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THE BUSINESS REVIEW
THIRD FEDERAL
PHILADELPHIA
RESERVE DISTRICT
FEBRUARY 2, i93i
By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent
FEDERAL RESERVE BANK of PHILADELPHIA
Business and Financial Conditions in the United States
IN DUST RIAL PR0C UCTI0N
/\
Employment and wage payments.
Employment in manufacturing indus
tries was reduced further by 2.5 per
cent between the middle of November
and the middle of December, and fac
tory payrolls also declined. The largest
reductions in working forces were in
the canning, lumber, steel, and wear
ing apparel industries. There was lit
tle change in employment in railroad
car shops, and in cotton and silk mills,
while in the automobile, meat-pack
ing, and paper and printing industries
working forces were increased slightly.
_ In early January, following year-end
inventory periods, reports indicate in
creased employment in certain indus
tries, particularly automobile, steel and
railroads.
Distribution- Sales
stores
increased
in
of department
December by
MILLIONS or DOLLARS
RESERVE BANK CREDIT
AND MONEY IN CIRCULATION
slightly less than the amount which is
usual for the holiday season, accord
ing to preliminary reports to the Fed
eral reserve banks. In December, as
in earlier months of the year, the
volume of sales probably reflected the
influence of declining retail prices.
Distribution of commodities by freight
showed a further decline for the
month of December as a whole.
Value of American exports to for
eign countries was smaller in Decem
ber than in November, and approxi
mately 35 per cent below that of DeMONEY RATES IN N EW YORK
JU— '
y
f
./|j_
u
V
\
11
\tz
I
lf
Industrial production
was further reduced during Decem
ber, and the Federal Reserve Board’s
index, which makes allowance for
usual seasonal changes, showed a de
cline of over 2 per cent. Output of
steel and iron, textiles, petroleum, ce
ment and copper was substantially cur
tailed.
Activity in meat-packing
plants and at anthracite mines in
creased in December, and in the au
tomobile industry there was an in
crease in output, reflecting the intro
duction of new models. After the turn
of the year, automobile output in
creased further, and steel plants were
more active.
Construction contracts awarded dur
ing December were in about the same
volume as in November, according to
Production.
reports of the F. W. Dodge Corpora
tion. There were slight declines,
partly seasonal in nature, in contracts
for residential and commercial con
struction, while public works and util
ity awards increased somewhat.
ill
Production and factory employment
declined further in December. Whole
sale prices decreased during the first
half of the month but thereafter were
generally steadier. Conditions in the
money market remained easy and in
January money rates reached new low
levels.
te
cio/ Paper
Bank Discoun t Rote
once Rote
1926
_______
1927
1928
1929
1930
Monthly rates in the open market in New
York: commercial paper rate on 4 to 6 month
paper. Acceptance rate on 90-day bankers’
acceptances. Latest figures are averages of
first 20 days in January.
CURVE 2
ji-----------------
WHC LESALE P RICES
Reserve Bank Credit
1k
'N
Money in Circulation
60
Index number of production of manufactures
and minerals combined, adjusted for seasonal
variations (1923-1925 average =100). Latest
figure December, 82.
Monthly averages of daily figures. Latest
figures are averages of first 19 days in January.
Index of United States Bureau of Labor
Statistics (1926 —100, base adopted by Bureau).
Latest figure December, 78.4.
Page One
cember 1929, the decrease reflecting
in part the decline in wholesale prices.
Wholesale prices.
Wholesale prices
of commodities declined sharply in the
first half of December, while in the
following four weeks average fluctua
tions were relatively small. For the
month of December as a whole, there
were large decreases in prices of corn,
hogs, cotton, hides, and lumber, while
prices of wheat, beef, and silk aver
aged somewhat higher than in No
vember.
During the first two weeks in Janu
ary, prices of corn, sugar, and silk in
creased, and the price of wheat in
American markets remained fairly
stable. Silver prices reached new low
levels.
Bank credit and money rates.
Loans
and investments of reporting member than in 1929, in January 1931 was
banks declined in the four-week period above the level of a year ago. In
ending January 14, reflecting further the following two weeks the return
liquidation of security loans as well flow of currency was somewhat
as a reduction in “all other” loans and larger than usual, indicating a return
of part of the extra currency which
in investments.
Changes in the position of reserve had been called into use in December.
Money rates in the open market
banks in recent weeks reflected largely
changes in the demand for currency. continued at low levels during Decem
In December this demand increased ber and declined further in the first
more than is usual for the season, half of January.
The discount rate at the Federal
owing to the withdrawal of cash by
banks and by the public in districts Reserve Bank of New York was re
where there were important bank fail duced to 2 per cent on December 24,
ures. In the two weeks after Christ and in the following three weeks the
mas the return flow of currency from rate at the Federal Reserve Bank of
circulation was smaller than the usual Boston was reduced to 2>4 per cent,
seasonal amount and the result was and rates at the Federal Reserve
that money in circulation, which Banks of Cleveland, St. Louis, Chi
during the larger part of 1930 had cago, Atlanta, and San Francisco, to
been in considerably smaller volume 3 per cent.
Business and Financial Conditions in the
Philadelphia Federal Reserve District
Industrial production and employ
ment in this district in December de
clined more extensively than usual,
and there was little change for the
better in early January. The present
rate of productive and mercantile
activity remains the lowest in many
years. The banking situation con
tinues quite favorable to business,
money rates being the lowest in years
and the supply of funds for com
mercial needs remaining ample. But
the business demand for bank credit,
while showing some gain lately, has
been slow and less active than in re
cent years.
Manufacturing. The
demand for
manufactured products has been ex
ceptionally dull and sales in the ag
gregate have declined since the middle
of last month. Orders on the books
of the reporting factories also have
decreased and are substantially smaller
than a year ago. As a result, opera
tions have been curtailed further.
Factory employment and payrolls
in this section were noticeably smaller
in December than November. In
comparison with December 1929, de
clines in employment amounted to 15
per cent in Pennsylvania, 26 per cent
in Delaware, and 10 per cent in New
Jersey; recessions in wage payments
were 29 per cent in Pennsylvania, 30
per cent in Delaware, and 16 per cent
Page Two
in New Jersey. Translated into actual demand fo# workers by employers
figures, it appears that Pennsylvania continued downward, so that in De
factories employed about 146,000 cember it reached the lowest level
fewer wage earners in December 1930 since the depression of 1921.
The decline in productive activity
than December 1929, and their monthly
payroll was $31,000,000 smaller; Dela during December was larger than
ware factories employed 6,400 less usual and was relatively greater than
workers with the payroll reduced by in the country as a whole, so that the
$750,000; and New Jersey showed a rate of output remained the lowest in
drop of 36,000 wage earners and the several years. Operations in early
payroll was decreased by $7,000,000. January showed further curtailment
For the year as a whole, the estimate except for some gains in a few lines
shows that the monthly average of of manufacture.
Activity in iron and steel products
factory employment in the three states
declined by about 130,000 wage earn was at an exceptionally low rate in
ers and the average monthly payroll December, but since then there has
was about $26,000,
000 smaller than in
WAGE PAYMENTS
1929.
all manufacturing industries
The decline in
1923—25AVG-I00
working time has
been continuous
since late 1929, ex
cept for brief halts
VNEW JERSEY
in the spring and
fall seasons. The
index of employeehours worked in
Pennsylvania fac
tories in December
PENNSYLVANIAstood at the lowest
level in the past
four years, being
about one-third be
low the high peak
1930
of that period. The
\ RON
and STEEL— productive activity
PHILADELPHIA
FEDERAL RESERVE
TEXTILE
DISTRICT
UNITED
FIBERS
STATES
1923- 25AVG.-I00
125
STEEL-'nj
100
75
COTTON
/
l
\
ii"
S
/'
V
\
\
A
VPIG
WOOL
V {\
\
\
s'
RON
\
50
\
5.00
25
. . , ADJU' TED FOR
o
1927'
1928
EASONAL VARIATIONS
1929
Source: Iron Age
been some indication of an upturn in
response to advance orders for fabri
cated metal products. This is also
true in some lines of the transporta
tion equipment group. Prices continue
to show weakness, although quotations
for finished steel and steel scrap have
advanced slightly since the middle of
last month.
Noticeable decreases are reported in
the output of textile products. Analy
sis of the latest returns show some
improvement in business sentiment but
they fail to indicate any marked better
ment either in the volume of demand
or production. Textile prices have
risen fractionally since December 20,
owing to advances in cotton and silk
fibers and some of their products.
Quotations for domestic and foreign
wool fibers have declined, the situa
tion in the Australian market being
somewhat aggravated by the state of
the exchange rates now prevailing.
Appreciable reductions are also noted
in the price of rayon fibers.
With the exception of gains in con
fectionery, and meat packing and
slaughtering, the food industry shows
a reduction in output, so that the ad
justed index in December was the low
est in the past eight years. Unusual
declines also occurred in the output
of tobacco products.
The output of leather and leather
products has continued to decline
sharply even after adjustment for sea
sonal variations is made; the index in
December was at the lowest level since
early 1925. Daily production of shoes
declined drastically for the third suc
cessive month; in early January, how
ever, there was some improvement in
unfilled orders. The hide and skin
1930
1931
1928
Sources: Department of Commerce, Fairchild Textile Price Index, Silk
Association <>f America, Inc.
December, 1930
Percentage
change since
BUSINESS INDICATORS
Philadelphia Federal Reserve District
Amount
Nov.,
1930
+36.7
+38.2
+52.]
+25.1
+ 9.4
+17.8
-11.5
-11.8
-12.8
- 4.8
-14.5
-20.8
$288,998 - 0.3
$3,184 -15.4
$54,887 - 3.2
$10,158 -18.7
$25,025 + 9.7
$103,872 - 1.1
$57,822 - 5.c
$23,682 +48. £
$10,368 -14.9
Retail trade*—estimated net sales (153) stores.
Department (63).....................................................
Men’s apparel (21)......................................... .. . ’ [
Women’s apparel (17)...................................
Shoe (37)....................................................................
Credit (15)................................................................
Dec.,
1929
-17.5
-28.9
-11.9
-17.9
-33.8
- 9.0
-21.8
-24.8
-24.5
$1,400,000
$1,219,700
$35,600
$108,300
$13,900
$22,500
Wholesale trade*—net sales (123 firms).
Boots and shoes (5).................................
Drugs (10)....................................................
Dry goods (11)............... ............................
Electrical supplies (9)...............................
Groceries (32)..............................................
Hardware (21)........................................ ’'
Jewelry (9)...................................................
Paper (26)................................................ .. ]
Productive activity*—
Employment—835 plants in Penna...................................................
Wage payments (weekly average).....................................................
Shoe productionf—82 factories..................................................... ’ .
Hosiery productionf—134 mills...........................................................
Underwear production!—52 mills.......................................................
Wool consumption!—68 mills..............................................................
Active cotton spindle hours (Penna.)................ ..
. ... ...
Pig iron production..................................................................................
Iron casting production—32 foundries............................................ !
Steel casting production—11 foundries..............................................
Anthracite........................................................................................’
'
Bituminous coal (Penna.).......................... I'.'.'.*.'.'.!!".!!!!'.!! !
Petroleum receipts at Port of Philadelphia—domestic and foreign
Cement........................... ..................... ....................................
Electric power output—12 systems...............
279,029
$6,321,617
31,397
prs.
doz. prs.
54,864
doz. pcs.
9,253
lbs.
149,089
581,231
3,876
tons
136
tons
169
tons
236,500
tons
383,200
tons
bbls.
42,500
bbls.
62,500
KWH
18,417,300
- 3.6
- 6.C
-15.6
-18.3
-31.3
-22.7
- 9.9
-20.1
-12.3
-14.6
+ 4.5
- 5.5
-21.6
-21.6
+ 3.1
+ 2.5
-58.1
-35.2
-41.5
-19.9
-16.5
- 4.7
-21.8
- 6.5
Financial and credit—
Debits (check payments)—18 cities........................................................
Loans and investments—middle of January—91 member banks.
Bills discounted held by F. R. B. of Phila. (daily average).............
Bankers’ acceptances outstanding—end of month.............................
Commercial paper sales—4 dealers.........................................................
Commercial failures—number..................................... ..
Commercial failures—liabilities........................................
$2,604,385,000
$1,685,100,000
$27,500,000
$24,589,000
$2,970,000
129
$4,550,492
+28.2
- 0.9
+40.3
- 3.3
-37.4
+38.7
+11.9
-16.9
+ 6.3
-65.7
- 4.1
+12.9
+65.4
+82.7
$2,157,574
$18,976,300
4,133
$19,941,382
-76.4
+50.0
+ 7.5
+65.1
-71.7
+46.8
-18.0
+28.8
Building and real estate—
Building permits—16 cities........................................................................
Building contracts awarded.............................
.. . ..
Number of real estate deeds recorded (Philadelphia county) . . . . .
Value of mortgages recorded (Philadelphia county)..........................
Sheriff sale—number of writs issued for January—(Philadelphia
county)......................................................................................................
Miscellaneous—
Freight car loadings (Allegheny district)......................
Tonnage of vessels (Port of Philadelphia)................ .. .
Sales of life insurance (Penna., N. J., and Del.)..........
Automobile sales registrations of new passenger cars.
* Daily average of monthly figures.
1,584
tons
615,337
4,224,608
$100,943,000
6,463
-15.2
-29.0
+29.3 +28.8
- 5.9
+ 6.1
+12.3
+ 9.8
-17.3
- 0.6
- 8.7
-23.4
f Bureau of the Census preliminary figures.
Page Three
HOSIERY
CONTRACTS AWARDED-CUMULATIVE
PRODUCTION
PHILA. FED.
PHILADELPHIA FEDERAL RESERVE DISTRICT
PERCENT
RES. DIST.
TOTAL
FULL
FASHIONED
1929
1927
JFMAMJJA50ND
1930
Source: F. W. Dodge Corporation
Source: Bureau of the Census
market remains quiet, though several
reports indicate that lately there have
been some gains over the past three
months. Prices generally have de
clined further.
The paper and printing industry re
ports a slight increase in the rate of
operation. Building materials, on the
other hand, show exceptionally large
declines in output, so that the adjusted
index in December was only about 50
per cent of the 1923-25 average.
After rising in November, the con
sumption of electrical energy by in
dustries dropped sharply. Such in
crease in the output of electricity as
occurred in the month was due chiefly
to seasonal demand for lighting pur
poses and for power by street cars
and railroads. Comparisons follow:
sion is not unusual at the turn of the
year. Contract awards, on the con
trary, were about one-half larger
than in November and in December
1929. Daily awards in early January,
however, were substantially smaller
than in the previous month and a year
before.
Contracts awarded
1930
Philadelphia Federal
(000’s
Reserve District
omitted)
Per cent change
from
1929
1925-28
average
$130,478
2,916
3,746
4,335
3,620
7,278
— 11.6
-64.8
+56.0
-67.9
-67.6
-23.3
-34.0
-54.6
-20.1
-50.6
-54.1
+24.1
Total for district... $329,192
-18.1
-25.6
Reading........................
Scranton.......................
Camden........................
Trenton........................
Wilmington.................
Source: F. W. Dodge Corporation
December, 1930
(Daily average)
Electric power
Philadelphia Federal Reserve
District
12 systems
Change Change
from
from
Nov.,
Dec,,
1930
1929
Per cent Per cent
+ 4.6
Street cars and railroads. .
- 0.2
- 6.5
-79.8
+26.0
- 1.1
Residential and commercial
+ 3.1
+62.9
+ 0.4
+ 2.7
- 8.5
+12.0
+10.6
+12.2
- 6.6
+12.9
+ 2.9
- 9.1*
-46.4
- 6.3
+ 8.8
+ 4.3
+ 9.4
-11.3
-14.5
+10.4
-15.2*
+ ,7
♦Working days average; other items are com
puted on calendar days.
Building and real estate. Building
operations in December declined fur
ther as indicated by employment and
payrolls in this section, but this reces
Page Four
J FMAMJ JASOND
The value of contracts in 1930 de
clined considerably from that of the
previous year and from 1928, which
was the peak year in the last decade,
so that last year’s dollar volume was
the lowest since 1923. This decline
was due partly to lower prices and
partly to conditions within the build
ing industry as well as to the general
business situation. The sharpest drop
occurred in contracts for residential
buildings, while public works and
utilities was the only important class
that showed gains over 1928 and 1929.
The proposed expenditure under
permits issued in eighteen cities de
clined further. For the year as a
whole, the value of building permits
was materially smaller than in several
years past.
The real estate market, while con
tinuing at a relatively low rate, showed
some improvement between November
and December. Both the number of
deeds and the value of mortgages re
corded in Philadelphia showed in
creases in the month. Compared with
a year ago, mortgages also increased
noticeably, whereas the number of
deeds declined further. Writs issued
in December for sheriff’s sale of prop
erty in Philadelphia reached the high
est monthly total in the past twelve
years.
Coal. Colder weather in December
served to strengthen the anthracite
market. The daily output of collieries
increased and the total production in
the month of 6,150,000 tons was larger
than in November, although it was no
ticeably smaller than in the same pe
riod of last year. In the first fort
night of January, the weekly produc
tion of collieries increased further,
but failed to equal the output for the
corresponding two weeks of a year
earlier.
Wholesale prices of Pennsylvania
anthracite continue steady and since
the middle of 1930 they have been be
low the level of a year before. This
reduction has also been reflected in
the average of retail prices for the
country as a whole. In Philadelphia,
on the other hand, retail quotations
for anthracite, as measured by stove
and chestnut sizes, since March have
been above the 1929 level and in No
vember were about 4 per cent higher
than in the same month of 1929, when
computed on the basis of tons of uni
form weights.
Reflecting further the light demand
from industry, the production of Penn
sylvania bituminous coal remained
small during December. Although the
DEPARTMENT
STORES
COST
PhILA. FED. RES. DIST.
PERCENT
SEASONALLY ADJUSTED
of
LIVING
INDEX NUMBERS
ITEJ 5
STOCKS
DEC.
1923-25 AVG.—100
1926
1927
1929
Source: Bureau of Labor Statistics
total production in the month of 9,
964,000 tons was slightly larger than
in November, the daily output of col
lieries continued to decline and was
noticeably smaller than a month and
year ago. Prices declined noticeably
between November and December and
continued downward in early January.
Distribution. Wholesale business in the
aggregate was slightly smaller in De
cember than November, the largest de
clines occurring in the sale of dry
goods, shoes, and paper; sales of elec
trical supplies and jewelry, on the
other hand, showed substantial gains.
In comparison with a year ago, all
lines reported smaller sales, the de
cline in the total value being 18 per
cent. As indicated by the table on page
seven, sales for the year as a whole
were less than in 1929, declines vary
ing from 2 per cent in drugs to 43 per
cent in electrical supplies. Since these
sales are reported in dollars, the de
cline reflected, as in earlier months,
lower prices, the general level of whole
sale prices being about 17 per cent
lower in December 1930 than 1929.
Business in early January was only
fair at best; reports showing further
declines outnumbered those reporting
increases. Dealers’ stocks decreased
in the month and were noticeably
smaller than at the end of 1929. Col
lections generally increased in Decem
ber but were appreciably smaller than
in the same month of the previous
year.
Retail sales on the daily basis in
December increased by about the usual
seasonal percentage. The largest gains
were reported by men’s apparel and
department stores. In comparison
with December 1929, the value of
retail sales by department, apparel,
shoe and credit stores was 12 per cent
smaller. Dollar sales for the year as
a whole were 8 per cent less than in
1929. This unfavorable comparison
with the previous year is due partly
to reductions in prices which, though
less rapidly, followed the downward
trend of wholesale quotations.
Early reports covering the first fort
night of January indicate that retail
trade was rather quiet as is usually
the case immediately after the holiday
activity; nevertheless, clearance sales
are said to have compared rather well
in point of quantity sold with other
years. Stocks at retail establishments
declined sharply in December and
were 11 per cent smaller than at the
end of 1929.
Railroad shipments of commodities
in this section declined less than usual;
in 1930 they were about 15 per cent
smaller than in 1929 and 12 per cent
smaller than in 1928. The movement
of milk to the Philadelphia area
showed a gain over November. The
quantity of milk and cream shipped in
1930 almost equalled that of the pre
ceding year. A slight increase in the
shipment of milk by truck was offset
by a corresponding decline in the de
liveries by rail.
Foreign trade at the port of Phila
delphia was smaller in 1930 than 1929.
The physical volume of imports of
thirty commodities declined almost 5
per cent and exports of twenty-three
commodities decreased 14 per cent.
Sales of new passenger automobiles
increased from November to Decem
ber instead of declining as in other
years. In comparison with 1929,
registrations of new cars in this dis
trict declined 24 per cent and the de
cline from 1928 amounted to 11 per
cent. A somewhat different develop
ment occurred in the market for
used cars. In Pennsylvania, for ex
ample, registrations of used automo
biles were 7 per cent greater in 1930
than 1929, while those of new cars
declined almost 26 per cent.
Life insurance sales increased sea
sonally by 12 per cent, although they
were 9 per cent smaller than in De
cember 1929. For the year as a whole,
this district showed a drop of one per
cent, whereas the decline for the coun
try amounted to 4 per cent.
Cost of living. The cost of living in
Philadelphia and Scranton, as well
as in the United States, was about 6
per cent lower in December 1930 than
1929, as shown by the accompanying
tables and chart. Percentage declines
in specific items in Philadelphia were
as follows: food, 13.9; clothing, 3.7;
rent, 3.4; furniture and furnishings,
5.1. Fuel and light, on the contrary,
showed an increase of 5.1 per cent.
Changes in the cost of living in se
lected cities follow:
December, 1930
—per cent decrease from—
Territory
June,
1920
December,
1929
June,
1930
Philadelphia. . .
Scranton..............
Boston..................
Baltimore............
Cleveland............
Detroit.................
23.0
21.1
24.4
22.6
24.6
31.5
6.0
6.1
5.5
5.3
4.6
9.1
2.7
3.2
2.4
3.4
4.1
6.2
U. S. (avg. 32
cities)...........
25.8
6.2
3.5
Source: Bureau of Labor Statistics
Page Five
BILLS
FEDERAL RESERVE
DISCOUNTED
BANK
FOR
of
PHILADELPHIA
MILLIONS
OF
DOLLARS
EXECUTED BY BANKS IN PhlLA. DISTRICT
PHILA. BANKS
FOR BANKS OUTSIDE
OF PHILA.
1930
928
In comparison with December 1914,
the cost of living in Philadelphia at
the end of 1930 was relatively higher
than the average for thirty-two cities
of the United States.
Items included
in the
cost of living index
Per cent increase from
Dec., 1914, to
Dec., 1930
32 cities
Philadel
phia
Food........................................
Clothing.................................
Rent........................................
Fuel and light......................
House furnishing goods .. .
Miscellaneous.......................
30.7
51.5
46.5
73.3
81 .1
102.0
34.4
64.9
51.2
95.8
75.3
120.7
All items............................
56.0
64.5
Source: Bureau of Labor Statistics
Financial conditions. During- 1930
there was a substantial reduction in
borrowings from this bank and a rise
in its reserve ratio to an average in
excess of 80 per cent. Member banks
in Philadelphia reported the rapid ac
cumulation of deposits, a decrease in
loans and large expansion in their
holdings of investments. Accompany
ing this was a decline in rates charged
on commercial loans to prime cus
tomers, and a reduction in the discount
rate of the Federal Reserve Bank
from 5 to 3 J4 per cent, the rate now
in effect. These conditions, resulting
largely from recessions in business ac
tivity and in prices, indicate that the
banking situation is distinctly favor
able to business recovery.
Changes in the banking figures
since the middle of December are
linked closely with fluctuations in the
demand for currency. Normally cur
rency demand is active over most of
December owing to the holiday trade.
Last month, following the closing of a
Page Six
nonmember bank, the call for cur
rency was unusually large. The fig
ures of this bank indicate that payments
exceeded receipts by 40 millions dur
ing the week ended December 24; in
neither of the two years preceding was
the excess of payments as much as
10 millions in the corresponding week.
This exceptional demand for cur
rency was promptly met through the
facilities of the Federal Reserve Bank.
Although the banks also had to meet
heavy payments of income taxes early
in the same week, they found it neces
sary to increase their borrowings from
the reserve bank by only 16 millions,
for large sums were transferred from
other districts, giving this bank a very
favorable balance in the interdistrict
settlements. During the four weeks
following, currency returned from
circulation, although not to the extent
that might have been expected in view
of the preceding increase. The re
turn flow was sufficient, however, to
enable the banks to megt an unfavora
ble balance in the settlements and to
pay off a substantial part of their bor
rowings from the reserve bank.
On January 21 bills discounted
held by this bank totaled 26 millions,
slightly more than on December 17,
but only about half of the borrowings
of member banks a year ago. The
reserve ratio has declined from 85.5 to
83.4 per cent in the last five weeks.
The deposits of member banks in
Philadelphia, Camden, Scranton, and
Wilmington have continued in large
volume during the past month. Al
though time and United States de
posits declined between December 17
and January 21, net demand deposits
climbed to high points. Amounts
held on deposit for other banks rose
from 230 to 253 millions; in view of
the low level of open-market rates,
it is not surprising to find that the
reporting banks in turn show an in
crease from 87 to 139 millions in bal
ances with other banks.
The outstanding credit of the re
porting banks declined from 1,314 to
1,308 millions; diverse tendencies in
the various classes of loans and invest
ments are brought into relief in the
following table:
Weekly reporting member
hanks
(000,000’s omitted)
Dec.
17
Loans on securities................. $
Bought commercial paper
and bankers’ acceptances.
Other loans and discounts . .
Investments.............................
Dec.
31
Jan.
21
452 $
476 $
463
45
381
436
35
372
408
31
392
422
Total loans and investments............................ *1,314 *1,291 *1,308
Investment holdings were at a high
point on December 17; the decline
during the last two weeks of 1930 was
entirely in United States securities, as
other issues rose slightly. This trend
was reversed in the three weeks fol
lowing; the banks largely replaced the
government securities but permitted
holdings of other securities to decline
somewhat.
Sales of commercial paper usually
do not reach large totals in the last
91 banks in 20 cities
(000,000’s omitted)
Jan. 15, Jan. 14,
1931
1930
Loans on securities. .
Other loans and discounts..................
Investments................
$
Total loans and investments...........
Net demand deposits.
Time deposits.............
598
*
Changes
568
-S 30
595
392
586
531
9
+ 139
SI,585
842
479
$1,685
906
555
+$100
+ 64
+ 76
month of the year
and December
1930 was no ex
ception to this.
The amount sold
by four report
ing dealers was
$2,970,000, t h e
smallest for any
month of 1930.
Sales to—
paper sales
(Four dealers)
City
banks
Employment
December, 1930
Total sales
Country
banks
1930—Sept. .. $4,685,000 $2,767,500 $7,452,500
Oct.... 3,165,000 2.827.500 5.992.500
Nov. . . 3.165.000 1.582.500 4.747.500
Dec___ 1.705.000 1,265,000 2.970.000
1929—Dec....
495,000 2.135.500 2.630.500
1928—Dec___
643,500 1.722.500 2.366.000
Percentage change
Net sales: 1930,
compared with
1929
Retail trade
Philadelphia Federal
Reserve District
Kate ot
turnoveryear
Stocks: Dec. 31,
1930, compared
with
Dec.
Twelve
months
Dec. 31, Nov. 30, 1929 1930
1929
1930
All reporting stores.................
-11.5
- 7.9
-11.2
-19.0 3.98 3.98
Department...............................
in Philadelphia....................
outside Philadelphia...........
Men’s apparel..........................
in Philadelphia....................
outside Philadelphia..........
W omen’s apparel.....................
in Philadelphia....................
outside Philadelphia..........
Shoe.............................................
Credit..........................................
-11.8
-12.3
-10.6
-12.8
-16.0
-10.5
- 4.8
- 2.7
-17.3
-14.5
-20.8
- 8.1
- 7.9
- 8.6
-10.2
-11.1
-10.2
-13.1
- 9.5
-18.9
-18.6
-19.8
-13.6
3.96
4.36
3.17
2.62
3.98
4.38
3.20
2.36
- 7.8
- 3.1
- 2.3
- 8.2
-10.3
-16.2
-13.7
-15.2
-13.4
-22.8
-11.1
- 8.2
-17.4
-28.5
-28.1
-30.3
- 8.2
-12.3
2.48
6.02
6.44
4.27
2.78
2.72
2.30
6.00
6.43
4.10
2.67
2.45
Percentage change
Wholesale trade
Philadelphia
Federal Reserve
District
Net sales: 1930
compared with 1929
Dec.
(daily av.)
Boots and shoes..
Drugs.....................
Dry goods.............
Electrical supplies
Groceries...............
Hardware.............
Jewelry..................
Stocks: Dec. 31, 1930,
compared with
Dec. 31,
1929
Nov. 30,
1930
-14.6
- 1.8
-12.5
-43.0
- 5.2
-11.6
-22.7
-16.0
-28.9
-11.9
-17.9
-33.8
- 9.0
-21.8
-24.8
-24.5
Twelve
months
-13.3
-11.3
-32.7
-11.5
-10.4
-13.0
- 5.9
- 8.8
-19.7
- 8.7
- 4.4
-13.3
Collec
tions:
Dec.
1930,
compared
with 1929
-17.4
- 3.6
-15.1
-31.6
- 9.8
-23.0
-33.8
-22.6
\
Employment and
wages
in Pennsylvania
Dec.
index
*
Per cent
change since
Dec.,
1929
Nov.,
1930
82.5
-15.2
- 3.6
Metal products........................... 78.8
Blast furnaces......................
48.8
Steel wks. and rolling mills. 71.6
Iron and steel forgings. . .
86.6
Structural iron works........... 96.0
Steam & hot wtr. htg. app.. 93.0
Stoves and furnaces.............. 73.9
Foundries................................. 78.8
Machinery and parts............ 88.1
Electrical apparatus............. 102.0
Engines and pumps.............. 68.8
Hardware and tools.............. 79.2
Brass and bronze products . 73.9
-18.0
-23.4
-14.9
-23.0
-19.9
- 9.4
-16.8
-25.3
-20.3
-21.1
-31.8
-19.4
-29.5
- 4.1
+ 3.8
- 3.6
- 0.5
- 5.1
- 2.2
- 3.7
+ 0.3
- 2.0
- 8.8
- 2.3
-1.2
- 1.5
Transportation equipment... .
Automobiles ..........................
Auto, bodies and parts ....
Locomotives and cars..........
Railroad repair shops...........
Shipbuilding...........................
-22.7
-11.6
-31.2
-35.0
- 5.4
- 8.5
All manufacturing industries
(Si)............................................
59.4t
51.8
53.5
34.9
74.7
78.7
Payrolls
December, 1930
Dec.
index
*
Per cent
change since
Dec.,
1929
Nov.
1930
70.8
-29.0
- 6.0
64.7
44.0
57.5
84.0
75.9
81.5
54.9
63.2
74.0
89.6
57.9
65.6
66.9
-33.6
-29.5
-31.5
-23.7
-36.7
-17.3
-30.7
-40.9
-38.6
-35.9
-45.2
-34.3
-39.7
- 7.8
+ 3.0
- 4.6
- 0.8
- 7.6
- 4.7
-11.7
+ 0.5
- 1.1
-21.2
+ 0.7
- 3.6 46.51
+16.1 26.6
- 5.0 44.5
- 5.4 27.9
- 0.9 60.2
-12.4 120.4
-41.6
-25.9
-46.0
-50.8
-29.0
-23.6
- 6.6
+28.5
+ 0.5
-11.1
- 8.4
-15.5
84.3
48.6
46.8
107.4
83.0
44.4
64.2
111.7
66.5
55.0
124.7
131.4
-27.8
-30.6
-22.6
-17.4
-16.9
-34.1
-34.1
-37.0
-43.6
-25.3
+ 7.2
-19.4
- 8.4
- 3.0
- 5.3
- 3.6
- 5.8
-15.4
- 2.6
-12.0
-38.5
-15.5
+11.0
- 1.0
Textile products.........................
Cotton goods..........................
Woolens and worsteds.........
Silk goods................................
Textile dyeing & finishing. .
Carpets and rugs...................
Hats...............................
Hosiery........................
Knit goods, Other..................
Men’s clothing...................
Women’s clothing..................
Shirts and furnishings..........
90.7
58.8
51.8
101.3
92.2
58.2
86.7
109.2
82.6
73.0
124.9
143.9
-15.6
-26.7
-18.2
-13.6
- 7.5
-24.3
-11.1
-17.9
-22.5
- 2.5
+ 9.9
- 6.3
- 5.9
- 0.2
-11.0
- 5.3
- 0.1
- 5.5
- 0.6
- 8.0
-18.9
- 6.8
+ 8.0
- 0.3
Foods and tobacco....................
Bread & bakery products . .
Confectionery.........................
Ice cream..........................
Meat packing......................
Cigars and tobacco...............
105.0
110.4
101.5
90.2
96.6
102.7
- 5.0
- 3.0
-12.6
-1.2
- 7.0
- 1.9
+
-
1.3 101.4
0.8 107.7
0.3 99.4
3.6 89.9
0.8 97.4
2.1
92.0
- 8.7
- 5.4
-14.2
- 5.2
- 4.4
-10.2
+ 1.6
- 0.9
+17.9
- 3.9
+ 4.5
- 4.2
Stone, clay & glass products.
Brick, tile and pottery.........
Cement..............................
Glass..........................
61.0
68.8
55.0
62.0
-19.9
-20.0
- 9.4
-28.7
-
4.5
9.6
2.8
1.3
49.1
49.7
45.4
56.8
-29.4
-36.3
-17.0
-35.6
- 2.4
-11.4
+ 3.9
- 2.1
Lumber products.......................
Lumber and planing mills. .
Furniture..........................
Wooden boxes......................
60.2
41.9
65.2
66.4
-35.5
-49.9
-34.9
- 9.2
-10.5
-21.2
- 8.4
- 1.6
51.3
35.5
56.9
54.6
-46.1
-55.2
-47.1
-21.1
-14.9
-20.0
-16.2
- 2.3
Chemical products..............
93.1
Chemicals and drugs............ 70.7
Coke............................
75.1
Explosives............................
77.1
Paints and varnishes. . .
86.9
Petroleum refining................ 121.2
- 5.6
-20.7
-16.5
-14.3
- 8.7
- 6.1
+
+
+
+
8.9 88.8
9.8 70.1
0.5 61.1
2.5 80.0
0.7 85.5
6.1 126.9
-12.2
-21.1
-23.5
-22.4
-13.2
- 5.3
+ 1.7
+ 9.9
+ 0.2
-14.1
+ 0.8
+ 1.9
Leather and rubber products. 91.0
Leather tanning..........
105.8
Shoes......................................... 78.6
Leather products, Other . . . 78.5
Rubber tires and goods.... 82.1
-11.9
+ 3.4
-22.6
-25.5
- 8.8
- 6.2 89.3
- 5.0 100.5
-10.5 69.7
- 0.8 85.2
- 1.0 91.8
-17.2
- 9.4
-34.6
-24.1
-12.9
- 1.9
- 4.6
- 1.8
- 2.1
+19.5
Paper and printing.................... 97.0
Paper and wood pulp ....
81.1
Paper boxes and bags........... 87.6
Printing and publishing... . 103.7
- 6.1
- 9.5
-22.7
- 2.1
+
+
- 9 5
-16.6
-23.4
- 6.1
+ 5.6
- 5.0
+ 0.7
85.0J -22.9
+ 2.2
.
Percentage change—December, 1930, from December, 1929
City areas*
Employ
ment
Wage
payments
Allentown................
Altoona....................
Harrisburg..............
Johnstown...............
Lancaster................
Philadelphia...........
Reading...................
Scranton..................
-15.4
-12.2
-15,4
-31.0
- 9.3
-18.4
-15.8
-10.6
-25.6
-20.2
-26.1
-42.4
-17.7
-28.4
-35.8
-14.7
Wilkes-Barre..........
Williamsport..........
Wilmington............
York.........................
- 9.6
-19.5
-21.0
- 3.1
-17.1
-29.5
-22.7
— 11.5
Building
permits
(value)
Debits
- 66.9
+ 40.0
+112.1
+204.4
- 90.6
- 84.1
- 49.7
- 59.2
+137.7
+809.6
- 89.3
- 36.8
+330.1
- 9.5
-12.7
- 8.4
-17.0
-10.6
-16.2
-18.1
-17.1
- 2.8
-13.5
-15.9
-49.4
+ 6.2
Retail
trade
sales
-13.8
-11.9
- 5.6
-14.0
-11.1
-11.5
-19.0
- 9.7
- 9.0
- 6.9
-10.9
December, 1930, from November, 1930
Allentown...............
Altoona....................
Harrisburg.......
Johnstown...............
Lancaster................
Philadelphia...........
Reading...................
Scranton..................
- 1.9
- 5.7
- 2.1
-14.5
- 0.5
- 6.5
- 2.6
- 4.6
+ 0.9
- 2.9
- 1.9
-22.8
- 5.6
- 7.9
- 5.1
- 0.7
Wilkes-Barre..........
Williamsport..........
Wilmington............
York.........................
+
4-
- 3.4
+10.3
+ 2.5
- 1.6
0.1
3.9
0.7
0.9
- 42.1
- 66.5
+366.7
+ 4.4
- 70.2
- 87.5
- 38.1
- 50.9
+ 67.6
+ 83.2
- 96.1
- 37.8
- 68.7
f-15.1
-10.0
-17.9
b 6.2
r 6.9
-30.7
- 9.6
- 8.2
-52.2
9.2
-14.1
-37.6
-27.5
* Area not restricted to the eorporate limits of cities given here.
0
h59.3
b74.7
-56.5
-60.9
b55.1
b45.1
H -57.5
H-44.0
H-63.2
-1 -48.4
Retail trade......................
■i -62.0
Wholesale trade........................
Anthracite...........................
96.5+ -12.9
Bituminous coal....................
0.1 101.8
2.3 78.9
5.8 98.8
2.0 109.7
+ 1.9
— 1.0
Construction & contracting.. .
67.2
-25.9
-19.6
58.8
-27.1
-10.1
Street railways..................
78.9
-10.7
- 1.5
82.7
-12.3
- 2.2
113.6
— 4.9
+ 2.0
92.3
- 6.5
+ 0.9
—---------------------—------- --------* 1923-1925 average = 100. t Preliminary figures, t Figures from May
to .November, inclusive, have been revised.
Page Seven
Synopsis of Industrial and Trade Conditions in the
Philadelphia Federal Reserve District
Demand
Operations
Stocks
Manufacturing
Iron and Steel
Pig iron output declined
Blast furnaces ....................... Declined, some price declines
Steel works and rolling Quiet, some gain
Foundries
and
Declined, some
orders
machine Poor, little change
gain
Output of iron and steel castings
declined
Declined
Declined sharply
Slow, little change
Declined
Quiet
Electrical apparatus ..........
in unfilled
Declined in December
Transportation equipment
Locomotives and cars ....
Textiles
Fair, some increase for silk goods Declined
Cotton manufactures
Hosiery
Moderate, little change
Poor, declined, prices lower
Fairly heavy
Quiet, little change, prices lower Declined
Wool dealers .........................
Moderate, somewhat smaller than
a month ago
.... Declined, prices changed little
......................................
Floor coverings ....................
Declined,
lower
prices
unchanged
Declined
to Declined sharply
Light, declined,
year ago
smaller than a
Increased in December
Quiet, some improvement, prices Declined
unchanged
Smaller
Quiet, though some gain is in Declined
dicated; prices lower
Declined
Leather products
Leather—sole .........................
Little change, prices lower
Little change
Some increase
Quiet, some improvement, prices Declined
lower
Little change
Quiet, declined
Declined
Rather heavy, little change
Quiet seasonally, prices lower
Declined
Larger
Poor, little change
Declined
Building materials
Paints and varnishes .... Quiet seasonally, some decline; Some increase
prices unchanged to lower
Poor, declined, prices unchanged Declined
Rather heavy
Moderate,
smaller
than
month or last year
last
Moderate, smaller than a month
or year ago
Miscellaneous
Fair, little change
Increased, but much lower than Moderate, little change
a year ago
Poor, declined
Declined sharply
Poor, declined, prices unchanged Declined
Building
Moderate,
smaller
than
month and a year ago
last
Moderate, smaller than a month
and year ago
Building contracts increased and
were larger than in December,
1929; declined in early January
Building permits declined
Coal raining
Fair, increased slightly in Decem Some increase
ber; prices firm
Quiet, little
clined
change;
prices
de Declined
Trade
Increased in December, but de
clined
sharply
in
January.
Prices lower
Wholesale and jobbing . . . Some decline, prices lower
Page Eight
Declined, smaller than a year ago
Declined, smaller than a year ago
@FedFRASER