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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT AUGUST i, 1930 » By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Financial Conditions in the United States Industrial production decreased in June by more than the usual seasonal amount and factory employment and payrolls declined to new low levels. The volume o f building contracts awarded was large. Prices declined sharply and money rates continued downward. I Industrial production and em ploy m ent. In June industrial production showed a further substantial decrease and the Board’s index, which is ad justed for ordinary seasonal variations, declined to the lowest level since last December. Output o f steel ingots de clined in June and early July more than is usual at this season, while automobile production was sharply curtailed to a level considerably be low that o f the same period o f the past two years. Cotton consumption, already at a low level, declined further in June. Output o f bituminous coal and co p p e r con tin u ed in small volu m e. W ool consumption and shoe production increased slightly and cement output, as in the preceding month, was at a high level. Factory employment and payrolls decreased further in June. The number employed at steel plants and in the automobile, agricultural implement, and cotton goods industries, declined more than is usual at this season, and employment in the woolen goods and lumber industries continued at un usually low level. The value o f building contracts awarded in June, $600,000,000, accord ing to the F. W . Dodge Corporation, was about 30 per cent more than in May and the largest since last July. The increase reflected chiefly unusually large awards for natural gas pipe lines and power plants; the volume o f contracts for residential building was somewhat smaller than in May. In early July the total volume o f con tracts was small. Department o f Agriculture estimates based on July 1 conditions indicate a decrease from last year o f about 20,000,000 bushels in the winter wheat crop and a corresponding increase in spring wheat. The corn crop is ex pected to be about 2,800,000,000 bushels, 7 per cent larger than last year and 4 per cent above the five year average. Area planted to cotton is esti mated at 45,815,000 acres, 2.7 per cent less than last year. pm CENT Index num ber of production of manufactures and minerals combined, adjusted for seasonal variations (1923-1925 average ■= 100). Latest figure June 102. The volume o f freight car loadings in June and early July continued to be substantially below the corresponding periods o f 1928 and 1929. Preliminary reports indicate that the decline in department store sales from a year ago was o f larger proportions in June than in any previ ous month this year. Distribution. Wholesale prices. Commodity prices declined more rapidly in June than in any other recent month, and the index o f the Bureau o f Labor Statistics at 86.8 per cent o f the 1926 average was about 10 per cent below the level o f a year ago. Prices o f many important agricultural commodities and their manufactures declined further and M onthly averages of daily figures for 12 Federal reserve banks. Latest figures are averages of first 19 days in July. PERCENT Indexes of the United States Bureau of Labor Statistics (1926 «= 100, base adopted by Bureau). Latest figures June, farm products 88.9, foods 90.5, other com modities 85.7. M onthly averages of weekly figures for report ing m em ber banks in leading cities. Latest figures are averages of first three weeks in July. Page One those o f certain leading imported raw products— silk, rubber, and coffee— reached new low levels. There were also further declines in iron, steel, and copper. Prices o f raw wool, hides, and raw sugar increased slightly dur ing June. Early in July, prices o f meats were stronger but there were further declines in many other com modities. Loans o f reporting member banks in leading cities declined somewhat between the middle o f June and the middle o f July, and, on July 16, were $60,000,000 smaller than five Bank credit. weeks earlier. Loans on securities de creased by $140,000,000 while “ All Other” loans increased by $80,000,000. The banks’ investments increased fur ther by about $280,000,000 during this period and were in larger volume than at any other time in the past two years. Member bank balances at the re serve banks increased, and in the week ending July 19, averaged $60,000,000 more than five weeks earlier and at the same time their borrowings from the reserve banks declined by nearly $20,000,000, reflecting an increase in the reserve banks’ holdings o f accep tances and government securities, a further slight growth in gold stock, and a continued decline in the volume o f money in circulation. Money rates in the open market con tinued to ease and in the middle o f July rates on 90 day banker’s accept ances at \y% per cent were at a new low level, while rates on commercial paper at 3-3 J4 per cent were at the low point o f 1924. During July the reserve bank discount rate was reduced at Boston from 3j^ to 3 per cent and at Philadelphia, Atlanta, and Richmond from 4 to per cent. Business and Financial Conditions in the Philadelphia Federal Reserve District The mid-summer quiet in trade and industry has been somewhat more pro nounced this year than in other recent years. Rates on commercial loans have declined and the demand for funds by business has been in smaller volume than a year ago. Prices o f commod ities generally have continued down ward, and the decline in the wholesale level during June was sharper than in many previous months. Stocks o f fin ished merchandise at retail and manu facturing establishments have been re duced, except for seasonal increases in some lines. The market for manufactured goods has slackened ma terially, sales o f the majority o f prod ucts having declined recently to a rela tively low level, a fea tu re which is partly characteristic o f this season. Continued price recessions have been more widespread than for many months. Factory activity has been reduced further, save in those industries which ordinarily enjoy seasonal expansion at this time. Both employment and wage payments in this section showed more than the expected declines between May and June, owing mainly to a rather sharp curtailment in some o f the leading industries. In compari son with June, 1929, the number of wage earners in Pennsylvania fac tories was about 6 per cent smaller and the amount o f wages paid was nearly 15 per cent less. The sharpest drop in both occurred in metal, tex tile, and stone, clay and glass prod ucts. Production o f fabricated metal products shpwed a further decline o f more than the usual seasonal Manufacturing. Page Two June, 1930 Business indicators Philadelphia Federal Reserve District Percentage change since Amount June. 1929 Retail trade— estimated net sales (154 stores) * ..................................................................................... Department stores (6 3 )............................................................ M en’s apparel stores (2 0 )....................................................... W om en’s apparel stores (1 7)............................................ Shoe stores (3 8 ).......................................................................... Credit stores (16)........................................................................ *20,835,000 $17,588,600 $592,900 $1,913,500 $394,700 $345,300 W holesale trade— net sales (100 firm s)*.................................. Boots and shoes (5 )................................................................... Drugs (10).................................................................................... D ry goods (1 2).......................................... ................................. Electrical supplies (4 )................................................................ Groceries (3 1).............................................................................. Hardware (2 1 )............................................................................. Jewelry (1 0 )................................................................................. Paper (7 )...................................................................................... $267,800 $3,342 $43,380 $11,551 $13,916 $108,410 $61,145 $10,810 $15,246 Productive activity— * Employment— 839 plants in P enna....................................... Wage payments in above plants............................................ Shoe production!— 77 factories ............................................. Hosiery production!— 130 mills............................................. W ool consum ption!— 71 mills................................................. Active cotton spindle hours (Penna.).................................... Pig iron production.................................................................... Iron casting production— 34 foundries.................................. Steel casting production— 11 foundries................................ Anthracite.................................................................................... Bituminous coal (Penna.) ....................................................... Petroleum receipts at Port of Philadelphia — domestic and foreign.............................................................................. C em ent......................................................................................... Electric power output— 12 systems....................................... Financial and credit— Debits (check payments)— 18 cities...................................... Loans and investments— middle of July— 102 member banks......................................................................................... Bills discounted held by F. R. B. of Phila. (daily average) Bankers’ acceptances outstanding— end of m onth............. Commercial paper sales— 4 dealers........................................ Commercial failures—-number................................................. Commercial failures— l i a b i l i t i e s .......................................... Building and real estate— Building permits— 17 c i t i e s .........., ........................................ Building contracts awarded..................................................... Number of real estate deeds recorded (Philadelphia cou n ty)...................................................................................... Value of mortgages recorded (Philadelphia cou n ty).......... Sheriff sale— number of writs issued for July— (Philadel phia cou n ty)............................................................................ Miscellaneous— Freight car loadings (Allegheny district).............................. Tonnage of vessels (Port of Philadelphia)........................... Sales of life insurance (Penna., N. J., and D e l.)................. Automobile sales registrations of new passenger cars........ 318,854 $8,127,334 — 4 .4 — 4 .2 4- 10.2 7 .8 — 1.3 17.4 _ — — — + + — + 4 .5 16.8 3 .9 12.7 0 .1 0 .9 11.9 9 .9 12.0 _ _ doz. prs.......... 54,307 lbs..................219,632 615,736 to n s...................6,852 ton s....................... 181 to n s.......................264 to n s .............. 208,100 to n s .............. 389,800 2 .3 6 .0 8 .2 + 3 .8 4- 2 .7 4- 3 .8 — 2 2.3 — 10.0 — 0 .8 — 9 .0 2 .8 - bbls................. 65,800 bbls............... 113,233 K W H ... 16,863,000 + 3 4.8 — 5 .3 4 .0 p rs..................... 4 2 ,5 3 4 — — 4 .6 $ 2,633,256,000 + $ 1,721,600,000 $28,100,000 $20,292,000 $8,437,500 $2,962,348 0 .8 — 5 .7 — 4 .3 — 27.7 — 10.6 + 97.7 $11,763,417 $61,658,900 + 54.1 4-165.1 101 4,425 $11,644,163 1,452 791,842 ton s......... 4,4 7 5,23 6 $114,517,000 18,894 * Daily average of monthly figures. Employment and wages weekly averages, f Bureau of Census preliminary figures. + _ M ay, 1930 — — — — — - _ 12.0 12.2 10.3 8 .6 14.9 2 2.0 _ 10.5 2 1.9 2 .0 17.8 35.0 2 .5 15.6 24.6 19.2 — 6.1 14.9 — + — — — — 1.1 4 3.0 16.2 1.9 2 .6 + 14.9 + — — — + 2 3.5 8.1 3 .7 - 16.5 + — 1 .2 66.8 + 33.4 4-133.9 + 62.9 4-137.4 + — _ 2 7.6 4- 60.9 14.5 9 .6 — + 27.4 4- 5 4.8 _ — + 6 .4 7.1 2 .0 6 .3 17.8 — 3 5.3 _ 44— 15.3 9 .7 4 .3 21.2 amount. Reduction in the daily out put o f pig iron, moreover, was nearly twice as large as is usual for June. The total pig iron production was about 19 per cent smaller in the first half o f this year than last, but over 6 per cent larger than in the same period o f 1928, whereas in the coun try it was about one per cent less than two years ago. All lines in cluded •in the transportation equip ment group likewise reported a let down with the exception o f the ship and boat building industry, which continued its high rate o f activity. Prices o f metal products generally have declined during the month. Rather exceptional slackness pre vails in the majority o f textile branches. Nevertheless, the output o f woolens and worsteds, knit goods, in cluding hosiery, and hats was larger in June than May. Mill takings o f wool fibers, computed on a daily basis, also increased nearly 3 per cent in the month; takings o f carpet wool, too, showed a rise o f almost 5 per cent. W hile the number o f ac tive cotton spindle hours in this section showed a noticeable gain, the output o f cotton piece goods declined, after a slight upturn in the earlier months. Operations o f carpet and rug plants continued sharply downward, a trend which began at the end o f last year, and the present level is sub stantially lower than in any month o f the past seven years. Prices o f tex tile products generally have contin ued to show weakness, although lately some strength has been shown in quotations for wool fibers. Productive activity o f the food group generally has declined in some lines to the lowest level this year. The output o f creamery products, which customarily reaches a high peak in mid-summer, seems to have dropped in June, as indicated by the takings o f milk and cream for manu facturing purposes. In the first three weeks o f July, there was a decline in the output o f ice cream and con densed milk. Activity o f local sugar refineries followed the usual declining trend in June; the national per capita consumption o f sugar is estimated to have been nearly 5 per cent smaller in the first half o f this year than last. Production o f cigars and other to bacco products was in excess o f the May volume by a slightly smaller amount than was to be expected, and the present rate o f operation is at a higher rate than in the past few years. June, 1930 (Daily average) Electric power Philadelphia Federal Reserve District 12 Systems Change Change from from June, M ay, 1929 1930 Per cent Per cent Rated generator capacity. . . . + Generated outp ut..................... H ydro-electric....................... Steam ...................................... Purchased............................... + 3 .7 + 6 .6 + 4 .7 - 2 .2 - 4 .0 8 .9 1.6 4 .5 Sales of electricity.................... Lighting.................................. M unicipal........................... Residential and commercial................................... P ow er....................................... M unicipal........................... Street cars and railroads.. Industries........................... + 2 .7 + 10.6 + 5.1 - 0 .4 2 .7 1.8 + + + + + + - 2 .8 1.8 1.3 + 2 .1 * All other sales............................ -1 2 .3 7 .3 11.3 3 .3 55.7 7 .3 1.8 * 0 -1 2 .4 * W orking days average. In response to a well sustained de mand, the market for kid leather is active and prices are fairly steady. The hide market, on the other hand, is quiet and prices show weakness. Business in goatskins appears to be fair for this season. Local tanners continue to operate at a level which was increased slightly between May and June. But the daily output o f boots and shoes was smaller in June than in May by a noticeably larger amount than is usual at that time, and the rate o f mid-summer production reached the lowest point since 1926. Further decline is reported in the activity o f paper and wood pulp mills in contrast to former trends at this season, and the present rate is esti mated to be the lowest since July, 1924. Curtailment o f activity in print ing and publishing likewise has con tinued without interruption since March. Some improvement in operation has taken place in the lumber industry and planing mills, but the extent o f the gain in June was not quite up to ex pectations and the level o f activity re mains considerably lower than in any month o f the last seven years. The daily output o f cement turned down ward instead o f continuing upward in accordance with past experience which shows that June is usually the highest month in point o f production. The vol ume o f output thus was the lowest for that month since 1923. Shipments also declined, but stocks showed a slight accumulation at the end o f the month. The demand for brick and slate is only fair, though it compares well with the previous month. Brick yards report some let-down, while slate plants show practically no change in operations. Stocks o f both are somewhat heavy and larger than on the same date last year. Building and real estate. Activity in the construction industry in June was at a higher rate than in the previous month. This is shown by the indexes o f employment and wage payments as well as by the number o f hours worked in building trades o f Pennsylvania. The gain in the month was especially pro nounced in the Philadelphia area. The value o f contracts awarded for new operations increased very sharply, contrary to the usual seasonal tend ency. This rise was due mainly to new awards for industrial buildings, and public works and utilities, which were considerably in excess o f the June figure in the previous two years. Residential buildings also showed a slight increase in the month but were the smallest for June since 1921, and in the first half o f this year residential contracts were only about one-third o f those in the same period in the past three years. Comparisons o f all awards in the first six months o f this year with the same period o f other recent years follow : Per cent change from Building contracts awarded (000s omitted in dollar figures) First six months, 1930 Philadelphia............... R eading....................... Scranton...................... Cam den....................... T ren ton....................... W ilm ington................. $88,877 1,710 2,952 2,372 2,508 3,692 3 .6 - 71.9 + 113.1 - 78.9 - 70.7 - 41.1 -1 8 .7 -4 1 .6 + 10.6 -4 6 .1 -4 0 .5 + 2 7 .7 T otal for Philadelphial Federal Reserve District, ineluding all citie s... 221,115 - - 1929 6 .8 1925-28 average 5 .0 Source: F. W . Dodge Corporation Latest information on contract awards shows that in the first 18 days o f July the amount o f these awards de clined materially from the daily aver age in June and was somewhat smaller than the average for July, 1929. The proposed expenditure under permits issued in seventeen leading cities was about 54 per cent larger in June than in May but nearly 28 per cent smaller than in June, 1929. The real estate market generally continues quiet. The demand for houses costing less than $6,000 has been somewhat more active since the middle o f last month, but the sale of houses over that amount has declined. Page Three Renting o f houses and apartments shows little change, the present de mand being most active for houses leasing at from $20 to $50 a month. Rents for houses and apartment space have declined recently and are lower than they were at the same time in the past few years. The number o f deeds and the value o f mortgages recorded in Philadelphia declined between May and June and were substantially below the level o f June, 1929. The'num ber o f writs is sued for sheriff’s sale o f properties in July reached the highest point in many years. The chart on page 7 shows that since 1924 the trend in foreclosures has moved upward from year to year with striking persistency. In interpreting these court orders for sheriff’s sale, it is necessary to remem ber, first, the fact that one writ may cover more than one property and second, the fact that, after listing, some properties are withheld from such sales, although the number o f these is usually small in comparison with properties sold by the sheriff. favorable to crop growth have pre vailed throughout the greater part o f this district during the past month. The early crop o f potatoes has been dug and corn is earing in many sec tions. Although truck crops made but little progress during the dry weather, they are nevertheless reported as in good condition and maturing normally. Estimates o f the fruit crop continue adverse, but vineyards look promising and berries are fairly plentiful. The harvesting o f winter wheat is nearly completed and threshing is progress ing rapidly, production estimates for this district, as o f July 1, indicating a^ slightly larger crop than in 1929. The present condition o f dairy cattle compares favorably with the July aver ages o f the past ten years, while hogs are reported as showing little or no improvement. Pastures and meadows have suffered to some extent from lack o f moisture but are still in a fairly satisfactory state; however, their con dition, on July 1, was nearly 10 per cent below the ten-year average for that date. Coal. The market for Distribution. Shipments o f commodi Pennsylvania anthracite remained quiet in June with very little interest being mani fest by householders. The usual sea sonal increase in prices occurred. The daily output o f collieries declined and the total production for the month amounted to 745,000 tons less than in May. Production in the middle two weeks o f July increased by a larger amount than in 1929, after the usual sharp decline in the first week, which included Independence Day. The total output in the first six months o f 1930 showed a decline o f 8.3 per cent from the corresponding period o f a year ago and was 7.2 per cent smaller than in 1928. Continuing to reflect a reduced rate o f industrial activity during the month, the daily output o f bituminous coal declined again in June to the lowest point this year and the total production in Pennsylvania amounted to only 9,744,000 tons, as compared with i 1,357,000 tons in June, 1929. Colliery output in the first six months o f 1930 was nearly 11 per cent smaller than in the same period o f last year but showed an increase o f about one per cent over the first half o f 1928. Agriculture. Except for a short period o f intense heat, which was accom panied by severe drought in the latter part o f July, weather conditions highly Page Four ties by railroad freight in this section declined about 6 per cent between May and June and early reports for the first part o f July also show a further de crease. This falling off in total load ings since May has been due largely to a smaller volume o f coal, merchan dise, and miscellaneous commodities. Comparisons with last year, when freight car loadings were at an un usually high level, are adverse, since in the first half o f this year shipments dropped about 10 per cent in the total and more than 9 per cent in the move ment o f merchandise and miscella neous goods, which are made up largely o f manufactured commodities. In com parison with the first six months o f 1928, railroad shipments in the ag gregate were about 5 per cent smaller, reflecting less favorable business con ditions this year than in either o f the past two years, and an increasing tend ency to transport goods by truck, particularly for the shorter hauls. The dollar volume o f sales by whole sale dealers and jobbers o f this district declined between May and June by a slightly smaller amount than is usual. Reduced sales o f shoes, drugs, dry goods, hardware, and paper offset sea sonal gains in electrical supplies, groc eries, and jewelry. In the early part o f July, there were further decreases as is to be expected for that month. In comparison with a year ago, sales in the aggregate were nearly 11 per cent smaller. All lines except drugs had a smaller volume o f business, declines ranging from 2.5 per cent in groceries to 35.0 per cent in electrical supplies. In the first half o f this year, the dollar volume o f sales likewise was uniformly smaller, declines vary ing from one per cent in drugs to nearly 25 per cent in jewelry. This reduction in dollar sales was due partly to lower prices. The official index o f wholesale prices shows a steady de cline since last year and in June reached 86.8 per cent o f the 1926 aver age, showing a drop o f about 10 per cent since June, 1929. Inventories held by dealers in dry goods, electrical supplies, groceries, jewelry, and paper were larger at the end o f June than on the corresponding day o f the previous month, but in the majority o f instances they were smaller than on the same date last year. Daily retail sales in the four lines, including department, apparel, shoe, and credit stores, dropped between May and June by a somewhat larger amount than was to be seasonally ex pected. This decline is attributable principally to smaller sales by depart ment, credit, and women’s apparel stores. Early reports covering the first fortnight o f July indicate that retail business varies from fair to poor, and further declines in sales were rather widespread. Price reductions appear to be more numerous than for many months past. In comparison with June, 1929, retail dollar sales were about 12 per cent smaller. The largest percentage de clines occurred in department, shoe, and credit stores. Sales in the first six months o f this year were about 5 per cent smaller than in the same period last year, the relative decline being fairly uniformly distributed among the four reporting lines. A ll city areas except Johnstown had smaller busi ness thus far this year than last. Stocks o f merchandise at retail establishments fell off nearly 5 per cent in the month and were almost 6 per cent smaller than at the end of June, 1929. This reduction in inven tories from a year ago was due to the smaller supply o f goods on hand in department and credit stores. The rate o f turnover declined slightly since June, 1929, but in the first half o f the year it remained practically the same as in the corresponding period last year. Sales o f new passenger automobiles as measured by registrations in this district declined seasonally and were about 21 per cent smaller than in the same month last year. The number o f units sold in the first half o f this year was nearly 18 per cent smaller than in the same period last year but almost 5 per cent larger than in 1928. Commercial failures declined nearly 11 per cent in number but about doubled in liabilities between May and June. The number o f liquidations thus far this year exceeded that o f the previous year by almost 34 per cent and the amount involved was 48 per cent greater. Financial conditions. Current reports continue to bear testimony to easy credit conditions in this district, as in the country. In recognition o f the prevailing ease in money rates, the strong reserve position, and gen eral business conditions, this bank re duced its discount rate on July 2 from 4 to 3j^2 per cent. The renewal rate for call money in Philadelphia has remained at 4 per cent over the past two months, but the rates o f large member banks in this city for commercial loans to prime customers have declined. The aver age o f these commercial rates in the middle o f July was 4.53 per cent, as compared with 4.78 per cent a month a g o ; this is the lowest rate since early in 1928. The condition o f ease already re ferred to is apparent in the reports of the member banks. During the four weeks ended July 16 the net demand and time deposits o f these banks in creased by 39 millions, but loans and investments expanded only 13 millions, loans on securities and investments increasing and other loans declining. The amounts held on deposit with Reporting m ember banks in 21 leading cities (000,000s omitted) Reported b y 89 banks: Loans on securities........... $ Other (largely commer cial) loans........................ Reported by 102 banks: T otal loans and discounts. Investm ents........................ Net demand and time de posits ................................ Changes in— July 16, 1930 Four weeks One year 605 + $19 +$31 589 - - 10 1,253 468 + + 8 5 1,487 + 39 + 25 16 + 100 other banks showed a material gain, and reserves increased. Figures for mem ber banks in four o f the largest cities for the following week reveal that a part o f the deposit gain was lost and that there was a de crease in reserves. A preliminary tabulation, giving the distribution o f the loans and in vestments o f all member banks in this district on June 30, shows that loans in total had changed little since March. In the second quarter o f the year holdings o f bought commercial paper and loans on securities in creased, but there was little variation in mortgages and other real estate loans. Investments increased materi ally in this period. The money market in this district gained funds during the five weeks ended July 23 through favorable bal ances in the settlements and a return o f money from circulation, reflecting partly a seasonal decline in demand. The funds so gained, however, were available only in small part for the reduction o f reserve bank credit, being largely absorbed by the operations o f the Treasury, which withdrew about 13 millions from depositary banks and transferred a substantial sum to other districts. These transfers involved a loss o f gold which was in excess o f the amount gained through the com mercial and financial settlements. A summary o f the funds gained by the money market and their disposition is given in the accompanying table. The borrowings o f member banks have been in smaller volume than at any time since 1924, and are, in fact, little above the exceedingly low level reached in that year. Holdings o f pur chased bills by this bank have fallen below one million dollars, reflecting maturities and a lack o f purchases during recent weeks owing to the rela tively high buying rate o f the bank. The reserve ratio o f this bank on July 23 was 83.9 per cent. Although commercial paper sales, reported by four dealers operating in this district, declined in June, their sales in that month compared very fa vorably with those o f a year and two years earlier, as may be seen in the following table: Sales to paper sales (four dealers) T otal sales C ity banks Country banks 1930— A p r ... $4,265,000 $4,072,500 $ 8,337,500 M a y. . 7,762,500 3.915.000 11,677,500 June.. 5,000,000 3,4 3 7,50 0 8.437.500 1929— J u n e .. 2.7 8 0.00 0 827,500 3.607.500 1928— June. . 1.175.000 1.155.000 2,330,000 Federal Reserve Philadelphia (000,000s omitted in dollar figures) Changes in— July 23, 1930 Gains and Losses of Funds by the M oney Market in the Philadelphia Federal Reserve District June 19 to July 23, 1930 (In millions of dollars) Bills discounted for banks in Philadelphia.............. S 1.4 Other communities...................... 19.6 Funds gained: Gold (largely through favorable balances in interdistrict settlements)............................ 6 .8 Currency— return from circulation............. 4 .8 Decline in deposits of banks at reserve bank 1.9 Dividend paid b y reserve bank...............................6 T o t a l b ills d is counted............. $ 21.0 Bills b ou gh t.............. .9 United States securities.............. 50.2 Other securities. . . . 1.0 14.0 Disposition of funds: Treasury operations— excess of collections over disbursements...................................... 12.5 Federal reserve credit in use*, decline i n . . . 1.5 T otal bills and securities............... $ 73.1 Federal reserve note circulation........ 123.9 T otal deposits.......... 139.3 Cash reserves........... 220.7 Reserve ratio............ 8 3 .9 % 14.0 Five weeks One year -$ 1 .2 -$ 3 5 .0 - - 3 .3 22.1 —$4.5 - 1.8 - $ 5 7 .1 2 .8 0 0 + 3 3.7 + .7 —$6.3 -$ 2 5 .5 - 4 .2 - 2 .0 - 4 .9 + 0 .2 % + + 26.2 1+ 1.4 6 .8 % * Includes bills discounted, bills bought, and float. Page Five Employment June, 1930 Employment and wages in Pennsylvania Payrolls June, 1930 Per cent change since June index* 9 3.5 M etal products.......................... Blast furnaces........................ Steel wks. & rolling m ills.. . Iron and steel forgings........ Structural iron w ork ........... St. & hot wtr. htg. a p ......... Stoves and furnaces............. Foundries............................... Machinery and parts........... Electrical apparatus............ Engines and pum ps............. Hardware and tools............. Brass and bronze products. 90.6 54.5 82.4 90.6 127.4 102.0 84.2 95.7 99.1 114.0 9 0.8 89.3 101.6 Transportation equipm ent.. . . A utom obiles........................... Auto, bodies and parts. . . . Locom otives and cars......... Railroad repair shops.......... Shipbuilding. ........................ 7 8 .3t 80.6 7 6.0 4 7.9 79.4 92.3 - 6.1 Per cent change since M ay, 1930 - June, 1929 M ay, 1930 2 .3 9 0.7 -1 4 .9 - -1 0 .3 -1 5 .0 - 9 .8 -1 2 .1 + 6 .9 - 1.8 + 2 .8 - 9 .4 -1 0 .2 -1 2 .4 - 9.1 -1 7 .6 -1 8 .6 - 2 .2 - 5 .7 - 2 .8 - 4 .1 - 0 .4 - 1.8 + 2 2 .2 - 3 .2 - 1.4 - 0 .7 - 5 .0 - 4 .3 - 3 .5 89.0 54.5 80.6 78.0 124.6 97.7 74.3 8 3.8 88.4 126.8 9 0.5 81.6 9 8.6 -1 9 .7 -1 6 .2 -2 2 .1 -2 6 .4 + 5 .4 -1 3 .4 + 8 .0 -2 5 .4 -2 5 .5 -1 3 .2 -1 7 .5 -2 6 .3 -2 4 .3 - 7 .0 - 7 .9 - 8 .8 -1 3 .1 - 2.4 - 3 .7 + 24.2 -1 1 .6 - 6 .3 - 2 .8 -1 0 .1 - 3 .5 - 3 .9 - + 11.6 -2 6 .4 -1 0 .6 - 0 .5 + 61.6 - 7 .8 - 5 .7 -1 6 .0 - 9 .8 + 1.7 + 2 .9 67.9 66.0 4 7.8 78.0 147.7 7 4 .l t - 8 .0 + 10.8 -3 0 .8 -1 2 .5 - 6 .0 + 58.5 -1 1 .5 - 3 .8 -1 7 .8 -1 4 .0 - 8 .0 - 5 .5 1.5 6 .0 Textile products........................ C otton goods......................... W oolens & worsteds............ Silk g o o d s ............................... Tex. dyeing & finishing.. . . Carpets and rugs.................. H a ts......................................... H osiery................................... Knit goods. O ther................ M en’s clothing...................... W om en’s clothing................ Shirts & furnishings............. 97.2 66.7 56.4 109.6 93.2 65.6 88.8 117.8 9 2.3 83.7 110.5 125.0 - 6 .9 -2 6 .8 -1 4 .2 + 0 .9 -1 2 .7 -1 1 .1 -1 0 .3 - 9 .9 - 4 .9 - 3 .0 - 6.1 - 4 .0 - 2.2 -1 0 .9 + 6 .0 - 2.2 - 2.2 -1 0 .4 - 0 .3 - 1.8 + 1.0 - 1.8 - 1.5 - 6.7 88.0 54.7 52.2 106.6 96.4 4 6.5 7 1.6 112.5 9 4.8 78.5 108.7 112.4 -2 4 .7 -3 9 .5 -2 0 .2 -1 2 .5 -1 6 .2 -3 2 .1 -3 3 .5 -3 4 .9 -1 7 .9 -1 5 .9 - 7 .7 -1 7 .8 - 1.3 -1 3 .4 + 10.4 - 3 .5 + 7 .6 -2 6 .8 + 12.1 + 2 .1 + 5 .2 -1 0 .7 - 4 .2 - 5 .0 Foods and toba cco................... Bread & bakery prods........ Confectionery........................ Ice cream ................................ Meat packing........................ Cigars & tob a cco.................. 112.3 109.8 9 5.8 129.6 95.6 114.9 + 7 .2 - 1.0 - 2 .4 - 3 .6 - 2 .0 + 17.8 + + + 0 .2 3.1 0.7 3 .0 0 .8 1.2 108.9 112.2 98.1 124.9 9 2.3 103.1 + - 0 .8 - 7 .0 + 0 .3 - 2 .9 + 15.7 - 0 .5 - 1.0 - 4 .2 - 2 .6 - 2 .7 + 3 .0 Stone, clay & glass prods....... 70.6 8 3.8 62.7 69.2 -1 6 .6 - 9.1 - 9 .9 -2 8 .6 - 7 .0 - 5.2 - 2 .5 -1 2 .7 6 3.9 74.1 60.0 6 3.8 -2 3 .8 -1 9 .4 -1 7 .2 -3 5 .0 -1 2 .3 - 9 .6 - 9 .0 -1 8 .9 Brick, tile & p ottery............ Cem ent................................... Glass........................................ 3 .4 7 0.4 7 0.0 66.9 6 6.0 -3 0 .6 -2 6 .7 -3 8 .0 - 7 .4 + 0 .6 + 7 .0 - 3 .9 + 1 .2 0.3 4 .5 2.1 7 .0 1.2 1.4 108.0 78.1 96.3 *7 .3 104.3 144.1 + 5.1 -1 3 .0 + 14.9 -1 6 .3 - 9.1 + 10.8 - 1.1 3 .6 0 .9 3.1 4 .9 0 .0 - 1.2 + 0 .7 - 2 .5 - 9 .5 - 1.1 - 0.3 + 1.5 - 0.1 -1 4 .5 + 2 .7 99.7 104.9 96.4 89.1 103.5 - 1.8 + 0 .9 - 5 .7 - 4 .3 - 6 .2 + - 1.1 0.1 2 .3 2 .6 4 .8 98.7 - 2.1 - - 2 .4 - 1.7 2 .9 2 .0 + + + 105.5 Paper and wood pulp.......... 85.1 Paper boxes and bag s......... 89.8 Printing & publishing......... 103.9 84.9 96.6 112.2 -1 0 .1 - 6 .0 - 3 .8 Lumber products...................... 79.0 Lumber & planing m ills... . 80.3 Furniture................................ 73.9 W ooden boxes....................... 7 1.5 -2 0 .6 -2 2 .5 -2 5 .5 + 1.4 + 7 .0 + 2 1 .3 - 0 .9 + 4 .7 Chemical products................... 101.3 Chemicals and drugs........... 7 6.8 C ok e........................................ 112.2 E xplosives.............................. 78.6 Paints & varnishes............... 98.9 Petroleum refining............... 128.5 + 3 .4 -1 0 .7 + 19.6 -1 2 .9 - 3 .2 + 4 .7 + + + Leather & rubber prods.......... 97.1 Leather tanning................... 105.9 Shoes....................................... 93.5 Leather products, O ther. . . 85.1 Rubber tires & goods.......... 90.9 Paper and printing................... Anthracite.................................. 91.5 Construction & contracting.. . n o . 2 Street railways.......................... 84.5 94.5 91.7 - 4.1 - 1.8 8 .0 - 3 .5 3 .8 0 .5 0 .6 0 .2 0 .5 - 3 .2 + + 4.1 6 .2 0 .9 0.8 0.4 * 1923-1925 average =100. t Preliminary figures. Page Six by city areas * June index* June, 1929 All manufacturing industries (5 1 )...................................... Percentage change June, 1930 compared with June, 1929 5 .2 - 5 .4 + 7 .9 - 2 .0 74.1 + 4 .4 -1 2 .0 - 4 .7 100.0 91.7 -1 0 .2 - 5.3 + - 3 .3 1.3 Allentow n............... A ltoona................... Harrisburg............. Johnstown.............. Lancaster............... Philadelphia........... R eading.................. S cranton................. T renton................... W ilkes-Barre......... W ilm ington............ Y o r k ........................ E m ploy ment W age payments - 4 .2 - 1.8 - 7 .0 -1 2 .4 - 5 .4 -1 1 .3 - 5 .2 + 2 .3 -1 0 .8 + 16.1 - 9 .4 - 0 .3 - 5.1 -1 4 .0 - 6 .8 -1 8 .1 -2 4 .7 - 6 .2 -1 6 .8 -2 5 .6 - 8 .4 -1 9 .0 + 2 .9 -1 7 .1 + 1.1 - 8 .4 Building permits (value) - 5 9.0 5 8.3 7 5.5 + + + + - 1 .8 18.7 2 8.0 9 0.0 4 2.6 2 2.5 76.6 12.5 7 .0 Debits Retail trade sales -1 1 .5 - 4 .0 -1 4 .8 -1 6 .3 -1 0 .0 -1 8 .4 -1 3 .6 -1 0 .9 -1 2 .4 - 9 .6 -2 2 .5 - 4 .3 — 6 .1 -1 4 .0 -1 2 .3 -1 0 .8 -1 0 .1 -1 3 .8 -1 1 .4 -1 4 .1 -1 6 .4 - 8 .3 -1 6 .9 - 3 .3 - 3 .4 - 2 .5 - 1.9 + 1 .8 + 5 .4 - 2 .4 + 3 .2 - 3 .8 + 3 .5 - 6 .3 + 2 4 .5 - 2 .7 - 8 .2 -2 8 .3 -1 9 .7 -1 9 .4 -1 4 .5 - 6.1 -1 1 .9 -2 0 .2 + 5 .7 -1 4 .3 -1 2 .5 June, 1930 compared with M ay, 1930 Allentow n............... A ltoona................... Harrisburg............. Lancaster............... Philadelphia........... Reading................... S cranton................. T renton................... W ilkes-Barre.......... W ilm ington............ Y o r k ........................ + + + - 2 .2 3.1 3 .7 7.1 0 .2 2.1 2 .2 1.8 1.6 0 .7 5 .2 1.2 0 .1 - 6 .0 - 4 .1 -1 0 .7 -1 8 .0 + 0.1 - 3 .6 - 8 .8 - 1.9 - 2 .9 + 0 .6 + 2.1 - 0 .4 - 1.9 + 2 3.5 - 2 4.5 - 13.2 + 178.5 + 83.4 + 31.6 - 89.1 + 7 7 5 .2 + 8 6.6 + 2 3 9 .7 - 3 8.2 — 4 9.6 - 5 .4 * Area not restricted to the corporate limits of cities given here. June, 1930— percentage change W holesale trade Philadelphia Federal Reserve District D ry goods............... Electrical supplies. Groceries................. H ardware............... Jewelry................... Paper....................... Net sales: 1930 compared with 1929 June Year to June 30 -2 1 .9 + 2 .0 -1 7 .8 - 9.1 — 1.0 - 9 .2 - 35.0 - 2 .5 -1 5 .6 -2 4 .6 -1 9 .2 - Stocks: June 30, 1930, com pared with June 30, 1929 23.7 - 1.6 - 7 .6 -2 4 .6 - 8 .9 - 7 .3 - 10 .3 - 3 .5 - 1.7 -1 1 .3 + 1.6 M ay 31, 1930 + + + + + 1.4 9.4 0 .5 2 .8 7.1 4 .6 Collec tions during June: 1930 compared with 1929 + 3 .4 - 5 .2 -1 0 .9 -1 4 .6 - 8 .8 - 5 .6 -2 3 .6 -1 7 .6 June, 1930— percentage change Retail trade Philadelphia Federal Reserve District Net sales: 1930 compared with 1929 June Stocks: June 30, 1930, compared with Rate of turnover: year to June 30 Year to June 30, M ay 31, June 30 1930 1929 1930 1929 A ll reporting stores................ - 1 2 . 0 -5 .1 -5 .8 - 4 .5 1.87 1.87 Department stores................. - 1 2 . 2 in Philadelphia................... - 1 1 . 7 outside Philadelphia.......... - 1 3 . 2 -1 0 .3 -1 3 .1 outside Philadelphia.......... - 7 .8 W om en’s ................................... - 8 .6 in Philadelphia................... - 8 .2 outside Philadelphia.......... - 1 1 . 6 Shoe stores............................... - 1 4 . 9 Credit stores............................ - 2 2 . 0 -5 .5 -5 .0 -6 .7 -5 .1 -6 .0 -4 .3 -1 .2 -0 .8 -3 .9 -5 .3 -8 .4 -6 .9 -6 .6 -7 .5 - 3 .7 2 .9 5 .2 1.85 1.83 2 .0 5 2.02 1.46 1.47 + 1.4 + 5 .3 + 4 .7 + 7 .8 + 0 .8 -9 .7 - 5 .6 -1 5 .7 -1 6 .9 -1 0 .3 - 6.1 - 5.1 1.12 2.99 3.22 1.96 1.39 1.16 1.17 3.13 3 .38 2.04 1.40 1.19 Source: Provident Title Company o f Philadelphia Real Estate Board F . W . D odge Corporation Source: American Railway Association Page Seven Synopsis o f Industrial and Trade Conditions in the Philadelphia Federal Reserve District D em an d O p era tion s S tock s M a n u fa ctu rin g Iron an d Steel Blast furnaces ...................... Steel works and rolling mills ....................................... Foundries and machine shops .................................... Electrical apparatus .......... Locomotives and c ars . . . . Shipbuilding ........................... Fair to p o o r D eclined m o re than se a so n a lly Q uiet D ecline con tin u ed in June U nfilled ord e rs fo r iron ca stin g s in crea sed in June w h ile a d e crease o cc u rre d fo r steel c a s t in g s O u tp u t o f iro n an d steel ca s tin g s d eclin ed in June Q uiet S om e d eclin e in the m on th F a irly a ctiv e , in crea sed D eclin ed s e a so n a lly D eclined Sm aller th a n a m on th a g o Increased T ex tiles Silk manufactures .............. ........................ W ool dealers F air to low er p o o r, d eclin ed , p rice s D eclin ed furth er Sm aller th a n a m on th ago M od era te M od era te, m on th som e M od era te, ago sm a ller P o o r, som e d eclin e an d W ool manufactures ............ F air t o p o o r , p rice s u n ch a n g e d to low er. S om e in crea se in m ill tak in gs o f w o o l fibers Cotton manufactures .... P o o r, d eclined , p rice s low er .................................... P o o r, declined, p rice s low er S lig h t in crea se in the m on th , y a rn s a b o v e a y e a r a g o , g o o d s s lig h t d eclin e D eclined , w h ile a c tiv e c o t t o n s p in dle h o u rs in cre a se d in June S light in crease in June P o o r, d eclin ed in the m on th and y ea r, p rice s u n ch a n g ed t o low er C ontin ued t o d eclin e s h a rp ly, d e cid e d ly low er than a y e a r a g o R ath er h e a v y b u t sm aller th a n a m o n th an d y e a r a g o S low , d eclined , p rice s t o low er u n ch a n g ed D eclin ed s h a rp ly in the m o n th and w ell b e lo w a y e a r a g o M od era te to lig h t, a year ago ........................ Q uiet, d eclined , p rice s low er. H ide m arket dull Slight in cre a se in June b u t b e lo w a year ago S lig h tly la rg e r th a n la st m on th k id ............................. G ood , in creased sea son a lly , p rices firm In creased in June Sm all C e m e n t....................................... Fair, som e in crea se in the m onth, p rice s stea d y S om e d e clin e in the m on th , c o n tra ry to usu a l season a l in crease Brick F air, p rices u n ch a n g ed to low er D eclined, lo w e r than a y e a r a g o H e a v y t o m o d e ra te , som e a c c u m u la tio n in the m on th F a irly h e a v y , la rg e r th a n a y e a r ago P o o r, little ch a n g e in th e m on th b u t m uch sm a ller th a n a y e a r a g o , p rices som ew h a t low er Fair to p o o r , d eclin ed , p rice s u n ch an ged to low er Increase in June b u t low er than in p a st y e a rs Hosiery Floor coverings ................... in cre a se than in year a the ye a r F u ll-fa sh io n e d ra th er h e a v y ; se a m less m o d e ra te t o ligh t L eather p ro d u cts Shoes ......................................... Leather— sole sm aller than B uilding m aterials ......................................... Paints and varnishes.......... Pottery .................................... Slate ............................................ F air t o p o o r, d eclin ed , som e p rice d eclines Fair, p rice s low er D eclin ed s e a so n a lly in the m on th , low er th a n la st y e a r b u t c o m p a res fa v o r a b ly w ith o th e r re cen t y e a rs S lig h tly low er H e a v y to m o d e ra te , som e in crease in the m o n th b u t sm a ller than la st y e a r M od era te to ligh t, sm aller th a n a year ago M od erate L ittle ch a n g e in the m on th , but b e lo w a y e a r a g o H e a vy t o m o d e ra te , a y e a r a go la rg e r than M iscellan eous Paper ......................................... F air t o p o o r , som e declin e, p rice s u n ch a n g ed C on tin u ed to d eclin e in the m on th , a c t iv ity low est sin ce J u ly, 1924 H e a v y t o m o d e ra te , som e in crease d u rin g the m on th Tobacco— cigars F air t o g o o d , p rice s firm S om e se a so n a l m onth M od era te F air to p o o r , som e d eclin e in the m on th an d y ea r, p rice s ste a d y In creased se a so n a lly Quiet, d eclined , p rice s low er D eclin ed , un filled sm aller B uilding p erm its in crea sed sh a rp ly in June, b ut w ere sm aller than a y ea r a g o S harp in cre a se in va lu e o f c o n tr a c ts a w a rd ed , la rg e ly due to a w a rd s fo r in d u strial b u ild in gs, p u b lic w o rk s and u tilities in June Anthracite ............................... F air to p o o r fo r d o m e stic, fa ir to g o o d fo r ste a m ; p rice s high er season a lly L ittle ch an ge in the m on th , b u t m u ch h igh er th a n a y e a r a g o Bituminous P o o r, d eclined , p rice s low er D eclined, slig h tly year ago ................. l e a f ........................ Clothing .................................... Building in cre a se o rd e rs in the to ligh t M od era te b u t la rge r th a n a ye a r ago slig h tly Sm aller C oa l M in ing ............................. h igh er than a T rad e W holesale and jobbing. . . . Page Eight Fair to p o o r, d eclin ed , p rices low er F air t o p o o r , d eclin ed som ew hat m ore th a n sea son a lly D eclin ed in June and sm a ller than a year ago S om e in cre a se in June b u t sm aller th a n a y e a r a g o
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