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I \\ 0° \0 ,f. i f\v ^ V ■ .'1 , . , v. Stott r’’ '■ •-1 *\o ••i' ':" t-»V ’ * ’ ■ ■r THE BUSINESS REVIEW FEDERAL RESERVE BANK OF PHILADELPHIA APRIL 1, 1941 “ . *' r ]VIaNPOWER remains the most critical factor in war production, as supplies of most basic ma terials balance, and in some cases exceed the military demand, and processing and fabricat ing facilities generally are adequate to imple ment the programs scheduled in 1944. The magnitude of the manpower problem was sug gested earlier this year by the President’s recom mendations to Congress for national service legislation. Its persistence is reflected in the War Production Board’s refusal to permit ex cess supplies of certain war metals to be used in any considerable resumption o:i manufactur ing on civilian account, and the continued delay in beginning even the limited production con templated by so-called “pilot” plants in the Philadelphia, Cleveland, and Kansas City areas. That it is still serious is emphasized also by the insistence of military authorities that the trans fer of manpower from factories and farms to the fighting fronts be accelerated by prompt re vocation of deferments for physically fit men from eighteen through twenty-five. The over-all manpower stringency has grown less severe in recent months to the extent that total requirements appear to be moderating as the nation’s labor force, including personnel in the armed services and in civilian occupations, approaches the record level of 65.7 million per sons anticipated by July 1, 1944. Thus, apart from a net increase of 800,000 in the armed forces and the seasonal expansion of 3.4 million in the demand for agricultural workers, total manpower needs will not change substantially during the current six months, according to re ’ vised estimates by the War Manpower Commis sion. The anticipated increase in military per sonnel compares with 2.3 million inducted dur ing the first half of 1943 ; expanded agricultural requirements may be discounted in part, since it is quite possible they can be met largely as in other years by the employment of members of farm families and youth of school age not in the labor market at other seasons. The need for workers in the munitions in dustries is expected to remain at 9.8 million per sons throughout the first six months, as against an increase of 500,000 reported in the same period last year. Moreover, recent declines in the rate of labor turnover at war plants indicate that the resources currently available are being used more efficiently. Partly in consequence of these encouraging trends, but principally because of increased pro duction goals in a number of munitions cate gories and the military urgency of meeting them promptly, the character of the manpower prob lem has changed considerably as compared with a few months ago. The current situation re flects the development of localized scarcities in certain areas and throughout specific industries, rather than an intensification of the nation-wide shortage of labor which became acute in the latter part of 1943. Accordingly, emphasis has shifted since the turn of the year to the task of achieving maximum efficiency in the use of all available resources, making the immediate problem one of redistribution by directing manConlinued on page 5 The Economy of The Third Federal Reserve District Agriculture Present-day agriculture in the Third Federal Reserve District is characterized by a great va riety of products. Diversification dominates the utilization of land in this section of the country, unlike other areas of the United States which are more dependent upon one cash crop such as cotton in the South and wheat in the Midwest. The variety of farms in this district is due very largely to the many types of soil and dif ferent kinds of land formation. The soil map of the district has the appearance of a patch work quilt with a different agricultural product for each color in the pattern. The accessibility of large urban markets is another factor which has brought about the de velopment of diversified agriculture. The dairy farms of southeastern Pennsylvania supply milk for the Philadelphia metropolitan area; those of the northeastern part of the state ship their products into the New York market. The New Jersey truck farms yield an abundance of green vegetables for the nearby fresh vegetable mar kets. Most of their high-grade tomatoes are packed by the huge canning industry of Camden. Delaware has become a prominent center of poultry farming in response to the growing consumer demand for eggs and related poultry products. Scattered throughout the district are other types of specialty farms. The potato farms of Lehigh and Potter counties, mushroom growing in Chester county, and tobacco production in Lancaster and York counties are outstanding examples of local specialization. Apples are the principal crop of specialty fruit farms in Adams and adjoining counties. Peaches and apples are important tree crops of southern New Jersey. Animal specialty farms have recently developed in Lancaster county where beef cattle are fattened for market. Cash grain farms pro ducing wheat and other grains are found in areas remote from population centers. Agriculture in this district has undergone con siderable change which reflects the adaptation of land utilization in a highly industrialized region. Like the other primary industries al Page Two ready analyzed, agriculture will be appraised with reference to its importance in the Third District, its growth since 1900 and its contribu tion to the nation’s agricultural economy. Agriculture in the Economy of the Third Federal Reserve District , In 1940, agriculture in the Third Federal Reserve District employed 170,000 workers, which represented 15 per cent of all workers employed in the three primary branches of pro ductive activity—mining, agriculture, and manu facturing. In 1939 agriculture produced, how ever, only 9 per cent of total income derived from the three primary industries, as shown in _ Table 1. The value of farm products sold and traded together with those used by farm house holds, amounted to $229 million in 1939, as compared with $1,994 million value added by manufacturing, and $311 million worth of min eral products. TABLE 1 VALUE OF OUTPUT OF THE PRIMARY INDUSTRIES —1939 Third District United States 9% 12 79 21% 11 68 100% 100% Source: Census of Agriculture, U. S. Department of Commerce, Bureau of the Census. Agriculture does not readily adjust its out put to changes in demand because labor is es- sentially a fixed cost and by curtailing produc tion a farmer puts himself out of work. At the same time output varies from year to year be cause of climatic conditions and it is difficult to forecast supply conditions a year in advance and, once the crop is in, it is impossible to change the direction of production. In contrast to this, labor in most industries is a variable cost; and when prices fall, production may be 1 cut, resulting in unemployment. Production in most industries is not dependent upon weather conditions and its direction and output can be changed readily any time in the year. For these reasons production responses in agriculture and industry are quite different; agriculture tends to have more stable production with large fluc- tuations in price, while in industry production tends to fluctuate more and prices less. While total demand for agricultural products is less elastic than for industrial products there is considerable elasticity of demand for indi vidual products. Also an increase in purchasing power leads to an increased demand for the more expensive foods such as beef, butter, milk, eggs, green vegetables, and fruits. By adding greater variety to the diet, these products con tribute materially to the enjoyment of food con sumption which satisfies more than mere physi ological needs. Secular Trends in Agriculture k * • The proportion of the population gainfully employed in an industry is a rough measure of the importance of that industry. In this district workers gainfully employed in agriculture were 264,000 in 1900 but by 1940 the industry em ployed only 170,000 workers, a shrinkage of 36 per cent. The decline in employment is a reflection of both the growing industrialization of the district and to some extent the mecha nization of agriculture. There are other indications of a decline in the importance of agriculture in the Philadelphia district. Both number of farms and acres in farms have been decreasing since 1900, as Table 2 shows. In 1900 more than three-fifths of the total land area of the district was in farms, in contrast to less than one-half in 1940, as a con stantly smaller proportion of the total land area was put to this use. Since the diminishing acre age closely parallels the decline in number of farms, the average size of farms has remained practically stationary around 85 acres. TABLE 2 NUMBER OF FARMS AND LAND IN FARMS IN THE THIRD FEDERAL RESERVE DISTRICT Farms (000 omitted) 1900............... 1910............... 1920............... 1930............... 1940............... Index (1900=100) Acres (000 omitted) Index (1900=100) 171 170 158 137 132 100.0 99.9 92.4 80.2 77.4 14,648 14,170 13,416 11,788 11,378 100.0 96.7 91.6 80.5 77.7 Source: Census of Agriculture; U. S. Department of Commerce, Bureau of the Census. A striking contrast to the impression created by the absolute decline in the number of farms, land in farms, and employment, is provided by the value of agricultural production. The com- bined value of crops harvested and selected live stock products1 shows an increase of 122 per cent between 1900 and 1940. This, of course, reflects changes in both prices and physical out put. During World War I, for example, value of agricultural output of the district attained a peak almost four times the 1900 level, owing primarily to wartime inflation of agricultural prices. A rough estimate of the value of selected products in terms of constant prices, which ap proximates actual physical production, shows an increase of 56 per cent over the past four decades, with a particularly marked rise during the decade of the thirties. The disparity between the expanding volume of agricultural production and the shrinkage of land in cultivation is the result of changes in the type of products produced and improved technology. During the four decades ending in 1939 a considerable change has taken place in the character of agriculture in the district. Crops have contributed a declining proportion, and livestock products an increasing proportion of the total agricultural output. In Pennsyl vania, New Jersey and Delaware the physical volume of corn and wheat production declined 16 and 24 per cent respectively, whereas pro duction of milk increased 6 per cent and eggs 110 per cent. The rising importance of live stock products as a source of agricultural in come continued during the pre-war decade, as shown in Table 3. The shift was an indication of fundamental change taking place in the agri cultural economy. Changes in dietary habits led to changes in food production. Since the end of the nine teenth century the dietary pattern has shifted from grain products to dairy products, fruits and vegetables. The growing urbanization of the district, accompanied by a generally rising standard of living, created new and large mar kets for these products. The growth of poultry and dairy farming took place in response to the changing demand. Smaller proportions of grain crops raised here led to a growing dependence on feed shipped in from other parts of the country. Estimates of productivity per worker, per farm, and per acre, reveal an increase in agri cultural productivity in every decade since 1909. Higher productivity of farms and farm labor has Sterns included are all crops harvested and the following livestock prod ucts: poultry and eggs, dairy products, wool, and honey. It is not total farm output because some livestock, such as pork and beef products, are not included. Data for these products are not available prior to 1929. Page Three been attained by the greater use of machines and mechanical power for seed-bed preparation, tillage, and harvesting, greater use of fertilizers, improved plant and animal breeding, better con trol of disease and insect pests, and scientific animal nutrition. TABLE 3 TYPE OF AGRICULTURAL PRODUCTION IN THE THIRD FEDERAL RESERVE DISTRICT Percentage Distrillution Dollar Value (thoue an ds) 1929 1939 43.3 32.2 11.1 13.4 46.6 31.7 9.3 12 4 $131,544 *97,765 33,615 I 40,693 $106,765 72,747 21,429 28,415 100.0 Livestock products......................... Crops.................................................. Livestock........................................... Products used by farm households. 100.0 *303,617 $229,356 1939 1929 Source: Census of Agriculture; U. S. Department of Commerce, Bureau of the Census. Relation of the Third Federal Reserve District to United States Agriculture Since 1900 land brought under cultivation ex panded in areas outside the district. Opening up of new land in the West and reclamation of desert land by irrigation was stimulated by inflated agricultural prices during the First World War, while greater use of agricultural machinery facilitated the exploitation of this new land. Land in farms in the United States increased 27 per cent, as shown in the chart. This is in striking contrast to the 23 per cent decrease in farm land cultivated in the Third District. While the average size of farms in this district has remained unchanged, the average size of farms for the country as a whole has increased from 146 to 174 acres. The decline in number of farms and the shrinkage of land in farms within the Third District has reduced its relative importance in United States agriculture, as shown in Table 4. Agricultural employment also declined at a faster rate in this district than in the country as a whole. On the other hand, production of selected agricultural products in the district rose somewhat faster than that of the country, and as a result the district increased slightly its share of national output, as shown in Table 5. It should be noted, however, that livestock pro duction as distinguished from livestock prodTABLE 5 UNITED STATES AGRICULTURAL EMPLOYMENT AND PRODUCTION OF SELECTED PRODUCTS CONTRIB UTED BY THE THIRD FEDERAL RESERVE DISTRICT Employment 1899......................................................... 1909......................................................... 1919......................................................... 1929......................................................... 1939......................................................... 3.4% 3.2 3.8 3.2 3.6 Source: Estimates bas.'?d on Census of Agriculture and Census of Occupations U. S. Dept, of Commerce, Bureau of the Census. ucts, is not included in this table. For the coun try as a whole, the ratio of livestock production to total agricultural output is larger than that AGRICULTURAL TRENDS PERCENTindexes 1900 =100 PERCENT [ 4UMBER OF FARMS -■»«, 1 UNITED STATES * 100 100 \ 60 - LAND IN 3 rd- ER. DISTRICT 00 FARMS 120 120 UNI1'ED STATE* < 100 _____ 100 3rdF R. DISTRICT 00 00 < EMPLOYi'MENT lf> 120 TABLE 4 PROPORTION UNITED STATES FARMS AND LAND IN FARMS WITHIN THE THIRD FEDERAL RESERVE DISTRICT Production 2.6% 2.3 2.1 2.1 2.0 4' ✓ ✓ 100 X \ AGRICL LTURE 120 \ ... UNITED STATES % 100 \ \ Number of farms 1900............................................ 1910......................................................... 1920.................................................... 1930....................................... 1940.................................................... Land in farms 1.1 2.2 * 60 3.0% 2.7 Source: Census of Agriculture; U. S. Department of Commerce, Bureau of the Census. Page Four \ 3 rd- f'r.X DISTRICT 00 00 60 1900 I9!0 1920 1930 1940 of the district, due to the large range cattle industry of the West. trialization started early and developed rap idly, drawing labor from farms and decreasing the proportion of rural to total population. The The shift from crops to livestock products absolute growth of production was made pos which characterizes one aspect of the district sible by increased productivity and a shift in agriculture, also took place in the country as a the type of farm products produced. Its relative whole, but to a lesser degree. The growth of decline was caused by a more rapidly growing dairy and poultry production has enabled the demand for manufactured products than for district to increase its proportion of national live agricultural products and the enormous strides stock products and in the face of a declining of manufacturing, which utilized science and proportion of crops, accounted for the slight machinery more widely and more effectively. increase in the total of the two groups. Instead of attempting to compete with the more productive grain growing areas of the Agriculture has lost the dominant position it West, farmers in the Third District have turned once occupied in the economy of the Third Fed to specialized agriculture. General farming has eral Reserve District. The decline, however, has given place very largely to dairy farming, poul been relative only; physical volume of agricul try raising, and fruit and vegetable production. tural production in the Third District has risen Nearness to large metropolitan markets and the more than 50 per cent in the four decades fol growing urbanization of the district, pointed lowing the turn of the century. This is a re out in the first instalment of this series, are im markable achievement in view of the peculiar portant factors that have favored this transi character of the Third District, whose indus tion in the character of the district agriculture. Business and Banking Continued from page 1 power from purely civilian to war-supporting occupations. The initial programs undertaken by the War Manpower Commission, which included such drastic measures as the mandatory adoption of a 48-hour work-week by all employers in crit ical areas, and the diversion of war contracts to localities where labor was in relatively easy supply, have been supplemented by the creation of manpower priorities committees, the estab lishment of hiring ceilings, and controlled re ferral of workers through the United States Employment Service. These latter measures, designed especially to improve labor utilization, have been applied on an increasing scale in localities imminently threatened with a critical manpower shortage. Taken in whole or in part, they provide a means of budgeting the supply of workers available in a single locality or an entire industrial area. Such a system of manpower budgeting was established on March 1 in the Philadelphia area, considered for the purpose of the program to include the nearby counties of Montgomery, Bucks, Chester, Delaware, Camden, Gloucester, and part of Burlington. Although labor supply within the limits of the city proper and in the county areas designated has not been classi fied officially as critical, and War Manpower Commission reports indicate that labor turnover in Philadelphia war plants has been reduced to the lowest level in five years, the development of an increasingly tight labor market suggested the need of measures to promote maximum util ization of manpower resources by all employers. Accordingly essential establishments in the eight-county area have been divided into two categories: Class A consists of producers of urgently needed materials and equipment who are experiencing a production lag directly at tributable to a shortage of manpower; and Class B includes essential establishments not qualify ing for the higher rating on the basis of type of products produced. Hiring quotas subject to review every sixty days by the area office of the War Manpower Commission will limit the num ber of persons that may be given employment in both industry classifications. All other es tablishments in the area are grouped into Class C, a category in which employers are forbidden Page Five to hire additional full-time workers except those under eighteen years, veterans of the present war, and others who might be cleared through the United States Employment Service. INDUSTRIAL AND TRADE ACTIVITY THIRD FEDERAL RESERVE DISTRICT PERCENT The program establishes a rigid system of labor priorities giving preferential treatment in the referral of workers by the Employment Service. The necessary flexibility in operation is assured by the provisions for reviewing at regular intervals the hiring quotas of establish ments in Classes A and B, and for immediate adjustments by a priorities committee in cases of emergency. Industry and trade. Industrial activity in the Philadelphia Federal Reserve District was main tained at a high level in February. The output of factory products was within 2 per cent of the wartime peak reached last November and 4 per cent greater than a year ago. Production of durable goods increased slightly in the month, while a small decline was reported in the case of nondurables. Both heavy and light industries operated at somewhat higher levels than in Feb ruary 1943. Output of anthracite and bitu minous coal expanded from January to Febru ary, but the production of crude petroleum in creased less than usual. PRODUCTION » |P DEPARTMENT STORE SALES 1939 1940 1941 1942 1943 1944 Production of a large tonnage of coal during February further eased the tight supply situa tion which developed last fall and became pro gressively more acute through the balance of the year. By the middle of March conditions in the country as a whole had improved to the extent that the War Production Board decided against coupon rationing of solid fuels, favoring continued use of the allocations plan with some modifications. The present low level of reserves, however, suggests that the output of both bitu minous coal and anthracite must be maintained in large volume to meet continuing heavy de mands from industrial consumers and a sharp expansion in the requirements of householders when the next heating season begins. Factory employment in Pennsylvania in Feb ruary continued at approximately the level of a month and year earlier. Changes have been very narrow since last fall, with the number of wage earners fluctuating a little above 1^ mil lion. Payrolls, estimated at over $55 million a week, were larger than in January and close With anthracite collieries operating seven to the record high reached last November. In days a week through February, production of creases over last year in the volume of wages the fuel expanded nearly 17 per cent to a sevenpaid by the durable goods industries have nar year peak of approximately 5.9 million tons. rowed with the approach of peak operations in Output in early March declined to about the certain munitions categories. In February the 1943 level, as working time was reduced accord gain amounted to little more than 10 per cent, ing to plan to the six-day basis which had be or about the same as that reported for estab come standard in the industry somewhat more lishments turning out nondurable products. than a year ago. The production of bituminous coal in Pennsylvania also increased from Jan The weekly income of wage earners at re uary to February and was approximately main porting plants in Pennsylvania rose to a new tained in the first half of March. high average of $47.03 in February. Average hourly earnings remained at a peak of about Construction activity has continued to decline $1.04, but the average number of hours worked locally and nationally, reflecting further reduc per employee increased to 45*4 a week, the tions in both the residential and industrial fields. highest in fourteen years. Working time has Manpower stringency remains the principal ob averaged 45 or more hours a week for five suc stacle to a resumption of large-scale operations, cessive months, and for employees in steel and restricting the output of building materials, and certain other war industries it has been con necessitating the transfer of additional construc siderably above this level. tion workers to other industries contributing Page Six EMPLOYMENT AND PAYROLLS IN PENNSYLVANIA 12 BRANCHES rt.Kl.LN 1 OF METAL PRODUCTS TRADE AND INDUSTRY EMPLOYEE-HOURS IN PENNSYLVANIA I932AVG.. 100 PERCENT V* 4"' 300 PAYROLL IRON AND STEEL 250 r* i > 200 r 1 150 1 100 }K NONMETALS - FERROUS s. ''EMPLOYMENT 50 1938 1939 1940 1941 1942 1943 1944 1939 1940 1941 1942 1943 1944 more directly to the war effort. ceding ones, owing to substantial upward re visions in the production schedules of equipment The value of new contracts awarded in this makers. Labor supply in 1944 is expected to district declined 40 per cent in February to $5, remain an acute problem for farmers in most 700,000, the smallest since 1935 and less than sections, although intensive recruitment pro one-fourth the dollar volume of a year ago. grams to be carried out on a broader scale than Placements decreased in the month in all cate last year, and plans to create a large mobile gories except public works and utilities, where working force may go a long way toward meet exceptionally low levels prevailed during De ing over-all agricultural requirements. cember and January. Total awards in the two months ended February were down 60 per cent Primary distribution by rail has continued to from a year earlier, reflecting principally reduc expand with total freight-car loadings in this tions of more than one-half in contracts for mul section in February rising 5 per cent on an ad tiple family dwellings, industrial structures, and justed basis to a level 7 per cent above a year public works and utilities. ago. Increases in the month were reported in all major classifications but ore, and gains over In response to the higher production goals set a year ago ranging from 1 to 38 per cent oc for agriculture this year, farmers throughout curred without exception. the country are expected to increase their total crop acreage about 3J/2 per cent to a near-rec The value of wholesale trade sales in eight ord of 374 million. Department of Agriculture reporting branches increased slightly from Jan reports summarizing prospective plantings as of uary to February, as retailers continued to add March 1 indicate increases this season in the to the substantial commitments made imme acreage to be allocated to the principal feed diately following the turn of the year. Sales grains, sorghums, and tobacco, partly offset during February and in the first two months by declines in the case of oil-bearing crops, white were above 1943 levels in a majority of lines. potatoes, hay, and several less important cate Inventories showed a small gain in the month, gories. Farmers in this district intend to plant but were little larger than a year earlier. more corn, and soybeans, but less tobacco, hay, oats, and white potatoes; the acreage to be Retail sales by reporting stores in this district planted to spring wheat may be about the same showed mixed changes from January to Feb as in 1943. These plans may be modified con ruary. Dollar volume increased less than sea siderably by circumstances prevailing prior to sonally at department stores and was below ex planting time, including weather conditions, pectations at shoe stores; but sales were un labor supply, price changes and other factors. usually well maintained at establishments spec ializing in men’s and women’s apparel, and More farm machinery and supplies will be they increased substantially in the case of fur available this year than either of the two pre niture stores. All reporting lines showed de * Page Seven creases from a year ago, when an extraordinary buying wave was in progress. The exception ally heavy purchases by consumers in February 1943 were concentrated in clothing lines, a condition that was strongly reflected by declines over the twelve months of about one-fifth and one-third respectively in sales by men’s and women’s apparel stores. Inventory changes in February were in line with expectations at department stores; they increased more than seasonally at women’s ap parel stores, but less than usual at shoe stores. Stocks at establishments dealing largely in fur niture were about the same as reported in Jan uary. Supplies of merchandise at department and women’s apparel stores at the end of Feb ruary were sharply larger than a year earlier, after the buying wave had reached its peak. Rationing of shoes and restrictions on the manu facture of furniture are reflected in substantially smaller inventories in these lines this year. Banking conditions. Continued improvement in the condition of member banks in this district during 1943 was reflected in earnings reports for the year. Net profits increased to $30.5 mil lion from $18 million in 1942, the largest gain in several years. About one-half of this amount was added to capital accounts, affording a greater measure of protection and preparing the banks to assume appropriate risks in the future. The principal changes in the sources of current oper ating income included sharp increases in hold ings of Government securities, which now con stitute about 70 per cent of earning assets, and declines in loans. Most of the increase in net profits last year was due to large reductions in charge-offs. Current expenses were relatively steady. The operating experience of the banks in 1943 is summarized in a circular, copies of which are available upon request. Final reports on the Fourth War Loan Drive for the sixty counties in the Third Federal Re serve District show aggregate sales of $856 mil lion to non-bank investors, including E bonds sales of $173 million, amounts which were re spectively 13 per cent and 2^2 per cent above quotas. For the country as a whole the quota of $14 billion was exceeded by nearly 20 per cent and the E bond goal by 6 per cent. The over-all goal of $16 billion announced for the Fifth Drive sets a new high, but one which was exceeded by actual sales in each of the two preceding drives. Bank statements since the middle of Feb ruary show usual post-drive changes and, in Page"_Eight DEPOSITS AT MEMBER BANKS THIRD FEDERAL RESERVE DISTRICT MILLIONS 2400 PHILADELPHIA BANKS 2000 COUNTRY BANKS 939 1940 194 1 1942 1943 1944 March, the effect of quarterly tax collections. In the period from February 16 to March 22 customers’ deposits at reporting banks in this district increased considerably as the Treasury drew upon heavy war loan accounts accumu lated earlier; they would have shown even greater growth had it not been for tax payments toward the end of the period. Compared with a year ago adjusted demand deposits show only a slight increase, as against expansion of 7 per cent at reporting banks in the nine Federal Re serve districts outside the northeast. Outstanding credit at the banks in this dis trict declined $31 million to $2,299 million in the five latest weeks. Repayments on loans, principally on advances to purchase or carry Governments, and a decline in holdings of Gov ernments were largely responsible. Locally and nationally bank investments reflected exchanges made under the recent offer of the Treasury. Holders of $4.7 billion of maturing and called obligations were offered a new series of Treas ury notes of 1948; non-bank holders had the further option of choosing additional issues of 214 or 21/2 per cent bonds. Most of the securities turned in were exchanged for Treasury notes. A decline of $21 million to $111 million in Treasury bills held by this Bank under repur chase option since the middle of February has been due to substantial redemptions at maturity. Purchases exceeded resales, accounting for most of the increase of $19 million in member bank reserves reported in this period. The district gained heavily in commercial transactions with other parts of the country, but drafts upon re serves to make payments to the Treasury and obtain currency were nearly as large. BUSINESS STATISTICS Production Employment and Income Philadelphia Federal Reserve District in Pennsylvania Adjusted for seasonal variation Indexes: 1923-5 =1.00 Feb. Jan. Feb. 1944 1944 1943 INDUSTRIAL PRODUCTION 153p 153 MANUFACTURING.............. 157p 158 252p 250 92p 93 Metal products........................ 185 190r Textile products..................... 67p 67 Transportation equipment.. 677 664 r Food products......................... lisp 118 Tobacco and products.......... 106 117 Building materials.................. 41p 41 Chemicals and products.. . . 165p 171 r Leather and products........... 97p 99 Paper and printing................ 95 9b Individual lines Pig iron...................................... 110 107r Steel............................................ 137 144 r Silk manufactures.................. 85 83 Woolen and worsteds............ 57p 57 Cotton products..................... 45 47 Carpets and rugs.................... 49p 51 Hosiery...................................... 72 73 Underwear............................... 136 150 Cement...................................... 4 Op 40 Brick.......................................... 56 56 Lumber and products........... 33 33 148r 151 246 89 171r 68r 658 r 98r 134 52 15Lr 104 91 Not adjusted Per cent change Feb. 1944 1944 fr om from 2 Mo. Year mos. 1943 ago ago 0 0 + 1 - 1 - 2 - 1 + 2 - 2 -10 0 - 3 - 2 0 110 130 80 60r 56 54 r 79 147 78 67 28 + 3 - 5 + 2 0 - 3 - 3 +1 - 9 0 - 1 0 4- 2* Slaughtering, meat packing. 127 127 93 - 1 63 -56 Sugar refining.......................... 63 141 Canning and preserving. . .. 139p 141 116r - 1 Cigars......................................... 106 117 134 -10 Paper and wood pulp........... 84 - 2 85 86 Printing and publishing. . . . 93 0 97 97 Shoes.......................................... 116 120 125 - 3 Leather, goat and kid........... 84 - 1 79p 80 Paints and varnishes............. 94 - 9 98 107 Coke, by-product................... 162 168 154 — 4 COAL MINING........................ 77r 82 r +17 90 Anthracite................................. 89 75 r 81 r +19 Bituminous............. ................. 97 89 r 94 r + a CRUDE Oil............................. 373 383 423 - 3 ELEC. POWER—OUTPUT.. 411 405 378 + 2 Sales, total............................... 429 430 390 0 Sales to industries.................. 359 368 318 - 2 BUILDING CONTRACTS TOTAL AWARDSt............... 35 38 131 - 8 Residential!............................. 35 38 82 - 9 Nonresidentialf...................... 47 54 163 -14 Public works and utilities!.. 26 26 214 - 2 * Unadjusted for seasonal variation. f 3-month moving daily average centered at 3rd month. + + + + + + + — + — + + + — — — — — — + 4+ — + — + + — — 3 4 2 3 9 1 3 17 21 22 10 6 4 + + + + + 0 6 6 5 20 9 7 7 49 17 17 14* 36 1 20 21 1 5 7 5 4 5 + + + + + + 9 + 10 + 4 — 12 + 9 + 10 + 13 + + — + + — — — — — — + + + + + + — Industry, Trade and Service Employment Feb. Jan. Feb. 1944 1944 1943 4 4 3 4 8 0 4 16 18 23 12 6 5 153p 151 157p 156 147 151r 187 Tip 671 113p 89 36p 164p 103p 95 183 r 69 671r 115 97 35 167 r 103 95 172 r 72 65Ir 96r 113 44 150 110 91 3 6 7 3 20 4 7 6 49 19 14 11* 38 14 19 15 2 5 6 2 5 7 113 144 90 59p 48 50p 76 149 28p 54 31 123 128 81 130p 89 85 97 122 85p 96 170 91 89 106 373 436 464 356 103 r 141r 85 58 47 51 75 147 28 52 30 120r 139 97 136 96 85 97 123 84 96 168 78r 75r 102 338 429 442 357 113 136 85 62 r 60 55r 82 160 54 65 r 27 1 09 94 82 108r 112 84 93 131 90 92 162 83 81 102r 423 401 422 314 42 31 59 33 130 58 165 256 ' + + + 12 + 1 + 6 — 12 + 10 + 12 + 13 74 76 34 _ 57 — 50 25 71 — 71 47 — 31 — 88 — 92 p—Preliminary, r—Revised. _ — Indexes: 1932=100 GENERAL INDEX............. Manufacturing...................... Anthracite mining............... Bituminous coal mining. . . Building and construction.. Quar. and nonmet. mining. Crude petroleum prod........ Public utilities...................... Retail trade........................... Wholesale trade.................... Hotels...................................... Laundries............................... Dyeing and cleaning........... Fact ory payi oils Jan. 1944 Feb. 1943 Jan. 1944 Feb. 1943 Altoona................ Harrisburg.......... Johnstown.......... Lancaster............ Philadelphia.... Reading............... Scranton.............. - 2 0 0 0 - 3 0 - 1 + 4 — 3 +10 - 3 - 6 + 7 + 1 - 4 +21 - 1 + 9 0 + 2 _ 2 0 + 2 +11 +12 +20 + 9 +15 +19 +10 + 6 +40 Wilkes-Barre.... Williamsport... . Wilmington........ York..................... - + - + - - 8 + 1 +14 + i 2 3 2 2 5 7 2 7 2 4 3 1 Building permits value Jan. 1944 Feb. 1943 Jan. 1944 Feb. 1943 + 8 +104 +ii5 - 69 +168 - 37 +241 +168 +224 - 71 - 69 - 49 - 7 - 57 + 53 - 17 +129 +134 +201 + 11 + 69 - 74 - 76 - 71 - 25 0 + 6 - 7 +10 + 3 + 1 + 2 + 1 + 9 - 1 -13 - 6 -16 - 9 -11 -12 -13 - 1 — 8 - 3 +16 + 4 -10 - 8 * Area not restricted to the corporate limits of cities given here. 336 505 118 391 101 265 246 139 149 147 164 171 "153 Employment* + 2 + 2 +29 + 3 - 5 - 1 + 6 + 1 - 4 + 2 + 2 - 1 + 2 +10 +n +25 + 7 +13 -12 +17 + 7 + 5 + 2 +14 + 5 +11 Payrolls* Per cent Per cent Feb. change from Feb. change from 1944 1944 index Jan. Feb. index Jan. Feb. 1944 1943 1944 1943 Indexes: 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......... 122 132 197 176 83 76 110 122 88 50 121 76 102 94 0 0 + 2 - 2 +1 +1 0 0 0 + 2 - 1 ~ 1 0 0 0 +1 + 2 + 5 - 7 - 6 - 8 + 9 - 3 - 3 +1 -16 + 2 + 2 206 285 434 305 125 116 170 183 131 80 213 117 148 129 + + + + + + + + + + 2 2 3 1 4 3 6 1 3 4 0 0 0 + 1 +11 +H +16 +12 + 4 + 3 + 4 +23 + 9 +12 +13 - 9 +10 +n 57 155 98 0 + 1 + 2 -11 +25 +33 80 312 185 - 1 + 1 + 3 0 +40 +55 * Figures from 2886 plants. Factory Workers Averages Retail Sales - 1 0 - 7 -11 0 -21 - 2 - 3 + 3 - 6 + 4 - 7 + 4 Manufacturing and per cent change from year ago Factory employment 0 0 +1 0 - 2 - 3 - 1 0 - 3 +1 0 + 2 0 134 189 50 80 40 82 133 97 109 106 101 102 95 Hours and Wages Local Business Conditions* Percentage change— February 1944 from month and year ago Payrolls Feb. Per cent Feb. Per cent 1944 change from 1944 change from index Jan. Feb. index Jan. Feb. 1944 1943 1944 1943 Del>its Jan. 1944 Feb. 1943 -10 -18 - 2 + 4 - 8 -10 - 3 + 6 - 6 - 7 -17 - 1 +34 +25 +29 +25 +30 +21 +24 +22 +22 +36 - 3 +30 +32 TOTAL............................. Iron, steel and prods.. . Nonfer. metal prods.. . Transportation equip.. Textiles and clothing.. Textiles........................ Clothing....................... Food products............. Stone, clay and glass.. Lumber products......... Chemicals and prods.. Leather and products. Paper and printing. . . Printing........................ Others: Cigars and tobacco. . Rubber tires, goods. . Musical instruments. Weekly working time* j Hourly earnings*] Weekly earnings! Aver Aver Aver Ch’ge age Cb’ge age Gh’ge age hours 45.6 + 3 51.037 + 7 $47.03 47.4 + 5 1.095 + 5 51.84 .991 + 9 46.31 46.8 + 6 46.8 - 2 1.211 + 8 56.58 .750 + 9 30.31 40.5 + 2 41.6 + 2 .767 + 8 31.90 38.0 0 .705 +12 27.01 .802 +10 35.41 43.8 + 3 .906 + 6 36 90 40.9 + 6 .746 +10 33.12 44.8 + 3 45.5 + 6 1.031 + 5 46.89 .730 + 5 30.52 41.8 + 2 43.3 + 3 .889 + 5 38.89 40.4 + 2 1.036 + 6 42.24 42.1 44.4 49.8 # Figures from 2736 plants. + 3 + 2 + 3 .605 + 8 1.010 + 9 .989 +13 25.48 44.85 49.25 +10 +10 +15 + 6 +U +10 +12 +12 +12 +12 +12 + 8 + 8 + 9 +12 +12 +16 t Figures from 2886 plants. Page Nine Distribution and Prices Per cent change Wholesale trade Unadjusted for seasonal variation Adjusted for seasonal variation Feb.1944 from Month Year ago ago mos1943 + 2 +10 - 9 -11 +43 - 5 +12 0 -12 +15 - 3 - 1 +25 +12 +17 + 9 + 5 +28 + 1 — 10 —14 +22 0 — 3 -12 Feb. Jan. Feb. 1944 1944 1943 Month Year ago ago RETAIL TRADE . Sales trDepartment stores—District........................ Philadelphia............... Women’s apparel.............................................. Men’s apparel................................................... Shoe...................................................................... 168p 163 172p 133 135 173 164 153 111 141 184r 182 r 216 201 188 - 3 - 1 +12 +20 - 4 + 9* 149p 149 151 147 202p 195 87* 98 131 131 144 99 0 + 3 + 4 -11 - 1* 1 Basic commodities (Aug. 1939=100)... . Wholesale (1926—100).................. Farm............................. Food.............................. Other............................ Living costs (1935-1939=100) United States............. Philadelphia............... Food........................... Clothing..................... Rent............................ Fuels........................... Housefurnishings.. . Other.......................... 147 141 90 152 175 201 146 152 154 140 136 89 136 200 189 129 139 153 138 135 85 138 173 181 134 144 111 + 5 + 4 + 2 +12 -12 + 7 +13 +10 + 1 MISCELLANEOUS Life insurance sales............................................ 1 Business liquidations 115 113 93 + 2 Check payments................................................. 193 165 -13* -80* + 3 180 0 + 3 + 80 104 123 103 98 0 +1 0 0 + + ~ + 1 3 1 2 + 38 +101 + 56 + 22 Forest products................................................ Grain and products......................................... Livestock............................................................ 124 123 133 133 107 111 125 117 0 0 - 1 0 0 + 2 0 0 + + + + 2 3 3 5 0 + + + + + + + + + 5 + 2 + 2 * Computed from unadjusted data. Source: U. S. Bureau of Labor Statistics. 137 136r 156 157 135 - 7 - 4 - 6 -10 - 1 -12 - 9 - 6 b38 FREIGHT-CAR LOADINGS Merchandise and miscellaneous................... Merchandise—l.c.l............................................ Coal...................................................................... 25 25 43 34 4 15 25 16 +1 - 1 - 4 -18 -21 +14 +15 +40 -12 -11* Inventories Per cent change from Feb. 1944 Month Year Aug. 1939 ago ago Feb. 1943 9 -10 -21 -34 -28 1* Source: U. S. Department of Commerce. Prices 1944 Feb. Jan. from 1944 1944 2 mos. 1943 Feb. 1944 from Inventories + 6 Not adjusted Per cent change Indexes: 1935-1939=100 +12 + 7 - 4 +iii +26 + 9 + 5 - 6 +12 +++++ Sales Total of all lines..................... Boots and shoes.................... Drugs....................................... Dry goods.............................. Electrical supplies................ Groceries................................. Hardware............................... Jewelry.................................... Paper....................................... 1944 from 188 p—Preliminary. 124p 122 124p 104 98 122 120 132 112 110 147p 130 148 131 198p 170 90 85 129 128 141 101 +n + 8 +11 +16 + 5 +12 +11 + 9 +38 135 129 85 158 66 216 118 134 140 133 126 83 152 76 218 105 135 154 127 123 80 143 66 193 108 126 101 +23 +28 124 107 101 -75* -95* +17 -74* 9 -83* 2 +22 187 10 8 186 29 160 r—Revised. BANKING STATISTICS MEMBER BANK RESERVES AND RELATED FACTORS Other loans to carry secur.. +$ 16 + 12 + 4 6 + 4 3 - 7 -$ 19 +$109 Total loans & investments. $2299 Reserve with F. R. Bank... 378 28 Balances with other banks. 75 57 -$ 31 + 16 +$428 - 59 - - Page Ten + + 2 1 Mar. 22 Changes in five weeks - 2.2 +25.1 -27.5 +24.0 -10.5 + 0.4 + 9.9 +15.8 -12.0 -27.6 +48.4 + 7.7 -29.9 +53.5 -40.3 - 25.8 +132.3 - 71.7 +13.9 +13.7 +28.5 -16.7 + 34.8 + 7.8 -10.1 - 2.3 + 0.0 + 5.6 +10.6 - 2.3 - 0.0 + + + - 9.4 3.8 0.6 0.1 + 0.8 +27.4 + 0.3 - 0.0 - 3.9 -12.8 + 0.0 - 0.0 + 19.7 + 18.9 - 3.7 - 0.1 Total........................................................................... - 4.6 +13.9 +13.7 +28.5 -16.7 + 34.8 +. * 1 £■ > $1835 - 126 - 22 +$ 19 Cvo +$ 18 — 36 1 1 -$ 12 +$116 Mar. 8 Mar. 15 - 4.6 $ 464 Liabilities Demand deposits, adjusted. $1604 169 U. S. Government deposits. 493 326 1 15 229 Capital account.................... Mar. 1 Changes in weeks ended— Uses of funds: Currency demand..................................................... Member bank reserve deposite............................. “Other deposits” at Reserve Bank...................... Other Federal Reserve accounts.......................... Government securities.... $1628 Obligations fully guar’teed. 33 174 9 5 Feb. 23 Sources of funds: > Reserve Bank credit extended in district.......... Commercial transfers (chiefly interdistrict)----Treasury operations................................................. One year + 110 Five weeks + $ 262 39 15 38 Philadelphia Federal Reserve District (Millions of dollars) Changes in— 1 Assets Mar. 22, 1944 1 Reporting member banks (000,000’s omitted) 27 6 +$ 2 + 3 + 386 - 68 + 1 + 3 + 9 Member bank reserves (Daily averages; dollar figures in millions) Held Re quired Ex cess Phila. banks 1943: Mar. 1-15.. 1944: Feb. 1-15.. Feb. 16-29.. Mar. 1-15. . $433 354 344 350 $372 336 331 340 $61 18 13 10 Country banks 1943: Mar. 1-15.. 1944: Feb. 1-15 .. Feb. 16-29.. Mar. 1-15.. 26 L 27 L 262 266 187 208 207 211 74 63 55 55 Ratio of excess to re quired 16% 6 4 3 40 30 26 26 Federal Reserve Bank of Phila. (Dollar figures in millions) March 22, 1944 Changes in Five weeks One year Disc’ts. & advances. $ 1.9 Industrial advances. 3.9 U. S. securities......... 788.8 +$ 0.8 - 0.5 - 21.4 +$ 15 0.6 + 386.3 $794.6 Fed. Res. notes......... 1177.4 Member bk. deposits 628.2 U. S. general account 38.4 Foreign deposits... . 135.0 Other deposits......... 6.2 1201.1 60.5% -$21.1 + 14.2 + 18.9 + 16.6 + 0.9 - 3.7 + 73.4 + 2.3% +$387.1 + 282.3 - 49.6 + 38.2 + 63.2 6.8 - 66.5 - 16.0%
@FedFRASER