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THE BUSINESS REVIEW i . FEDERAL RESERVE BANK,,, W8^k OF PHILADEI^SJ^ % APRIL 1, 1941 *77 DlVi'fSfOL Business and banking activity in the Third Federal Reserve District has expanded further. Markets generally are active. A large volume of new orders for a wide variety of manufactured goods is being received, inventories at factories and distributive establishments are being increased somewhat, and industrial operations are still ad vancing. Despite increased production, backlogs continue to accumulate. types of savings securities are to be offered by the Treasury, and to accelerate production regional De fense Contract services have been established in the Federal Reserve Banks and branches. These devel opments will be more fully explained in a supple ment to The Business Review to be issued shortly. Industrial production in this district in February increased further. Manufacturing activity in both producers’ and consumers’ lines expanded and is Employment has increased further. Wage in above the levels of a year ago. Output of electric comes are rising as a result of more and steadier power, anthracite, and bituminous coal was well work, increased overtime, and some advances in sustained in February. Production of crude oil basic rates of pay. Working capital requirements declined somewhat. of industry are substantially greater than a year Construction activity in February receded from ago, and the demand for bank credit has become the unusually high levels of the preceding months. active. Expanding business and consumer buying power, more active demand for goods, and potential Operations continue well above a year ago, how shortages of key labor, materials, and equipment ever, especially in the case of commercial and have stimulated advances in prices of commodities. industrial buildings, and further gains are in pros Particularly sharp increases have occurred re pect. cently in prices of imported materials. Quotations Wholesale and retail trade expanded substan on securities generally have fluctuated narrowly tially in February and was considerably above last during the past several weeks owing largely to un year. The gains appear to have been extended in certainty arising from impending developments in March, and an active spring season is in prospect. the war. Freight-car loadings have been fairly well main Defense expenditures by the government in this tained near the previous high levels. and other districts are still increasing. Large Bank deposits in this district have reached new orders are being placed locally for ships and a peaks, and -reserves have expanded further. The wide variety of other products required by the demand for funds has been increasingly active, Army and the Navy. Orders for airplanes and as reflected in sustained advances in circulation and equipment in this area have not yet been large, but in commercial loans. Higher levels of business are increasing as a result of new and expanded pro and extension of subcontracting under the defense ductive facilities. program are expected to accentuate this trend dur As an aid in financing the defense program, new ing the next several months. Page One PRODUCTION AND DISTRIBUTION EMPLOYMENT AND PAYROLLS IN PENNSYLVANIA PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT PER CENT ELECTRIC POWER , PRODUCTION (scale at right) PAYROLLS OUTPUT OF MANUFACTURES ■*Vloadings or merchandise EMPLOYMENT AND MISCELLANEOUS FREIGHT 40 j ADJUSTED FOR 5EAS0NAL VARIATION 1937 1938 1939 1940 The demand for goods manu factured in this distiV't has been increasingly ac tive, and the volume otf inquiries and sales in the month ended the middleV>f March was substantially larger than a year ago. ^Orders for steel and other heavy goods at plants in this district have increased further; sales of building materials have again ex panded, following a temporary lull in the markets earlier in the year; and new orders for a variety of textile products have been unusually large. Backlogs in virtually all lines of manufacturing are still rising despite high levels of operations. Stocks of finished goods at producing plants showed little change in the past month and were about the same as a year earlier, except in the case of textiles, where substantial decreases were reported, and building materials, where inventories are being accumulated in anticipation of an active season. Stocks of raw materials were increased further in the month and were substantially above a year ago. Some ordering in anticipation of pos sible shortages has occurred in certain lines, but for the most part the accumulation of supplies ap pears to be in line with requirements. Employment in Pennsylvania factories increased about 2 per cent from January to February and wage disbursements were expanded by 6 per cent, or about twice the usual seasonal gain. More than 1,000,000 workers were employed at wages total ing over $27,900,000 a week, representing the larg est volume of employment and payrolls in the State since 1929. The gains from January to February were wide spread. Preliminary reports indicate further gen eral advances in employment and payrolls in March, especially at plants manufacturing defense equipment, other steel products, and textiles. Manufacturing. Page Two 1935 1936 1937 1938 1939 1940 Wage payments in the heavy goods industries in February increased 5 per cent to a new high record and were 38 per cent above February 1940. Particularly large gains were reported at fac tories producing automobiles and parts, at rail road repair shops, and in the nonferrous metals industries. Further advances were also reported at iron and steel mills and at factories producing forgings and such finished goods as machinery, engines, electrical apparatus, and tools. In the consumers’ goods industries, gains were about as large as were to be seasonally expected, with some improvement being shown in the case of certain textiles and foods. Compared with February 1940, wage payments in the lighter lines showed an in crease of 9 per cent. Average hourly earnings of factory workers in Pennsylvania increased to a new high of nearly 75 cents. Working time also increased to an aver age of 40 hours a week, so that weekly income advanced to $29.65, the highest in records started in 1923 and 15 per cent above a year ago. In southern New Jersey employment increased 3 per cent from January to February and wage payments expanded 5 per cent to levels 16 and 36 per cent respectively above February 1940. In Delaware, the number of factory workers was re duced slightly in the month, but wage disburse ments increased 7 per cent. The output of manufactured goods in this district increased 3 per cent more than seasonally in Feb-, ruary, improvement being equally distributed among durable and nondurable lines. In the case of heavy goods, the production of which was nearly 50 per cent above a year earlier, the principal gains in the month were at shipyards and cement ACTIVITY IN THE STEEL INDUSTRY EMPLOYEE-HOURS IN PENNSYLVANIA EMPLOYEE-HOURS IN PENNSYLVANIA PER CENT PERCENT STEEL PRODUCING INDUSTRIES COTTON GOODS STEEL CONSUMING INDUSTRIES • / WOOLENS './■"and worsteds HOSIERY 1936 1937 1938 1939 1940 1941 The output of bituminous coal increased from plants. Activity in the shipbuilding industry in this area was more than 85 per cent above a year 420,800 tons a day in January to 430,500 tons in ago, and the output of cement was more than February, when there is usually a decline, and was double that of February 1940. At plants manu the largest since November 1939. During the first facturing metal products, the gain was slightly two months of 1941, output has been about 14 per smaller than seasonal in February, as in some lines cent above 1940. operations approximate capacity levels. The market for by-product coke remains un Production of consumers’ goods in February usually active, and operations in February were at was about 2 per cent greater than a year ago. The the highest levels in records going back through principal gains in the month were in the output of 1923. Output of coke ovens and oil refineries, re textile and leather products. With the exception spectively, was 16 per cent and 19 per cent above a of certain textiles, all lines were sustained at or year ago. above the levels prevailing twelve months earlier. Building. Construction activity in this district Output of electric power was well maintained slackened somewhat from January to February, in February, and total sales increased about season but operations continued above the level of early ally. Sales to industry expanded 5 per cent more 1940. New contracts awarded also decreased in than was to be expected and were 26 per cent larger the month and were smaller than a year ago. than a year ago. Prices of building materials in recent weeks have remained close to the fifteen-year peak reached Coal and other fuels. Sales of fuels for domes about the middle of January. tic consumption have been well sustained. In the case of bituminous coal, demand has increased The value of contracts awarded declined 41 per further, reflecting the high level of manufacturing cent in February to approximately $10,900,000, and distributive activity and some accumulation of or 15 per cent less than a year ago. Substantial supplies pending settlement of labor negotiations. decreases in the month were reported in all types Exports of coal and fuel oil early in 1941 were of construction except one and two-family houses smaller than a year ago. Prices of fuels generally and educational buildings, which increased 5 and 2 per cent respectively. Contracts for commercial have been firm. and factory buildings declined sharply, but were Production of Pennsylvania anthracite declined the largest for the month since 1930 and 10 per less than was to be expected from January to Feb cent above the level of a year ago. Compared ruary but was curtailed somewhat further during with last year, pronounced declines occurred in the first part of March. Colliery output averaged awards for apartments and hotels, public works 188,500 tons a day in February as against 191,400 and utilities, and unclassified construction. tons in January, but was the largest for the month since 1936. The volume mined thus far in 1941 In the first two months of this year awards of approximates that of a year ago. contracts totaled $29,300,000, or 18 per cent more Page Three HOURLY EARNINGS AND WORKING TIME DISTRIBUTION PENNSYLVANIA FACTORIES PHILADELPHIA FEDERAL RESERVE DISTRICT HOURS CENTS 80 PER CENT 19 23-25AVG.-I00 100 RETAI AVERAGE HOURLY EARNINGS 70 80 nft rj 60 60 _V _ rvv7 W-J » • 50 1937 1938 1939 1940 Vi V" HOURS WORKED 1936 TRADE SALES \l , TO TAL FREIGHT CAR LOADINGS ADJUSTED FOR SEASONAL V tRIATION 1936 1937 1938 194 1 than in 1940. This gain reflected substantial in stores and somewhat greater in other lines. Com creases in the case of industrial and commercial pared with a year ago stocks at department stores buildings, and small dwelling units. showed no change, were lower at shoe stores, and somewhat higher in the case of establishments spe Trade. Distributive activity advanced further in cializing in apparel and durable consumers’-goods. February from earlier high levels, and freight Wholesale trade-sales increased 10 per cent from shipments and sales to retailers and consumers January to February and were nearly one-third were substantially above a year ago. Sales at more than in February 1940. Increases in the retail increased considerably more than seasonally month were shown in all reporting lines, especially in February and, excepf for a short period of bad at establishments selling footwear, electrical sup weather, improved further in March. The volume plies, and jewelry. The largest gains over a year of business in all reporting wholesale lines also ago continued to be in sales of electrical supplies increased substantially in the month. The move and hardware. Inventories at wholesale establish ment of freight expanded somewhat less than sea ments increased about 2 per cent in the month and sonally from the unusually high levels which have were 5 per cent above a year ago. prevailed since last fall. Further substantial in Freight shipments by rail increased less than creases in trade are in prospect during the next seasonally in February from the earlier peak levels. several months as little accumulation of inventories Volume was still 25 per cent larger than in Feb has been in evidence and consumer incomes are ruary 1940, and further increases appear to he in approaching record highs. prospect. Shipments of merchandise and miscel Sales by department stores increased 6 per cent laneous commodities increased somewhat less than more than seasonally from January to February seasonally in the month, and loadings of coke and and were 18 per cent larger than a year ago. Some ore, which have been unusually large since last improvement was also in evidence at stores special summer, failed to show the gain that usually occurs izing in shoes and women’s apparel. Sales of dur at this time of year. The movement of coal ex able consumers’ goods by credit stores increased panded as much as was to be expected, but ship less than seasonally, owing in part to the large pur ments of farm products declined. Loadings of all chases of these products in preceding months. The types of freight except grains and livestock products volume of business reported by men’s apparel were well above a year ago. stores declined somewhat more than might have Sales of new passenger automobiles increased been expected. At all types of stores the sales were 30 per cent in February from the high levels of substantially larger than in early 1940. the preceding month. Further gains are in prospect Stocks of goods at retail establishments have this spring despite unusually large sales thus far been increased somewhat further. The expansion this season. Compared with a year ago sales in the was of about seasonal proportions at department first two months showed a gain of about 15 per cent. Page Four COMMERCIAL REPORTING MEMBER BANKS MEMBER BANK RESERVES LOANS PHILADELPHIA FEDERAL RESERVE DISTRICT PHILA. FED. RES. OISTRICT MILLIONS MILLIONS TOTAL 1940 REQUIRED 1939 JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT. OCT. NOV DEC. The expansion in industry and trade under the stimulus of the National De fense Program has been accompanied by an un usually active demand for commercial credit. De posits at the member banks, sustained by the growth in hank credit and by funds transferred from other districts, have advanced to new high levels despite heavy tax payments in the past month. Banking conditions. '32 '33 34 35 Demands upon the credit facilities of the Federal Reserve Bank continue light. In the past month discounts for members have declined approxi mately $300,000 to $157,000. Advances to indus try for working capital also declined slightly to $2,276,000, but continued larger than at any other Federal Reserve bank. The amount of govern ments held by this bank was unchanged. The loans and investments of the reporting member banks increased $9,000,000 to $1,242, 000,000, the highest point in recent years. One-half of the increase of $92,000,000 over a year ago has been in commercial loans, which expanded nearly 23 per cent in the twelve months. Since late Janu ary larger than seasonal increases have been shown in this type of accommodation, the total gain in the past four weeks amounting to $8,000,000. Reserves advanced to a record high of $731, Other loans have declined slightly since February 500,000 on the 15th and at $721,800,000 on 19, owing chiefly to a shrinkage in loans made to March 19 were still $20,400,000 greater than a purchase or carry securities. month earlier. This increase was due principally Investments of the reporting banks have been to a gain of $63,000,000 in transactions with other districts, chiefly in the last week of the period. Ad rising slowly since the turn of the year and still ditional funds were supplied by withdrawals from account for about three-fifths of the earning assets. nonmember clearing balances and by the deposit of The increase of $2,000,000 in the past month to outstanding officers’ checks of the Federal Reserve $754,000,000 has been due to the purchase of governments. Holdings of United States bonds in Bank. creased $7,000,000 and some guaranteed securities Income tax receipts were substantially greater were added; Treasury notes declined $4,000,000 than a year ago, hut with the continuing heavy and corporate and municipal obligations, $2,000, outgo for defense purposes and interest payments 000. on the national debt, aggregate Treasury receipts locally were only $35,000,000 larger than dis Deposits have increased 10 per cent over the bursements in the four weeks ended March 19. past twelve months to record levels. Balances Funds also were taken from the market by the aggregating $1,869,000,000 on March 19 were further expansion in currency demand, which since $30,000,000 larger than a month earlier, reflecting late January has been materially heavier than a gains in individual and corporate, municipal, and interbank deposits. year ago. Cash resources of the banks continue exception ally high. In addition to the large balances with correspondents, the member banks in this district carried reserves averaging $717,500,000 in the first half of March. In the case of banks in Phila delphia these reserves exceeded requirements by 121 per cent and at members elsewhere in the dis trict were 87 per cent larger. Page Five BUSINESS STATISTICS Production Employment and Income Philadelphia Federal Reserve District in Pennsylvania Adjusted for seasonal variation II Not adjusted Industry, Trade and Service | Per cent d lange Indexes: 1923-5 = 100 Feb. Jan. 1941 1941 INDUSTRIAL PRODUCTION MANUFACTURING................ 98p 98p 116p 85p 120p 76p 161 80p 101 51 137 113p 89 Metal products......................... Textile products....................... Transportation equipment. . . Food products........................... Tobacco and products............ Building materials.................... Chemicals and products......... Leather and products............. Paper and printing.................. Individual lines 92 Pig iron........................................ Steel.............................................. 106 86p Iron castings.............................. Steel castings............................. 136 Electrical apparatus................ 155 Motor vehicles.......................... 34 Automobile parts and bodies. 100 Locomotives and cars............. 51 Shipbuilding............................... 808 Silk manufactures.................... 74 Woolen and worsteds.............. 66 Cotton products........................ 48 Carpets and rugs...................... 117 Hosiery........................................ 87 Underwear.................................. 130 Cement........................................ 76 65 Brick............................................ Lumber and products............. 29 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...................... COAL MINING.......................... Anthracite.................................. Bituminous................................. CRUDE OIL................................ ELEC. POWER—OUTPUT... Sales, total................................. Sales to industries.................... BUILDING CONTRACTS TOTAL AWARDS!................... Residential t............................... Nonresidentialt......................... Public works and utilities!... Feb. 1940 96 95 113 83 122 72 145 82 101 49r 131 101 88 82 81 ,80 83 86 76 r 92 77 99 32 119 109 89 91 109 96 137 155r 32 102 49 686 70 60 52 105 81r 134 r 66 67 r 30 r 76 81 68 74 103 19 63 40 433 70 55 47 142 92 131 37 38 25 Mo. ago 1941 from Feb. Jan. 1941 1941 2 Year mos. ago 1940 + 2 + 3 + 3 + 3 - 2 + 5 + 11 - 2 0 + 4 + 5 + 12 + 1 +19 4-20 4-46 4- 2 +38 + i +75 + 3 + 2 +63 + 15 + 3 0 + 1 - 3 -10 - 1 0 + 6 - 1 + 5 +18 + 6 + 11 - 8 + 12 + 9 - 3 +15 - 3 - 2 + 3* 96 95 95 0 77 134 59 -43 70p 70 61 +1 100 101 98 - 1 78 79 77 + 2 91 + 1 90 90 139 126 133 + 11 87 + 14 88p 78 146 122 99 4-20 89 91 85 - 2 147 + 6 164p 154 147 122 - 4 141 67 64 511 + 5 65 62 491 + 5 83 77 68 + 7 396 423 444 - 6 302 302 r 261 0 312 311 264 0 231 219 + 5 183 64 64 84 55 69 75 88 60 53 47 47 96 Employment Feb. 1941 fr om - 7 -15 - 4 - 9 Feb. 1940 +14 +15 +37 0 +32 - 3 +62 + 4 - 3 +44 + 7 - 4 0 99p 99p 95 93 83 82 122p 82p 162 79p 85 44 137 120p 89 118 74 145 80 84 42 128 105 88 88 81 93 76 84 28 119 116 89 +21 +15 +30 +22 +28 +24 +84 +66 +50 +48 +83 +63 +59 +43 +28 +30 +86 +74 + 3 +20 + 13 + i 0 -18 -19 - 5 -10 - 1 - 3 +108 +69 +69 +51 +17 +11 + 1* + 1* 0 - 3 +29 +22 +16 +16 + 2 - 6 + 3 +1 - 1 0 + 5 0 + 1 -12 +47 +41 + 5 + 6 +11 + 1 + 16 + 8 +31 + 8 +33 + 3 +22 +14 -10 -10 +16 +13 +18 +14 +26 +20 95 111 88 152 148 34 108 52 792 79 68 51 119 91 141 53 62 28 90 97 100 66p 84 79 90 146 95p 146 87 162p 149 73 71 90 396 320 337 228 88 107 88 145 146r 28 101 48 r 700 71 60 53 100 84 131r 46 62r 28 r 88 105 92 68 83 77 90 128 82 122 82 153 147 74 72 88 406 321 320 212 78 85 69 83 99 19 68 41 425 74 57 r 50 145 96 143 26 37 24 90 97 77 56 83 77 91 139 94 99 83 146 128 56 54 74 444 277 286 181 64 45 85 66 76 60 95 77 +22 +35 +78 -43 +34 +40 +97 —34 * Unadjusted for seasonal variation. f 3-month moving daily average centered at 3rd month. Percentage change— February 1941 from month and year ago Allentown........ Altoona............ Harrisburg... . Johnstown.... Lancaster......... Philadelphia... Reading........... Scranton.......... Trenton............ Wilkes-Barre. . Williamsport. . Wilmington. . . York.................. Payrolls Employment Jan. 1941 Feb. 1940 Jan. 1941 Feb. 1940 +3 0 +2 0 +2 +2 0 +2 -1 +5 +2 -1 -3 +16 + 1 +18 + 8 0 +14 + 6 + 3 +12 + 4 + 7 +16 +19 + 8 + 6 + 5 + 6 + 5 + 7 + 5 + 7 - 1 +10 + 9 + 7 - 1 +39 + 7 +33 +21 +12 +33 +26 +14 +27 +22 +14 +33 +46 Building permits value Jan. 1941 Page Six GENERAL INDEX............ Manufacturing...................... Anthracite mining................ Bituminous coal mining . . . Building and construction.. Quar. and noumet. mining. Crude petroleum prod......... Public utilities...................... Retail trade............................ Wholesale trade.................... Hotels...................................... Laundries................................ Dyeing and cleaning........... +1 + 8 +2 +11 +1 - 2 + 1 +1 -7 + 6 -2 + 10 -2 + 2 -1 + 4 +i + 4 0 + 2 0 - 4 -1 + 6 0 +14 +23 +28 +38 +17 +30 +31 - 3 + 4 + 6 + 7 + 4 188 + 4 257 + 6 77 +17 233 + 2 66 - 4 193 - 6 159 0 113 0 125 +1 130 +1 122 +1 137 0 119 + 2 Employment* +22 Payrolls* Per cent Per cent Feb. change from Feb. change from 1941 index Jan. Feb. index Jan. Feb. 1941 1940 1941 1940 Index: 1923-5 = 100 TOTAL..................................... Iron, steel and products . . . Nonferrous metal products. Transportation equipment. Textiles and clothing.......... Textiles................................. Clothing................................ Food products....................... Stone, clay and glass........... Lumber products................. Chemicals and products . . Leather and products......... Paper and printing.............. Printing................................. Others: Cigars and tobacco............ Rubber tires, goods........... Musical instruments......... 98 100 153 75 94 87 121 105 87 61 99 94 99 90 +2 +2 +4 +3 +3 +2 +5 0 +1 -3 +1 +3 +1 0 66 91 70 +3 +4 0 +22 +12 + 7 + 1 0 0 105 141 207 84 94 87 127 112 93 57 113 100 107 99 + 6 + 5 + 6 +12 + 9 + 8 +14 + 2 + 2 - 2 +1 + 7 + 3 + 2 +28 +40 +40 +33 +n +n + 12 + 4 +43 +25 +10 +16 + 4 + 3 + 9 + 10 + 9 59 110 72 + 4 + 8 - 2 +20 +28 +10 +11 +19 +23 +20 + i + 2 0 * Figures From 2,429 plants. Hours and Wages Factory workers Averages February 1941 and per cent change from year ago Retail sales 120 153 67 110 42 99 134 99 105 122 99 106 100 Manufacturing p—Preliminary, r—Revised. Weekly working time* Hourly earnings* Aver age Ch’gf Aver Ch’gf hours age Weekly earningsf Aver Ch’ge age Debits Feb. 1940 Jan. 1941 Feb. 1940 Jan. 1941 Feb. 1940 - 27 - 39 - 13 + 166 - 80 - 88 - 71 +327 - 41 - 79 - 23 - 4 - 16 +198 - 56 - 77 +115 +386 - 44 + 25 - 74 - 18 - 59 - 92 +147 +553 +26 +28 +ii +43 - 6 + 7 +21 + 5 +14 + 5 +24 + 7 +23 +17 + 5 +18 +27 + 9 +20 +15 + 8 +25 + 18 +22 -15 -16 - 9 — 5 -10 -11 -17 -13 -27 -16 -17 -33 - 4 + 8 + 9 + 9 + 8 + 7 + 11 + 12 -10 - 7 +16 +20 +21 +27 * Area not restricted to the corporate limits of cities given here. ludexes: 1932 = 100 52 33 48 115 Local Business Conditions* Payrolls Per cent Per cpnt Feb. change from Feb. change from 1941 1941 index Jan. Feb. index Jan. Feb. 1941 1940 1941 1940 TOTAL............................. Iron, steel and prod... . Nonfer. metal prod.. . Transportation equip.. Textiles and clothing. . Textiles ...................... Clothing....................... Food products ..... Stone, clay and glass. Lumber products......... Chemicals and prod... Leather and products. Paper and printing. . . Printing........................ Others: Cigars and tobacco.. . Rubber tires, goods. Musical instruments. 40 0 +10 $.746 41.4 +13 .825 40.0 + 8 .676 42.7 + 9 .822 36.8 + 7 .542 36.9 + 6 .548 36.4 + 9 .519 39.0 - 1 .614 37.3 +13 .721 37.9 + 6 .573 38.2 + 1 .811 39.7 + 9 .559 39.0 + 1 .733 36.7 0 .937 +5 $29.64 +4 33.99 +3 27.01 +3 35.14 +4 19.89 +4 20.16 19.10 +5 +3 24.54 +3 26.78 +5 21.43 0 30.69 +4 22.05 +3 29.52 +4 35.29 (-15 -18 -n -12 -1U -10 -11 - 1 - -15 - -12 -- 1 - -14 -- 3 H 2 36.2 38.2 40.7 -1 +1 +4 +11 + 16 1 * Figures from 2,209 plants. +11 +15 - 5 .452 .734 .665 16.38 28.01 27.05 f Figures from 2,429 plants. Distribution and Prices Adjusted for seasonal variation Per cent change Wholesale trade Unadjusted for seasonal variation Feb.1941 from 1941 from Month Year ago ago mos. 1940 +10 +44 + 9 +26 + 2 + 3 + 12 + 5 +33 +44 +24 +82 + 13 +56 +32 +20 +25 +45 +13 +58 + 11 +49 +42 + 7 + 2 + 2 0 + 2 + 5 + 1 0 + 5 -14 +34 +12 +18 - 1 -16 Sales Total of all lines................... Boots and shoes.................. Dry goods............................. Electrical supplies.............. Groceries............................... Hardware............................. Jewelry.................................. Paper..................................... Inventories Paper..................................... Source: U. S. Department of Commerce. Commodity prices Index: 1926 = 100 Basic commodities 7 industrial.............. 7 agricultural........... Wholesale (813)* . . Raw materials........ Finished products.. Farm.......................... Food........................... Other......................... Retail food* (1935-9=100)___ Philadelphia............. Scranton................... Per cent change from Feb. 1941 Month Year Aug. 1939 ago ago 88 57 81 74 83 70 73 84 -2 0 0 -1 0 -2 0 0 +9 +2 +2 +2 +3 +2 +3 +1 +24 + 18 + 7 +11 + 6 + 15 + 9 + 5 98 95 98 0 0 0 +1 +1 +1 + 5 + 2 + 6 * Source: U. S. Bureau of Labor Statistics. Not adjusted Per cent change Indexes: 1935-9 = 100 Feb.1941 1941 Month Year ago ago 2 mos. 1940 +13 +14 + 9 + 5 +20 +12 leb. Jan. Feb. 1941 1941 1940 RETAIL TRADE Sales Department stores—District........ Philadelphia Men’s apparel.................................... Women’s apparel.............................. Shoe...................................................... Credit................................................... 118p 116 112p 107 120 127p 100 98 102 96 101 114 + 6 + 5 — 10 + 2 + 5 5 + + + + + + Inventories Department stores—District........ Philadelphia Women’s apparel.............................. Shoe...................................................... Credit................................................... 100 lOlp 101 97 97 r 94 95 101 99 116 105p 95 113 115p 111 0 0 + 2 + 11 + 3 0 + 3 + 6 - 9 + 2 FREIGHT-CAR LOADINGS—TOTAL.. Merchandise and miscellaneous.................. Merchandise—l.c.1........................................... Coal...................................................................... Ore........................................................................ Coke.................................................................... Forest products................................................ Grain and products......................................... Livestock............................................................ 137 135 100 120 289 166 97 93 97 144 141 105 120 335 172 105 112 99 110 108 92 100 197 114 67 102 96 4 4 5 0 14 3 8 17 1 + 25 + 25 95 100 87 MISCELLANEOUS Life insurance sales.......................... New passenger auto, registrations Hotels Occupancy........................................ Income, total................................... Business liquidations Number............ ................................ Amount of liabilities...................... Check payments............................... 111 lllr 124 105 114 134 * Computed from unadjusted data. 116 105 90p 80 89 81r 89p 113 76 86 87 80 93p 76 76 75 81 69 68 83 97p 90 93 88 100 87 98p 85 Hop 106 97 90 94 108 113 123 123 98 131 69 183 96 96 93 121 121 95 128 70 177 96 105 103 100 99 90 109 47 126 66 106 91 5 + 30* + 30* + 3 109 89 +14* 136p 104 100 105 3* + 8* 4* + 15* + 6* llOp 106 +12* 123p 117 102 107 +15* 133 +20* 112 + S 118 100 38 106 — — — — — — + + 120 18 19 9 U 18 12 Feb. Jan. Feb. 1941 1941 1940 + + + + + +15 +16 + 4 + 8 +53 +25 +42 - 7 - 2 21 47 46 45 10 2 4- 10* + 33* 4-190* +190* + 2 + 13 p—Preliminary. 121 38 118 r—Revised. BANKING STATISTICS Reporting member banks (000,000’s omitted) Changes in— 19, 1941 Four weeks One year Assets Commercial loans................. $ Open market paper............. Loans to brokers, etc........... Other loans to carry secur.. Loans on real estate............ 249 35 24 30 49 Other loans............................. 101 +$ 8* +$46* + 1 + 8 0 - 1 - 2 - 1 - 1 ~ 1 0 - 1 + 1* + 9* Total loans........................... $ 488 +$ 7 +$59 Government securities........ $ Obligations folly guar’teed. Other securities..................... 387 90 277 +$ 3 + 1 - 2 +$39 - 9 + 3 Total investments.............. $ 754 +$ 2 +$33 Total loans & investments $1,242 Reserve with F. R. Bank.. 547 Cash in vault......................... 23 Balances with other banks. 209 Other assets—net................. 81 +$ 9 + 23 0 - 2 + i +$92 + 99 + 2 - 17 - 3 Liabilities Demand deposits, adjusted $1,118 Time deposits........................ 259 U. S. Government deposits . 10 Interbank deposits............... 482 Borrowings............................. Other liabilities..................... 17 Capital account.................... 216 +$22 - 1 0 + 9 0 + 2 - 1 +179 - 4 - 44 + 40 0 + 1 + i Changes in weeks ending- Philadelphia Federal Reserve District (Millions of dollars) Feb.26 Mar. 5 Mar. 12 Mar. 19 Changes in four weeks Sources of funds: Reserve bank credit extended in district. . . Commercial transfers (chiefly interdistrict) Treasury operations.......................................... - 3.2 +12.9 + 9.1 +0.2 -8.3 +4.4 +0.8 -2.4 +6.6 + 0.3 +61.0 —55.5 - 1.9 +63.2 -35.4 +18.8 -3.7 +5.0 + 5.8 +25.9 + 3.2 +17.9 - 2.3 - 0.0 +4.7 -6.1 -2.1 -0.2 +2.7 +3.3 -1.0 -0.0 + + 0.0 5.3 0.2 0.7 + 10.6 +20.4 - 5.6 + 0.5 +18.8 -3 7 +5.0 + 5.8 +25.9 Uses of funds: Currency demand.............................................. Member bank reserve deposits....................... “Other deposits” at reserve bank.................. Member bank reserves (Daily averages: dollar figures in millions) Phila. banks: 1941: Feb. 1-15.. Feb. 16-28.. Mar. 1-15. . 1940: Mar. 1-15.. Country banks: 1941: Feb. 1-15.. Feb. 16-28.. Mar. 1-15. . 1940: Mar. 1-15.. Held Re quired Ex cess Ratio of excess to re quired $505.8 $231.3 $274.5 119% 515.7 234.1 281.6 120 * 525.3 421.6 209.7 211.9 101 * 190.4 102.1 192.4 102.7 192.2 181.9 96.0 88.3 89.7 86 * 87 ” 85.9 90 * Federal Reserve Bank of Phila. (Dollar figures in millions) Changes in— Mar. 19, 1941 Four weeks Bills discounted........ $ 0.2 Bills bought............... 0 Industrial advances. 2.3 U. S. securities......... 174.8 -$ 0.3 0 - 0.1 0 -$ 0.0 0 - 1.0 - 28.1 Total........................ Note circulation.... Member bk. deposits ,U. S. general account Foreign bk. deposits. Other deposits........... Total reserves........... Reserve ratio............. -$ 0.4 + 7.5 + 20.4 + 33.0 - 0.2 — 5.6 + 57.5 + 0.7% -$29.1 + 75.4 +108.5 + 4.9 + 38.3 - 0.4 +258.5 + 5.3% $177.3 421.4 721.8 71.4 76.0 23.8 1162.4 88.4% One year * Revised. Page Seven National Summary of Business Conditions Industrial activity and employment increased further in February and the first half of March. Buying by producers and consumers continued in large volume and wholesale commodity prices, particularly of imports, advanced. INDUSTRIAL PRODUCTION Production Federal Reserve index of physical volume of production, adjusted for seasonal variation, 1935-39 average = 100. Subgroups shown are ex pressed in terms of points in the total index. By months, January 1935 to February 1941. WHOLESALE PRICES OF BASIC COMMODITIES Bureau of Labor Statistics’ indexes based on 12 foodstuffs and 16 industrial materials, August 1939 = 100. Thursday figures, January ^ 3, 1935 to March 13, 1941. MONEY RATES IN NEW YORK CITY In February volume of industrial output, on a daily average basis, rose more than seasonally, and the Board’s adjusted index advanced from 139 to 141 per cent of the 1935-39 average. Increases in February, as in other recent months, were largest in the durable goods industries where a large proportion of defense program orders have been placed. Activity continued to rise sharply at machinery plants, aircraft factories, shipyards, and in the railroad equipment industries. Steel production fluctuated around 96 per cent of capacity in January and February and rose to 99 per cent in the first half of March. New orders for steel continued large and, despite the high rate of output, unfilled orders increased further. Many orders have been placed for delivery in the second half of this year, reflecting the prospect of heavy consumption and some uncer tainty on the part of steel users regarding future availability of supplies. Output of pig iron, coke, and nonferrous metals was likewise at near capacity rates in February and unfilled orders for these products, too, were at exceptionally high levels. Demand for lumber continued large owing to a high rate of construction activity and output was sustained in large volume for this time of year. Automobile production increased in February and the first half of March to about the peak rate attained last November. Retail sales of new and used cars advanced to unusually high levels. In industries manufacturing nondurable goods, activity continued at the record levels reached in the latter part of 1940. There were further increases in the cotton textile, rubber, and chemical industries and activity at woolen mills also increased, following a temporary reduction in January. In most other lines activity was main tained at the high levels of other recent months. Coal production rose less than seasonally in February but increased considerably in the first half of March when, according to trade reports, there was some inventory accumulation in anticipation of a possible shutdown on April 1 at the expiration of the present contract between the mine operators and the miners’ union. Copper and zinc production increased in February and recently domestic supplies of copper have begun to be supplemented by imports from South America. Output of crude petroleum continued at about the rate that had prevailed during the three preceding months. Value of construction contract awards in February declined somewhat more than seasonally, reflecting decreases in both public and private work, according to reports of the F. W. Dodge Corporation. Awards for public construction, although sharply reduced from the high levels reached in the latter half of 1940, were somewhat above those of a year ago, and awards for private construction were nearly half again as large as in February of last year. Distribution 1935 1936 1937 1938 1939 1940 1941 Weekly averages of daily yields of 3 to 5-year tax-exempt Treasury notes, Treasury bonds callable after 12 years, and average discount on new issues of Treasury bills offered within week. For weeks ending January 5, 1935 to March 15, 1941. MEMBER BANKS IN IOI LEADING CITIES Distribution of commodities to consumers increased more than seasonally from January to February. Sales at variety stores and by mail-order houses were the largest on record, making allowance for usual seasonal changes, and department store sales were also at a high level. Freight-car loadings increased by about the usual seasonal amount. Shipments of miscellaneous freight, consisting mostly of manufactured products, showed an in crease while loadings of forest products rose less than seasonally and grain shipments declined. Wholesale Commodity Prices Prices of a number of basic imports rose sharply from the early part of February to the middle of March. Cotton yarns and gray goods and nonferrous metal scrap showed further increases in this period and there were also advances in prices of some other domestic commodities, including lead, wheat, cotton, and oils and fats. Bank Credit Commercial loans continued to increase at member banks in 101 leading cities in February and the first half of March and these banks also purchased additional Treasury notes and bills issued in connection with the defense program. As a result of the increase in loans and investments, bank deposits showed a further marked advance. United States Government Security Prices Wednesday figures, January 2, 1935 to March 12, 1941. Commercial loans, which include industrial and agricultural loans, represent prior to May 19, 1937 so-called “Other loans” as then reported. Page Eight Prices of government securities increased after February 15, following a sharp decline in the preceding ten weeks. The 1960-65 bonds on March 15 were about 314 points above their price on February 15 and about 114 points below the all-time peak of December 10. The yield on this issue, which increased from 2.03 per cent at the peak in prices on December 10 to 2.30 per cent on February 15, had declined to 2.14 per cent on March 15.
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