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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT AUGUST i, 1934 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Banking Conditions in the United States * Industrial production, which had in creased during each of the six months from December to May, declined in June by somewhat more than the usual seasonal amount. Factory employ ment and payrolls also showed de creases which were partly of a seasonal nature. The general level of whole sale commodity prices advanced dur ing June and showed little change during the first three weeks of July. Production and employment. Volume 1 , of industrial output, as measured by the Board’s seasonally adjusted in dex, decreased from 86 per cent of the 1923-25 average in May to 84 per cent in June, reflecting chiefly a sharp reduction in activity at cotton textile mills. Production at lumber mills and at coal mines also showed a decline. In the steel and automobile industries activity decreased in June by an amount somewhat smaller than is usual at this season. Maintenance of activ ity at steel mills in June reflected in part the accumulation of stocks by con sumers, according to trade reports, and at the beginning of July output of steel showed a sharp decline. Employment at factories decreased somewhat between the middle of May and the middle of June, reflecting re ductions in working forces in indus tries producing textile fabrics, wearing apparel, leather products, automobiles, and lumber, offset in part by increases in employment at steel t mills and at meat packing establishments. Value of construction contracts awarded, which had shown little change during May and June, showed an increase in the first half of July, according to the F. W. Dodge Cor poration. Department of Agriculture esti mates, based on July 1 conditions, in dicated a wheat crop of 484,000,000 bushels, compared with an average of 886,000,000 bushels for the five years 1927-1931, and a corn crop of 2,113, 000,000 bushels, compared with the five-year average of 2,516,000,000 bushels. Crops of other grains, hay and tobacco were also estimated to be considerably smaller than usual. The acreage of cotton under cultivation was estimated at 28,000,000 acres, about 2,000,000 less than the acreage harvested last season. In the first three weeks of July drought condi tions prevailed over wide areas, par ticularly in the southwest. The number of freight cars loaded per working day showed a further slight increase in June fol PER CENT Wholesale commodity prices. Whole sale prices of farm products and foods generally advanced during June while other commodities as a group showed a slight decline. Hog prices increased considerably in the middle of the month while wheat declined through out the month. In the middle of July wheat prices advanced rapidly to levels above those reached at the end of May, and there was a considerable ad vance in cotton, while lumber prices declined and finished steel prices were reduced somewhat from the advanced quotations previously announced. MEMBER BANK CREDIT Distribution. INDUSTRIAL PRODUCTION Index number of industrial production, ad justed for seasonal variation. (1923-1925 av erage = 100.) lowed by a decline in the first half of July. Sales by department stores de creased in June by more than the esti mated seasonal amount. FACTORY EMPLOYMENT PER CEWT 120 Wednesday figures for reporting member banks in 90 leading cities. Latest figures are for July 18. WHOLESALE PRICES 100 70 0 1929 1930 1931 1932 1933 193^ Federal Reserve Board’s index of factory em ployment adjusted for seasonal variation. (1923-1925 average =100.) Indexes of the United States Bureau of Labor Statistics. By months 1929 to 1931; by weeks 1932 to date. (1926 =100.) Between June 13 and July 18 member bank reserves in creased to a new high level of nearly $4,000,000,000, about $1,850,000,000 in excess of legal requirements. The growth reflected chiefly a further in crease in the monetary gold stock. A seasonal increase in demand for cur rency over the July 4 holiday period was followed by an approximately Bank credit. equal seasonal return flow during the succeeding two weeks. The volume of reserve bank credit outstanding showed little change. At reporting member banks there was a growth of U. S. Government deposits during the five-week period, reflecting chiefly the purchase in June of new issues of government securities by the banks. Bankers’ balances also increased but deposits of individuals, firms and corporations have shown little change. Loans declined somewhat, reflecting a decrease in loans to customers, while loans to brokers showed an increase. Money rates remained practically unchanged at the low levels prevailing in June. Business and Banking Conditions in the Philadelphia Federal Reserve District Trade and industrial activity in this district slackened somewhat during June, and in July further recessions have been reported by most branches of business. Industrial production, as measured by the output of manufac tures, coal and crude oil, declined frac tionally from May to June, and it was but slightly greater than a year ago when manufacturing operations were expanding at an unusually rapid rate in the face of rising prices and costs. The volume of industrial output in the first half of this year was about 16 per cent larger than in the same period last year. The total value of building contracts awarded increased in the month, owing solely to commercial buildings and public works and util ities; the gain thus far this year has been large, reflecting mainly a greater volume of public construction and sharp advances in prices of building materials in the past year. Retail and wholesale trade sales de clined from May to June by a some what larger amount than usual, but they were larger in the first six months this year than last, owing partly to higher prices. Sales of new passenger automobiles showed exceptional gaihs while those of life insurance rather un usual losses during the month, but busi ness in both continued larger than last year. Freight car loadings in this sec tion were well maintained, with the ex ception of coal shipments. General employment and earnings in twelve branches of industry and trade about the middle of June showed only small declines as compared with May, according to reports from 8,294 Pennsylvania establishments employing nearly 747,000 workers whose weekly payroll totaled about $16,342,000. Pre liminary reports indicate that em ployment and wage payments of the manufacturing industry in July have decreased further. The market for manufactured products has slackened considerably since the middle of last month, current demand being unusu ally quiet. Prices show a slight weak ness, although in most cases they have continued at about the same level as in the previous month. The volume of unfilled orders in July has fallen off materially and in general appears to be smaller than a year ago. Stocks of finished goods and raw materials at reporting plants have shown relatively unimportant Manufacturing. changes during the past month and re main smaller than at this time last year. Collections have declined and are smaller than a year ago, although numerous reports indicate increases. The number of wage earners on the factory rolls in Pennsylvania in June was virtually the same as in May, while the amount of wage disburse ments declined a little; usually both show marked seasonal recessions in this period. The index number of em ployment in Pennsylvania factories in June was 77, relative to the 1923-25 average as 100, or nearly 18 per cent higher than a year ago and that of payrolls was 61, or 44 per cent above last year. The volume of work done, as measured by employe-hours actually worked, in June declined slightly from May but was 15 per cent larger than in June 1933. Manufacturing production on the whole has changed little from May to June, but in July reports of curtail ment have been quite numerous. Our June index of factory productive activ ity, which takes into account the num ber of working days and the usual sea sonal variation as found in forty-seven important industries, was 70 per cent of the 1923-25 average or the same MERCANTILE TRADE MANUFACTURING ACTIVITY PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT RETAIL DOLLAR SALES EMPLOYMENT WHOLESALE ” DOLLAR SALES PAYROLLS 1929 1930 Page Two 1931 1932 1933 1934 1930 1931 1932 1933 1934 ,* » , ■ as in the previous two months and in June 1933. The volume of goods pro duced in these industries thus far this year, however, appears to have been 14 per cent larger than in the same period last year. Output of durable goods thus far this year has increased by a larger percentage than has the production of consumers’ goods. This was due mainly to exceptional gains in primary iron and steel products and transporta tion equipment, while reductions in textile products, which in the first six months of this year registered a decline of 6 per cent as compared with last year, held the gain in the production of consumers’ goods to small proportions. Among other in dustries showing increases over last year are cigars, leather and its prod ucts, building materials, and chemicals. Output of electric power by the leading systems of this district in creased from May to June, continuing the upward trend since early this year. For the year to date production was 8 per cent larger than last year. Total sales of electricity for all purposes increased in the month and the quan tity sold in the first half of the year exceeded that of the same period in the two previous years. The increase in industrial consumption was about 3 per cent larger than usual. Prelimi nary reports for July show seasonal recessions in output and sales. Coal. Production and shipments of Pennsylvania anthracite have been de clining almost steadily since the high level reached early this year. The drop from May to June was some what larger than usual, reflecting the influence of decreased demand and in creased stocks at the opening of the month. The number of workers on the rolls of anthracite collieries about the middle of June was estimated at about 114,000, a decrease of 10 per cent from May but an increase of 45 per cent from June last year. In the first six months both production and shipments were about 45 per cent larger this year than last and exceeded the volume in the same period in 1931 and 1932. Early figures indicate that there has been a further decline in out put during July. Wholesale prices of anthracite show about the usual sea sonal advance, following spring reduc tions, and are close to the level of a year ago. After a steady increase in the first quarter of this year, the output of bituminous coal declined rather sharply in April, but since then it has continued on a fairly even keel, barring the usual Business Indicators Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average taken as 100 (All figures are rounded from original data) Adjusted indexes allow for the usual seasonal change which results from an uneven distribution of business be tween the months of the year. Adjusted for seasonal variation Percentage com parison Unadjusted indexes reflect merely the actual change which may or may not be up to the usual seasonal expecta June Apr, May tions. 1933 1934 1934 June 1934 with Month Year ago ago Industrial production............. Manufacturing total.......................... Durable 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. 69 70 70 70 42 51 02 84 44 58 96 80 31 39 77 74 84 91 29 26 97 105 124 127 82 80 190 194 126 134 65 73 65 73 69 70 71p 7 Op 57 p 81p 64 72p 40 76 92 32 104 134 80 196 131 75 76 71 80 197 135 69] 69 Factory wage earners........................ Factory payrolls................................. Employe-hours (1927-28=100) . . . General—12 occupations: Employment (1932= 100)........... Payrolls (1932=100)........... Building and real estate Contracts awardedf—total............. Contracts awarded!—residential. . Permits for building—17 cities .... Mortgages recorded—Philadelphia. Real estate deeds—Philadelphia.. . Sheriff deeds (1930= 100)............ Other deeds (1930 = 100)............ Writs for Sheriff sales—Phila.......... Distribution 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)............... Business liquidations June Apr. May 1933 1934 1934 June 1934 - 1 - 0 + 3 + o +1 - 4 +20 + 5 — 2 - 2 + 8 -13 0 +1 + 3 - 8 - 9 - 0 + 2 - 0 +40 -12 +47 -28 +56 + 3 + 7 + 9 +10 - 6 — 3 + 4 + 7 + « + 6 + 2 +17 + 14 +55 + 1 +74 - 6 +50 + 3 + 10 +28 +15 + 13 + 2 + 8 + 16 +42 +44 +28 68 69 69 68 69p 69p 68p 69p 44 94 31 75 91 32 98 122 82 181 128 57 57 61 57 77 42 73 83 26 106 125 81 190 135 75 76 64 64 69p 41 73 89 34 105 122 81 182 134 75 76 64 65p 67p 48 75p 97 34 107p 114p 79 188 137 60p 60 62p + 0* - 2* - 0* +18* +44* + 15* +23* +58* +33* 66 42 56 77 59 60 77 62 65 77 61 64 _ j* + 15* + 17* - 2* +36* +43* 96 93 108 121 111 129 110 126 740 778 764 +76 - 1 +46 -35 -27 -51* + 5* — 48 +67 19 +23 14 + 13 7 -20 9 -22 54 -25* 183 -18* 60 -26 1482 36 13 5 5 41 130 48 777 36 14 6 11 39 98 58 817 34 14 10 6 40 89 63 764 64 69 69 62 63 62 75 83 81 67 66 65 106 103 100 75 71 79 60 61 62 60 60 62 63 68 67 - 1 - 2 — 2 - 0 — 2 +n + 3 + 3 - 1 +14 + 12 + 14 + 14 +11 +30 + 7 + 1 +13 +14 59 53 67 55 94 86 58 63 51 65 64 69 68 118 113 58 61 56 70 63 78 65 110 103 62 63 62 67 59 77 63 104 111 63 64 58 +47* -42* — 59* 127 -18* -33* -55* 119 61 94 50 97 74 80 Payment of accounts 59 72 71 71 Prices—United States Wholesale (1926 = 100)............. Farm products............................ Foods............................................. Other commodities.................... Retail food (1913= 100)........... Philadelphia................................ Scranton....................................... (000,000’s omitted in dollar figures) To date with year ago - 7 + 9 +49 —44 + i — 9* + 8* — 2 Number............................................ Amount of liabilities..................... Check payments............................ Rate of collections (actual) Retail trade................................. Wholesale trade.......................... Not adjusted June 1933 Mar. 1934 +24 + 8 +21 +23 + 16 +38 +1 +20 62 73 70 74 - 1 — 2 +12 + 18 27 62 28 66 29 72 30 73 + + + — + - +15* + 19* + 14* + 13* + 12* + 19* + 12* +19* 65 +33* 53 + 18* 61 + 18* 69 + 16* 97 +23* 99 +15* 102 73 60 66 79 107 117 114 74 60 67 79 108 118 115 75 63 70 78 109 118 115 1* 6* 4* 1* 0* 0* 0* Apr. 1934 May 1934 June 1934 Per cent change from Month Year ago -33 + 5 +2 -80 + 18 +73 + 8 — 1 + 2 + 1 -10 + 18 + 16 +22 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. $ 40 142 119 62.7% $514 485 898 11.9 $ 17 170 196 $ 14 169 194 67.4% 68.2% $468 564 1,036 15.8 $463 568 1,039 15.1 * Computed from data unadjusted for seasonal variation, t 3-month moving daily average. $ 12 168 196 66.9% $465 563 1,035 13.8 $ 8 168 206 68.0% $460 574 1,041 14.5 0 + 5 p—Preliminary Page Three OUTPUT OF METAL AND TEXTILE PRODUCTS BUILDING CONTRACTS PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT 1923 -25AVG = IOO 150 TC TAL 125 TEXTILES * 100 ^ % » • v\ •• V s 75 •% L % 50 METALS y 25 ~ O RESID ENTIAL 1 THREE MONTHS MOVING AVE AGE w V ADJUSTED TOR SEASONAL VAR lATION 1929 1930 1931 1932 1933 1929 1934 1930 1931 1932 1933 •v 1934 Source: F. W. Dodge Corporation seasonal change. In the first half of which include engineering projects un this year soft coal mines in central dertaken by the Public Works Admin Pennsylvania produced about 28 per istration. Contracts let for all other cent more coal than in the same period classes of building construction were last year; the volume also was consid noticeably smaller in June than in erably larger than in the first six May, decreases ranging from 5 per months of 1932. Employment in this cent for family dwellings to 53 per industry has risen sharply since the cent in the case of educational build middle of last year and on the whole ings. The total value of contract showed only a small variation in the awards in the first half of this year past four months, when the number of workers employed was the largest since Per cent early 1931; about the middle of June, change from the Pennsylvania bituminous industry Building contracts June 1934 Philadelphia 6 mos. had on the rolls approximately 145,000 Federal Reserve (in $l,000’s) 1934 Month from District workers. All industrial consumers, ago 6 mos. except power plants and railroads, had 1933 larger stocks of this fuel at the begin ning of June than a month before. Residential: Apts, and hotels.. $ 155.2 +179 -16 Prices of bituminous coal have ad + 5 Family houses---1.639.5 - 5 N on-resident ial: vanced almost steadily since the mid + 33 +49 Commercial.......... 1,131.4 dle of last year, after a period of re Factories............... + 46 310.3 -26 -53 +417 Educational.......... 265.2 cession for nearly six years, reaching - 44 -34 All other................ 398.4 a low point in April 1933. The June Total buildings. - 8 3,900.0 + 19 index number was 95 per cent of the Public works and +332 +47 utilities................... 3,632.8 1926 average as compared with a rec $7,532.8 + 83 +12 Grand total. . . ord low last year of 78. Activity in building trades has changed little since May; declines in building construc tion and general contracting were ac companied by some further gain in the construction and maintenance of streets and highways. Reports from over 1,100 contractors in Pennsylvania showed that about 3 per cent fewer workers were employed in June than in May; wage payments remained un changed, while working time increased about one per cent. Contrary to seasonal tendency, the value of contract awards increased 12 per cent in June, owing to substantial gains in awards for commercial build ings, and public works and utilities, Building and real estate. Page Four Source: F. W. Dodge Corporation. was 83 per cent larger than last year. Contracts for educational buildings, and public works and utilities thus far have shown very large percentage in creases—417 and 332 per cent, re spectively, as compared with last year. Preliminary reports for July indicate some further increase in the dollar volume of total awards. Wholesale prices of building mate rials showed some further rise in June, reflecting higher prices for ce ment, lumber, and plumbing and heat ing supplies, according to figures com piled by the Bureau of Labor Statis tics. Lately, however, some reductions in prices for certain materials have been announced. As compared with a year ago, building material prices are about 17 per cent higher, the largest increases being shown for lumber, brick and structural steel. Ordinary conveyances increased fur ther during June in the Philadelphia, Johnstown and Wilkes-Barre areas, while declines were reported from most other sections. For the year to date, the Harrisburg, Lancaster and Johnstown areas alone showed gains over 1933. In Philadelphia the value of mortgages recorded declined sharply in June and in the six months was 20 per cent smaller this year than last. Foreclosures have declined in the last three months, and the total volume of forced sales has been 25 per cent smaller so far this year than last. Agriculture. Farm work is progress ing rapidly. Wheat and rye threshing are well under way, and the oats crop is nearly ready to be harvested. Grow ing conditions have been generally favorable in the southeastern counties, but in most other sections crops have suffered in varying degrees from in sufficient moisture. Pastures and meadows and truck crops in particular need more rain to insure their normal growth. Fruit prospects continue poor, especially for apples and peaches. The July 1 condition of six leading field crops indicate that with the pos sible exception of corn, yields this year will be below the six-year average of 1925-30, according to estimates of the Department of Agriculture. As com pared with last year’s harvest, produc tion of corn, wheat, hay and tobacco is expected to be smaller, while that of oats and white potatoes may be some what larger. The condition of dairy cattle in gen eral appears to be about average for INDUSTRIAL FUEL AND POWER FREIGHT CAR LOADINGS ALLEGHENY DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT ELECTRIC POWER USED BY INDUSTRIES MERCHANDISE AND MISCELLANEOUS (64 9* or COAL FUEL OIL./ OUTPUT (23.5* or total) BITUMINOUS COAL I OUTPUT 1929 1930 TOTAL 1931 1932 Source: Bureau of Mines this time of the year, while that of swine herds is said to be somewhat below normal and is less favorable than a year earlier. Output of dairy products increased further from May to June but continued in much smaller volume than a year ago. Receipts of milk and cream in the Philadelphia area, which have been increasing rather sharply since early this year, declined in June and, with the excep tion of 1932, were the smallest for that month in several years. At four prin cipal markets, receipts of eggs from this section were 15 per cent larger in the first five months this year than last, while those of dressed poultry were nearly 14 per cent smaller. As compared with the average for the country, wholesale prices of farm products in Pennsylvania showed a rel atively small increase between May and June, reflecting chiefly higher prices for grains, chickens and eggs. Locally, prices received by farmers for meat animals, and fruits and vege tables declined appreciably, while in the United States as a whole they averaged 'higher in June than in May. The wholesale price index for all agri cultural commodities in this section stood at 91 per cent in June, as com pared with the country’s average of 77 per cent, both figures being per centages of the 1910-14 average. Distribution, trade and service. Ship ments of commodities in this section, as measured by freight car loadings, were well maintained in June but de clined somewhat in early July. Total loadings increased in June, reflecting mainly heavier shipments of merchan dise and miscellaneous commodities, and grains. Deliveries of coal, which usually make up about 24 per cent of total) 1933 1934 1930 1932 1933 1934 Source: American Railway Association total shipments, have decreased since May. Total freight car loadings in the first half of this year were 23 per cent larger than last year. Business at wholesale, which has been well maintained for two succes sive months, declined in June and showed signs of further slackening it) early July. The dollar sales of eight reporting lines combined, decreased 2 per cent from May to June, computed on a seasonally adjusted basis. The sales of jewelry alone showed an ex ceptional gain over the previous month, while those of hardware and drugs maintained their customary seasonal level. For the remaining lines de creases were recorded in June, rang ing from 2 per cent in groceries to 20 per cent in shoes. In the first six months this year the total value of wholesale trade sales was 24 per cent larger than a year ago. Higher prices account for some of this increase. Stocks of goods at wholesale estab lishments have declined seasonally, but were 14 per cent larger than a year ago, also reflecting partly the influence of increased prices. The rate of stock turnover was 12 per cent more rapid in the first six months this year than last. Collections during June did not measure up to the usual seasonal change but the ratio of collections to receivables was 18 per cent higher than a year ago. Retail trade sales of department, ap parel, shoe and credit stores combined failed to maintain their customary level in June by about one per cent. Improved business at department and men’s apparel stores was more that? offset by unusually large declines in the dollar volume of business handled at women’s apparel, shoe and credit stores. Preliminary reports indicate that some further slackening in retail trade activity occurred in July. In the first six months this year, dollar sales were 14 per cent larger than in 1933. This increase undoubt edly reflects in large part higher prices this year than last. Credit conditions at retail failed to show improvement during June. In creases in collections of department stores in relation to their outstanding balances were not as large as usual, nor were they sufficient to offset small declines in the case of apparel stores. Compared with June 1933, payments by customers were about 12 per cent larger. The rate of stock turnover was slightly higher in the first six months this year than last, all lines with the exception of women’s apparel and credit stores indicating a more rapid movement of goods. The value of in ventories at retail establishments de clined a little more than seasonally from May to June, but was 12 per cent higher than a year ago. Sales of new passenger automo biles, as measured by registrations, showed an exceptional increase in June, resuming the upward trend be gun early this year after an unusual drop in May. Sales in the first six months were 21 per cent larger this year than last. Hotel business declined sharply from May to June in both room oc cupancy and income, reflecting largely seasonal let-down in the movement of commercial travelers; summer resort hotels are not included among those now reporting to us. For the year to date room occupancy shows a gain of 15 per cent and the revenue from all Page Five about 13 millions June July was added to mem Reporting member banks July COST OF LIVING 18, 20, 19, (000,000’s omitted) 1934 1934 1933 ber bank reserve PERCENT deposits, which to customers: totalled 219 mil Loans / 'A On stocks and bonds.. . $ 203 S 208 $ 252 ’HI LADE LPHIA All other........................... 249 252 250 lions on July 18; Loans to open market.... 44 39 19 this was the high United States securities. . 287 251 292 V ‘ -* Other securities................... 262 252 245 'v. _f _/ est, except that -W V* / Total loans and inshown a week ut IT ED STA TE 5" vestments................ $1,045 $1,043 $1,017 ft V Net demand deposits........ earlier, in any 676 670 571 N Time deposits...................... 314 308 299 \> 'Z' weekly statement Government deposits........ 73 73 56 s due frdm banks. 168 160 89 since this bank Amounts 120 Amounts due to banks. . . 246 229 151 started operations. Reserve at Federal ReD EC. id 14-— 1 DO serve Bank....................... 83 142 136 Currency demand ' aggregating over 5 millions in the two addition of 5 millions to open market weeks ending loans. Government deposits did not July 4 was largely change, but there was an expansion of ’20 *22 '24 '26 *28 ’30 ’32 ’34 balanced by 12 millions in net demand and time Source: U. S. Bureau of Labor Statistics amounts returned deposits, partly reflecting increased thereafter. balances held for other banks. The sources an increase of 26 per cent as Bills discounted totaled less than 7 reporting banks show a rise of 6 mil compared with the first half of 1933. millions at this bank on July 18, much lions in reserves with the Federal Re Comparisons follow: the same as four weeks earlier. The serve Bank. reserve ratio advanced from 68.2 to The national total of outstanding 68.5 per cent, comparing with 64.8 bankers’ acceptances declined from 569 Per cent change Jan. 1per cent a year ago. to 534 millions during June, half of June 1934 June 30 Hotel business From an average of 196 millions in this decline being in bills covering compared 1934 Philadelphia Federal with with May, reserve balances of all licensed domestic warehouse credits; the total Reserve District June 30 member banks in this district in May June 1933 at the end of the month was 22 per 1934 1933 creased to 206 millions in June. The daily average excess above require cent below a year ago. In this district Capacity............................... + 0 - 0 ments rose from 79)4 to 88)4 millions; the total of acceptances increased from Room occupancy................ -10 +14 +15 Per cent of capacity used: a year ago the excess was only a little $13,800,000 to $14,500,000 in the month June 1934............ 40.2 and was 21 per cent in excess of a over 12 millions. May 1934 ............ 44.8 June 1933............ 35.2 Loans to customers at the weekly year ago. Revenue from: Guest rooms.................... -11 +14 +13 reporting member banks have declined Food.................................. -17 + 16 +21 Federal Reserve Changes in CTther sources.................. -12 from 460 to 452 millions in the last +55 +73 July 18, four weeks; most of this was in those Philadelphia Total revenue............. -13 +23 +26 1934 (Dollar figures Four One made on the security of stocks and in millions) weeks year bonds, which are in substantially Banking conditions. As a result of smaller volume than a year ago. The Bills discounted. . . $ 6.7 -$ 0.2 —$26.7 continued heavy disbursements by the low point this year in other loans to Bills bought............ 0.5 0 - 0.2 United States segovernment, reserves of member banks customers was 245 millions at the end curities................. 167.1 + 22.1 0 increased further, reaching the highest of January, which was followed by a Other securities. . . 0.4 - 0.1 - 0.1 Total bills and point on record in the course of the rise to over 254 millions in May; the securities. . . $174.7 -$ 0.3 -$ 4.9 month. Reporting member banks latest figure, 249 millions, is only Fed. res. note circulation................ + 2.2 249.3 + n.i show declines in loans to customers slightly lower than a year ago. Open Fed. res. bank note circulation—net. — 2.2 4.3 — 0.7 but a gain in their open market loans market loans and investments have in Member bank reand investments. serve deposits. . . 219.0 + 13.3 + 85.2 creased 10 millions in the last month, Deposit U.S. Treas Government disbursements increased urer-general ac1.3 - 7.5 - 1.9 in this district during the four weeks a drop of 5 millions in holdings of count .................. United States securities being more Foreign bank deending on July 18 and exceeded local + 0.1 posits.................... 0.5 - 1.2 deposits.... 10.5 — 1.3 - 1.1 receipts by 35 millions. The Treasury than offset by a rise of 10 millions in Other Total reserves........ 329.1 + 6.1 + 77.3 reduced its deposits at the reserve other securities, which are at the high Reserve ratio.......... 68.5% + 0.3% + 3.7% est point since the end of 1932, and an bank by 7l/2 millions, but most of the excess of expenditures was met RESERVE BANK CREDIT AND THE FACTORS WHICH AFFECT IT by transfers from other sections of Philadelphia Federal Reserve District the country and by deposits to the June 21 to July 18 inclusive—in millions of dollars credit of this bank in the settlement Sources of funds Uses of funds fund. The supply of funds available Reserve bank credit extended in this dis Currency demand............................................ + 0.6 trict .................................................................. — 0.5 Member bank reserve deposits.................... +13.3 to the banks also was augmented Commercial and financial transfers (chiefly Nonmember deposits at reserve bank. ... — 1.3 by a decline of over one million in interdistrict).................................................. —22.3 Unexpended capital funds of reserve bank — 0.4 Treasury operations........................................ +35.0 nonmember deposits at this bank. An Total. Total........................................................... +12.2 +12.2 unfavorable balance in commercial and Note: This table gives, in balance sheet form, a summary of the banking changes which have had an financial transfers with other districts influence on the amount of reserve bank credit in use in the district. absorbed the bulk of these funds, but n J/ Page Six Employment and Payrolls in Pennsylvania LOANS TO CUSTOMERS PHILA. FED. RE-S. DISTRICT REPORTING MEMBER BANKS (All figures are rounded from original data) MILLIONS SECURED BY STOCKS AND BONDS Manufacturing Indexes Employehours t Payrolls* Employment* (Indexes are percentages June 1934— of the 1923-25 average Per cent Per cent taken as 100. Total and per cent change from change from group indexes are weight June change from June ed proportionately.) 1934 1934 index index June May June May June May 1933 1934 1933 1934 1933 1934 ALL OTHER All manufacturing___ 77 Iron, steel ana prods.. . 68 Non-fer. metal prods.. . 87 Transportation equip.. . 63 Textiles and clothing... 92 Textiles......................... 90 Clothing....................... 98 Food products................. 104 Stone, clay and glass.. . 77 Lumber products........... 45 Chemicals and prods. . . 91 Leather and products . . 90 Paper and printing.... . 89 Printing........................ 86 Others: Cigars and tobacco . . 67 Rubber tires, gooas. . 92 Musical instruments . 48 1934 CURRENCY DEMAND PHILADELPHIA FEDERAL RESERVE DISTRICT MILLIONS- 61 59 74 45 72 72 75 88 40 31 79 75 73 75 + + + + + + + + + + + + + + + 12 + 5 + 7 -10 +50 - 3 50 71 37 + 18 + 7 - 7 + 2 - 17 -11 -39 -11 +101 + 2 +77 + 4 + + + + — — - * Figures from 1,931 plants. 44 80 31 64 20 23 6 22 27 28 40 21 16 14 - 2 - 0 - 5 — 5 - 5 - 3 — 15 + 3 + 1 + 8 0 - 7 — 3 - 4 +15 +38 + 7 +73 -23 -20 -36 - 1 + 3 + 2 +22 -20 — 6 - 2 0 2 3 2 2 0 9 2 1 2 1 2 0 0 +18 +35 +25 +38 +1 + 7 -16 +15 + 16 + 12 +26 + 7 +11 + 7 - 0 +1 -11 — 1 - 4 - 1 -15 + 3 + 1 + 7 — 2 — 5 — 2 — 2 t Figures from 1,610 plants. Indexes of Twelve Occupations Payrolls Employment (Indexes are percentages of the 1932 average taken as 100. In dividual indexes are combined proportionately into general in dex number.) 1932 1933 (weighted)___ Manufacturing............................. Anthracite mining...................... Bituminous coal mining............ Building and construction........ Quarrying and non-met. mining Crude petroleum producing. . . Public utilities.............................. Retail trade................................... Wholesale trade........................... Hotels.............................................. Laundries....................................... Dyeing and cleaning.................. Percentage change—June 1934 from June 1933 Allentown............. A ltoona................. Harrisburg............ Johnstown............ Lancaster............. Philadelphia......... Reading................. Scranton............... Trenton................. Wilkes-Barre.... Wilmington.......... Manufacturing Employ ment Wage payments + 17 +23 +34 +43 +26 +21 +20 + 0 +24 - 1 +28 +24 +18 + 58 +116 + 84 + 67 + 52 + 35 + 55 + ii + 33 + 13 + 40 + 25 + 27 Per cent change from June 1934 index June 1933 May 1934 +15 +18 +45 +34 -14 + 6 +79 — 1 + 16 + 8 + 13 + 2 + 7 — 126 150 99 163 70 130 175 89 + 2 + 1 + 3 + 3 +o no Per cent change from June 1933 May 1934 +36 +44 +55 +83 — 2 +17 +79 + 8 +25 — 2 — 2 — 17 + 4 0 -15 — 2 + 2 1934 General index City areas* June 1934 index Building permits (value) Debits +280 + 36 — 14 + 371 1- 7 + 55 - 13 — 10 + 18 - 40 +113 — 12 + 36 + 5 + 18 +20 +53 +20 -19 - 9 -12 -14 - 9 +15 +17 4- 5 Retail trade sales +20 +41 + 16 +34 +29 + 10 + 19 +28 +16 +21 110 120 92 122 84 105 196 90 111 103 107 98 110 1 0 -10 - 2 — 3 — 9 + 3 +0 96 102 97 120 +n +24 + 14 +23 + 3 + 1 + 2 + 2 — 4 INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA PERCENT +14 - June 1934 from May 1934 Allentown............. Altoona................. Harrisburg........... Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton............... Trenton................. Wilkes-Barre.... + + + + + — + 0 5 3 1 2 1 0 4 0 0 Wilmington.......... York + 3 — 1 1 — 2 + 1 — 13 + 3 — 1 — 2 — 4 — 2 + 2 + + 4 2 + 94 - 37 + 44 +246 + 40 + 75 - 33 — 15 + 144 + 4 — 6 + 43 +163 + 7 + 4 + 8 -10 + 7 + 2 — 1 — 1 +29 + 6 — 0 +25 + 2 * Area not restricted to the corporate limits of cities given here. +15 -10 - 7 -16 — 15 - 1 — 5 —15 +12 — 6 EMPLOYMENT PAYROLLS + 6 932 193 3 19 3 4 Page Seven Index numbers of individual lines of trade and manufacture OUTPUT OF MANUFACTURES Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average taken as 100 (All figures are rounded from original data) Adjusted indexes allow for the usual seasonal change which results from an uneven distribution of business be tween the months of the year. Unadjusted indexes reflect merely the actual change which may or may not be up to the usual seasonal expecta tions. Adjusted for seasonal variation Not adjusted Percentage com parison Turn Apr. May June 1933 1934 1934 1934 June 1934 with Month Year ago ago June Apr May June 1933 1934 1934 1934 To date with year ago Retail trade Sales Total all stores............................ Department............................. Men’s apparel......................... Women’s apparel................... Shoe........................................... Credit........................................ 60 59 58 79 65 54 64 62 51 78 62 73 69 66 59 90 80 67 69 67 66 85 72 65 - 1 + i +n - 5 — 10 - 3 + + + + + + 14 14 13 8 11 19 Stocks of goods Total of all stores....................... Department............................. Men’s apparel......................... Women’s apparel................... Shoe........................................... Credit........................................ 55 50 53 84 55 58 62 54 57 84 58 72 63 56 61 91 58 r 72 62 55 63 87 56 68 + - + + + + + + 12 10 20 3 3 18 2 2 4 5 3 5 Rate of stock turnover 6 months (actual, not indexes) + + + + + + + 14 14 20 13 16 30 1* 59 56 60 77 74 51 65 60 49 92 69 72 70 65 55 93 89 70 67 64 68 83 83 61 53 48 50 76 54 56 64 56 61 90 59 72 63 55 61 92 59 r 70 59 61 78 55 66 1.85 Wholesale trade Sales Total of all lines.......................... Boots and shoes...................... Drugs........................................ Dry goods................................. Electrical supplies................. Groceries.................................. Hardware................................. Jewelry..................................... Paper......................................... 71 75 83 81 64 42 73 59p 76 90 87 87 41 42 45 42 95 68 113 109p 88 107 105 104 40 48 47 47 29 38 35 40 60 65 68 65 Stocks of goods Total of all lines.......................... Boots and shoes...................... Drugs........................................ Dry goods................................. Electrical supplies.................. Groceries.................................. Hardware................................. Jewelry..................................... Paper......................................... 58 67 66 65 21 21 22 r 17 109 112 112 121 32 50 48 46 52 88 87 r 77p 75 74 73 77 55 62 59 r 61 42 52 48 47 61 58 60 61 — 2 + 14 + 24 -20 — 8 + 6 + 0 + 15 + 14 — 8 + 3 + 34 - 3 + 14 + 28 - 2 + 17 + 24 0 + 16 + 30 + 14 + 37 + 66 - 4 + 9 + 29 - 0 + 14 -21 - 18 + 8 + ii - 6 + 43 -11 + 49 + 5 + 3 + 3 + 10 - 2 + 12 — 4 — 4 Rate of stock turnover 6 months (actual, not indexes) Output of manufactures Pig iron.............................................. Steel.................................................... Iron castings.................................... Steel castings................................... Electrical apparatus...................... Motor vehicles................................. Automobile parts and bodies.... Locomotives and cars.................... Shipbuilding..................................... Silk manufactures.......................... Woolen and worsteds.................... Cotton products.............................. Carpets and rugs............................ Hosiery.............................................. Underwear........................................ Cement.............................................. Brick.................................................. Lumber and products................... Bread and bakery products......... Slaughtering, meat packing......... Sugar refining.................................. Canning and preserving............... Cigars................................................ Paper and wood pulp.................... Printing and publishing............... Shoes.................................................. Leather, goat and kid.................... Explosives......................................... Paints and varnishes..................... Petroleum products....................... Coke, by-product........................... + 12* 22 32 41 35 43 54 63 64 39 44 43 43p 26 58 66 68 51 74 74 72 13 11 11 11 45 56 39 32 8 17 22 25 72 90 103 148 113 101 85 94 75 41 39 38 45 44 43 37 60 50 51 50 141 117 112 102 182 106 109 115 42 35 49 49 30 31 34 33 20 17 21 20 106 99 94 93 83 96 66 94 44 60 67 70p 83 90 91 89 64 58 60 60 87 84 84 84 142 137 149 124 108 118 120 109p 54 83 89 89 81 63 68 71 130 145 134 13Sp 69 85 91 96p * Computed from data unadjusted for seasonal variation. Page Eight -15 + 3 + 1 + 4 — 2 — 4 -19 + 15 +44 +10 - 2 -13 - 1 - 9 + 5 - 1 - 1 — 5 + 4* - 1 +41 + 4 - 2 + 0 - 0 -17 — 9 - 0 + 4 + 3 + 6 + 57 + 49 + 11 + 158 + 42 - 20 - 30 +202 +105 - 17 - 49 - 17 - 16 — 28 - 37 + 16 + 11 - 3 + 3* - 12 + 13 + 59 + 7 — 5 - 3 — 12 + i + 64 - 12 + 6 + 40 + 116 + 88 + 89 +167 + 54 + 8 + 79 + 99 + 30 — 1 - 19 + 16 + 41 — 4 — 30 + 25 + 31 + 29 + 2* - 5 + 10 + 58 + a + 12 + 0 + + + + + 22 74 12 5 57 67 55 73 37 78 90 42 24 57 69 78 77 45 73 51p 90 87 84 37 43 39 62 86 90p 98 104 106 50 52 49 25 29 34 65 67 63 55 20 102 32 51 68 56 46 61 68 65 63 21 21r 16 113 113 114 50 48 46 86 82 r 76p 74 70 70 66 61r 62 50 51 51 60 60 58 2.49 21 44 3928 51 16 45 9 71 108 71 43 57 L38 182 50 31 21 88 100 89 32 90 63 86 135 109 54 83 L30 69 p—Preliminary. 36 43 33 56 66 66 46 45 43 59 68 71 64 68 72 13 14 13 61 41 32 18 22 26 92 106 147 99 82 89 37 36 36 45 42 35 48 49 48 117 112 100 103 110 115 34 56 59 33 36 35 17 19 20 98 94 88 125 82 100 50 51 50p 82 88 96 59 60 60 86 85 83 137 136 118 114 109 HOp 83 90 89 66 72 72 144 L34 139p 88 95 96p r—Revised.
@FedFRASER