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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT APRIL i, 1933 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Financial Conditions in the United States The course of business in the latter part of February and the first half of March was largely influenced by the development of a crisis in banking, culminating in the proclamation on March 6 of a national banking holi day by the President of the United States. Production and distribution of commodities declined by a substan tial amount during this period, but showed some increase after banking operations were resumed in the middle of March. Production and employment. Volume of output at factories and mines, which usually increases at this sea son, showed little change from Janu ary to February, and declined consid erably in the first half of March. In the steel and automobile industries output decreased between the middle of February and the middle of March; subsequently some of the au tomobile plants which had been closed resumed operations, while activity at steel mills showed little change. In February output at cotton and woolen mills continued at the level prevailing in January, while at silk mills activity INDUSTRIAL PRODUCTION piRCEtn mo declined. Shoe production increased by more than the usual seasonal amount. Reports from important industrial states indicate that factory employ ment increased between the middle of January and the middle of February, as is usual at this season. Construction contracts awarded up to March 15, as reported by the F. W. Dodge Corporation, indicate that for the first quarter of the year the total value of contracts will show a con siderable decline from the fourth quarter of 1932. Freight traffic, which usually increases at this season, showed little change from January to February, on a daily average basis, and declined considerably in the first two weeks of March. Department store sales in the country as a whole were at about the same rate in Feb ruary as in January, but were sub stantially smaller in areas affected by suspension of banking operations; early in March sales were sharply re duced but with the reopening of banks showed some increase. Distribution. Wholesale prices. Wholesale com modity prices declined somewhat fur ther in February. In the early part of March the commodity exchanges were closed; when they reopened on March 15 and 16, prices of grains, cotton, silk, non-ferrous metals, hides, and sugar were substantially above those prevailing at the beginning of the month; subsequently prices of many of these commodities declined somewhat. Bank credit. During February mem ber banks in leading cities were sub jected to withdrawals of deposits on a large scale, reflecting in part with drawals of balances by interior banks from their city correspondents and in part withdrawals of currency by the public. As a consequence, net deRESERVE BANK CREDIT AND FACTORS IN CHANGES Moray in Circulation Gold Stock RESERVE BANK CREDIT 130 Member Bank Reserve Balances 110 no Reserve Bank Credit" 50 1926 1929 1930 1931 1932 1933 50 Index number of industrial production ad justed for seasonal variation. (1923-1925 aver age = 100.) Wednesday figures for 12 Federal re banks. Latest figures are for March 22. Wednesday March 22. Latest figures Page One mand deposits of these banks declined by $1,306,000,000 during the month, and their time deposits by $360,000, 000. In order to meet these with drawals the banks reduced their loans by $539,000,000, partly through the sale of acceptances to the reserve banks, and their investments by $363, 000,000'. They also increased consid erably their borrowings at the reserve banks. March figures for member banks are incomplete. At the Federal Reserve Banks the banking crisis manifested itself be tween February 1 and March 4 in a domestic demand for $1,833,000,000 of currency, including about $300,000, 000 of gold and gold certificates and in a foreign demand for about $300, 000,000 of gold. As a consequence, the reserve ratio of the Federal Re serve Banks declined from 65.6 per cent to 45.0 per cent. This reflected a loss of $655,000,000 in reserves and an increase of $1,436,000,000 in Fed eral reserve note circulation, offset in part by a decrease of $486,000,000 in deposit liabilities. Between March 4 and March 22, there was a return flow to the reserve banks of $558,000,000 of gold coin and gold certificates and of $319,000, 000 of other currency, and the reserve ratio advanced to 55.5 per cent. Dis counts for member banks, which had increased to $1,432,000,000 by March 4, declined to $671,000,000 on March 22. Money rates in the open market ad vanced during the banking crisis, and on the resumption of business after the banking holiday, rates were at considerably higher levels than those prevailing on March 3. Subsequently rates declined as more funds became available to the market. On March 3, the discount rate of the Federal Re serve Bank of New York was raised from 2y2 to 3l 2 per cent, and on / March 4 there was a similar increase at the Federal Reserve Bank of Chi cago. The New York reserve bank’s buying rate on bills was raised by successive steps from J4 of 1 per cent on February 26, for bills of the shorter maturities, to 3% Per cent on March 3. On March 13 the rate for these maturities was raised to 3*4 per cent; subsequently the rate was re duced and on March 22 was 2 per cent. Business and Financial Conditions in the Philadelphia Federal Reserve District Industrial conditions during Feb ruary showed a marked seasonal im provement but, contrary to the seasonal trend, it did not continue through the first half of March chiefly because of the nation-wide emergency resulting in the summary closing of banks for over a week. The increase in the output of factory products was virtually up to the usual gain for February and since the middle of March further seasonal in creases have been in evidence. Pro duction of coal showed exceptional gains, the volume exceeding that of last year. Total building contracts awarded reached an extraordinarily low level and there has been little of even seasonal improvement since February. Indicators of distributive activity vary. Sales at retail and wholesale de clined instead of showing an increase as they usually do in February and were greatly affected by banking dis turbances in early March, although the extent of the declines in weekly sales does not seem to have been as severe in this district as in the country at large. Collections have slowed down consid erably. Automobile distributors re port a seasonal upturn in February while sales of life insurance showed less than usual increase. Shipments of commodities by rail and truck main tained the ordinary rate of activity, though the volume of deliveries con MANUFACTURING AND FREIGHT CAR LOADINGS tinued smaller than in recent years. The number of business liquidations declined while the amount of liabilities increased sharply from January to February. Activity in the manufacturing industry during Feb ruary showed a definite seasonal ex pansion ; sales of finished goods and plant operations increased as they usually do in comparison with January. But in early March this improvement was greatly hindered by the closing of banks. In addition to the interference with meeting of payrolls and settling of accounts, orders for goods were can celed or withheld for the time being, Manufacturing. FACTORY EMPLOYMENT IN PENNSYLVANIA PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT 100 1923-2SAVG—IOO | - - - - - - - - - - - - -J- PERCENT OUTPUT OF EMPLOYMENT MANUFA CTURES w! 75 TOTAL REIGHT C AR LOADINGS Vn ... Kjr 50 EMPLOYE HOURS S- * ADJUSTED TOR SEASONAL VA 1ATION5 1928 1929 1930 1931 Source: American Railway Association Page Two 1932 1933 1928 1930 1931 1932 1933 thus creating a period of considerable uncertainty from March 4 to about March IS. Since the opening of the banks, the manufacturing situation has undergone a noticeable change for the better. Inquiries and actual orders for factory products have increased, and the general business sentiment has im proved materially. Despite some local increases in com modity prices, reports show further declines in February. Such sharp ad vances as occurred in the first two weeks of March probably reflected in part temporary disturbances incident to the closing of commodity exchanges, since in the latter part of March quota tions showed weakness. Collections declined appreciably as compared with a month ago and continued smaller than last year. Stocks of both finished goods and raw materials held by repre sentative factories of this district showed further reductions in the month and as compared with recent years. It appears that in most instances manu facturing concerns continue in a fairly strong statistical position. Factory employment in this district, comprising eastern Pennsylvania, southern New Jersey, and Delaware, showed an increase of 2 per cent and payrolls over 3 per cent in February as compared with January. These gains were somewhat larger than usual. It is estimated that the average employ ment of all factories in the district dur ing February totaled about 480,000 workers, drawing an average weekly payroll of $6,457,000. Compared with a year ago employment was 15 per cent and payrolls 31 per cent lower. An analysis of reports covering more than 1,300 manufacturing plants in Pennsylvania employing about 220,000 wage earners shows that in February 50 per cent of these plants worked five days a week and 47 per cent operated from forty to fifty hours a week. More than 76 per cent worked from four to six days a week and from thirty to sixty hours a week. About 15 per cent operated from one to three days a week. Twenty-six plants, or less than 2 per cent of the total analyzed, had only a maintenance force of 364 work ers such as watchmen and caretakers, while forty-five plants, or 3.2 per cent of the total, were entirely closed. Output of manufacturers during February showed a gain of almost 2 per cent over January, which was about the usual percentage increase for this period. The February index of pro ductive activity was nearly 56 per cent Business Indicators Philadelphia Federal Reserve District ‘Adjusted” index numbers make allowance for the usual seasonal changes which result from an uneven distribution of business Index numbers expressed in percentages of 1923-1925 average, which is taken as 100 Adjusted for seasonal variation They are the most significant indexes because they show im provement or decline beyond the level usually to be expected. “Unadjusted” indexes reflect merely the actual changes which may or may not be up to the usual seasonal expectations. Productive activity Manufacturing—total.................... Metal products........................... 1 extile products.................. Transportation equipment.... Food products............................. Tobacco and products............... Building materials...................... Chemicals and related products Leather and products............ Paper and printing..................... Electric power output............... Elec. pwr. used by industries. . Not adjusted Percentage comparison Feb. 1932 Jan. 1933 Feb.1933 with Feb. 1933 Month ago 67.3 55.9r 55.6p 43.1 28.5r 27.7 74.5 75.2 72.4p 59.7 34.Or 31.6 71.7 66.1 66.3p 83.8 78.9 81.4 33.5 15.9r 16.6 95.3 87.9 90.8p 108.6 95.4 104.7 94.5 78.6r 78.2 182.9 159.2 159.8 127.8 112.5 114.8 + + + + + + + 0.5 2.8 3.7 7.1 0.3 3.2 4.4 3.3 9.7 0.5 0.4 2.0 Year ago -17.4 -35.7 - 2.8 -47.1 - 7.5 - 2.9 -50.4 - 4.7 - 3.6 -17.2 -12.6 -10.2 2 months 1933 with 2 months 1932 Feb. 1932 Jan. 1933 Feb. 1933 -18.9 68.0 55.6r -39.9 43.5 27.3r 28.0* - 3.8 80.4 77.9 78.5p -45.1 60.4 33.9r 31.9* - 9.9 70.9 64.9 65.8p - 5.9 70.8 65.2 68.8* -54.1 27,8 13.6r 14.4 - 8.2 94.6 86.2 90.3p - 2.0 115.5 99.2 111.3* -15.9 94.5 78.6r 78.2 -12.3 193.9 168.8 169.4 -11.2 126.5 109.1 113.7 Factory employment Penna. + 1.6* — 15 3* Factory wage payments Penna. . + 3.1* -32 6* —34 7* 48 7 Coal mining...................... Anthracite.................................... Bituminous.................................. 56.5 58.0 47.6 52.1 53.0 46.8 16 2* +18.8 +20.8 + 5.1 61.9 64.0 49.2 Building and real estate Contracts awarded!—total. . . 37.9 37.0 24.8 Contracts awarded!—residential 27.5 12.1 11.0 Permits for building.......... 11.8 9.1 8.7 Mortgages recorded in Phila. . . . 27.0 28.3 18.7 Real estate deeds recorded in Philadelphia........................ 58.5 62.2 53.7 Exclusive of Sheriff deeds (1930 = 100)............................. Sheriff deeds (1930 = 100)........ Writs for Sheriff sales in Phila. .. 827.7 918.6 1244.9 + 9.6 +10.3 + 3.4 + 4.9 + 4.5 + 7.9 60.6 62.0 51.9 56.5 57.0 53.3 65.9 68.0 53.6 -33.0 - 9.1 - 4.4 -33.9 -34.6 -60.0 -26.3 -30.7 -19.3 -56.5 -28.8 -50.0 30.7 19.8 9.1 29.2 28.5 9.7 5.2 32.6 20.1 7.9 6 7 20 2 -13.7 - 8.2 -14.5 58.5 58.5 53 7 -17 0* — 13 1* 0 1* + 2.9* + 15 8* +35.5 +50.4 +32.4 844.3 1056.4 1269.8 Distribution Retail trade—sales................ 67.6 50.7 Retail trade—stocks............... 67.4 56.7 Wholesale trade—sales.................. 64.9 58.5 Wholesale trade—stocks.. . 70.0 59.4 Freight car loadings (Allegheny district) .......................... 61.3 50.9 Life insurance sales......... 109.1 111 .9 New passenger auto registrations 70.7 60.9 48.9 54.2 56. Op 57.8 - 50.4 95.9 58.2 - 0.1 -17.8 -14.3 -12.1 - 4.4 - 17.7 3.6 4.4 4.3 2.7 -27.7 — 19 6 -13.7 — 17 4 -26.0 55.8 41.6 40.1 -14.8 59.0 69.9 51.9 58.4 57.6 -17.7 57.6 -19.4 125.5 -22.5 52.3 45.8 47.4 99.6 110.3 32.9 43.1 Business liquidations Number....................... Amount of liabilities.................... +64.2* -10^2* -47 '.4* 319 '9 175.0 287.3 Payment of accounts Check payments................ Rate of collections (actual, not indexes) Retail trade....................... Wholesale trade........... (000,000’s omitted in dollar figures) 70.0 60.0 +10.2 66.1 - 5.6 -13.3 Feb. 1932 Nov. 1932 Dec. 1932 Jan. 1933 Feb. 1933 61.2 66.8 56ll — 17 4* — 4 9* - 6.8* 70.7 55.0 52^3 Per cent change from Month ago Year ago Banking and credit Reporting member banks Loans to customers.................... Open market loans and invest ments ..................... $702 $596 $590 $570 $565 - 0.9 — 19.5 473 528 529 513 507 - 1.2 + 7.2 All member banks—net demand and time deposits....................... 2,002 1,977 1,980 1,987 1,963 - 1.2 - Bankers’ acceptances outstand ing .................................................. 16.0 13.5 12.3 11.1 10.4 - 6.3 - 35.0 Federal Reserve Bank Bills discounted.......................... Other bills and securities .... Reserve ratio.................. 122 67 59.7% 48 144 56.8% 51 143 57.3% 47 140 58.2% 54 142 57.0% + 14.9 + 1.4 - 2.1 — 55 7 +111 9 - 4.5 * Computed from data unadjusted for seasonal variation. ! 3-month moving daily average. 1.9 p—Preliminary, r—Revised. Page Three OUTPUT OF TEXTILE GOODS IRON AND STEEL PRODUCTION PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT / STEEL WOOLEN AND WORSTED PIG IRON COTTON ADJUSTED fOR SEASONAL VARIATIONS 1928 1932 1930 1928 1929 1930 1932 1933 Source: Iron Age of the 1923-25 average, after adjusting it for seasonal changes and for the number of working days. The table below gives the revised indexes of fac tory output in this district for 1932 and for the first two months of this year. This revision was necessitated by cer tain minor changes in some of the in dustries included in the groups com prising transportation equipment, build ing materials, paper and printing, food, and metal products. Revised indexes— output of manufactures Philadelphia Federal Reserve District 1923-25=100 Adjusted for seasonal variations Not adjusted 1932—January.......................... February........................ March............................ April............................... May................................ June................................ July................................. August............................ September..................... October.......................... November..................... December...................... 70.2 67.3 63.0 60.2 55.5 54.6 55.4 57.3 63.6 62.3 59.3 57.1 69.1 68.0 63.6 58.9 54.6 54.6 53.6 57.0 65.0 64.6 60.5 55.4 1933—January......................... February....................... 55.9 55.6p 55.6 56.6p p—Preliminary. Exceptional increases during Feb ruary occurred in the output of tobacco and chemical products, building ma terials, and musical or related instru ments. Gains in the production of metal and textile products, on the other hand, were not as large as were to be normally anticipated, while activity in the transportation equipment industry declined rather sharply. Among the important individual in dustries listed in the table on the last page, sixteen out of thirty-one showed more than seasonal improvement in productive activity from January to Page Four February. Unusual gains were espe cially pronounced in such industries as woolens and worsteds, cement, pig iron, shoes, explosives, paints and varnishes. Comparisons with last year continued unfavorable in all lines with the ex ception of silk manufactures, under wear, meat packing, and explosives. Output of electric power by nine cen tral stations showed slightly more than its usual seasonal gain. Total sales of electricity also increased 3 per cent as compared with January but were 10 per cent below last year. Consumption of electrical energy by industries showed a gain of 2 per cent over the increase that commonly occurs between January and February; in comparison with a year ago, however, the industrial use of electric power was 10 per cent smaller. Activity in the building and contracting industry showed a further decline in February. As evidenced by reports from 1,061 firms in Pennsylvania, employment declined 3 per cent and payrolls 11 per cent from January to February. Operating time in this period was re duced 13 per cent, the sharpest cur tailment occurring in building opera tions and the construction of streets and highways. Aggregate awards of building con tracts showed a sharp decline from January to February instead of the usual seasonal increase. Awards tor residences decreased nearly 15 per cent in this period and with the exception of last December, were the smallest of any month in recent years. The average of total awards for the three months, from December through Feb ruary, was 35 per cent lower than a Building and real estate. year ago, reflecting chiefly depressed industrial conditions. In early March the dollar volume of contract awards declined further, with all classes of construction showing substantial re ductions. Estimated cost of contemplated building under permits issued in 17 cities of this district showed less than the usual rate of gain from January to February, and was 26 per cent smaller than in February of last year. Figures for the two months ended Feb ruary 28 showed that the dollar volume of building permits was 29 per cent smaller this year than last. Developments in the real estate situation continue to reflect unusual quiet. Conveyances, exclusive of sheriff deeds, showed a further de cline in February and were consider ably smaller than in the same month last year. The value of mortgages recorded in Philadelphia showed an unusually sharp decline in February and was only about two-thirds of the volume reported a year earlier. Al though foreclosures continue excep tionally numerous, the number of writs issued for forced sales in March showed an unexpected decline as com pared with February and was 17 per cent less than in the same month last year. Coal. Demand for anthracite has slackened somewhat during recent weeks, owing partly to seasonal influ ences. Colliery output in February, which averaged about 182,000 tons daily, was substantially larger than in the preceding month and exceeded the volume of a year ago by 10 per cent. In early March the weekly out- PRIMARY DISTRIBUTION OUTPUT OF SHOES PERCENT 192 3-23AVG.=IOO PHILADEL 3HIA FEDERAL RESERVE k l\ DIE TRICT PERCENT _ SHIPMENTS OF MERCHANDISE__ AND MISCELLANEOUS COMMODITIES 125 ** • IOO //y 1 \ M k V* V •. »i *; 1 1 1 * • ! * Av UNITED S TATES \ ; i i* * tL I '*••]// ■ iM f < 1* 11* VI* V* M* Jfs V WHOLESALE ^ DOLLAR SALES 75 50 ADJUSTED TO 1928 SEASONAL V *RlATlONS 1929 1930 1931 Source: United States Bureau of the Census put of mines declined seasonally. Shipments of hard coal increased dur ing February and showed a pro nounced gain as compared with the same month of 1932. Comparative figures covering both the output and shipments of anthracite during the two months ended February 28 indi cate a somewhat higher rate of ac tivity this year than last. Wholesale prices of hard coal showed no change from January to February, but were about 6 per cent lower than in Feb ruary of last year. Production of bituminous coal in Pennsylvania showed a slight gain in February, contrary to seasonal expec tation. As compared with February of last year, colliery output, which averaged 255,000 tons daily, was about 3 per cent larger. In the first fort night of March production declined seasonally. Shipments showed a gain during February and compared fav orably with those of a year earlier. Wholesale prices of soft coal in the country declined fractionally from January to February and were nearly 6 per cent lower than a year ago. Total retail sales of representative department, apparel, shoe and credit stores during Febru ary declined almost 4 per cent instead of showing the usual seasonal gain over January. Following an excep tional drop in January, business of de partment stores, particularly in Phila delphia, showed improvement, sales increasing more than usual. Some bet terment also was reported by retailers of women’s apparel in Philadelphia, while sales of shoes decreased contrary to the seasonal tendency and business in men’s apparel fell off by a larger than the usual amount. Credit stores, Distribution. 1932 1933 1928 1929 1930 1931 1932 1933 Source: American Railway Association which sell chiefly house furnishings, clothing, jewelry and musical instru ments on longer credit terms than those common under ordinary charge accounts, reported larger daily sales than in January, but this increase failed to equal seasonal expectations by 15 per cent. In the first two weeks of March retail business showed sub stantial losses as compared with a year ago, owing largely to the closing of banks, but since then there has been some improvement. Compared with a year ago, total re tail sales were 28 per cent smaller, department stores showing a decrease of 24 per cent, while losses in the re maining four lines varied from 15 per cent in women’s apparel to 47 per cent in credit stores. Our adjusted index of total retail trade sales in February reached the lowest level in the past ten years. The influence of lower prices and general industrial conditions is reflected in these adverse comparisons with other years. The relative importance in sales of the lines which are used in this index follows: Department stores .................... Men's apparel stores.................... Women’s apparelstores............. Shoe stores .................................... Credit stores ................................ 52.0% 9.9 10.9 7.1 20.1 Total ........................................... 100.0% Inventories at retail stores showed smaller than usual increases except for stocks at shoe and credit stores. The rate of stock turnover in the first two months this year was 9 per cent lower than last. Settlements of ac counts during February were at a sub stantially slower rate than in January, when payments registered a consider able improvement. Total sales at wholesale declined in stead of increasing from January to February. This decrease was due principally to smaller sales of gro ceries which make up about one-third of the total sales by eight lines. There were, however, exceptional gains in the sales of shoes, hardware, jewelry, and paper. Compared with a year ago, the dollar sales of the eight lines combined was 14 per cent smaller, declines varying from 4 per cent in groceries to 51 per cent in jewelry. The relative importance of each of the eight wholesale lines which compose our index number is: Boots and shoes........................... 3.1% Drugs .............................................. 7.6 Dry goods .......................................... 17.9 Electrical supplies....................... 15.9 Groceries ....................................... 35.0 Hardware ........................................... 6.9 Jewelry ............................................... 4.7 Paper. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.9 Total ........................................... 100.0% Stocks of merchandise at wholesale establishments were reduced rather than increased which is usual between January and February. The rate of stock turnover was almost 2 per cent higher this year than last. Collec tions, however, were slower than in January or a year ago. Shipments of commodities by rail road freight in this section virtually maintained the seasonal percentage gain, although the volume was about 18 per cent smaller than last year. Deliveries of merchandise by motor freight in Pennsylvania during Feb ruary showed seasonal gains as indi cated by the increase of 2 per cent in employment of representative motor freight companies from January to February. Sales of new passenger automobiles in February increased 31 per cent as compared with a typical seasonal in- OUTPUT OF FOOD PRODUCTS SALES OF NEW PASSENGER AUTOMOBILES PHILADELPHIA FEDERAL RESERVE DISTRICT REGISTRATIONS PERCENT PERCENT ACTUAL UNITED STATES ADJUSTED — FOR SEASONAL VARIATIONS PHILADELPHIA ' FEDERAL RESERVE' I DISTRICT 1929 1930 1932 1928 1929 1930 1931 1932 1933 Sources: R. L. Polk Company, Pennsylvania Motor List Company crease of about 37 per cent; but they were 18 per cent smaller than a year ago. Premiums paid on new life in surance, when adjusted for seasonal changes, declined 14 per cent more than they usually do in February and were 12 per cent below February 1932. Banking conditions. In the last issue of this review attention was called to the unusual demand for currency and coin and to the fact that bankers’ bal ances on deposit in this district had declined materially. Further with drawals of such balances took place in the week ended March 1; the call for currency became increasingly heavy in the period up to March 4 and gold was taken by the public in large quantities. The outflow of currency and coin from the reserve bank in the ten days from February 22 to March 3 exceeded re ceipts by 54 millions; this demand and unfavorable balances in the settlements with other districts were met for the most part by an increase of 87 millions in borrowings from this bank and by a decline of 9 millions in the reserve bal ances of member banks. The declaration of a bank holiday in Pennsylvania and New Jersey on March 4, followed by a holiday decreed by Presidential proclamation, put an effectual stop to the withdrawals that were taking place from the banks. In the latter half of the week ended March 12 payments of currency and coin were made by this bank to enable the banks to provide money for payrolls and necessary expenditures. The reopening of most of the banks for regular business during the week beginning March 13, subject to the restrictions contained in the Executive Page Six Order of March 10, was attended by a large return flow of money. From March 13 to March 22 the excess of currency and coin receipts of all kinds over amounts paid out reached nearly 48 millions. Member banks in creased their reserve deposits in this period and were able to reduce their borrowings despite the withdrawal of some funds from the local market as a result of Treasury operations. From March 6 to March 22 this bank re ceived nearly 22 millions of gold and gold certificates. Bills discounted by this bank totaled 123 millions on March 22; this was 68 millions higher than a month earlier, but compared favorably with 156 mil lions on March 15. The reserve ratio declined from 55.1 to 44.6 per cent in the month, but this was noticeably higher than the figure of 39.3 per cent reported on March 15. Demand and time deposits of all member banks in the district averaged 1,963 millions in February, which com pared with 1,987 millions in January and 2,002 millions a year ago. 1932—November............... December ............... 1933—January .................... February .................. 1932—February ................. De mand Time Federal Reserve Bank of Philadelphia (Dollar figures in millions) Changes in— Mar. 22, 1933 Bills discounted .. $123.3 Bills bought.......... 10.7 United States se curities ........... 128.1 Other securities . . 0.5 Deposits All member banks (Daily net averages; 000,000’s omitted) cent; this was an increase of approxi mately one-half of one per cent over a month earlier, but a smaller increase over a year ago. Outstanding acceptances of banks in this district declined from $11,100,000 to $10,400,000 during February, a de crease of 6 per cent which compared with less than one per cent decline in the figures for the country as a whole. In comparison with a year ago the de crease in this district was 35 per cent and in the national total, 23 per cent. Two issues of certificates of in debtedness were made by the United States under date of March 15. Sub scriptions received from the district totaled 77 millions. About 35j4 mil lions was allotted here, of which 14J4 millions was in exchange for maturing securities, while 21 millions was paid for in cash or by deposit credit. Totals $973 $1,004 $1,977 1,980 985 995 1,987 968 1,019 955 1,008 1,963 989 1,013 2,002 Rates charged in Philadelphia in the middle of March on the bulk of com mercial loans to customers in good standing averaged a little over 5 per Total bills and securities.... Fed. res. note cir culation ......... Member bank re serve deposits Government de posits ............. Foreign bank de posits ............. Special deposits— member and non-member banks............. Cash reserves.... Reserve ratio........ One year Four weeks +$67.7 - 2.2 +$ 33.5 5.0 + - + — 9.0 0.0 62.5 0.8 $262.6 +$56.5 +$100.2 286.0 + 33.4 4- 27.4 110.8 - 9.6 3.2 + 1.6 _ _ 0.5 1.5 - 4.7 + 0.1 + + 4.9 4.9 - 28.7 181.4 — 44.6% - 10.5% 5.5 4.9 69.9 21.5% NET DEMAND AND TIME DEPOSITS Employment February 1933 ALL MEMBER BANKS-PHILA. FED. RES. DISTRICT MILLIONS $ Employment and wages in Pennsylvania 1400 .......... 1300 BANKS OUTSIDE ^ OF PHILADELPHIA 1200 Feb.* index Per cent change since Feb. 1932 \ * Payrolls February 1933 Jan. 1933 Per cent change since Feb.* index Feb. 1932 Jan. 1933 All manufacturing industries (51)....................................... PHI LAC ELPHIA BANKS 700 DAILY AVERAGES 600 1930 1931 1932 1933 FEDERAL RESERVE BANK OF PHILADELPHIA MILLIONS MEMBER BANK’S — RESERVE DEPOSITS BILLS DISCOUNTED 1932 1933 Percentage change—Feb. 1933 from Feb. 1932 City areas* Employ ment Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre........ Wilmington.......... York....................... Wage payments Building permits (value) Debits -14.0 + 3.8 -11.4 -27.3 -26.4 -13.4 -15.0 - 1.1 -17.1 + 3.9 -36.8 - 9.1 + 1.0 -33.3 -26.8 -35.4 -39.0 -46.9 -25.5 -42.2 -14.2 -32.2 -15.0 -65.2 -19.5 -18.8 + 854.8 + 62.9 + 7.6 - 73.1 - 68.9 - 63.1 - 51.7 9.1 - 74.3 - 37.8 - 48.7 - 63.3 + 885.7 -30.8 -33.4 - 8.8 -33.1 -33.5 - 6.4 -22.6 -17.8 - 8.4 -22.7 -41.7 -13.8 -21.7 Retail trade sales -28.3 -15.2 -19.8 -33.6 -30.2 -24.3 -20.4 -12.0 -25.9 -22.7 Wilmington.......... York....................... + 4+ + 4+ + 4- 1.2 4.2 2.9 0.0 4.9 0.6 5.4 4.8 1.5 0.8 1.5 0.5 6.5 + 2.6 +11.2 + 15.6 - 6.2 + 4.2 + 0.7 + 3.3 +10.2 + 4.8 +10.1 + 0.9 + 2.0 + 3.2 +2527.7 + 146.7 - 33.4 - 75.1 + 17.4 - 43.7 + 31 .0 9.2 - 18.8 + 32.1 + 176.4 + 9.2 +6731.0 -15.2 -10.1 -23.3 -23.1 - 6.4 - 4.5 -10.9 + 3.4 +10.3 -13.4 — 8.4 -15.8 -12.8 * Area not restricted to the corporate limits of cities given here. + 3.1 22 16 20 28 21 41 34 16 25 31 13 31 28 8 1 3 0 7 3 5 9 7 5 1 6 2 -37.5 -28.8 -35.8 -23.1 -56.4 -21.3 + 7.5 -47.8 -45.4 -40.7 -33.8 -31.0 -20.8 + 5.1 + 4.5 +12.2 + 1.8 + 8.5 +11.0 +48.7 + 4.3 - 3.0 - 8.4 + 0.8 +18.4 + i.i 33 26 43 16 52 30 5p 8 7 9 9 4 -39 4 -54 3 8 -19 9 -19 1 -18 7 _ 6 9 3 3 0 10 1 0 9 + 7 4 17 7 28 7 28 34 2p 5 7 7 2 7 -56.1 -78.9 -53.3 -43.4 -37.5 -34.7 - 7.0 - 6.2 - 8.6 -14.4 - 6.9 +17.6 82 57 54 92 68 45 54 102 72 74 126 125 0 3 4 5 4 6 3 8 4 7 9 9 - 6 - 6 - 9 - 2 -19 -12 - 8 -11 - 4 + 0 +11 + 7 5 5 3 2 8 5 3 0 2 7 2 7 + 1 2 + 6 5 + 5 6 2 0 +10 0 — 2 1 — 1 6 + 2 7 + 2 3 + 6 1 + 3 1 + 3 6 53 39 36 65 55 24 39 69 43 41 79 73 3 8 4 2 6 2 7 0 5 2 1 7 -25.6 -27.2 -26.3 -22.1 -26.5 -33.9 - 4.6 -31.4 -12.5 -17.8 -17.0 -16.4 + 2.3 + 3.9 +12.3 — 0.3 + 6.5 - 0.4 - 9.6 + 3.3 + 4.6 +23.7 - 1.4 +14.6 91 94 84 70 94 91 3 4 1 7 3 0 - 6 - 4 -10 -14 + u - 6 7 6 0 6 3 8 + 2 0 — 5 + 1 0 + 9 8 1 3 7 4 4 67 6 74 5 67 1 1 65 3 61 2 -18.9 -13.5 -25.2 -33.4 -18.5 -15.0 + 4.6 0.0 + 3.5 - 0.2 - 3.5 +16.1 41 44 29 66 7 9 1 2 -21 -15 -37 - 3 5 4 7 8 + 4 0 + 5 + 7 3 2 1 5 17 15 11 40 6 5 7 1 -41.1 -38.0 -56.2 -19.0 +11 .4 - 3.1 +15.8 +19.0 35 16 38 54 0 5 2 0 -28 -49 -27 - 6 1 4 0 1 + 4 +25 _ 1 + 3 8 0 5 8 18 8 20 31 5 1 1 4 -47.7 -68.2 -45.5 -26.8 + 12.1 + 8.0 + 7.5 +23.6 Chemical products........... . 78 Chemicals and drugs............ 56 Coke..................................... 55 Explosives............................. 65 Paints and varnishes.... 86 Petroleum refining................ 117 5 7 5 1 6 3 - 4 - 5 -11 - 8 - 1 - 3 7 3 1 3 8 5 + 0 0 + 2 + 0 + 3 0 3 61 4 43 2 20 8 52 3 60 6 105 9 1 7 6 2 9 -14.1 -11.5 -33.4 - 9.5 -21.3 -12.0 + 2.3 - 1.4 +10.7 +20.6 + 19.7 — .0.1 Leather and rubber products . 91 4 Leather tanning.................... 90 5 Shoes.................................. 109 2 Leather products, Other . . . 66 3 Rubber tires and goods .... 77 2 - 0 + 0 + 1 -11 - 2 9 7 4 6 6 + 4 + 0 + 12 + 8 + 0 8 3 7 5 9 60 57 79 56 52 8 3 8 5 1 -18.6 -14.2 -18.8 -23.3 -31.4 + 8.8 - 1.5 +35.5 +15.3 + 6.7 Paper and printing........... Paper and wood pulp........... Paper boxes and bags.......... Printing and publishing. . . . 79 68 60 85 - 9 - 8 -16 -10 9 6 2 2 _ — + + 1 2 5 4 7 0 1 62 43 51 71 3 6 1 0 -27.6 -33.9 -22.3 -25.6 - 2.0 — 9.4 +20.0 - 0.6 Anthracite mining................. Bituminous coal mining.......... Banking, insurance and real estate ................................. Canning and preserving.......... Construction and contracting. Hotels.................................... Laundries....................... Dyeing and cleaning................ Crude petroleum................. Public utilities............................ Quarrying and mining............. Retail trade.............................. Wholesale trade........................ 57 2 47 7 - 0.6 +31.4 - 3.8 3 9 7 5 7 8 7 8 2 8 0 2 1 4 4 1 1 _ — -20.7 February 1933 from January 1933 Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre........ -32.6 + 2 1 + 5 8 + 4 3 2 5 + 8 2 + 9 9 +35 8 + 3 4 0 6 — 7 0 — 1 0 +11 1 - 0 8 Lumber products....................... Lumber and planing mills. . Furniture................... Wooden boxes...................... 800 32 8 -19 - 6 -18 -15 -27 - 2 + 1H -24 -25 -25 -19 - 7 -10 Stone, clay and glass products Brick, tile and pottery .... Cement.............................. Glass................................ \ + 1 6 2 0 0 5 6 7 8 1 3 0 0 9 9 Foods and tobacco.................. Bread and bakery products Confectionery...................... Ice cream............................... Meat packing............ Cigars and tobacco............. 900 -15 3 48 40 44 46 59 75 66 45 51 62 29 59 51 Textile products............. Cotton goods................. W oolens 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.......... 1000 58 6 Metal products............... Blast furnaces.................. Steel wks. and rolling mills . Iron and steel forgings......... Structural iron work.... Steam and hot wtr. htg. atm Stoves and furnaces............. Foundries................... Machinery and parts........... Electrical apparatus............. Engines and pumps.............. Hardware and tools. . . Brass and bronze products . Transportation equipment.. . Automobiles......................... Auto, bodies and parts.. .. Locomotives and cars.......... Railroad repair shops........... Shipbuilding.............. ........ 1100 - 1.6 +11.7 - 6.1 +23.8 -11 .4 - 0.2 - 2.3 + 0.7 + 5.8 -13.9 + 6.5 * 1923-1925 average = 100. 79.1 79.9 -17 5 - 4.4 - 5.9 + 11.9 - 1.4 + + + + 0.1 0.6 2.8 0.8 1.5 1.5 3.3 0.5 9.9 0.1 0.3 - 0.8 +12.1 -10.8 + 0.1 - 4.1 -11.6 - 1.8 + 1.1 +14.5 p—Preliminary figures. Page Seven Index numbers of individual lines of trade and manufacture RETAIL TRADE PHILADEL PHIA FEDERAL RESERVE DISTRICT Philadelphia Federal Reserve District “Adjusted” index numbers make allowance for the usual seasonal changes which result from an un even distribution of business be tween the months of the year. They are the most significant indexes because they snow im provement or decline beyond the level usually to be expected. “Unadjusted” indexes reflect merely the actual changes which may or may not be up to the usual seasonal expectations. .v\. Index numbers expressed in percentages of the 1923-1925 average which is taken as 100 ALL STO ?ES STOCKS^* 75 Not adjusted Adjusted for seasonal variation SALES'" Percentage comparison Feb. 1932 Jan. 1933 Feb. 1933 Feb. 1933 wi th Month ago Year ago 2 months Feb. 1932 1933 with 2 months 1932 Jan. 1933 Feb. 1933 DEPARTMENT STORES SALES 75 y ‘v........ .I/V STOCKS V..... •• Retail trade Sales All stores....................................... Department............................. Men’s apparel......................... Women’s apparel................... Shoe............................................ Credit........................................ 67.6 67.0 55.6 r 77.5 75.6 67.Or 50.7 50.2 45.3 66.9 60.8 42.1 48.9 50.7 43.9 66.0 53.5 35.6 - 3.6 + 1.0 - 3.1 - 1.3 -12.0 -15.4 -27.7 -24.3 -21.0 -14.8 -29.2 -46.9 Stocks of goods All stores....................................... Department............................. Men’s apparel......................... Women’s apparel...........'. . .. Shoe............................................ Credit........................................ 67.4 62.0 60. lr 84.4 69.5 72.4r 56.7 52.5 61.2 85.3 54.4 53.9 54.2 49.9 48.8 80.0 56.5 55.9 - 4.4 - 5.0 -20.3 - 6.2 + 3.9 + 3.7 -19.6 -19.5 -38.8 - 5.2 -18.7 -22.8 Rate of stock turnover 2 months (actual, not indexes) 55.8 55.1 46. lr 57.1 61.2 59.6r 41.6 41.2 46.6 59.9 48.0 27.8 40.1 41.8 36.4 48.6 43.3 31.7 64.7 59.0 58.2r 79.4 65.3 71.Or -26.0 -25.2 -23.0 -26.2 -30.6 -45.9 50.4 46.5 48.7 73.1 51.1 51.2 52.0 47.4 47.6 75.2 53.1 54.8 - 9.3* 0.54 STOCKS 75 k SALES 58.5 30.7 90.8 32.3 47.0 86.8 26.8 21.6 43.9 56. Op 39.6 77.5 32.6 40.6 83.2 30.0 23. Op 46.9 57.8 104.9 36.0 56.5 65.0 63.6 53.4 61 .2 - 4.3 +29.0 -14.6 + 0.9 -13.6 - 4.1 +11.9 + 6.5 + 6.8 -13.7 -29.5 — 17.1 -24.5 -15.8 - 4.3 -36.0 -51.1 -10.2 - 2.7 - 3.7 0.0 - 4.4 - 2.1 - 2.6 - 2.0 - 5.6 -14.8 -28.7 -11.4 -24.1 -22.4 - 5.8 -33.7 -51.9 -26.4 -17.4 - 6.3 -19.5 -26.1 -17.4 -10.3 -20.3 -14.5 59.0 39.9 95.4 36.3 42.9 80.8 38.0 33.4 51.2 51.9 18.7 93.5 26.2 31.5 80.7 21.2 12.5 45.7 51.3p 28.1 79.0 27.4 36.1 77.4 24.3 16.3p 46.0 69.9 58.4 57.6 114.2 106.7 107.0 43.4 33.8 34.9 71.9 56.1 r 53.1 67.6 81.8 69.1 73.0 66.0 65.5 59.0 47.4 47.0 70.9 63.5 60.6 4 50 ■ 125 -ff\, AL\ ■,T\\ . IOO STOCKS SALES iSrw \ 75 \ 50 25 + 1.5* 13.2 14.4 21.8 35.1 23.2r 23.7 19.4 28.4 20.7 10.3 23.8 14.8 58.0 43.5r 40.5 9.2 43.7 11.3 59.7 33.3 28.0 13.lr 10.6 15.5 160.4 97.6 98.8 91.0 111.6 96.1 48.0 41.8 46.2p 42.9 31.4 31.2 43.8 29.7 29.6p 104.2 91.0 93.9p 103.2 122.8 118.5 59.9 17.7 21.1 27.1 23.2r 21.3 21.3 10.9r 11.3 91.4 91.6 62.7 94.1 25.9 23.9 82.6 78.2 66.2 51.6r 100.2 84. lr 121.8 97.1 93.8 96.1 49.1 48.1 73.8 52.8 134.2 133.3 60.6 53.2 96.9 55.1 24.2p 80.4 47.6 84.4 119.5 90.6p 58. Op 58.1 133.8p 51.5 + 9.1 + 2.2 - 6.3 -30.4 - 6.9 -18.6 -15.9 -19.1 + 1.2 -13.9 +10.5 - 0.6 - 0.3 + 3.2 - 3.5 + 19.2 - 8.2 + 3.7 + 2.1* + 5.8 -41.4 + 1.3 + 2.8 - 7.8 + 0.4 +23.1 - 3.4 +20.6 +10.0 + 0.4 - 3.2 -33.9 -32.5 -31.7 -56.7 -30.2 -78.9 -53.1 -31.6 -38.4 + 5.6 - 3.7 -27.3 -32.4 - 9.9 +14.8 -64.8 -21.4 -46.9 - 4.6* + 6.0 -12.1 - 6.6 - 2.7 -28.1 -15.8 - 1.9 - 5.7 +18.1 -21.3 - 0.3 -15.0 -33.8 -37.6 -36.5 -55.9 -38.7 -76.6 -53.7 -20.5 -36.0 + 3.8 - 9.9 -28.5 -33.1 - 8.7 +18.8 -68.8 -27.3 -49.7 - 7.0* + 1.9 -14.4 - 8.0 - 5.4 -22.0 -15.1 - 3.2 - 0.5 + 2.8 -26.2 - 2.4 -15.0 0.66 22.5 36.9 29.0 26.6 55.7 44.1 64.5 15.8 157.2 96.5 49.5 46.0 44.7 108.4 112.5 41.9 26.0 20.4 86.1 94.2 81.5 23.9 69.4 66.2 100.2 127.9 103.8 49.1 72.3 132.9 63.6 12.8 22.7r 18.8 15.7 40.9r 9.9 33.0 12.7r 99.6 113.8 42.2 32.0 30.3 94.6 120.3 12.4 21.6r 10. Or 80.4r 101.3 64.9 23.1 64.1 51. lr 84. lr 99.0 99.4 48.1 47.5 132.7 53.2 14.8 24.9 19.8 11.5 38.9 9.3 30.2 10.8 96.8 101.9 47.6p 33.5 30.2p 97.7p 129.2 14.8 20.4 10.8 82.1 98.7 71.6 22.7p 67.5 47.6 • 84.4 125.5 97.9p 58. Op 56.9 132.5p 54.1 SHOE STORES A •-* \ __ \a 100 ) STOCKS r-Revised. 9 manufac XV SALES 75 Vr\V 50 25 CREDIT STORES xf\. SALES /.-A 75 ST0CKS V' 50 25 1930 * Computed from data unadjusted for seasonal variation. p-Preliminary. turing indexes were revised from May 1932—See table on page 4, column 1. DigitizedPage Eight for FRASER . W women’s apparel stores 64.9 56.2 93.5 43.2 48.2 86.9 46.9 47.0 52.2 Rate of stock turnover 2 months (actual, not indexes) Pig iron.............................................. Steel.................................................... Iron castings..................................... Steel castings................................... Electrical apparatus...................... Motor vehicles................................. Automobile parts and bodies.... Locomotives and cars................... Shipbuilding..................................... Silk manufactures........................... Woolen and worsteds.................... Cotton products.............................. Carpets and rugs............................. Hosiery.............................................. Underwear........................................ Cement.............................................. Brick................................................... Lumber and products.................... Bread and bakery products......... Slaughtering, meat packing......... Sugar refining................................... Canning and preserving............... Cigars................................................. Paper and wood pulp.................... Printing and publishing................ Shoes.......................... ........................ Leather, goat and kid................... Explosives......................................... Paints and varnishes..................... Petroleum products........................ Coke, by-product............................ men's apparel stores 100 25 Stocks of goods Total of all lines......................... 70.0 59.4 Drugs......................................... 112.0 108.9 Dry goods................................. 44.7 36.0 Electrical supplies.................. 76.5 59.lr Groceries................................... 78.7 66.4 Hardware.................................. 70.9 65.3 Jewelry...................................... 67.0 54.5 Paper.......................................... 71.6 64.8 Output of manufactures 50 0.49 Wholesale trade Sales Total of all lines......................... Boots and shoes...................... Drugs......................................... Dry goods................................. Electrical supplies.................. Groceries................................... Hardware................................. Jewelry...................................... Paper......................................... \/ V 50 1931 1932 1933
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