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Twenty-first oAnnual
of the

FEDERAL RESERVE BANK
OF PHILADELPHIA

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




193

5

Twenty-first oAnnual cRgport
of the

FEDERAL RESERVE BANK
OF PHILADELPHIA

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




19 3 5




CONTENTS
Page

Foreword

5

Profit and loss account

5

Statement of condition

7

Business conditions:
Foreword
Industrial activity:
Manufacturing
Coal and other fuels
Crude petroleum
Building and real estate
Agriculture
Electric power
General employment, unemployment and relief
Distribution, trade, service
Banking conditions:
Foreword
Banking legislation and regulations
Federal Reserve Bank:
Industrial loans
Earning assets and reserves
Member bank reserves and related factors
Condition of member banks
Currency demand
Discount and interest rates
Membership
Fiduciary powers
Departmental operations
Personnel and building

29
30
32
35
38
40
41
41
42
43

Banking and business information
Indexes of business conditions

44
46




8
9
14
15
16
18
20
21
23
27
27




Annual Report of the Federal Reserve Bank
of Philadelphia for 1935
During 1935 there was an increase in productive activity and
in the distribution of goods. Although the general level of wholesale commodity prices did not change materially over most of the
year, the average was above that of 1934. In the security markets
quotations at the close of the year were substantially higher than
at the end of 1934.
While bank loans declined in this district, there was a marked
expansion in deposits which was ascribable largely to the continuance of Government disbursements on a broad scale. Extensive
purchases of investments were made by the banks, but a considerable
portion of the growing supply of funds was allowed to remain on
deposit at the Federal Reserve Bank.
Excess reserves were an outstanding feature of the banking
situation both locally and nationally. The surplus of funds was
reflected in the continuance of low rates for open-market paper and
small yields on Government and high-grade corporate obligations.
Profit and loss account
Earnings of the Federal Reserve Bank of Philadelphia from
working capital loans made to established businesses increased
materially during 1935, but amounts derived from discounts for
member banks and purchased bills were negligible and income
from securities of the United States Government declined from
$3,152,000 to $2,821,000 in the face of an increase in average
holdings. Total earnings, including profit on the sale of United
States securities and sundry additions, decreased from $4,350,000
in 1934 to $3,536,000 in 1935.
Deductions from earnings were reduced from $3,307,000 to
$2,668,000, despite some increase in current expenses and the payment of a special assessment toward the construction of a building
in Washington for the Board of Governors of the Federal Reserve
System. This was due principally to the fact that little had to be
added to the reserves for contingencies and nothing had to be set
aside for depreciation on buildings and premises in view of new
construction during the year.
Net earnings available for distribution amounted to $868,000
in 1935. $76,000 represented profits attributable to the use of
funds turned over to this bank by the Secretary of the Treasury
in accordance with section 13b of the Federal Reserve Act, which
deals with advances to industries for working capital; $42,000 of




Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

the |76,000 was paid to the Secretary and $34,000 was transferred
to "Surplus—Sec. 13b". Inasmuch as there then remained of net
earnings only $792,000, insufficient to meet $856,000 of dividends,
|64,000 was withdrawn from "Surplus—Sec. 7", which represents
earnings accumulated from regular operations.
A decline in dividend payments from $926,000 in 1934 to
$856,000 in 1935 was due principally to the retirement of well over
2 millions of the bank's capital stock in September, in conformity
with the Banking Act of 1935 which permits a member to hold only
that amount of Federal reserve bank stock to which its capital and
surplus currently entitle it. Prior to the passage of that Act a
member bank was required to adjust its holdings of reserve bank
stock when its capital was increased or decreased, but a decrease
in surplus account required no such adjustment.
Profit and loss account
Federal Reserve Bank of Philadelphia
(000's omitted)

1935

Total earnings....
Additions to earnings.

Deductions from earnings:
For current bank operations
For Federal reserve currency
Assessment—expenses of Board of Governors .. .
Furniture and equipment purchased
Reserves for contingencies
Depreciation on bank building and premises. . . .
All other
Total deductions from earnings.

1934

$1,550
60
0
2,658
43

$ 456
10
17
3,152
90

$4,311
117

$3,725
625

5,124
412

$4,428

Earnings:
From bills discounted
From bills bought
From industrial advances
From United States securities.
From other sources

1933

$4,350

$3,536

$1,965
184
84
28
2,483
0
2

$2,135
102
142
26
651
250
1

$4,746

$3,307

$2,668

$1,043

$ 868

$

$

Net earnings available for dividends and addition to surplus
- $ 318f
Distribution of net earnings:
Payment to Secretary of Treasury (Sec. 13b)
Transferred to surplus (Sec. 13b) (to = +
from = —)
Transferred to surplus (Sec. 7) (to = + from = —)
Dividends paid

$

0

0
- 1,269
951

0
1
118
926

* Includes assessment of $99,000 toward building for Board of Governors,
t Deficit.




(

12
4
255
2,821
32

119
238*
32
5
0
1

42
34
64
856

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

Statement of condition
Federal Reserve Bank of Philadelphia
(000's omitted)

December
30, 1933

December
31, 1934

December
31, 1935

RESOURCES
Gold certificates on hand and due from U. S.
Treasurv
Gold
Redemption fund—Federal reserve notes. .
Other cash

$ 92,988
100,344
4,188
31,051

$271,119
0
2,525
35,662

$370,230
0
1,168
34,078

Total reserves
Redemption fund—Fed. res. bank notes.. . .
Bills discounted:
Secured by U. S. Government obligations*
Other bills discounted

$228,571
1,300
5,286
20,077

$309,306
0
556
437

$405,476
0
250
127

Total bills discounted.
Bills bought
Industrial advances
United States securities
Other securities

$ 25,363
7,858
0
167,120
510

5

I

Total bills and securities.
Due from foreign banks
Federal reserve notes of other banks .
Uncollected items
Bank premises
All other resources

$200,851
368
1,066
36,896
3,841
4,576

$171,933
87
1,373
38,755
4,411
5,178

$184,749
69
1,507
40,928
4,830
3,801

$477,469

$531,043

$641,360

Federal reserve notes in circulation..
Fed. res. bank note circulation—net.
Deposits:
Member bank reserve account
U. S. Treasurer—general account
Foreign bank
Other deposits

$236,128
20,390

$240,443
0

$271,870
0

129,225
83
437
9,512

211,579
4,315
1,995
1,977

274,326
10,519
2,881
10,174

Total deposits. .
Deferred availability items.
Capital paid in
Surplus—Section 7
Surplus—Section 13b
Reserves for contingencies.
All other liabilities

$139,257
35,044
15,917
27,973
0
2,500
260

$219,866
37,578
15,131
13,470
1,049
2,996
510

$297,900
40,293
12,328
13,406
2,132
3,000
431

Total liabilities
Ratio of total reserves to deposit and Federal
reserve note liabilities combined
Contingent liability on bills purchased for
foreign correspondents
Commitments to make industrial advances.

$477,469

$531,043

$641,360

60.9%

67.2%

71.1%

$68
399

0

0

Total resources

993
584
3,236
167,120
0

377
484
6,768
177,120
0

LIABILITIES

* Includes bills secured by obligations fully guaranteed by the United States Government.




Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

Business conditions
Conditions of business in the Philadelphia Federal Reserve
District during 1935 have reflected additional economic gains over
1934. Most of our measurements of industrial and trade activity
have reached the highest levels since 1931.
Industrial production has continued to expand and by the end
of the year this bank's seasonally adjusted index of output by
factories and mines had attained the highest point for the same
period since 1930. In the field of construction, the most striking
development has been evidenced by a steady rise in the activity of
residential building, particularly family houses. The volume of
construction financed by public funds, on the other hand, has declined in comparison with 1934, although the value of contracts
awarded for this class of building increased sharply in the closing
months of the year.
General employment has been well maintained throughout
1935. Nevertheless, expenditures for various types of unemployment relief in this section have been increased greatly in comparison with the annual totals in the preceding two years.
Income from such sources as wages, sale of farm and industrial products, rents, dividends and interest has continued upward
since early 1933, following a period of prolonged decline. In
consequence, the purchasing power of the general population has
increased materially, though its full effect has been lessened somewhat by a rise in the cost of living.
Wholesale prices of manufactures and farm products have
fluctuated during the year but slightly and in the same direction,
indicating a marked change in the relationship in the price levels
of these two major groups of commodities from that which existed
in the years from 1931 to 1934. Food prices, on the other hand,
have continued rising so that at the end of the year they were
nearer their 1926 levels than were prices of industrial products and
agricultural staples.
The value of retail and wholesale trade sales was larger in
1935 than in 1934 and substantially so as compared with 1932 and
1933. Inventories at the end of the year showed little change from
those of a year before, except in the case of used passenger automobiles, but a considerable reduction in comparison with the volume
prior to 1931. Shipments of goods by rail, motor truck and water
naturally reflected the higher rate of activity in the field of production and distribution of commodities. Extended description of



8

Twenty-first Annual

Report, Federal Reserve Bank of Philadelphia

conditions and changes during 1935 by important economic groups
in this district follows.
Industrial activity
Activity of manufacturing industries in this district
generally during 1935 showed further expansion as
compared with 1934 and other recent years. The rate
of factory output rose sharply in the spring months, declined in
mid-summer and subsequently increased continuously, reaching at
the end of the year the highest level since 1930.
This bank's index number of factory production rose to 78 per
cent of the 1923-25 average, on a seasonally adjusted basis, as compared with a record low of 52 in March 1933. The average for the
entire year was 73 as against 67 in the previous year, 64 in 1933 and
a low average of 61 in 1932. The record high was 111 in 1929.
Consequently, it appears that the trend of factory production during
1935 has continued upward with a fair degree of regularity and the
amplitude of fluctuations has been much narrower than in the preceding three years.
The rate of gain in the output of durable goods was especially
pronounced, largely in response to demand for manufactured products for equipment purposes. The index of productive activity in
this industry rose by the end of the year to about 62 as compared
with 49 a year before and the low of 29 in March 1933. This increase for the most part was due to a further expansion in iron and
steel products, electrical apparatus, iron castings, automotive equipManufacturing

Factory output
Philadelphia Federal Reserve
District

Index number (annual average), 1923-25 = 100
1929

1930 1931 1932 1933 1934

Manufacturing—-total

111

97

Durable goods
Non-durable goods

110
112

94
100

124
107
94
96
120
83
122
128
118
191

102
89
86
92
106
66
115
122
114
193

Metal products
Textile products
Transportation equipment
P^ood products
Tobacco and products
Building materials
Chemicals and products
Leather and products
Paper and printing
Electric power output




61

64

67

73

60
90

39
77

40
82

50
80

56
87

62
83
59
83
94
43
104
114
99
190

34
72
47
74
78
27
89
98
83
177

41
81
33
71
81
24
95
118
80
181

54
72
44
75
88
28
101
118
79
192

63
87
46
70
89
29
104
126
81
197

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

INDUSTRIAL PRODUCTION
PHILADELPHIA FEDERAL RESERVE DISTRICT

1929

1930




1931

1932

10

1933

1934

1935

1936

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

ment, shipbuilding and, to a lesser extent, certain building materials.
Non-durable goods industries also showed a further increase
in output, though the rate of gain over previous years was not as
striking as in the case of durable goods. The production index for
this branch of industry at the end of the year was about 91 and
the average for the year was 87, relative to the 1923-25 base, as
compared with 80 in the previous year, 82 in 1933 and a low average
of 77 in 1932. The largest relative increases occurred in the textile,
and leather and leather products industries, while the food group
alone showed a decline.
Prices of manufactures at factory on the whole showed little
change during 1935 as compared with 1934 but they were considerably higher than in the period from the spring of 1931 to the fall
of 1933. The index number of the Bureau of Labor Statistics for
all commodities other than farm products and foods in 1935 was
about 77.9 per cent of the 1926 average as against 78.4 in the previous year, 71.2 in 1933, and a low of 70.2 in 1932.
Inventories of raw materials and finished goods held by plants
in this district at the end of the year appear to have been moderate
and in most instances differed little from the volume of a year ago.
Such data as are available indicate definitely a marked reduction in
stocks of goods from the relatively large volume accumulated over
a period culminating in 1931 and 1932. Pertinent figures for the
country as a whole reflect a similar condition with respect to factory inventories.
The trend of factory employment has continued upward, though
not as sharply as that of payrolls and working time. The disparity which developed between payrolls and working time and
production in the years 1930 to 1933 has narrowed further during
1935. The indexes below are given as an indication of the change
in this relationship.
Index numbers
Phila. Fed. Res.
District
(1923-25 = 100)
Production. .
Employment
Payrolls .. . .

1928

1929

1930

1931

1932

1933

1934

1935

102
93
94

111
99
103

97
90
87

77

61
64
42

64
67
45

67
75
57

73

75
63

77
63

Jan.
1936

74
77
66

The number of wage earners employed by the manufacturing
industry in this district averaged about 682,000 and the amount of
wages paid totaled $693,000,000 during 1935, indicating a gain of 3



11

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

EMPLOYMENT AND PAYROLLS
PENNSYLVANIA
1923-25=100

ALL MANUFACTURING INDUSTRIES

HOURS AND EARNINGS
1927-28 = 100

1929




1930

1931

1932

12

1933

1934

1935

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

per cent in employment and 11 per cent in payrolls over 1934. To
show the trend in these items there follows a table of figures derived from our current indexes and the census data:
Factory employment and payrolls
Philadelphia Federal Reserve District
(Estimates)

Employment
(average lor year)

1923
1924
1925
1926
1927. .
1928
1929
1930
1931
1932. .
1933
1934
1935

877,316
785,198
804,043
829,772
792,432*
762,487
810,862*
757,227
645,330*
556,247
592,951*
661,140
681,635

Payrolls (total)

$1,075,814,441
960,702,296
1,003,933,900
1,063,166,001
996,186,543*
946,309,341
1,033,815,162*
908,701,215
679,755,032*
461,672,090
492,123,399*
623,028,224f
692,807,381f

* From the Census of Manufactures for 60 counties in eastern Pennsylvania, southern
New Jersey and Delaware; prior to 1927 these figures were not subdivided by counties.
Figures for other years were computed from the indexes of employment and payrolls
compiled by the Philadelphia Federal Reserve Bank.
f Preliminary.

Earnings by wage earners during 1935 averaged 57.7 cents an
hour or slightly more than in the previous year, as computed from
the figures for Pennsylvania factories. The fluctuation in this item
during the year was comparatively unimportant. The average time
worked by wage earners approximated 34.5 hours per week, an increase of about 6 per cent as compared with 1934. The sharpest
gain occurred in the fall months and at the end of the year the number of hours worked per week averaged around 36.1 per wage earner.
Since the figures on hours are derived from the composite data for
68 manufacturing industries, they naturally do not fully disclose
variations between individual industries. Similarly, data for earnTrend of hours worked
and hourly earnings
Pennsvlvania

Average number of
hours worked per
wage earner per week

Average earnings
per hour per wage
earner in cents

46.9
48.8
44.5
38.2
31.5
33.1
32.6
34.5

56.8
57.4
58.7
55.7
48.3
48.1
57.2
57.7

1928
1929
1930
1931
1932
1933
1934
1935




13

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

ings are obtained from the combined totals for these industries and
are intended to indicate only the general trend of income from wages
but in no sense to show wages rates.
Coal and Production of anthracite fuel in 1935 approximated
other fuels 51,000,000 net tons which was 11 per cent smaller than
in the previous year but about 3 per cent larger than
in 1932 and 1933. Toward the end of the year output and shipment of this fuel were stimulated considerably by severe weather
conditions and this trend continued into early 1936. Stocks of
anthracite at various sources declined and at the close of the year
were 7 per cent smaller than a year before but considerably
larger than at the end of 1933. The trend of prices generally has
been downward during the past decade, reflecting in part competition from other fuels. The accompanying tables indicate changes
that have occurred in the fuel industries during recent years.
Per cent change from

Fuels
(Output and shipment figures are daily averages)

Anthracite

1935
1932

1933

1934

Production
Shipments
Stocks
Prices
Employment

tons
tons
1000 tons
(1926 - 100)
Number

168,049
160,012
1,415
79.7
95,307

+ 3
+ 2

+ 3
+ 3
+59
- 3
- 9

-11
- 9
_ 7
- 1
-10

Production
Shipments
Prices
Employment
Coke
Production
Prices

tons
Number of cars
(1926 = 100)
Number

297,201
22,611
96.7
127,450

+22

+15
+ 9
+17
+10

+
+
+
-

(1923-25 = 100)
(1926 = 100)

86.8
88.6

+ 17
+18
+22
+63
+ 14

+28
+14

+ 11
+ 4

Production
Prices

(1923-25 = 100)
(1926 = 100)

99.7
62.7

- 2
+28

- 0
+ 14

- 4
+ 6

Bituminous

Gas and fuel oil

-33
-10
-21

1
2
2
0

Sources: Bureau of Mines and Bureau of Labor Statistics.

Activity in the bituminous coal field has continued to show
improvement in sympathy with increased operations in those enterprises which are important consumers of this fuel. Production
of bituminous coal in Pennsylvania during 1935 totaled nearly
91,000,000 tons as compared with 89,826,000 in the previous year,
79,296,000 in 1933 and a low of 74,776,000 in 1932. The number
of mine workers remained about the same as in 1934 in contrast
to a marked decline in the case of the anthracite industry. Prices



14

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia
of bituminous coal have continued to advance since the low reached
in 1932 and the average for the year was only within 3 per cent
of the base year, 1926.
Coal mining

Employment and
production
Pennsylvania
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933
1934
1935

Employment

Production (net tons)

Anthracite

Bituminous

Total

Anthracite

Bituminous

157,743
160,009
160,312
165,386
165,259
160,681
151,501
150,804
139,431
121,243
104,633
106,251
95,307p

194,981
169,322
156,798
155,999
153,699
133,414
131,774
130,150
116,726
104,532
115,453
127,868
127,450p

352,724
329,331
317,110
321,385
318,958
294,095
283,275
280,954
256,157
225,775
220,086
234,119
222,757p

93,339,000
87,927,000
61,817,000
84,437,000
80,096,000
75,348,000
73,828,000
69,385,000
59,646,000
49,855,000
49,541,000
57,168,000
51,003,000

171,880,000
130,634,000
136,928,000
153,042,000
133,099,000
131,202,000
143,516,000
124,463,000
97,659,000
74,776,000
79,296,000
89,826,000
90,927,000

Source: Bureau of Mines, United States Department of Commerce,
p Preliminary.

In response to increased demand, production of coke was 11
per cent larger in 1935 than in 1934 and substantially greater than
in 1932 and 1933. Prices also have shown additional advances
during the year. Productive activity in the case of gas and fuel
oil slackened somewhat but prices have risen further, though the
rate of this advance has been narrowing.
Crude
The petroleum industry has shown a continued increase
petroleum in production since early in 1933. Output of crude oil
in that part of Pennsylvania which is located in this
district in 1935 exceeded 13,150,000 barrels, or the largest annual
total in the history of the Bradford oil field. The following figures
show the trend of production and prices in recent years.
Crude petroleum output and prices

5,901,400

1928
1929
1930
1931
1932
1933
1934
1935

7,734,900

9,268,700
8,804,300
9,926,550
10,129,950
11,967,500
13,150,450

* Source: American Petroleum Institute.




Bradford field
barrels produced'

15

Average price
per barrel (Pa.)
$3,101
3.662
2.370
1.789
1.820
1.785
2.389
2.126

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia
Building
and
real estate

The aggregate value of building contracts awarded in
this district during 1935 amounted to $94,259,000 as
compared with $94,000,000 in the previous year, nearly
$68,000,000 in 1933 and about $103,000,000 in 1932.
The trend has been steadily upward since spring, though the total
volume is still substantially behind that in the pre-depression years.
The amount of contracts let in the peak post-war year 1928 totaled
$503,543,000. As shown by the accompanying table, the largest
relative gains since 1934 occurred in residential and miscellaneous
construction, while the volume of public works alone registered
marked declines. One of the significant developments disclosed by
these figures is the fact that the trend in the case of one and twofamily houses has been almost steadly upward since the low level
reached early in 1933. In the case of commercial buildings, the
improvement during the year also was noticeable.
Building and real estate
Philadelphia Federal Reserve
District

Index number (annual average), 1923-25 =
1929

1930

1931

1932

1933

1934

1935

Contracts awarded:
Residential
Apartments and hotels
Family houses
Non-residential
Commercial and factories..
Educational
All other

108
128
99
168
157
181
189

48
50
48
142

18
13
20
41
20
65
81

12
4
16
25
23
11
44

12

112
154

30
25
33
62
36
79
120

14
29
24
42
33

17
8
21
29
23
27
47

Public works and utilities.

144

203

174

63

43

94

59

136

108

65

34

22

32

28

74

40

23

10

6

7

9

Grand total
Building permits

147

7

Per cent change—1935 compared with
1929
Mortgages recorded
Ordinary real estate deeds..
Sheriff deeds

1930

1931

1932

1933

1934

-89(a)

-84(a)
-36(a)
+ 5 (a)

-74(b)
-24(b)

+80(c)
-ll(c)
-25(c)

+ 187(c)
+ 5(c)
- 31(o)

+313(c)
+ 7(c)
- 3(c)

(a) 1 county, (b) 2 counties, (c) 6 counties.

It will be observed that the relative importance of contracts
let for residential construction has increased considerably during
1935, as indicated by the next table. Contrariwise, the proportion




16

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

BUILDING CONTRACTS
PHILADELPHIA FEDERAL RESERVE DISTRICT
AOJ JSTtD TOR SEASONAL VARIATION

0
SOS

PERCENT

KEY:

11

—

—

350

T T AL
O
RES DFNTIAI
ooooo NOh -RESIDENTIAL
PUB LIC WORKS AND UTILITIES

300

250

200

150

A.

ft

TO 11
/

w
\

^1 V

,

\

/

/

0
1929

1930

1931

1932

1933

1934

1935

1936

of contracts awarded for the so-called public works and utilities declined from 1934 to 1935, though it is still higher than in other years
with the exception of 1931.
Building contracts
Phila. Fed. Res. Dist,
(Figures are percentages)

1928

1929

1930

1931

1932

1933

1934

1935

Residential
Apartments and hotels...
Family houses
Non-residential.
Commercial. .
Factories
Educational
All other

44.4
13.6
30.8
40.2
11.7

37.2
13.6
23.6
45.2
16.0

21.7
4.9
16.8
34.6

24.1
5.6
18.5
44.8

27.5
4.6
22.9
39.2

9.5
9.2

8.9
3.9

6.7

7.4
2.9
8.8

10.5

10.9

15.5

14.1

9.4
7.5
8.6
8.2

9.9
7.6
8.8

12.3

12.6
19.4

25.7
2.6
23.1
42.8
10.9
13.2

18.9
3.3
15.6
33.7

9.8
6.4

20.7
6.4
14.3
48.7
16.0
15.1

12.9

Total buildings. .
Public works and utilities

84.6
15.4

82.4
17.6

69.4
30.6

56.3
43.7

68.9
31.1

68.5
31.5

52.6
47.4

66.7
33.3

Grand total

4.6

100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Prices of building materials in general were a trifle lower in
1935 than in 1934. Advances in cement, structural steel, and paint
and paint materials were more than offset by decreases in brick
and tile, lumber, plumbing and heating, and other building ma-




17

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia
terials. The average index for all these groups fluctuated around
85 per cent of the 1926 average as compared with a low of 71 in
1932 and a high of 95 in 1929, according to the Bureau of Labor
Statistics.
The real estate market showed a considerable improvement
during 1935 over 1934, even though the level of activity continued
low in comparison with the pre-depression years. Renting demand
for dwellings by industrial and lower-salaried workers has increased further. This appears to have been especially true in the
case of small houses and apartments whose rentals range from f30$35 a month. Vacancies in these classes of dwellings have decreased appreciably. Foreclosures also have fallen off for the
second year.
Sales of houses varying from $3,000 to $5,000 also seem to
have increased since 1934, and prices have shown some advances
during the year. Mortgage funds for new purchases have been
more readily available than for several years past. Interest rates
prevailing in this section have shown less change since 1934 than
they have in other parts of the country, although declines here
have been apparent chiefly in the case of funds required for residential buildings of the one and two-family type.
Agriculture

The agricultural situation in this district showed
further improvement during 1935 with respect to both
production and income. Further advances in prices,
especially for meat animals, and dairy and poultry products, declining cost of feed and fertilizer, and favorable weather conditions prevailing throughout the greater part of the growing season
were in a large measure responsible for the increased farm activity
last year.
Output of farm products generally was larger in 1935 than
the year before and yields per acre in many cases were above the
average of the ten years, 1921-30. Production of such leading
crops as corn, wheat, oats, hay and tobacco registered fairly large
increases over 1934, the only important field crop to show a decline
being white potatoes. The acreage of truck and vegetable crops
harvested last year also increased and yields of orchard fruits were
substantially larger than in 1934.
Marketings of virtually all important livestock products, except butter, increased sharply during 1935; in the case of dressed
poultry, receipts at four principal markets were more than four
times as large as the year before. Cold storage holdings of poultry




18

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

and cheese at the end of December registered marked decreases as
compared with a year earlier, those of poultry being the smallest
for that period in the past ten years. Despite larger than seasonal
decreases during the last half of 1935, stocks of butter and eggs
were considerably larger at the end of 1935 than at the same time
in 1934.
The number of workers available for hire on farms in this section decreased steadily during 1935, reflecting to some extent a
further improvement in industrial conditions. Demand for farm
labor last year increased more sharply from early spring to midsummer and was maintained at a much higher level throughout
the harvest season than was the case in 1934, while the seasonal
decline from fall to mid-winter was somewhat less pronounced than
the year before. Barring minor fluctuations, largely seasonal in
nature, the trend of farm wage rates has continued steadily upward
during the past three years. On January 1, 1936 average monthly
wages without board for agricultural workers were about 4 per
cent above the level of a year earlier and were the highest for that
period since 1932.
Wholesale prices of farm products in this district as in the
country in 1935 reached the highest levels since 1930 and exceeded
the average for the five years 1910-1914, which was selected as a
basis for comparison. The recent trend of prices for all agricultural commodities combined is indicated by the following figures:
F a r m prices
of agricultural commodities
(Index:1910-1914 = 100)
United States
Pennsylvania
New Jersey. .

1931

1932

1933

1934

1935

87

65
75
88

70

90
94
109

108
104

—.

114

80
109

us11

Sources: United States Department of Agriculture and Federal-State Crop Reporting
Service. * 11 months.

According to data compiled by the Bureau of Agricultural
Economics, wholesale prices of farm products have risen more
sharply during the past four years than have prices of commodities
generally purchased by farmers. As a result, the disparity between these two price series, which increased rapidly from 1929
to 1932 and became most pronounced in the latter year, has narrowed considerably, the ratio of prices received to prices paid being
86 per cent in 1935, compared with only 61 per cent four years
earlier.




19

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia
Cash income of farmers in this district as a whole showed a
further substantial increase in 1935. Preliminary estimates made
from the farm value of crops and marketings of livestock and
livestock products indicate that farm income was nearly 16 per
cent larger than in 1934. The estimated value of last year's crops
was slightly smaller than the year before, chiefly because of lower
prices prevailing for fruits and vegetables, while receipts from the
sale of livestock and livestock products, particularly milk, poultry
and eggs, increased sharply and were the largest in five years. These
estimates do not include rental and benefit payments made to
farmers who co-operated with the Agricultural Adjustment Administration's program of crop curtailment. Complete returns
showing income so received are not yet available, but it has been
estimated that Pennsylvania farmers were paid approximately $1,406,000 in the first nine months last year, compared with $360,000
in the same period of 1934. The trend of cash income for the past
twelve years is shown in the following table:
Estimated cash income
from farm production
Philadelphia Federal Reserve District
(000's omitted)

Crops

Total

$116,536
133,473
114,277
111,683
99,301
107,690
91,355
70,672
54,579
72,685
73,249
69,294

1924
1925.
1926.
1927.
1928.
1929.
1930.
1931.
1932.
1933#.
1934#.
1935#<

Livestock
products

$126,312
134,627
141,945
142,238
152,410
176,707
161.904
128J305
100,344
99,338
119,122
152,119

$242,848
268,100
256,222
253,921
251,711
284,397
253,259
198,977
154,923
172,023
192,371
221,413

Source: United States Department of Agriculture. # Exclusive of benefit payments.
* Preliminary estimate based on farm value of crops and sales of such livestock products as eggs, poultry, milk, butter and cheese.

Electric
power

Output and consumption of electricity in this district
have continued to expand since the low levels of 19321933 and by the end of 1935 our seasonally adjusted
indexes were the highest shown for several years. Production and
sales of electrical energy were approximately 5 per cent larger in
1935 than in 1934 and substantially greater than in the previous
two years. This gain reflects largely an improvement in general
economic conditions as indicated by increased sales of electricity
for lighting and power purposes. Detailed comparisons follow:



20

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

Electric power
Philadelphia Federal
Reserve District

1935
daily
Number
average
of
systems (kwh.OOO's
omitted) 1930
1,892*

Per cent change—
1935 compared with
1931

1932

1933

1934

+ 5

+ 2

+ 1

+ 0

+ 0

Rated generator capacity.

8

Output:
Hydro-electric
Steam. .
Purchased

4
7
7

4,391
11,078
1,666

+39
- 0
-10

+51
+ 2
-32

+ 9
+24
-14

- 6
+30
-24

+14
+ 8
-24

8

17,135

+ 6

+ 6

+ 15

+ 11

+ 5

10

324

-15

-20

-19

- 2

+ 0

10
9
9

3,953
2,028
1,535

+30

+21

+22
+21
+21

+20
+20
+ 17

+ 9
+ 7
+10

10

4,277

+25

+17

+ 18

+18

+ 9

+ 1

+ 1

+ 2

+ 1

+24
+20

+12
+16

+ 7
+ 7

+20
-29

+15
-30

+ 7
-27

+ 6

+ 15

+12

+ 5

Total output
Sales of electricity:
For lighting
Municipal
Residential and
commercial
Residential
Commercial
Total
For power
Municipal
Street cars and railroads
Industries

7

296

+ 1

10
10

2,152
ll,016t

+ 7
+ 2

Total
All other sales

10
10

10,929
860

+11
+ 7
+ 3 + 7
- 32 -35

10

16,066

+ 5

Total sales for all purposes

* Kilowatts.
t Computed on a basis of working days; calendar days were used for other items.

The number of workers employed in twelves branches
of industry, trade and service combined showed little
change from 1934 to 1935 but exceeded the low of
1932 by about 8 per cent Variations in individual
groups, of course, were noticeable, as indicated by
the index numbers in the accompanying table.
The amount of compensation paid out during the year increased from 118 in 1934 to 126 per cent of the 1932 average and
was almost 30 per cent larger than in 1933. Most of the groups
shared in this gain, indicating expansion in working time.
The extent of general unemployment during 1935 is partly
indicated by the next table showing the average number of persons
on relief and the amount spent for relief in various forms such as
General
employment,
unemployment
and relief




21

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

direct and work relief. Total expenditures in Pennsylvania during
the year increased greatly as compared with the annual total expended in the preceding two years.

Index of general employment and
Employment
Payrolls
]
pay-rolls—Pennsylvania. (1932
average = 100; indexes are annual
averages.)
1932 1933 1934 1935 1932 1933 1934
General index (weighted)*
Manufacturing
Anthracite
Bituminous coal mining
Quarrying and non-metallic mining
Crude petroleum producing
Public utilities
Retail trade
Wholesale trade
Hotels
Laundries
Dyeing and cleaning

100
100
100
100
100
100
100
100
100
100
100
100

99
105
83
99
93
139
92
101
98
94
93
99

108
116
95
121
105
183
90
109
103
106
94
99

108
121
86
120
97
193
89
110
106
104
95
94

100
100
100
100
100
100
100
100
100
100
100
100

97
108
85
100
94
122
86
95
91
82
85
90

118
138
104
154
124
163
88
106
96
100
92
103

126
155
89
161
128
170
91
108
100
103
95
101

* Includes building and construction.

Average number
of persons on relief
during month

Unemployment relief
Pennsylvania

1,346,038

1932—December

Expenditures
for
relief*
$

5,509,183

1933—Total....

81,358,243

1934—Total.

126,032,704
1,678,377
1,728,286
1,727,192
1,738,307
1,691,316
1,649,386
1,587,664
1,606,633*
1,625,304
1,517,085
1,271,883
865,843

1935—January...
February..
March. . . .
April
May
June
July
August
September.
October. . .
November.
December.

20,067,505
19,017,633
17,166,964
18,458,726
17,855,486
15,325,332
16,205,676
14,757,416*
13,985,552
14,262,859
10,870,362
8,258,617
$186,232,128

Total 1935,

* Work relief was discontinued in August 1935 so that figures for subsequent months
show expenditures only for direct relief and special programs.
Note: Figures do not include administrative expenses which in the first ten months
of 1935 approximated 8 per cent of the total expenditure.
Source: Pennsylvania Emergency Relief Board.




22

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia
Distribution,

trade, service

Shipments of commodities affecting this district showed additional increases during 1935. Following a steady decline between
1929 and 1932, freight car loadings turned gradually upward,
reaching in the last quarter of the year the highest level since 19311932. Deliveries of goods by motor truck also showed further increases as compared with the previous three years. The movement
of freight by water for that portion of the Delaware River which
extends from Trenton to the sea during 1935 registered continued
gains in the value of goods coming in and going out of this district.
Foreign trade
Port of Philadelphia
(000's omitted)
1930
1931
1932. . .
1933. .
1934
1935

Exports,
including
re-exports

General
imports

Total

$101,830
74,302
39,624
47,848
54,595
61,755

$165,928
115,296
79,113
91,012
98,398*
119,257*

$267,758
189,598
118,737
138,860
152,993
181,012

* Imports for consumption comprise all commodities which immediately entered the
country upon arrival plus withdrawals from bonded warehouses for consumption.
Figures prior to 1934 cover general imports including all commodities entered for immediate consumption plus those entered for storage in bonded customs warehouses.
Source: U. S. Department of Commerce, Bureau of Foreign and Domestic Commerce.

The value of wholesale trade sales by eight important lines
combined proportionately showed an additional increase of 3 per
cent, continuing the upward trend since early 1933. A part of this
gain reflects further advances in prices, particularly for groceries,
hardware and paper. The value of inventories during the year
averaged less than in the previous year but at the end of 1935 it
was about 3 per cent larger than a year before. The rate of stock
turnover increased 3 per cent as compared with 1934. The ratio
of collections to outstanding balances also showed a slight gain
during the year and continued higher than in the preceding four
years.
Dollar sales of merchandise at retail establishments, as measured by reports from representative department, apparel, shoe and
credit stores in this district, were 6 per cent larger than in 1934
and substantially greater than in 1932 and 1933. The seasonally
adjusted index of retail trade sales in December was 74 per cent
of the 1923-25 average as compared with 67 a year ago, 61 two
years ago and a low of 56 in 1932. Despite irregular fluctuations,



23

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

DISTRIBUTION
PHILADELPHIA FEDERAL RESERVE DISTRICT

RETAIL TRADE

923 25»VG =100

PERCENT

ADJ

USTED TOR SEASONAL VARIATION

SALES
75

1 >»
STOCKS

A

"""%l

NrV

50
25

WHOLESALE TRADE

125
STOCC»s

100

SALES
•

75
50
25

FREIGHT CAR LOADINGS

SALES OF NEW PASSENGER AUTOMOBILES

1929

1930




1931

1932

24

1933

1934

1935

1936

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

Distribution
Philadelphia Federal Reserve
District
Freight car loadings:
Total
Merchandise and misc. (64.9%
of total)
Coal (23.57O of total)
Wholesale trade:
Sales
Stocks
Rate of stock turnover*
Ratio of collections to outstandings*
Retail trade:
Sales
Stocks
Rate of stock turnover*
Ratio of collections to outstandings*
Registration of new passenger automobiles
Gasoline consumption (1928 = 100)
Life insurance sales

Index number (annual average), 1923-25 =
1929

1930

1931

1932

1933

1934

106

90

71

52

55

57

59

112
92

96
79

76
66

56
54

55
58

57
64

59
64

98
102

85
92

73
79
5.56

59
66
5.18

63
59
5.62

75
67
5.57

77
66
5.71

61

67

64

57

59

69

68

100
92
3.98

91
86
4.00

80
76
4.06

61
64
3.77

58
57
3.84

65
62
4.04

68
65
4.29

30

29

28

26

26

28

29

131
120
146

99
133
145

80
150
128

51
147
106

62
148
95

73
158
103

99
161
104

* Actual ratios, not index numbers.

the trend of retail trade during the past three years has been
gradually upward, following a sharp decline between 1929 and
1932-1933. Inventories at retail establishments in the aggregate
averaged slightly higher in 1935 than in 1934 and at the end of
the year the value was about 5 per cent larger. Retail stocks of
merchandise turned about 4.3 times during 1935 and this ratio
was the highest in several years. Settlements of accounts by
customers have risen steadily since 1932 and the average ratio of
collections to receivables in 1935 was 4 per cent higher than a year
earlier and substantially higher than in the previous three years.
Estimates of
retail and wholesale trade sales
Philadelphia Federal Reserve District
$3,092,000,000
2,755,000,000
2,378,000,000
1,725,000,000
1,591,000,000
1,766,000,000
1,865,000,000

1929
1930
1931
1932
1933
1934
1935

* Preliminary, subject to revision.




Wholesale

25

$3,247,000,000
2,705,000,000
2,166,000,000
1,575,000,000
1,609,000,000
1,895,000,000
1,956,000,000

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

The preceding figures are derived from our current indexes
which are supplemented by the Census of Distribution of the Department of Commerce. They are only approximations intended
to show the trend of sales in absolute rather than relative figures.
Sales of new passenger automobiles, as measured by the registration of all new units in this district, increased to the largest
volume since 1929. The low level was reached in 1932, as shown
by the following table.
New passenger automobile registration
Philadelphia Federal Reserve District
155,036
1929
159,487
1930
167,835
1931
197,880
1932
166,688
1933
177,915
1934
1935
158,929

1923
1924
1925
1926
1927
1928

210,002
158,816
128,703
82,589
99,037
116,787

The sharp increase during the year reflected in part the fact
that production of new models occurred at an earlier date in 1935
than was the case in other years. But the principal contributing
factors were general improvement in industrial conditions and income from various sources, and the depreciation from wear and
tear on the automobiles in use during the depression years. Reports
indicate that stocks of used cars held by dealers at the end of the
year showed a considerable increase by comparison with those held
on the same date in other years.
Sales of ordinary life insurance were virtually in the same
volume in 1935 as in 1934, though activity in the third quarter rose
at a higher rate than that for the same period in other years. Total
sales practically equalled the average in the base years, 1923-1925.
Activity of representative commercial hotels, excluding resort

Index 1934 -

Hotel activity
Philadelphia Federal Reserve District

1933

1934

1935

Room occupancy

86

100

106

Revenue, total. .
Guest rooms. .
Food

82
88
86
64

100
100
100
100

107
106
108
111

Other sources.




26

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

hotels, increased further during 1935 and the level was substantially higher than in 1933. Room occupancy showed an additional
gain of 6 per cent and aggregate income from all sources was 7
per cent larger than in 1934. The table gives index numbers
reflecting chiefly the movement of business travelers in this district.

Banking conditions
In this district changes in membership during 1935 were
relatively few; additions equaled losses, so that the total of 656
members at the end of the year was the same as at the beginning.
The reopening of banks which had been closed during the banking
holiday of 1933 was largely completed in 1934.
Rapid expansion in deposits at the member banks furnished
them with assets for which they could find little desirable outlet
in loans to customers. Many millions of securities were purchased,
but a substantial part of the funds provided by increasing deposits
and loan liquidation served only to increase reserve balances at the
Federal Reserve Bank. Borrowings of members from this bank
continued at an exceedingly low level.
Banking legislation and regulations

Outstanding in the field of legislation was the Banking Act of
1935, approved August 23rd. The first section revised existing
provisions of law with regard to deposit insurance, placing it upon
a permanent basis with a coverage up to $5,000 for each depositor
and setting the annual assessment on insured banks at 1/12 of
one per cent of the average of total deposits less certain deductions.
The second section made several far-reaching changes in the organization of the Federal Reserve System and in credit administration, as indicated below:
The Board of Governors of the Federal Reserve System (formerly known as the Federal Reserve Board) is to consist
of seven appointed members. This provision is effective
February 1, 1936.
The open market committee is to consist of the Board of Governors and five representatives of the reserve banks; its
decisions will be binding on the reserve banks. (Effective
March 1, 1936)
The titles of president and first vice president are substituted
for those of governor and deputy governor, which heretofore have been applied to the two chief executive officers



27

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

of a reserve bank. They are appointed by the board of
directors, with the approval of the Board of Governors
of the Federal Reserve System, for terms of five years.
(Effective March 1, 1936.)
A permanent section 10 (b) is added to the Federal Reserve
Act permitting advances by reserve banks to members on
their time or demand notes secured "to the satisfaction"
of the reserve bank. Maturities may not exceed four
months. The interest rate charged is to be not less than
y% of one per cent higher than the highest discount rate
in effect at the reserve bank.
Reserve banks must establish discount rates every fourteen
days, or more frequently if required by the Board of Governors.
The Board of Governors by vote of four of its members may
raise or lower member bank reserve requirements, with
present requirements as the minimum and double these
as the maximum.
National banks may make loans on improved real estate for
five years and up to 50% of appraised value, in an amount
equal to unimpaired capital and surplus or 60% of
time and savings deposits, whichever is the greater. If
provision is made for the amortization of 40% of the
loan, a loan may be made up to 60% of appraised value
and for as long as ten years.
Title III of the new Act covered many miscellaneous points on
which clarification was desirable. It also changed the method of
computing net demand deposits subject to reserve, permitting the
deduction of amounts due from banks and cash items from gross
demand deposits, and required reserves to be kept against United
States deposits.
Regulation T, issued by the Board of Governors in 1934 in
conformity with its powers over margin requirements under the
Securities and Exchange Act, was amended in several respects during 1935 and numerous rulings were made covering specific points.
In the latter part of the year brokers and dealers were required to
submit monthly reports showing debit and credit balances, in order
that the Board might have information to guide it in its supervisory activities.
Toward the close of the year five of the regulations of the
Board were revised, to take effect January first. They were: "D"
—Reserves of member banks; "H"—Membership of state banking



28

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

institutions; "I"—Increase or decrease in capital stock of reserve
banks; "P"—Holding company affiliates—voting permits; "Q"—
Payment of interest on deposits. A new regulation—"0"—also
was issued relating to loans to executive officers of member banks.
Federal Reserve Bank
There was continued activity during 1935 in the
Industrial extension of credit to industry under section 13b,
added to the Federal Reserve Act in June 1934, which
authorizes reserve banks to assist in making working capital available to industrial and commercial businesses- The amount of such
loans approved rose sharply in the year. In the last six months
there has been some falling off in the applications. From June
1934 to the end of 1935, 136 applications in the aggregate amount
of $22,992,000 were approved by this bank; gratifying cooperation
by banking institutions in the district is evidenced by their participation in $16,543,000 or 72 per cent of the total. To date more than
300 field investigations have been made in connection with the
applications.
Industrial loans
Juno 1934 to December 1935
(Participations of other financing institutions included)
Applications received—net
Under consideration December 31, 1935
Loans and commitments approved by Federal Reserve
Bank* .

Number

Amount

512
6

$36,380,000
660,000

506

$35,720,000

136

$22,992,000
$12,378,000
3,391,000

Actual advances made
Repayments .
Advances outstanding December 31, 1935
Commitments outstanding December 31, 1935

$8,987,000
1,307,000

* Includes approved applications that subsequently were reduced or withdrawn, or
that expired unused.

We wish to make due expression of our appreciation of the
services of the Industrial Advisory Committee, the members of
which have given generously of their time and services to this
bank, without compensation.
The Committee has met regularly through the year, has considered over 200 applications, and has been of invaluable assistance
in passing upon these applications. There were two changes during



29

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

1935 in its personnel. Benjamin F. Mechling, president of the Atlantic Elevator Company and vice president of the Nice Ball Bearing
Works of Philadelphia, and John T. McDade, treasurer of the Art
Loom Corporation, Philadelphia, were appointed to fill vacancies
caused by the resignations of Charles E. Brinley, president of the
American Pulley Company, Philadelphia, and Richard D. Wood,
president of the Millville Manufacturing Company of Millville,
New Jersey, and Philadelphia, Pennsylvania.
Actual industrial advances by this bank, less reEaming
payments, increased from 3 ^ to 6% millions during
g
d 1935> contributing to an increase from 172 to 185
assets and
millions in the bank's bill and security holdings. On
only a few days were the bank's holdings of bills discounted
for member banks in excess of a million dollars and the average
for the year was little over half a million, much the same as that
for bills bought, which consisted entirely of foreign bills. The increase of 13 millions in earning assets during the year was due
mainly to the fact that in June the bank increased its participation
in Federal Reserve System holdings of United States securities
by 10 millions.

BILL AND SECURITY HOLDINGS
FEDERAL RESERVE BANK OF PHILADELPHIA
(Monthly averages)

MILLIONS

250
I I

TOTAL

200

150

100

V

y

50

— US. SECURITIES —

K

I 1 BILL HOLDIh GS

INDUSTRIAL
ADVANCES

0
1932




19 3 3

30

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

RESERVE POSITION
FEDERAL RESERVE BANK OF PHILADELPHIA
(Monthly averages)
PERCENT

70

60

50

MILLIONS
$
A

A

400

/v

CASH
RESERVES
V
350

7

FEDERAL RESERVE NOTES

r
/
/

IN CIRCULATION
300
: \
250

/
TOTAL
/ /
DEPOSITS
150

100
1934

I 93 3

31

^" AL
/

w

200




I

/
1

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

The trend of cash reserves continued definitely upward, reaching especially high levels in the late summer and early fall as a
result of funds temporarily held in the district in connection with
a security refunding operation. Despite a rise in total reserves
from 309 to 405 millions in the year, the bank's reserve ratio advanced only from 67.2 to 71.1 per cent owing to substantial expansion in both the Federal reserve note and deposit liabilities.
It was only in the last three months of the year that the average
ratio exceeded 70 per cent.
Unless otherwise indicated, the preceding references have been
to changes from December 31, 1934 to December 31, 1935. In
the following table averages are given for several of the principal
items contained in the statement of the bank:
Federal Reserve Bank of Philadelphia
(Dollar figures in millions)

Daily averages
1932

1933

1934

1935

Bill and security holdings:
Bills discounted
Bills bought..
Industrial advances
United States securities .
Other securities

$ 73
4
0

$ 45
4
0

$ 10
2

$

111
2

146
1

167

Total bills and securities

$190

$196

$179

$178

252
119
124
224
59.6%

246
121
135
228
60.0%

243
191
205
297
66.3%

244
235
257
345
68.8%

Federal reserve note circulation
Member bank reserve deposits
Total deposits..
Total cash reserves
Reserve ratio

*
*

1

*

4
173

* Less than half a million dollars.

Member bank reserves and related factors
Following pronounced accumulation during 1934, reserves of
member banks in this district continued to increase in 1935, although in somewhat smaller measure. Nor was the expansion in
the excess above legal requirements as large, as may be seen in
the following table. The change in the method of computing net
demand deposits subject to reserves provided for in the Banking
Act of 1935 tended to reduce requirements in the case of many
banks.
On December 31, 1935 reserve balances held at this bank
totaled 274 millions, as against 211 millions a year earlier. Analytical figures given in the accompanying table reveal that this rise



32

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia
Philadelphia
Federal Reserve District
(In millions of dollars)

Averages of daily figures
Dec. 1933

Dec. 1934

Dec. 1935

68
53

128
76

182
84

121

204

266

7
10

54
26

91
33

17

80

124

Reserves actually held by licensed
banks
Philadelphia banks
Country banks
All member banks
Excess above legal requirements
Philadelphia banks
Country banks
All member banks

was due largely to Government disbursements, which showed
an even greater excess over local receipts than in 1934. Transactions passing through the Treasurer's account at this bank indicate that larger sums were received in payment for new security
issues than were disbursed in the cash redemption of securities and
in interest. The net amount so received, however, was much
smaller than in 1934, constituting therefore a less substantial offset
to large net disbursements for other purposes, including relief.
Mint payments for gold, in effect a further item of Government
disbursement, also contributed to the funds available to the banks,
1934 changes that—•
Member bank reserve deposits
and related factors
Philadelphia Federal Reserve District
Added to Reduced
(In millions of dollars)
reserves
reserves
Items increases in which raise reserves
Reserve bank credit extended locally
Interdistrict commercial payments. .
Gold purchases (chiefly by mint)....
Treasury operations

+ 16
+104

Items increases in which reduce reserves
Currencv demand
"Other deposits" at reserve bank. . .
Unexpended capital funds of res. bank

- 7
- 15

-22
-36

Totals




+

Reduced
reserves

2

-59

+ 2
60
+82

33

Added to
reserves

+ 12
+ 140

142

Actual change in member bank reserve deposits

1935 changes that—

+25
+ 8

1
155

92

+63

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

MEMBER BANK RESERVES AND RELATED FACTORS
PHILADELPHIA FEDERAL RESERVE DISTRICT

MILLIONS

/vi

250
200
MEMBER BANK
RESERVE DE.POSITS
150
100
Related factors. Changes cumulated from Jan. 1,1932

MILLIONS

CURRENCY DEMAND * *

-

100

1932
193 3
* An increase tends to increase member bank reserves and vice versa.
* * An increase lends to reduce member bank reserves and vice versa.




34

9 3 4

193

5

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

while the only type of reserve bank credit which tended to raise
member bank reserve balances was an increase in industrial advances.
Several factors were operative which absorbed a portion of
the funds so supplied, tending therefore to restrict the increase in
reserves. Chief among these were a 25 million increase in currency demand, a rise of 8 millions in miscellaneous deposits at this
bank, and, largest of all, an adverse balance of payments of 59
millions in commercial and financial transactions with other districts. This unfavorable balance doubtless reflected security purchases in other markets by banks of this district and possibly
some flow of funds to other sections in payment for commodities
and services needed here to carry on projects financed by Government funds.
Condition of member banks
Continuance of deposit expansion over the greater part of 1935
was the most pronounced feature of member bank reports and
doubtless was caused largely by Government disbursements. Despite a drop in balances to the credit of the United States Government and trustees of the Postal Savings System, total deposits
increased from 2,382 millions to 2,629 millions, reflecting chiefly
a pronounced growth in demand deposits. This figure was the
highest for any call date since 1931, compared with 1,977 millions
at the low in 1933, and exceeded the 1929 average despite the reduction in the number of banks since that year.
A substantial part of the funds accumulated by the banks was
used to purchase securities. The increase in securities having the
Federal guarantee as to both principal and interest was 86 millions,
and in the case of miscellaneous securities was 65 millions. Expansion in these more than compensated for a decline from 505 to
482 millions in direct obligations of the United States Government
which was due in part to the retirement of bonds which had been
serving as collateral for issues of national bank notes. There was
a decline of 8 millions in open market loans, which include purchased paper and loans on securities to brokers and dealers in
New York City.
Loans made during the year failed to equal repayments and
amounts charged off, with the result that loans to customers on
the books of the banks declined from 962 to 905 millions. These
figures exclude loans to other banks. A decrease of 28 millions in
those made on stock and bond collateral, in the face of a sharp rise



35

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

in stock prices and advances in the bond market, suggests that
trading in securities was conducted largely within the resources of
Licensed member banks
Philadelphia Federal Reserve District
(000,000's omitted)

1934
Dec. 31

1935
Dec. 31

ASSETS
Loans on securities:
To brokers and dealers in New York City
To brokers and dealers elsewhere
To others (except banks)

22
18
306

9
18
278

Total loans on securities to others than bank:Acceptances and commercial paper bought. .
Loans on real estate
Loans to banks
Other loans

346
22
212
6
426

305
27
212
4
397

Total loans
United States Government securities
Securities fully guaranteed by U. S. Government
Other securities

$1,012
505
62
606

945
482
148
671

Total loans and investments.
Banking house, furniture and fixtures.
Other real estate owned
Reserve with Federal Reserve Bank. . .
Cash in vault
Balances with other banks
Checks and other cash items
Other assets

$2,185
88
55
211
42
255
96
34

,246
88
69
275
47
285
104
30

$2,966

5,144

991
999
93
276

$1,229
1,005
61
312

Total assets.
LIABILITIES
Deposits:
Demand (other than interbank)
Time (other than interbank)
United States
,
Interbank (demand and time)
Certified and officers' checks, cash letters of credit and travelers'
checks, etc

£2,382
73
2
30

36

$,144

656

Number of member banks.

37
161
212
48
24
1

2,966

Total liabilities

$2,629
0
1
31

31
164
215
41
28
—

Total deposits
National bank notes outstanding
Bills payable and rediscounts
Other liabilities
Capital account:
Preferred stock
Common stock
Surplus
Undivided profits—net
Reserves for contingencies
Retirement fund for preferred stock.




23

656

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

ALL MEMBER BANKS
PHILADELPHIA

FEDERAL

RESERVE

DISTRICT

(Call date figures; licensed banks only beginning June 30, 1933)

MILLIONS

TOTAL LOANS AND
2800

"
.

INVESTMENTS

y

••

V*

2600

\
*•/

2400

/

%

V

\.

*

i

1

TOTAL DE POSITS

\

2200

\

2000

•

1800

z
\

LOANS

j

1600
\
1400

\

1200

\

INVE STMENTS
>

800

600

BALANCE!> AT RESERVE BANK
AND OTH ER DOMESTIC BANKS

y

400

\

.

y

/

200

0
1929

1930




1931

1932

1933

1934

1935

1936

Twenty--first Annual Report, Federal Reserve Bank of Philadelphia

the purchasers and that the rising level of prices encouraged some
liquidation of borrowings previously incurred.
Loans on real estate changed little in the year. Inasmuch as
some have been converted into "Other real estate owned" by process
of foreclosure and in other instances there doubtless has been an
exchange of mortgages for bonds of the Home Owners' Loan Corporation, it is apparent that some new real estate loans were taken
on during the year.
Bank loans for the purpose of financing commerce and industry probably are to be found for the most part under the heading
"Other loans." A decline in these from 426 to 397 millions suggests the lack of an active demand for accommodation from business customers. Improved collections and the more rapid turnover of goods doubtless have helped to bring about some of this
decline, but it also seems quite likely that large disbursements of
the Treasury may have so improved the cash position of business
houses in numerous instances as to enable them to reduce somewhat their borrowings.
Records of the earnings and expenses of member banks in this
district not yet have been tabulated for the last half of 1935. Figures for the first half showed a net profit of nearly 3 millions after
charge-offs and depreciation, the first profit for any half year
since 1931 shown in the combined figures for all members.
Currency demand
Over most of the year seasonal changes in currency demand
were quite similar to those in 1934, but the general trend was
distinctly upward in contrast with the maintenance of a rather
even level in 1934. This was due in part to the fact that industrial
payrolls and trade were in greater volume this year.
Currency demand does not indicate exactly changes in the
amount of money in circulation within the district because of the
indeterminate amounts of cash that constantly are passing to and
fro over its borders. If totals of all kinds of money in circulation
within the district could be ascertained, there is little doubt that
they would exceed like figures for 1929, as do the national figures,
reflecting partly the fact that some of the money hoarded in the
years of banking difficulties has not yet been returned to the banks.
The year was marked by the passing of the national bank note
as an integral part of our currency. Early in 1935 the Treasury
gave notice that 2% Consols of 1930 and 2% Panama Canal loan



38

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

bonds, having the circulation privilege, would be retired in the
summer, and by legal limitation the circulation privilege attaching
to any bond of the United States bearing interest up to 3%% expired on July 22. Beginning in August the reserve banks, upon
request of the Treasury, returned to Washington for retirement
any such notes received by them, whether or not in condition for
further circulation.
No new issues of Federal reserve bank notes were made by
this bank during 1935. In March the bank returned over 10 millions of its bank notes to the Federal Reserve Agent. This operation, together with deposits previously made with the Treasury to
provide for retirement, completely eliminated the bank's liability
for such notes issued to it; any still in the hands of the public are
obligations of the Treasury.
The replacement of national bank notes and of Federal reserve
bank notes accounted for a part of the expansion from 240 to 271
millions during 1935 in Federal reserve notes of this bank in circulation. Replacement also was effected in part by the use of
silver certificates, of which 102 millions was received from the
Treasury by this bank in 1935 and 71 millions in 1934.
Federal reserve note issues and collateral
Federal Reserve Bank of Philadelphia
(000's omitted)
Notes received from comptroller
Notes on hand (held by Federal reserve agent)
Notes issued to bank (outstanding).. .
Collateral securing outstanding notes:
Gold certificate fund—Board of Governors.
Gold
Eligible paper
United States Government securities
Total collateral held

December 31
1933

1934

1935

$394,621
145,440

$394,661
132,340

$397,196
108,570

$249,181

$262,321

$288,626

$ 86,750
83,750
18,930
60,000

$223,000
0
830
40,000

$290,000
0
343
0

$249,430

$263,830

$290,343

The privilege of pledging direct obligations of the United
States as collateral for Federal reserve notes, subject to the authorization of the Board of Governors, as originally granted
in the Glass-Steagall Act of February 27, 1932, was to terminate
March 3, 1933, but was extended to March 3, 1934. By amendment in 1934 it was continued for another year with the proviso
that the President might prolong it for a further period of two



39

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

years. In a proclamation, dated February 14, 1935, he extended
the privilege to March 3, 1937.
Discount and interest rates

Open market money rates at New York, already low at the
beginning of 1935, in some cases were reduced further during the
first half of the year. The rate for ninety-day bankers' bills was
unchanged at 1/8 of one per cent per annum and prime commercial
paper dropped only from %-l to % of one per cent, but time and
call money were reduced from %-l and 1 per cent, respectively,
to ^4 of one per cent. Toward the close of October, however, advances were made in time money to 1 per cent and in call money
to % of one per cent. The average of rates on prime commercial
loans to customers, as reported by large Philadelphia banks, declined somewhat during the year.
On January 17 this bank reduced its rate for advances to and
rediscounts for members under sections 13 and 13a of the Federal
Reserve Act from 2 ^ to 2 per cent, a new low point. Section
10 (b) as contained in the Act at the opening of the year did not
continue in effect after March third; in November a rate of 2 V>
per cent was established for advances under Section 10 (b) as revised by the Banking Act of 1935. Rates on December 31 for
other classes of paper are given below:
Discounts for individuals, partnerships and corporations:
Under third paragraph of Sec. 13 of Federal Reserve Act (paper which
would be eligible for rediscount if presented by a member b a n k ) . . . .
Secured by direct obligations of the United States, under last paragraph of Sec. 13 of Federal Reserve Act
Rates on industrial advances:
Advances made direct to industrial or commercial organizations
Advances made to financing institutions—
On portion for which institution is obligated
On remaining portion
Commitments to make advances

6%
4%
4-6%
f 1% above
\ established
[discount rate
Jij-2%

* Same as to borrower; minimum of 4%.

Effective January 31, 1935 the rate of interest which member
banks might pay on time or savings deposits was reduced from 3
to 2^4 per cent by regulation of the Board of Governors of the
Federal Reserve System. Late in the year the Board established
the following maxima, on the basis of quarterly compounding, to
take effect January 1, 1936; these interest rates apply unless nonterminable contracts entered into prior to certain dates provide
otherwise:



40

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia
Savings deposits
2}/2%
Postal Savings deposits classified as time deposits
2J^ "
Time deposits (other than Postal Savings) having maturities of or
requiring written notice of—
Six months or more
2^ "
Ninety days to six months
2
Thirty days to ninety days
1 "

On October 4, 1935 the Banking Advisory Board of New Jersey adopted a regulation, which was approved by the Commissioner
of Banking and Insurance, providing that the maximum rate payable on time or savings deposits should not exceed 2 per cent, compounded quarterly. This regulation is to be effective January 1,
1936 and applies unless contracts entered into before October 4,
1935 provide otherwise and cannot be terminated by the bank.
The maximum set must be observed by national banks in that state
by virtue of Section 24 of the Federal Reserve Act.
Membership
At the beginning of 1935 member banks in this district numbered 656, of which 595 were national and 61 state institutions.
The end of the year shows the same total, but the distribution is
somewhat different—593 national and 63 state bank members.
This change in composition, in the case of banks under national
charter, reflects one conversion of a nonmember state bank into
a national bank, a consolidation, the absorption of one bank by
another, and one suspension caused primarily by a defalcation.
This suspension was followed promptly by the setting up of a new
national bank—which however does not have the status of a member—by the Federal Deposit Insurance Corporation so that guaranteed deposits up to $5,000 each might be made available quickly
to depositors.
One state bank member withdrew from the System, but this
was more than balanced by the entry of three nonmembers into
membership.
In June member banks held two-thirds of the deposits of all
banks in the district.
Fiduciary powers

During 1935 the number of national banks in this district
having fiduciary powers decreased from 257 to 256. Three banks
were granted full powers, one of which previously had exercised
them under restrictions, and another bank was given the privilege
of exercising full powers with restrictions. Four banks were re


41

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

moved from the list, three as a result of voluntary surrender and
one owing to suspension.
National banks having fiduciary
powers
Philadelphia Federal Reserve District

Number of banks having
Totals
Full powers

December 31:
1930
1931
1932.
1933
1934
1935

Partial powers

268
264
262
252
2401
241 f

29
25
23
20
17
15

297
289
285
272*
257
256

* Excludes 7 non-licensed banks which, at the end of 1933, were being liquidated by
conservators.
| Includes two banks granted powers with restrictions.

Departmental operations
Although the volume of discounts for member banks was at
a low ebb during 1935, there was a substantial expansion in the
volume of work of the discount and credit departments incident to
the handling of industrial loans. Increased activity also was reported in the transit and currency departments, while the volume
of mail and wire transfers of funds and of non-cash collections
diminished.
Departmental operations
Federal Reserve Bank of Philadelphia
(000's omitted)
Number of pieces or transactions handled:
Notes and bills discounted—
Pieces (including transactions under Sec. 13b)
Items received as collateral
Notes (currency) counted
Coins counted
Ordinary checks handled (including return items)
U. S. Government checks handled
Items payable at a future date (collection items)—
Coupons of United States and its agencies
All other
Transfers of funds*
U. S. Government direct obligations—issues, redemptions
and exchanges by fiscal agency department

1935

13
39
177,718
264,018
61,524
4,915

2
75
185,017
271,050
72,050
3,108

1,482
373
83

1,319
352
64

292

430

* Includes wire and mail transfers, but does not include group clearings transfers
which in 1935 numbered 490,000.

Owing chiefly to exchange operations for the Treasury, the



42

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

number of United States Government securities issued, redeemed
or exchanged by this bank as fiscal agent rose from 292,000 in 1934
to 430,000 in 1935, the greatest annual total in more than five
years. These figures do not include a substantial volume of securities handled for such Government agencies as the Home Owners
Loan Corporation, the Federal Farm Mortgage Corporation and
the Farm Credit Administration.
The vault department reports a rise in the average amount of
securities held in custody for member banks from $396,000,000 to
$503,000,000 and in cash and securities held for our own account,
the Treasury, and others from $969,000,000 to $1,084,000,000.
Purchases and sales handled by the securities department for others
rose from $280,000,000 to $456,000,000, and the number of transactions increased from 24,200 to 30,400.

Personnel and building
Board of directors
Name

Class

Residence

Group 1 Joseph Wayne, Jr., President,
Philadelphia National Bank,
Philadelphia, Pa.
Group 2 George W. Reily, President,
A
Harrisburg National Bank,
Harrisburg, Pa.
Group 3 J. B. Henning, President
Wyoming National Bank,
Tunkhannock, Pa.

Philadelphia, Pa.

Dec. 31, 1935

Harrisburg, Pa.

Dec. 31, 1936

Tunkhannock, Pa.

Dec. 31, 1937

Ardmore, Pa.
f Croup 1 C. Frederick C. Stout, Member,
John R. Evans & Company,
Philadelphia, Pa.
Croup 2 Arthur W. Sewall, President,
Philadelphia, Pa,
General Asphalt Company,
B
Philadelphia, Pa.
Group 3 J. Carl De La Cour, Vice President, Riverton, N. J.
Wm. S. Scull Company,
Camden, N. J.

y.

Richard L. Austin,
Chairman of the Board
Harry L. Cannon
J. David Stern

Term expires

Dec. 31, 1937
Dec. 31, 1935
Dec. 31, 1936

Philadelphia, Pa.

Dec. 31, 1935

Bridgeville, Del.
Haddonfield, N. J.

Dec. 31, 1937
Dec. 31, 1936

Almost with the advent of the year, January 8th, much sorrow
and great loss came to the bank in the sudden death of Alba B.
Johnson, who had served the institution as a director from its beginning, first as a class B director and later as class C, succeeding




43

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

Charles C. Harrison, deceased. Mr. Johnson had been actively
connected with one of the largest and most successful manufacturing concerns in the country, and after retiring from it he maintained close relations with business and philanthropic interests
that gave him wide contacts with affairs. In October J. David
Stern, newspaper publisher, was appointed by the Board of Governors of the Federal Reserve System to fill Mr. Johnson's unexpired term.
At the regular elections held in the fall Joseph Wayne, Jr.,
representing group 1 banks as a class A director, and Arthur W.
Sewall, representing group 2 banks as a class B director, were
unanimously reelected by their respective groups for terms of
three years from January 1, 1936.
By appointment of the Board of Governors of the Federal
Reserve System Richard L. Austin served as chairman of the
board and Federal reserve agent during 1935, and Arthur E. Post
and Ernest C. Hill as assistant Federal reserve agents.
The following officers were reappointed by the bank's board
of directors at its first meeting of the year: governor—George W.
Norris; deputy governors—William H. Hutt, John S. Sinclair;
deputy governor, cashier and secretary—C. A. Mcllhenny; assistant deputy governors—W. J. Davis, L. E. Donaldson; assistant
cashiers—J. M. Toy, S. R. Earl, G. K. Morris; comptroller—W. G.
McCreedy. The only change made during the year was the appointment of Mr. McCreedy as an assistant deputy governor in the
spring, whereupon he relinquished the office of comptroller, which
has not been filled. The number of employees, exclusive of officers,
rose from 866 to 900 during 1935.
Work progressed rapidly on the bank building. By the end
of the year construction had been largely completed.
Banking and business information
Our Department of Research and Statistics has continued to
provide currently economic data on business and banking conditions in this district for the administrative use of this bank, the
Board of Governors of the Federal Reserve System, member banks,
and the business community in general. The activity of this unit
has been broadened and intensified in order to meet the growing
demand for dependable statistics showing conditions which prevail
not only in the major fields of industry, service and banking but
also in the individual lines of business activity. The demand for
this type of information by geographic divisions has been especi-




44

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

ally urgent on the ground that in many instances it affords means
for comparisons in a more specific way than do the combined
figures for large industrial areas in different parts of the country.
The scope of this work was described in some detail in the
previous annual reports of this bank. But it may be reiterated
here that the amicable relationship and trust achieved over a
period of years between this bank and business in a spirit of good
will and co-operation has been a source of real satisfaction to all
those who are responsible for this type of economic and business
service. The appreciation on our part is all the greater because
individual establishments have continued giving us their private
statistical and other information on a purely voluntary basis.
We are equally thankful to all those agencies which have assisted us in making our information more complete and effective,
particularly to the Division of Research and Statistics of the Board
of Governors of the Federal Reserve System, the Bureau of the
Census, the Bureau of Labor Statistics, Central Statistical Board,
and the Department of Industrial Research of the Wharton School
of Finance and Commerce, University of Pennsylvania. The cooperation of these and many other agencies as well as the ready
assistance given us by member banks in this district have made
our task easier and the results of our work more useful.
Our library has continued to be an important part of this
bank and its service. It has accumulated valuable reference material consisting of official and private documents and many standard books on money, banking and credit as well as on general
economic subjects.




45

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

Indexes of business conditions
Philadelphia Federal Reserve District
Adjusted for seasonal variation
(1923-1925 average - 100)
Note: Indexes for earlier years are given in previous annual reports.
Coal mining
New
pasBuild- Freight
Indus- FacWhole- Retail senger
Crude ing con- car
trial
autooil
tract
sale
tory
produc- output Anthra- Bitumi- output awards load- sales
sales mobile
lion
regiscite nous
(value) ings
trations
1934
Jan. . .
Feb...
March.
April. .
May .
.
June..
July...
Aug.. .
Sept,. .
Oct....
Nov.. .
Dec...

66
70
74
73
73
72
69
68
65
67
69
74

61
66
68
70
70
70
66
67
62
65
66
71

82
89
109
73
76
68
63
50
62
53
64
72

56
62
77
68
67
66
61
57
56
56
56
58

345
314
334
343
358
365
361
357
362
358
374
385

43
36
33
31
30
30
25
25
25
32
36
38

59
61
63
60
61
63
57
52
52
51
53
57

73
73
74
76
83
81
80
76
72
75
71
72

55
55
71
65
70
69
62
62
69
66
61
67

38
54
60
75
71
79
89
81
69
71
64
93

1935
Jan....
Feb....
March.
April. .
May .
.
June .
.
July . .
Aug. .
.
Sept...
Oct....
Nov.. .
Dec. .
.

73
74
74
77
75
74
74
74
77
77
77
80

69
71
72
74
72
69
72
74
75
76
76
78

76
67
54
69
71
97
62
36
65
48
48
71

60
69
80
52
62
79
54
56
49
61
61
65

401
401
400
396
386
372
375
365
377
390
406
415

32
26
23
17
17
18
23
28
34
35
39
53

60
60
64
57
57
63
53
56
57
60
61
65

77
77
78
81
81
79
76
74
78
76
74
79

56
59
67
70
66
71
66
67
79
70
70
74

83
98
98
94
85
92
100
90
71
66
143
245

Seasonal factors
(Used in adjusting the actual indexes for seasonal changes.
equals 100)
Jan... .
Feb. ..
March.
April. .
May...
June...
July.. .
Aug.. .
Sept,. .
Oct....
Nov.. .
Dec. .
.

100
102
100
98
99
98
96
100
102
106
102
97

99
102
101
97
98
100
96
100
102
105
103
97




107
107
83
104
100
87
82
100
100
129
104
97

114
109
102
91
90
88
88
94
102
107
110
105

96
100
102
103
104
104
103
103
100
100
97
94
46

78
81
93
118
120
114
103
101
98
102
100
92

92
97
95
97
102
99
103
104
111
109
101
90

The average for the year

88
92
94
93
94
96
93
95
114
114
114
113

82
82
91
107
101
98
73
78
90
114
120
164

54
74
112
151
144
140
113
110
96
82
70
54

Twenty-first Annual Report, Federal Reserve Bank of Philadelphia

Indexes of business conditions
Philadelphia Federal Reserve District
Without adjustment for seasonal variation
(1923-1925 average = 100)
Coal mining
BuildIndus- FacCrude ing con- Freight Whole- Retail
car
trial
sale
oil
tory
loadsales
produc- output Anthra- Bitumi- output tract
sales
awards
(value) ings
nous
cite
tion

New
pas.
senger
automobile
registrations

Annual
averages
1923. .
1924. .
1925. .
1926. .
1927. .
1928. .
1929. .
1930 . .
1931. .
1932. .
1933. .
1934. .
1935. .

104
96
100
108
104
102
110
98
79
63
66
70
75

102
95
103
108
104
102
111
97
77
61
64
67
73

115
109
76
104
99
93
91
86
74
62
61
71
63

117
89
94
105
91
90
98
85
67
51
54
62
62

90
93
116
143
165
175
230
276
262
295
302
357
392

78
106
116
135
160
164
136
108
65
34
22
32
28

104
96
100
106
101
102
106
90
71
52
55
57
59

104
99
97
98
94
94
98
85
73
59
63
75
77

99
99
102
106
102
101
100
91
80
61
58
65
68

97
99
104
123
104
111
131
99
80
51
62
73
99

1934
Jan... .
Feb....
March.
April. .
May...
June...
July...
Aug. ..
Sept.. .
Oct... .
Nov.. .
Dec. . .

66
72
73
72
72
71
66
68
67
71
70
71

61
67
69
68
69
69
63
67
64
68
68
68

89
95
89
76
76
60
52
50
62
68
65
70

64
67
79
62
60
58
54
54
57
60
62
61

332
314
340
353
372
380
372
368
362
358
363
362

34
29
30
36
36
34
26
25
24
33
36
35

55
59
61
58
62
63
58
54
57
55
54
52

64
67
69
70
78
77
75
71
82
85
80
81

45
45
70
65
70
67
45
49
62
75
74
110

20
40
67
113
103
111
101
89
66
58
45
50

1935
Jan... .
Feb....
March.
April. .
May...
June...
July...
Aug....
Sept.. .
Oct... .
Nov.. .
Dec. ..

73
75
74
75
74
73
70
73
78
81
79
78

68
72
73
72
71
69
69
73
77
80
78
76

82
72
45
72
71
85
51
36
65
62
50
69

69
75
82
47
56
69
48
53
50
65
67
69

385
401
408
408
401
387
386
376
377
390
394
390

25
21
21
20
20
20
24
28
34
36
39
49

55
58
61
55
58
62
55
58
63
65
62
59

68
70
72
75
76
75
71
70
88
87
84
88

45
48
61
74
67
69
48
52
71
79
84
121

45
72
110
142
123
128
113
99
68
54
100
132




47

Tiventy-first Annual Report, Federal Reserve Bank of Philadelphia

Indexes of factory employment, payrolls and
employee-hours in Pennsylvania
Without adjustment for seasonal variation
Employment

(1923-1925 average = 100)

Year Jan. Feb. Mar. Apr. May June July Aug. Sept, Oct. Nov. Dec. Avg.
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933
1934
1935

105
101
97
99
98
92
94
96
78
68
59
68
74

107
102
99
101
98
94
97
96
79
68
61
72
76

108
102
99
100
99
94
97
96
79
67
58
75
77

107
100
98
99
97
91
98
95
79
65
58
76
76

108
97
98
98
96
91
98
93
77
62
61
75
75

109
93
97
98
96
92
99
91
74
61
65
76
75

108
90
95
97
94
91
99
86
71
58
67
74
75

107
90
96
98
94
93
100
85
72
59
72
74
77

Payrolls
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933
1934
1935

99 102
100 104
98 100
101 104
100 103
90 96
95 102
96 98
67 69
49 49
34 35
47 53
58 62

107
92
98
98
68
54
41
49
57

107
94
98
101
94
94
102
85
72
65
75
75
79

106
94
98
101
94
95
100
84
71
64
74
74
79

103
96
99
100
93
94
98
81
70
62
71
75
79

107
96
98
99
96
93
98
89
75
63
66
74
77

(1923-1925 average = 100)
107
105
102
106
104
96
103
98
70
48
33
58
64

106
102
99
103
101
89
104
96
70
44
34
59
63

113
97
99
101
98
92
105
92
67
40
38
63
62

113
89
96
101
98
92
104
87
62
38
43
62
60

106
82
93
97
91
86
99
78
57
34
46
55
58

107
86
95
99
95
93
105
79
58
35
54
57
64

111
101
107
100
70
54
42
55
61

107
89
94
104
92
93
103
79
56
38
54
53
65

111
94
102
108
95
98
107
80
56
41
56
57
70

106
93
99
105
94
97
103
74
52
40
53
57
68

105
100
103
106
94
97
98
71
53
38
51
58
68

107
95
98
103
97
93
102
86
61
41
44
57
64

=
(1927-1928 average = 100)

Employee-hours
1927
1928
1929
1930
1931
1932
1933
1934
1935

107
92
96
100
95
94
101
86
72
63
75
73
78

112
101
108
99
70
53
39
59
63




109
94
110
99
72
49
41
60
62

107
98
109
96
67
45
47
65
62

97
90
106
82
57
38
61
56
58

103
96
109
90
62
43
56
65
60

48

100
98
108
82
58
40
64
58
64

98
96
106
82
56
44
59
52
65

98
101
109
81
58
49
59
56
71

97
100
105
76
55
47
55
55
69

97
100
99
72
56
45
54
57
69

103
97
106
88
62
47
51
57
64

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