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I
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THE BUSINESS REVIEW
THIRD FEDERAL
PHILADELPHIA
RESERVE DISTRICT
APRIL z, 1934
By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent
FEDERAL RESERVE BANK of PHILADELPHIA
Business and Banking Conditions in the United States
Volume of industrial activity in ruary to a level higher, on a seasonally
creased in February for the third adjusted basis, than at any other time
consecutive month and there was a since the summer of 1931. Working
considerable growth in factory em forces on railroads also showed an in
ployment and payrolls. Wholesale crease, while at mines there was little
commodity prices, after advancing for change in the volume of employment.
two months, showed little change be The number on the payrolls of the
tween the middle of February and the Civil Works Administration declined
middle of March.
from about 4,000,000 in January to
Production and employment. Output
about 2,900,000 in the week ending
of manufactures and minerals, as meas March 1. At automobile factories there
ured by the Board’s seasonally adjusted was a large increase in the number
index of industrial production, in employed to approximately the level
creased from 78 per cent of the 1923 prevailing four years ago. Substantial
1925 average in January to 81 per cent increases were reported also for the
in February. The advance reflected textile, clothing, shoe and tobacco in
chiefly increases of considerably more
dustries.
than the usual seasonal amount in the
Value of construction contracts
output of steel and automobiles, while
activity at meat-packing establish awarded, as reported by the F. W.
ments declined. Activity at textile mills, Dodge Corporation, showed a decline
which in January had increased from in February, followed by an increase
the low level prevailing at the end of in the first half of March. The total
the year, showed a further moderate volume indicated for the first quarter
increase in February, partly of sea is somewhat smaller than in the last
sonal character. In the first week of quarter of 1933 but considerably larger
March steel production showed a fur than in the first quarters of 1932 and
ther increase and in the following two 1933.
weeks remained unchanged.
Distribution. Freight traffic increased
Factory employment and payrolls in seasonally during February and the
creased substantially between the mid early part of March. Dollar volume
dle of January and the middle of Feb of department store sales on a daily
INDUSTRIAL PRODUCTION
FACTORY EMPLOYMENT AND PAYROLLS
average basis showed little change in
February.
Dollar exchange.
The foreign ex
change value of the dollar in relation
to gold currencies declined in the sec
ond week of February to within 2 per
cent of its new parity and in the latter
part of February and the first three
weeks of March showed a further slight
decline.
Commodity prices. Wholesale prices
of commodities showed little change
from the middle of February to the
middle of March, after a considerable
increase earlier in the year. The index
of the Bureau of Labor Statistics for
the week ending March 17 was at 73.7
per cent of the 1926 average, compared
MEMBER BANK CREDIT
tlUIOHS 0$ DOUAH}
■mows orpoium
1/ 5 God. Securities
Oth«f loans
!o»"! OoStCunhtS
Direr Stcurif
Wednesday figures for reporting member
banks in 90 leading cities. Latest figures are
for March 14.
WHOLESALE PRICES
PEN CENT
120
'
l
Payrolls \
50
1929
Index number of industrial production, ad
justed for seasonal variation. (1923-1925 aver
age = 100.)
Indexes of factory employment and pay-rolls,
without ‘adjustment for seasonal variation.
(1923—1925 average =100.)
1930
1931
1932
r
1933
193V
Index of United States Bureau of Labor Sta
tistics. (1926=100.) By months 1929 to 19311
by weeks 1932 to date. Latest figure is for week
ending March 17.
Page One
with 73.8 per cent the week before and
72.4 per cent at the end of January.
Bank credit. Between the middle of
February and the third week of March
imports of gold from abroad resulted
in a growth of about $550,000,000 in
the country’s monetary gold stock.
Funds arising from these imports of
gold and from expenditure by the
Treasury of about $140,000,000 of its
cash and deposits with the Federal re
serve banks were for the most part
added to the reserves of member banks,
which consequently increased by $600,
000,000 during the four week period.
At the close of the period member bank
reserves were nearly $1,500,000,000 in
excess of legal requirements.
Total deposits of reporting member
banks increased by about $1,000,000,
000 between the middle of February
and the middle of March, reflecting the
imports of gold, purchases by the
banks of United States government and
other securities, and a growth of
bankers’ balances.
During March money rates in the
open market declined further. Rates
on 90 day bankers’ acceptances were
reduced from
per cent to
Per
cent, and rates on prime commercial
paper were reduced by J4 Per cen* to
a range of 1-1Per cent. Yields on
United States government securities
also declined considerably. On March
16, the Federal Reserve Bank of
Minneapolis reduced its discount rate
from 3J4 to 3 per cent.
Business and Banking Conditions in the
Philadelphia Federal Reserve District
Industrial activity of this district as earnings have expanded since early
a whole shows a considerable improve February, though by no means uni
ment since January. Output of fac formly. Our general index number,
tories and coal mines increased more which combines figures proportion
than seasonally during February and ately for twelve occupations in Penn
continued well sustained in early sylvania, showed a gain of 2 per cent
March. The total of building contract in the number of workers and 5 per
cent in the amount of wages paid from
awards fell off more than customary
but in March some upturn was indi January to February. These increases
were due principally to unusual gains
cated. Retail and wholesale trade
in the manufacturing industry.
sales virtually maintained their Janu
Manufacturing.
The demand for
ary levels and registered marked gains
manufactured products in general has
in March, reflecting partly the usual
increased materially since early Febru
rate of activity during the Easter sea ary and some price advances have
son. Various other business indicators been reported by several lines, particu
also bear out the upward change in larly those comprising the textile
recent weeks.
group of commodities. The volume of
Current levels of business operations unfilled orders at manufacturing plants
generally show large increases when is larger than a month ago, as is to
contrasted with last year, but such be expected at this time when sales
comparison necessarily is complicated expand seasonally. This increase in
by the fact that early last year busi forward business commitments has
ness activity was rapidly on the decline been especially pronounced in such
reaching record low levels during the manufactures as cotton goods, hosiery,
banking crisis. Since then fluctuations floor coverings, paper, chemicals,
on the whole have been upward, barring cement, pottery and in some of the
brief periods of let-down and hesitation. fabricated metal products.
The supply of finished products at
Industrial employment and wage
reporting plants has been reduced dur
ing the month and current stocks
appear to be smaller than at the same
season in the past two years, reflect
ing more active demand at present and
larger takings by distributors in earlier
months. Inventories of raw materials
have shown little change in the month
but in comparison with a year ago
have been increased somewhat; some
of the industries recently have been
purchasing supplies of raw materials
and semi-finished goods rather actively
in response to both the actual and
anticipated demand for their products.
Collections have increased seasonally
in many lines, although the majority
of reports show little change since
January. Compared with a year ago,
collections have been almost uniformly
larger, indicating improvement in gen
eral business conditions.
Greater than seasonal increases have
taken place in factory employment and
payrolls of this district, after declining
for three successive months. The
number of wage earners on the rolls
of factories in Pennsylvania, for ex
ample, was 6 per cent larger in Febru-
PRIMARY DISTRIBUTION
MANUFACTURING ACTIVITY
PHILADELPHIA FEDERAL RESERVE DISTRICT
PHILADELPHIA FEDERAL RESERVE DISTRICT
PERCENT
PERCENT
PRODUCTION
WHOLESALE
DOLLAR SALES
EMPLOYMENT
SHIPMENTS OE MERCHANDISE^,
AND MISCELLANEOUS COMMODITIES
PAYROLLS
1929
1930
Page Two
1931
1933
1934
1929
1931
1932
1933
1934
ary than in January and was 19 per
cent greater than in February 1933,
according to reports of 1,736 repre
sentative manufacturing plants which
employed almost 380,000 workers,
whose weekly earnings averaged about
$6,768,000. Wages also showed a gain
of 12 per cent in the month and were
51 per cent larger than a year ago.
On the basis of the current data and
the census figures, it is estimated that
Pennsylvania factories in February
employed approximately 765,000 wage
earners or 43,000 more than in Janu
ary and 122,000 more than a year
ago. Similarly, the estimated weekly
payroll for all manufacturing in this
state totaled nearly $14,000,000 or
$1,500,000 more than in January and
about $4,750,000 more than in Febru
ary 1933.
Operating time, as measured by the
number of employe-hours actually
worked in about 80 per cent of the
reporting plants, also showed an ex
pansion of 11 per cent as compared
with January. Virtually all manufac
turing groups shared in this gain.
Delaware factories reported a gain of
5 per cent in employment and 8 per
cent in payrolls from January to
February; the number of employehours worked in this period also in
creased 7 per cent.
Preliminary reports for March in
dicate that the gains made in February
were not only fully maintained but
that there also have been additional
increases in the number of factory
workers, the volume of work done and
in the amount of wage earnings.
Output of factory products in this
district during February showed a sub
stantial increase, after declining for
six successive months. Our index
number of manufacturing activity,
which takes account of the number of
working days and the usual seasonal
changes, rose from 61 in January to
67 per cent of the 1923-25 average in
February as compared with the ad
vance in the national index, computed
on the same basis, from 77 to 79.
While the February level of produc
tion was about 11 per cent below the
high point in July of 1933, it was
18 per cent higher than in February
of that year and was close to that of
two years ago.
The largest exceptional gains oc
curred in the output of textiles and
such leather products as shoes. The
unusual increases in the case of textile
products undoubtedly reflect the influ
ence of drastic curtailment of opera
tions in certain leading branches dur
Business Indicators
Philadelphia Federal Reserve District
Index numbers: percentages of the 1923-1925 average taken as 100
Adjusted for seasonal variation
Adjusted indexes allow for the usual
seasonal change which results from an
uneven distribution of business be
tween the months of the year.
Percentage com
parison
Unadjusted indexes reflect merely the
actual change which may or may not
be up to the usual seasonal expecta- Feb. Dec. Jan Feb
1933 1933 1934 1934
tations.
Feb. 1934
with
Manufacturing—total.....................
Durable or capital goods ....
Consumers’ goods.......................
Metal products.............................
Textile products...........................
Transportation equipment........
Food products...............................
Tobacco and products................
Building materials.......................
Chemicals and products.............
Leather and products..................
Paper and printing......................
Electric power output.................
Industrial use of electricity ...
Coal mining.......................................
Anthracite......................................
Bituminous....................................
Employment and wages—Pa.
57
56
30
76
28
74
32
68
64
64
45
78
51
72
42
67
84
19
63
61
44
73
48
62
41
69
87
68p
67p
45p
83p
48
80p
42
67p
81
88
22
17
24
85 101 100 lOOp
108 112 112 125p
78 81 80 82
165 174 186 185
115 127 123 136
62 67 78 87p
64 68 82 92
49 59 56
59p
Contracts awardedt—total...........
Contracts awarded!—residential.
Permits for building—17 cities. . . .
Mortgages recorded—Philadelphia
Real estate deeds—Philadelphia..
41
Sheriff deeds (1930= 100)..........
Other deeds (1930=100)..........
Writs for Sheriff sales—Phila. . . . 1245 1026
987
Distribution
49
54
56
57
96
5’
48
50
54
62
62
63
62
90
66
57
59
61
54
62
73
64
93
54
61
5X
77
Payment of accounts
Check payments...........................
Rate of collections (actual)
Retail trade...............................
Wholesale trade..........................
65
+ 0
+ 9
+43
+15
+ 17
+ 3
46
65
41
66
68
62
35
42
73
50
54
70
47
49
74
52
55
+141
+33*
+13*
+31'
91
84
109
111
102
106
104
-17
+ 14
+ 14
+47
+39
+22
+30
+24
20
8
35
34
10
11
29
+ 12
7
12
+ 1
-22
+20*
- 6*
-33*
-11*
-28
-17*
-37*
+32
-21
-20
- 0
2
- 0
+ 3
+10
66
+13
+ 16
+30
+ 13
- 3
- 5
+25
+ 17
+42
-69*
-79*
- 7
+44
+
-
2
2
+23*
+50*
+24*
+ 19*
+ 19*
+26*
+ 18*
Dec.
1933
121
66
21
99p
133p
82
197
135
93p
98
65p
112
11
8
54
79
39
42
159 280 117
141
68
79 49
46
1270 1046 858 1007
40
52
51
57
101
- 7
-22
+23
+ 15
+38
110
42
47
46
59
59
69
58
95
36
53
52
65
-66*
-74*
221
287
59
37
67
26
64
45
57
64
44
60
67
64
107
40
59
54
84
70
25
52
+26
+ 2*
+ 3*
108
.82
186
+ 0
2
+ 1*
100
68
+ 9
-
61
18
49
86p
43
67p
75
+ 17*
+44*
+25*
+ 19*
+51*
+29*
+ 2*
+ 2*
Nov.
1933
49
69
42
67
62
+12
+22
+ 2*
+ 4*
+ 4*
Feb.
1933
28
80
32
67
69
14
85
115
78
175
114
+14
+45
+49
+22
-18*
- 3*
Wholesale (1926=100).............
Farm products............................
Foods.............................................
Other commodities....................
Retail food (1913 = 100)...........
Philadelphia................................
Scranton.................................
7 Op
68p
53
+ 0
2
+ 11
+ 11
+ 12
+ 6
+
Prices—United States
Dec Jan. Feb.
1933 1934 1934
71
19
97
116
80
197
119
85
89
64
0
+ 12
-19*
- 1*
Number...........................................
Amount of liabilities.....................
(000,000’s omitted
in dollar figures)
+16
+ 14
+46
+ 2
+71
- 4
+28
+ 2*
+ 5*
Building and real estate
Business liquidations
0
+28
+ 3
- 3
+ 2
+ 9
+21
+ 18
+48
+ 8
+74
+ 9
+34
- 2
+ 9
+46
+17
+ 16
+ 5
+13
+ 19
+41
+44
+ fix
+ 12*
+11*
Factory wage earners......................
Factory payrolls...............................
Employe-hours (1927-28= 100) . .
General—12 occupations:
Employment (1932 = 100).........
b Payrolls
(1932 = 100)..........
Retail trade—sales...........................
Retail trade—stocks........................
Wholesale trade—sales...................
Wholesale trade—stocks................
Life insurance sales..........................
New passenger auto, registrations
Freight car loadings—total.............
Mdse, and misc. (64.9% of total)
Coal (23.5% of total).............
+ 9
+ 9
+ 3
+13
Feb.
1933
To
date
with
year
ago
Month Year
ago
ago
Industrial production.............
Not adjusted
+19
+21
+44*
+20*
+ 18*
+ 15*
+22*
+14
Jan.
1934
60
41
54
66
91
93
97
Feb.
1934
61
89
20
55
52
73
86
60
69
60
31
64
26
62
71
72
56 59
62 64
78
77
105 105
109 114
113 112
74
61
67
79
108
117
115
Per cent change
frc m
Month
ago
Year
ago
Banking and credit
Federal Reserve Bank
Bills discounted............................
Other bills and securities...........
Member bank reserves...............
Ratio................................................
Reporting member banks
Loans to customers......................
Other loans and investments. . .
Net deposits..................................
Bankers’ acceptances outstanding
* 54
142
127
58.1%
S 25
169
122
61.2%
* 26
174
126
61.7%
$ 24
175
138
60.6%
* 20
172
150
63.1%
-17
- 2
+ 9
+ 4..,,
-63
+21
+ 18
+ 9
*549
501
951
10.4
*488
560
956
15.6
*491
550
949
15.5
$476
541
948
14.7
*471
570
988
15.2
+
+
+
-14
+14
+ 4
+46
* Computed from data unadjusted for seasonal variation.
T 3-month moving daily average.
1
5
4
3
p—Preli mi nary
Page Three
OUTPUT OF TEXTILE GOODS
OUTPUT OF METALS andTRANSPORTATION EQUIPMENT
PHILADELPHIA FEDERAL RESERVE DISTRICT____ ___
PHILADELPHIA FEDERAL RESERVE DISTRICT
PERCENT
PERCENT
I923-25AVG =IOC
METALS
WOOLENS
r AND WORSTEDS
TRANSPORTATION^
EQUIPMENT
COTTON
1931
1932
ing the previous two months. The
output of food products decreased more
than was to be expected, owing partly
to a drop in meat packing and to a
smaller than customary gain in sugar
refining plants; productive activity of
this group as a whole in fact was
somewhat lower than a year ago.
Production of that branch of indus
try which manufactures principally
equipment goods showed relatively a
smaller rate of increase from January
to February than did the industries
producing goods commonly known as
consumers’ merchandise. Fabrication
by the metal products group registered
little change, although the output of
steel castings and steel works and roll
ing mills was larger than in January.
In the transportation equipment group,
activity in shipbuilding, and locomo
tives and cars increased, while that of
plants making largely commercial
motor trucks, and automobile parts and
bodies failed to show the usual sea
sonal improvement. Production of
such building materials as cement and
lumber products was larger while that
of brick was smaller.
Compared with a year ago, virtually
all groups as well as individual lines
of manufacture showed large increases.
For the first two months of this year,
the general level of factory activity
was about 14 per cent higher, and
there was a rising tendency in produc
tion, whereas last year at the same
time output was declining fast, reach
ing a record low in March.
Output of electric power practically
maintained the exceptional gain in
January and continued about 12 per
cent larger than last year. Industrial
consumption of electrical energy in
creased about 11 per cent above the
normal seasonal rate of gain in the
Digitized Page Four
for FRASER
1933
1929
month and was 19 per cent larger than
in February 1933.
Coal.
Demand for anthracite has
slackened since early March, following
an exceptionally active period of about
six weeks during the cold weather.
Shipments showed a substantial gain
in February, as did the output of col
lieries, which was the largest of any
month in the past four years. In the
first three weeks of March production
increased further, instead of declining
as it usually does at this season. Al
though the output of hard coal has in
creased sharply since the beginning of
the year, supplies in producers’ storage
yards have been reduced to compara
tively low levels. On February 1, the
latest date for which comparable figures
are available, stocks at the mines were
35 per cent smaller than one month
earlier and showed a decrease of nearly
42 per cent in the year.
Some further improvement in de
mand for Pennsylvania bituminous coal
has taken place since the middle of last
month, as evidenced by larger takings
by railroads, public utilities and manu
facturing industries. Shipments from
the mines increased in February and
were the largest for that month since
1930. Contrary to seasonal tendency,
colliery output showed a small gain in
February and increased further in the
first half of March. Industrial stocks
of soft coal throughout the country de
creased 8 per cent between January 1
and February 1, the largest reductions
being shown in the supplies of rail
roads, steel works and general manu
facturing plants. Wholesale prices of
bituminous coal averaged slightly
higher in February than in the previ
ous month and were nearly 15 per cent
above a year ago.
1932
1933
1934
Reflecting
partly seasonal influences, activity in
the construction and contracting in
dustry in Pennsylvania declined fur
ther from the middle of January to
the middle of February. Reports from
approximately 1,200 contractors which
do not include construction work un
dertaken by the federal government
through the Public Works Administra
tion, showed decreases of 14 per cent
in employment, 10 per cent in payrolls
and nearly 16 per cent in working
time in this period.
Awards of building contracts fell
off sharply in February and showed
less than the usual rate of gain in the
first half of Match. A relatively small
increase in contracts let for public
works during February was more than
offset by substantial decreases in the
dollar volume of other classes of con
struction,
particularly
residences,
which declined nearly 25 per cent in
this period, after an exceptionally
sharp rise from December to January.
Following an upward trend for sev
eral months, the average of total
awards for the three months from De
cember through February declined 17
per cent, but was still 47 per cent
higher than a year ago.
Estimated cost of proposed building
under permits issued in seventeen cit
ies of this district increased more
sharply than usual in February and
was 22 per cent larger than a year
ago. Although the value of permits
issued since January 1 for new con
struction, repairs and alterations was
12 per cent larger this year than last,
as compared with more normal years,
it was at an exceedingly low level.
The local real estate situation con
tinues to reflect unusual quiet. Ordi
nary conveyances declined sharply in
February and continued at a very low
Building and real estate.
BUILDING CONTRACTS
SALES OF NEW PASSENGER AUTOMOBILES
PHILADELPHIA FEDERAL RESERVE DISTRICT
REGISTRATIONS
PERCENT
PERCENT
UNITED STATES
TOTAL
PHILADELPHIA
FEDERAL RESERVE
DISTRICT
RESIDENTIAL
THREE MONTHS MOVING. AVERAGE
ADJUSTED TOR SEASONAL VARIATION
1929
1930
1932
Source: F. IV. Dodge Corporation
level as compared with other years.
Although foreclosures have Increased
since the turn of the year, as indi
cated by the number of writs, which
usually are issued about one month in
advance of the actual sale, the number
of properties to be sold by the sheriff
in the first quarter of this year will
be the smallest of any like period since
1930.
Distribution, trade, service.
The
movement of commodities from the
sources of supply to distributing cen
ters shows further gains, although
increases have not been uniform. Total
freight car loadings in this section in
February registered larger than sea
sonal increases, owing chiefly to ex
ceptional gains in the shipment of coal
which makes up about 24 per cent of
total loadings. In the case of merchan
dise and miscellaneous commodities,
which is the largest group in the rail
road freight business, gains were
less than usual so that on a seasonally
adjusted basis shipments failed to hold
the customary rate by 2 per cent. De
liveries by motor truck also show in
creases, reflecting mainly more active
demand on account of the early Easter
season this year. In comparison with
a year ago, which was a record low
in business activity, shipments of all
classes of commodities have been sub
stantially larger.
Wholesale trade in February practi
cally held its usual level of activity.
The sales of eight leading lines com
bined proportionately were 4 per cent
larger than in January, which is about
the normal seasonal rate of gain. Im
provements in the sale of dry goods,
groceries, jewelry, paper and drugs
were virtually offset by the failure of
shoes, electrical supplies and hardware
to show customary gains between Jan
1933
1929
1930
1932
1933
1934
Sources: R. L. Polk Company, Pennsylvania Motor List Company
uary and February. In March most
of these lines indicated seasonal in
creases. Compared with last year, all
lines registered considerable increases,
as is to be expected in view of ex
tremely low levels prevailing in the
first three months of 1933.
Wholesale inventories expanded by
5 per cent in the month and were 13
per cent larger than at the end of Feb
ruary last year, reflecting larger de
mand and higher prices. The rate of
stock turnover also has been 20 per
cent higher this year than last. Ac
count settlements declined seasonally
but were about 19 per cent more prompt
than last year.
Retail trade sales of the five lines,
computed on a basis of the actual num
ber of business days, showed little
change from January to February.
Improvements in the sales of depart
ment stores and apparel stores outside
of Philadelphia were checked by the
failure of apparel stores in Philadel
phia and of shoe and credit stores to
maintain even the usual rate of change
that ordinarily occurs between .January
and February. Sales in March showed
marked increases, reflecting largely
favorable weather conditions and the
early occurrence of the Easter season.
Since the turn of the year, retail
trade sales have been running on the
average about 9 per cent above last
year but this comparison is greatly ob
scured by such factors as the growing
bank crisis last year which resulted in
the closing of all banks in early March
and the sharp increase since a year ago
in retail prices of most articles in com
mon demand. Nevertheless, current
reports show definitely that, in spite of
the short range variations, the total
volume of retail sales has increased
substantially during the past year.
The supply of merchandise at retail
stores at the end of February was 5
per cent larger than a month before
but this increase was not as large as
usual. The rate of stock turnover has
been about the same this year as last.
Collections during February in pro
portion to receivables outstanding de
clined somewhat more than seasonally
but were 2 per cent more rapid than
in February 1933. The percentage of
dollars collected by department stores
during February to the amount due on
regular accounts at the beginning of
that month was 33 as compared with
41 in the previous month and 31 a year
ago. As for installment accounts of
the same stores, the ratio of 14 was
unchanged since January and com
pared with 12 in February last year.
Sales of new passenger automobiles,
as measured by registrations in this
district, increased very sharply—44
per cent above the normal seasonal
rate,—after declining for three months.
This exceptional gain was due mainly
to a delay in releasing new models by
manufacturers. This fact also explains
in part the decline of 22 per cent in
sales during the first two months of
this year as compared with the same
period a year ago. Prices for new
automobiles generally have been ad
vanced, though not uniformly.
Life insurance sales were 20 per cent
larger in February than in January
but this increase failed by 7 per cent
to equal the estimated rate of gain that
usually takes place in this period.
Commercial activity in general, as
measured largely by the movement of
business travelers, showed further im
provement according to reports from
31' representative hotels. Room occu
pancy, chiefly by transients, increased
Page Five
INDUSTRIAL FUEL AND POWER
CURRENCY DEMAND
PHILADELPHIA FEDERAL RESERVE DISTRICT
PHILADELPHIA FEDERAL RESERVE DISTRICT
MILLIONS
PERCENT
ELECTRIC POWER
USED BY INDUSTRIES
FUEL 011/
OUTPUT
BITUMINOUS COAL
I OUTPUT
1929
1932
1930
1933
1933
Source: Bureau of Mines
nearly one per cent from January to
February, when due allowance is made
for the difference in the number of
business days in each month. Com
pared with a year ago, it was 11 per
cent larger and for the first two
months this year occupancy was 12 per
cent greater than last year.
Hotel business
Philadelphia Federal
Reserve District
Occupancy.....................
% of capacity ust d:
Feb. 1934.........44.4
Jan. 1934......... 43.8
Feb. 1933.........40.6
Revenue from:
Guest rooms.............
Food............................
Other sources............
Total revenue....
Per cent change
February 1934
compared with
Jan. 1Feb. 28
1934
Jan.
1934
Feb.
1933
Jan. 1—
Feb. 28
1933
+0.2
+0.6
- 0.2
+10.7
+ 11.6
+2.6
-2.8
-1.3
+ 3.1
+ 9.6
+64.7
+ 2.6
+11.2
+70.3
-0.1
+16.2
+17.2
Total revenue of these hotels in Feb
ruary amounted to $756,748. Com
puted on a daily average basis, the in
come from guest rooms was about 3
per cent larger than in the previous
month and last year. Revenue from
food and other sources declined in the
month but exceeded that of a year ago.
Banking conditions.
The feature of
banking in this district during the past
month has been an increase from 154
to 211 millions in the reserve deposits
of member banks, giving evidence of
a substantial increase in excess re
serves. There was a slight return flow
of currency, in keeping with the usual
seasonal change at this time, but the
funds were supplied principally by a
favorable balance of 53 millions in the
settlements of commercial and financial
transactions with other districts, which
represented mainly an inflow of funds
DigitizedPage Six
for FRASER
that raised deposits here and some
sales of securities by the banks. The
press records the receipt of nearly 30
millions from New York in payment
for new bonds of the State of Penn
sylvania, which may explain a substan
tial part of the deposit increase. Treas
ury operations also contributed to the
supply of funds; although receipts of
the government included income tax
payments, there were no large security
issues involving cash payments by sub
scribers or general withdrawals from
depository banks, so that local dis
bursements were 8 millions larger than
total receipts.
Borrowings of member banks from
this bank were reduced from 1914 mil
lions on February 21 to 16 millions on
March 21, the lowest point in any
weekly statement in more than two
and one-half years. There was little
change in federal reserve note circula
tion and the effect of a rise of 59 mil
lions in total deposits here was more
than balanced by an increase of 63
millions in the cash reserves of the
bank, so that its reserve ratio rose
from 63.9 to 69.3 per cent.
With an increase of 53 millions in
reserve balances at the reserve bank,
the weekly reporting member banks
account for all but 4 millions of the
expansion in this item during the four
weeks ending on March 21. They re
port a growth of 38 millions in net
demand and time deposits. A decline
of 19 millions in holdings of United
States securities was only partly com
pensated for by an increase of 4 mil
lions in other securities and loans to
the open market; loans to customers
on securities decreased 3 millions,
while those not so secured show no
net change, a drop of 5 millions in the
first week of the period being balanced
by increases in each of the three fol
lowing weeks.
Reserves in excess of legal require
ments held for all licensed member
banks in this district rose from 27
millions in January to 3614 millions
in February. Licensed banks in
Philadelphia had an average excess
of 2114 millions in February, but
Reporting member
banks
(000,000’s omitted)
Mar.
21,
1934
Feb.
21,
1934
Mar.
22,
1933
Loans to customers:
On stocks and bonds. .
All other........................
Loans to open market. . .
United States securities..
Other securities................
$220
250
36
287
245
$223
250
33
306
244
$284
259
10
235
249
>
Total loans and investments.............. $1,038 $1,056 $1,037
573
629
658
Net demand deposits. .. .
250
301
310
Time deposits....................
16
74
74
Government deposits... .
113
52
Amounts due from banks
134
183
132
Amounts due to banks. .
203
RESERVE BANK CREDIT AND THE FACTORS WHICH AFFECT IT
Philadelphia Federal Reserve District
Feb. 22 to Mar. 21 inclusive—in millions of dollars
Sources of funds
Reserve bank credit extended in this dis
trict ..............................................................
— 3.0
Commercial and financial transactions
(chiefly interdistrict)................................... +53.4
Treasury operations........................................ + 7.9
Uses of funds
Currency demand...........................................
Member bank reserve deposits....................
Special and "Other” deposits at reserve
bank................................................................
Unexpended capital funds of reserve bank
— 1.3
+57.1
+ 2.5
+0.0
Total........................................................... +58.3
Total........................................................... +58.3
Note: This table gives, in balance sheet form, a summary of the banking changes which have had an
influence on the amount of reserve bank credit in us ie in the district.
Employment and Payrolls
in Pennsylvania
LOANS AND INVESTMENTS
REPORTING MEMBER BANKS
PHILA. FED. RES. DISTRICT
MILLIONS
(All figures are rounded from original data)
Manufacturing Indexes
LOANS TO
CUSTOMERS
500
Employment*
VA/v
■
r- MARKET LOANS
OPEN
All manufacturing...
AND INVESTMENTS
.1— I...I
1934
1933
in the week end
ing on March 23
the excess aver
aged 69 millions.
The volume of
outstanding accep
tances of banks in
this district in
creased from $14,
700,000 to $15,
200,000 during
February, while
the national total
declined. The lo
cal figures also
exceeded the
amount a year ago
by nearly onehalf.
Federal Reserve
Bank of Philadelphia
(Dollar figures in
millions)
Mar.
21,
1934
Bills discounted......... *16.1
Bills bought................
2.1
1. nited States securi
ties ............................. 167.1
Other securities..........
0.5
Total bills and se
curities .................
Fed. res. note circu
lation ........................
Fed. res. bank note
circulation—net. . .
Member bank reserve
deposits....................
Government deposits.
Foreign bank deposits
Special deposits—
member and non
member banks....
Total reserves.............
Reserve ratio..............
Changes in—
Four
weeks
-*3.4
- 2.0
One
year
-$107.2
- 8.6
0
0
+ 39.0
0
—$5 .4
+ 0.8
- 1.8
+ 17.5
+57.1
- 0.9
+ 0.3
+100.6
- 0.8
- 0.9
211 .3
2.4
0.6
6.5
- 0.2
+ 1.6
319.9
+63.2
+134.3
69.3% + 5.4% + 23.7%
Allentown.............
Altoona..................
Harrisburg............
Johnstown.............
Lancaster..............
Philadelphia.........
Reading.................
Scranton...............
Trenton.................
Wilkes-Barre....
Williamsport........
Wilmington..........
York.......................
Wage
payments
+20
+ 2
+20
+25
+26
+29
+ 7
+ 15
+35
+ 7
+18
+27
+25
+75
+56
+60
+93
+52
+46
+57
+30
+60
+40
+40
+39
+50
Building
permits
(value)
- 96
- 4
+ 66
+ 20
- 23
+ 181
- 58
- 67
- 39
- 78
+ 20
- 36
- 85
Debits
Retail
trade
sales
+ 2
+ 2
+ 5
-12
-11
- 4
+20
Feb.
1933
Jan.
1934
+ 6
+ 3
- 0
- 1
+15
+13
+23
+ 4
- 0
- 7
+ 0
+ 7
+ 1
+ 0
52
42
64
35
79
78
81
81
31
26
75
84
72
75
+51
+87
+48
+32
+44
+50
+22
+29
+60
+44
+47
+51
+ 17
+ 12
+ 12
+ 7
+ 3
+ 8
+32
+34
+26
+ 4
+ 7
+ 6
+ o
+17
+ 4
+ 3
+29
+66
+36
+27
- 2
+ 3
-22
+ 10
+36
+12
+35
+ 4
+ 8
+ 4
+11
+ 8
+ 4
+ 6
+30
+30
+29
+ 5
+ 6
+ 1
- 2
+ 15
+ 4
+ 2
- 4
+21
+41
+33
- 0
+ 9
41
52
45
+ 15
+20
+99
+47
+ 7
+12
- 3
-11
+91
+56
+ 7
+ii
* Figures from 1,736 plants.
f Figures from 1,435 plants.
Indexes of Twelve Occupations
Employment
(Indexes are percentages of the
1932 average taken as 100. In
dividual indexes are combined
proportionately into general in
dex number.)
General index
(weighted).................
Manufacturing................................
Anthracite mining...................
Bituminous coal mining...............
Building and construction..................
Quarrying and non-metallic mining.
Crude petroleum producing...............
Public utilities...............................
Retail trade......................
Wholesale trade................................
Hotels...................................
Laundries...............................
Dyeing and cleaning............................
Payrolls
Per cent
Per cent
Feb. change from Feb. change from
1934
1934
index Feb.
Jan. index Feb. Jan.
1933 1934
1933 1934
104
114
101
115
60
73
185
89
107
102
101
90
92
+14
+19
+ 7
+ 18
-13
+ 12
+67
- 6
+21
+ 7
+ 8
- 2
+ 6
+ 2
+ 6
- 1
- 0
-14
-10
-13
- 2
+ o
+ 0
+ 2
- 2
+ 5
112
129
123
151
48
77
163
86
100
94
97
88
87
+33
+51
+ 16
+69
— 12
+54
+48
-10
+ 19
+ 4
+ 15
+ 6
+26
+ 5
+12
- 7
+ 2
— 10
-{- l
— 4
4- i
- 3
+ 1
+ 6
— 1
+ 3
+19
+ 5
-14
+ 6
- 6
+ 2
+ 3
+ 7
February—
per cent
change from
+ 19
+28
+28
+21
+ 12
+17
- 3
+ 19
+26
+22
+34
+17
+ 11
+ 5
- 49.9
17.5
Manufacturing
Employ
ment
74
Iron, steel and prods. . 60
Non-fer. metal prods. 81
Transportation equip. 57
Textiles and clothing. 98
Textiles..................... 96
Clothing.................... 108
Food products............. 100
Stone, clay and glass. . 63
Lumber products........ 42
Chemicals and prods.. 94
Leather and products. 91
Paper and printing. . . 87
Printing.................... 86
Others:
Cigars and tobacco. 57
Rubber tires, goods. 85
Musical instruments 50
-$76.8
$185.8
236.1
Percentage change—February 1934 from February 1933
City areas*
Employehourst
Payrolls*
(Indexes are percentages
of the 1923-25 average
taken as 100. Total
Per cent
Per cent
and group indexes are
change from
Feb. change from
weighted proportion Feb.
1934
1934
ately.)
index
index
Feb. Jan.
Feb. Jan.
1933 1934
1933 1934
0
+31
INDUSTRIAL EMPLOYMENT AND PAYROLLS
+20
+ 5
+12
PENNSYLVANIA
12 MANUFACTURING AND NON-MANUFACTURING INDUSTRIES
PERCENT
+11
+27
+17
February 1934 from January 1934
Allentown.............
Altoona..................
Harrisburg...........
Johnstown............
Lancaster..............
Philadelpnia.........
Reading.................
Scranton...............
Trenton.................
Wilkes-Barre. .
Williamsport........
Wilmington..........
York.......................
+ 8
+ 8
+ 8
~ 1
+ 3
+ 4
- 0
+11
+ 1
+ 14
- 1
+ 5
+14
+ 18
+36
+ 14
+ 14
+ 8
+ 16
+ 11
+ 6
+32
+ 9
+ 11
+ 19
- 66
— 22
+231
- 68
- 80
+ 181
- 82
- 74
- 35
- 48
- 90
- 90
+ 7
-14
-12
-19
— 7
-15
-17
-12
-13
+ 7
-16
-13
-23
-12
* Area not restricted to the corporate limits of cjties given here.
+
+
-
EMPLOYMENT
6
8
6
+55
-
6
- 3
+ 7
+ 4
+
+
PAYROLLS
8
7
+ 8
1932
I 93 3
19 3 4
Page Seven
Index numbers of individual lines of trade and
manufacture
vy H0LESALE TRADE
PHILADELP dIA FEDERAL RESERVE DISTRICT
Philadelphia Federal Reserve District
pusrco ro» seasonal variation
PERCENT
iwj-havo.ioo
j
TOT KL
STOCKS
75
Index numbers: percentages of the 1923-1925 average taken as 100
SALES^V-
....
50
BOOTS AND SHOES
Percentage com
parison
Unadjusted indexes reflect merely the
actual change which may or may not Feb. Dec. Jan. b’eb.
be up to the usual seasonal expecta 1933 1933 1934 1934
tions.
. _____\
75
Feb.1934
with
Month Year
ago
ago
To
date
with
year
ago
Feb. Dec. Jan. Feb.
1933 1933 1934 1934
5ALE5
50
/--Va A
VV
j
\
Women’s apparel........................
Credit............................................
/
A
WfV
DRUGS
100
Retail trade
Total of all stores...........................
...... 1
Not adjusted
Adjusted for seasonal variation
Adjusted indexes allow for the usual
seasonal change which results from an
uneven distribution of business be
tween the months of the year.
STOCKS
XA..-"
62
59
55
87
61
59
54
54
46
74
62
46
54
55
53
75
51
43
- 0
+1
+ 15
+ 1
-18
- 7
+
+
+
+
+
10
8
19
12
4
18
54
49
49
81
55
56
62
56
54
89
54
74
64
56
64
86
54
74
62
56
55
84
58
74
- 2
0
-14
- 2
+ 7
- 1
+
+
+
+
+
+
16
13
12
4
6
32
40
42
37
49
43
32
101
105
84
131
79
91
45
44
47
66
49
30
44
45
44
55
41
38
52
47
48
76
52
55
+ 9
+ 8
+ 12
+ 10
- 1
+ 13
59
53
55
82
53
69
57
49
51
73
51
71
60
53
54
79
55
72
r
.v
VAV
SALES
49
51
44
67
53
36
r*
75
50
~J
DRY GOODS
Stocks of goods
Rate of stock turnover
0*
0.49
0.49
Wholesale trade
Total of all lines..............................
Electrical supplies......................
Paper.............................................
Stocks of goods
63 73 73
35 51
50
84 88 88p
31
39 42
42 68 53p
97 109 112p
40
38 37p
29 37 41
56
56 61p
57 62 62 64
18
13
18 21
105 119 110 111
33 38 42 48
78 76p
57 81
65 68 68 70
60 58 59 61 p
53 55
53 57
58 66 64 64p
- 0 + 30
- 3 + a
+ 0 + 14
+ 7 + 37
-22 + 25
+ 3 + 34
- 1 + 25
+10 + 77
+ 8 + 29
+ 3
-27
+ 1
+ 15
- 2
+ 2
+ 4
+ 4
0
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
26
9
5
33
18
29
32
74
28
51
32
79
26
38
77
24
16
46
57
21
107
32
54
68
62
47
58
13
28
6
45
34
7
2
4
10
Steel castings.......................................
Electrical apparatus...........................
Automobile parts and bodies..........
Shipbuilding.........................................
Silk manufactures...............................
Woolen and worsteds........................
Underwear............................................
Lumber and products........................
Slaughtering, meat packing.............
Sugar refining......................................
Canning and preserving....................
Cigars.....................................................
Paper and wood pulp........................
Printing and publishing....................
Leather, goat and kid........................
Paints and varnishes..........................
Petroleum products............................
Coke, by-product................................
14
24
19
10
40
9
28
11
99
96
46
31
30
100
118
21
21
11
27
48
39
32
64
18
58
14
98
92
41
34
33
90
92
14
28
17
31
28
44 45
50 44
33 37
61
60
16
13
60 55
15
15
95 108
83 110
37 43
35 40
34
43
84 114
69 84
29 36
27 25
16
16
97 87 93 85
95 64
55 57
32 43 43 44p
80 83 86 88
48 55 59 60
85 87 84 86
119 122 122 148p
98 102 103 104p
51 72 66 77
70
58 68 71
124 138 137 133p
75 74 78
51
* Computed from data unadjusted for seasonal variation.
DigitizedPage Eight
for FRASER
- 9
+ 2
-11
+13
- 1
-17
- 7
+ 2
+14
+32
+ 16
+ 14
+28
+35
+21
+25
- 7
+ 5
+ 1*
- 9
-33
+ 3
+ 2
+ 2
+ 2
+21
+1
+18
- 2
- 2
+ 6
+ 92
+ 88
+128
+263
+ 48
+ 42
+ 97
+ 38
+ 9
+ 14
- 7
+ 29
+ 46
+ 14
- 29
+ 72
+ 18
+ 45
+ 2*
- 12
+ 16
+ 39
+ 9
+ 27
+ 2
+ 24
+ 6
+ 51
+ 20
+ 8
+ 52
+ 111
+ 88
+ 68
+181
+ 44
- 3
+ 87
+ 23
+ 3
- 7
- 9
+ 20
+ 30
+ 4
- 37
+ 69
+ 17
+ 44
+ 3*
- 5
+ 6
+ 37
+ 10
+ 20
+ i
+ 25
+ 8
64 67
31 35
91 90p
32 35
45 47p
101 104p
30 30p
21
29
58 59p
58 61 64
16
18 15
111 108 113
33 40 47
72 74 72p
73
70 71
55 60 63p
46 46 49
63 63 64p
0.76
15
25
20
11
39
9
30
11
97
102
48
33
30
104
129
15
20
11
82
99
72
29
67
48
85
125
105
+ 44
51
+ 27
57
+ 5 122
+ 45
54
p—Preliminary.
69
34
85
32
69
98
44
60
53
A
SALES
25
f
ELECTRICAL SUPPLIES
125
100
56
45
77
30
42
83
30
23
47
+ 20*
Output of manufactures
STOCKS
50
v\
\/Wv
STOCKS
75
■-...X
50
A A
SALES
V1
^
4k
[\
25
GROCERIES
SALES
100
75
w*
5T0CK5
50
0.91
HARDWARE
100
27 30
45 43
36 45
30 35
62 57
14
14
56 59
14
14
103 96
94 85
38 37
36
37
34
34
88 87
68
91
11
20
27 25
17
14
82 83
93 104
37 66
43 42
60 70
56 58
88 84
104 125
111 109
72 66
66
64
138 135
73 74
28
47
45
42
57
13
60
15
106
116
44
43
44
119
91
25
24
16
84
87
83
41p
74
60
86
155p
112p
77
68
132p
82
75
STOCKS
....... .
V
50
SALES"
25
JEWELRY
lOO
75
.
STOCKS
Y
50
'A\
25
V
PAPER
STOCKS
75
AA<;
■A
SALES
50
1
25
1931
1932
1933
1934
@FedFRASER