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THE BUSINESS REVI THIRD FEDERAL PHILADELPHIA RESERVE DISTRI AUGUST i, i93i By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Financial Conditions in the United States Industrial production showed more than the usual seasonal decline in June, and factory employment and payrolls decreased. Wholesale prices, which had continued to decline until the end of May, advanced in June, but for most commodities declined again in the first half of July. Production. A decrease in industrial output from May to June was re flected in a decline in the Board’s in dex of industrial production, which is adjusted for seasonal variations, to 86 per cent of the 1923-1925 output, as compared with 89 per cent in May. Taking the second quarter of the year as a whole, production has averaged about 4 per cent above its low level in the last three months of 1930. The reduction of activity in June was most marked in the iron and steel industry with steel plants operating at 38 per cent of capacity. Automobile output declined further and there was some recession in production of lum ber, meat products and flour. Petro leum output, however, was not re INDUSTRIAL PRODUCTION duced. Activity of textile mills and shoe factories continued in relatively large volume; in the woolen industry, activity was sustained at the unusually high level of May, and the decline in the consumption of cotton was not in excess of the usual seasonal amount. During the first half of July, there were further reductions, partly sea sonal in nature, in output of steel, automobiles and lumber. Factory employment was further re duced by nearly 3 per cent and pay rolls declined by 6 per cent between the middle of May and the middle of June. The largest decreases were in the steel, machinery and women’s clothing industries, while reductions at automobile plants and cotton mills were partly seasonal in character and employment at woolen and hosiery mills increased. Building contracts awarded in June were somewhat larger than in May, but declined again in the first half of July. Since the early spring, awards have not increased as much as is usual for the season. In residential build At department stores daily average sales were seasonally smaller in June than in May. Freight car loadings were also reduced, reflect ing principally a further reduction in loadings of miscellaneous commodities. Distribution. FACTORY EMPLOYMENT AND PAYROLLS Indexes of factory employment and payrolls, without adjustment for seasonal variation. (1923-1925 average =100.) RESERVE BANK CREDIT AND FACTORS IN CHANGES _ Index number of industrial production, ad justed for seasonal variation. (1923-1925 average =100.) ing there has been relatively little change for about a year and a half, except for seasonal fluctuations, and the decline in construction has been chiefly in other types of building, prin cipally public works and utilities. Money in Circulation Monthly averages of daily figures. Latest figures are averages of first 19 days in July. Monthly averages of weekly figures for report ing member banks in leading cities. Latest figures are averages of first three weeks in July. Page One During June wholesale prices of many commodities advanced con siderably after having reached low levels late in May and early in June. Prices of livestock and meats in creased; and after June 21 there were rapid advances in- prices of raw ma terials important in world markets, es pecially cotton, hides, sugar, silk, cop per, silver and rubber. Subsequently, however, most of these prices receded somewhat, although in mid-July they were, in general, above their lowest levels. The price of wheat declined during June and the first half of July as the domestic price became adjusted to world levels. Prices. At reporting member banks in leading cities, loans on se curities continued to decline between the middle of June and the middle of July, while all other loans increased by $140,000,000. This increase was concentrated at New York City banks and was largely in the form of ac ceptances purchased in the open mar ket. Member banks’ investments con tinued at about the same level as in May and early June. Notwithstanding a further addition of $77,000,000 to the country’s stock of monetary gold between weeks end ing June 20 and July 18, there was no decrease in Federal reserve bank Bank credit. credit outstanding. During the period the reserve banks’ portfolio of United States securities was increased by $75, 000,000, while their combined hold ings of acceptances and of discounts for member banks decreased by ap proximately the same amount. The gold inflow provided member banks with funds to meet an added demand for currency, as well as to increase their balances with the reserve banks. There was also a considerable growth in foreign bank deposits with the re serve banks. Money rates continued at low levels. Business and Financial Conditions in the Philadelphia Federal Reserve District Industrial activity continues at a seasonally low level and is substan tially below that of other years. Out put of manufactures declined more than usual in June and showed little change early in July. Building opera tions have expanded somewhat but awards for new construction have de clined, although in July there was a large gain in contracts for building streets and highways. Coal mining has fallen off lately. Retail sales measured up to expectations in June but have declined in July as is cus tomary. Business at wholesale is com paratively quiet and sales have de creased since last month. Member banks report declines in loans to customers and in holdings of government securities during the past five weeks. Borrowings from the re serve bank have continued light, and the reserve ratio has averaged above 87 per cent. Money rates have fluc tuated little. The market for manufactures reflects the usual sea sonal quiet, sales having declined fur ther since the middle of last month. Prices since early June have shown strength, fluctuating less than in many months past. Stocks of finished prod ucts have declined further and are noticeably smaller than a year ago. Unfilled orders, while decreasing somewhat in the aggregate, have been on the increase in wool fibers and manufactures, leather products, paper, cement and lumber; they continued, however, smaller than a year ago. Factory employment in this district as in the country was 3 per cent and Manufacturing. Page Two payrolls 6 per cent smaller in June than in May. In comparison with a year ago, employment was 18 per cent and payrolls 30 per cent smaller; they were also less by 25 and 41 per cent respectively than in June 1929. Part time work increased, and the demand for workers by employers declined sharply. For the second month the output of manufactures decreased more than usual, so that in June our index was the lowest in the past nine years. The most pronounced curtailment oc curred in leather products, transpor tation equipment, radio and musical instruments, and metal products, while the smallest reductions were noted in foods, chemical and allied products, to bacco, and paper and printing. Productive activity was 21 per cent lower in the first six months of this year than last and was 11 per cent lower than in the last six months of 1930. Metals, transportation equip ment, building materials, radio and musical instruments showed excep tionally large recessions from a year ago, while the decline in the activity of textiles, tobacco, and chemical and allied products industries showed least reductions. The decline in textile activity dur ing June was due principally to the lower rate of operation of silk mills. Takings of wool fibers also dropped more than usual, although in July there has been improvement in the de mand for wool and its manufactures. Business in cotton goods and carpets and rugs more than held its ground considering the time of the year. In the metal group, the output of steel works and rolling mills showed a further unusual decline, while that of pig iron and iron castings increased somewhat after allowance is made for seasonal changes. Electrical appa ratus continued downward for the second month when seasonal changes are estimated. Rather sharp reduc tions were reported in operating schedules of plants making automobile bodies and parts, motor vehicles, and in shipbuilding. The hide and leather market is fairly strong. The demand for sole and kid leather has increased lately. Prices of hides and leather have ad vanced. Stocks held by tanneries have declined in the month but were larger than a year ago. The output of local tanneries and shoe factories during June declined, the drop being excep tionally pronounced in the production of shoes. Some seasonal improvement oc curred in the output of ice cream, sugar, and in the slaughtering of ani mals. Production of cigars also in creased more than usual, though it re mained smaller than a year ago. Both production and shipments of cement were substantially less in the first half of this year than last; stocks at the end of June declined slightly as compared with a year ago. Such other building materials as lumber, brick, paints and varnishes, and hardware generally fell off further. The output of petroleum refineries showed sea sonal gains from May, and, in the case of gasoline and asphalt, the level was higher than a year ago. Output of electric power decreased more than customary but was a trifle RON AND STEEL-UNFILLED ORDERS RAW SILK PERCENT DO^ARS BALES POUND STOCKS^ BOOKINGS OF FABRICATED , STRUCTURAL STEEL (wardiouse) 80 60 6.00 I «, \ 7r J,u « 40 f 1 1 7 5.00 n i?/v via. |i\ / i-.sf f AM v9 V VDE:liveries 400 3.00 to mill: 2.00 20 UNFILLED ORDERS — US. STEEL CORP, 928 1929 1927 Sources: Department of Commerce and Iron Age larger than in June 1930. The con sumption of electrical energy by in dustries, on the other hand, declined more than usual after a rather sharp increase in May. Details follow: Electric power Philadelphia Federal Reserve District 11 Systems June, 1931, per cent change from June, 1930 May, 1931 Rated generator capacity.......... + 1.7 + 0.1 Generated output. . Hydro-electric. . . Steam.................... Purchased.............. + 0.1 + 6.1 -11.5 +35.4 -35.0 +25.1 + 1.1 Sales of electricity... Lighting.................... Municipal........ Residential and commer cial..................... Power...................... Municipal............... Street cars and railroads. . Industries............... All other sales. . - 4.7 + 6.6 + 3.6 + + - 7.0 7.0 4.7 2.5 8.0* 6.5 +12.7 - 6.0 - 5.0* -17.8 Muuuug uays average—otner items are com puted on calendar days. Building and real estate. Construetion and contracting activities in creased further during June; both em ployment and wage payments showed a larger gain between May and June of this year than in the corresponding period of 1930. Present rates of operation, however, remain substan tially lower than in other years. The most pronounced improvement oc curred in the building of streets and highways; building operations in creased moderately, while general con tracting work declined. In the Phila delphia area the number of workers employed and the total hours worked were noticeably larger than in May. 1928 1929 1930 1931 Sourcea: Silk Association of America and Fairchild's News Service June, 1931 BUSINESS INDICATORS Philadelphia Federal Reserve District Amount Percentage change since June, 1930 Retail trade*—estimated net sales (161) stores. Department (67)..................................................... Men's apparel (23)............................................... . Women’s apparel (16)........... shoe (37)............................ Credit (18)............................................................ Wholesale trade*—net sales (102 firms). Boots and shoes (5)................................... Drugs (10)......................................... Dry goods (12)........................................... Electrical supplies (8)............................... Groceries (30)............................................. Hardware (20)............................................ Jewelry (10) ...............................| Paper (7).............................................. Productive activity*— Employment—843 plants in Penna......................... Wage payments (weekly average)......................... ...................... Shoe production!—77 factories........................... ..................prs " Hosiery production!—140 mills.......................... doz prs Underwear production!—52 mills...................... doz pcs Wool consumption!—58 mills............................................... lbs Active cotton spindle hours.......................................................................... Pig iron production............................................ tons Iron casting production—33 foundries. .'.........tons Steel casting production—9 foundries ............... tons Anthracite.................................................................... tons Bituminous coal—Penna.................. tons Petroleum receipts at Port of Philadelphia .. ...................... bbls Cement.......................................................................... bbls ' Electric power output—10 systems............................................. KWH ’ . *784,500 $671,800 $25,600 $60,100 $12,300 $14,700 - 2.0 - 1.5 +16.9 - 7.1 - 1.6 -24.6 - 3.3 - 2.6 - 6.0 - 7.1 -15.3 + 1.6 $238,547 $2,879 $52,400 *10,512 $12,150 $91,619 $48,411 $7,759 $12,817 - 2.6 - 8.2 - 2.5 - 4.8 -20.2 + 4.3 - 6.6 + 8.2 -13.8 -13.6 -13.9 - 6.4 - 5.0 -12.7 -14.7 -14.2 -28.1 -16.0 263,523 $5,599,194 41,640 56,670 14,329 220,124 518,246 3,819 114 85 175,100 300,100 33,300 96,667 16,882,200 - 3.4 - 6.8 -17.1 - 3.7 - 2.3 - 5.7 -10.5 + 0.3 - 3.0 - 6.7 -12.5 - 3.6 - 9.3 - 1.8 - 2.4 -18.6 -32.0 -15.8 -44.3 -35.3 -56.0 -14.0 -23.0 -49.4 -14.6 + 0.1 + 2.9 - 1.0 + 6.3 + 1.6 -19.2 -20.4 +86.3 -19.7 + 5.4 -31.0 +17.2 -681 -14.9 -21.1 -37.9 -15.3 -11.7 +23.9 +16.6 -73.6 -74.1 - 9.9 -35.7 +23.9 - 2.5 - 1.8 -14.2 -22.3 -13.5 -233 Financial and credit— Debits (check payments)*—18 cities........................ $91,887,700 Loans and investments—middle of July—88 member banks !......... Bills discounted held by F. R. B. of Phila. (daily average).................. *1,722,000,000 *19,363,000 Bankers’ acceptances outstanding—end of month........... *23,784,000 Commercial paper sales*—4 dealers...................................' *116,875 Commercial failures—number................................... ’ 86 Commercial failures—liabilities.............’ | ’ ’ ’ ' *2,337,374 Building and real estate— Building permits*—16 cities........................................... *134,971 Building contracts awarded*............................ * ............................. $694,346 Number of real estate deeds recorded* (Philadelphia county) 173 Value of mortgages recorded* (Philadelphia county)........ *325,372 Sheriff sales—writs issued for July—(Philadelphia county). . . 1,799 Miscellaneous—* Freight car loadings (Allegheny district)............... c 24,639 Sales of life insurance (Penna., N. J., and Del.)... . $4,308,000 Automobile sales registrations of new passenger cars.............. ui 630 . * Daily average of monthly figures. ! Bureau of the Census preliminary figures. Page Three OUTPUT PHILADELPHIA OF HOSIERY FEDERAL RESERVE DISTRICT_ _ _ _ CONTRACTS AWARDED-CUMULATIVE PH I LA. FED. RES. TOTAL PERCENT DIST. RESIDENTIAL STOCK 1930 PRODUCTION'-^ J FMAMJ JASOND J FMAMJ JASOND 1927 Source: F. W. Dodge Corporation Source: Bureau of the Census The proposed expenditure under permits issued in sixteen cities of this district was materially smaller than in May; first half-year comparisons show a decline of about 54 per cent from the corresponding period of 1930. The value of contracts awarded for new construction also declined in June and in the first six months of this year. Awards in the first three weeks of July, however, rose sharply and were considerably larger than a year ago, owing to increased contracts for pub lic works and utilities. The number of deeds recorded in Philadelphia declined last month, while the value of mortgages in creased; first half-year comparisons show reductions amounting to 11 and 25 per cent respectively from the cor responding period of a year ago. The number of writs issued for sheriff sales, which has been exceedingly large since the first of the year, in creased sharply in June and was the highest for any month on record, dat ing back to 1919. The real estate situation remains quiet. Renting demand for small houses and apartments has been fairly well maintained; sales of properties, however, continue at a relatively slow Contracts awarded in Middle Atlantic States Per cent Six months change from 1931 (000’s omitted) 1930 1929 Commercial buildings.... SI5,855 5,498 Factory buildings............... Public works and utilities. 57,071 62,402 Residential buildings........ Source: F. W. Dodge Corporation. Page Four -68.5 -74.7 -67.5 —85.7 — 56.1 -15.8 —57.8 rate, being confined chiefly to the less expensive dwellings. Prospective buy ers are still experiencing difficulty in financing their purchases. Agriculture. Weather conditions gen erally favorable for crop growth pre vailed throughout the greater part of this district during the past month. In certain localities, however, heavy storms caused considerable damage to ripening grain. The condition of crops continues excellent, having im proved further since last month but the market outlook remains adverse, owing to the continued decline in farm prices. Production estimates as of July 1 indicate that the yield of corn, tame hay, tobacco and white potatoes will be larger than in 1930 while the wheat and oats crops are expected to be somewhat smaller. Orchard fruits continue to improve in quality and their condition compares favorably with that of a year earlier. The condition of dairy cattle, calves and heifers is somewhat higher than the July average of the past ten years while that of horses and hogs is lower. The available supply of farm labor remains in excess of the demand and wage rates are said to have undergone a downward revision during the past year. tons daily, dropped sharply and was the smallest since March 1930. Dur ing the first fortnight of July, opera tions at the mines were further re duced and remained substantially smaller than in the corresponding periods of recent years. Shipments of hard coal declined noticeably last month and were the smallest since February 1930. Demand for Pennsylvania bitumi nous coal increased slightly during June and reports of price concessions were less numerous than a month ear lier. Output of collieries declined and showed a substantial reduction in com parison with the same month of recent years. In the first half of July the daily output of mines remained at the low levels of the preceding month. Shipments for the country as a whole averaged slightly lower than in May; with the exception of last April they were the smallest of any month in the past three years. Retail sales were 2 per cent smaller in June than May, this decline being just about what is nor mally expected at this time; last year in the same period the decrease amounted to 12 per cent. Sales of men’s apparel stores increased notice ably while those of department, women’s apparel, shoe and credit stores declined. Preliminary comments show Coal. Summer dullness was in evi that in the first half of July retail dence in the anthracite market during business was only fair at best, reports June. Demand from householders de showing smaller sales being three clined noticeably, following the usual times as many as those indicating advance in retail prices. Colliery out gains. Price recessions have con put, which averaged about 175,000 tinued. Distribution. CHECK PAYMENTS COST PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT OF LIVING PERCENT PHILADELPHIA PHILADELPHIA 17 CITIES UNITED 6 (outside 1927 1928 STATES CITIES Philadelphia) 1929 1930 1931 1932 1914 ’16 *18 '20 '22 ’24 '26 ’28 ’30 ’32 ’34 Source: Bureau of Labor Statistics Compared with a year ago, dollar sales were 3 per cent smaller, credit stores alone showing a gain of 2 per cent. The sharpest decreases occurred in the sales of shoe and apparel stores. Larger than a year ago sales were reported in Lancaster, Reading, Scran ton and Wilkes-Barre, while the re maining city areas registered de creases. Sales in the first half of this year in this district, as in the country, were 9 per cent smaller than last year. Local declines vary from 6 per cent in credit stores to 18 per cent in shoe stores. A large part of this decline was due to lower prices. According to the Fairchild price index, which includes piece goods, domestics, men’s, women’s and infants’ wear, certain house furnishings, musical instruments and luggage, retail prices on July 1 were 2 per cent lower than a month before and 9 per cent lower than at the end of last year. Stocks at retail stores declined sea sonally and were 14 per cent smaller than at the end of June 1930, declines in the year varying from 13 per cent in department, credit and shoe stores to 20 per cent in women’s apparel stores. The rate of turnover was measurably greater in the first six months of this year than last. Wholesale business was seasonally smaller in June than in May. Less than customary declines occurred in the sale of shoes and drugs, while greater than the usual decreases were noted in the sale of dry goods, hardware and paper. Business in groceries and jewelry showed more than seasonal gains. Sales of electrical supplies de creased sharply instead of increasing as was to be ex pected. Early re turns for the first part of July show further decreases except in gro ceries. Sales in the first six months of this year were appreciably smaller in all lines than at the same time last year, decreases varying from 5 per cent in drugs Percentage change Retail trade Philadelphia Federal Reserve District June, 1931 June Six months Rate of turnover: six months Stocks: June 30, 1931, compared with June 30, May 31, 1930 1931 1930 1931 All reporting stores................. - 3.3 - 8.7 -14.0 - 4.8 1.87 1.98 Department....................... in Philadelphia.................... outside Philadelphia.......... Men’s apparel.......................... in Philadelphia.................... outside Philadelphia.......... Women’s apparel.................... in Philadelphia.................... outside Philadelphia.......... Shoe............................................ Credit......................................... - 2.6 - 2.7 - 2.4 - 6.0 - 7.6 - 4.9 - 7.1 - 6.9 - 8.9 -15.3 + 1.6 - 8.5 - 9.5 - 5.9 -13.0 -16.9 -10.1 - 8.3 - 7.6 -14.6 -17.8 - 5.6 -13.5 -12.5 -15.6 - 4.0 1.86 1.97 - 3.5 2.05 2.12 - 5.0 1.47 1.64 -14.0 -20.4 -21.1 -17.3 -13.7 -13.0 - 5.3 -18.3 -20.0 -10.9 - 4.7 - 2.2 WHOLESALE TRADE Philadelphia Federal Reserve District, June, 1931 (Percentage change is indicated by + and — signs) Net Sales— Six months 1931 compared with six months 1930.. . Change from: May 1931 .. June 1930 .. Actual index* June 1931........................ May 1931........................ June 1930 ........................ Seasonally adjusted index* June 1931........................ May 1931........................ June 1930 ........................ Stocks—June 30, 1931 Change from: May 31, 1931.................. June 30, 1930.................. Accounts Receivable Outstanding—June 30, 1931 Change from: May 31, 1931.................. June 30, 1930.................. Collections during June 1931 Change from: May 1931 .. June 1930 .. * 1923-1925= 100 Net sales: 1931, compared with 1930 1.05 3.20 3.42 1.99 1.40 1.18 1.10 3.60 3.87 2.09 1.37 1.35 Boots and shoes Drugs Dry goods Elec trical supplies Grocer ies Hard ware Jewelry -25.1 - 8.2 -13.9 - 4.5 - 2.5 - 6.4 -15.1 - 4.8 - 5.0 -13.6 -20.2 -12.7 -14.1 + 4.3 -14.7 -18.8 - 6.6 -14.2 -30.6 + 8.2 -28.1 49.0 53.4 56.9 98.0 100.5 104.7 47.6 50.0t 50.1 65.7t 82.3 86.8 83.2 101.8 69.3 74.2 80.8 47.5 43 .9£ 66.1 66.6 77.3 79.3 57.0 53.9 66.2 102.1 100.5 109.1 51.7 53.2J 54.5 80. It 108.3 85.1 84.0 99.8 66.6 67.5 77.7 56.5 52.3J 78.7 69.4 78.1 82.6 Paper -18.8 -13.8 -16.0 - 0.5 - 4.7 + 0.1 -21.6 +11.2 +12.4 - 4.3 -10.0 - 1.5 -11.6 - 1.0 -21.8 - 3.7 -16.1 - 5.9 -19.8 - 1.8 - 3.4 - 1.3 - 9.4 -13.3 -22.1 + 1.2 - 9.6 - 3.2 -15.3 - 0.9 -19.1 - 3.9 - 5.2 +20.7 -17.5 - 5.5 - 7.9 + 2.8 -15.4 -12.6 + 0.1 + 3.0 -17.1 - 0.4 -19.2 - 9.9 -22.6 + 0.1 -21.4 t Preliminary % Revised Page Five to 31 per cent in jewelry. Dollar sales in June were 14 per cent less than in June 1930, the sharpest drops occurring in jewelry, paper, hard ware, groceries and shoes. These com parisons with last year reflect the in fluence of price changes which show, for example, a decline of 20 per cent in foods and textile products, 8 per cent in shoes and drugs, and 6 per cent in paper and pulp. Inventories at wholesale establish ments were smaller in June than in May in all lines except dry goods and electrical supplies; they were also noticeably smaller than a year before except for larger stocks of electrical supplies. Accounts receivable were uniformly less than in June 1930. This was also true of collections save for a slight increase in electrical supplies. Shipments of commodities by rail road freight in this section declined more than seasonally in June and showed further drop in the first, though not in the second, week of July. Total loadings were 20 per cent less in the first six months of this year than last. Sales of new passenger automobiles were smaller than is usual for June, and in the first six months of this year they fell off 23 per cent from the like period last year. The market for used cars has continued comparatively strong. Wholesale prices of automo biles on the average were 7 per cent lower than a year ago. Check payments increased season ally but remained 20 per cent less than a year ago, reflecting partly lower prices. The chart on page five shows regional fluctuations in payments by check. The cost of living, as computed prin cipally from the family budget re quirements of industrial workers, de clined 10 per cent in the country and Cost of living Food........................... Clothing..................... Housing..................... ! uel and light.......... Furniture and furnishings............. Miscellaneous........... Total...................... Relative impor tance of items % June, 1931 Per cent change from a year ago United States Phila delphia 38.2 16.6 13.4 5.3 -20.0 - 8.1 - 5.1 - 4.3 -15.3 - 7.1 - 5.3 - 3.2 5.1 21.4 - 9.6 - 0.9 -10.9 - 1.3 100.0 - 9.8 Soured: Bureau of Labor Statistics. Page Six - 8.1 BILLS LOANS DISCOUNTED AND INVESTMENTS ALL PHILADELPHIA Mi llions BANKS IN 20 OTHER BANKS IN OTHE MEMBER Philadelphia Federal BANKS Reserve District BANKS LARGE CITIES C0MMUN1T ES Preliminary 8 per cent in Philadelphia as compared with a year ago. Changes by items are shown in the accompanying table. Reflecting the business situation, member banks re port a decline in loans to customers during the past month. Money rates continue to show little change locally. During the past five weeks this bank’s participation in the Federal re serve system’s holdings of purchased bills and United States securities has increased 10 millions, but borrowings of member banks show a small de cline. On July 22 the total of bills discounted held was less than 17 mil lions, of which 13 millions represented advances to banks outside of Philadel phia. About 7 millions of funds were withdrawn from the local market as a result of United States Treasury op erations. This was balanced for the most part by a small gain in the set tlement of commercial and financial transactions with other districts and by the return of a few millions of cur rency from circulation. Records of Financial conditions. All member banks Third Federal Reserve District (000,000’s omitted) Loans to other Loans to open-market. Investments.................. Total loans and investments.... * Preliminary. June 30, Mar. 25, Oct. 4, 1931* 1931 1929 $ 48 1,563 56 1,120 $2,787 $ 46 1,597 61 1,109 $2,813 $ 51 1,775 64 865 $2,755 payments and receipts of currency in dicate that the amount now outstand ing in this district substantially ex ceeds that of a year ago. Member banks in Philadelphia, Camden, Scranton and Wilmington report a reduction of 14 millions in loans to customers during the five weeks ended July 22, loans secured by stocks and bonds and other loans both sharing in the decline; United States Commercial paper sales (Four dealers) Sales to— Total sales City banks * Country banks 1931—Mar.. $12,295,000 $2,665,000 $14,960,000 2,820,000 2,112,500 4.932.500 Apr.. 455,000 3.327.500 May. 2,872,500 June. 1,730,000 1,075,000 2,805,000 1930—June. 1929—June. 5,000,000 3,437,500 827,500 2,780,000 Federal Reserve Bank of Philadelphia (Dollar figures in millions) 8.437.500 3.607.500 Changes in— July 22, 1931 Bills discounted for member banks in Philadelphia......... *3.2 Other communities 13.4 Total bills discounted. $16.6 Bills bought................... 3.2 United States securities.......................... 54.5 Other securities............ 0.6 Total bills and securities................... $74.9 Member banks’ reserve deposits. . . . 145.3 Cash reserves................ 257.3 Reserve ratio................ 86.3% Five weeks One year +*1.0 - 3.2 +11.8 - 6.2 —$2.2 + 3.1 —$4.4 + 2.3 + 7.2 0 + 4.3 - 0.4 +S8.1 +11.8 + 0.6 + 7.3 - 9.9 +36.7 - 3.7% + 2.4% security holdings also decreased 10 millions, but loans to the open-market increased somewhat. In total, loans and investments fell from 1,380 to 1,360 millions; this was accompanied by declines of 26 millions in net de mand and 10 millions in government deposits and by a rise of 14 millions in time deposits. Time deposits are close to the highest point on record reached late in May, but net demand deposits are substantially lower than they were at the peak in April. A preliminary tabulation from the call reports of all member banks in the Philadelphia Federal Reserve Dis trict reveals that loans to banks and loans to the open-market have changed little during the second quarter of 1931. Although investments expanded from 1,109 to 1,120 millions, this gain failed by a large margin to equal the increase of 143 millions in the first quarter of the year. Loans to cus tomers other than banks continued to decline, falling 34 millions in the last quarter, 153 millions in the past year, and 212 millions in comparison with a high point in the call reports reached on October 4, 1929; the decrease since June 1930 reflects a 49 million decline in loans on securities to brokers out side of New York, 39 millions in similarly secured loans to other cus tomers, and 65 millions in other loans and dis counts. Although sales of commercial paper to country banks increased somewhat in June, purchases by city banks de clined and the total dropped from $3,327,500 in May to $2, 805,000 in June, the lowest since the end of 1929. Sales of four dealers during the first six months of the year amounted to 37 millions (of which 26 millions was in the first quarter), as com pared with 63 millions a year ago and 18 mil lions two years ago. Employment June, 1931 Employment and wages in Pennsylvania Payrolls June, 1931 Per cent change since June index* index* June, 1930 All manufacturing industries Per cent change since May, 1931 June, 1930 May, 1931 (51).......................................... 74.8 -18.6 - 3.4 60.6 -32.0 - 6.8 Metal products.......................... Blast furnaces........................ Steel wks. & rolling mills... Iron and steel forgings........ Structural iron work............ Steam & hot wtr. htg. app Stoves and furnaces............. Foundries................................ Machinery and parts........... Electrical apparatus............. Engines and pumps............. Hardware and tools............. Brass and bronze products. 69.6 44.9 62.4 73.7 86.4 90.1 67.4 68.8 79.4 96.4 48.1 70.5 64.4 -23.2 -17.6 -24.3 -18.7 -32.2 -10.6 -20.0 -28.1 -19.9 -15.4 -47.0 -21.1 -36.6 — + + - 53.0 33.7 45.9 00.2 73.9 61.4 40.0 47.6 59.2 85.0 35.9 52.7 50.2 -40.4 -38.2 -43.1 -22.8 -40.7 -35.7 -46.2 -43.2 -33.0 -33.0 -60.3 -35.4 -49.1 - 9.2 - 9.2 -16.1 - 4.4 + 0.7 -13.0 - 1.2 - 1.7 - 3.4 + 3.4 - 1.1 -11.3 - 6.9 Transportation equipment . . . Automobiles............................ Auto, bodies and parts. . . . Locomotives and cars.......... Railroad repair shops.......... Shipbuilding........................... 48.4f 67.2 51.9 22.8 69.4 53.2 -34.1 -10.5 -31.7 -52.4 - 7.5 -42.4 - 3.8 + 6.4 -11.1 - 2.6 + 3.7 - 9.4 33.7| 33.5 31.2 16.2 64.2 72.8 -51.9 -38.6 -52.7 -66.1 -12.1 -50.7 -14.2 -28 6 -29 4 — 3 0 +10.7 -22.1 - 6.0 3.9 5.5 7.6 1.9 1.8 0.4 +7 2.4 3.9 3.9 4.8 1.8 3.6 City areas* Employ ment Allentown............. Altoona................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre .... Williamsport Wilmington........ York....................... Wage payments Building permits (value) -26.7 -10.6 -30.9 -50.2 - 7.7 -16.0 -17.0 -28.0 -15.2 -14.5 -18.7 -18.1 -11.8 -36.2 -27.3 -38.7 -52.8 -20.9 -24.3 -23.5 -27.6 -28.7 -20.3 -29.2 -24.3 -21.9 -59.8 -73.5 -67.6 +29.8 -49.0 -76.8 -48.3 -12.4 -87.3 +11.6 -82.1 -45.7 -11.8 Debits -16.8 -29.3 -14.1 -27.3 -21.3 -16.5 -23.1 -15.1 + 16.0 -13.7 -21.7 -24.9 -17.8 — 4 2 — 3 8 — 14 6 - 3.4 + 43 + 47 — 11 1 + 06 - 3.0 June, 1931, from May, 1931 Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton............... Wilkes-Barre........ Williamsport........ Wilmington.......... York....................... - 6.0 - 9.9 -18.0 -21.6 - 2.2 - 0.4 - 5.1 -15.1 - 0.1 - 4.9 + 1.6 - 1.7 + 1.4 - 4.1 -12.7 -18.3 22.7 - 7.4 - 2.6 - 8.6 - 9.7 - 2.3 + 1.3 -17.2 - 3.9 + 0.3 -20.5 -42.7 -41.4 -12.6 - 3.1 + 8.7 -94.2 -69.3 +22.1 +195.1 -14.7 -61.7 +333.6 + 3.8 + 0.7 + 4.8 - 7.8 + 2.2 + 8.8 + 0.2 - 6.0 + 8.8 + 4.0 + 1.5 +23.3 + 1.6 * Area not restricted to the corporate limits of cities given here. -12.9 + 0.2 + 2.7 -26.4 -11.2 - 0.5 -13.6 -11.0 - 5.5 + 0.7 + 12.6 +11.6 - 5.7 75.5 - 0.5 60.1 + 0.5 53.9 -16.6 75.3 - 4.7 72.9 + 1.2 54.6 - 3.8 56.7 + 0.7 100.1 + 7.0 74.8 78.3 - 3.7 -3.1 118.8 - 6.1 121.5 -14.0 + 9.9 + 3.3 -29.2 -24.0 +17.4 -20.8 -11.2 -21.1 - 0.3 + 9.3 + 8.1 Foods and tobacco.................. Bread & bakery products. Confectionery...................... Ice cream.............................. Meat packing...................... Cigars and tobacco............ 104.7 107.6 95.5 120.8 94.1 102.6 - 6.8 - 2.0 - 0.3 - 6.8 - 1.6 -10.7 + 0.4 97.1 - 0.6 101.7 - 2.2 91.2 + 11.3 115.6 80.9 - 0.4 + 0.6 89.3 -10.8 - 9.4 - 7.0 - 7.4 -12.4 -13.4 + 2.9 58.8 68.3 55.0 54.9 -16.7 -18.5 -12.3 -20.7 + 0.2 - 4.9 - 2.7 + 10.9 45.4 43.0 47.4 46.5 -29.1 -42.0 -21.0 -27.1 - 1.7 +12 >J Lumber products.................... Lumber and planing mills. F urniture............................... Wooden boxes...................... 55.6 32.8 61.8 67.7 -29.9 -59.2 -16.4 - 8.0 + + 0.5 2.4 1.4 7.0 47.5 30.2 51.4 59.7 -32.5 -56.9 -23.2 - 9.5 + 7.8 92.7 68.0 69.8 80.9 94.3 132.9 - 8.2 -11.5 -37.8 + 2.9 - 4.7 + 4.3 + + + i.i 87.7 3.0 63.4 3.9 47.4 9.9 78.7 0.9 90.2 3.2 134.0 -18.0 -18.8 -50.8 - 9.9 -13.5 - 5.5 — 1 6 - 4.5 -19.5 +11.5 - 8.8 + 5.2 Leather & rubber products Leather tanning.............. Shoes.................................. Leather products, other. Rubber tires and goods. 86.8 98.8 72.6 83.3 89.3 -10.6 - 6.7 -22.4 - 2.1 - 1.8 - 6.2 84.6 - 1.1 92.8 -18.6 58.4 + 2.5 93.9 + 1.4 108.7 -15.1 -11.5 -39.4 + 5.4 + 5.0 - 4.7 - 2.3 -20.5 + 4.8 + 4.1 Paper and printing............. Paper and wood pulp... Paper boxes and bags. . . Printing and publishing. Retail trade sales 84.4 65.0 57.9 80.6 82.8 65.3 76.7 104.7 87.2 84.3 124.4 139.5 Stone, clay & glass products. Brick, tile & pottery.......... Cement.................................. Glass....................................... Percentage change—June, 1931, from June. 1930 Textile products...................... Cotton goods........................ Woolens and worsteds. . .. Silk goods.............................. Textile dyeing & finishing. Carpets and rugs................ Hats........................................ Hosiery.................................. Knit goods, other............... Men’s clothing.................... Women’s clothing.............. Shirts and furnishings.... 92.1 80.8 79.1 98.0 - 6.7 - 5.1 -11.9 - 5.7 + - 1.3 0.4 0.4 1.8 90.0 71.1 80.6 98.0 -14.6 -16.3 -16.6 -12.6 - Anthracite.................................... 74.2 -17.1 - 5.2 56.5 -22.8 -12.5 Chemical products......... Chemicals and drugs. Coke........................ . . Explosives.................... Paints & varnishes. . . Petroleum refining. . . 3. 20. -12.0 -13.2 + 5.5 + 5.6 + 1.8 Bituminous coal......................... -12.9 4-12 8 + 7.3 5.2 3.5 1.3 5.8 — 8 2 Construction and contracting. 72.0 -34.7 + 9.6 54.9 -45.1 +12.0 Street railways........................... 77.5 - 8.3 - 0.3 80.5 -12.2 + 0.5 -12.1 + 5.3 -14.9 + 28 + 74 Retail trade............................... 90.0 - 4.8 - 0.1 Wholesale trade............... 90.0 - 1.6 + 0.3 + 4.1 * 1923-1925 average = 100. f Preliminary. Page Seven Synopsis of Industrial and Trade Conditions in the Philadelphia Federal Reserve District Demand Operations Stocks Manufacturing Iron and steel Slow Little change Slow Declined Slow Declined Steel works and rolling. . . Foundries and machine shops ........................................ Declined in June; output dropped to new low levels in first 6 months of 1931 Electrical apparatus ............. Slow Transportation equipment Declined, sales of locomotives in first half of this year decreased about two-thirds from last year Poor Little change Declined Quiet, little change Declined Textiles Smaller than a year ago Little change More active; prices higher Wool manufactures ............... Fair, some gain Declined but unfilled orders increased Little change Cotton manufactures Quiet, little change Some decline Declined, smaller than a year ago Quiet, little change Declined Increased Declined, unfilled orders smaller Increased Declined, smaller than a year ago Fair, little change Men’s clothing cut in Philadel Increased, but phia declined in June year ago Slow, declined; prices lower Declined .......... smaller than a Leather products Fairly active, higher increased; Declined, smaller than a year ago prices Declined, but unfilled orders increased Declined Declined, but unfilled orders increased Some decline Quiet, declined Declined Declined Quiet, some decline Declined Smaller Slow, little change Some decline Declined Slow, declined Declined Smaller than a year ago Quiet, little change Little change Declined, smaller than a year ago Quiet, some gain kid Little change Increased ............................ Fair, some gain Building materials Miscellaneous Quiet, some decline; prices lower Declined, but unfilled orders show some gain Quiet, little change Building Little change Increased Quiet, little change Declined Permits and awards declined in Increased, especially and highways June Larger Little change in streets Coal mining Quiet, declined Declined Slow, little change Declined Trade Seasonally fair Wholesale and jobbing Page Eight Declined, smaller than a year ago Quiet, declined Some decline
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