The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Seventeenth oAnnual of the FEDERAL RESERVE BANK OF PHILADELPHIA Made to the Federal Reserve Board for the Third Federal Reserve District by the Chairman of the Board and Federal Reserve Agent 193 1 Seventeenth oAnnual cBgport of the FEDERAL RESERVE BANK OF PHILADELPHIA Made to the Federal Reserve Board for the Third Federal Reserve District by the Chairman of the Board and Federal Reserve Agent 1931 Letter of Transmittal March 19, 1932. Federal Reserve Board Washington, D. C. Sirs :— I have the honor to transmit herewith the seventeenth annual report on the operations of the Federal Reserve Bank of Philadelphia, covering the year 1931. Very truly yours, R. L. AUSTIN Chairman of the Board and Federal Reserve Agent CONTENTS Page Profit and loss account 5 Statement of condition 7 Trade and industrial conditions 9 Financial changes: Member banks Federal Reserve Bank Money rates 13 16 20 Federal reserve notes 21 Departmental operations 22 Personnel 24 Banks of the district The National Credit Corporation Membership in the system Fiduciary powers Member bank earnings and expenses Banking and business statistics 25 26 27 28 28 29 BILL AND SECURITY HOLDINGS FEDERAL RESERVE BANK OF PHILADELPHIA MILLIONS 1928 MILLIONS $ 1930 1929 1931 DISTRIBUTION OF BILLS DISCOUNTED FOR PHILADELPHIA > BANKS i\ 60 (\ ! • i SLA W \ • f • / \ FOR OTHER BANKS ^ 20 • 1928 1929 1 / ^ "'*• 1930 [/ 1931 'f! Annual Report of the Federal Reserve Bank of Philadelphia for 1931 Business activity and prices of commodities and securities declined substantially in 1931. Reflecting these conditions, the volume of member bank loans decreased and over much of the year the need for reserve bank credit in this district was small. But in the fall, troubled banking conditions were accompanied by a particularly strong demand for currency, a sharp increase in borrowings from this bank, and numerous bank suspensions. Profit and loss account 1931 1930 1929 Earnings: From From From From bills discounted bills bought United States securities other sources Gross earnings Current expenses Current net earnings Additions to current net earnings Deductions from current net earnings.... Net additions Net earnings available for dividends, surplus and franchise tax $1,407,303 213,784 969,430 123,498 $1,217,736 155,562 1,521,825 101,119 $4,493,786 666,005 808,116 108,141 $2,714,015 $2,996,242 $6,076,048 1,985,585 2,041,627 2,197,891 $728,430 $954,615 $3,878,157 $219,038 63,296 $192,688 44,533 $1,181 77,350 $155,742 $148,155 $76,169* $884,172 $1,102,770 $3,801,988 $1,002,601 0 100,169 $938,312 0 2,863,676 Distribution of net earnings: Dividends paid $1,004,835 0 Paid to Government as a franchise tax. . 120,663# Transferred to surplus account * Net deduction. Withdrawn from surplus. Income received from discounted bills during the first nine months of 1931 was only $526,000, about half the amount earned a year earlier, owing partly to lower discount rates; the volume Seventeenth Annual Report, Federal Reserve Bank of Philadelphia of discounts during the last quarter, however, was so heavy that the total amount earned in the year was raised to $1,407,000 or $190,000 more than in 1930. Lower rates of return also affected the income from United States securities, which dropped more than one-third from 1930 despite the fact that holdings of these securities were greater in 1931. Gross earnings totaled $2,714,015 as compared with $2,996,242 in 1930; current expenses also declined, being the lowest since 1919, so that the decline in current net earnings was only from $954,615 to $728,430. Additions to these earnings, largely due to profit realized on the sale of United States securities, raised net earnings to $884,172, although this was the lowest amount since 1924. It was not sufficient to meet dividend payments of $1,004,835, so that $120,663 had to be taken from surplus; this was the first time since 1916 that earnings failed to equal dividends. The surplus was further reduced by a charge of $458,716, reserved for depreciation on United States bonds. A departmental distribution of current expenses is given below: 1931 1930 $ 95,648 Maintaining the accounts of the bank 58,014 Loans and discounts 360,656 Currency and coin* 434,336 Transit and collections 20,975 Fiscal agencv functions Custody of securities, including purchases and sales 71,505 Transfer and telegraphic service 27,279 Official salaries and supervisory expenses. . . 159,779 Federal reserve agent's department: (Custody of collateral against federal reserve notes, note issues, bank examination, library, statistical and business reporting and analysis work) 91,434 Maintaining the general audit 59,966 Bank relations 19,206 Insurance (other than on currency, coin and security shipments) 32,285 Operation of banking house 150,836 This bank's portion of Federal Reserve Board expenses 71,036 Miscellaneous 178,055 % 97,713 54,075 390,237 432,758 25,383 Totals* Cost of federal reserve currencv Total current expenses Omitting cost of federal reserve currency. 1929 $ 97,701 55,734 423,349 451,798 31,459 68,370 26,983 158,739 71,404 21,669 162,165 88,709 60,093 18,182 85,813 59,362 15,801 32,476 154,412 33,117 165,319 78,901 174,141 75,170 169,467 $1,831,010 154,575 $1,861,172 180,455 $1,919,328 278,563 $1,985,585 $2,041,627 $2,197,891 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia Statement of condition December 31, 1931 December 31, 1930 Gold reserves Reserves other than gold $227,704 15,237 $238,552 8,874 + Total reserves Non-reserve cash $242,941 3,656 $247,426 5,146 - $4,485 - 1,490 48,295 68,117 10,272 15,391 + 38,023 + 52,726 Total bills discounted $116,412 4,065 68,652 5,610 $25,663 3,496 54,204 610 +$90,749 + 569 + 14,448 + 5,000 Total bills and securities $194,739 904 624 43,558 2,626 1,152 245 $83,973 68 350 51,802 2,614 40 95 +$110,766 Total resources $490,445 $391,514 + $98,931 $269,372 $153,727 +$115,645 123,939 3,551 7,609 391 142,539 1,344 558 163 Deferred availability items Capital paid in Surplus Depreciation reserve on U. S. bonds All other liabilities Total deposits $135,490 41,826 16,600 26,486 475 196 $144,604 49,256 16,793 27,065 16 53 59,114 7,430 193 579 459 143 Total liabilities $490,445 $391,514 + $98,931 (OOO's omitted) Changes RESOURCES Bills discounted: Secured by government obligations Other bills discounted Bills bought United States securities Other securities Due from foreign banks Federal reserve notes of other banks Uncollected items Bank premises Claims account—closed or suspended banks All other resources -$10,848 6,363 836 274 8,244 12 1,112 150 LIABILITIES Federal reserve notes in circulation Deposits: Member bank—reserve account Government Foreign bank Other deposits Ratio of total reserves to deposit and federal reserve note liabilities combined. . . Contingent liability on bills purchased for foreign correspondents 60.0% $24,604 82.9% $42,147 + + + 18,600 2,207 7,051 228 22.9% - $17,543 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia DISTRIBUTION RETAIL AND WHOLESALE TRADE PERCENT I923-25AVG-I00 / \ 1926 1927 1928 1929 ^RETAIL SALES 1930 1931 1930 1931 FREIGHT CAR LOADINGS 1926 1927 1928 1929 PASSENGER AUTO REGISTRATION I923-25AVG.=IOO 1926 1927 1928 1929 1930 1931 1929 1930 1931 PRICES 1926 1927 1928 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia Trade and industrial conditions in the Philadelphia Federal Reserve District The volume of business in 1931 continued the downward trend which commenced in 1929, so that trade and industrial activity reached the lowest level in many years. Prices of all types of commodities, securities, and real estate declined almost steadily. The general wholesale commodity price index in 1931 was the lowest since the early war days; it was 18 per cent below 1930 and only two per cent higher than in 1913. Prices of farm products showed the most drastic decline, being 9 per cent lower in 1931 than 1913, while foods were 15 per cent and other commodities, chiefly manufactures, 5 per cent above the pre-war level. The price recessions of the past two years have reacted adversely on business, finance, and credit in this district as in the country, resulting in greater uncertainty and impairment of confidence than in the previous year. The value of mercantile trade declined sharply. Retail sales were 13 per cent smaller than in 1930 and 21 per cent less than in 1929. Sales at wholesale declined 15 per cent from the previous year and were 26 per cent below those of two years earlier. Stocks of merchandise carried by retail and wholesale establishments decreased correspondingly. Buying of new passenger automobiles, as indicated by registrations, also was curtailed. Shipments of commodities by railroad freight in this section were noticeably on the decline throughout the greater part of the year, reaching the smallest volume in the last decade. While a portion of this decline may be attributed to deliveries of merchandise by truck, the principal cause of the reduction in loadings, amounting to 21 per cent from a year ago and 33 per cent from 1929, was the marked falling off in the volume of trade and industrial output. The value of foreign trade, as indicated by shipments at the port of Philadelphia, was substantially smaller than last year. Exports were 27 per cent and imports 30 per cent less than in 1930; custom receipts also showed a loss of 22 per cent. In the country as a whole, exports dropped 37 per cent and imports 32 per cent. Production of manufactures continued the declining trend of the previous year. The index of manufacturing activity was 76.7 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia per cent of the 1923-25 average, showing a drop of 20 per cent from a year ago and of 31 per cent from 1929 which was an exceptionally high year in manufacturing. The most drastic curtailment occurred in the output of such producers' goods as heavy metal products used for equipment purposes, whereas the output of consumers' goods, such as textile products and shoes, held its ground, owing partly to reduced supplies in distributing and producing channels and to the wearing out of consumers' stocks. Carry-over of manufactured products as well as of raw materials and commodities for further manufacture by local plants has been rather low in comparison with the preceding two years. Factory employment was 17 per cent smaller and wage payments 29 per cent less than in 1930; compared with 1929 employment declined 24 per cent and wage payments 40 per cent. The decrease in factory wage earnings was due to reduction in operating time as well as in wage rates. Employment averaged about 766,000 workers, the shrinkage from 1930 approximating 156,000 workers. The weekly average of wages paid was nearly $16,000,000, a decline from 1930 of almost $7,000,000 a week. Output of coal mines reflected unfavorable industrial and weather conditions. Production of anthracite was 14 per cent smaller than in the previous year and 19 per cent less than two years ago. Similarly production of bituminous coal declined 21 per cent from 1930 and 32 per cent from 1929. Activity in building and general contracting showed a smaller degree of fluctuation, though at a considerably lower level, than in the previous two years. The value of contract awards in the aggregate declined 43 per cent from 1930 and 53 per cent from 1929. The drop in contracts let for residential buildings amounted to 40 per cent as compared with the previous year and 73 per cent from two years ago. These declines were due to lower construction costs and to conditions within the industry itself as well as to business generally. Employment and wage earnings in building trades appear to have been more severely affected than those in other major industries. The real estate situation continued to reflect declining prices and exceptionally numerous foreclosures. Forced sales, as measured by the number of writs issued in Philadelphia, reached the largest volume in thirteen years. They exceeded the 1930 figure by 21 per cent and were 51 per cent greater than in 1929. Such renting demand as existed throughout the year was restricted 10 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia INDUSTRIAL PRODUCTION PHILADELPHIA FEDERAL RESERVE DISTRICT PRODUCTIVE ACTIVITY IN MANUFACTURING PERCENT I923-25AVG.= 100 100 50 1926 1927 1928 1929 1930 1931 VALUE OF BUILDING CONTRACTS 200 19 23-25AVG.= fOO « TOTAL j | 150 l 1 100 1 RESID I N T I A L - ^ ' ^ V 50 \ ^ ADJUSTED FOR SEASONAL VARIATIONS 1926 1927 1928 1929 1930 1931 OUTPUT OF COAL 150 1923-25 AVG.= 100 ANTHRACITE \ A/ 100 Bl FUMINOUS 50 1 DJUSTED FOR SEASONAL VARI/kTIONS 1926 1927 1928 11 1929 1930 1931 * Seventeenth Annual Report, Federal Reserve Bank of Philadelphia mainly to the less expensive dwellings, and vacancies exceeded those in the preceding two years. Rents in Philadelphia were 7 per cent lower than in the previous year and 10 per cent less than two years ago, but 40 per cent higher than in 1914. Funds for financing new purchases have been rather scarce, particularly in larger industrial cities, and there has been more than the usual demand for the reduction of mortgages. Difficulties also have been noticed in meeting such fixed charges as taxes and interest as well as payment of rent. Farm crop yields on the whole were larger than in 1930 and compared favorably with the ten year average, even though the acreage harvested was smaller. The value of crops, however, was only 75 per cent of that in 1930 and 66 per cent of that in 1929, indicating a sharp reduction in prices. Income of local farmers from livestock and livestock products, particularly dairy and poultry, while reduced in comparison with other years because of lower prices, provided means with which to meet most of their expenses, including taxes and interest charges on obligations, probably with less difficulty than was the case in urban industrial sections. The supply of farm labor was greater than normal requirements, exceeding that of 1930, owing partly to the influx of industrial workers in search of livelihood on farms. Wage rates and earnings of hired farm hands declined. Retail prices in 1931 declined more sharply than in the preceding year, so that the cost of living has been reduced further. The table below gives percentage changes in the index of the cost of living based on the family budget requirements of industrial workers. Items included in the cost of living Food Clothing Housing Fuel and light. . House furnishings Miscellaneous... Total Per cent change December 1931 compared with December 1930 December 1929 U.S. Phila. Scranton U.S. -16.7 -11.4 - 7.0 - 4.0 -11.3 - 1.3 -12.9 -13.9 - 7.2 - 2.1 -12.1 - 1.4 - 9.3 - 8.5 Phila. Scranton U.S. Phila. + 2.0 -12.7 - 1.0 -27.7 -25.0 -15.6 -17.1 -10.3 -10.4 - 6.0 + 2.9 -15.5 -16.6 - 1.2 - 1.6 -27.5 -18.3 - 7.4 + 1.1 -14.8 - 1.3 + 8.9 +34.2 +36.2 +66.3 +60.7 +99.4 - 9.3 -14.9 -14.0 -14.8 +41.6 + 50.5 -16.0 -16.1 - 4.6 Source: United States Bureau of Labor Statistics December 1914 12 + + + + + + 17.0 42.0 40.3 91.7 54.1 117.6 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia Financial changes in the Philadelphia district Member banks The accumulation of deposits, which had been so characteristic of the reports of member banks during 1930, continued in the early months of 1931 and the April peak was the highest on record. This increase was confined largely to Philadelphia banks and reflected gains in individual deposits and in balances held for other banks, as well as in deposits credited to the government in payment for new issues of United States securities. From the high point in April there was a pronounced and rather steady decline in net demand deposits, but the high in time deposits was not reached until August. The sum of these two classes of deposits decreased in May and June, but showed little change in July and August. The exceptional demand for currency which followed caused marked declines in deposits, in September, October and early November. On October 3 the Clearing House Committee of the Philadelphia Clearing House Association adopted a resolution reading in part: ". . . that all financial institutions in this city having saving fund deposits or other time deposits require that notice be given as provided by the terms of the agreement as contained in the pass books or other forms of contract." Part of the reduction in time deposits in November and December no doubt reflected the transfer of deposits from the time to the demand classification as notices given by depositors expired. The continued falling off in the total of net demand and time deposits later in November and in December in part was due to the repayment of loans and possibly in part to withdrawals of currency. The following table gives changes in the loans and investments of all member banks. Although the figures have been affected by December 31 (000,000's omitted) 1931 Loans to banks Loans to other customers: Secured by stocks and bonds All other Loans to open market*... . United States securities Other securities . . . . Changes 1930 $53 $56 «2 - 134 - 71 - 38 + 118 - 47 535 669 915 986 18 337 56 219 700 747 Total loans and investments. . . . $2,558 $2,733 -$175 * Includes bought commercial paper and bankers' acceptances, and loans on securities to New York City brokers. 13 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia MEMBER BANK DEPOSITS PHILADELPHIA FEDERAL RESERVE DISTRICT MILLIONS % 2400 2300 2200 * TOTAL OF NET DEMAND AND TIME DEPOSITS ^ ^ ~ * _ / * ^ ^J \ 2100 2000 1300 1200 1929 1930 1931 CLASSIFICATION OF DEPOSITS NET DEMAND ^_^o— MOO TIME 1000 900 1929 1200 1930 1931 GEOGRAPHIC CHANGES IN DEPOSITS 1100 BANKS IN PHILADELPHIA 1000 900 BANKS IN TOWNS OF " I^OOO OR MORE OUTSIDE OF PHILADELPHIA 800 700 BANKS IN TOWNS UNDER 15,000 POPULATION 600 500 1929 930 14 931 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia bank suspensions during the year, the influence of these was offset largely by the absorption of nonmember banks by member banks. The figures reveal a large decline in indebtedness to the banks, a tendency which was rather general throughout the year and which was one of the factors explaining the reduction in deposits. No doubt the decrease in loans was due in large part to diminished industrial activity and to lower prices for commodities and securities which lessened the amount of bank loans required to finance business transactions. In so far as the reduction in deposits was due to currency withdrawals, this reduction in loaning power may have caused the banks to restrict credits; this may have been supplemented by the desire to attain a more liquid position in preparation for possible additional withdrawals. MEMBER BANK LOANS AND INVESTMENTS PHILADELPHIA FEDERAL RESERVE DISTRICT MILLIONS S 1800 1700 r ><^LOANS TO CUSTOMERS ^"^ 1600 1500 1 """ 1200 INVESTMENTS AND OPEN MARKET LOANS MOO 1000 900 •/ \ r^—. 800 k/v- 1929 1930 1931 The liquidity of the member banks as a whole was increased by the accumulation of United States securities, which are acceptable as collateral for borrowings from the Federal Reserve Bank. Although holdings of other securities and loans to the open market decreased in the year, the proportion of total investments and open market loans to member bank credit increased from 37 per cent at the end of 1930 to 41 per cent on December 31, 1931. 15 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia Federal Reserve Bank Up to September the banks had little occasion to borrow from the reserve bank as they adjusted fluctuations in their reserves largely by changes in investments, open market loans, or balances with other banks. From 26 millions at the beginning of the year, bills discounted by this bank declined slowly. After early March bills discounted did not, even for a single day, rise above 25 millions until September, although there was an unusual demand for currency in May. The call for currency during September and October, incident to disturbed banking conditions around Scranton and Philadelphia, was exceedingly strong; in fact, in the period from September 2 to November 12 currency payments to the banks exceeded receipts from them by 130 millions, and in one week alone, the first in October, the excess was nearly 50 millions. Although the banks met this demand in part by the sale of investments, they also borrowed heavily from the reserve bank; bills discounted rose from 18 millions on September 2 to 118 millions on November 12. The demand on us for currency over the balance of the year did not come up to usual seasonal expectations, but borrowings from the reserve bank remained in excess of 100 millions, rising as high as 138 millions at a time when the government was withdrawing large sums from depositories. At the end of the year rediscounts for member banks amounted to 116 millions. (000,000's omitted) Bills discounted Bills bought U. S. securities $42 75 89 29 42 $18 25 13 4 5 $29 26 20 49 53 I 90 126 123 83 102 28 27 24 21 16 18 19 16 18 32 89 108 117 3 4 3 1 # # # 3 8 15 13 7 5 52 51 51 50 49 49 49 54 55 55 57 58 58 83 82 78 72 65 67 Other securities'1 Annual averages: 1927 1928 1929 1930 1931 Monthly averages: 1930—Dec 1931—Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Including foreign loans on gold. Less than $1,000,000. 16 Totals 69 74 82 103 164 181 187 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia CURRENCY DEMAND FEDERAL RESERVE BANK OF PHILADELPHIA MILLIONS + 125 + 100 + 75 - - + 50 y J + 25 - i 0 -25 - -50 -75 MARCH 31,1927=0 -100 1929 1930 193 The bank's holdings of purchased bills decreased from 3^2 millions at the end of 1930 to an average of little more than 100 thousand dollars in April, May and June; they increased to more than 17 millions in the middle of September and declined again to 4 millions at the close of the year. Purchases of bills within the district were small, and the changes in the total holdings represented almost entirely fluctuations in this bank's participation in foreign and domestic bills held for the account of the federal reserve system. Domestic bills increased from nothing in the middle of September to 8 millions in October and then declined to less than 1 million. On January 1 the bank had 3!/2 millions of foreign bills, but practically all of these were paid off by the spring. Subsequent extensions of credits to foreign central banks raised our holdings of such bills to 17 millions about the middle of September. Reductions followed from that time, so that by the close of the year the holdings of them were little over 3 millions. Changes in the bank's holdings of United States securities reflected principally variations in its participation in system hold- 17 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia ings of such securities. Other securities, however, were made up for the most part of municipal warrants and Federal Intermediate Credit Bank debentures acquired from local banks. The reserve ratio for the year—78.8 per cent—was little below that maintained in 1930, reflecting high ratios in the first nine months, and an average of 64.5 per cent for the last three months, and a ratio of 60 per cent at the end of the year. Cash reserves were larger than in 1930, but the deposit liability was greater and there was a large increase in federal reserve note circulation. Although the annual average of member banks' reserve deposits was 141 millions, the December average was only 124 millions as compared with 141 millions a year earlier, reflecting the large decrease in deposits of member banks. The annual averages in the accompanying table show that the spread between member banks' reserve deposits and total deposits was greater in 1931 than in any of the three preceding years. This was due to the larger volume of foreign bank deposits held during the last half of the year. (000,000's omitted in dollar figures) Federal reserve Cash note reserves circulation Member bank reserve deposits Total deposits $136 $139 $132 $172 134 138 141 137 140 150 147 135 175 192 225 257 63.6% 67.6" 81.7' 78.8' 141 144 141 146 151 147 145 146 144 140 131 128 124 143 147 143 150 155 149 151 152 161 158 150 145 139 138 14S 141 139 139 144 148 148 150 161 238 274 276 231 244 239 251 262 259 263 260 262 249 256 271 261 82.2' 83.2' 84.3' 86.9' 89.2' 88.4' 88.3' 86.6' 84.3' 78.1 ' 66.0' 64.5' 62.8' Annual figures: 1928 1929 1930 1931 Monthly figures: 1930—Dec 1931—Jan Feb Mar. Apr May June July Aug Sept Oct Nov Dec Reserve ratio There was a decline from March to October in the federal reserve system's contingent liability on bills purchased for foreign correspondents. This was particularly marked in the third quarter of the year and was roughly paralleled by an increase in balances maintained with the system by foreign banks. This bank was a party to these operations, and its statements show a decline in 18 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia RESERVE POSITION FEDERAL RESERVE BANK OF PHILADELPHIA 70 65 60 55 50 928 1929 1930 1931 MILLIONS 260 140 220 CASH RESERVES \ k FED. RES. NOTE CIRCULATION 1931 19 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia the contingent liability on such bills from 34 millions on July 1 to 4 millions on October 14, while its share of foreign bank deposits increased from 3 to 22 millions. The trends then were reversed and by the end of the year the liability on bills had increased to 25 millions and foreign bank deposits had declined to V/% millions. Money rates During the first half of 1931 there was little change in Philadelphia in the rates charged customers on prime commercial loans, although rates for commercial paper and bankers' bills declined about one per cent in the open market. The low demand for reserve bank credit in this district, the very high reserve ratio of the bank, and the lower market rates were the principal factors which led the directors of this bank to reduce the discount rate from 3 ^ to 3 per cent, effective May 7. Over most of the summer, money rates changed little and there was a continued absence of demand for credit from this bank, but in the early fall, there was a rapid rise in borrowings from the reserve bank and, following the departure of England from the gold MONEY RATES-PHILADELPHIA PERCENT 6 RATES ON PRIME COMMERCIAL LOANS TO CUSTOMERS 5/2 5 4/2 4 FEDERAL RESERVE BANK DISCOUNT RATE 3/2 L~ 3 928 1929 1930 20 1931 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia standard in September, the country lost more gold than it had gained in earlier months of the year. Discount rates of most of the reserve banks were raised and open market rates rose to the highest point since early 1930. Rates on commercial loans increased locally and this bank raised its discount rate from 3 to 3 ^ per cent, effective October 22. In the last two months of the year changes in money rates were comparatively small. Action was taken by the Philadelphia Clearing House Association to regulate maximum rates of interest to be paid on deposits by its member banks. The first action was effective February 1 and two revisions were made subsequently. Feb. 1 Apr. 10 June 1 Maximum rates on— 1. Demand deposits of other banks, trust com- panies and private bankers in the United States or Canada, except mutual savings banks 2. Demand deposits of mutual savings banks 3. Demand deposits or certificates of deposit payable on less than 30 days' notice from individuals, firms or corporations 4. Time deposits and certificates of deposit payable on 30 days' notice or more 2 % 234" 2 134% 1 % 134" 2 " 134" l " 3 " 234" 2 " " No maximum was set for savings deposits, but under the rules, time accounts of firms, corporations or co-partnerships can not be regarded as savings deposits. Federal reserve notes The exceedingly strong demand for currency which prevailed over part of 1931 was met by issues of federal reserve notes, as the following table shows: (000,000's omitted) New' currency paid out by bank: Federal reserve notes... Gold certificates Silver certificates.. United States notes Totals 1931 1930 1929 1928 $235 22 53 26 $147 51 60 30 $192 39 53 25 $146 31 53 25 $336 $288 $309 $255 Federal reserve notes in actual circulation increased from 153 to 269 millions during the year. Nearly 233 millions of new notes were issued to the bank, more than in any other year since the 21 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia bank started operations; of this total, 71 millions, or 30 per cent, was in notes of the $100 denomination or higher, as compared with 11 per cent in 1930 and 7 per cent in 1929. Collateral requirements against note issues to the bank were supplied in part by the deposit of gold, but for the most part by discounted bills. Comparative year-end statements of notes issued follow: December 31 (000's omitted) Notes received from comptroller Notes on hand Notes issued to bank (outstanding) Collateral held: Gold and gold certificates on hand Gold fund—Federal Reserve Board Discounted and purchased bills Total collateral held 1931 1930 1929 $388,667 93,600 $242,755 61,620 $236,885 44,300 $295,067 $181,135 $192,585 $54,700 125,300 116,949 $38,700 121,300 22,444 $40,200 96,400 56,415 $296,949 $182,414 $193,015 More than 16 millions of federal reserve notes of the old, larger size issued by this bank still was outstanding at the end of 1931, a decline of less than 7 millions in the year. During each of the last five months, less than half a million dollars of these notes was presented for redemption. Departmental operations Comparative figures showing the activity of a number of the principal departments of the bank are given in the table following: (000's omitted) 1931 1930 1929 1928 Number of pieces or transactions handled: 51 41 60 68 Notes and bills discounted 199,377 211,091 215,030 214,881 Notes (currency) counted 308,220 334,963 331,780 328,886 Coins counted Ordinary checks handled (including return 70,134 72,846 70,234 67,522 items) 1,952 2,130 1,929 1,963 U. S. government checks handled Items payable at a future date (collection items): 1,487 1,680 2,545 1,361 United States coupons paid 570 607 548 552 All other items 122 126 123 117 Transfers of funds U. S. securities issued, redeemed, or ex80 61 112 555 changed 22 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia As a result of depressed business conditions and lower prices of commodities and securities, it was to be expected that the operations of some of the departments would show a decline in number of pieces handled and larger decreases in dollar amounts. Thus the number of transit checks, collections (other than United States coupons), and transfers of funds handled each show a decline of about 4 per cent from 1930 in number of items, but the falling off in dollars varied from 16 to 20 per cent. Discount operations and fiscal agency activities increased in 1931. Among the special facilities for expediting the collection of checks are the wire settlement of clearing house balances, county clearings systems, and direct sending of transit items. At the end of 1931, twelve cities were availing themselves of our facilities for settling clearing house balances by wire; settlements handled in this manner totaled $172,400,000 as compared with $166,000,000 in 1930. Eight county clearings systems were in operation; 102 banks participated and $48,300,000 of items were interchanged, balances being settled through the reserve bank, as against $40,600,000 in 1930. Direct sendings of checks to other reserve banks by our member banks show a decline from $7,700,000,000 to $5,100,000,000, reflecting lower prices and a decrease in business operations. Member banks have made greater use of our facilities for keeping securities in custody; an average balance of $301,000,000 was held in 1931, as compared with $260,000,000 in 1930. Securities and cash held for our own account and for the Treasurer of the United States averaged $454,000,000 daily in 1931. Six issues of United States certificates of indebtedness matured in 1931; original allottments to the district had totaled $140,700,000 and the amount redeemed here was $45,200,000 or 32 per cent. New issues during the year included six series of certificates, three of Treasury bonds and one of Treasury notes; total subscriptions were $1,120,200,000, and allottments to the district, $323,900,000. 23 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia Personnel Board of Directors Residence Name Class Group 1 Joseph Wayne, Jr., President, Philadelphia National Bank, Philadelphia, Pa. Group 2 George W. Reily, President, Harrisburg National Bank, A.Harrisburg, Pa. Group 3 John C. Cosgrove, Director, First National Bank, Hastings, Pa. Term expires Philadelphia, Pa. December 31, 1932 Harrisburg, Pa. December 31, 1933 Johnstown, Pa. December 31, 1931 C. Frederick C. Stout, Member, John R. Evans & Company, Ardmore, Pa. December 31, 1931 Philadelphia, Pa. Group 2 Arthur W. Sewall, President, 15. General Asphalt Company, Philadelphia, Pa. December 31, 1932 Philadelphia, Pa. Group 3 J. Carl De La Cour, Vice-President, Wm. S. Scull Company, Riverton, N. J. December 31, 1933 Camden, N. J. Group 1 f Richard L. Austin, Philadelphia, Pa. December 31, 1932 Chairman of the Board Alba B. Johnson, Deputy ChairRosemont, Pa. December 31, 1933 man of the Board Bridgeville, Del. December 31, 1931 Harry L. Cannon The regular elections held in the fall of 1931 resulted in the re-election of C. Frederick C. Stout as a class B director and John C. Cosgrove as a class A director for terms of three years each. In November, Arthur C. Dorrance, who represented the group 3 banks as a class B director, tendered his resignation, much to the regret of the board of directors. At a special election held in December, J. Carl De La Cour, vice president of the Wm. S. Scull Company of Camden, New Jersey, was chosen to complete the unexpired term, which runs to December 31, 1933. Harry L. Cannon was reappointed as a class C director by the Federal Reserve Board for a term of three years from January 1, 1932. Appointments by the Federal Reserve Board for the year 1931 included Richard L. Austin as chairman of the board and federal reserve agent, Alba B. Johnson as deputy chairman of the board, and Arthur E. Post and Ernest C. Hill as assistant federal reserve agents. Howard A. Loeb, chairman of the board of the Tradesmens National Bank and Trust Company of Philadelphia, represented this district on the Federal Advisory Council during 1931. The officers 24 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia of the bank, appointed by the directors, were: governor—George W. Norris; deputy governor—William H. Hutt; cashier and secretary—C. A. Mcllhenny; assistant cashiers—W. J. Davis, J. M. Toy, R. M. Miller, Jr., S. R. Earl; comptroller—William G. McCreedy. The number of employees other than officers was 685 at the end of 1930 and 686 on December 31, 1931. Banks of the district Including one institution that reopened a few days after suspending operations, there were 101 bank suspensions in this district during 1931, of which 13 were in New Jersey and 88 in Pennsylvania. This compares with 10 in 1930 and 3 in 1929. Although more than three-fifths of the banks in the district are members of the federal reserve system, only 30 per cent of the banks that closed in 1931 were member banks. The proportion of deposits represented by closed banks was about 4 per cent of the total of all banks in operation at the beginning of the year. These failures may be considered in large part a result of conditions which were an aftermath of the war. During the intense business activity and speculation of all kinds, which followed the war, and which culminated in 1929, many extravagances developed for which the nation has been paying during the last two years. Productive capacity was raised to extraordinary levels, building was carried on too freely, optimistic views as to earnings of corporations carried stock prices to unprecedented figures. The readjustment which has been in progress scarcely could be expected to leave the banks unscathed. Sharp declines in commodity and stock prices and in real estate values affected the liquidity of many loans. Bond investments were affected by decreased earning power of issuing corporations, foreign difficulties, and forced liquidation by owners of securities. Despite these circumstances, there is reason to believe that many banks which have suspended could have survived had it not been for the lack of confidence which manifested itself in extraordinary withdrawals of deposits. Excessive demands of frightened or disturbed depositors are difficult to control and may quickly result in suspension of a bank. This probably has been the cause of most failures in this district in the past year. Under present conditions the closing of a bank by no means is proof of incompetent management. Beset by loan and investment problems in an aggravated form 25 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia and by other conditions incident to the public's lack of confidence, many bankers turned to the reserve bank for consultation. Nearly 2,000 visits were received from bank officers during 1931 and the members of the bank relations department made 1,800 visits to banks of the district. These visits and the activities of the bank examination department to a greater extent than ever before reflected the bankers' desire for advice in the handling of situations which had arisen outside of their usual operations. The National Credit Corporation In October the National Credit Corporation was organized by bankers "for the purpose of aiding and assisting banks throughout the United States to utilize their resources and credit so as to further the stabilization of financial and economic conditions and to enable them better to serve their respective communities." Through this corporation it was proposed that funds should be made available to solvent, going banks whose assets were not entirely liquid under existing conditions. The corporation is administered by a board of twelve directors, one from each federal reserve district, and each director was called upon to organize within his district associations of banks which had subscribed to gold notes issued by the corporation; through these associations, the funds obtained from the subscriptions were to be loaned to banks which had applied for advances. Livingston E. Jones, president of the First National Bank of Philadelphia, was appointed the director from this district. Seven associations were organized within the Third Federal Reserve District, taking in all of the district but the western tier of counties. The areas covered by the associations are outlined below: No. 1: Philadelphia, Chester, Delaware, Bucks and Montgomery counties in Pennsylvania. Mr. Howard A. Loeb, Chairman of the Board, Tradesmens National Bank and Trust Co., Philadelphia, Chairman. No. 2: State of Delaware. Mr. A. F. Crichton, President, Union National Bank, Wilmington, Delaware, Chairman. No. 3: Berks and Schuylkill counties in Pennsylvania. Mr. R. S. Meek, President, Farmers National Bank and Trust Company, Reading, Pa., Chairman. No. 4: Lehigh, Northampton, Carbon, Monroe, Pike, Wayne, Lackawanna, Luzerne, Sullivan, Wyoming, Susquehanna and Bradford counties in Pennsylvania. Mr. D. R. Atherton, Executive Vice President, First National Bank, Scranton, Pa., Chairman. 26 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia No. 5: Lancaster, York, Adams, Franklin, Fulton, Cumberland, Dauphin, Lebanon, Perry, Juniata, and Mifflin counties in Pennsylvania. Mr. George Reily, President, Harrisburg National Bank, Harrisburg, Pa., Chairman. No. 6: Union, Snyder, Northumberland, Montour, Columbia, Lycoming, Clinton, Potter, and Tioga counties in Pennsylvania. Mr. James B. Graham, President, Lycoming Trust Co., Williamsport, Pa., Chairman. No. 7: That part of New Jersey in the Third Federal Reserve District. Mr. F. Morse Archer, President, First Camden National Bank & Trust Co., Camden, N. J., Chairman. Loans made up to the end of the year within the district amounted to $4,335,750, extended to 36 banks. Membership in the system In addition to the bank suspensions, the number of member banks in this district also was reduced by consolidations and absorptions; one new national bank was organized. Total membership declined from 753 to 715 in the course of the year, as shown in the table: Active membership, December 31, 1930 Gains in 1931: Primary organization Suspended bank reopened Conversion from state member bank Losses during 1931: Suspensions Consolidation or absorption by national banks. Consolidation or absorption by state member banks Absorption by non-member banks Conversion into national bank Active membership, December 31, 1931 National banks State bank members Totals 669 84 753 1 1 1 0 0 0 1 1 1 3 0 3 23 5 7 0 30 5 1 1 0 2 1 1 3 2 1 30 642 11 73 41 715 Consolidations or absorptions of nonmember banks, whether for the purpose of continued operation or for liquidation, were numerous and the loans and investments so acquired by the member banks practically equalled the amounts lost to the system through suspensions or withdrawal from membership as a result 27 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia of absorption by nonmembers. On September 29 the loans and investments of the member banks were $2,740,000,000, or 66 per cent of all banks in the district, a higher percentage than a year earlier: Loans and investments* Per cent of Member banks All banks total $2,755 2,687 2,671 2,713 2,737 2,733 2,813 2,788 2,740 1929 -Oct. 4. Dec. 31. 1930—Mar. 27. June 30. Sept. 24. Dec. 31. 1931—Mar. 25. June 30. Sept, 29. $4,505 4,395 4,353 4,420 4,409 4,321 4,385 4,339 4,137 61.2% 61.1 ' 61.4' 61.4' 62.1 ' 63.2' 64.1 ' 64.3' 66.2 ' * 000,000's omitted. Fiduciary powers During 1931, three national banks were granted full fiduciary powers, but eleven banks, of which seven had full and four partial powers, were removed from the list as a result of consolidation, absorption by other banks, or suspension of operations. At the end of 1931, 289 national banks had such powers, 228 being in Pennsylvania, 51 in New Jersey and 10 in Delaware. Annual figures follow: Number of banks granted National banks having fiduciary powers December 31, 1927. 31, 1928. 31,1929. 31,1930. 31,1931. Full powers Partial powers 224 254 262 268 264 36 32 30 29 25 Totals 260 286 292 297 289 Member bank earnings and expenses Net profits of member banks in the year ended June 30, 1931, were materially smaller than in the preceding year, owing in part to lower rates of return on loans and investments, but more largely to greater amounts charged off as losses on loans and investments. Dividend payments exceeded net profits in 1931. In both years interest paid on time deposits averaged about 3*4 per cent of 28 Seventeenth A?inual Report, Federal Reserve Bank of Philadelphia such deposits and aggregated more than 20 per cent of the gross earnings. Years ended June 30 1931 1930 Ratios of average loans and investments Earnings: Interest, discount, and dividends received Trust department earnings Profit on securities sold Other earnings 5.26% .32 " .23" .28" 5.59% .31 " .26" .34" Gross earnings 6.09% 6.50% Expenses: Salaries and wages paid Interest paid on borrowed money Interest paid on deposits Taxes Other expenses 1.15% .06" 2.15" .29" .63 " 1.16% .20" 1.98" .31 " .67" Total expenses 4.28% 4.32% Net earnings Recoveries on charged-off assets 1.81% .06" 2.18% .07 " Net earnings and recoveries Losses and depreciation charged off 1.87% 1.30" 2.25% .58" Net addition to profits Dividends paid •57% 1.19" 1.67% 1.26 " Banking and business statistics In the interest of banking, credit and business administration, the Department of Research and Statistics has been making numerous improvements in the collection and analysis of financial, trade and industrial information for this district. Many new sets of indicators bearing on production and distribution of commodities have been added so that at present monthly and weekly series of figures covering nearly all important phases of business and banking activity are maintained in our files. This accumulation of important statistical data has been made possible through the continued cooperation of business men as well as private and official agencies. The demand for information on business conditions, particularly by geographic divisions, has been heavy, a fact which is characteristic of depression periods. This demand has been satisfied 29 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia partly through advance monthly reports showing changes in trade and industrial activity and partly through the monthly bulletin, The Business Review. The advance information is issued as soon as the figures are assembled primarily for the benefit of the cooperating concerns, which send reports to us, while the regular bulletin is made available to the public in general at a somewhat later date. The aim of these reports is to give only a factual statement of business conditions in this district each month so that the reader can draw his own conclusions and apply them to his own line of activity. Weekly reports and analyses of business and banking conditions also have been prepared for the directors and officers of this bank, providing them with the necessary information on prevailing conditions in commerce, industry and agriculture. Statistical data have been furnished weekly and monthly to the Federal Reserve Board for its administrative and research purposes and special studies have been made both for the benefit of the Board as well as this bank. For many years this bank has been collecting figures bearing on changes and trends in the production and distribution of goods but until recently these statistics had not been so unified as to show current changes in the general activity of major industries. It has been thus extremely difficult to get even a rough measurement of general business activity because of the multitude of details which often display marked divergencies in their trend and seasonal variations. This is especially true of this district because of its unusually wide industrial diversification. This problem has been solved partly by the construction of a new index of manufacturing, which is the most important industry in this district. This new index combines 45 sets of figures and provides a monthly measurement of changes in the rate and volume of output in the aggregate as well as by individual lines. The figures used in the index represent two-thirds of all manufactures of this district and so are considered as representative of current conditions. As a supplement to production data, the collection of factory employment and payroll statistics has been expanded through the cooperation of the Pennsylvania Department of Labor and Industry and the United States Bureau of Labor Statistics. Indexes showing changes in the number of workers and the volume of payrolls have been made available to the public every month. The significance of these figures is found in the fact that they reflect not only variations in factory operation, but they are also reflective of pur- 30 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia The economic importance of the Philadelphia Federal Reserve District Per cent this district of United States Land area and population: Area—square miles 1.2% Population, total 6.2 " Population, gainfully employed 6.2 " Banking, etc.: Resources of national and state banking institutions 7.6" Persons engaged in— 5.8 " Banking and brokerage 5.7" Insurance and real estate Manufacturing: Wage earners 9.5 " Wages 9.2 " Cost of materials 7.7 " Value of products 8.1 " Value added by manufacture 8.6" Extraction of minerals: Anthracite coal 100.0 " Bituminous coal 4.3" Persons engaged in—coal mines 27.7 " Persons engaged in—others 4.2 " Building: Contracts awarded* 7.7" Persons engaged in building industry 7.5" 6.0" Families Agriculture: Farm population (rural and urban) 2.2 " 2.2" Number of farms 1.2" Land area in farms 1.3" Value of land in farms 4.3" Value of farm building and implements 2.6" Cash income Volume of trade: 4.6" Retail sales (60 cities) 4.8" Wholesale sales 6.4" Automobile sales (registrations of new passenger automobiles) 6.5" Persons engaged in retail and wholesale trades, except automobiles . . . 6.7 " Port of Philadelphia—foreign and domestic trade** Transportation and communication: Persons engaged in 6.6" 7.5" Electric power output * 37 states in the United State?. ** 60 ports in the United States. chasing power of the rank and file of wage earners. This information is used by both producers and distributors of goods, and it is also of importance to this bank as it indicates the demand for currency for payroll purposes. New indexes measuring construction and coal mining have been prepared, superseding the old figures which did not take account of the number of working days or seasonal variations. Indexes of employment and payrolls in these industries also are available and supplement the production figures as in the case of manufacturing. Data on distribution, accumulated by this bank over the past 31 Seventeenth Annual Report, Federal Reserve Bank of Philadelphia decade, have been made more valuable than ever before by their use in the construction of new indexes of mercantile trade and shipments of commodities. These indexes make full allowance for such differences as the number of business days in the month, seasonal changes, and a shift in holidays from one year to another. Indexes are now available for retail and wholesale sales, stocks, and collections. As in the case of manufacturing, these indexes measure changes by lines of business and for each trade as a whole. The accurate combination of various related lines into composite indexes has been made possible through the federal census of distribution which provides for the first time a means for determining the relative importance of one line of business to another in retail and wholesale trade. Virtually all trade and industrial indexes are now available in two forms—the one without taking account of seasonal changes, the other adjusted for seasonal, or month-to-month, fluctuations which arise from an uneven distribution of activity through the year. An adjusted index reflects more accurately than an unadjusted one, the current volume of business, as it shows whether there is any increase or decrease beyond the usual seasonal changes. Indexes for the principal lines of trade and industry from 1923 through 1931 are given at the end of this report. Seventeenth Annual Report, Federal Reserve Bank of Philadelphia. Indexes of business conditions Philadelphia Federal Reserve District Adjusted for seasonal variation (Monthly index numbers; 1923-1925 average=100) Passenger Freight WholeFactory Building Coal mining car Retail automobile produc- contract registraS3,16 awards sales tive tions Anthra- Bitumi- loadings Total (value) sales (new) activity nous cite 1923 Jan Feb.. . . Mar.. . . April. . . May. . . June... July.... Aug.. . . Sept... . Oct Nov.. . . Dec 96 95 99 103 108 110 108 104 105 102 103 101 99 98 94 87 74 65 55 50 60 70 78 83 125 121 131 125 125 123 125 126 56 112 109 113 128 125 134 123 122 120 121 124 45 113 112 117 108 99 116 132 141 144 146 135 124 103 93 94 104 101 105 107 107 111 109 105 100 99 99 100 105 104 103 109 106 107 108 105 105 103 101 95 94 94 105 94 102 104 101 96 100 99 101 98 187 77 91 72 82 95 103 91 120 106 115 61 Annual 102* 75 116 115 117 104 104* 99* 97 1924 Jan Feb Mar... . April. . . May. . . June... July.... Aug.. . . Sept... . Oct Nov.. . . Dec 100 99 99 97 95 91 89 90 92 93 94 97 75 77 87 96 107 105 104 109 134 150 134 101 113 114 112 100 105 106 104 99 108 98 98 105 116 116 115 104 109 111 109 103 112 100 101 108 94 99 92 79 79 80 76 75 83 84 79 88 99 103 101 94 91 91 90 92 95 97 98 102 105 103 102 100 96 97 99 97 99 99 96 100 102 104 99 106 99 100 99 97 97 94 100 98 117 124 108 104 108 97 96 107 85 84 87 53 95* 107 105 108 89 96 99* 99* 99 Feb.. . . Mar.. . . April.. . May. . . June... July.... Aug.. . . Sept... . Oct Nov.. . . Dec 99 99 99 100 104 104 105 103 104 106 105 105 80 110 119 123 114 118 123 124 122 124 122 125 108 111 100 109 113 105 115 126 15 15 17 18 110 114 103 113 118 108 119 132 1 1 2 3 96 90 86 86 85 87 91 95 96 99 104 106 101 103 100 100 98 99 100 102 97 98 103 105 99 100 98 98 97 98 97 97 95 97 97 96 98 103 101 102 99 100 97 104 102 108 102 102 67 70 97 98 106 103 110 101 92 122 131 150 Annual 103* 118 79 77 94 100 97* 102* 104 Annual 1925 Jan Monthly average. 33 Ser enteenth Annual R epol't, F ecleral R esel've Bank of Philaclelphia Indexes of business cond itions-Continued Adjusted for seasonal yariation (Monthly index numbers; 1923-1925 average=100) Factory Building produc- contract tive awards activity (value) J an . .... Feb .. .. Ma r .... April. .. May ... June ... Jul y .... Aug .. . . Sept.... Oct .. .. . Nov . ... Dec . . .. TotaII An~hraCIte - - - - - - - -- 1926 106 106 106 106 106 107 107 107 110 110 110 109 Passenger Freight Whole- R etail automobile car sale sales registraBit umi- loadsales tions ings nous (new) Coal mining - -- - - - - - - - - 128 136 130 126 128 136 145 146 143 139 139 167 17 3 105 101 108 95 150 44 34 109 103 96 101 89 121 125 95 103 101 104 109 121 125 98 102 99 100 124 115 ll8 97 105 99 108 139 122 126 100 102 100 100 117 121 119 105 106 97 109 123 117 119 104 105 97 104 122 104 124 127 108 97 106 128 118 120 108 III 97 109 122 110 109 11 8 113 104 99 116 115 115 116 III 99 107 129 - - - -- - - - - - - - - Annual 108* 137 104 104 105 98* 105* 106 123 = = = = - - - - - - - - - - - - -- - - - = === 1927 Ja n ... . . 106 151 103 103 103 104 95 106 122 F eb .... 106 169 96 95 106 108 93 105 114 Mar. . . . 106 160 92 88 115 110 94 98 115 April. .. 106 158 107 105 91 103 93 106 107 Mav ... 106 161 112 116 91 101 94 100 108 Jun'e ... 104 156 102 103 92 103 100 95 101 July .... 104 183 76 75 84 100 93 104 100 Aug ... . 103 162 104 107 101 88 102 96 102 Sept.... 103 161 98 100 89 101 94 96 94 Oct.. ... 100 143 103 100 82 98 93 97 100 Nov .... 100 144 101 97 75 96 100 91 96 D ec . .. . 100 166 92 90 79 94 92 102 78 - - - - - - - - - - - -- - - - - - - - - - - - - ----Annual 104* 160 98 99 91 102 94* 102* 104 = = = = = = - - - -- - - - - - - - - - - - - - = = = 1928 J an ..... 100 164 88 88 99 91 83 98 91 Feb .. . . 102 162 85 86 83 98 94 98 102 Mar . ... 100 163 80 79 85 98 92 104 100 Apri l. . . 98 165 104 106 94 100 92 101 95 May ... 99 173 108 III 92 99 95 96 103 June . . . 102 169 77 75 91 101 93 101 110 July ... . 101 160 71 67 94 100 94 103 109 Aug . ... 101 157 93 93 90 103 94 112 95 Sept . ... 104 161 93 94 92 103 93 108 121 Oct... . . 105 164 III 114 96 107 94 118 99 ov . .. . 106 165 106 108 93 107 127 95 100 D ec . . . . 105 152 97 98 90 105 101 152 106 - -- - -- - -- - - ---- --Annual 102* 165 93 93 102 90 95* 100* 111 * Monthly average 34 Sevente enth Annual R eport, F ederal R eserv e Bank of Philad elphia Indexes of business conditions-Continued Adjusted for seasonal 'IIariation (Monthly index numbers; 1923-1925 average=100) Passenger Freight WholeCoal mining Factory Building automobi le car Retail produc- contract sale registraloadtive awards tions sales sales Anthra- Bitumi- ings activity (value) Ttl o a Cite nous (new) --1929 Jan . .... Feb .. . . Mar. ... April .. May . Jun e. July .... Aug . ... Sept ... . Oct ..... Nov . . . . Dec .... 104 107 107 III 113 113 114 115 114 112 108 106 152 134 156 147 150 132 126 124 119 128 109 153 Annual 110* 132 1930 Jan .... . Feb .. .. Mar .... April . . May ... June. July . ... Aug .. . . Sept . . .. Oct . .... Nov .... Dec... . 105 104 103 103 100 95 93 92 95 93 89 82 135 132 98 96 134 125 133 80 72 68 74 75 Annual 96* 108 1931 Jan . .. .. Feb .. .. Mar . . .. April. .. May .. June . . . July .... Aug ... . Sept ... . Oct ..... Nov .... Dec . • .. 80 81 81 85 81 76 75 76 75 73 70 69 73 59 60 60 60 77 70 70 59 62 58 39 Annual 77* 62 91 104 100 99 109 107 94 97 100 107 107 105 109 95 103 93 83 75 106 95 91 92 99 93 106 107 93 95 84 90 106 74 109 109 99 82 102 108 100 78 70 109 101 103 104 82 79 108 101 102 108 106 103 103 102 98 106 103 111 113 92 102 95 99 89 90 92 118 95 100 98 114 -98* 101* 98 92 106 93 - - - - -- - - - - - 82 98 95 81 98 93 80 94 89 95 96 88 73 92 93 90 81 92 93 86 78 90 85 82 90 82 83 89 88 83 83 80 86 82 84 85 106 78 78 80 83 75 78 78 93 --- - - - -86* 87 84 90 86 ------------ 104 98 72 76 84 81 84 88 81 103 83 91 106 102 70 90 87 72 83 94 90 73 70 70 70 85 72 72 71 73 67 60 62 66 88 65 69 77 76 80 80 80 76 79 72 66 74 58 62 65 72 69 66 63 64 61 92 59 66 66 54 72 66 --73* 71 73 74 67 * Monthly average. 79 78 77 77 72 70 69 70 66 66 64 64 35 130 144 134 131 125 131 131 134 132 125 124 117 131 96 98 91 98 94 91 87 90 89 92 88 85 116 127 118 101 102 101 87 93 89 84 74 85 91* 99 85 84 87 87 86 85 73 77 77 75 69 72 89 87 79 83 87 77 68 72 100 79* 80 73 75 73 Seventeenth Anmwl R eport, F ederal R eserve B ank of Philadelphia Indexes of business conditions Philadelphia Federal Reserve District Without adjustment for seasonal variation (Monthly index numbers; 1923-1925 average=100) Passenger Coal mining Freight WholeFactory Bui lding automobile car Retai l produc- contract sale registraloadtive awards sales sales t ions Bitumi- ings activity (value) T otal An~hracite no us (new) -------------1923 Jan .. . .. Feb .. Mar. . Ap ril. .. May. · . June ... July .... Aug .. Sept .. Oct .. . . . Nov . .. . Dec .... 96 98 102 103 107 106 101 101 103 105 104 103 80 93 110 106 84 67 Annual 102* 75 1924 Jan .. .. Feb . .. Mar .. April . .. May . .. June. July. ... Aug ... Sept. . · . Oct .. Nov .. · . Dec .... 100 101 101 97 94 89 85 88 91 97 96 99 61 73 102 117 122 108 102 11 3 143 150 120 Annual 95* 54 52 63 70 70 58 71 107 1925 Jan ... . . Feb .. .. Mar. · . April. · . May ... June .. . July .... Aug .... Sept .... Oct . . . Nov . . .. Dec .... 99 101 102 100 103 102 100 101 103 110 107 106 65 105 139 150 130 123 120 127 130 124 109 89 Annual 103* 118 124 118 132 120 123 124 124 123 57 119 113 112 124 120 134 120 122 124 123 122 45 120 115 114 120 94 93 97 95 11 8 100 101 102 121 104 127 111 102 126 113 101 113 96 129 127 III 97 127 111 11 8 110 107 117 103 100 114 99 90 106 -----------104* 116 H5 H7 104 ------------ 75 81 101 97 105 103 74 78 84 107 125 159 112 112 112 97 105 108 105 96 108 103 102 103 113 107 94 90 113 108 96 97 115 94 96 99 91 101 71 94 110 71 95 93 114 71 92 93 III 67 93 88 101 70 97 90 112 no 106 84 105 104 113 90 104 87 99 109 105 92 92 112 -------105 99* 89 96 108 ------------ 82 89 90 114 102 98 73 79 83 101 124 158 106 109 99 106 114 106 116 125 15 16 18 19 79 87 94 107 102 98 lOS 106 111 101 111 120 111 122 132 1 1 2 3 109 98 88 79 76 77 80 89 98 105 114 111 91 89 97 93 95 95 92 97 102 94 101 93 103 87 107 90 107 106 106 III 104 110 109 95 --------- --79 77 97* 94 100 * Monthly average. 36 99* 99* 101 53 95 111 118 133 11 8 100 11 4 91 85 33 97 63 85 112 162 155 136 110 118 81 72 64 29 99 84 87 11 8 126 164 36 48 101 153 152 144 126 112 88 105 97 81 102* 104 72 Se vent eenth Annual R eport, F ed eral R eserv e Ba.nk of Philad elphia Indexes of business conditions-Continued Without adjustment for seasonal "ariation (Monthly index numbers; 1923-1925 average=100) Passenger Freight WholeCoal mining Factory Building automobi le Retail car produc- contract sale registraloadtive award tions sales sales Anthra- Bitumi- ings activity (value) Ttl o a cIte nous (new) ------ - -- - - -----1926 Jan ..... Feb .... Mar .. .. April. .. May ... Jlme . . . July .... Aug .. .. Sept .. .. Oct .... . Nov . . . . Dec . .. . 105 108 109 106 105 105 103 106 111 115 112 109 104 129 152 154 146 142 142 151 148 139 123 124 Annual 108* 137 Dec .. .. 105 108 108 105 104 103 101 103 105 104 102 99 122 160 187 193 188 164 179 163 164 142 125 126 Annual 104* 160 1928 Jan . . .. . Feb .... Mar . . . . April ... May ... June ... July . . . . Aug .... Sept.... Oct ... . . Nov .... Dec . . .. 99 104 101 97 98 101 98 101 105 109 107 102 133 154 190 201 207 179 156 157 161 163 142 116 Annual 102* 165 1927 Jan ..... Feb .... Mar . ... April. .. May . . . June ... July .... Aug . ... Sept ... . Oct .... . ov ... . 91 85 88 88 96 85 97 99 98 102 93 99 96 111 109 94 104 97 87 81 109 90 83 110 108 91 119 III 119 119 113 128 114 114 174 100 --- ---------- 98* 105* 105 104 104 106 - - - - -- - - - - - - 81 61 115 192 200 164 141 134 121 103 86 70 84 117 87 102 94 99 84 87 92 116 101 95 117 104 90 90 90 85 112 83 87 104 107 100 82 90 103 121 105 115 81 105 90 98 102 105 74 84 78 76 76 103 89 82 108 83 105 107 84 112 106 100 90 99 106 107 105 107 88 106 122 III 101 104 83 97 168 106 87 87 83 85 ------94* 102* 91 102 98 99 - - - - - - - - - - -- - - 66 80 123 165 156 141 114 112 89 84 67 42 19 45 119 119 117 124 118 116 124 124 115 111 119 118 97 89 87 88 92 98 106 115 129 122 3 33 123 124 121 130 122 119 127 126 112 109 79 95 85 89 92 85 90 83 87 86 76 93 86 107 86 97 83 103 90 116 103 89 76 80 86 67 83 103 88 84 108 95 106 94 115 94 108 103 116 118 102 109 108 III 121 94 95 93 -- -95* 102 90 93 93 86 84 77 104 112 77 69 94 94 116 110 93 * Monthly average 37 123 104 49 79 80 94 97 98 98 77 75 96 110 121 175 112 154 148 154 123 124 117 98 93 82 100* III 73 S(,I'(,l1t ecl1th Al1111(((Z R eZJol'f, F ederal R ese rve Rank of Ph ilad elphia Indexes of business conditions-Continued Without adjustment lor seasonal yariation (Monthly index numbers; 1923-1925 average=100) . h Passenger F'relg Factory Building Coal mining car t ,'T ., I1ole_ I Retail automo b'I le produc- contract award s 1- --,------:--.--.-1 loadsa e sales registrat.ive sa les t ions Bltuml- ingR activ ity ( va lue') T 0 t,a I An~hracite nOlls (new) - - -1- - - - - - - - - - - - - - - - - - - - - - -- - 1929 Jan.. . . . Feb.. . . Mar.... April.. . May . . . June. .. July . . . . Aug.. . . Sept... . Oct. ... . Nov.. Dec.. . . Annual 102 108 108 109 112 113 110 116 117 116 110 103 123 128 183 180 183 141 124 120 119 125 94 118 107 105 79 93 93 80 76 83 103 115 93 110 110* 132 93 1= = = 1 = = = '1= = - 1930 Jan . . . . . Feb.. . . Mar. . . . April. . . May.. . June. . . July. .. . Aug... . Sept... . Oct. . . . . Nov.... D ec.. . . 103 104 104 101 99 95 91 93 98 98 91 80 103 104 71 94 89 74 70 81 103 117 92 112 104 103 97 90 96 96 96 95 103 105 101 96 112 114 119 114 103 89 92 98 106 93 99 98 103 111 III 85 87 87 88 88 94 92 95 118 120 110 112 98* 102 96 69 76 86 79 82 89 81 107 86 87 102 99 66 74 86 78 82 90 80 110 85 88 79 88 93 89 93 97 94 93 93 95 91 81 70 81 84 83 82 85 82 78 78 95 99 90 89 94 88 82 86 83 81 79 77 85 88 86 Annual 96 * 108 86 87 81, 91l 86* 1931 J a n .... . Feb ... . Mar. .. . April. .. May . . . June . . . July ... . Aug . . . . Sept . .. . Oct . ... . Nov ... . Dec . .. . 78 82 82 83 80 76 73 76 76 76 71 67 59 56 70 73 73 83 69 67 59 60 50 30 88 86 90 79 87 77 70 83 75 69 87 71 65 71 74 73 75 75 72 72 74 73 71 65 57 67 69 75 74 75 73 73 67 Annual 77* 62 59 63 66 91 68 67 76 66 58 63 66 96 66 68 68 64 57 63 65 61 64 66 * Monthly average. - -- 80 83 105 91 97 103 74 82 95 114 120 166 70 106 147 200 180 183 148 148 127 102 88 63 101* 131 - - ---- - - - - - - - - - === 109 125 115 117 165 135 130 77 72 66 64 57 66 - 38 78 73 75 74 78 81 83 104 95 89 64 72 80 103 106 140 91 * 69 70 82 89 87 83 57 60 69 84 83 119 63 94 132 152 147 141 99 102 86 69 52 45 99 48 65 89 125 126 108 82 83 70 56 50 54 Federal Reserve Bank of Philadelphia Directors and Officers Appointed and Elected for the Year 1932 DIRECTORS Class A John C. Cosgrove, Johnstown, Pa. George W. Reily, Harrisburg, Pa. Joseph Wayne, Jr., Philadelphia, Pa. Class B J. Carl De La Cour, Camden, N. J. Arthur W. Sewall, Philadelphia, Pa. C. Frederick C. Stout, Philadelphia, Pa. Class C Richard L. Austin, Philadelphia, Pa. Harry L. Cannon, Bridgeville, Del. Alba B. Johnson, Philadelphia, Pa. Member of Federal Advisory Council Howard A. Loeb, Philadelphia, Pa. OFFICERS Richard L. Austin, Chairman and Federal Reserve Agent Alba B. Johnson, Deputy Chairman Arthur E. Post, Assistant Federal Reserve Agent Ernest C. Hill, Assistant Federal Reserve Agent George W. Norris, Governor William H. Hutt, Deputy Governor C. A. Mcllhenny, Cashier and Secretary W. J. Davis, Assistant Cashier J. M. Toy, Assistant Cashier R. M. Miller, Jr., Assistant Cashier S. R. Earl, Assistant Cashier William G. McCreedy, Comptroller
@FedFRASER