manufactures
of this district and so are considered as representative of current
conditions.
As a supplement to production data, the collection of factory
employment and payroll statistics has been expanded through the
cooperation of the Pennsylvania Department of Labor and Industry
and the United States Bureau of Labor Statistics. Indexes showing
changes in the number of workers and the volume of payrolls have
been made available to the public every month. The significance
of these figures is found in the fact that they reflect not only
variations in factory operation, but they are also reflective of pur-




30

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia
The economic importance of the Philadelphia Federal
Reserve District

Per cent this
district of
United States

Land area and population:
Area—square miles
1.2%
Population, total
6.2 "
Population, gainfully employed
6.2 "
Banking, etc.:
Resources of national and state banking institutions
7.6"
Persons engaged in—
5.8 "
Banking and brokerage
5.7"
Insurance and real estate
Manufacturing:
Wage earners
9.5 "
Wages
9.2 "
Cost of materials
7.7 "
Value of products
8.1 "
Value added by manufacture
8.6"
Extraction of minerals:
Anthracite coal
100.0 "
Bituminous coal
4.3"
Persons engaged in—coal mines
27.7 "
Persons engaged in—others
4.2 "
Building:
Contracts awarded*
7.7"
Persons engaged in building industry
7.5"
6.0"
Families
Agriculture:
Farm population (rural and urban)
2.2 "
2.2"
Number of farms
1.2"
Land area in farms
1.3"
Value of land in farms
4.3"
Value of farm building and implements
2.6"
Cash income
Volume of trade:
4.6"
Retail sales (60 cities)
4.8"
Wholesale sales
6.4"
Automobile sales (registrations of new passenger automobiles)
6.5"
Persons engaged in retail and wholesale trades, except automobiles . . .
6.7 "
Port of Philadelphia—foreign and domestic trade**
Transportation and communication:
Persons engaged in
6.6"
7.5"
Electric power output
* 37 states in the United State?.
** 60 ports in the United States.

chasing power of the rank and file of wage earners. This information is used by both producers and distributors of goods, and it
is also of importance to this bank as it indicates the demand for
currency for payroll purposes.
New indexes measuring construction and coal mining have been
prepared, superseding the old figures which did not take account of
the number of working days or seasonal variations. Indexes of
employment and payrolls in these industries also are available and
supplement the production figures as in the case of manufacturing.
Data on distribution, accumulated by this bank over the past




31

Seventeenth Annual Report, Federal Reserve Bank of Philadelphia

decade, have been made more valuable than ever before by their
use in the construction of new indexes of mercantile trade and shipments of commodities. These indexes make full allowance for such
differences as the number of business days in the month, seasonal
changes, and a shift in holidays from one year to another. Indexes
are now available for retail and wholesale sales, stocks, and collections. As in the case of manufacturing, these indexes measure
changes by lines of business and for each trade as a whole. The
accurate combination of various related lines into composite indexes
has been made possible through the federal census of distribution
which provides for the first time a means for determining the relative importance of one line of business to another in retail and
wholesale trade.
Virtually all trade and industrial indexes are now available in
two forms—the one without taking account of seasonal changes,
the other adjusted for seasonal, or month-to-month, fluctuations
which arise from an uneven distribution of activity through the
year. An adjusted index reflects more accurately than an unadjusted one, the current volume of business, as it shows whether
there is any increase or decrease beyond the usual seasonal changes.
Indexes for the principal lines of trade and industry from 1923
through 1931 are given at the end of this report.




Seventeenth Annual Report, Federal Reserve Bank of Philadelphia.

Indexes of business conditions
Philadelphia Federal Reserve District
Adjusted for seasonal variation
(Monthly index numbers; 1923-1925 average=100)
Passenger
Freight WholeFactory Building
Coal mining
car
Retail automobile
produc- contract
registraS3,16
loadawards
sales
tive
tions
(value) Total Anthra- Bitumi- ings
sales
(new)
activity
nous
cite
1923
Jan
Feb.. . .
Mar.. . .
April. . .
May. . .
June...
July....
Aug.. . .
Sept... .
Oct
Nov.. . .
Dec

96
95
99
103
108
110
108
104
105
102
103
101

99
98
94
87
74
65
55
50
60
70
78
83

125
121
131
125
125
123
125
126
56
112
109
113

128
125
134
123
122
120
121
124
45
113
112
117

108
99
116
132
141
144
146
135
124
103
93
94

104
101
105
107
107
111
109
105
100
99
99
100

105
104
103
109
106
107
108
105
105
103
101
95

94
94
105
94
102
104
101
96
100
99
101
98

187
77
91
72
82
95
103
91
120
106
115
61

Annual

102*

75

116

115

117

104

104*

99*

97

1924
Jan
Feb
Mar... .
April. . .
May. . .
June...
July....
Aug.. . .
Sept... .
Oct
Nov.. . .
Dec

100
99
99
97
95
91
89
90
92
93
94
97

75
77
87
96
107
105
104
109
134
150
134
101

113
114
112
100
105
106
104
99
108
98
98
105

116
116
115
104
109
111
109
103
112
100
101
108

94
99
92
79
79
80
76
75
83
84
79
88

99
103
101
94
91
91
90
92
95
97
98
102

105
103
102
100
96
97
99
97
99
99
96
100

102
104
99
106
99
100
99
97
97
94
100
98

117
124
108
104
108
97
96
107
85
84
87
53

95*

107

105

108

89

96

99*

99*

99

Feb.. . .
Mar.. . .
April.. .
May. . .
June...
July....
Aug.. . .
Sept... .
Oct
Nov.. . .
Dec

99
99
99
100
104
104
105
103
104
106
105
105

80
110
119
123
114
118
123
124
122
124
122
125

108
111
100
109
113
105
115
126
15
15
17
18

110
114
103
113
118
108
119
132
1
1
2
3

96
90
86
86
85
87
91
95
96
99
104
106

101
103
100
100
98
99
100
102
97
98
103
105

99
100
98
98
97
98
97
97
95
97
97
96

98
103
101
102
99
100
97
104
102
108
102
102

67
70
97
98
106
103
110
101
92
122
131
150

Annual

103*

118

79

77

94

100

97*

102*

104

Annual
1925
Jan

Monthly average.




33

Ser enteenth Annual R epol't, F ecleral R esel've Bank of Philaclelphia
Indexes of business cond itions-Continued

Adjusted for seasonal yariation
(Monthly index numbers; 1923-1925 average=100)
Factory Building
produc- contract
tive
awards
activity (value)
J an . ....
Feb .. ..
Ma r ....
April. ..
May ...
June ...
Jul y ....
Aug .. . .
Sept....
Oct .. .. .
Nov . ...
Dec . . ..

TotaII An~hraCIte

- - - - - - - --

1926
106
106
106
106
106
107
107
107
110
110
110
109

Passenger
Freight
Whole- R etail automobile
car
sale
sales registraBit umi- loadsales
tions
ings
nous
(new)

Coal mining

- -- - - - - - - - -

128
136
130
126
128
136
145
146
143
139
139
167

17
3
105
101
108
95
150
44
34
109
103
96
101
89
121
125
95
103
101
104
109
121
125
98
102
99
100
124
115
ll8
97
105
99
108
139
122
126
100
102
100
100
117
121
119
105
106
97
109
123
117
119
104
105
97
104
122
104
124
127
108
97
106
128
118
120
108
III
97
109
122
110
109
11 8
113
104
99
116
115
115
116
III
99
107
129
- - - -- - - - - - - - - Annual 108*
137
104
104
105
98* 105*
106
123
= = = = - - - - - - - - - - - - -- - - - = ===
1927
Ja n ... . . 106
151
103
103
103
104
95
106
122
F eb .... 106
169
96
95
106
108
93
105
114
Mar. . . . 106
160
92
88
115
110
94
98
115
April. .. 106
158
107
105
91
103
93
106
107
Mav ... 106
161
112
116
91
101
94
100
108
Jun'e ... 104
156
102
103
92
103
100
95
101
July .... 104
183
76
75
84
100
93
104
100
Aug ... . 103
162
104
107
101
88
102
96
102
Sept.... 103
161
98
100
89
101
94
96
94
Oct.. ... 100
143
103
100
82
98
93
97
100
Nov .... 100
144
101
97
75
96
100
91
96
D ec . .. . 100
166
92
90
79
94
92
102
78
- - - - - - - - - - - -- - - - - - - - - - - - - ----Annual 104*
160
98
99
91
102
94* 102*
104
= = = = = = - - - -- - - - - - - - - - - - - - = = =
1928
J an ..... 100
164
88
88
99
91
83
98
91
Feb .. . . 102
162
85
86
83
98
94
98
102
Mar . ... 100
163
80
79
85
98
92
104
100
Apri l. . .
98
165
104
106
94
100
92
101
95
May ...
99
173
108
III
92
99
95
96
103
June . . . 102
169
77
75
91
101
93
101
110
July ... . 101
160
71
67
94
100
94
103
109
Aug . ... 101
157
93
93
90
103
94
112
95
Sept . ... 104
161
93
94
92
103
93
108
121
Oct... . . 105
164
III
114
96
107
94
118
99
ov . .. . 106
165
106
108
93
107
127
95
100
D ec . . . . 105
152
97
98
90
105
101
152
106
- -- - -- - -- - - ---- --Annual 102*
165
93
93
102
90
95* 100*
111

* Monthly average




34

Sevente enth Annual R eport, F ederal R eserv e Bank of Philad elphia
Indexes of business conditions-Continued

Adjusted for seasonal 'IIariation
(Monthly index numbers; 1923-1925 average=100)
Passenger
Freight WholeCoal mining
Factory Building
car
Retail automobi le
produc- contract
sale
registraloadtive
awards
tions
sales sales
activity (value) Ttl Anthra- Bitumi- ings
o a Cite
nous
(new)
------ - ---1929
Jan . ....
Feb .. . .
Mar. ...
April ..
May .
Jun e.
July ....
Aug . ...
Sept ... .
Oct .....
Nov . . . .
Dec ....

104
107
107
III
113
113
114
115
114
112
108
106

152
134
156
147
150
132
126
124
119
128
109
153

Annual

110*

132

1930
Jan .... .
Feb .. ..
Mar ....
April . .
May ...
June.
July . ...
Aug .. . .
Sept . . ..
Oct . ....
Nov ....
Dec... .

105
104
103
103
100
95
93
92
95
93
89
82

135
132
98
96
134
125
133
80
72
68
74
75

Annual

96*

108

1931
Jan . .. ..
Feb .. ..
Mar . . ..
April. ..
May ..
June . . .
July ....
Aug ... .
Sept ... .
Oct .....
Nov ....
Dec . • ..

80
81
81
85
81
76
75
76
75
73
70
69

73

59
60
60
60
77
70
70
59
62
58
39

Annual

77*

62

91
104
100
99
109
107
94
97
100
107
107
105
109
95
103
93
83
75
106
95
91
92
99
93
106
107
93
95
84
90
106
74
109
109
99
82
102
108
100
78
70
109
101
103
104
82
79
108
101
102
108
106
103
103
102
98
106
103
111
113
92
102
95
99
89
90
92
118
95
100
98
114
--- ---------- -98* 101*
98
92
106
93
- - - - -- - - - - - 82
98
95
81
98
93
80
94
89
95
96
88
73
92
93
90
81
92
93
86
78
90
85
82
90
82
83
89
88
83
83
80
86
82
84
85
106
78
78
80
83
75
78
78
93
------ - - - -86*
87
84
90
86
------------

104
98
72
76
84
81
84
88
81
103
83
91

106
102
70

90
87
72
83

94
90
73

70
70
70

85

72

72

71
73

67
60
62
66
88
65
69

77
76
80
80
80
76
79

72
66
74
58
62
65
72
69
66
63
64
61
92
59
66
66
54
72
66
----------73*
71
73
74
67

* Monthly average.




79
78
77
77
72
70
69
70
66
66
64
64

35

130
144
134
131
125
131
131
134
132
125
124
117
131

96
98
91
98
94
91
87
90
89
92
88
85

116
127
118
101
102
101
87
93
89
84
74
85

91*

99

85
84
87
87
86
85
73
77
77
75
69
72

89
87
79
83
87
77

68
72
100

79*

80

73

75
73

Seventeenth Anmwl R eport, F ederal R eserve B ank of Philadelphia

Indexes of business conditions
Philadelphia Federal Reserve District
Without adjustment for seasonal variation
(Monthly index numbers; 1923-1925 average=100)
Passenger
Coal mining
Freight WholeFactory Bui lding
car
Retai l automobile
produc- contract
sale
registraloadtive
awards
sales sales
t ions
activity (value) T otal An~hra- Bitumi- ings
cite
no us
(new)
-------------1923
Jan .. . ..
Feb ..
Mar. .
Ap ril. ..
May. · .
June ...
July ....
Aug ..
Sept ..
Oct .. . . .
Nov . .. .
Dec ....

96
98
102
103
107
106
101
101
103
105
104
103

80
93
110
106
84
67

Annual

102*

75

1924
Jan .. ..
Feb . ..
Mar ..
April . ..
May . ..
June.
July. ...
Aug ...
Sept. . · .
Oct ..
Nov .. · .
Dec ....

100
101
101
97
94
89
85
88
91
97
96
99

61
73
102
117
122
108
102
11 3
143
150
120

Annual

95*

54

52
63
70
70
58

71

107

1925
Jan ... . .
Feb .. ..
Mar. · .
April. · .
May ...
June .. .
July ....
Aug ....
Sept ....
Oct . . .
Nov . . ..
Dec ....

99
101
102
100
103
102
100
101
103
110
107
106

65
105
139
150
130
123
120
127
130
124
109
89

Annual

103*

118

124
118
132
120
123
124
124
123
57
119
113
112

124
120
134
120
122
124
123
122
45
120
115
114

120

94
93
97
95
11 8
100
101
102
121
104
127
111
102
126
113
101
113
96
129
127
III
97
127
111
11 8
110
107
117
103
100
114
99
90
106
-----------104*
116
H5
H7
104
------------

75
81
101
97
105
103
74
78
84
107
125
159

112
112
112
97
105
108
105
96
108
103
102
103

113
107
94
90
113
108
96
97
115
94
96
99
91
101
71
94
110
71
95
93
114
71
92
93
III
67
93
88
101
70
97
90
112
no
106
84
105
104
113
90
104
87
99
109
105
92
92
112
----------105
99*
89
96
108
------------

82
89
90
114
102
98
73
79
83
101
124
158

106
109
99
106
114
106
116
125
15
16
18
19

79
87
94
107
102
98

lOS

106
111
101
111
120
111
122
132
1
1
2
3

109
98
88
79
76
77
80
89
98
105
114
111

91
89
97
93
95
95
92
97
102
94
101
93
103
87
107
90
107
106
106
III
104
110
109
95
--------- --79
77
97*
94
100

* Monthly average.




36

99*

99*

101
53
95
111
118
133
11 8
100
11 4
91
85
33
97
63
85
112
162
155
136
110
118
81
72
64
29
99

84
87
11 8
126
164

36
48
101
153
152
144
126
112
88
105
97
81

102*

104

72

Se vent eenth Annual R eport, F ed eral R eserv e Ba.nk of Philad elphia
Indexes of business conditions-Continued

Without adjustment for seasonal "ariation
(Monthly index numbers; 1923-1925 average=100)
Passenger
Freight WholeCoal mining
Factory Building
Retail automobi le
car
produc- contract
sale
registraloadtive
award
tions
sales sales
activity (value) Ttl Anthra- Bitumi- ings
o a cIte
nous
(new)
--------- -- - - -----1926
Jan .....
Feb ....
Mar .. ..
April. ..
May ...
Jlme . . .
July ....
Aug .. ..
Sept .. ..
Oct .... .
Nov . . . .
Dec . .. .

105
108
109
106
105
105
103
106
111
115
112
109

104
129
152
154
146
142
142
151
148
139
123
124

Annual

108*

137

Dec .. ..

105
108
108
105
104
103
101
103
105
104
102
99

122
160
187
193
188
164
179
163
164
142
125
126

Annual

104*

160

1928
Jan . . .. .
Feb ....
Mar . . . .
April ...
May ...
June ...
July . . . .
Aug ....
Sept....
Oct ... . .
Nov ....
Dec . . ..

99
104
101
97
98
101
98
101
105
109
107
102

133
154
190
201
207
179
156
157
161
163
142
116

Annual

102*

165

1927
Jan .....
Feb ....
Mar . ...
April. ..
May . . .
June ...
July ....
Aug . ...
Sept ... .
Oct .... .
ov ... .

91
85
88
88
96
85
97
99
98
102
93
99
96
111
109
94
104
97
87
81
109
90
83
110
108
91
119
III
119
119
113
128
114
114
174
100
--- ---------- 98* 105*
105
104
104
106
- - - - -- - - - - - -

81
61
115
192
200
164
141
134
121
103
86
70

84
117
87
102
94
99
84
87
92
116
101
95
117
104
90
90
90
85
112
83
87
104
107
100
82
90
103
121
105
115
81
105
90
98
102
105
74
84
78
76
76
103
89
82
108
83
105
107
84
112
106
100
90
99
106
107
105
107
88
106
122
III
101
104
83
97
168
106
87
87
83
85
------------94* 102*
91
102
98
99
- - - - - - - - - - -- - -

66
80
123
165
156
141
114
112
89
84
67
42

19
45
119
119
117
124
118
116
124
124
115
111

119
118
97
89
87
88
92
98
106
115
129
122

3
33
123
124
121
130
122
119
127
126
112
109

79
95
85
89
92
85
90
83
87
86
76
93
86
107
86
97
83
103
90
116
103
89
76
80
86
67
83
103
88
84
108
95
106
94
115
94
108
103
116
118
102
109
108
III
121
94
95
93
- - - - - -- - - -95*
102
90
93
93

86
84
77
104
112
77
69
94
94
116
110
93

* Monthly average




37

123

104
49

79
80
94
97
98
98
77
75
96
110
121
175

112
154
148
154
123
124
117
98
93
82

100*

III

73

S(,I'(,l1t ecl1th Al1111(((Z R eZJol'f, F ederal R ese rve Rank of Ph ilad elphia
Indexes of business conditions-Continued

Without adjustment lor seasonal yariation
(Monthly index numbers; 1923-1925 average=100)

Passenger
F . h t ,'T
Factory Building
Coal mining
'relg
car
., I1ole_ Retail automo b' le
I
I
produc- contract
award s 1 --,------:--.--.-1 loadsa e
sales
registrat.ive
sa les
t ions
activ ity ( va lue') T 0 t,a I An~hra- Bltuml- ingR
cite
nOlls
(new)
- - -1 - - - - - - - - - - - - - - - - - - - - - -- -

1929
Jan.. . . .
Feb.. . .
Mar....
April.. .
May . . .
June. ..
July . . . .
Aug.. . .
Sept... .
Oct. ... .
Nov..

Dec.. . .
Annual

102
108
108
109
112
113
110
116
117
116
110
103

123
128
183
180
183
141
124
120
119
125
94
118

107
105
79
93
93
80
76
83
103
115
93
110

110*

132

93

1 = = 1 = = = '1 = =
=

1930
Jan . . . . .
Feb.. . .
Mar. . . .
April. . .
May.. .
June. . .
July. .. .
Aug... .
Sept... .
Oct. . . . .
Nov....
D ec.. . .

103
104
104
101
99
95
91
93
98
98
91
80

103
104
71
94
89
74
70
81
103
117
92
112

104
103
97
90
96
96
96
95
103
105
101
96

112
114
119
114
103
89

92

98

106

93
99
98
103
111

III

85
87
87
88
88
94
92
95
118
120
110
112
98*

102
96
69
76
86
79
82
89
81
107
86
87

79

102
99
66
74
86
78
82
90
80
110
85
88

88
93
89
93
97
94
93
93
95
91
81
70

81
84
83
82
85
82
78
78
95
99
90
89

94
88
82

86
83
81
79
77

85

88
86

Annual

96 *

108

86

87

81,

91l

86*

1931
J a n .... .
Feb ... .
Mar. .. .
April. ..
May . . .
June . . .
July ... .
Aug . . . .
Sept . .. .
Oct . ... .
Nov ... .
Dec . .. .

78
82
82
83
80
76
73
76
76
76
71
67

59
56
70
73
73
83
69
67
59
60
50
30

88
86

90

79

87

77

70
83
75

69

87

71
65

71
74
73
75
75
72
72
74
73
71
65
57

67
69
75
74
75
73
73
67

Annual

77*

62

59
63

66
91

68
67

76
66
58
63
66
96

66

68
68

64
57

63
65
61
64

66

* Monthly average.




- --

80
83
105
91
97
103
74
82
95
114
120
166

70
106
147
200
180
183
148
148
127
102
88
63

101*

131

- - ---- - - - - - - - - - ===

109
125
115
117
165
135
130
77
72
66
64
57

66

-

38

78
73
75
74

78
81
83
104
95
89
64
72
80
103
106
140

91 *
69
70
82
89
87
83
57
60
69
84
83
119

63
94
132
152
147
141
99
102
86
69
52
45

99
48
65
89
125
126
108
82
83
70
56
50
54

Federal Reserve Bank of Philadelphia
Directors and Officers Appointed and Elected for the Year 1932
DIRECTORS
Class A
John C. Cosgrove, Johnstown, Pa.
George W. Reily, Harrisburg, Pa.
Joseph Wayne, Jr., Philadelphia, Pa.

Class B
J. Carl De La Cour, Camden, N. J.
Arthur W. Sewall, Philadelphia, Pa.
C. Frederick C. Stout, Philadelphia, Pa.

Class C
Richard L. Austin, Philadelphia, Pa.
Harry L. Cannon, Bridgeville, Del.
Alba B. Johnson, Philadelphia, Pa.

Member of Federal Advisory Council
Howard A. Loeb, Philadelphia, Pa.

OFFICERS
Richard L. Austin,
Chairman and Federal Reserve Agent
Alba B. Johnson,
Deputy Chairman
Arthur E. Post, Assistant Federal
Reserve Agent
Ernest C. Hill, Assistant Federal
Reserve Agent




George W. Norris,
Governor
William H. Hutt,
Deputy Governor
C. A. Mcllhenny,
Cashier and Secretary

W. J. Davis, Assistant Cashier
J. M. Toy, Assistant Cashier
R. M. Miller, Jr., Assistant Cashier
S. R. Earl, Assistant Cashier

William G. McCreedy, Comptroller


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102