The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
//'} /Uj THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT APRIL i, 1932. By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Financial Conditions in the United States Volume of industrial production and factory employment increased from January to February by an amount smaller than is usual at this season. Improvement in the banking situation during February and the first three weeks of March was reflected in a decline in bank suspensions and a re turn flow of currency from the public to the banks. Production and employment. Output of industrial products increased less than seasonally in February and the Board’s index, which makes allowance for the usual seasonal variations, de clined from 71 per cent of the 1923 1925 average to 70 per cent. Activity in the steel industry during February and the first three weeks of March showed little change from the January rate, although ordinarily substantial increases are reported at this time of year. Automobile production con tinued in small volume, showing none of the usual seasonal expansion, and the number of cars produced in the WHOLESALE PRICES three month period ending in February was about 35 per cent less than in the corresponding period a year ago. In the lumber industry, output declined further, contrary to seasonal ten dency. Activity at cotton mills and shoe factories increased by more than the seasonal amount and was at about the same level as in the corresponding month last year. Volume of employment at factories increased in February by somewhat less than the usual seasonal amount. In the iron and steel, automobile and machinery industries the number em ployed showed an increase smaller than is usual in this month, and at lumber mills a continued decline in employ ment was reported. At establishments producing fabrics, wearing apparel and shoes, volume of employment in creased by more than the seasonal amount. Daily average value of total build ing contracts awarded, as reported by the F. W. Dodge Corporation, showed MONEY RATES IN NEW YORK little change in February and the first half of March, and for the period be tween the first of January and the middle of March the value of con tracts was 65 per cent less than a year ago, reflecting continued declines in residential building as well as in other types of construction; part of the de crease in the value of awards reflects reductions in building costs. Car loadings of mer chandise and of miscellaneous freight showed none of the usual seasonal Distribution. FACTORY EMPLOYMENT AND PAYROLLS PERCENT PER CENT A, A.-,/ i v‘ \ Vv C mploymei# s Payrolls- 'v 1927 1928 1929 1930 1931 Indexes of factory employment and payrolls, without adjustment for seasonal variation. (1923-1925 average = 100.) RESERVE BANK CREDIT US.S«it Index of United States Bureau of Labor Statis tics (1926 = 100). Monthly rates in the open market in New York: commercial paper rate on 4 to 6 month paper. Acceptance rate on 90-day bankers* acceptances. Latest figures are averages of first 22 days in March. Monthly averages of daily figures for 12 fed eral reserve banks. Latest figures are averages of first 22 days in March. Page One increase in February, while sales at department stores remained un changed, as is usual at this season. Wholesale prices. Wholesale commod ity prices, as measured by the index of the Bureau of Labor Statistics, de clined further from 67 per cent of the 1926 average for January to 66 per cent for February. Between the first week of February and the third week of March, there were increases in the prices of cotton, livestock, and meats, while prices of grains, non-ferrous metals and imported raw materials in cluding silk, sugar, and rubber de clined considerably. Bank credit. In the banking situation the important developments in Feb ruary and the first half of March were a considerable reduction in the num ber of bank suspensions and a return flow of currency from the public to the banks. The country’s stock of monetary gold declined in February but increased somewhat in the first half of March. Member bank reserve balances, after decreasing almost con tinuously since last summer, showed a slight increase for the. first two weeks in March. Purchases of United States Government obligations by the fed eral reserve banks beginning in March were accompanied by a considerable decline in member bank indebtedness to the reserve banks. Loans and investments of member banks in leading cities continued to decline until the middle of March when there was a substantial increase, ow ing largely to the banks’ purchases of United States Government securities, issued on March 15. Demand and time deposits of these banks decreased further during February but showed little change in the first half of March. Open market rates on acceptances and commercial paper declined during February and the first half of March. During this period yields on Treasury and other high grade bonds decreased to the lowest point since early Decem ber, but after the middle of the month yields on high grade corporate bonds increased somewhat. Business and Financial Conditions in the Philadelphia Federal Reserve District While there has been some slight improvement in business sentiment in the last month, general business activ ity has declined instead of increasing as it should at this time. Production of manufactures in February de creased contrary to the usual seasonal tendency, and there was little evi dence of upturn in early March. The gain in the output of coal was larger than usual for February, while activ ity in building trades decreased. Rer tail and wholesale trade held up fairly well in February, but in March sales were affected by bad weather condi tions. Business in all lines of trade and industry has continued at a much lower level than in many years. Com modity prices have shown no definite signs of strength. Collections have been less satisfactory than a year ago. Commercial failures decreased as usual in February but they were exceedingly large in comparison with other years. Member banks report a further de crease in loans on securities, but net demand and time deposits were steady after months of pronounced declines. There were no bank suspensions in this district during the month, and two banks reopened. The principal fac tor making possible a substantial re duction in borrowings from this bank was a gain in the settlements with other districts which reflected mainly the sale of securities by member banks. Page Two There has been fluences. Compared with a year ago, virtually no improvement in the however, they were smaller; plant holdings of raw materials have de market for manufacturedproducts. While the demand for certain finished clined more noticeably than those of goods shows slight seasonal gains finished commodities. Collections are over the preceding month, total sales less satisfactory than they were last have continued at an exceptionally month. A great majority of reports low level. Unfilled orders for various also indicate that settlements of ac manufactures have declined, except for counts were relatively smaller than a few lines such as thrown silk, shoes, last year. paper, and cigars, which show small Factory employment in February gains. In comparison with other years, current business continues in a showed a seasonal gain of one per cent, while wage payments continued very much reduced volume. Wholesale prices of manufactured at about the same level as in January. products declined a little further in The largest gains in employment of February and weakness was MANUFACTURING AND FREIGHT CAR LOADINGS still apparent in PHILADELPHIA FEDERAL RESERVE DISTRICT March. In com PERCENT parison with a OUTPUT 1 year ago, quota OF MANUFACTURES tions have been 9 per cent lower. The sharpest de clines have oc curred in textile products, house FREIGHT CAR LOADINGS ( ) furnishings, and building material. Numerous in creases were re ported in stocks of finished goods during the month, 1932 1931 1930 1929 probably reflect Source; American Railway Association ing seasonal in Manufacturing. total Pennsylvania factories occurred in Business Indicators transportation equipment, foods and Philadelphia Federal Reserve District tobacco, and leather products. Groups comprising metal, lumber, and chemi Index without Index adjusted for seasonal variation cal products, and paper and printing seasonal adjustment reported smaller working forces than Groups and selected lines in January. All groups except metals Per cc nt chang e from reported increases in payrolls, the larg (Index expressed in per Feb., Jan., Feb., Feb., Jan., Feb., est gains taking place in textiles, foods 2 mo. centage of 1923-1925 1931 1932 1932 1931 1932 1932 Month Year 1932 average taken as 100) and tobacco, and leather and rubber from ago ago 2 mo. products. The decline in wage pay 1931 ments of the metal group was due chiefly to steel works and rolling Productive Activity Manufacturing—total.................... 82.0 69.1 68.2f 81.1 70.2 67.5f - 3.8 -16.8 - 14.3 mills, and electrical apparatus. As M etal products........................... 72.9 48.4 43.5 71.8 50.4 43.1 -14.5 -40 0 - 37.2 these industries are the largest single Textile products......................... 89.3 81.7 80. Bf 82.3 78.9 75.lt - 4.8 - 8.7 - 3.4 industries included in the Pennsyl Transportation equipment.... 63.4 59.0 60.4 63.1 59.8 59.7 - 0.2 - 5.4 - 6.3 Food products............................. 81.1 73.4 71.0t 81.3 75.2 71.81 - 4.5 -11.7 - 7.8 vania factory payroll index, they de Tobacco and products............... 82.9 71.7 70.8 98.2 86.5 83.8 - 3.1 -14.7 - 10.8 Building materials...................... 40.4 30.4 27.8 47.9 37.3 33.5 -10.2 -30.1 - 23.0 pressed the average wage earnings Allied chemical products.......... 103.2 96.6 97.8t 103.8 99.3 98.6t - 0.7 — 5.0 - 4.7 most severely. In comparison with a Leather and products............... 122.7 99.2 114.3t 115.2 95.5 107.5f +12.6 - 6.7 - 5.7 Paper and printing.................... 107.4 91.8 94.5 107.4 91.9 94.5 + 2.8 -12.0 - 12.2 year ago, the number of factory work Electric power............................. 193.5 191.8 193.9 182.5 180.9 182.9 + i.i + 0.2 - 0.3 ers declined 14 per cent and wage Factory employment...................... 80.0 68.5 68.9f earnings were reduced by 28 per cent. Factory output in February declined Factory wage payments................ 68.6 49.2 49.lt 0 2* instead of increasing as is usual for Output of coal............................... 85.5 57.4 60.7 86.9 58.7 61.7 + 5.1 -29.0 - 32.0 Anthracite........................... that month. Our preliminary index, 87.0 59.1 61.8 89.7 61.6 63.7 + 3.4 -29.0 - 31.6 Bituminous................................... 76.6 47.2 53.8 70.3 41.4 49.4 +19.3 -29.7 - 35.1 which makes allowance for the num and Real Estate ber of working days and for changes Building Total contract awards %................ 59.0 29.8 30.7 72.8 38.7 37.9 - 2.1 -47.9 - 48.0 in seasonal activity, stood at 67.5 per Residential contract awards!... . 32.1 20.5 19.8 44.6 25.6 27.5 + 7.4 -38.3 - 38.4 Permits for building....................... 14.1 7.5 9.1 18.3 13.2 11.8 -10.6 -35.5 - 30.6 cent of the 1923-25 average, showing Real estate deeds (Philadelphia) recorded........................................ 65.8 72.4 58.5 65.8 77.0 58.5 -24.0 -11.1 - 0.7 a drop of 4 per cent from January as Mortgages recorded (Phila.).... 56.6 77.1 29.2 52.4 67.0 27.0 -59.7 -48.5 - 41.8 compared with a decline of 3 per cent Writs for Sheriff sales (Phila.).. . 814.8 926.8 844.3 798.8 805.9 827.7 + 2.7 + 3.6 - 5.2 for the country. Most pronounced de Distribution creases occurred in metals, building Retail—sales.................................. 69.5 53.5 53.6 84.4 65.9 65.4 - 0.8 -22.5 - 22.5 Retail—stocks............................. 74.2 58.0 60 6 77 7 materials, textile products, and foods. Wholesale—sales...................... 69.1 57.2 59.0 76.1 65.4 64.9 - 0.8 -14.7 - 14.9 Freight car loadings (Allegheny) 73.7 55.6 57.6 78.4 61.8 61.3 - 0.8 -21.8 - 21.6 Output of leather products, paper and Life insurance sales........................ 149.1 132.3 125.5 129.7 148.7 109.1 -26.6 -15.9 - 2.1 printing, and radio and musical instru New passenger auto registrations 64.7 44.8 52.3 87.4 83.0 70.7 -14.8 -19.1 - 13.0 ments showed marked increases. Business Liquidations Extra seasonal gains were reported Number............................ 159.7 298.6 220 8 Amount....................................... 211.0 559.4 319 9 in the output of knit goods, shoes, -42.8* +51.6 +119.7 paper, and wood pulp, and in the con Payment of Accounts Check payments............................. 99.7 77.0 70.7 98.7 75.5 70.0 - 7.3 -29.1 - 27.0 struction of ships and boats. Excep Rate of collections (1930 = 100).. 89.0 94.4 85.3 - 9.6* — 42 tionally large declines, on the other Retail......................................... 90.4 101.1 88.5 Wholesale..................................... 87.7 87.9 82.2 hand, occurred in the output of steel - 6.5* - 6.3 products, electrical apparatus, broad silk, cigars, cement, lumber and brick. Per cent change from The gain in the receipts of raw sugar Feb., Nov., Dec., Jan., Feb., (000,000’s omitted in dollar figures) at the Philadelphia Port was sub 1931 1931 1931 1932 1932 Month Year stantially smaller than it should have ago ago been for February. Compared with February 1931, local Banking and Credit Reporting member banks production of manufactures was 17 Loans to customers...................... . $815 *735 *716 *710 *702 - 13.9 -i.i Open market loans and investper cent smaller, as against a decline ments.................................. . 496 507 505 481 473 -1.7 - 4.6 of almost 20 per cent in the national All member banks output. Most drastic curtailment took Net demand and time deposits .. 2,364 2,136 2,079 2,046 2,002 -2.2 - 15.3 place in metals, building materials, and Bankers’ acceptances outstanding.. 25.8 17.3 16.9 15.1 16.0 radio and musical instruments. +6.0 - 38.0 Federal Reserve Bank The output of electric power in Bills discounted.................. 24 108 117 119 122 +2.5 +408.3 creased seasonally and was slightly Other bills and securities.............. 54 73 69 71 68 -4.2 + 25.9 Reserve ratio.................... 84.3% 64.6% larger than in February 1931. Indus 62.8% 60.4% 59.7% -1.2 - 29.2 trial consumption of electrical energy * Computed from indexes unadjusted for seasonal variation. f Preliminary, increased and was below the quantity t 3-month moving daily average. Page Three OUTPUT OF WOOL PRODUCTS IRON AND STEEL PRODUCTION PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT STEEL ■PIG IRON W)OLEN AND WORSTED GOODS ADJUSTED TOR SEASONAL VARIATIONS 1927 1928 1929 1930 1931 1932 1927 1928 1929 1930 1932 Source: Iron Age used per working day in February 1931. Detailed comparisons follow: Electric power Philadelphia Federal Reserve District Feb., 1932, per cent change computed from daily average Feb., 1931 Rated generator capacity........... + Generated output (10 systems) Hydro-electric........................... 4- 0.2 +217.8 - 33.4 + 6.9 Purchased................................... Sales of electricity (11 systems) Lighting....................................... + Residential and commercial Municipal............................... Street cars and railroads. . . Industries................................ Industries (working days).. All other sales............................ + Building and real estate. Jan., 1932 0.0 0.7 2.9 2.6 0.9 3.1 7.6 4.7 13.9 5.9 6.8 31.4 + + + t.i 2.6 2.5 4.3 + 4.1 — 5.0 — 3.0 — 5.3 + 9.7 + 7.8 + 4.6 +11.2 + 1.8 — 1.2 Building contract awards in February showed less than the usual seasonal gain. In March total awards showed a seasonal rise, owing partly to increased con tracts for residential buildings. An average for the three months ended in February indicated an upward trend but the extent of it was not as large as it should be at this time. Compari sons with other years continued quite adverse. Contemplated expenditures under building permits increased in February, but were at an exception ally low level as compared with recent years. Construction costs, which have shown an almost uninterrupted decline for the past twelve months, receded to a new low level in March, owing to reductions in prices of building ma terials and labor. Construction costs were 20 per cent lower than last year Page Four and were 25 per cent below the high point of February 1929. Employment in building trades of fourteen Pennsylvania cities declined 9 per cent and payrolls 10 per cent from the middle of January to the middle of February. Operating time also was reduced 8 per cent. The sharpest decreases in the number of workers and in their earnings occurred in bricklaying, excavating and struc tural iron trades. In nine city areas located in this district employment de clined, while in two areas—Bethlehem and Lancaster—more workers were taken on in February. The Reading area alone showed a gain in wage pay ments over January. The number of real estate deeds re corded in Philadelphia declined 19 per cent and the value of mortgages 62 per cent from January to February; usually deeds show an increase of 6 per cent in this period and mortgages a decline of approximately that amount. Conveyances exclusive of sheriff’s deeds, after falling off sharply from December, continued in the same volume in February as in January. Foreclosures, which evidenced a de clining tendency in the first two months of this year, have again be come exceedingly heavy. The num ber of writs issued in March for forced sales rose to the highest point in fourteen years and exceeded the previous record reached in December 1931 by nearly 15 per cent. Coal. Demand for anthracite was quiet during February but showed some improvement in March, owing to colder weather. Quotations at the mines were reduced somewhat earlier than usual and were reflected gen erally in lower prices at retail. Col liery output in February, which aver aged 163,000 tons daily, showed a gain of about 5 per cent over the rate of the preceding month; in the first three weeks of March production in creased further. Shipments continued to decline during February and were nearly 30 per cent below those of a year ago. The market for Pennsylvania bi tuminous coal has been sluggish, mainly because of slack demand from industries. Production in February showed a moderate increase instead of the customary decline; in comparison with a year ago, however, colliery out put was 30 per cent smaller. In early March output of mines increased fur ther. Shipments were smaller than in January and were about 85 per cent of those of a year ago. Average prices of soft coal throughout the country de clined in February and were materially lower than those of a year earlier. Distribution. Retail sales in Febru ary increased by a smaller amount than is usual. The largest decreases were reported for the Harrisburg, Lancaster, Altoona, and Wilkes-Barre trading areas. The Johnstown, Tren ton, Allentown-Bethlehem-Easton and Philadelphia regions showed gains over January. Dollar sales continued substantially smaller than in several past years, largely because of declin ing prices and unsatisfactory indus trial conditions. The largest decreases from last year occurred in the sales of men’s wearing apparel, shoe and credit stores, as shown by the accom panying table. In March, sales were greatly hampered by extreme varia tions in weather conditions, so that Easter trade did not compare well with other years. Retail stocks of merchandise at the RAW BOOTS AND SHOES SILK THOUSANDS DOLLARS PERCENT PHILADELPHIA FEDERAL RESERVE DISTRICT PRODUCTION PRICES DELIVERIES TO AMERICAN MILLS STOCKS (h y. warehouse) RETAIL SHOE SALES 1927 1928 1929 1930 Sources: Silk Association of America, Fairchild News Service end of February did not increase as much as they usually do before the spring holiday; they were 18 per cent less than a year ago. The rate of stock turnover was slightly lower this year than last. Collections also were less prompt than in January or last year. Retail commodity prices de clined further in February. Average quotations for certain food articles were 4 per cent and for merchandise generally sold by department stores 2 per cent lower than in January. Com pared with a year ago, both declined 17 per cent. Business at wholesale held its ground fairly well during February. In the case of shoes, dry goods, groceries, hardware and jewelry, sales were even larger than was to be ex pected. In early March, gains were re ported by a few lines, but it is doubtful if the aggregate volume of wholesale trade resulted in the seasonal increase usual for that month. Price weakness continued unabated. As in the case of retail sales, con tinued price recessions depressed the dollar volume of wholesale trade, which in February was the lowest for that month in many years. Sales in the first two months of this year were 15 per cent smaller than last year. Stocks of merchandise were also the smallest shown for any month in the past eleven years. Payments of ac counts were relatively slow, so that the rate of collections was 6 per cent lower in February this year than last. Freight car loadings failed to show the usual seasonal gain in February and reached the lowest level in recent years. This is true of both the ship ment of heavy commodities and of merchandise ready for final distribu tion or for further manufacture. In early March the movement of com 1927 1932 Source: Department of Commerce, Bureau of the Census modities showed seasonal increases. Registrations of new passenger auto mobiles increased but not as much as they should in February and continued 19 per cent below last year. Borrowings from the Federal Reserve Bank of Philadelphia declined from 122 to 87 millions during the four weeks ended March 16, reflecting almost entirely Financial conditions. Percentage change Retail trade Philadelphia Federal Reserve District Net sales: 1932, compared with 1931 Feb. Two months All reporting stores................................ -22.9 Department............................................. -19.2 -18.9 -19.7 -23.5 -32.0 -13.6 -19.4 -24.3 - 9.6 -20.7 -34.1 Men’s apparel......................................... Women’s apparel/................................. Shoe...................... *................................... Credit...................................................... Wholesale trade Philadelphia Federal Reserve District, February, 1932 (Percentage change is indicated by + and — signs) 1932 1930 1928 Boots and shoes Net sales— Two months 1932 com pared with two months 1931.................................... + 7.2 Feb., 1932, compared with January, 1932.................. +66.3 February, 1931................ +12.1 Actual index * February, 1932................ 39.9 January, 1932.................. 24.0 February, 1931................ 35.6 Seasonally adjusted index* February, 1932................ 56.2 January, 1932.................. 39.3 February, 1931................ 50.1 Stocks—Feb. 29, 1932 Change from: January 31, 1932 ... . February 28, 1931 ... Ratios of collections to re ceivables— February, 1932.................... 19.3 February, 1931.................... 19.2 Drugs Stocks: Feb. 29, 1932, compared with Rate of stock turnovertwo months Ratios of collections to receivables, February 1931 1932 1931 1932 Feb. 28, 1931 Jan. 31, 1932 -22.7 -18.3 + 4.5 0.58 0.54 29.1 26.9 -18.6 -18.3 -19.0 -30.6 -38.2 -20.6 -20.0 -25.0 - 9.3 -20.1 -32.3 -12.8 -11.6 -13.9 -15.3 -15.1 —15.6 -22.5 -21.5 -23.6 -23.6 -24.9 b 5.3 - 5.1 b 5.7 bl2.0 b26.9 b 0.2 b 3.1 - 1 .0 + 8.3 + 4.3 - 0.6 0.58 0.62 0.48 0.42 0.48 0.37 0.99 1.08 0.55 0.37 0.36 0.54 0 58 0.46 0.33 0.33 0.32 0.90 0.98 0.51 0.39 0.34 30.7 29.4 31.8 31.8 38.0 36.7 21.0 9.6 30.4 8.4 Jewelry Paper Dry goods Elec trical supplies Grocer ies Hard ware -14.4 -20.3 -29.1 -10.0 -25.1 -19.9 -17. - 1.9 -11.4 +10.7 -20.0 + 1.4 -31.6 + 4.1 - 3.7 + 5.0 -26.1 +47.1 -16.7 —17.^ -32.' 95.4 97.2 107.7 36.3 32.8 45.4 42.9 42.3 62.7 80.8 77.6 83.9 38.0 36.2 51.4 33.4 22.7 40.1 51. 62.' 76.( 93.5 94.4 105.6 43.2 40.5 54.0 48.2 63.1 70.4 86.9 83.4 90.2 46.9 45.8 63.5 47.0 39.1 56.5 52. 59. 77. - 1.7 - 6.6 + 5.8 -18.8 - 4.4 -31.3 - 1.6 -18.3 + 0.9 -12.0 + 6.7 -19.6 + 3. -19. 83.1 82.6 36.3 37.0 36.5 50.6 84.6 85.1 28.9 29.6 17.3 18.1 50. 55. * 1923-1925 = 100. Page Five PERCENT BUILDING MATERIALS REAL ESTATE PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA DEEDS RECORDED PRICES (united states) MORTGAGES i/ RECORDED/ ^ (IN MILLIONS OF DOLLARS) WRITS ISSUED FOR SHERIFF SALES- OUTPUT^! (ADJUSTED FOR SEASONAL ’ VARIATIONS ) 1927 1928 1929 1930 1931 1932 Net demand and time deposits All member banks (000,000’s omitted) Phila Outside delphia Phila Total delphia 1931—Aug............................ $1,074 $1,324 $2,398 Sept........................... 1,031 1,320 2,351 Oct............................. 925 1,280 2,205 Nov........................... 890 1,246 2,136 Dec............................ 853 1,226 2,079 1932—Jan............................. 832 1,214 2,046 Feb............................ 803 1,199 2,002 In contrast with this steady decline, the statements of weekly reporting member banks, most of which are Page Six 1930 1928 1931 Source: Philadelphia Real Estate Board Source: United States Bureau of Labor Statistics repayments by Philadelphia banks. Accommodation extended to country member banks has been holding rather steadily around 60 millions in the last two months. The funds to reduce borrowings ap parently were derived mainly from the sale of investments and appear in the federal reserve figures as a large favorable balance in the settlements of commercial and financial transac tions with other districts. About 5 millions of currency returned from circulation, a little more than in the corresponding periods of either of the two preceding years, but the effect of this upon borrowings was offset by the withdrawal of 6 millions of funds from the market by the Treasury. With a large gain in cash reserves and a decline in the combined note and deposit liability, the reserve ratio of this bank rose sharply from 59.2 to 67 per cent. This was the highest ratio since the middle of December. During the last quarter of 1931 and the first two months of this year de posits of member banks decreased sub stantially : 1927 located in Philadelphia, show marked stability in net demand and time de posits over the past four weeks. Loans to customers declined 7 mil lions to 694 millions; nearly all of this was in loans on the security of stocks and bonds. Secured loans also account for much of the reduction of more than 100 millions in customers’ loans over the past year, showing a decrease of 18 per cent; other loans, which probably reflect more closely credit granted for Feb., 17 Reporting member banks (000,000’s omitted) Loans to customers: $ Mar., 16 357 $ 344 7 185 278 351 343 7 185 272 Total loans and investments .... $1,171 $1,158 633 633 263 264 25 45 productive pur poses, have not changed materi ally of late and are only 8 per cent less than a year ago. Security hold ings of the re porting banks de clined 6 millions from February 17 to March 16, al though they had been allotted more than 30 millions of new United States securities on March 15. The Changes in— Federal Reserve Philadelphia (Dollar figures in millions) Mar. 16, 1932 Bills discounted for banks in—• Philadelphia........ $ 26.6 20 other large cities.................. 32.6 Other communi 28.0 ties ...................... Total bills dis counted............. $ 87.2 Bills bought............ 6.0 United States secu rities ................... 63.7 Other securities___ 1.1 Total bills and secu rities ................... $158.0 Member bank re serve deposits.. 119.2 Foreign bank de 1.4 posits ................. Cash reserves......... 255.5 67.0% Reserve ratio.......... Four weeks One year -$36.0 +$24.3 + 1.4 + 25.5 - 0.6 + 18.2 -$35.2 - 0.5 +$68.0 + 3.9 + - 5.2 1.5 4- 14.3 + 1.1 -$32.0 +$87.3 - - 29.6 0.2 - 3.1 + 0.9 + 25.1 + 2.5 + 7.8% - 21.2% substantial sales indicated by these figures enabled the banks to reduce borrowings from this bank. CURRENCY DEMAND MILLIONS PHILADELPHIA FEDERAL RESERVE DISTRICT -25 - -75 1929 1930 193 1 1932 Statistics on bank failures in this district reflect a more favorable bank ing situation. Eleven banks suspended operations in January and 3 in Feb ruary, the last of these taking place on February 11. No banks have closed in March up to the 24th of the month, while two were reopened. Subscriptions from this district to two new issues of United States cer tificates of indebtedness totaled $218, 000,000, or about 15 per cent of all subscriptions outside of the New York district. Allotments to the district amounted to nearly 52 millions, only about a quarter of the subscriptions, and of this total 11 millions repre sented exchanges for maturing se curities. Although out standing accept ances of banks in the United States declined during February from $961,000,000 to $919,000,000, obligations of banks in this dis trict increased from $15,118,000 to $15,961,000. PRIMARY DISTRIBUTION PERCENT SHIPMENTS OF MERCHANDISE AND MISCELLANEOUS COMMODITIES V-A-/—v. WHOLESALE ^ DOLLAR SALES 1927 1928 1929 Percentage change—Feb., 1932, from Feb., 1931 Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre........ Williamsport........ Wilmington.......... York....................... Employ ment Wage payments -20.5 -23.8 -26.4 -31.7 + 6.2 - 8.8 - 4.1 -27.5 -11.4 + 0.2 - 3.0 - 3.3 -21.5 -36.2 -36.3 -31.9 -54.0 -13.2 -18.0 -12.4 -27.6 -28.5 - 7.4 -10.9 -14.0 -28.8 Employment and wages in Pennsylvania Feb. index * Payrolls February, 1932 Per cent change since Feb., 1931 Jan., 1932 Feb. index * Per cent change since Feb., 1931 Jan., 1932 All manufacturing industries (52) ..................................... 68.9 -13.9 + 0.6 49.1 -28.4 0.2 Metal products.......................... Blast furnaces........................ Steel wks. and rolling mills. Iron and steel forgings......... Structural iron work............ Steam and hot wtr. htg. app. Stoves and furnaces.............. Foundries................................. Machinery and parts........... Electrical apparatus........... Engines and pumps.............. Hardware and tools.............. Brass and bronze products 60.1 42.9 54.1 55.2 81.9 78.0 57.6 59.5 68.5 83.8 36.0 64.5 57.7 -21.5 - 4.9 -24.4 -21.7 - 5.6 -19.3 - 1.5 -21.4 -19.3 -11.7 -44.6 -15.9 -21.1 + + + 37.6 22.6 31.6 36.6 49.8 52.5 32.1 32.4 47.1 60.4 19.8 45.8 35.6 -40.6 -41.1 -46.1 -40.8 -23.4 -39.9 -16.0 -46.9 -30.7 -29.1 -59.3 -27.4 -38.3 6.5 4.2 6.0 + 8.6 6.2 + 4.4 + 8.4 + 2.9 + 1.7 -14.9 -13.9 + 1.1 0.0 Transportation equipment . . Automobiles............................ Auto, bodies and parts .. . Locomotives and cars ... Railroad repair shops......... Shipbuilding........................... 48. St 58.7 68.1 21.1 72.0 37.4 -21.1 - 5.8 +35.1 -23.0 + i.i -48.8 + 2.5 +11.2 - 8.7 + 9.9 + 2.6 - 0.5 35.0t 35.6 61.4 13.6 47.5 53.1 -33.7 -11.4 +56.2 -33.0 -25.3 -51.2 + 1.4 +13.7 -10.2 +13.3 5.8 +10.2 - 3.8 0.0 - 1.0 - 8.1 - 6.7 - 2.3 -27.9 + 7.3 - 6.0 - 5.5 -19.4 -11.2 + 1.7 71.6 - 3.0 54.7 + 7.1 49.4 + 2.0 83.7 + 3.1 75.6 - 1.5 36.6 - 8.8 41.6 + 2.5 100.6 + 5.4 49.7 +15.2 50.1 + 3.3 95.3 + 0.2 88.2 -13.0 -12.2 -11.5 -20.3 -19.7 - 4.9 - 9.0 - 2.7 -28.6 -23.0 -31.9 -21.0 + 6.1 0.9 - rlO.O h 5.4 - 6.5 - 0.5 - 3.0 - 8.2 - 8.0 - [-17.9 - 1.1 + 3.2 + + + 1.2 8.3 0.2 0.7 3.0 0.0 8.7 0.8 0.4 6.8 4.5 0.5 1.8 Textile products........................ Cotton goods ........................ Woolens and worsteds......... Silk goods................................ Textile dyeing and finishing Carpets and rugs ............. Hats.......................................... Hosiery..................................... Knit goods, other.................. Men’s clothing....................... Women’s clothing................. Shirts and furnishings.......... 87.7 61.3 60.0 94.6 85.3 52.1 59.2 115.5 75.6 74.2 114.1 116.9 Foods and tobacco.................... Bread and bakery products Confectionery......................... Ice cream................................. Meat packing......................... Cigars and tobacco............... 96.9 98.8 93.4 82.8 94.0 95.3 - 7.7 9.0 7.9 7.7 2.7 8.0 + 5.2 - 1.1 - 2.5 + 1.2 - 1.2 +14.3 83.0 86.1 89.7 79.7 80.1 70.6 -12.8 -17.1 -12.7 - 9.6 - 6.5 -13.1 + 5.2 - 2.8 + 6.8 + 2.3 - 2.0 +16.9 Stone, clay and glass products Brick, tile and pottery......... Cement..................................... Glass ..................................... 51.8 53.1 46.7 61.0 -11.1 -25.7 -11.7 + 13.8 + 1.8 -12.1 - 1.3 +32.0 29.4 25.0 26.9 44.7 -33.3 -53.7 -33.3 + 3.5 + 3.9 -18.0 - 1.5 +52.6 Lumber products....................... Lumber and planing mills. . Furniture................................. Wooden boxes........................ 48.7 32.6 52.3 57.5 -14.6 -11.7 -16.1 -14.6 - 35.4 25.5 36.9 42.9 -24.5 -13.6 -26.2 -30.8 + 0.9 - 3.0 - 4.4 +25.4 Chemical products.................... 82.4 Chemicals and drugs............ 59.9 Coke.......................................... 62.4 Explosives............................... 71.0 Paints and varnishes............ 88.2 Petroleum refining................ 121.5 - 6.8 -16.7 -15.3 - 6.7 + 8.4 - 1.1 - 0.2 72.1 - 1.0 48.7 0.0 31.1 - 0.4 58.1 - 2.3 76.5 + 0.7 120.3 -19.3 -27.1 -46.3 -30.8 0.0 - 9.8 + 0.1 - 5.8 + 6.1 -10.2 + 4.9 + 0.9 Leather and rubber products. 92.0 Leather tanning..................... 89.9 Shoes......................................... 107.3 Leather products, other . . . 75.0 Rubber tires and goods.... 79.3 - 2.1 -13.2 +19.5 - 3.1 - 9.2 + 4.9 + 1.8 + 9.2 +16.1 - 1.2 74.3 66.8 96.7 73.7 75.9 -15.9 -27.7 +11.8 -14.2 - 9.9 +15.6 + 7.1 +33.0 +18.3 +14.5 Paper and printing.................... Paper and wood pulp........... Paper boxes and bags.......... Printing and publishing .. . 88.0 75.4 72.4 95.2 - + 0.3 1.3 0.4 0.1 86.0 66.0 65.8 95.4 -13.7 -12.7 -24.1 -12.0 + + + + Anthracite.................................... 69.3 -20.4 - 6.6 48.6 -39.1 1930 Source’. American Railway Association City areas * Employment February, 1932 Building permits (value) Debits + + - -11.5 -19.6 -15.5 -27.3 -15.8 -29.3 - 9.1 - 2.8 - 2.5 -11.6 —16.7 -16.3 -21 9 -21.6 -29.0 - 9.7 -33.1 -17.5 -19.8 -15.6 -17.5 -24.6 -15.8 -16.9 - 4.1 -11.8 -12.0 - 6.5 -14.5 -17.9 - 0.3 - 5.4 -17.2 -12.1 -35.0 -24.2 + 6.0 - 6.1 -11.6 +37.6 -11.8 + 1.1 - 5.5 - 1.1 +10.5 - 7.7 50.1 42.9 73.6 44.1 24.5 15.9 59.5 0.1 33.8 7.1 50.5 73.2 62.4 Retail trade sales -24.8 6.8 7.1 2.0 6.2 1.6 3.0 1.5 1.5 3.7 9.8 0.9 2.0 February, 1932, from January, 1932 Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre........ Williamsport........ Wilmington.......... Y ork ................ + 1.2 -11.9 + 1.2 - 1.0 + 0.8 - 1.6 + 3.5 - 5.9 + 4.1 +11.9 + 5.6 + 0.4 - 2.0 - 1.7 - 5.6 +13.9 - 1.6 - 2.6 - 3.3 + 8.2 + 1.3 + 6.9 +28.1 +10.4 4- 1.8 + 2.1 - 81.5 + 14.4 - 52.8 +280.2 - 7.3 +118.7 - 50.7 - 48.6 + 21.5 + 83.4 + 64.8 - 66.9 + 25.6 * Area not restricted to the corporate limits of cities given here. - 3.4 - 6.7 Bituminous coal......................... — 3.2 -46 Construction and contracting. -10.2 -10 6 Street railways........................ 73.8 - 5.4 - 0.8 Retail trade................................. 82.7 - 9.2 — 3.0 Wholesale trade........................ 84.9 - 5.6 — 0 8 * 1923—1925 average = 100 68.S -16.8 - 2.0 f Preliminary figures. Page Seven Synopsis of Industrial and Trade Conditions in the Philadelphia Federal Reserve District Stocks Operations Demand Manufacturing Iron and steel Blast furnaces ......................... Pig iron output than usual Quiet Steel works and rolling mills ........................................... Quiet increased less Declined Foundries and machine shops ........................................ Quiet Output of iron and steel castings increased less than usual Electrical apparatus ............. Slow Declined Locomotives and cars.......... Quiet Little change Shipbuilding .............................. More active Increased Silk manufactures .................. Quiet, declined; prices lower Declined Some increase in broad silks Wool dealers.............................. Quiet, declined Little change Wool manufactures............... Quiet, prices lower Increased Little change Cotton manufactures............. Quiet, declined Declined Yarns increased Hosiery Quiet, little change Some gain Larger Transportation equipment Textiles ........................................ Floor coverings ....................... Slow, declined; smaller unfilled Smaller than a year ago orders Little change Leather products Shoes ............................................. Fair, some gain Increased Declined Leather—sole ............................ Quiet, little change Little change Declined Quiet, little change Increased Little change Quiet Little change Smaller than a year ago Brick ............................................. Slow Declined Some increase Cement........................................... Slow, little change; prices slightly Declined higher kid ............................ goods ....................... Building materials Lumber—mills ......................... Slow, declined Declined Paints and varnishes............... Quiet, little change Some gain Pottery Slow, declined; smaller ........................................ Slate ................................................ unfilled Smaller than a year ago Declined Smaller than a year ago orders Declined Declined Declined Declined Slow, declined Miscellaneous Paper ............................................. Tobacco—cigars....................... leaf ............................ Chemicals ................................... Little change; orders in Little change unfilled Some gain Some increase Fair, some gain in unfilled orders Declined Quiet, declined Declined Smaller than a year ago Slow, declined Little change Smaller than a year ago Contract March Building gain awards increased in Employment clined and payrolls de Coal mining Anthracite................................... Somewhat more active in early Increased March; prices declined Bituminous Slow ................................. Increased in February Trade Retail ............................................. Increased less than usual Smaller than a year ago Wholesale and jobbing.......... Some gain in a few lines Declined Page Eight
@FedFRASER