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'

.41

•

THE BUSINESS REVIEW
THIRD FEDERAL
PHILADELPHIA

RESERVE DISTRICT
FEBRUARY i, i933

By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent
FEDERAL RESERVE BANK of PHILADELPHIA

Business and Financial Conditions in the United States
Volume of industrial production de­
clined in December by slightly less than
the usual seasonal amount, while fac­
tory employment and payrolls showed
a decrease somewhat larger than is
usual at this season. The general level
of wholesale commodity prices, after
declining in December, showed rela­
tively little change in the first half of
January.
Production and employment. In De­

L

cember the Board’s seasonally adjusted
index of industrial output showed an
increase from 65 per cent of the 1923­
1925 average to 66 per cent, the level
prevailing in September and October.
There was a substantial increase in out­
put of automobiles in connection with
the introduction of new models, and
lumber production showed a less-thanseasonal decline. In the textile indus­
tries there were decreases in output in
accordance with the usual seasonal
tendency.
Activity at steel mills
showed a substantial decline in Decem­
ber, followed by a seasonal increase
in the first three weeks of January.
Volume of employment in manufac­
turing industries decreased from the
middle of November to the middle of
INDUSTRIAL PRODUCTION

December by somewhat more than the
usual seasonal amount.
Working
forces were reduced in the clothing,
leather, and building material indus­
tries, while at automobile factories
there was a substantial increase in
employment.
Value of construction contracts
awarded, as reported by the F. W.
Dodge Corporation, declined by more
than the usual seasonal amount in the
fourth quarter, following a non-seasonal increase in the third quarter.
Contracts awarded in the first half of
January showed an increase, as meas­
ured by daily average figures, reflect­
ing the award of large contracts in
connection with construction of a
bridge at New Orleans.

cember, 1931 by about one-fourth.
For the year as a whole, the decline
was about one-third, reflecting de­
creases ranging, in the first eleven
months, from 8 per cent for crude ma­
terials to 45 per cent for finished man­
ufactures. Value of imports into this
country during 1932 was smaller than
in 1931 by 37 per cent.
Wholesale prices. Wholesale prices
of many leading commodities, includ­
ing non-agricultural as well as agricul­
tural products, declined from Novem­
ber to December, and the monthly
index of the Bureau of Labor Statis­
tics showed a decrease from 63.9 per

Freight traffic de­
creased in December by an amount
somewhat smaller than is usual at this
season. Sales by department stores in­
creased by somewhat less than the
usual seasonal amount and were smaller
than a year ago by 23 per cent reflect­
ing, in part, a decline in prices.
Value of exports in
December was smaller than in De-

i Or DOLLARS

All Other
C Loons -

Distribution.

Foreign trade.

MEMBER BANK CREDIT

BILLIONS or DOLLARS

Loans on Securities,

^Investments jt!

Monthly averages of weekly figures for report­
ing member banks in leading cities. Latest
figures are averages of first two weeks in
January.

WHOLESALE PRICES

HANK CREDIT auo FACTORS in CHANGES
6500

16500
6000

5500

4500

— ■

Monet/in irculation /

'A

Goto StocK

A

RiCO

4000

____

3500
i

2500

>1

N

1000

Index number of industrial production, ad­
justed for seasonal variation. (1923-1925 aver­
age = 100.)

►



Index of United States Bureau of Labor Sta­
tistics (1926=100).

/

Reserve Ban

1500

500

5500
5000

*"S---------

4000
3500

I

------ --------------- —-----1---------------------------- Miuiom or Don mis

6000

l

/

______

1926

1929

1930

1931

1932

~955—

Monthly averages of daily figures. Latest fig­
ures are averages of first nineteen days in
January.

Page One

cent of the 1926 average to 62.6 per
cent, as compared with 68.6 per cent a
year ago. In the first half of Jan­
uary, wheat prices advanced from the
low levels reached at the end of De­
cember and cotton prices also increased
somewhat, while prices of silk, rubber,
and gasoline declined considerably.
Bank credit. In the four weeks from
December 21 to January 18, the stock
of monetary gold increased by $80,­
000,000 and there was a seasonal de­
cline of $130,000,000 in the volume of
money in circulation—a considerably
smaller decline than usual, reflecting a
smaller than usual increase for the

holiday trade in December and some
withdrawals of funds accompanying
bank suspensions in the middle of Jan­
uary. The reserve funds arising from
these two sources were absorbed in part
by a reduction of member bank bor­
rowings at the Federal reserve banks
and through a decline of $73,000,000
between January 4 and January 18 in
the reserve banks’ holdings of United
States government securities.
Member bank reserve balances, how­
ever, increased further during the four
week period by about $100,000,000, to
a level $575,000,000 higher than a year
ago. Excess reserves of member banks,

which have been in substantial volume
for several months, also increased dur­
ing the period.
Volume of member bank credit con­
tinued to decline during December
and the first part of January. From
the middle of December to January 11,
total loans and investments of report­
ing member banks in leading cities de­
clined by $165,000,000 to a level about
$350,000,000 above the low point of last
summer. The decline was entirely in
the banks’ loans, while investments
showed relatively little change.
Money rates in the open market con­
tinued at low levels.

Business and Financial Conditions in the
Philadelphia Federal Reserve District
Trade and industry have been pass­
ing through a period of the usual
seasonal slackness, which is probably
more marked at present than in other
years, principally because of the rela­
tively low levels of activity as com­
pared with more normal times. Out­
put of manufactures in December con­
tinued downward more sharply than
was to be expected, although the De­
cember figure was appreciably higher
than the record low reached last year.
Production of anthracite showed ex­
ceptionally large gains, while that of
bituminous coal declined from No­
vember to December. Building and
construction continues in unsatisfac­
tory volumes, although awards of
contracts registered gains in the last
quarter of the year, which, however,
did not continue in early January. Re­
tail business was larger, while sales at
wholesale were a trifle smaller than the
estimated seasonal amount for Decem­

ber. Shipments of commodities by rail
were more than well sustained in the
last month of the year. Business
liquidations increased substantially at
the end of the year. Virtually all in­
dicators for 1932 as a whole showed
noticeable declines when compared
with the previous four years.
Industrial and other employment
showed about the usual seasonal de­
cline from November to December,
while total payrolls of representative
industries, trades, and services com­
bined registered practically no change,
declines in such principal industries
as manufacturing and bituminous
coal mining being offset by gains in
wage payments of the anthracite in­
dustry, public utilities, and retail
trade. Preliminary inquiries indicate
that there was little improvement in
the employment situation during the
first part of January.

RETA1L TRADE

INDUSTRIAL PRODUCTION
PHILADELPHIA FEDERAL RESERVE DISTRICT

PERCENT

Manufacturing.
Activity in most
manufacturing industries has slack­
ened considerably as is usual at the
turn of the year. This year-end quiet
appeared more pronounced than in
other years, owing chiefly to an un­
usually long drawn out period of busi­
ness depression, as reflected by re­
duced sales and declining prices of
commodities.
Sales of factory products showed
further seasonal decreases since the
middle of last month. Unfilled orders
also have decreased, although in sev­
eral instances more favorable devel­
opments have been taking place in
January. This is especially noticeable
from reports of certain metal, textile
and food industries.
Commodity
prices continued to reflect weakness,
even though the rate of change in
recent weeks has not been as marked
as in the previous three years. Pay-

PHILADELPHIA FEDERAL RESERVE DISTRICT

PERCENT
SALES (in dollars)

MANUFACTURING

STOCKS (in DOLLARS)
COAL MINING.

ADJUSTED FOR SEASONAL VARIATIONS

Page Two



1928

1929

1930

merits of accounts have declined and
Business Indicators
continued smaller than in the pre­
Philadelphia Federal Reserve District
ceding- year.
Year-end inventory listing discloses
that stocks of finished goods at repre­ “Adjusted” index numbers make Index numbers expressed in percentages of 1923-1925 average which
is taken as 100
allowance for the usual seasonal
sentative factories were considerably
changes which result from an un­
reduced as compared with the pre­
even distribution of business be­
Adjusted for seasonal variation
Not adjusted
tween the months of the year.
ceding four years. This fact is also
They are the most significant
indexes because they snow im­
borne out by national data indicating
Percentage comparison
provement or decline beyond the
that the manufacturing industry as
level usually to be expected.
Dec. 1932
12
a whole is in a fairly strong statistical “Unadjusted” indexes reflect Dec. Nov.
Dec.
with
months Dec. Nov. Dec.
merely the actual changes which 1931
position. Inventories of raw materials
1932
1932
1932
1931
1932 1932
may or may not be up to the
with 12
held by local factories likewise showed
usual seasonal expectations.
Month Year months
1931
a further decline in December, when
ago
ago
they were smaller than in recent years.
The seasonal increase in stocks of Productive activity
Manufacturing total....................
69.0 57
- 4.4 -20.6 -22.7 67.3 58.5j 53.3p
raw materials in the country since the
Metal products.........................
50.5 28
29.6 + 2.8 -41.4 -46.6 48.2 28.8 28.2
Textile products.......................
76.0 78
75.1] - 4.2 - 1.2 -13.1
76.0 80.9 73.5p
fall has not been as sharp as in the
Transportation equipment...
63.6 34
32.8 - 4.9 -48.4 -19.7
63.3 33.3 33.0
Food products...........................
76.5 66
previous three years, and the total
63.8] - 3.5 -16.6 -13.1
74.3 65.3 63.2p
Tobacco and products.............
86.8r 74
71.3 - 4.7 -17.9 -17.1
62.9 89.1
51.7
volume at the beginning of this year
Building materials...................... 35.5 19
16.5 -13.6 -53.5 -43.1
32.4
18.9 14.8
Chemicals and related products 101.7 90
91.6 + 1.7 - 9.9 -13.7 100.7 90.6 90.6
was smaller than a year earlier.
Leather and products.........
83.0 101
75.6] -25.7 - 8.9 -14.3 80.4 96.9 73.3p
Paper and printing..............
91.4 71
71.9 + 0.6 -21.3 -20.1
Factory employment in this district
92.3
72.2 72.6
Electric power output............... 183.1 180
165.8 - 8.3 - 9.4 - 7.4 195.9 188.0 177.4
Elec. pwr. used by industries.. 124.6 121
as in the country showed somewhat
122.7 + 0.8 - 1.5 -11.2 118.4 124.1 116.6
more than the usual seasonal decline
Factory employment Penna.......
- 2.8* -15.5* -16.5* 71.0 61.7 60.0
from November to December, and in
Factory wage payments Penna.
- 3.3* -32.7* -35.0* 52.3 36.4 35.2
January there was little improvement
Coal mining. .
66.9 63.9
+13.0 + 7.9 -17.3 66.4 66.5 71.7p
in the demand for workers by facto­
Anthracite..
69.0 65.0 75.0 +15.4 + 8.7 -16.4
68.0 67.0 74.0
Bituminous.
54.3 57.5
ries in general. In Pennsylvania fac­
- 3.8 + 1.8 -22.6
57.0 63.2 58. Ip
tory employment, payrolls, and op­ Building and real estate
Contracts awardedt—total......... 58.1 30.2 32.3 + 7.0 -44.4
erating time declined about 3 per cent
-45.4 50.0 29.3 27.8
Contracts awarded^—residential 20.0
15.5
12.7 -18.1 -36.5 -39.3
19.6
16.1
12.4
from November to December. This
Permits for building................
11.0
8.5
7.1 -16.5 -35.5 -56.0
7.5
7.9
4.8
Mortgages recorded in Phila. . . . 66.5
16.8 32.9 +95.8 -50.5 -32.4 73.1 20.2 36.2
change was somewhat less favorable
Real estate deeds recorded in
Philadelphia............................ 63.1 40.6 78.8 +94.1 +24.9 - 6.9 61.8 43.8 77.2
than at the same time in 1931, but
Exclusive of Sheriff deeds
a little more favorable than in 1929
(1930 = 100).............................
+57.9* - 8.6* -12.0* 119.6 69.2 109.3
Sheriff deeds (1930 = 100)........
and 1930, particularly with respect to
Writs for Sheriff sales in Phila. .. 1205.4 1044.5 1090.3 +111.3* +75.5* +13.6* 115.2 95.7 202.2
+ 4.4 - 9.5 + 8.6 1229.5 1169.8 1112.1
wage payments. The following per­
Distribution
centages computed from average in­
Retail trade—sales......................... 71.9 52.5 54.7p
Retail trade—stocks...................... 65.5 52.2 51.6p + 4.2 -23.9 -22.1 119.3 63.2 90.6p
dex numbers of employment and pay­
~ 1.1 -21.2
63.1
59.8 49.8p
Wholesale trade—sales.............
65.8 54.6r 54.2
73.6 61.8r 59.1
rolls in Pennsylvania give yearly com­
Wholesale trade—stocks............... 73.7 62.6 63.8 - 0.7 -17.6 -22.1
+ 1.9 -13.4
69.1
59.8
64.1
Freight car loadings (Allegheny
parisons for the past five years.
district)......................................... 63.6 51.0 53.4
Employment
Year
(1923-25 = 100)

1928.....................
1929.....................
1930.....................
1931.....................
1932....................

Payrolls

Per cent
Per cent
change
change
Index
from
Index
from
previous
previous
year
year
92.7
98.8
90.4
75.1
62.7

- 3.8
+ 6.6
- 8.5
-16.9
-16.5

93.6
104.5
87.6
60.8
39.5

- 4.4
+11.6
-16.2
-30.6
-35.0




98.2
67.0

-16.0
-28.2
-32.9

57.2
;43.5
53.9

51.5 48.1
114.7 103.1
27.3 36.2

179.2 216.7
142.3 210.9

-26.2
-17.7
-35.5

Business liquidations
Number.........................................
Amount of liabilities............... ]

Payment of accounts
Check payments.............................
Rate of collections (actual, not
indexes)
Retail trade.................................
Wholesale trade..........................

(000,000’s omitted
in dollar figures)

Output of factory products contin­
ued downward. This bank’s pre­
liminary index number, which allows
for the number of working days and
seasonal changes, dropped from 57 in
November to 55 per cent of the
1923-25 average in December, a de­
cline of about 4 per cent more than
is commonly to be expected. In spite
of the continuous recession in the
last quarter of 1932, the December
index was over 3 per cent higher than
the low point reached at the end of
the first half of the year. The table

+ 4.7
- 9.2
+71.8

+20.9* +26.9* + 10.6* 170.8
+48.2* +46.2* +32.3* L44.3

Life insurance sales........................ 136.7 108.2
New passenger auto registrations 99.8 39.0

76.9

55.0

61.5

+ 11.8

-20.0

-30.8

58.8

66.4

27.9
66.6

+ 0.8* - 7.5*
+ 7.3* -11.7*

83.0

25.6
54.8

25.8
58.8

Per cent change from
Dec.
1931

Sept.
1932

Oct.
1932

Nov.
1932

Dec.
1932

$716

$613

$603

$596

$590

-1.0

505

494

516

528

529

+0.2

+

4.8

All member banks—net demand
and time deposits......................

2,079

1,964

1,965

1,977

1,980

+0.2

-

4.8

Bankers’ acceptances outstand­
ing ..................................................

16.9

12.3

13.3

13.5

12.3

-8.9

- 27.2

Federal Reserve Bank
Bills discounted..........................
Other bills and securities..........
Reserve ratio...............................

117
70
62.8%

57
144
55.2%

49
144
56.3%

49
144
56.8%

51
143
57.3%

+4.1
-0.7
+0.9

- 56.4
+104.3

Month
ago

Year
ago

Banking and credit
Reporting member banks
Loans to customers....................
Open market loans and in­
vestments .................................

* Computed from data unadjusted for seasonal variation.
I 3-month moving daily average.

- 17.6

-

8.8

p—Preliminary,
r—Revised.

Page Three

IRON AND STEEL PRODUCTION

OUTPUT OF TEXTILE GOODS

PHILADELPHIA FEDERAL RESERVE DISTRICT

PHILADELPHIA FEDERAL RESERVE DISTRICT

PERCENT

PERCENT

Oft,
STEEL

WOOLEN
AND WORSTED

•PIG IRON

COTTON

ADJUSTED TOR SEASONAL VARIATIONS

1927

1929

1928

1930

1928

1932

1929

1930

1931

1932

1933

Source: Iran Age

below, which is derived from annual
average indexes, presents a com­
parison of changes in productive ac­
tivity during the past five years.

Year

1928..................................
1929..................................
1930..................................
1931..................................
1932..................................

Index number
(1923-25=100)
annual average

101.8
110.4
96.3
76.7
59.4p

Per cent
change
from
previous
year
- 1.8
+ 8.4
-12.8
-20.4
-22.6

p—Preliminary

The metal industry as a whole,
which sustained probably the severest
losses since 1929, showed a decided
upward tendency in the last four
months of 1932, so that the December
seasonally adjusted index number was
17 per cent above the low point
reached in August. Most of the re­
maining groups of manufactures reg­
istered more than customary declines
from November to December.
Production of electric power, after
rising for two successive months, de­
clined more sharply than was to be
expected, the seasonally adjusted in­
dex decreasing from 181 in Novem­
ber to 166 per cent of the 1923-25
average in December. The decline
in sales of electrical energy to in­
dustry was no greater than usual,
while changes in the sales to other
consumers apparently failed to meas­
ure up to expectations.
Building and real estate. Activity in
the building and construction industry
in Pennsylvania showed somewhat
more than the usual seasonal reces­
sion between the middle of November

Page Four



and the middle of December. Re­
ports from some 1,200 contractors
showed a decline of 19 per cent in
the number of workers employed and
a reduction of 21 and 22 per cent
respectively in payrolls and operating
time.

Contracts awarded
in selected cities
and district

1932
(000’s
omitted)

Per cent change
from
1931

1926-30
average

Philadelphia.............. $ 29,978
Reading......................
1,212
2,191
Scranton....................
Camden......................
516
1,123
Trenton......................
Wilmington...............
2,021
“All other”................
65,709

-45.4
-61.8
+77.1
-76.6
-70.6
-48.4
-44.9

-83.5
-79.3
-50.8
-94.1
-85.3
-72.0
-69.1

Total: Philadelphia
Federal Reserve
District including
all cities................. $102,750

-45.5

-76.0

Source: F. W. Dodge Corporation.

Awards of building contracts de­
clined sharply in December and were
77 per cent of the volume recorded a
year earlier. An unusually large re­
duction in the value of contracts let
for residences was in the main re­
sponsible for this decline, since
awards for commercial buildings other
than factories and public works and
utilities were somewhat larger than
in November. In early January, ag­
gregate awards for new construction
declined further. Last year’s dollar
volume of contract awards was 45 per
cent smaller than in 1931 and showed
a decline of 76 per cent as compared
with the average of the five-year pe­
riod from 1926-1930.
Estimated cost of proposed build­
ing under permits issued in 17 cities
of this district showed more than the

usual seasonal decline from Novem­
ber to December and was nearly 36
per cent smaller than a year earlier;
comparative figures for the 12 months
indicate that the value of building
permits issued was less than half as
large as in 1931 and was by far the
smallest of any like period in recent
years. A part of this decline may
be attributed to lower construction
costs, which in June of last year had
reached the lowest level since before
the war. Although the trend of
building costs has been upward since
mid-summer, the present level is about
3 per cent lower than at this time
last year.
Conveyances exclusive of sheriff
deeds increased sharply in December
and with one exception were the larg­
est for any month in the past three
years. Mortgages recorded in Phila­
delphia during December were almost
double the dollar volume of Novem­
ber but showed a decline of nearly
51 per cent as compared with Decem­
ber 1931. Figures for the entire
year showed declines of 12 per cent
in the number of deeds and 32 per
cent in the value of mortgages as
compared with 1931. Last year’s rec­
ord of forced sales showed that fore­
closures exceeded those of the pre­
ceding year by 14 per cent and that
they were exceptionally numerous as
compared with other recent years.
Coal. Demand for anthracite at the
mines has slackened since the middle
of last month. In Philadelphia sales
by retail yards showed little change
from November to December and
were about equal to those of a year
earlier.
Colliery output increased
sharply in December, contrary to the

FREIGHT CAR LOADINGS

COST OF LIVING
PERCENT

ALLEGHENY DISTRICT

PERCENT

19 23-25AVG. =1OO

PHILADELPHIA

IS 30
UNITED

STATES

—

*

60

40
Source: United States Bureau of Labor Statistics

usual seasonal tendency, but declined
in early January. For the year as a
whole production was at an unusually
low level; output of hard coal in
1932 averaged about 162,000 tons
daily, as compared with 196,000 tons
in 1931, and was the smallest since
1925, when the strike interfered with
production. Shipments increased sub­
stantially during December and ex­
ceeded those of a year earlier; figures
covering distribution of anthracite for
the entire year, however, showed a
sharp decline from the 1931 level and
an even larger reduction from that of
other recent years. Wholesale prices
of anthracite declined fractionally in
December, following a slight increase
in the preceding month; as compared
with a year ago, they were about 6
per cent lower.
Production of Pennsylvania bitumi­
nous coal showed somewhat more than
the usual seasonal decline in Decem­
ber and was reduced further in early
January. During the twelve month
period ended December 1932, col­
liery output, which averaged less than
250,000 tons daily, was at the low­
est level in several years. Despite
a substantial increase since mid-sum­
mer, the volume of soft coal ship­
ments last year was almost 20 per
cent below the level of 1931. Whole­
sale prices of bituminous coal in the
country declined fractionally from
November to December and showed
a reduction of 4 per cent as com­
pared with December 1931.
Distribution. Retail trade sales in
December showed somewhat more than
the usual gain over November, the
increase in the sales of department,




ADJU ST CD FC R 3CA,>ONAl_
vv------

J

------- • -------------1
9

IS 32

DEC. 1914

19 31

ARIATIO >is

FMAMJ

JA

SON

D

Source: American Railway Association

apparel, shoe and credit stores
amounting to about 4 per cent above
the estimated seasonal rise. The larg­
est percentage gains occurred in the
sales of women’s apparel, shoe, and
house furnishings stores. Since the
turn of the year, business at retail
has been seasonally quiet and re­
stricted principally to clearance sales.
In comparison with a year before,
dollar sales of representative stores
were almost 24 per cent smaller, sales
of men s apparel and house furnish­
ing stores showing the largest de­
creases. Department store sales in
this district were 22 per cent smaller
as compared with a decline of 23 per
cent for the country as a whole. Shoe
stores reported the smallest relative
drop. For the year as a whole, re­
tail trade sales were 22 per cent
smaller than in 1931 and 32 per cent
less than in 1930. Retail prices of
general merchandise account for some
of this decline, since the average for
1932 dropped 17 per cent from that
of the previous year.
Inventories at retail stores were re­
duced somewhat more than usual by
the end of the year, and they were 21
per cent smaller than at the end of
1931. The rate of stock turnover
of the four lines combined was 3.8
in 1932 as against 4.1 in 1931, a de­
cline of less than 7 per cent. As in
the previous year, the highest rate of
stock turnover — 6.7 — occurred in
women’s apparel in Philadelphia. Set­
tlements of retail accounts were at a
slightly more rapid rate in December
than in November, but continued al­
most 8 per cent slower than a year
before.

The changes in the general level of
retail prices are probably best re­
flected by the figures showing the cost
of living, based on the budget re­
quirements of industrial workers;
these changes follow:

Items included in
the cost of living
index

Food..................
Clothing...................
Housing....................
Fuel and light.............
House furnishings___
Miscellaneous...........
Total..................

Dec. 1932 compared with
Dec. 1931, per cent change
United
States

Phila­
delphia

Scran­
ton

-13.6
-10.3
-13.4
— 6.6
-11.8
- 3.0

-17.8
-11.1
-10.4
— 10.3
-14.5
- 4.1

-13.7
- 7.5
- 7 4
- 5 9
- 2.7

- 9.4

-11.0

- 8.2

Source: Bureau of Labor Statistics

Wholesale and jobbing trade has
been fairly well maintained, though at
considerably lower levels than in other
years. Only three out of eight lines,
—shoes, drugs, and groceries,—
showed improvement, so that sales for
all lines combined were less than one
per cent below the volume commonly
expected in December. In January
seasonal recessions in all lines were
noticeable.
Compared with December 1931,
total dollar sales were 20 per cent
smaller, and for the year as a whole,
they were 22 per cent less than in
1931. More than half of this de­
cline is attributed to lower prices.
Stocks of goods at wholesale
houses declined somewhat less than
usual and at the end of December
they were 14 per cent smaller than
at the end of 1931. The rate of stock
turnover was 7 per cent lower than
in the preceding year. Wholesale colPage Five

lections during December increased 7
per cent when compared with accounts
outstanding at the beginning of the
month; they were, however, almost 12
per cent less prompt than in De­
cember 1931.
Freight car loadings in this section
showed more than the usual seasonal
improvement by nearly 5 per cent as
compared with the increase of 2 per
cent for the country as a whole. In
early January commodity movements
continued well maintained. The total
shipment in 1932, however, was 26
per cent smaller than in 1931 and 42
per cent less than in 1930.
Sales of new passenger automobiles
showed an increase of 33 per cent
from November to December, instead
of registering the usual seasonal de­
cline at the end of the year. Total
sales in 1932, however, were 35.5 per
cent smaller than in 1931. Retail fi­
nancing of both new and used cars has
been substantially smaller; the relative
decline in financing purchases of new
cars was considerably greater than that
of used cars. Sales of life insurance
dropped 9 per cent more than was ex­
pected and in 1932 were 18 per cent
smaller than in the previous year.
Business liquidations showed sharp
increases from November to Decem­
ber and as compared with a year ago.
The number of commercial failures
in this district in 1932 was 11 per
cent and the amount of liabilities in­
volved was 32 per cent larger than
in 1931. Liquidations of trade and
manufacturing establishments regis­
tered the greatest toll during the year.
With the de­
cline in retail trade and seasonal re­
cession in industrial activity, money
has returned to the banks in sub­
stantial volume during the past month.
Deposits have increased, but a fur­
ther decline in loans is reported.
Currency received by the reserve
bank from the member banks exceeded
payments to them by 19 millions dur­
ing the four weeks ended January
18, which compares with a 12 mil­
lion excess of payments in the pre­
ceding month. Ten millions of these
funds were absorbed by an unfavor­
able balance in the settlements of com­
mercial and financial transactions with
other federal reserve districts, some
part of which probably represented
transfers of funds to increase de­
posits with other banks. The re­
mainder was used largely to reduce
borrowings from the reserve bank by

3 millions and to
WAGE PAYMENTS
add 5 millions to
ALU MANUFACTURING INDUSTRIES
the reserve de­
PERCENT
posits of member
banks. Treasury
DELAWARE
receipts from this
district only
NEW JERSEY
slightly exceeded
disbursements
here, so that the
influence of these
PENNSYLVANIA
operations on the
demand for re­
serve bank credit
was negligible.
On January 18
the total of bills
1929
1928
1927
discounted at this
bank was 47 mil­
lions ; Philadel­
phia banks were
_
borrowing 9 millions as against 53 deposits decreased 13 millions, but this
millions a year ago, and outside banks was accompanied by an increase of
have reduced their borrowings here 15 millions in demand and time de­
from 61 to 38 millions. Purchased posits which probably was due in part
bills held by the reserve bank have to the return of currency and govern­
changed little in the past four weeks, ment disbursements. The banks re­
but holdings of United States secu­ port an increase of 7 millions in bal­
rities have decreased from 139 to 133 ances due to banks, and a rise of
millions, owing to a decline in federal 22 millions in balances to their credit
reserve system investments in which with other banks.
the bank participates.
Deposits
The reserve ratio advanced from
All member banks
(Daily net averages;
57 to 58.2 per cent, reflecting a reduc­
000,000’s omitted)
Total]!
Demand Time
tion in federal reserve note circula­
tion, which counterbalanced the in­
$ 955 $1,002 $1,957
fluence of smaller changes in cash 1932—August............. ..
1,964
1,001
963
September.........
1,965
965
1,000
October..............
reserves and in deposits.
1,977
973
1,004
November.........
Reporting member
banks
(000,000’s omitted)

Jan. 18, Dec. 21, Jan. 20,
1932
1932
1933

December.........
1931—December.........
1930—December.........

1,980
2,079
2,357

995
1,025
1,179

985
1,054
1,178

Financial conditions.

Page Six



Loans to customers—
On stocks and bonds $
Loans to open market.
United States securities

288
280
28
234
256

Total loans and in­
vestments ..... $1,086
Net demand and time
953
22
Government deposits .
Amounts due from
146
218
Amounts due to banks

$

299* $
293
22*
244
272

363
347
12
183
280

$1,130

$1,185

938
35

931
18

124
211

61
143

* Revised

There was a substantial decline in
loans and investments of the report­
ing member banks in the four weeks
ended January 18, but part of this
apparently was due to readjustments
of values at the end of the year.
Apart from changes in the week
which included December 31, there
were decreases in loans to customers
and in investments, while loans to the
open market increased. Government

Federal Reserve
Bank of
Philadelphia
(Dollar figures in
millions)

Changes in—
Jan. 18,
1933

Bilb discounted for
banks in—
Philadelphia........ $ 9.1
20 other large
15.7
cities..................
Other communi­
22.0
ties......................
Total bills dis­
counted ............. $ 46.8
3.1
Bills bought............
United States secu­
rities .................. 133.3
1.0
Other securities---Total bills and se­
curities .............. $184.2
Fed. res. note circu­
lation ................. 229.5
Member banks’ re­
serve deposits.. 124.7
Government de­
1.0
posits .................
Foreign bank de­
2.0
posits.................
Cash reserves......... 208.2
58.2%
Reserve ratio..........

One
year

Four
weeks

-

0.8

- 44.1

-

1.8

- 17.7

-

0.5

-

+

3.1
0.1

- 67.5
- 3.8

-

6.0
0

+ 74.4
- 2.2

-

9.0

-P

5.7

0.9

- 13.3

- 32.6

4- 4.8

-h

2.0

-

2.6

-

0.7

+

- 4.8
0
- 34.3
2.0
1.2% - 3.4%

LOANS TO CUSTOMERS
-----------------

—

SECURED BY
450
~\ST0CKS AND BONE
400

\

Employment
Dec. 1932
Employment and
wages
in Pennsylvania

Dec.
1931

\

Nov.
1932

Dec.*
index

Per cent
change since
Dec.
1931

Nov.
1932

All manufacturing industries
(5l).......................... ..

. . . . . . . . . . . . . ...
.

350

Per cent
change since

Dec.*
index

s

Payrolls
Dec. 1932

250

19 3 1
* Average of first three Wednesdays

-15.5
-19.7
-13.1
-17.8
-17.9
-13.8

19 3 2

74.5
72.1
46.8
53.1
68.5
31.9
58.7
53.0

Transportation equipment.
Automobiles.....................
Auto, bodies and parts..
Locomotives and cars...
Railroad repair shops...
Shipbuilding......................

ALL OTHER ^

...............................

60.0
50.0
35.1
44.9
53.3

Metal products..................
Blast furnaces......................
Steel wks. and rolling mills
Iron and steel forgings.
Structural iron work.............
Steam and hot wtr. htg. app,
Stoves and furnaces. . .
Foundries........................
Machinery and parts. .
Electrical apparatus...
. Engines and pumps. . .
Hardware and tools............
Brass and bronze products

j*'

35.8p
27.7
29.6
20.2
67.7
28.8

19 33

BANKERS ACCEPTANCES OUTSTANDING
EXECUTED BY BANKS IN PHILADELPHIA

DISTRICT

MILLIONS

$

Textile products..............
Cotton goods...............
Woolens and worsteds
Silk goods.................................
Textile dyeing and finishing
Carpets and rugs.................
Hats........................................
Hosiery...................................
Knit goods, other................
Men’s clothing......................
Women’s clothing................
Shirts and furnishings........

66.2

84.4
54.8
53.4
92.5
69.3
50.8
63.8
108.0
93.4
73.5
105.0
117.1

2.8

35.2

-32.7

- 3.3

- 1.4

24.6
14.6
20.7
36.1
30.0
38.8
47.1
19.7
28.4
38.1
16.2
31.0
30.3

-39.9
-40.9
-38.0
-23.0
-41.2
-26.2
- 3.5
-43.1
-43.7
-45.6
-41.1
-30.5
-22.7

0.0
+ 4.3
+ 1.5
+20.3
- 4.2
-11.6
-15.3
- 1.5
+ 4.8
- 3.3

-34.9 - 1.6
-41.3 -14.2
-61.4 + 5.7
+ 5.8 - 3.3
+ 3.7 + 0.1
-38.6 + 0.7

20.4p
9.7
24.6
11.5
38.3
28.8

-51.9 + 4.1
-56.7 -13.4
-70.0 +24.2
- 8.7 + 3.6
-23.4 + 1.9
-48.9 -11.7

- 5.2 - 2.7
-12.7 -10.3
-12.5 -12.2
- 0.2 - 0.2
-18.7 + 4.5
-13.3 -12.3
- 9.8 - 3.8
- 8.2 - 1.0
+19.7 - 5.3
+ 2.7 + 1.1
+ 4.0 + 6.0
- 3.6 - 2.7

58.2
41.1
32.0
70.2
53.7
30.6
51.8
75.9
62.4
43.8
70.5
78.8

-21.9
-25.4
-29.4

-10.5
-13.3
-20.6
+ 0.3
-22.6
+ 7.0
-26.1 -15.9
+11.4 - 4.6
-28.6 -15.3
+20.2 -14.9
- 7.6 - 5.4
-17.6 + 9.8
-15.4 - 4.7

-

8.8

+ 9.2
22.3
25.7
-23.5
-21.0

-13.2
7.7

-

- 4.4

- 1
+ 4.9
2.1

-

+

0.9
3.0
4.7
0.4
- 2.0
- 5.6
+ 6.7
-

0.2

-

8.0

+ 9.5
+ 0.7

-

8.6

Foods and tobacco..................
Bread and bakery products
Confectionery..............
Ice cream......................
Meat packing.............. .
Cigars and tobacco...

1928

1929

|930

193,

l932

Percentage change—Dec. 1932 from Dec. 1931
City areas*
Employ­
ment
Allentown....
Altoona...........
Harrisburg. . .
Johnstown....
Lancaster. . . .
Philadelphia. .
Reading...........
Scranton.........
Trenton...........
Wilkes-Barre..
Williamsport..
Wilmington...
York.................

-12.2
-19.4
-18.0
- 4.8
-24.6
-15.6
-16.0
-22.1
-14.3

-29.8
-38.2
-37.3
-51.2
-43.3
-29.5
-33.3
-26.2
-26.1
- 7.1
-57.9
-24.5
-16.0

Building
permits
(value)

Wage
payments

+10.1
-29.2
-11.5
- 2.9

- 66.3
- 73.0
- 57.2
- 84.3
- 82.7
- 61.8
- 86.6
- 73.4
+ 32.9
+ 475.6
+3879.9
- 64.6
- 81.4

Debits

-24.4
-33.3
+18.5
-39.3
-33.8
-21.5
-26.6
-18.9
-14.9
-23.4
-37.0
-30.5
-28.0

Retail
trade
sales
-24.0
-29.3
-21.5
-27.6
-30.1
-22.5
-26.5
-15.4
-23.6
-19.1

-17.0
-25.7
-18.4
-19.5
-16.7
-14.7
-13.0
-26.0
-16.5
- 3.7
-19.8
-20.4
-10.9

-36.3
-43.7
-32.9
-54.8
-39.5
-27.5
-32.4
-30.7
-31.7
-18.0
-37.7
-33.8
-23.2

+
—
—
—
—
—

+
—
—
—

1.3
58.4
68.2
76.9
32.3
62.0
82.3
51.0
53.6
52.9
13.8
57.8
70.1

-25.6
-23.0
-16.7
-34.9
-35.7
-33.0
-22.5
-13.6
-24.0
-20.2
-33.2
-26.7
-25.3

* Area not restricted to the corporate limits of cities given here.




- 9.5
- 6.8
-12.3
-14.0
- 0.9
-11.0

- 8.4
+ 0.4
-11.3
- 2.2
+ 0.2
-13.3

70.9
78.1
71.9
57.4
72.0
61.3

-16.6
-23.9
-28.0
-14.9
-22.9

+ 0.3
14.1

Stone, clay and glass products
Brick, tile and pottery..
Cement..............................
Glass..............................

44.2
46.5
31.5
68.1

-21.6 -11.1
-27.3 - 7.7
-32.8 -23.9
+ 4.3 + 1.2

19.1
16.5
12.3
44.4

-43.3
-49.2
-57.1
-13.1

-19.1
-16.7
33.2
- 4.9

Lumber products.....................
Lumber and planing mills.
Furniture...............................
Wooden boxes......................

38.2
15.2
47.2
52.7

-28.9
-59.6
-19.3
-11.1

- 9.3
-18.3
- 8.0
- 5.7

23.0
8.3
28.2
33.8

-45.6
-73.9
-40.3
-13.3

-14.5
25.9
11.9
-12.7

78.0
55.7
55.0
65.0
84.3
117.4

- 6.8
- 8.8
-10.3
-14.9
- 7.9
- 4.5

+
+
+
+

Leather and rubber products
Leather tanning..............
Shoes.......................................
Leather products, other.. .
Rubber tires and goods. . .

81.5
88.2
78.6
70.1
77.7

- 7.0
- 0.6
-15.5
- 0.8
-14.2

- 6.5
- 2.0
-15.1
- 2.9
- 0.8

54.8
59.6
42.6
51.5
66.6

-21.5
-15.2
-35.8
-29.6
-19.3

Paper and printing..................
Paper and wood pulp.........
Paper boxes and bags.........
Printing and publishing...

81.5
72.9
65.7
86.2

-10.2
- 4.1
-20.3
-11.2

+
-

0.6
0.7
1.1
1.5

65.9
47.7
57.9
73.9

-22.3
-17.8
-31.6
-21.7

+ 0.5

Anthracite mining..................... 60.6
22.0 - 0.5
Bituminous coal mining..........
+ 0.0
Canning and preserving..........
25.5
Construction and contracting.
-18.7
Hotels...........................................
2.1
Laundries.....................................
- 0.3
Dyeing and cleaning................
- 5.7
Public utilities............................
- 0.6
Quarrying and non-metallic
mining..................................
- 8.0
Retail trade................................. 101.1 + 2.8 + 8.1
Wholesale trade....................
80.6 - 7.5 - 0.2

47.1

-28.2

+10.2

Chemical products.........
Chemicals and drugs.
Coke........................ ..
Explosives....................
Paints and varnishes.
Petroleum refining. . .

2.9 60.6
7.5 43.6
0.2
19.9
4.3 54.0
6.8 58.5
2.5 103.2

-20.8

- 6.2
+ 1.6

- 8.5
-

2.2

-19.5 + 1.7
-19.9 + 9.5
-32.8 + 1.5
-30.1 -16.8
-27.2 + 9.1
-16.3 + 0.5
- 9.6

+ 0.2

-31.7
-18.3
- 4.3
-

0.2

- 4.9

+ 0.8

-25.4

12 months 1932 from 12 months 1931
Allentown.........
Altoona.............
Harrisburg. .. .
Johnstown........
Lancaster..........
Philadelphia. . .
Reading.............
Scranton...........
Trenton.............
Wilkes-Barre...
Williamsport...
Wilmington___
York...................

90.7
96.5
88.4
72.1
96.0
85.8

21.0
-29.6
-18.5
-29.8
-26.9
-21.8
-

-22.6

-19.7
-23.9
-15.8
-29.5

* 1923 1925 average = 100.

6.0

22.8
-21.3
1.6

- 2.5
9.2
+ 1.0
-10.4

p—Preliminary figures.

Page Seven

Index numbers of individual lines of trade and
manufacture

OUTPUT OF MANUFACTURES
PHILADELPHIA FEDERAL RESERVE DISTRICT
STEEL

Philadelphia Federal Reserve District
“Adjusted” index numbers make
allowance for the usual seasonal
changes which result from an un­
even distribution of business be­
tween the months of the year.
They are the most significant
indexes because they show im­
provement or decline beyond the
level usually to be expected.
“Unadjusted” indexes reflect
merely the actual changes which
may or may not be up to the
usual seasonal expectations.

Index numbers expr®& d in percentages of the 1923-1925 average
which is taken as 100
Not adjusted

Adjusted for seasonal variation

LOCOMOTIVES AND CARS

Percentage comparison

Dec.
1931

Nov.
1932

Dec. 1932
with

Dec.

Year
ago

Month
ago

12
months Dec.
1931
1932
tvith 12
months
1931

''A

Dec.
1932

Nov.
1932

SILK

Retail trade

Sales
All stores...................
Department.........
Men’s apparel. . .
Women’s apparel.
Shoe........................
Credit.....................

71.9
70.7
69.4
89.0
75.7
65.7

52.5
54.4
48.0
63.9
56.2
42.2

54.7p
54.9p
48.1
70.5p
61.7
46.6p

+ 4.2
+ 0.9
+ 0.2
+ 10.3
+ 9.8
+ 10.4

-23.9
-22.3
-30.7
-20.8
-18.5
-29.1

Stocks of goods
All stores........
Department.........
Men’s apparel. . .
Women’s apparel.
Shoe........................
Credit....................

65.5
63.9
65.7
93.7
73.3
56.6

52.2
53.2
51.1
72.0
56.3
43.8

51.6p
52. Op
51.5
72.Ip
56.4
43.2p

+
-

-21.2
-18.6
-21.6
-23.1
-23.1
-23.7

1.1
2.3
0.8
0.1
0.2
1.4

19.3
24.9
12.8
133.1
98.4
107.7

Rate of stock turnover
12 months (actual, not indexes)

63.2
65.9
53.lr
77.1
59.6
54.9

90.6p
96.8p
78.2
105.7p
80.2
76.4p

63.1
60.7
66.5
86.9
72.6
54.3

-22.1
-21.1
-27.2
-28.5
-23.6
-34.3

59.8
62.2
58.2
88.2
60.2
48.2

125

49.8p
49.4p
52 .4
06.8p
55.8
41.5p

- 6.6*

/

WORSTEDS

WOOLENS AND

v/V-

HOSIERY

3.82

4.09

Vo

Wholesale trade

Sales
Total of all lines....
Boots and shoes...
Drugs........................
Dry goods...........
Electrical supplies.
Groceries.................
Hardware................
Jewelry....................
Paper........................
Stocks of goods
Total of all fines.
Drugs........................
Dry goods...............
Electrical supplies.
Groceries.................
Hardware................
Jewelry....................
Paper........................

A A 'V
5.8
50.6
93.4
47.1
41.8
85.7
59.0
51.2
60.6

54.6r
48.2
78.8
31.9r
37.7
76.4
39.5
28.5
49.2

54.2 - 0.7
50.4 + 4.6
82.0 + 4.1
31.6 - 0.9
28.5 -24.4
79.4 + 3.9
38.1 - 3.5
26.6 - 6.7
48.6 - 1.2

-17.6 -22.1 73.6
- 0.4 -16.2 48.1
-12.2 -15.0 95.3
-32.9 -28.2 49.0
-31.8 -35.3 69.4
- 7.4 -14.0 86.6
-35.4 -36.8 64.3
-48.0 -37.0 105.0
-19.8 -22.9 57.6

77.3
63.5
74.1

68.0
53.9
68.6

Pig iron..........................................
Steel................................................
Iron castings..............................
Steel castings...............................
Electrical apparatus................
Motor vehicles......................
Automobile parts and bodies.
Locomotives and cars.............
Shipbuilding...............................
Silk manufactures....................
Woolen and worsteds..............
Cotton products........................
Carpets and rugs......................
Hosiery........................................
Underwear..................................
Cement........................................
Brick............................................
Lumber and products.............
Bread and bakery products..
Slaughtering, meat packing. .
Sugar refining.......... .................
Canning and preserving.........
Cigars..........................................
Paper and wood pulp.............
Printing and publishing.........
Shoes.......................... .................
Leather, goat and kid.............
Explosives...................................
Paints and varnishes...............
Petroleum products.................
Coke, by-product.....................

- 7.4*
19.8
41.6
36.8
36.0
75.8
35.1
87.8
14.6
155.8
110.8
47.7
42.8
39.2
97.1
89.8
52.2
34.8
25.9

11.3
24.5
22.8
45.1
39.1
16.Or
22.7
13.9
107.5
100.6
46.5
38.9
39.1
112.8
152.0
31.5
20.7
10.8

11.4
25.4
28.5
22.1
41.2
15.2
26.4
13.3
95.6
103.4
43.4p
32.6
32.3p
108.1
120.2
29.4
17.6
8.3

89.1 92.6 96.2
99.7 113.5 43.2
26.8 22.5 22.7l
86.1
73.7 69.7
57.6 48.0 47.4
98.2 76.2 76.8
85.8 122.4 78.0
80.3 82.2 73.3
52.8 57.6 48.4
49.2 56.9
78.4
142.3 136.4 138.5
54.8
68.7 56.1

+ 0.9
+ 3.7
4-25.0
-51 .0
+ 5.4
- 5.0
+16.3
- 4.3
-11.1
+ 2.8
- 6.7
-16.2
-17.4
- 4.2
-20.9
- 6.7
-15.0
-23.1
+ 1.6H
+ 3.9
-61.9
+ 0.9
- 5.4
- 1.3
+ 0.8
-36.3
-10.8
-16.0
+ 15.7
+ 1.5
- 2.3

* Computed from data unadjusted for seasonal variation.

Page Eight



-42.4
-38.9
-22.6
-38.6
—45.6
-56.7
-69.9
- 8.9
-38.6
- 6.7
- 9.0
-23.8
-17.6
+ 11.3
+33.9
-43.7
-49.4
-68.0
— 16.6*
+ 8.0
-56.7
-15.3
-19.0
-17.7
-21.8
- 9.1
- 8.7
- 8.3
-27.4
- 2.7
-20.2

61.8r
51.1
81.2
41.2r
49.0
83.3
43.8
40.8
51.7

59.1
47.9
83.6
32.9
47.3
80.2
41.5
54.6
46.2

59.8
64.1
69.1
113.9 111.4 104.1
40.2 36.6 32.5
78.6 72.6 69.4
83.4 75.6 70.0
73.4 63.2 66.1
50.8 54.4 46.9
68.6 67.2
71.1

+ 1.9 -13.4
+ 0.4 - 8.7
- 0.8 -19.0
+16.1 -11.7
2 0 -16.0
69.6 + 2.4 -10.0
58.6 4- 8.7 - 7.7
70.0 + 2.0 - 5.5

73.7 62.6 63.8
121.2 110.3 110.7
46.2 37.7 37.4
88.3 67.2 78.0

Rate of stock turnover
12 months (actual, not indexes)

Output of manufactures

\ /

19.6
39.1
34.2
34.6
73.5
27.7
86.0
14.6
163.6
113.0
44.6
45.9
40.8
94.2
88.9
42.8
33.8
25.4
93.7
96.8
64.8
27.1
62.0
58.2
99.2
72.9
87.5
52.3
76.0
142.2
66.6

p-Preliminary.

LUMBER

11.4
23.5
23.3
41.9
41.4
13.9r
20.9
12.9
107.5
101.6
50.6
40.9
39.9
128.6
153.5
30.9
20.5
10.9
76.9
103.3
73.8
24.6
88.4
48.0
77.0
115.1
79.7
57.6
50.7
137.2
53.9

11.3
23.9
26.5
21.2
40.0
12.0
25.9
13.3
100.4
105.5
40.4p
35.0
33.6p
104.9
119.0
24.1
17.1
8.1
78.1
104.1
28.1
23.6p
50.2
47.9
77.6
66.3
79.9p
47.9p
55.2
137,9p
53.2

PAPER AND WOOD PULP

r

_

"vvn

SHOES

A

A

125

.

A

\l\ An

v

7

V

1

LEATHER-C,0AT AND KID
150

„f\

xr\

r

Li__A-------------

—

V/

PETR0LB.M REFINING

V/-V

CIGARS

/

p/Wa.
1929

r-Revised.

PRODUCTS

50

4.28

4.62

-58.0
-48.4
-41.5
-53.8
-43.7
-40.0
-29.1
-28.1
- 9.2
-13.3
-23.8
-25.7
-22.0
+ 1.9
+ 1.2
-43.3
-49.2
-36.1
—17 .3*
+12.4
+ 1.0
-21.4
-17.6
-21.8
-19.9
- 3.2
-24.6
-26.0
-20.0
- 5.7
-35.0

CEMENT

1930

1931

19 32

’

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