View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

THE BUSINESS REVIEW
THIRD FEDERAL
PHILADELPHIA

RESERVE DISTRICT
SEPTEMBER i, 1930

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

Business and Financial Conditions in the United States
Business activity declined further
during July and industrial production
and factory employment reached the
lowest levels in recent years. Crops
were damaged by prolonged drought.
Wholesale prices declined further until
early in August when agricultural
prices increased. Money rates con­
tinued easy.
Production and em ploym ent. Output

o f factories and mines decreased by
about 6 per cent during July, according
to the Board’s index o f production
which makes allowance for seasonal
fluctuations. A number o f automobile
factories were closed during part of
the month and there was a substantial
reduction in output of iron and steel
and cotton textiles. Daily average pro­
duction o f bituminous coal, lumber,
and shoes continued small.
In the
first half o f August, the output o f steel
showed a further slight decrease.
Some automobile plants resumed oper­
ations on a limited scale.
Factory employment and wage pay­
ments decreased further, and at the
middle o f July were at the lowest level
since 1922. The reduction in number

o f workers employed was largest at
steel and automobile plants, car shops
and foundries, hosiery and cotton mills,
and clothing factories. There was a
seasonal increase in employment in the
canning, flour, and shoe industries.
W orking forces at bituminous coal
mines were further reduced, and the
Department o f Agriculture reported an
unusually small demand for farm
labor.
Building contracts awarded during
July and the first half o f August were
in exceptionally small volume, ac­
cording to reports by the F. W . Dodge
Corporation.
The reduction from
June was primarily on; account o f
smaller awards for public works and
utility construction. Building in other
lines continued relatively inactive.
Feed crops and pasturage have been
severely damaged by drought, which
was not broken until the middle of
August. The August 1 crop report o f
the Department of Agriculture indi­
cated a corn crop o f 2,212,000,000
bushels, the smallest since 1901, and
the smallest hay crop in ten years.
Food crops were less severely affected,

with wheat production estimated at
821,000,000 bushels, 15,000,000 bushels
larger than last year. The cotton crop
was estimated at 14,362,000 bales, or
slightly less than a year ago.
Freight car loadings
have been in smaller volume than at
the same season o f any other recent
year. Department store sales declined
in July to the lowest level since the
summer o f 1924
Distribution.

The sharp downward move­
ment o f wholesale prices continued
through July, and the Bureau o f Labor
Prices.

Index of United States Bureau of Labor Statis­
tics (1926 = 100, base adopted by Bureau).
Latest figure July, 84.0.
PER CENT

Index number of production of manufactures
and minerals combined, adjusted for seasonal
variations (1923-1925 average=100).
Latest
figure July, 95.




Index num ber of factory em ploym ent and
payrolls, with adjustm ent for seasonal varia­
tions. (1923-1925 average=100).
Latest fig­
ures July, employm ent 84.6, payrolls 82.0.

M onthly rates in the open
Y ork: commercial paper rate
paper. Acceptance rate on
acceptances. Latest figures
first 20 days in August.

PER CENT

market in New
on 4 to 6 m onth
90-day bankers’
are averages of

Page One

Statistics index fell to a level 14 per
cent below that o f a year ago. The
most pronounced decreases from June
to July were in the prices o f cattle,
beef, wheat, cotton, silk, and rubber,
and nearly all commodities showed
some decline. During the first half o f
August, prices o f grains moved up­
ward, reflecting the influence o f the
drought. There have also been recent
increases in the prices of cattle, hogs,
silver, and silk, while the prices of
cotton, copper, iron and steel, and
rubber have declined further to the
lowest levels in recent years.

Bank credit. Loans and investments
o f reporting member banks in leading
cities decreased slightly between July
16 and August 13, largely as a result
o f a decline o f $48,000,000 in security
loans. All other loans showed little
change, while investments increased
further.
Reserve bank credit outstanding in­
creased by about $60,000,000 during
the first three weeks o f August, re­
flecting seasonal increase in the de­
mand for currency and a decrease o f
about $25,000,000 in the country’s gold
stock chiefly on account o f gold ex­

ports to France. The increase in re­
serve bank credit was in the form of
bankers’ acceptances and United States
Government securities; member bank
borrowings showed little change.
Money rates continued easy. The
prevailing rate on commercial paper
was reduced to 3 per cent around the
first o f August and remained at that
level during the first three weeks o f
the month. Bond yields continued to
decline. Discount rates at the Federal
Reserve Banks o f St. Louis, San Fran­
cisco, and Kansas City were lowered
from 4 to 2>y2 per cent during August.

Business and Financial Conditions in the
Philadelphia Federal Reserve District
Industrial and commercial activity
in this district as in the country has
been at a relatively low level, and in
July business generally was the dullest
in years. Such seasonal improvement
as has occurred in August has been
less extensive than is normally ex­
pected. This exceptional slackness in
trade and industry has been reflected
in a substantial reduction in the re­
serve bank credit in use in comparison
with other recent years when business
activity was at a higher level than at
the present time. Funds for commer­
cial purposes, moreover, have been in
plentiful supply and money rates have
been the lowest in years.
Manufacturing. Manufacturing activ­

ity in July was curtailed to a much
greater extent than is normally the
case, and in early August the expected
seasonal upturn failed to materialize,
save in a few lines.
Factory wage payments in this sec­
tion continued the sharp decline since
March and in July reached the lowest
level for any month since the middle
o f 1924. Employment also declined
noticeably and was even lower than in
July six years ago. This recession
has not been confined to this district
alone; on the contrary, the relative
decline in the country has been some­
what greater than here, reaching in
July the lowest point since the middle
o f 1922. The sharpest drop in fac­
tory payrolls in Pennsylvania between
June and July occurred in the textile,
stone, clay, and glass, transportation
equipment, and metal products indus­
tries.
The demand and prices for fabri­
cated metal manufactures declined
Page Two




further, buying by the principal con­
and noticeably less than a year ago.
The leather industry is holding its
sumers o f these products being at a
comparatively low level. Orders on
ground, though prices show further
the books o f reporting firms have de­
weakness. In response to an increas­
creased noticeably in spite o f the ap­
ing demand, the daily output o f shoes
parent improvement in business senti­
increased in July from the low level of
the previous month. Advance orders
ment expressed by several firms.
The daily output o f pig iron con­
also show appreciable gains, while
tinued downward, reaching in July the
stocks have declined in the month and
smallest quantity since 1924. Opera­
as compared with a year ago. Local
tions o f steel works and rolling mills,
tanneries also expanded their opera­
on the other hand, showed a slight up­
tions somewhat earlier than is usual
turn in the index when it is cor­
and are now definitely on the upgrade.
Activity in the group comprising va­
rected for the usual seasonal changes.
rious food products, while showing a
Other leading metal industries as a rule
decline in wage payments during July,
reported further declines in plant oper­
continued at a fairly stable level in
ations and output. This is also true of
point o f production. Gains over the
those industries which comprise the
previous month in fact have been noted
transportation equipment group.
in sugar refining, bread and bakery
The market for textile products gen­
output, canning and preserving, and
erally has been dull, although demand
to some extent in animal slaughter­
in the first half o f August showed
ings. At least part o f these gains,
some seasonal gains. Prices o f textile
especially in August, were characterfibres and manufactures have con­
tinued to decline, a
t r e n d which has
been in effect since
FACTORY EMPLOYMENT
the spring o f last
PERCENT
year. Textile pro­
1923— Z5 AVG — IOO
ductive activity on
the whole was re­
duced in July to the
A
PHILADELP
lowest level in many
H IA 7
\
w ________
years. As a result,
100 ; V
consumption o f raw
/ \
.
/ J
'• A .
materials and the
-•— v ' " \
PENNSYLVA NIA \
output o f finished
90
products
declined
U
c o r r e s p o n d in g ly .
\
- A
S t o c k s h e l d at
80
*
\
'P
IT
T
.5BURGH
plants for the most
part
have
been
70
smaller t h a n in
1926
1927
1928
1929
1930
the previous month

TEXTILES

1925

1926

1927

1928

1929

l§^0

1925

1926

1927

1928

1929

1930

Source: Cotton— Bureau of Census
Silk— Silk Association of America

istic o f the season. The daily output
o f tobacco products on the whole de­
creased.
More than the ordinary quiet pre­
vails in the chemical industry, reflect­
ing
in the main
unsatisfactory
conditions in other lines, particularly
textiles. Prices, especially o f indus­
trial chemicals,
declined
further.
Plant operations generally have been
curtailed more sharply than at the
same time in other years.
Among the principal building ma­
terial manufactures, the output of
cement, and lumber and its products
showed slight gains, after making due
allowance for seasonal fluctuations,
while production o f brick declined very
sharply. The present level o f activity
in the entire industry is the lowest in
several years. Prices generally con­
tinue to exhibit weakness.

July, 1930
(Daily average)
Electric power
Philadelphia Federal
Reserve District
12 Systems

Change Change
from
from
June,
July,
1930
1929
Per cent Per cent

Rated generator capacity.........

+

6 .7

....0 .0

Generated outp ut.......................
H ydro-electric.........................
Steam ........................................
Purchased.................................

- 1.3
- 1.1
+ 4 .0
-1 2 .2

- 4 .9
-4 7 .2
+ 11.9
- 2.4

Sales of electricity.......................
L ighting....................................
M unicipal.............................
Residential and commercial.....................................
P ow er........................................
M unicipal.............................
Street cars and railroads. .
Industries..............................
A ll other sales..........................

+ 0 .0
+ 13.8
+ 8 .4

-

+ 14.6
+ 3 .4
+ 19.6
- 7 .5
+ 5 .0 *
-3 8 .7

- 9 .9
- 5.2
+ 2 .9
- 0 .5
- 6 .1 *
-3 0 .1

* W orking days average.




8.1
9.3
3.9

July, 1930
Percentage
change since

Business indicators
Philadelphia Federal Reserve District
Amount

July,
1929

June,
1930

Retail trade*— estimated net sales (152 stores)
Department (6 4)..............................................
M en’s apparel (1 8 )..............................................
W om en’s apparel (1 7 )........................................
Shoe (3 7 )...............................................................
Credit (16)............................................................

$578,280
$495,523
$14,715
$46,431
$11,669
$9,942

- 5 .0
-2 5 .4

W holesale trade*— net sales (103 firms)
Boots and shoes (5 )................................
Drugs (1 0)................................................
D ry goods (1 2 )........................................
Electrical supplies ( 5 ) ............................
Groceries (3 2 )..........................................
Hardware (2 2).........................................
Jewelry (1 0).............................................
Paper (7 )...................................................

$258,843
$3,199
$41,751
$9,891
$15,033
$109,918
$55,719
$8,070
$15,262

-1 3 .4
- 8 .7
+ 0 .3
-1 6 .1
-4 3 .5
- 5 .8
-1 8 .0
-3 0 .0
-1 9 .4

- 5 .3
- 4 .3
- 3 .8
-1 4 .4
- 4 .1
1.1
-1 0 .4
-2 5 .3

303,022
$7,329,261
p rs...................37,076
doz. p rs.........45,539
lbs................. 187,756
604,300
ton s.................. 6,225
ton s.......................174
ton s.......................179
ton s.............. 217,800
ton s.............. 379,300

-1 1 .5
-2 0 .4

+

+ 5 .6
-4 5 .1
-2 4 .0
-4 0 .9
+ 13.4
-1 6 .7

bbls.................61,774
bbls...............115,032
K W H . . .16,030,600

-

Productive activity*—Employment— 840 plants in Penna..............................................
Wage payments (weekly average)................................................
Shoe production!— 71 factories.....................................................
Hosiery productionf— 132 m ills....................................................
W ool consum ption!— 69 m ills.......................................................
Active cotton spindle hours (P enna.)..........................................
Pig iron p roduction..........................................................................
Iron casting production— 33 foundries........................................
Steel easting production— 11 foundries.......................................
Anthracite.......................................... ................................................
Bituminous coal (Penna.)...............................................................
Petroleum receipts at Port of Philadelphia— domestic and
foreign..............................................................................................
C em ent................................................................................................
Electric power output— 12 system s..............................................
Financial and credit—
Debits (check payments)—-18 cities...............................................
Loans and investments— middle of August— 90 member banks.
Bills discounted held by F. R. B. of Phila. (daily average). . .
Bankers’ acceptances outstanding— end of m onth.....................
Commercial paper sales— 4 dealers..............................................
Commercial failures— num ber.........................................................
Commercial failures— liabilities.......................................................
Building and real estate—
Building permits— 16 cities......................................................
Building contracts awarded..............................................................
Number of real estate deeds recorded (Philadelphia cou n ty)..
Value of mortgages recorded (Philadelphia cou n ty)..................
Sheriff sale— number of writs issued for August— (Philadel­
phia cou n ty ).....................................................................................
Miscellaneous—
Freight car loadings (Allegheny district).....................
Tonnage of vessels (Port of Philadelphia)...................
Sales of life insurance (Penna., N. J., and D e l.)........
Automobile sales registrations of new passenger cars

-

9 .2
9 .3
7 .7

-

6.6

-3 0 .5
-2 9 .6
-3 4 .1
-3 9 .3
-2 2 .5
-2 8 .3

+ 0.1

-

-

1.6
3 .9
1.3

4 .8
9 .4
1.4
21.2
8.8

- 1.9
- 9 .2
- 3 .9
-3 2 .2
+ 5.1
- 2 .7
-

6.1

+

1.6
4 .9

-

$2,374,165,000
$1,653,000,000
$24,400,000
$20,700,000
25,020,350
96
$2,513,152

-2 4 .0
+ 1.9
-6 8 .4
+ 38.0
+ 7 2 4 .5
+ 68.4
+ 98.3

- 9 .8
+ 0 .7
-1 3 .2
+ 2 .0
+ 1 9 6 .5
- 5 .0
-1 5 .2

$5,171,244
$20,362,000
4,163
$12,038,096

-8 0 .8
-4 0 .0
-2 0 .9
-5 1 .9

-5 6 .0
-6 7 .0
- 5 .9
+ 3 .4

+

5 .5

-1 3 .0

-1 6 .9
2 .0

+ 2 .4
+ 3 .6
- 7 .7
-2 6 .9

1,263
811,178
ton s......... 4,635,408
$105,728,000
13,083

+

+ 0.1
-3 3 .2

* Daily average of monthly figures,
t Bureau of Census preliminary figures.

Page Three

G O AT

AND

KID L E A T H E R

M IL L IO N S

STOCKS
/ V 'V

-f *
J
J\

rT
U1“1““11
1926

=6^ J-\
w

OUTPUT

1928

1927

1929

1930

Source: Department of Commerce

Building and real estate.
The con­
struction and contracting industry has
been fairly active, although the present
level remains considerably lower than
at the same season o f other recent
years.
Employment and wage pay­
ments in Pennsylvania increased fur­
ther between June and July, the
largest percentage gain being in the
western part o f the state.
The proposed expenditure under per­
mits issued in 16 cities o f this district,
however, decreased substantially in the
month and as compared with a year
earlier. Similarly, the value o f con­
tracts for new construction declined
sharply, reaching in July the lowest
level for that month, with one excep­
tion, since 1921. Awards thus far this
year have been running materially be­
low the monthly average o f the past
five years, as is shown by the ac­
companying table. The sharpest drop
in the month occurred in contracts for
industrial buildings, which in June
showed an exceptionally large volume.
Appreciable decreases also took place
in residential buildings and public
works and utilities.

Building contracts
awarded
(000s omitted in
dollar figures)

First
seven
months,
1930

Philadelphia...............
Reading.......................
Scranton......................
Cam den.......................
T ren ton.......................
W ilm ington.................

$96,178
1.749
3,067
2,539
2,611
3,969

T otal for Philadelphia Federal Reserve District, ineluding all cities. . .

Per cent change
from

1929

- 6 .0
-7 4 .5
+ 85.2
-7 8 .1
-7 0 .2
-4 1 .1

1925-28
average
—22.1
—52.5
+ 6 .3
-5 0 .6
-5 0 .9
+ 15.2

The real estate situation continues
relatively quiet. The renting demand
for less expensive houses is only fair
and rents generally have declined dur­
ing the past three months. Sales of
houses on the whole have shown no
material change since last month and
have been in a smaller volume than a
year ago. The number o f real estate
deeds recorded in Philadelphia declined
further, while the value o f mortgages
increased somewhat between June and
July; but compared with a year ago
both showed noticeable decreases.
Foreclosures during August declined,
following an unusually high peak in
the preceding month.
Coal. In anticipation o f the usual fall
advance in prices, the demand by
householders for anthracite improved
slightly in the latter part o f July, and
it has been fair since then. The daily
output o f collieries increased and the
total production in the month of
5,662,000 tons was the largest o f any
July since 1926. Although production
declined in the first three wreeks of
August, it was larger than in the cor­
responding period of a year ago.
The dullness in the market for bi­
tuminous coal continued through July,
and there was virtually no improve­
ment in August. The daily output of
Pennsylvania collieries declined and
the total production in the month,
although slightly larger than in June,
amounted to 980,000 tons less than
in July, 1929.
Agriculture. Although moderate rains

241,477

-1 1 .0

Source: F. W . Dodge Corporation

Page Four




-1 0 .2

about the middle o f August served to
check the withering effect o f the
drought, a marked deficiency o f sub­

soil moisture continues to exist, the
rainfalls being insufficient to provide
the necessary irrigation. Late reports
from the county agents indicate that
the present crop conditions are gen­
erally lower than the government esti­
mates which were made as o f August
1, 1930. Early estimates o f farm in­
come generally are less favorable than
they were at the same time in the past
two years, reflecting smaller yields
and lower prices.
Such leading crops as corn, alfalfa
hay, late potatoes, and fruit are re­
ported to have been seriously injured
by the drought, although the degree of
this damage has been less pronounced
in this district than in the country.
Nevertheless, the Pennsylvania tobacco
crop, which gave promise o f high
yields earlier in the season, has deteri­
orated so rapidly that its present con­
dition is said to be the poorest in
many years. Most o f the early crops
as a rule escaped the effects o f the
dry weather, so that the yield and
quality measured up favorably to the
average o f past years.
Because o f the parched grazing
meadows, livestock generally have re­
quired additional feeding. The con­
dition o f dairy cattle, wffiich last month
compared favorably with the July
averages o f the past ten years, is now
reported as only fair. Shipments of
milk and cream bv farmers in the main
have been in smaller volume this year
than last.
Distribution. Wholesale
trade
as
measured by dollar sales declined by
about the usual seasonal amount be­
tween June and July, dealers in all
lines except paper reporting smaller

DEPARTMENT

A U T O M O B IL E

STORES

P h i LA. FED. RES. DIST.

P H IL A .

s EASONALLY ADJUSTED

FED.

REGISTRATION
RES.

D IS T R IC T

PA SSE.NGE =? CARS
SALES

b u

i

i C 'v k /

ll/ 'N

/

S T O C K S '"*

I/ V

a

_____

1

1 9 2 3 -2 5 A V G .-I0 0

1927

I

1

1929

1930

y

/

3

1926

1

V \

d 1
jfK

FOR

SEAS

............. l i m n m i H .

1928

/

i!

IL A

V '

1926

X 1 i

r

4,

V l

1923llN
DE-25/^ 4 A
'f\ \
\
V
ONAL CHANGES

l\

^ I
„ V 1

1

1

1927

ADJUSTED Y

,1 i -n . * . . . . . .

1928

1929

. . . . . . . .

,

1930

Source: R. S. Polk Company
Pennsylvania Motor List Company

volumes. In the first fortnight of
August, when normally wholesale
business begins to turn upward, fur­
ther decreases were shown by many
preliminary reports.
In comparison with July 1929, the
wholesale and jobbing trade in the ag­
gregate showed a drop o f more than
13 per cent, sales o f drugs alone be­
ing slightly larger. In the first seven
months o f this year all lines had a
smaller dollar volume of business than
in the same period last year, the range
o f the decline varying from about one
per cent in drugs to 28 per cent in
electrical supplies. This recession co­
incided with a sharp downward trend
in commodity prices this year in con­
trast with a fair degree of stability a
year ago. Latest reports show that
wholesale prices have continued to
decline.
Stocks o f goods held by dealers at
the end o f July on the whole were
smaller than in the preceding month
and a year ago. Collections in all lines
were smaller in July this year than
last.
Dollar retail sales in July declined
to the lowest level since the middle
o f 1922. Sales in the first seven
months of this year were nearly 6 per
cent smaller than in the same period
last year. At least part o f this de­
cline was due to price recessions which
followed a rather steady decrease in
wholesale prices since the last quarter
o f 1929. Unsatisfactory industrial
conditions have affected adversely the
volume o f retail trade in comparison
with other years.
Most o f the early reports for the
first part of August showed a con­
tinued decrease in sales, a trend which




is contrary to the usual development
at this season. Price recessions gen­
erally have been more extensive than
for some time past. Retail prices o f
food declined further between June
and July.
Inventories o f retail establishments
have remained at a relatively low level,
and in July they were reduced to the
lowest point in many years. Turnover
was a little smaller in July this year
than last, but for the year to date it
about equalled that for the same period
last year. Collections as a rule were
smaller than in July, 1929.
Railroad shipments o f commodities
in this section in July increased by a
somewhat larger amount than is cus­
tomary for that month. Loadings in
the early part o f August continued up­
ward as is to be expected at this sea­
son. Compared with each o f the last
two years, the movement o f commodi­
ties has been in smaller volume, the
decline being attributable chiefly to
smaller shipments of coal, merchandise,
and miscellaneous goods.
Sales o f new passenger automobiles
declined seasonally and were the low ­
est in several years, when due allow­
ance is made for the usual seasonal
fluctuations, as is shown by the accom­
panying chart. Ordinary life insurance
sales in July declined seasonally, but
they were higher than in any July in
the last decade.
Financial conditions. The credit situ­
ation in this district continues quite
favorable to business; funds have
accumulated considerably, reflecting
largely the unusual slackness o f indus­
try and commerce and prevailing dull­
ness in the stock market. The discount

rate o f the Federal Reserve Bank re­
mains at 3^2 per cent, and no change
has been made in the 4 per cent re­
newal rate for call money in Philadel­
phia, but large member banks in this
city report a further reduction in rates
for commercial loans to prime cus­
tomers.
The average now is little
over 4 per cent, and is the lowest in
several years.
The settlements o f commercial and
financial transactions with other dis­
tricts were especially favorable to the
money market in this district during
the four weeks ended August 20. In
part this may have been due to the
withdrawal o f a portion of the funds
held in other districts either in the
form o f deposits or brokers’ loans.
The condition o f business made little
additional currency necessary, and the
banks were free to apply the major
portion o f the funds gained in the set­
tlements to a reduction in reserve bank
credit and the building up of reserve
deposits. The gold gained in the set­
tlements was the principal factor in
raising the reserve ratio of the bank
from 83.9 per cent to the exceptionally
Flow of Funds Affecting the M oney Market of the
Philadelphia Federal Reserve District
July 24 to August 20, 1930
(In millions of dollars)
Funds gained:
Gold (largely through favorable balances in
interdistrict settlem ents)............................ 17.1
Unexpended capital funds of reserve bank,
decrease i n .............................................
1
17.2
Disposition of funds:
Federal reserve credit in use,* decline i n . . . 8.1
Bank deposits at reserve bank,increase in .
4 .9
Treasury operations, excess of collections
over expenditures.........................................
3 .3
Currency, increase in demand f o r .......................... 9
17.2
* Includes bills discounted, bills bought, and float.

Page Five

high figure o f 86.1 per cent on A u­
gust 20.
City banks are nearly out of debt at
the reserve bank, and country member
banks, too, are borrowing in small vol­
ume, as may be noted from the fact
that the total o f bills under discount at
this bank was less than 17 millions on
August 20. This was a reduction o f
more than 4 millions in the past month,
and was the lowest amount held in
many years, lower in fact than in 1924,
when the influx o f gold into this coun­
try and the credit operations o f the
system, at a time o f low industrial
activity, were influential in carrying
money rates down to levels much the
same as those now prevailing. During
the past four weeks this bank partici­
pated in the purchase o f United States
securities for the account o f the sys­
tem and its holdings o f these securities
increased by over 2 millions. No pur­
chases o f bills have been made re­
cently, owing to the high buying rate
o f the bank, and the bills actually in
the possession o f the bank a month ago

Ninety member banks
Aug. 14, Aug. 13,
in 20 cities
Changes
1929
1930
(000,000’s omitted)
Loans on securities........
Other (largely commercial) loans....................

$578

$601

623

598

-

25

T otal loans and discou nts.................. $1,201
Investm ents....................
421
Net demand d ep osits.. .
841
Time deposits.................
458

$1,199
453
884
532

+
+
+

$2
32
43
74

+$23

Commercial paper sales by four
dealers operating in this district
reached the unusually high amount o f
$25,020,000 during July. This figure,
which includes a small portion dis­
posed o f outside o f the Philadelphia
district, was the highest in records
going back to 1921. About threequarters o f the total was purchased
by Philadelphia banks.
Commercial
paper sales
(four
dealers)

Sales to
Totals
City
banks

Country
banks

1930— Jan. . $ 7,0 1 2,50 0 $8,124,500 $15,137,000
Feb. .
6,9 7 5,00 0
875,000 6,100,000
Mar.
7.8 4 0.00 0 4.4 9 5.00 0 12,335,000
A p r ..
8.3 3 7.50 0
4.2 6 5.00 0 4.0 7 2.50 0
7,7 6 2,30 0 3.915.000 11,677,500
M ay.
June. ,5,000,000 3.437.500
8 .4 3 7.50 0
July . 18,686,000 6,3 3 4,30 0 25,020,300
1929— July .

120,000

2,914,500

3,0 3 4,50 0

Total sales in the first seven months
o f 1930 amounted to $87,900,000, more
than four times the sum disposed o f
in the corresponding period o f 1929.
In harmony with the tendency
shown in the national figures, the out­
standing acceptances o f banks in this
district increased from $20,292,000 to
$20,687,000 during July. This com ­
pares with $15,046,000 at the end o f
July, 1929.
Federal Reserve
Philadelphia
(Dollar figures in
millions)
Bills discounted for
member banks in
Philadelphia. . .
Other communi­
ties ......................
T o t a l b ills d is ­
counted .............
Bills b ough t..............
United States secu­
rities ...................
Other securities........
T otal bills and se­
curities ...............
Federal reserve note
circulation.........
Member banks’ re­
serve deposits. .
Cash reserves............
Reserve ratio............

Changes in
Aug. 20,
1930

Four
weeks

One
year

$ .7

-

$ .7

-$ 5 2 .7

15.9

-

3 .7

-

28.2

$16.6
.1

—$ 4.4
.8

-$ 8 0 .9
4 .4

52.3
1 .0

+ 2 .1
0

+ 34.5
+
.7

$70.0

—$3.1

-$ 5 0 .1

124.2

-

CO




given for a somewhat larger group
o f banks:

+

Page S ix

have matured; the
small sum remain­
ing on the books
represents a par­
ticipation in bills
held by another re­
serve bank.
Member banks in
four o f the larger
cities o f the district
report only a slight
increase in loans
over the last four
weeks. Loans on
securities declined
from 508 to 498
millions, probably
owing in part to a
reduction in loans
to New York brok­
ers, for the rates quoted on call loans
in New York have not been especially
attractive to lenders. Other loans and
discounts, however, increased from 422
to 434 millions; there is a strong possi­
bility that at least a portion o f this in­
crease was due to the purchase o f com­
mercial paper, for sales o f this paper
are said to have been active and the
dullness o f industry and commerce
makes it improbable that customers’
loans to finance such transactions have
increased to any material extent.
The weekly reporting banks show
an expansion o f 11 millions in the
total o f net demand, time, and govern­
ment deposits between July 23 and
August 20, and an increase o f about
20 millions in their investment hold­
ings, about one-third o f which was in
the form o f government securities.
The banks in this group include most
o f the member banks in Philadelphia,
among which are large institutions
whose condition is very responsive to
changes in the financial situation, so
that the figures which they report de­
serve careful attention. A chart de­
picting changes in their loans and in
other items since the beginning o f
1928 accompanies this article. Loans
have increased in recent months, but
the total still is materially lower than
at the peak last November, when both
loans on securities and other loans
were in large volume. The long de­
cline in investments ended early this
year and since that time a plethora of
funds has caused the banks to add to
their holdings in an amount somewhat
greater than the increase in their
time deposits.
In the accompanying table compari­
son o f changes in the past year is

28.4

143.1
+ 5 .0
+ 10.3
231.7
+ 11.0
+ 3 2.3
8 6 .1 % + 2 .2 % + 1 6 .7 %

Employment
July, 1930
Employment and
wages
in Pennsylvania

Percentage change July 1930, compared with July 1929

Payrolls
July, 1930
City conditions
by city areas*

Per cent
change since
July
index*

Per cent
change since

June,
1930

July,
1929

June,
1930

All manufacturing industries
(51)......................................

88.9

- 1 1 .5

-

4.8

81.9

-2 0 .4

-

Metal products.........................
Blast furnaces.......................
Steel wks. & rolling m ills. . .
Iron and steel forgings........
Structural iron w ork...........
St. & hot wtr. htg. a p .........
Stoves and furnaces............
Foundries...............................
Machinery and parts...........
Electrical apparatus............
Engines and pum ps.............
Hardware and tools.............
Brass and bronze p roducts.

87.4
56.0
78.3
78.0
127.1
100.9
75.3
93.0
96.0
112.9
86.5
85.4
89.7

- 1 5 .7
-1 3 .6
-1 4 .3
-2 6 .9
+ 9.1
- 3 .3
+ 14.6
-1 0 .7
-1 4 .9
-2 3 .7
-1 3 .7
-1 5 .2
-1 2 .1

- 3.5
+ 2.8
- 5.0
-1 3 .9
- 0.2
+ 0.1
-1 0 .6
- 2 .8
- 3.1
- 1.0
- 4 .7
- 4 .4
-1 1 .7

81 .5
54.0
72.6
67.7
116.3
91.9
61.4
78.8
83.6
119.2
85.2
73.0
83.3

-2 3 .9
-1 7 .7
-2 4 .6
-3 6 .3
+ 11.4
-1 8 .1
+ 7 .2
-2 7 .0
-3 0 .0
-2 2 .5
-2 2 .9
-2 6 .4
-1 8 .6

- 8.3
- 0 .9
- 9 .9
-1 3 .2
- 6.7
- 3 .8
-1 7 .4
- 6 .0
- 5.4
- 6 .0
- 5.9
-1 0 .5
—15.5

- 5 .4
+ 1.1
-2 4 .1
-1 6 .1
- 0 .5
+ 56.2

+
—

6 4 .lt
46.7
59.3
41.0
74.4
144.5

-2 0 .9
-1 9 .9
-3 5 .8
-2 3 .4
-1 3 .0
+ 56.0

-1 0 .8
-1 4 .5
-1 0 .2
-1 4 .2
- 4 .6
— 2.2

Textile products........................ 86.0
C otton goods......................... 62.2
W oolens & worsteds............ 55.9
Silk good s............................... 90.0
Textile dyeing & finishing.. 89.0
Carpets and rugs.................. 6 1.5
H a ts........................................ 88.6
H osiery................................... 104.0
Knit goods, Other................ 87.6
M en’s clothing...................... 80.3
W om en’s clothing................. 68.8
Shirts & furnishings............. 125.0

-1 6 .7
-2 7 .3
-1 9 .9
-1 5 .0
-1 5 .2
- 9 .0
- 9 .3
-1 9 .8
-1 1 .8
- 9 .0
-4 2 .7
- 6 .0

- 1 1 .5
- 6 .7
- 0 .9
-1 7 .9
- 4 .5
- 6 .3
- 0 .2
-1 1 .6
- 5.1
- 4.1
-3 7 .7
...0 .0

71 .4
47.4
51.9
79.8
82.1
43.2
72.9
81.6
86.8
65.7
63.1
109.2

-3 2 .9
-3 9 .7
-2 2 .3
-2 4 .8
-2 3 .9
-2 0 .1
-2 8 .7
-4 7 .7
-2 6 .4
-3 3 .0
-4 4 .3
-1 7 .8

- 1 8 .9
-1 3 .3
- 0 .6
-2 5 .1
-1 4 .4
- 7.1
+ 1.8
-2 7 .6
- 8 .4
-1 6 .3
-4 2 .0
- 2 .8

Foods and tobacco...................
Bread & bakery products . .
C onfectionery........................
Ice cream ...............................
Meat packing........................
Cigars & tob a cco..................

110.0
111.4
94.5
130.0
95.0
110.3

+
+
+

+
+
-

2 .0
1.5
1.4
0 .3
0 .6
4 .0

104.6
111 .5
83.3
124.8
89.8
100.3

+ 1.9
+ 1-1
-1 2 .2
— 5 .5
- 5.9
+ 15.3

- 3 .9
- 0 .6
-1 5 .1
- 0.1
- 2 .7
- 2 .7

Stone, clay & glass prods. . . .
Brick, tile & p ottery...........
Cement
.............................
Glass........................................

68.1
82.0
64.6
60.1

-1 7 .9
-1 3 .7
- 6 .8
-3 2 .8

- 3 .5
- 2.1
+ 3 .0
-1 3 .2

55.0
58.5
59.3
46.8

-2 8 .6
-3 3 .0
-1 4 .4
-4 3 .7

- 1 4 .1
-2 1 .1
- 1.2
-2 6 .6

Lumber products......................
Lumber & planing m ills. . . .
Furniture................................
W ooden boxes.......................

74.1
73.9
68.1
72.5

- 2 5 .5
-3 0 .7
-2 9 .9
+ 2.1

-

6 .6
8 .0
7 .8
1.5

69.0
70.1
64.3
66.5

- 2 9 .0
-3 0 .6
-3 3 .0
- 7 .3

+
+

2 .0
0.1
3 .9
0 .8

Chemical products................... 94.5
Chemicals and drugs........... 71.9
C o k e ........................................ 100.0
E xplosives.............................. 80.2
Paints & varnishes............... 97.3
Petroleum refining............... 119.6

- 6 .4
-1 6 .5
+ 6 .6
-1 0 .9
- 3 .9
- 8 .6

- 6 .4
- 6 .4
-1 0 .9
+ 2 .0
- 1.6
- 6.1

98.7
96.2
70.4
85.5
94.1
95.4

- 6 .0
-1 9 .5
+ 6 .9
+ 4 .7
-1 3 .2
- 6 .0

-1
+
-

7 .8
9 .9
1 .2
7 .8
8 .5
6 .8

Leather & rubber products.. . 97.2
.108.6
Shoes....................................... 91.6
Leather products, O ther. . . 80.4
Rubber tires & goods.......... 88.7

- 1.3
+ 2 .8
- 4 .8
-1 3 .4
- 3 .8

+
+
-

0.1
2 .5
2 .0
5 .5
2 .4

132.1
108 7
80.2
80.5
9 5.5

- 3 .8
+ 7 .4
-2 3 .0
-1 0 .4
-1 2 .0

- 3 .5
+ 3 .6
-1 6 .8
- 9 .7
- 7 .7

Transportation equipment.. . .
A utom obiles..........................
Auto, bodies and parts. . . .
Locom otives and cars..........
Railroad repair shops..........
Shipbuilding..........................

7 4 .9f
73.3
73.3
45.4
79.6
90.9

W age
payments

Building
permits
(value)

Debits

-1 1 .8
- 3 .0
-1 1 .4
-2 6 .2
- 3 .3
-1 7 .8
- 8 .7
-1 1 .0
-1 5 .4
+ 3 .0
-2 0 .3
-1 2 .2
- 5 .3

-1 6 .9
- 8.1
-2 3 .7
-3 8 .1
- 4 .4
-2 0 .4
-3 1 .1
-2 3 .0
-1 6 .3
- 2 .6
-3 9 .3
-1 0 .6
- 8 .7

- 79.5
- 37.6
- 93.9
+ 2 3 3 .0
+ 58.6
- 83.8
2 .0
- 48.8
- 94.1
- 78.1
- 27.1
- 4 2.2
+ 121.0

-1 6 .4
- 8 .5
-1 8 .7
-2 0 .4
-1 2 .4
-2 6 .4
-1 5 .5
-1 0 .2
-2 4 .3
-2 0 .4
-2 7 .9
-2 1 .3
-1 4 .6

-1 7 .2
- 3 .2
-1 0 .5
-1 0 .4
-1 0 .8
- 7 .2
-1 2 .2
-1 5 .4
- 4 .4
- 9 .3

- 5 .3
- 0 .8
- 3 .5
- 4 .1
-1 0 .6
-1 1 .5
- 1.9
+ 1.6
+ 1.4
- 9 .7
- 5 .7
-1 7 .0
- 2 .6

-2 6 .3
- 2 .2
-2 6 .5
-2 0 .8
-1 0 .2
-3 4 .4
-2 4 .2
-1 5 .2
-3 0 .1
-2 1 .9

July
index*
July,
1929

5 .4
0 .4
1.7
4 .3
0 .8
12.6

3.5
2.4
3.6
5.2
0.3
1.5

9.4

Allentown...............
A ltoona...................
Harrisburg.............
Johnstown..............
Lancaster...............
Philadelphia..........
R eading..................
Scranton.................
T renton..................
W ilkes-Barre.........
W ilm ington............

-

3 .0
3 .6
7 .6
2 .3

-

1.7
2 .4
4 .3
1.3

99.5
74.6
94.7
108.0

- 3 .7
-1 5 .3
- 3.1
.. 0 .0

- 5 .6
-1 2 .1
- 2 .0
- 3 .7

Anthracite..................................

+

7 .8

+ 0 .9

71.6

+ 2 6 .1

-

3 .4

-

9.2

92.3

-

1.7

Construction & contracting... 116.1

-

7 .4

+ 5 .4

104.7

Street railways..........................

84.4

-

7 .2

-

0.1

86.4

87.7

-

3 .2

-

7.2

Wholesale trade.......................

91.1

-

5 .0

-

0 .4

* 1923-1925 average =100.




-1 2 .8
-

4 .8

+ 4 .7
-

5.8

-

8.1

July 1930 compared with June 1930

A ltoona...................
Harrisburg.............
Lancaster...............
Philadelphia...........
R eading..................
Scranton.................
T ren ton...................
W ilkes-Barre.........
W ilm ington............

-1 0 .2
- 6 .2
-1 2 .2
-2 2 .5
- 8 .5
- 6 .4
-1 1 .9
-1 5 .3
- 7.1
- 9 .5
- 3 .5
-1 0 .0
- 1.9

- 9 4
+ 0 .8
- 4 .8
-1 6 .3
- 2 .9
- 4 .8
- 4 .6
-1 1 .7
- 5 .6
- 9 .3
— 5 .5
- 5 .8
- 1.5

— 10.6
- 22.2
+ 4 6.0
+ 31.0
- 67.9
+ 36.4
+ 31.8
- 8 9.8
- 67.1
— 10.8
+ 12.7
+ 2 0 2 .5

-2 9 .3

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

July 1930 —percentage change
Wholesale trade
Philadelphia
Federal Reserve
District

Dry good s..............
Electrical supplies.
Groceries................
H ardware...............
Jewelry...................
P aper.......................

Net sales: 1930
compared with 1929

July

Seven
months

- 8 .7
+ 0 .3
-1 6 .1
-4 3 .5
- 5 .8
-1 8 .0
-3 0 .0
-1 9 .4

- 9.1
- 0 .9
-1 0 .0
-2 8 .0
- 2 .6
- 9.1
-2 5 .3
-1 0 .4

Stocks: July 31, 1930,
compared with

July 31,
1929

June 30,
1930

Collec­
tions
during
July
1930,
compared
with 1929

- 8 .9
-3 7 .8
- 6 .6
- 1.9
-1 5 .8
- 4 .8

-1 .8
-0 .3
-2 .0
-1 .6
+ 3 .6
-3 .4

- 1.3
— 3 9
-1 2 .7
-2 8 .7
- 3 .0
-1 1 .0
- 2 1 .6
-1 6 .2

July 1930 —percentage change
Retail trade
Philadelphia Federal
Reserve District

Net sales: 1930,
compared with
1929

July
Paper and printing................... 97.0
Paper and wood p ulp.......... 83.1
Paper boxes and bag s......... 85.9
Printing & publishing......... 102.6

Retail
trade
sales

Em ploy­
ment

All reporting stores................
D epartm ent............................
in Philadelphia...................
outside Philadelphia..........
M en’s apparel.........................
in Philadelphia...................
outside Philadelphia..........
W om en’s apparel...................
in Philadelphia...................
outside Philadelphia..........
Shoe...........................................
C redit........................................

Seven
months

9 .2

-

- 9 .3
- 7 .2
-1 3 .4
- 7 .7
-1 1 .0
- 5 .2
- 6 .6
- 7 .4
- 1.1
- 5 .0
-2 5 .4

_

-

5 .6

6 .0
— 5 .2
— 7 .7
— 6 .4
__ 6 .4
— 6 .4
— 1.7
— 1.4
— 3 .7
— 5 .2
-1 0 .5

Stocks: July 31,
1930, compared
with
July 31,
1929
-

Rate of
turnover:
seven
months

June 30,
1930 ' 1929 1930

8 .9

-

8 .9

2.11 2.12

- 9 .7
- 9 .2
-1 0 .6

-

7 .9
8 .0
7 .6

2.07 2 .08
2.28 2.31
1.67 1.66

+
-

-1 2 .6
-2 3 .9
-2 5 .4
-1 7 .7
- 4 .7
- 3.1

0 .2
4 .8
6.9
3 .8
1.8
7 .4

1.49
3.57
3.86
2.34
1.62
1.36

1.39
3.42
3.69
2.24
1.61
1.30

f Preliminary figures.

Page Seven

Synopsis o f Industrial and Trade Conditions in the
Philadelphia Federal Reserve District
D em an d

O pera tion s

Stocks

M an u factu rin g
Iron and Steel
Blast furnaces ........................

Fair

L ow er

Steel works and rolling
mills ....................................... Fair, som e in crease
D eclined in July less than usual
Foundries
and
machine
shops .................................... U n filled ord ers fo r iron ca s tin g s O u tpu t o f iron ca s tin g s sh ow ed In creased in the m onth
in creased in J uly, while for
little ch an ge fro m June, while
steel ca stin g s there w as little
steel c a s tin g s d eclin ed
ch a n g e from June
Electrical apparatus

..........

Slow

D eclined

Locomotives and c ar s . . . .

L ittle ch an ge

D eclined

Shipbuilding

Fair

Increased

Silk m anufactures.................

Slow , som e in crea se in July

Increased

W ool

Fair to
low er

T extiles

dealers...........................

poor,

W ool manufactures ............

O n ly fair

Cotton

Fair
to
poor,
p rice s low er

manufactures

Hosiery

....

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

Floor coverings

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

Fair to
low er

d e clin e d ;

F airly h e a v y , gen era lly
than a ye a r a g o

p rice s

M od era te to h e a vy ,
a ye a r a g o
L ow er

som e

poor,

in cr e a s e ; Som e gain in A u g u st

d e clin e d ;

sm aller

la rge r

than

M od era te to lig h t, sm a ller
a m on th an d y e a r a g o

than

H ea vy to m o d e ra te ,
a year ago

than

la rge r

p rice s L ow er than a m on th and a yea r F u ll-fa sh io n e d
ra th er
h ea vy ,
ago
seam less m o d e ra te t o light

P o o r, d eclin ed ; p rice s u n ch a n g ed D eclined, m u ch low er than a ye a r
to low er
ago

M od era te,
m onth

little

ch a n g e

in

the

L eather p ro d u cts
Shoes

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

Leather— sole

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

k id ...........................

Fair, som e in crea se in July, p rice s
u n ch a n g ed to low er

a y e a r a g o M od erate, d e clin ed

Increased b u t b e lo w

Fair, little ch a n g e in the m onth, Som e in crea se in July
p rice s low er

S to ck s la rg e r than la st m on th

G ood fo r b la c k , fa ir fo r co lo r e d ; Increased in July
little ch an ge in p rices

Som e in cre a se in c o lo r e d kid in
J uly, b la c k kid s lig h tly sm aller

B uilding m aterials
B r i c k ...........................................

Quiet, p rices u n ch a n g ed to low er D eclined , m u ch low er than a yea r F a irly h e a vy , som e in crease in the
ago
m on th , la rge r than a y e a r a g o

C e m e n t.......................................

F airly
good,
u n ch a n g ed

L u m b e r .......................................

P o o r, d eclin ed ; p rice s u n ch a n g ed
to low er

D eclined less than usual in July

Paints and v a r n is h e s ..........

Slow , d eclin ed ; p rice s u n ch a n g ed

S lig h tly low er in July, m u ch low er M od erate,
m onth
than a y e a r a g o

Plumbing supplies

P o o r, p rices low er

D eclined, m u ch low er than a yea r M od erate to ligh t,
ago
a year ago

Fair, in crea sed ; p r ic e s som ew hat
low er

Increased

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

Slate ............................................

in cr e a s e d ;

p rices Increased slig h tly
b elow a ye a r a g o

in

July

but M od erate to light, sm aller th a n a
m on th a g o b ut la rger than last
year
M od era te, som e
the m on th
som e

a ccu m u la tio n
d eclin e

H e a v y t o m o d e ra te ,
a year ago

in

in
the

sm aller

than

la rge r

than

M iscellan eous
Paper .........................................

Fair, som e in crea se in the m onth S om ew hat low er

M od era te to h e a v y , som e in crease
in the m onth

Tobacco— cigars ...................

Fair, n o t
m onth

M od era te to light

le a f...........................
Rubber .......................................

m u ch

ch a n g e

in

P o o r, p rices som ew h a t low er

the S lig h tly low er
U n ch an ged

in

the

m onth

Slow , som e in crea se in the m on th ; U n ch an ged to low er
p rice s low er

M od era te, la rger than a y e a r a g o
M od era te to light

B uildin g p erm its
d ecre a se d
in B uildin g
c o n tr a c ts
d eclin ed
July and w ere sm aller than a
sh a rp ly in July, the la rgest
y e a r a go.
d e cre a se o c c u r r in g in a w ards
fo r in d u stria l b u ild in gs

Building

C oa l M in ing
Anthracite ................................

Fair, fo r d o m e s tic; fa ir t o g o o d Increased in July and h igh er than H e a v y t o m o d e ra te
a ye a r a g o
fo r steam , som e in crease in the
m o n th ; d o m e stic p rice s higher

Bituminous

P oor, p rices u n ch a n g ed

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

to

low er D eclined, b e lo w a y e a r a g o

M od era te to light

T ra d e
Retail .........................................

Quiet, d eclin ed ; p rice s low er

W holesale and jobbing. . . . Q uiet, p rices low er

Page Eight




D eclin ed in July to lo w e st p o in t
in m an y y e a rs
D eclined in the m o n th and sm aller
th a n a y e a r a g o