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Twenty-first oAnnual of the FEDERAL RESERVE BANK OF PHILADELPHIA Made to the Board of Governors of the Federal Reserve System by the Chairman of the Board and Federal Reserve Agent of the Third Federal Reserve District 193 5 Twenty-first oAnnual cRgport of the FEDERAL RESERVE BANK OF PHILADELPHIA Made to the Board of Governors of the Federal Reserve System by the Chairman of the Board and Federal Reserve Agent of the Third Federal Reserve District 19 3 5 CONTENTS Page Foreword 5 Profit and loss account 5 Statement of condition 7 Business conditions: Foreword Industrial activity: Manufacturing Coal and other fuels Crude petroleum Building and real estate Agriculture Electric power General employment, unemployment and relief Distribution, trade, service Banking conditions: Foreword Banking legislation and regulations Federal Reserve Bank: Industrial loans Earning assets and reserves Member bank reserves and related factors Condition of member banks Currency demand Discount and interest rates Membership Fiduciary powers Departmental operations Personnel and building 29 30 32 35 38 40 41 41 42 43 Banking and business information Indexes of business conditions 44 46 8 9 14 15 16 18 20 21 23 27 27 Annual Report of the Federal Reserve Bank of Philadelphia for 1935 During 1935 there was an increase in productive activity and in the distribution of goods. Although the general level of wholesale commodity prices did not change materially over most of the year, the average was above that of 1934. In the security markets quotations at the close of the year were substantially higher than at the end of 1934. While bank loans declined in this district, there was a marked expansion in deposits which was ascribable largely to the continuance of Government disbursements on a broad scale. Extensive purchases of investments were made by the banks, but a considerable portion of the growing supply of funds was allowed to remain on deposit at the Federal Reserve Bank. Excess reserves were an outstanding feature of the banking situation both locally and nationally. The surplus of funds was reflected in the continuance of low rates for open-market paper and small yields on Government and high-grade corporate obligations. Profit and loss account Earnings of the Federal Reserve Bank of Philadelphia from working capital loans made to established businesses increased materially during 1935, but amounts derived from discounts for member banks and purchased bills were negligible and income from securities of the United States Government declined from $3,152,000 to $2,821,000 in the face of an increase in average holdings. Total earnings, including profit on the sale of United States securities and sundry additions, decreased from $4,350,000 in 1934 to $3,536,000 in 1935. Deductions from earnings were reduced from $3,307,000 to $2,668,000, despite some increase in current expenses and the payment of a special assessment toward the construction of a building in Washington for the Board of Governors of the Federal Reserve System. This was due principally to the fact that little had to be added to the reserves for contingencies and nothing had to be set aside for depreciation on buildings and premises in view of new construction during the year. Net earnings available for distribution amounted to $868,000 in 1935. $76,000 represented profits attributable to the use of funds turned over to this bank by the Secretary of the Treasury in accordance with section 13b of the Federal Reserve Act, which deals with advances to industries for working capital; $42,000 of Twenty-first Annual Report, Federal Reserve Bank of Philadelphia the |76,000 was paid to the Secretary and $34,000 was transferred to "Surplus—Sec. 13b". Inasmuch as there then remained of net earnings only $792,000, insufficient to meet $856,000 of dividends, |64,000 was withdrawn from "Surplus—Sec. 7", which represents earnings accumulated from regular operations. A decline in dividend payments from $926,000 in 1934 to $856,000 in 1935 was due principally to the retirement of well over 2 millions of the bank's capital stock in September, in conformity with the Banking Act of 1935 which permits a member to hold only that amount of Federal reserve bank stock to which its capital and surplus currently entitle it. Prior to the passage of that Act a member bank was required to adjust its holdings of reserve bank stock when its capital was increased or decreased, but a decrease in surplus account required no such adjustment. Profit and loss account Federal Reserve Bank of Philadelphia (000's omitted) Earnings: From bills discounted From bills bought From industrial advances From United States securities. From other sources Total earnings.... Additions to earnings. Deductions from earnings: For current bank operations For Federal reserve currency Assessment—expenses of Board of Governors .. . Furniture and equipment purchased Reserves for contingencies Depreciation on bank building and premises. . . . All other Total deductions from earnings. 1934 $1,550 60 0 2,658 43 $ 456 10 17 3,152 90 $4,311 117 $3,725 625 5,124 412 $4,428 $4,350 $3,536 $1,965 184 84 28 2,483 0 2 $2,135 102 142 26 651 250 1 $4,746 $3,307 $2,668 $1,043 $ 868 $ $ Net earnings available for dividends and addition to surplus - $ 318f Distribution of net earnings: Payment to Secretary of Treasury (Sec. 13b) Transferred to surplus (Sec. 13b) (to = + from = —) Transferred to surplus (Sec. 7) (to = + from = —) Dividends paid $ 0 0 - 1,269 951 0 1 118 926 * Includes assessment of $99,000 toward building for Board of Governors, t Deficit. 1935 1933 ( 12 4 255 2,821 32 119 238* 32 5 0 1 42 34 64 856 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia Statement of condition Federal Reserve Bank of Philadelphia (000's omitted) December 30, 1933 December 31, 1934 December 31, 1935 RESOURCES Gold certificates on hand and due from U. S. Treasurv Gold Redemption fund—Federal reserve notes. . Other cash $ 92,988 100,344 4,188 31,051 $271,119 0 2,525 35,662 $370,230 0 1,168 34,078 Total reserves Redemption fund—Fed. res. bank notes.. . . Bills discounted: Secured by U. S. Government obligations* Other bills discounted $228,571 1,300 5,286 20,077 $309,306 0 556 437 $405,476 0 250 127 Total bills discounted. Bills bought Industrial advances United States securities Other securities $ 25,363 7,858 0 167,120 510 5 I Total bills and securities. Due from foreign banks Federal reserve notes of other banks . Uncollected items Bank premises All other resources $200,851 368 1,066 36,896 3,841 4,576 $171,933 87 1,373 38,755 4,411 5,178 $184,749 69 1,507 40,928 4,830 3,801 $477,469 $531,043 $641,360 Federal reserve notes in circulation.. Fed. res. bank note circulation—net. Deposits: Member bank reserve account U. S. Treasurer—general account Foreign bank Other deposits $236,128 20,390 $240,443 0 $271,870 0 129,225 83 437 9,512 211,579 4,315 1,995 1,977 274,326 10,519 2,881 10,174 Total deposits. . Deferred availability items. Capital paid in Surplus—Section 7 Surplus—Section 13b Reserves for contingencies. All other liabilities $139,257 35,044 15,917 27,973 0 2,500 260 $219,866 37,578 15,131 13,470 1,049 2,996 510 $297,900 40,293 12,328 13,406 2,132 3,000 431 Total liabilities Ratio of total reserves to deposit and Federal reserve note liabilities combined Contingent liability on bills purchased for foreign correspondents Commitments to make industrial advances. $477,469 $531,043 $641,360 60.9% 67.2% 71.1% $68 399 0 0 Total resources 993 584 3,236 167,120 0 377 484 6,768 177,120 0 LIABILITIES * Includes bills secured by obligations fully guaranteed by the United States Government. Twenty-first Annual Report, Federal Reserve Bank of Philadelphia Business conditions Conditions of business in the Philadelphia Federal Reserve District during 1935 have reflected additional economic gains over 1934. Most of our measurements of industrial and trade activity have reached the highest levels since 1931. Industrial production has continued to expand and by the end of the year this bank's seasonally adjusted index of output by factories and mines had attained the highest point for the same period since 1930. In the field of construction, the most striking development has been evidenced by a steady rise in the activity of residential building, particularly family houses. The volume of construction financed by public funds, on the other hand, has declined in comparison with 1934, although the value of contracts awarded for this class of building increased sharply in the closing months of the year. General employment has been well maintained throughout 1935. Nevertheless, expenditures for various types of unemployment relief in this section have been increased greatly in comparison with the annual totals in the preceding two years. Income from such sources as wages, sale of farm and industrial products, rents, dividends and interest has continued upward since early 1933, following a period of prolonged decline. In consequence, the purchasing power of the general population has increased materially, though its full effect has been lessened somewhat by a rise in the cost of living. Wholesale prices of manufactures and farm products have fluctuated during the year but slightly and in the same direction, indicating a marked change in the relationship in the price levels of these two major groups of commodities from that which existed in the years from 1931 to 1934. Food prices, on the other hand, have continued rising so that at the end of the year they were nearer their 1926 levels than were prices of industrial products and agricultural staples. The value of retail and wholesale trade sales was larger in 1935 than in 1934 and substantially so as compared with 1932 and 1933. Inventories at the end of the year showed little change from those of a year before, except in the case of used passenger automobiles, but a considerable reduction in comparison with the volume prior to 1931. Shipments of goods by rail, motor truck and water naturally reflected the higher rate of activity in the field of production and distribution of commodities. Extended description of 8 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia conditions and changes during 1935 by important economic groups in this district follows. Industrial activity Activity of manufacturing industries in this district generally during 1935 showed further expansion as compared with 1934 and other recent years. The rate of factory output rose sharply in the spring months, declined in mid-summer and subsequently increased continuously, reaching at the end of the year the highest level since 1930. This bank's index number of factory production rose to 78 per cent of the 1923-25 average, on a seasonally adjusted basis, as compared with a record low of 52 in March 1933. The average for the entire year was 73 as against 67 in the previous year, 64 in 1933 and a low average of 61 in 1932. The record high was 111 in 1929. Consequently, it appears that the trend of factory production during 1935 has continued upward with a fair degree of regularity and the amplitude of fluctuations has been much narrower than in the preceding three years. The rate of gain in the output of durable goods was especially pronounced, largely in response to demand for manufactured products for equipment purposes. The index of productive activity in this industry rose by the end of the year to about 62 as compared with 49 a year before and the low of 29 in March 1933. This increase for the most part was due to a further expansion in iron and steel products, electrical apparatus, iron castings, automotive equipManufacturing Factory output Philadelphia Federal Reserve District Index number (annual average), 1923-25 = 100 1929 1930 1931 1932 1933 1934 Manufacturing—-total 111 97 Durable goods Non-durable goods 110 112 94 100 124 107 94 96 120 83 122 128 118 191 102 89 86 92 106 66 115 122 114 193 Metal products Textile products Transportation equipment P^ood products Tobacco and products Building materials Chemicals and products Leather and products Paper and printing Electric power output 61 64 67 73 60 90 39 77 40 82 50 80 56 87 62 83 59 83 94 43 104 114 99 190 34 72 47 74 78 27 89 98 83 177 41 81 33 71 81 24 95 118 80 181 54 72 44 75 88 28 101 118 79 192 63 87 46 70 89 29 104 126 81 197 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia INDUSTRIAL PRODUCTION PHILADELPHIA FEDERAL RESERVE DISTRICT 1929 1930 1931 1932 10 1933 1934 1935 1936 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia ment, shipbuilding and, to a lesser extent, certain building materials. Non-durable goods industries also showed a further increase in output, though the rate of gain over previous years was not as striking as in the case of durable goods. The production index for this branch of industry at the end of the year was about 91 and the average for the year was 87, relative to the 1923-25 base, as compared with 80 in the previous year, 82 in 1933 and a low average of 77 in 1932. The largest relative increases occurred in the textile, and leather and leather products industries, while the food group alone showed a decline. Prices of manufactures at factory on the whole showed little change during 1935 as compared with 1934 but they were considerably higher than in the period from the spring of 1931 to the fall of 1933. The index number of the Bureau of Labor Statistics for all commodities other than farm products and foods in 1935 was about 77.9 per cent of the 1926 average as against 78.4 in the previous year, 71.2 in 1933, and a low of 70.2 in 1932. Inventories of raw materials and finished goods held by plants in this district at the end of the year appear to have been moderate and in most instances differed little from the volume of a year ago. Such data as are available indicate definitely a marked reduction in stocks of goods from the relatively large volume accumulated over a period culminating in 1931 and 1932. Pertinent figures for the country as a whole reflect a similar condition with respect to factory inventories. The trend of factory employment has continued upward, though not as sharply as that of payrolls and working time. The disparity which developed between payrolls and working time and production in the years 1930 to 1933 has narrowed further during 1935. The indexes below are given as an indication of the change in this relationship. Index numbers Phila. Fed. Res. District (1923-25 = 100) Production. . Employment Payrolls .. . . 1928 1929 1930 1931 1932 1933 1934 1935 102 93 94 111 99 103 97 90 87 77 61 64 42 64 67 45 67 75 57 73 75 63 77 63 Jan. 1936 74 77 66 The number of wage earners employed by the manufacturing industry in this district averaged about 682,000 and the amount of wages paid totaled $693,000,000 during 1935, indicating a gain of 3 11 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia EMPLOYMENT AND PAYROLLS PENNSYLVANIA 1923-25=100 ALL MANUFACTURING INDUSTRIES HOURS AND EARNINGS 1927-28 = 100 1929 1930 1931 1932 12 1933 1934 1935 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia per cent in employment and 11 per cent in payrolls over 1934. To show the trend in these items there follows a table of figures derived from our current indexes and the census data: Factory employment and payrolls Philadelphia Federal Reserve District (Estimates) Employment (average lor year) 1923 1924 1925 1926 1927. . 1928 1929 1930 1931 1932. . 1933 1934 1935 877,316 785,198 804,043 829,772 792,432* 762,487 810,862* 757,227 645,330* 556,247 592,951* 661,140 681,635 Payrolls (total) $1,075,814,441 960,702,296 1,003,933,900 1,063,166,001 996,186,543* 946,309,341 1,033,815,162* 908,701,215 679,755,032* 461,672,090 492,123,399* 623,028,224f 692,807,381f * From the Census of Manufactures for 60 counties in eastern Pennsylvania, southern New Jersey and Delaware; prior to 1927 these figures were not subdivided by counties. Figures for other years were computed from the indexes of employment and payrolls compiled by the Philadelphia Federal Reserve Bank. f Preliminary. Earnings by wage earners during 1935 averaged 57.7 cents an hour or slightly more than in the previous year, as computed from the figures for Pennsylvania factories. The fluctuation in this item during the year was comparatively unimportant. The average time worked by wage earners approximated 34.5 hours per week, an increase of about 6 per cent as compared with 1934. The sharpest gain occurred in the fall months and at the end of the year the number of hours worked per week averaged around 36.1 per wage earner. Since the figures on hours are derived from the composite data for 68 manufacturing industries, they naturally do not fully disclose variations between individual industries. Similarly, data for earnTrend of hours worked and hourly earnings Pennsvlvania Average number of hours worked per wage earner per week Average earnings per hour per wage earner in cents 46.9 48.8 44.5 38.2 31.5 33.1 32.6 34.5 56.8 57.4 58.7 55.7 48.3 48.1 57.2 57.7 1928 1929 1930 1931 1932 1933 1934 1935 13 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia ings are obtained from the combined totals for these industries and are intended to indicate only the general trend of income from wages but in no sense to show wages rates. Coal and Production of anthracite fuel in 1935 approximated other fuels 51,000,000 net tons which was 11 per cent smaller than in the previous year but about 3 per cent larger than in 1932 and 1933. Toward the end of the year output and shipment of this fuel were stimulated considerably by severe weather conditions and this trend continued into early 1936. Stocks of anthracite at various sources declined and at the close of the year were 7 per cent smaller than a year before but considerably larger than at the end of 1933. The trend of prices generally has been downward during the past decade, reflecting in part competition from other fuels. The accompanying tables indicate changes that have occurred in the fuel industries during recent years. Per cent change from Fuels (Output and shipment figures are daily averages) Anthracite 1935 1932 1933 1934 Production Shipments Stocks Prices Employment tons tons 1000 tons (1926 - 100) Number 168,049 160,012 1,415 79.7 95,307 + 3 + 2 + 3 + 3 +59 - 3 - 9 -11 - 9 _ 7 - 1 -10 Production Shipments Prices Employment Coke Production Prices tons Number of cars (1926 = 100) Number 297,201 22,611 96.7 127,450 +22 +15 + 9 +17 +10 + + + - (1923-25 = 100) (1926 = 100) 86.8 88.6 + 17 +18 +22 +63 + 14 +28 +14 + 11 + 4 Production Prices (1923-25 = 100) (1926 = 100) 99.7 62.7 - 2 +28 - 0 + 14 - 4 + 6 Bituminous Gas and fuel oil -33 -10 -21 1 2 2 0 Sources: Bureau of Mines and Bureau of Labor Statistics. Activity in the bituminous coal field has continued to show improvement in sympathy with increased operations in those enterprises which are important consumers of this fuel. Production of bituminous coal in Pennsylvania during 1935 totaled nearly 91,000,000 tons as compared with 89,826,000 in the previous year, 79,296,000 in 1933 and a low of 74,776,000 in 1932. The number of mine workers remained about the same as in 1934 in contrast to a marked decline in the case of the anthracite industry. Prices 14 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia of bituminous coal have continued to advance since the low reached in 1932 and the average for the year was only within 3 per cent of the base year, 1926. Coal mining Employment and production Pennsylvania 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 Employment Production (net tons) Anthracite Bituminous Total Anthracite Bituminous 157,743 160,009 160,312 165,386 165,259 160,681 151,501 150,804 139,431 121,243 104,633 106,251 95,307p 194,981 169,322 156,798 155,999 153,699 133,414 131,774 130,150 116,726 104,532 115,453 127,868 127,450p 352,724 329,331 317,110 321,385 318,958 294,095 283,275 280,954 256,157 225,775 220,086 234,119 222,757p 93,339,000 87,927,000 61,817,000 84,437,000 80,096,000 75,348,000 73,828,000 69,385,000 59,646,000 49,855,000 49,541,000 57,168,000 51,003,000 171,880,000 130,634,000 136,928,000 153,042,000 133,099,000 131,202,000 143,516,000 124,463,000 97,659,000 74,776,000 79,296,000 89,826,000 90,927,000 Source: Bureau of Mines, United States Department of Commerce, p Preliminary. In response to increased demand, production of coke was 11 per cent larger in 1935 than in 1934 and substantially greater than in 1932 and 1933. Prices also have shown additional advances during the year. Productive activity in the case of gas and fuel oil slackened somewhat but prices have risen further, though the rate of this advance has been narrowing. Crude The petroleum industry has shown a continued increase petroleum in production since early in 1933. Output of crude oil in that part of Pennsylvania which is located in this district in 1935 exceeded 13,150,000 barrels, or the largest annual total in the history of the Bradford oil field. The following figures show the trend of production and prices in recent years. Crude petroleum output and prices 5,901,400 1928 1929 1930 1931 1932 1933 1934 1935 7,734,900 9,268,700 8,804,300 9,926,550 10,129,950 11,967,500 13,150,450 * Source: American Petroleum Institute. Bradford field barrels produced' 15 Average price per barrel (Pa.) $3,101 3.662 2.370 1.789 1.820 1.785 2.389 2.126 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia Building and real estate The aggregate value of building contracts awarded in this district during 1935 amounted to $94,259,000 as compared with $94,000,000 in the previous year, nearly $68,000,000 in 1933 and about $103,000,000 in 1932. The trend has been steadily upward since spring, though the total volume is still substantially behind that in the pre-depression years. The amount of contracts let in the peak post-war year 1928 totaled $503,543,000. As shown by the accompanying table, the largest relative gains since 1934 occurred in residential and miscellaneous construction, while the volume of public works alone registered marked declines. One of the significant developments disclosed by these figures is the fact that the trend in the case of one and twofamily houses has been almost steadly upward since the low level reached early in 1933. In the case of commercial buildings, the improvement during the year also was noticeable. Building and real estate Philadelphia Federal Reserve District Index number (annual average), 1923-25 = 1929 1930 1931 1932 1933 1934 1935 Contracts awarded: Residential Apartments and hotels Family houses Non-residential Commercial and factories.. Educational All other 108 128 99 168 157 181 189 48 50 48 142 18 13 20 41 20 65 81 12 4 16 25 23 11 44 12 112 154 30 25 33 62 36 79 120 14 29 24 42 33 17 8 21 29 23 27 47 Public works and utilities. 144 203 174 63 43 94 59 136 108 65 34 22 32 28 74 40 23 10 6 7 9 Grand total Building permits 147 7 Per cent change—1935 compared with Mortgages recorded Ordinary real estate deeds.. Sheriff deeds 1929 1930 1931 1932 1933 1934 -89(a) -84(a) -36(a) + 5 (a) -74(b) -24(b) +80(c) -ll(c) -25(c) + 187(c) + 5(c) - 31(o) +313(c) + 7(c) - 3(c) (a) 1 county, (b) 2 counties, (c) 6 counties. It will be observed that the relative importance of contracts let for residential construction has increased considerably during 1935, as indicated by the next table. Contrariwise, the proportion 16 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia BUILDING CONTRACTS PHILADELPHIA FEDERAL RESERVE DISTRICT AOJ JSTtD TOR SEASONAL VARIATION 0 SOS PERCENT KEY: 11 — — 350 TOT AL RES DFNTIAI ooooo NOh -RESIDENTIAL PUB LIC WORKS AND UTILITIES 300 250 200 150 A. ft TO 11 / w \ ^1 V , \ / / 0 1929 1930 1931 1932 1933 1934 1935 1936 of contracts awarded for the so-called public works and utilities declined from 1934 to 1935, though it is still higher than in other years with the exception of 1931. Building contracts Phila. Fed. Res. Dist, (Figures are percentages) 1928 1929 1930 1931 1932 1933 1934 1935 Residential Apartments and hotels... Family houses Non-residential. Commercial. . Factories Educational All other 44.4 13.6 30.8 40.2 11.7 37.2 13.6 23.6 45.2 16.0 21.7 4.9 16.8 34.6 24.1 5.6 18.5 44.8 27.5 4.6 22.9 39.2 9.5 9.2 8.9 3.9 6.7 7.4 2.9 8.8 10.5 10.9 15.5 14.1 9.4 7.5 8.6 8.2 9.9 7.6 8.8 12.3 12.6 19.4 25.7 2.6 23.1 42.8 10.9 13.2 18.9 3.3 15.6 33.7 9.8 6.4 20.7 6.4 14.3 48.7 16.0 15.1 12.9 Total buildings. . Public works and utilities 84.6 15.4 82.4 17.6 69.4 30.6 56.3 43.7 68.9 31.1 68.5 31.5 52.6 47.4 66.7 33.3 Grand total 4.6 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Prices of building materials in general were a trifle lower in 1935 than in 1934. Advances in cement, structural steel, and paint and paint materials were more than offset by decreases in brick and tile, lumber, plumbing and heating, and other building ma- 17 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia terials. The average index for all these groups fluctuated around 85 per cent of the 1926 average as compared with a low of 71 in 1932 and a high of 95 in 1929, according to the Bureau of Labor Statistics. The real estate market showed a considerable improvement during 1935 over 1934, even though the level of activity continued low in comparison with the pre-depression years. Renting demand for dwellings by industrial and lower-salaried workers has increased further. This appears to have been especially true in the case of small houses and apartments whose rentals range from f30$35 a month. Vacancies in these classes of dwellings have decreased appreciably. Foreclosures also have fallen off for the second year. Sales of houses varying from $3,000 to $5,000 also seem to have increased since 1934, and prices have shown some advances during the year. Mortgage funds for new purchases have been more readily available than for several years past. Interest rates prevailing in this section have shown less change since 1934 than they have in other parts of the country, although declines here have been apparent chiefly in the case of funds required for residential buildings of the one and two-family type. Agriculture The agricultural situation in this district showed further improvement during 1935 with respect to both production and income. Further advances in prices, especially for meat animals, and dairy and poultry products, declining cost of feed and fertilizer, and favorable weather conditions prevailing throughout the greater part of the growing season were in a large measure responsible for the increased farm activity last year. Output of farm products generally was larger in 1935 than the year before and yields per acre in many cases were above the average of the ten years, 1921-30. Production of such leading crops as corn, wheat, oats, hay and tobacco registered fairly large increases over 1934, the only important field crop to show a decline being white potatoes. The acreage of truck and vegetable crops harvested last year also increased and yields of orchard fruits were substantially larger than in 1934. Marketings of virtually all important livestock products, except butter, increased sharply during 1935; in the case of dressed poultry, receipts at four principal markets were more than four times as large as the year before. Cold storage holdings of poultry 18 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia and cheese at the end of December registered marked decreases as compared with a year earlier, those of poultry being the smallest for that period in the past ten years. Despite larger than seasonal decreases during the last half of 1935, stocks of butter and eggs were considerably larger at the end of 1935 than at the same time in 1934. The number of workers available for hire on farms in this section decreased steadily during 1935, reflecting to some extent a further improvement in industrial conditions. Demand for farm labor last year increased more sharply from early spring to midsummer and was maintained at a much higher level throughout the harvest season than was the case in 1934, while the seasonal decline from fall to mid-winter was somewhat less pronounced than the year before. Barring minor fluctuations, largely seasonal in nature, the trend of farm wage rates has continued steadily upward during the past three years. On January 1, 1936 average monthly wages without board for agricultural workers were about 4 per cent above the level of a year earlier and were the highest for that period since 1932. Wholesale prices of farm products in this district as in the country in 1935 reached the highest levels since 1930 and exceeded the average for the five years 1910-1914, which was selected as a basis for comparison. The recent trend of prices for all agricultural commodities combined is indicated by the following figures: F a r m prices of agricultural commodities (Index:1910-1914 = 100) United States Pennsylvania New Jersey. . 1931 1932 1933 1934 1935 87 65 75 88 70 90 94 109 108 104 —. 114 80 109 us11 Sources: United States Department of Agriculture and Federal-State Crop Reporting Service. * 11 months. According to data compiled by the Bureau of Agricultural Economics, wholesale prices of farm products have risen more sharply during the past four years than have prices of commodities generally purchased by farmers. As a result, the disparity between these two price series, which increased rapidly from 1929 to 1932 and became most pronounced in the latter year, has narrowed considerably, the ratio of prices received to prices paid being 86 per cent in 1935, compared with only 61 per cent four years earlier. 19 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia Cash income of farmers in this district as a whole showed a further substantial increase in 1935. Preliminary estimates made from the farm value of crops and marketings of livestock and livestock products indicate that farm income was nearly 16 per cent larger than in 1934. The estimated value of last year's crops was slightly smaller than the year before, chiefly because of lower prices prevailing for fruits and vegetables, while receipts from the sale of livestock and livestock products, particularly milk, poultry and eggs, increased sharply and were the largest in five years. These estimates do not include rental and benefit payments made to farmers who co-operated with the Agricultural Adjustment Administration's program of crop curtailment. Complete returns showing income so received are not yet available, but it has been estimated that Pennsylvania farmers were paid approximately $1,406,000 in the first nine months last year, compared with $360,000 in the same period of 1934. The trend of cash income for the past twelve years is shown in the following table: Estimated cash income from farm production Philadelphia Federal Reserve District (000's omitted) 1924 1925. 1926. 1927. 1928. 1929. 1930. 1931. 1932. 1933#. 1934#. 1935#< Crops Livestock products Total $116,536 133,473 114,277 111,683 99,301 107,690 91,355 70,672 54,579 72,685 73,249 69,294 $126,312 134,627 141,945 142,238 152,410 176,707 161.904 128J305 100,344 99,338 119,122 152,119 $242,848 268,100 256,222 253,921 251,711 284,397 253,259 198,977 154,923 172,023 192,371 221,413 Source: United States Department of Agriculture. # Exclusive of benefit payments. * Preliminary estimate based on farm value of crops and sales of such livestock products as eggs, poultry, milk, butter and cheese. Electric power Output and consumption of electricity in this district have continued to expand since the low levels of 19321933 and by the end of 1935 our seasonally adjusted indexes were the highest shown for several years. Production and sales of electrical energy were approximately 5 per cent larger in 1935 than in 1934 and substantially greater than in the previous two years. This gain reflects largely an improvement in general economic conditions as indicated by increased sales of electricity for lighting and power purposes. Detailed comparisons follow: 20 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia Electric power Philadelphia Federal Reserve District 1935 daily Number average of systems (kwh.OOO's omitted) 1930 1,892* Per cent change— 1935 compared with 1931 1932 1933 1934 + 5 + 2 + 1 + 0 + 0 Rated generator capacity. 8 Output: Hydro-electric Steam. . Purchased 4 7 7 4,391 11,078 1,666 +39 - 0 -10 +51 + 2 -32 + 9 +24 -14 - 6 +30 -24 +14 + 8 -24 8 17,135 + 6 + 6 + 15 + 11 + 5 10 324 -15 -20 -19 - 2 + 0 10 9 9 3,953 2,028 1,535 +30 +21 +22 +21 +21 +20 +20 + 17 + 9 + 7 +10 10 4,277 +25 +17 + 18 +18 + 9 + 1 + 1 + 2 + 1 +24 +20 +12 +16 + 7 + 7 +20 -29 +15 -30 + 7 -27 + 6 + 15 +12 + 5 Total output Sales of electricity: For lighting Municipal Residential and commercial Residential Commercial Total For power Municipal Street cars and railroads Industries 7 296 + 1 10 10 2,152 ll,016t + 7 + 2 Total All other sales 10 10 10,929 860 +11 + 7 + 3 + 7 - 32 -35 10 16,066 + 5 Total sales for all purposes * Kilowatts. t Computed on a basis of working days; calendar days were used for other items. The number of workers employed in twelves branches of industry, trade and service combined showed little change from 1934 to 1935 but exceeded the low of 1932 by about 8 per cent Variations in individual groups, of course, were noticeable, as indicated by the index numbers in the accompanying table. The amount of compensation paid out during the year increased from 118 in 1934 to 126 per cent of the 1932 average and was almost 30 per cent larger than in 1933. Most of the groups shared in this gain, indicating expansion in working time. The extent of general unemployment during 1935 is partly indicated by the next table showing the average number of persons on relief and the amount spent for relief in various forms such as General employment, unemployment and relief 21 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia direct and work relief. Total expenditures in Pennsylvania during the year increased greatly as compared with the annual total expended in the preceding two years. Index of general employment and Payrolls ]Employment pay-rolls—Pennsylvania. (1932 average = 100; indexes are annual averages.) 1932 1933 1934 1935 1932 1933 1934 General index (weighted)* Manufacturing Anthracite Bituminous coal mining Quarrying and non-metallic mining Crude petroleum producing Public utilities Retail trade Wholesale trade Hotels Laundries Dyeing and cleaning 100 100 100 100 100 100 100 100 100 100 100 100 99 105 83 99 93 139 92 101 98 94 93 99 108 116 95 121 105 183 90 109 103 106 94 99 108 121 86 120 97 193 89 110 106 104 95 94 100 100 100 100 100 100 100 100 100 100 100 100 97 108 85 100 94 122 86 95 91 82 85 90 118 138 104 154 124 163 88 106 96 100 92 103 126 155 89 161 128 170 91 108 100 103 95 101 * Includes building and construction. Average number of persons on relief during month Unemployment relief Pennsylvania 1,346,038 1932—December Expenditures for relief* $ 5,509,183 1933—Total.... 81,358,243 1934—Total. 126,032,704 1,678,377 1,728,286 1,727,192 1,738,307 1,691,316 1,649,386 1,587,664 1,606,633* 1,625,304 1,517,085 1,271,883 865,843 1935—January... February.. March. . . . April May June July August September. October. . . November. December. 20,067,505 19,017,633 17,166,964 18,458,726 17,855,486 15,325,332 16,205,676 14,757,416* 13,985,552 14,262,859 10,870,362 8,258,617 $186,232,128 Total 1935, * Work relief was discontinued in August 1935 so that figures for subsequent months show expenditures only for direct relief and special programs. Note: Figures do not include administrative expenses which in the first ten months of 1935 approximated 8 per cent of the total expenditure. Source: Pennsylvania Emergency Relief Board. 22 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia Distribution, trade, service Shipments of commodities affecting this district showed additional increases during 1935. Following a steady decline between 1929 and 1932, freight car loadings turned gradually upward, reaching in the last quarter of the year the highest level since 19311932. Deliveries of goods by motor truck also showed further increases as compared with the previous three years. The movement of freight by water for that portion of the Delaware River which extends from Trenton to the sea during 1935 registered continued gains in the value of goods coming in and going out of this district. Foreign trade Port of Philadelphia (000's omitted) 1930 1931 1932. . . 1933. . 1934 1935 Exports, including re-exports General imports Total $101,830 74,302 39,624 47,848 54,595 61,755 $165,928 115,296 79,113 91,012 98,398* 119,257* $267,758 189,598 118,737 138,860 152,993 181,012 * Imports for consumption comprise all commodities which immediately entered the country upon arrival plus withdrawals from bonded warehouses for consumption. Figures prior to 1934 cover general imports including all commodities entered for immediate consumption plus those entered for storage in bonded customs warehouses. Source: U. S. Department of Commerce, Bureau of Foreign and Domestic Commerce. The value of wholesale trade sales by eight important lines combined proportionately showed an additional increase of 3 per cent, continuing the upward trend since early 1933. A part of this gain reflects further advances in prices, particularly for groceries, hardware and paper. The value of inventories during the year averaged less than in the previous year but at the end of 1935 it was about 3 per cent larger than a year before. The rate of stock turnover increased 3 per cent as compared with 1934. The ratio of collections to outstanding balances also showed a slight gain during the year and continued higher than in the preceding four years. Dollar sales of merchandise at retail establishments, as measured by reports from representative department, apparel, shoe and credit stores in this district, were 6 per cent larger than in 1934 and substantially greater than in 1932 and 1933. The seasonally adjusted index of retail trade sales in December was 74 per cent of the 1923-25 average as compared with 67 a year ago, 61 two years ago and a low of 56 in 1932. Despite irregular fluctuations, 23 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia DISTRIBUTION PHILADELPHIA FEDERAL RESERVE DISTRICT RETAIL TRADE 923 25»VG =100 PERCENT ADJ USTED TOR SEASONAL VARIATION SALES 75 1 >» STOCKS A """%l NrV 50 25 WHOLESALE TRADE 125 STOCC»s 100 SALES • 75 50 25 FREIGHT CAR LOADINGS SALES OF NEW PASSENGER AUTOMOBILES 1929 1930 1931 1932 24 1933 1934 1935 1936 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia Distribution Philadelphia Federal Reserve District Freight car loadings: Total Merchandise and misc. (64.9% of total) Coal (23.57O of total) Wholesale trade: Sales Stocks Rate of stock turnover* Ratio of collections to outstandings* Retail trade: Sales Stocks Rate of stock turnover* Ratio of collections to outstandings* Registration of new passenger automobiles Gasoline consumption (1928 = 100) Life insurance sales Index number (annual average), 1923-25 = 1929 1930 1931 1932 1933 1934 106 90 71 52 55 57 59 112 92 96 79 76 66 56 54 55 58 57 64 59 64 98 102 85 92 73 79 5.56 59 66 5.18 63 59 5.62 75 67 5.57 77 66 5.71 61 67 64 57 59 69 68 100 92 3.98 91 86 4.00 80 76 4.06 61 64 3.77 58 57 3.84 65 62 4.04 68 65 4.29 30 29 28 26 26 28 29 131 120 146 99 133 145 80 150 128 51 147 106 62 148 95 73 158 103 99 161 104 * Actual ratios, not index numbers. the trend of retail trade during the past three years has been gradually upward, following a sharp decline between 1929 and 1932-1933. Inventories at retail establishments in the aggregate averaged slightly higher in 1935 than in 1934 and at the end of the year the value was about 5 per cent larger. Retail stocks of merchandise turned about 4.3 times during 1935 and this ratio was the highest in several years. Settlements of accounts by customers have risen steadily since 1932 and the average ratio of collections to receivables in 1935 was 4 per cent higher than a year earlier and substantially higher than in the previous three years. Estimates of retail and wholesale trade sales Philadelphia Federal Reserve District $3,092,000,000 2,755,000,000 2,378,000,000 1,725,000,000 1,591,000,000 1,766,000,000 1,865,000,000 1929 1930 1931 1932 1933 1934 1935 * Preliminary, subject to revision. Wholesale 25 $3,247,000,000 2,705,000,000 2,166,000,000 1,575,000,000 1,609,000,000 1,895,000,000 1,956,000,000 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia The preceding figures are derived from our current indexes which are supplemented by the Census of Distribution of the Department of Commerce. They are only approximations intended to show the trend of sales in absolute rather than relative figures. Sales of new passenger automobiles, as measured by the registration of all new units in this district, increased to the largest volume since 1929. The low level was reached in 1932, as shown by the following table. New passenger automobile registration Philadelphia Federal Reserve District 155,036 1929 159,487 1930 167,835 1931 197,880 1932 166,688 1933 177,915 1934 1935 158,929 1923 1924 1925 1926 1927 1928 210,002 158,816 128,703 82,589 99,037 116,787 The sharp increase during the year reflected in part the fact that production of new models occurred at an earlier date in 1935 than was the case in other years. But the principal contributing factors were general improvement in industrial conditions and income from various sources, and the depreciation from wear and tear on the automobiles in use during the depression years. Reports indicate that stocks of used cars held by dealers at the end of the year showed a considerable increase by comparison with those held on the same date in other years. Sales of ordinary life insurance were virtually in the same volume in 1935 as in 1934, though activity in the third quarter rose at a higher rate than that for the same period in other years. Total sales practically equalled the average in the base years, 1923-1925. Activity of representative commercial hotels, excluding resort Index 1934 - Hotel activity Philadelphia Federal Reserve District 1933 1934 1935 Room occupancy 86 100 106 Revenue, total. . Guest rooms. . Food 82 88 86 64 100 100 100 100 107 106 108 111 Other sources. 26 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia hotels, increased further during 1935 and the level was substantially higher than in 1933. Room occupancy showed an additional gain of 6 per cent and aggregate income from all sources was 7 per cent larger than in 1934. The table gives index numbers reflecting chiefly the movement of business travelers in this district. Banking conditions In this district changes in membership during 1935 were relatively few; additions equaled losses, so that the total of 656 members at the end of the year was the same as at the beginning. The reopening of banks which had been closed during the banking holiday of 1933 was largely completed in 1934. Rapid expansion in deposits at the member banks furnished them with assets for which they could find little desirable outlet in loans to customers. Many millions of securities were purchased, but a substantial part of the funds provided by increasing deposits and loan liquidation served only to increase reserve balances at the Federal Reserve Bank. Borrowings of members from this bank continued at an exceedingly low level. Banking legislation and regulations Outstanding in the field of legislation was the Banking Act of 1935, approved August 23rd. The first section revised existing provisions of law with regard to deposit insurance, placing it upon a permanent basis with a coverage up to $5,000 for each depositor and setting the annual assessment on insured banks at 1/12 of one per cent of the average of total deposits less certain deductions. The second section made several far-reaching changes in the organization of the Federal Reserve System and in credit administration, as indicated below: The Board of Governors of the Federal Reserve System (formerly known as the Federal Reserve Board) is to consist of seven appointed members. This provision is effective February 1, 1936. The open market committee is to consist of the Board of Governors and five representatives of the reserve banks; its decisions will be binding on the reserve banks. (Effective March 1, 1936) The titles of president and first vice president are substituted for those of governor and deputy governor, which heretofore have been applied to the two chief executive officers 27 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia of a reserve bank. They are appointed by the board of directors, with the approval of the Board of Governors of the Federal Reserve System, for terms of five years. (Effective March 1, 1936.) A permanent section 10 (b) is added to the Federal Reserve Act permitting advances by reserve banks to members on their time or demand notes secured "to the satisfaction" of the reserve bank. Maturities may not exceed four months. The interest rate charged is to be not less than y% of one per cent higher than the highest discount rate in effect at the reserve bank. Reserve banks must establish discount rates every fourteen days, or more frequently if required by the Board of Governors. The Board of Governors by vote of four of its members may raise or lower member bank reserve requirements, with present requirements as the minimum and double these as the maximum. National banks may make loans on improved real estate for five years and up to 50% of appraised value, in an amount equal to unimpaired capital and surplus or 60% of time and savings deposits, whichever is the greater. If provision is made for the amortization of 40% of the loan, a loan may be made up to 60% of appraised value and for as long as ten years. Title III of the new Act covered many miscellaneous points on which clarification was desirable. It also changed the method of computing net demand deposits subject to reserve, permitting the deduction of amounts due from banks and cash items from gross demand deposits, and required reserves to be kept against United States deposits. Regulation T, issued by the Board of Governors in 1934 in conformity with its powers over margin requirements under the Securities and Exchange Act, was amended in several respects during 1935 and numerous rulings were made covering specific points. In the latter part of the year brokers and dealers were required to submit monthly reports showing debit and credit balances, in order that the Board might have information to guide it in its supervisory activities. Toward the close of the year five of the regulations of the Board were revised, to take effect January first. They were: "D" —Reserves of member banks; "H"—Membership of state banking 28 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia institutions; "I"—Increase or decrease in capital stock of reserve banks; "P"—Holding company affiliates—voting permits; "Q"— Payment of interest on deposits. A new regulation—"0"—also was issued relating to loans to executive officers of member banks. Federal Reserve Bank There was continued activity during 1935 in the Industrial extension of credit to industry under section 13b, added to the Federal Reserve Act in June 1934, which authorizes reserve banks to assist in making working capital available to industrial and commercial businesses- The amount of such loans approved rose sharply in the year. In the last six months there has been some falling off in the applications. From June 1934 to the end of 1935, 136 applications in the aggregate amount of $22,992,000 were approved by this bank; gratifying cooperation by banking institutions in the district is evidenced by their participation in $16,543,000 or 72 per cent of the total. To date more than 300 field investigations have been made in connection with the applications. Industrial loans Juno 1934 to December 1935 (Participations of other financing institutions included) Applications received—net Under consideration December 31, 1935 Loans and commitments approved by Federal Reserve Bank* . Number Amount 512 6 $36,380,000 660,000 506 $35,720,000 136 $22,992,000 $12,378,000 3,391,000 Actual advances made Repayments . Advances outstanding December 31, 1935 Commitments outstanding December 31, 1935 $8,987,000 1,307,000 * Includes approved applications that subsequently were reduced or withdrawn, or that expired unused. We wish to make due expression of our appreciation of the services of the Industrial Advisory Committee, the members of which have given generously of their time and services to this bank, without compensation. The Committee has met regularly through the year, has considered over 200 applications, and has been of invaluable assistance in passing upon these applications. There were two changes during 29 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia 1935 in its personnel. Benjamin F. Mechling, president of the Atlantic Elevator Company and vice president of the Nice Ball Bearing Works of Philadelphia, and John T. McDade, treasurer of the Art Loom Corporation, Philadelphia, were appointed to fill vacancies caused by the resignations of Charles E. Brinley, president of the American Pulley Company, Philadelphia, and Richard D. Wood, president of the Millville Manufacturing Company of Millville, New Jersey, and Philadelphia, Pennsylvania. Actual industrial advances by this bank, less reEaming payments, increased from 3 ^ to 6% millions during g d contributing to an increase from 172 to 185 assets and 1935> millions in the bank's bill and security holdings. On only a few days were the bank's holdings of bills discounted for member banks in excess of a million dollars and the average for the year was little over half a million, much the same as that for bills bought, which consisted entirely of foreign bills. The increase of 13 millions in earning assets during the year was due mainly to the fact that in June the bank increased its participation in Federal Reserve System holdings of United States securities by 10 millions. BILL AND SECURITY HOLDINGS FEDERAL RESERVE BANK OF PHILADELPHIA (Monthly averages) MILLIONS 250 I I TOTAL 200 150 100 V y 50 — US. SECURITIES — K I 1 BILL HOLDIh GS INDUSTRIAL ADVANCES 0 1932 19 3 3 30 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia RESERVE POSITION FEDERAL RESERVE BANK OF PHILADELPHIA (Monthly averages) PERCENT 70 60 50 MILLIONS $ A A 400 /v CASH RESERVES V 350 7 FEDERAL RESERVE NOTES /r / IN CIRCULATION 300 : \ 250 / TOTAL / / DEPOSITS 150 100 1934 I 93 3 31 ^" A/ L w 200 I / 1 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia The trend of cash reserves continued definitely upward, reaching especially high levels in the late summer and early fall as a result of funds temporarily held in the district in connection with a security refunding operation. Despite a rise in total reserves from 309 to 405 millions in the year, the bank's reserve ratio advanced only from 67.2 to 71.1 per cent owing to substantial expansion in both the Federal reserve note and deposit liabilities. It was only in the last three months of the year that the average ratio exceeded 70 per cent. Unless otherwise indicated, the preceding references have been to changes from December 31, 1934 to December 31, 1935. In the following table averages are given for several of the principal items contained in the statement of the bank: Federal Reserve Bank of Philadelphia (Dollar figures in millions) Daily averages 1932 1933 1934 1935 Bill and security holdings: Bills discounted Bills bought.. Industrial advances United States securities . Other securities $ 73 4 0 $ 45 4 0 $ 10 2 $ 111 2 146 1 167 Total bills and securities $190 $196 $179 $178 252 119 124 224 59.6% 246 121 135 228 60.0% 243 191 205 297 66.3% 244 235 257 345 68.8% Federal reserve note circulation Member bank reserve deposits Total deposits.. Total cash reserves Reserve ratio * * 1 * 4 173 * Less than half a million dollars. Member bank reserves and related factors Following pronounced accumulation during 1934, reserves of member banks in this district continued to increase in 1935, although in somewhat smaller measure. Nor was the expansion in the excess above legal requirements as large, as may be seen in the following table. The change in the method of computing net demand deposits subject to reserves provided for in the Banking Act of 1935 tended to reduce requirements in the case of many banks. On December 31, 1935 reserve balances held at this bank totaled 274 millions, as against 211 millions a year earlier. Analytical figures given in the accompanying table reveal that this rise 32 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia Philadelphia Federal Reserve District (In millions of dollars) Averages of daily figures Dec. 1933 Dec. 1934 Dec. 1935 68 53 128 76 182 84 121 204 266 7 10 54 26 91 33 17 80 124 Reserves actually held by licensed banks Philadelphia banks Country banks All member banks Excess above legal requirements Philadelphia banks Country banks All member banks was due largely to Government disbursements, which showed an even greater excess over local receipts than in 1934. Transactions passing through the Treasurer's account at this bank indicate that larger sums were received in payment for new security issues than were disbursed in the cash redemption of securities and in interest. The net amount so received, however, was much smaller than in 1934, constituting therefore a less substantial offset to large net disbursements for other purposes, including relief. Mint payments for gold, in effect a further item of Government disbursement, also contributed to the funds available to the banks, 1934 changes that—• Member bank reserve deposits and related factors Philadelphia Federal Reserve District Added to Reduced (In millions of dollars) reserves reserves Items increases in which raise reserves Reserve bank credit extended locally Interdistrict commercial payments. . Gold purchases (chiefly by mint).... Treasury operations + 16 +104 Items increases in which reduce reserves Currencv demand "Other deposits" at reserve bank. . . Unexpended capital funds of res. bank - 7 - 15 -22 -36 Totals + Reduced reserves 2 -59 + 2 60 +82 33 Added to reserves + 12 + 140 142 Actual change in member bank reserve deposits 1935 changes that— +25 + 8 1 155 92 +63 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia MEMBER BANK RESERVES AND RELATED FACTORS PHILADELPHIA FEDERAL RESERVE DISTRICT MILLIONS /vi 250 200 MEMBER BANK RESERVE DE.POSITS 150 100 Related factors. Changes cumulated from Jan. 1,1932 MILLIONS CURRENCY DEMAND * * - 100 1932 193 3 * An increase tends to increase member bank reserves and vice versa. * * An increase lends to reduce member bank reserves and vice versa. 34 9 3 4 193 5 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia while the only type of reserve bank credit which tended to raise member bank reserve balances was an increase in industrial advances. Several factors were operative which absorbed a portion of the funds so supplied, tending therefore to restrict the increase in reserves. Chief among these were a 25 million increase in currency demand, a rise of 8 millions in miscellaneous deposits at this bank, and, largest of all, an adverse balance of payments of 59 millions in commercial and financial transactions with other districts. This unfavorable balance doubtless reflected security purchases in other markets by banks of this district and possibly some flow of funds to other sections in payment for commodities and services needed here to carry on projects financed by Government funds. Condition of member banks Continuance of deposit expansion over the greater part of 1935 was the most pronounced feature of member bank reports and doubtless was caused largely by Government disbursements. Despite a drop in balances to the credit of the United States Government and trustees of the Postal Savings System, total deposits increased from 2,382 millions to 2,629 millions, reflecting chiefly a pronounced growth in demand deposits. This figure was the highest for any call date since 1931, compared with 1,977 millions at the low in 1933, and exceeded the 1929 average despite the reduction in the number of banks since that year. A substantial part of the funds accumulated by the banks was used to purchase securities. The increase in securities having the Federal guarantee as to both principal and interest was 86 millions, and in the case of miscellaneous securities was 65 millions. Expansion in these more than compensated for a decline from 505 to 482 millions in direct obligations of the United States Government which was due in part to the retirement of bonds which had been serving as collateral for issues of national bank notes. There was a decline of 8 millions in open market loans, which include purchased paper and loans on securities to brokers and dealers in New York City. Loans made during the year failed to equal repayments and amounts charged off, with the result that loans to customers on the books of the banks declined from 962 to 905 millions. These figures exclude loans to other banks. A decrease of 28 millions in those made on stock and bond collateral, in the face of a sharp rise 35 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia in stock prices and advances in the bond market, suggests that trading in securities was conducted largely within the resources of Licensed member banks Philadelphia Federal Reserve District (000,000's omitted) 1934 Dec. 31 1935 Dec. 31 ASSETS Loans on securities: To brokers and dealers in New York City To brokers and dealers elsewhere To others (except banks) 22 18 306 9 18 278 Total loans on securities to others than bank:Acceptances and commercial paper bought. . Loans on real estate Loans to banks Other loans 346 22 212 6 426 305 27 212 4 397 Total loans United States Government securities Securities fully guaranteed by U. S. Government Other securities $1,012 505 62 606 945 482 148 671 Total loans and investments. Banking house, furniture and fixtures. Other real estate owned Reserve with Federal Reserve Bank. . . Cash in vault Balances with other banks Checks and other cash items Other assets $2,185 88 55 211 42 255 96 34 ,246 88 69 275 47 285 104 30 $2,966 5,144 991 999 93 276 $1,229 1,005 61 312 Total assets. LIABILITIES Deposits: Demand (other than interbank) Time (other than interbank) United States , Interbank (demand and time) Certified and officers' checks, cash letters of credit and travelers' checks, etc Total deposits National bank notes outstanding Bills payable and rediscounts Other liabilities Capital account: Preferred stock Common stock Surplus Undivided profits—net Reserves for contingencies Retirement fund for preferred stock. Total liabilities Number of member banks. 36 23 £2,382 73 2 30 $2,629 0 1 31 31 164 215 41 28 — 37 161 212 48 24 1 2,966 $,144 656 656 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia ALL MEMBER BANKS PHILADELPHIA FEDERAL RESERVE DISTRICT (Call date figures; licensed banks only beginning June 30, 1933) MILLIONS TOTAL LOANS AND 2800 " . INVESTMENTS y •• V* 2600 \ *•/ 2400 / % V \. * i 1 TOTAL DE POSITS \ 2200 \ 2000 • 1800 z \ LOANS j 1600 \ 1400 \ 1200 \ INVE STMENTS > 800 600 BALANCE!> AT RESERVE BANK AND OTH ER DOMESTIC BANKS y 400 \ . y / 200 0 1929 1930 1931 1932 1933 1934 1935 1936 Twenty--first Annual Report, Federal Reserve Bank of Philadelphia the purchasers and that the rising level of prices encouraged some liquidation of borrowings previously incurred. Loans on real estate changed little in the year. Inasmuch as some have been converted into "Other real estate owned" by process of foreclosure and in other instances there doubtless has been an exchange of mortgages for bonds of the Home Owners' Loan Corporation, it is apparent that some new real estate loans were taken on during the year. Bank loans for the purpose of financing commerce and industry probably are to be found for the most part under the heading "Other loans." A decline in these from 426 to 397 millions suggests the lack of an active demand for accommodation from business customers. Improved collections and the more rapid turnover of goods doubtless have helped to bring about some of this decline, but it also seems quite likely that large disbursements of the Treasury may have so improved the cash position of business houses in numerous instances as to enable them to reduce somewhat their borrowings. Records of the earnings and expenses of member banks in this district not yet have been tabulated for the last half of 1935. Figures for the first half showed a net profit of nearly 3 millions after charge-offs and depreciation, the first profit for any half year since 1931 shown in the combined figures for all members. Currency demand Over most of the year seasonal changes in currency demand were quite similar to those in 1934, but the general trend was distinctly upward in contrast with the maintenance of a rather even level in 1934. This was due in part to the fact that industrial payrolls and trade were in greater volume this year. Currency demand does not indicate exactly changes in the amount of money in circulation within the district because of the indeterminate amounts of cash that constantly are passing to and fro over its borders. If totals of all kinds of money in circulation within the district could be ascertained, there is little doubt that they would exceed like figures for 1929, as do the national figures, reflecting partly the fact that some of the money hoarded in the years of banking difficulties has not yet been returned to the banks. The year was marked by the passing of the national bank note as an integral part of our currency. Early in 1935 the Treasury gave notice that 2% Consols of 1930 and 2% Panama Canal loan 38 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia bonds, having the circulation privilege, would be retired in the summer, and by legal limitation the circulation privilege attaching to any bond of the United States bearing interest up to 3%% expired on July 22. Beginning in August the reserve banks, upon request of the Treasury, returned to Washington for retirement any such notes received by them, whether or not in condition for further circulation. No new issues of Federal reserve bank notes were made by this bank during 1935. In March the bank returned over 10 millions of its bank notes to the Federal Reserve Agent. This operation, together with deposits previously made with the Treasury to provide for retirement, completely eliminated the bank's liability for such notes issued to it; any still in the hands of the public are obligations of the Treasury. The replacement of national bank notes and of Federal reserve bank notes accounted for a part of the expansion from 240 to 271 millions during 1935 in Federal reserve notes of this bank in circulation. Replacement also was effected in part by the use of silver certificates, of which 102 millions was received from the Treasury by this bank in 1935 and 71 millions in 1934. Federal reserve note issues and collateral Federal Reserve Bank of Philadelphia (000's omitted) Notes received from comptroller Notes on hand (held by Federal reserve agent) Notes issued to bank (outstanding).. . Collateral securing outstanding notes: Gold certificate fund—Board of Governors. Gold Eligible paper United States Government securities Total collateral held December 31 1933 1934 1935 $394,621 145,440 $394,661 132,340 $397,196 108,570 $249,181 $262,321 $288,626 $ 86,750 83,750 18,930 60,000 $223,000 0 830 40,000 $290,000 0 343 0 $249,430 $263,830 $290,343 The privilege of pledging direct obligations of the United States as collateral for Federal reserve notes, subject to the authorization of the Board of Governors, as originally granted in the Glass-Steagall Act of February 27, 1932, was to terminate March 3, 1933, but was extended to March 3, 1934. By amendment in 1934 it was continued for another year with the proviso that the President might prolong it for a further period of two 39 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia years. In a proclamation, dated February 14, 1935, he extended the privilege to March 3, 1937. Discount and interest rates Open market money rates at New York, already low at the beginning of 1935, in some cases were reduced further during the first half of the year. The rate for ninety-day bankers' bills was unchanged at 1/8 of one per cent per annum and prime commercial paper dropped only from %-l to % of one per cent, but time and call money were reduced from %-l and 1 per cent, respectively, to ^4 of one per cent. Toward the close of October, however, advances were made in time money to 1 per cent and in call money to % of one per cent. The average of rates on prime commercial loans to customers, as reported by large Philadelphia banks, declined somewhat during the year. On January 17 this bank reduced its rate for advances to and rediscounts for members under sections 13 and 13a of the Federal Reserve Act from 2 ^ to 2 per cent, a new low point. Section 10 (b) as contained in the Act at the opening of the year did not continue in effect after March third; in November a rate of 2V-> per cent was established for advances under Section 10 (b) as revised by the Banking Act of 1935. Rates on December 31 for other classes of paper are given below: Discounts for individuals, partnerships and corporations: Under third paragraph of Sec. 13 of Federal Reserve Act (paper which would be eligible for rediscount if presented by a member b a n k ) . . . . Secured by direct obligations of the United States, under last paragraph of Sec. 13 of Federal Reserve Act Rates on industrial advances: Advances made direct to industrial or commercial organizations Advances made to financing institutions— On portion for which institution is obligated On remaining portion Commitments to make advances 6% 4% 4-6% f 1% above \ established [discount rate Jij-2% * Same as to borrower; minimum of 4%. Effective January 31, 1935 the rate of interest which member banks might pay on time or savings deposits was reduced from 3 to 2^4 per cent by regulation of the Board of Governors of the Federal Reserve System. Late in the year the Board established the following maxima, on the basis of quarterly compounding, to take effect January 1, 1936; these interest rates apply unless nonterminable contracts entered into prior to certain dates provide otherwise: 40 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia Savings deposits 2}/2% Postal Savings deposits classified as time deposits 2J^ " Time deposits (other than Postal Savings) having maturities of or requiring written notice of— Six months or more 2^ " Ninety days to six months 2 Thirty days to ninety days 1 " On October 4, 1935 the Banking Advisory Board of New Jersey adopted a regulation, which was approved by the Commissioner of Banking and Insurance, providing that the maximum rate payable on time or savings deposits should not exceed 2 per cent, compounded quarterly. This regulation is to be effective January 1, 1936 and applies unless contracts entered into before October 4, 1935 provide otherwise and cannot be terminated by the bank. The maximum set must be observed by national banks in that state by virtue of Section 24 of the Federal Reserve Act. Membership At the beginning of 1935 member banks in this district numbered 656, of which 595 were national and 61 state institutions. The end of the year shows the same total, but the distribution is somewhat different—593 national and 63 state bank members. This change in composition, in the case of banks under national charter, reflects one conversion of a nonmember state bank into a national bank, a consolidation, the absorption of one bank by another, and one suspension caused primarily by a defalcation. This suspension was followed promptly by the setting up of a new national bank—which however does not have the status of a member—by the Federal Deposit Insurance Corporation so that guaranteed deposits up to $5,000 each might be made available quickly to depositors. One state bank member withdrew from the System, but this was more than balanced by the entry of three nonmembers into membership. In June member banks held two-thirds of the deposits of all banks in the district. Fiduciary powers During 1935 the number of national banks in this district having fiduciary powers decreased from 257 to 256. Three banks were granted full powers, one of which previously had exercised them under restrictions, and another bank was given the privilege of exercising full powers with restrictions. Four banks were re 41 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia moved from the list, three as a result of voluntary surrender and one owing to suspension. National banks having fiduciary powers Philadelphia Federal Reserve District Number of banks having Totals Full powers December 31: 1930 1931 1932. 1933 1934 1935 Partial powers 268 264 262 252 2401 241 f 29 25 23 20 17 15 297 289 285 272* 257 256 * Excludes 7 non-licensed banks which, at the end of 1933, were being liquidated by conservators. | Includes two banks granted powers with restrictions. Departmental operations Although the volume of discounts for member banks was at a low ebb during 1935, there was a substantial expansion in the volume of work of the discount and credit departments incident to the handling of industrial loans. Increased activity also was reported in the transit and currency departments, while the volume of mail and wire transfers of funds and of non-cash collections diminished. Departmental operations Federal Reserve Bank of Philadelphia (000's omitted) Number of pieces or transactions handled: Notes and bills discounted— Pieces (including transactions under Sec. 13b) Items received as collateral Notes (currency) counted Coins counted Ordinary checks handled (including return items) U. S. Government checks handled Items payable at a future date (collection items)— Coupons of United States and its agencies All other Transfers of funds* U. S. Government direct obligations—issues, redemptions and exchanges by fiscal agency department 1935 13 39 177,718 264,018 61,524 4,915 2 75 185,017 271,050 72,050 3,108 1,482 373 83 1,319 352 64 292 430 * Includes wire and mail transfers, but does not include group clearings transfers which in 1935 numbered 490,000. Owing chiefly to exchange operations for the Treasury, the 42 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia number of United States Government securities issued, redeemed or exchanged by this bank as fiscal agent rose from 292,000 in 1934 to 430,000 in 1935, the greatest annual total in more than five years. These figures do not include a substantial volume of securities handled for such Government agencies as the Home Owners Loan Corporation, the Federal Farm Mortgage Corporation and the Farm Credit Administration. The vault department reports a rise in the average amount of securities held in custody for member banks from $396,000,000 to $503,000,000 and in cash and securities held for our own account, the Treasury, and others from $969,000,000 to $1,084,000,000. Purchases and sales handled by the securities department for others rose from $280,000,000 to $456,000,000, and the number of transactions increased from 24,200 to 30,400. Personnel and building Board of directors Name Class Residence Group 1 Joseph Wayne, Jr., President, Philadelphia National Bank, Philadelphia, Pa. Group 2 George W. Reily, President, A Harrisburg National Bank, Harrisburg, Pa. Group 3 J. B. Henning, President Wyoming National Bank, Tunkhannock, Pa. Philadelphia, Pa. Dec. 31, 1935 Harrisburg, Pa. Dec. 31, 1936 Tunkhannock, Pa. Dec. 31, 1937 Ardmore, Pa. f Croup 1 C. Frederick C. Stout, Member, John R. Evans & Company, Philadelphia, Pa. Croup 2 Arthur W. Sewall, President, Philadelphia, Pa, General Asphalt Company, B Philadelphia, Pa. Group 3 J. Carl De La Cour, Vice President, Riverton, N. J. Wm. S. Scull Company, Camden, N. J. y. Richard L. Austin, Chairman of the Board Harry L. Cannon J. David Stern Term expires Dec. 31, 1937 Dec. 31, 1935 Dec. 31, 1936 Philadelphia, Pa. Dec. 31, 1935 Bridgeville, Del. Haddonfield, N. J. Dec. 31, 1937 Dec. 31, 1936 Almost with the advent of the year, January 8th, much sorrow and great loss came to the bank in the sudden death of Alba B. Johnson, who had served the institution as a director from its beginning, first as a class B director and later as class C, succeeding 43 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia Charles C. Harrison, deceased. Mr. Johnson had been actively connected with one of the largest and most successful manufacturing concerns in the country, and after retiring from it he maintained close relations with business and philanthropic interests that gave him wide contacts with affairs. In October J. David Stern, newspaper publisher, was appointed by the Board of Governors of the Federal Reserve System to fill Mr. Johnson's unexpired term. At the regular elections held in the fall Joseph Wayne, Jr., representing group 1 banks as a class A director, and Arthur W. Sewall, representing group 2 banks as a class B director, were unanimously reelected by their respective groups for terms of three years from January 1, 1936. By appointment of the Board of Governors of the Federal Reserve System Richard L. Austin served as chairman of the board and Federal reserve agent during 1935, and Arthur E. Post and Ernest C. Hill as assistant Federal reserve agents. The following officers were reappointed by the bank's board of directors at its first meeting of the year: governor—George W. Norris; deputy governors—William H. Hutt, John S. Sinclair; deputy governor, cashier and secretary—C. A. Mcllhenny; assistant deputy governors—W. J. Davis, L. E. Donaldson; assistant cashiers—J. M. Toy, S. R. Earl, G. K. Morris; comptroller—W. G. McCreedy. The only change made during the year was the appointment of Mr. McCreedy as an assistant deputy governor in the spring, whereupon he relinquished the office of comptroller, which has not been filled. The number of employees, exclusive of officers, rose from 866 to 900 during 1935. Work progressed rapidly on the bank building. By the end of the year construction had been largely completed. Banking and business information Our Department of Research and Statistics has continued to provide currently economic data on business and banking conditions in this district for the administrative use of this bank, the Board of Governors of the Federal Reserve System, member banks, and the business community in general. The activity of this unit has been broadened and intensified in order to meet the growing demand for dependable statistics showing conditions which prevail not only in the major fields of industry, service and banking but also in the individual lines of business activity. The demand for this type of information by geographic divisions has been especi- 44 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia ally urgent on the ground that in many instances it affords means for comparisons in a more specific way than do the combined figures for large industrial areas in different parts of the country. The scope of this work was described in some detail in the previous annual reports of this bank. But it may be reiterated here that the amicable relationship and trust achieved over a period of years between this bank and business in a spirit of good will and co-operation has been a source of real satisfaction to all those who are responsible for this type of economic and business service. The appreciation on our part is all the greater because individual establishments have continued giving us their private statistical and other information on a purely voluntary basis. We are equally thankful to all those agencies which have assisted us in making our information more complete and effective, particularly to the Division of Research and Statistics of the Board of Governors of the Federal Reserve System, the Bureau of the Census, the Bureau of Labor Statistics, Central Statistical Board, and the Department of Industrial Research of the Wharton School of Finance and Commerce, University of Pennsylvania. The cooperation of these and many other agencies as well as the ready assistance given us by member banks in this district have made our task easier and the results of our work more useful. Our library has continued to be an important part of this bank and its service. It has accumulated valuable reference material consisting of official and private documents and many standard books on money, banking and credit as well as on general economic subjects. 45 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia Indexes of business conditions Philadelphia Federal Reserve District Adjusted for seasonal variation (1923-1925 average - 100) Note: Indexes for earlier years are given in previous annual reports. Coal mining New pasBuild- Freight Indus- FacWhole- Retail senger Crude ing con- car trial autooil tract sale tory produc- output sales mobile Anthra- Bitumi- output awards load- sales lion regiscite nous (value) ings trations 1934 Jan. . . Feb... March. April. . M a y .. June.. July... Aug.. . Sept,. . Oct.... Nov.. . Dec... 66 70 74 73 73 72 69 68 65 67 69 74 61 66 68 70 70 70 66 67 62 65 66 71 82 89 109 73 76 68 63 50 62 53 64 72 56 62 77 68 67 66 61 57 56 56 56 58 345 314 334 343 358 365 361 357 362 358 374 385 43 36 33 31 30 30 25 25 25 32 36 38 59 61 63 60 61 63 57 52 52 51 53 57 73 73 74 76 83 81 80 76 72 75 71 72 55 55 71 65 70 69 62 62 69 66 61 67 38 54 60 75 71 79 89 81 69 71 64 93 1935 Jan.... Feb.... March. April. . M a y .. June .. July . . Aug. .. Sept... Oct.... Nov.. . Dec. .. 73 74 74 77 75 74 74 74 77 77 77 80 69 71 72 74 72 69 72 74 75 76 76 78 76 67 54 69 71 97 62 36 65 48 48 71 60 69 80 52 62 79 54 56 49 61 61 65 401 401 400 396 386 372 375 365 377 390 406 415 32 26 23 17 17 18 23 28 34 35 39 53 60 60 64 57 57 63 53 56 57 60 61 65 77 77 78 81 81 79 76 74 78 76 74 79 56 59 67 70 66 71 66 67 79 70 70 74 83 98 98 94 85 92 100 90 71 66 143 245 Seasonal factors (Used in adjusting the actual indexes for seasonal changes. equals 100) Jan... . Feb. .. March. April. . May... June... July.. . Aug.. . Sept,. . Oct.... Nov.. . Dec. .. 100 102 100 98 99 98 96 100 102 106 102 97 99 102 101 97 98 100 96 100 102 105 103 97 107 107 83 104 100 87 82 100 100 129 104 97 114 109 102 91 90 88 88 94 102 107 110 105 96 100 102 103 104 104 103 103 100 100 97 94 46 78 81 93 118 120 114 103 101 98 102 100 92 92 97 95 97 102 99 103 104 111 109 101 90 The average for the year 88 92 94 93 94 96 93 95 114 114 114 113 82 82 91 107 101 98 73 78 90 114 120 164 54 74 112 151 144 140 113 110 96 82 70 54 Twenty-first Annual Report, Federal Reserve Bank of Philadelphia Indexes of business conditions Philadelphia Federal Reserve District Without adjustment for seasonal variation (1923-1925 average = 100) Coal mining BuildIndus- FacWholeCrude ing con- Freight Retail car trial sale oil tory tract loadsales produc- output Anthra- Bitumi- output awards sales (value) ings nous cite tion New pas. senger automobile registrations Annual averages 1923. . 1924. . 1925. . 1926. . 1927. . 1928. . 1929. . 1930 . . 1931. . 1932. . 1933. . 1934. . 1935. . 104 96 100 108 104 102 110 98 79 63 66 70 75 102 95 103 108 104 102 111 97 77 61 64 67 73 115 109 76 104 99 93 91 86 74 62 61 71 63 117 89 94 105 91 90 98 85 67 51 54 62 62 90 93 116 143 165 175 230 276 262 295 302 357 392 78 106 116 135 160 164 136 108 65 34 22 32 28 104 96 100 106 101 102 106 90 71 52 55 57 59 104 99 97 98 94 94 98 85 73 59 63 75 77 99 99 102 106 102 101 100 91 80 61 58 65 68 97 99 104 123 104 111 131 99 80 51 62 73 99 1934 Jan... . Feb.... March. April. . May... June... July... Aug. .. Sept.. . Oct... . Nov.. . Dec. . . 66 72 73 72 72 71 66 68 67 71 70 71 61 67 69 68 69 69 63 67 64 68 68 68 89 95 89 76 76 60 52 50 62 68 65 70 64 67 79 62 60 58 54 54 57 60 62 61 332 314 340 353 372 380 372 368 362 358 363 362 34 29 30 36 36 34 26 25 24 33 36 35 55 59 61 58 62 63 58 54 57 55 54 52 64 67 69 70 78 77 75 71 82 85 80 81 45 45 70 65 70 67 45 49 62 75 74 110 20 40 67 113 103 111 101 89 66 58 45 50 1935 Jan... . Feb.... March. April. . May... June... July... Aug.... Sept.. . Oct... . Nov.. . Dec. .. 73 75 74 75 74 73 70 73 78 81 79 78 68 72 73 72 71 69 69 73 77 80 78 76 82 72 45 72 71 85 51 36 65 62 50 69 69 75 82 47 56 69 48 53 50 65 67 69 385 401 408 408 401 387 386 376 377 390 394 390 25 21 21 20 20 20 24 28 34 36 39 49 55 58 61 55 58 62 55 58 63 65 62 59 68 70 72 75 76 75 71 70 88 87 84 88 45 48 61 74 67 69 48 52 71 79 84 121 45 72 110 142 123 128 113 99 68 54 100 132 47 Tiventy-first Annual Report, Federal Reserve Bank of Philadelphia Indexes of factory employment, payrolls and employee-hours in Pennsylvania Without adjustment for seasonal variation Employment (1923-1925 average = 100) Year Jan. Feb. Mar. Apr. May June July Aug. Sept, Oct. Nov. Dec. Avg. 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 105 101 97 99 98 92 94 96 78 68 59 68 74 107 102 99 101 98 94 97 96 79 68 61 72 76 108 102 99 100 99 94 97 96 79 67 58 75 77 107 100 98 99 97 91 98 95 79 65 58 76 76 108 97 98 98 96 91 98 93 77 62 61 75 75 109 93 97 98 96 92 99 91 74 61 65 76 75 108 90 95 97 94 91 99 86 71 58 67 74 75 107 90 96 98 94 93 100 85 72 59 72 74 77 Payrolls 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 99 102 100 104 98 100 101 104 100 103 90 96 95 102 96 98 67 69 49 49 34 35 47 53 58 62 107 92 98 98 68 54 41 49 57 107 94 98 101 94 94 102 85 72 65 75 75 79 106 94 98 101 94 95 100 84 71 64 74 74 79 103 96 99 100 93 94 98 81 70 62 71 75 79 107 96 98 99 96 93 98 89 75 63 66 74 77 (1923-1925 average = 100) 107 105 102 106 104 96 103 98 70 48 33 58 64 106 102 99 103 101 89 104 96 70 44 34 59 63 113 97 99 101 98 92 105 92 67 40 38 63 62 113 89 96 101 98 92 104 87 62 38 43 62 60 106 82 93 97 91 86 99 78 57 34 46 55 58 107 86 95 99 95 93 105 79 58 35 54 57 64 111 101 107 100 70 54 42 55 61 107 89 94 104 92 93 103 79 56 38 54 53 65 111 94 102 108 95 98 107 80 56 41 56 57 70 106 93 99 105 94 97 103 74 52 40 53 57 68 105 100 103 106 94 97 98 71 53 38 51 58 68 107 95 98 103 97 93 102 86 61 41 44 57 64 (1927-1928 average == 100) Employee-hours 1927 1928 1929 1930 1931 1932 1933 1934 1935 107 92 96 100 95 94 101 86 72 63 75 73 78 112 101 108 99 70 53 39 59 63 109 94 110 99 72 49 41 60 62 107 98 109 96 67 45 47 65 62 97 90 106 82 57 38 61 56 58 103 96 109 90 62 43 56 65 60 48 100 98 108 82 58 40 64 58 64 98 96 106 82 56 44 59 52 65 98 101 109 81 58 49 59 56 71 97 100 105 76 55 47 55 55 69 97 100 99 72 56 45 54 57 69 103 97 106 88 62 47 51 57 64
@FedFRASER