The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THE BUSINESS REVIEW FEDERAL RESERVE BANK OF PHILADELPHIA^!? &t*r IS4I % AUGUST 1, 1941 L- :« --**•. AM 'iwm&j* 57 S7*r;A;' . D, TiC*t IV&I0H ^Expanding defense production is having an in creasing effect upon industrial, trade, and bank ing activity. The volume of industrial production in the Third Federal Reserve District is rising steadily to new high levels. Increasing income and growing business requirements are stimulating the demand for goods by manufacturers, distrib utors, and consumers. Evidences of shortages of civilian goods are increasing. Many producers of such basic materials as steel and textiles are booked for several months in advance. Increased tension in the Far East has seriously unsettled the outlook for supplies of silk, rubber, tin, tungsten, and other key commodities. Costs and prices are rising. The volume of bank credit continues the sharp ex pansion which began last summer. industrial building, reflecting continued expansion in productive facilities to meet defense require ments. Residential building has expanded sub stantially from the high levels reached last year. Retail trade sales slackened somewhat in June from the unusually large volumes of the preceding two months, but business improved again in July. Buying at wholesale has been active, and problems of making scheduled deliveries appear to be grow ing more acute. The movement of rail freight in this area is the heaviest since 1930. Prices generally have increased rapidly since last spring and in the middle of July the index of wholesale prices, published by the United States Bureau of Labor Statistics, was 18 per cent above the level prevailing before the war in August 1939. Industrial activity in this District increased 4 Heavy trade and industrial demand, rising costs, per cent from May to June to a level nearly one- shipping difficulties, and growing scarcities have third above that of a year ago, when the defense stimulated widespread increases in prices of both program was just getting under way. The output raw materials and manufactured goods. The cost of durable manufactured goods continues to show of living in Philadelphia has increased 5 per cent the greatest advances. Production of coal has in during the war period, with particularly rapid ad creased sharply; output of oil has risen somewhat vances in recent months. The sharpest rise has been more than seasonally; and the production of elec in the cost of food. tric power has expanded further to a new record. The volume of commercial bank loans required Employment in trade and industry generally has to finance expanding business continues to increase. increased further to levels well above last year. Investments of reporting banks in this District have Factory employment is the largest since 1923 and also risen. Deposits have increased, the volume of is still expanding. Increased overtime work and money in circulation continues large, and funds higher wage rates have brought workers’ income generally are being more actively used. Prices of to the highest level on record. equities have strengthened since early June, while Construction activity has increased further. An quotations on bonds have continued steady near especially sharp gain has occurred in the case of earlier peak levels. Page One PRODUCTION AND PRICES FACTORY PAYROLLS PENNSYLVANIA PERCENT PERCENT PRODUCTION CAPITAL - GOODS vCOST OF LIVING IN PHILADELPHIA C0NSUMERS - GOODS ■ WHOLESALE COMMODITY PRICES U.S. 1936 1937 1938 1939 1940 1941 Manufacturing. The demand for products man ufactured in this District continues strong, but the growing shortage of goods available for delivery before the fourth quarter or early next year has restricted the volume of sales to civilian buyers in several basic lines. Inquiries were more numerous in the month ended the middle of July than in the previous period in all reporting industries except textiles. Sales also increased somewhat except in the case of iron and steel, where mills are booked virtually to capacity for the next several months. Sales generally are sharply above last year and backlogs are still expanding. Prices of manufac tured goods are advancing in all reporting lines except steel. 1936 1937 1938 the iron and steel industries. Small increases were also reported by consumers’ goods industries, where employment averaged 14 and payrolls 26 per cent above last year. In these lines employ ment is still below the peaks of 1937. Hourly earnings of factory workers reached a new high average of 81 cents in June or 11 per cent above last year. The peak in 1929 was 59 cents an hour and the low point of the depression was 43 cents in 1933. Working time also in creased to an average of approximately 41^ hours a week, the highest since 1930. Weekly earnings reached a new peak of about $33.20. In Delaware, factory employment declined 1 per cent and payrolls increased 2 per cent in June. Operations are increasing, and stocks of finished goods at manufacturing plants are being reduced In southern New Jersey, employment and payrolls further. Supplies of raw materials have been ex advanced 2 and 3 per cent respectively in the panded substantially since last year but showed month. little change from early June to July. The output of manufactured products in the Dis trict increased slightly more than usual in June to Factory employment and payrolls in Pennsyl vania increased further from May to June, when a level 34 per cent above the middle of 1940. there is ordinarily a decline, and preliminary re Production of durable goods expanded, while the output of lighter products declined somewhat. The ports indicate that employment advanced and wage principal gains were in transportation equipment, payments were well sustained again in July. The where output was double the amount produced in total number of workers at factories in June was June 1940; chemicals; and metal products, espe estimated at over 1,100,000 or close to the previous cially primary iron and steel. peak levels reached in 1923. Wage payments Production and sales of electric power increased totaled over $33,800,000 a week, the largest dis more than seasonally in the month to volumes over bursements on record. one-fifth larger than a year ago. The principal gains in the month were again in the heavy industries, where employment was over Coal and other fuels. The market for fuels con 30 per cent above a year ago and payrolls 70 per tinues unusually active. Expanding industrial re cent higher. The largest increases were reported by quirements and efforts to build up inventories have the transportation equipment, nonferrous metal, and further increased the demand for bituminous coal. Page Two METAL PRODUCTS INDUSTRIES TEXTILE ACTIVITY EMPLOYEE-HOURS IN PENNSYLVANIA FACTORIES EMPLOYEE-HOURS IN PENNSYLVANIA PERCENT COTTON ' GOODS ELECTRICAL APPARATUS MACHINERY —, k >•"> » / WOOLENS ‘/^AND WORSTEDS HOSIERY STRUCTURAL IRON AND STEEL 1937 1938 1940 1941 1936 1937 1938 1939 1940 previous month or in June of 1940 and the largest in eleven years. The increase was due chiefly to awards for factory construction, which were four times as large as in May and almost eleven times Production of anthracite in Pennsylvania in as large as in June of last year. Contracts for the creased from 148,400 tons a day in May to a high erection of apartments and hotels also increased level of 195,400 tons a day in June, when opera sharply in the month. Awards for houses declined tions are usually expected to decline. Output de but were substantially larger than a year earlier. creased early in July, however, owing to a vacation Contracts for public works and utilities were more of one week for miners. The volume of coal mined than doubled from May to June but were only during the first six months of 1941 approximated slightly larger than in June 1940. that of a year ago. In the first six months of this year total awards Operations at bituminous coal mines expanded of building contracts were 47 per cent greater than further in June, although activity ordinarily slack in the same period of 1940. Sharp increases oc ens at this season. Production averaged 441,200 curred in the case of houses and all types of nontons a day, the largest for the month since 1929. residential structures, especially factories. Output in the first half of 1941 was the largest in four years. Agriculture. Defense activity is having an in Sales of anthracite are large for this season. Prices of coal are somewhat higher, as costs of production have increased. creasing effect upon agriculture, particularly in this District, where many large industrial centers are producing a wide variety of defense materials. The steady and rapid expansion of wage incomes has stimulated the demand for farm products, and Building. Construction activity in this District jobs in defense industries at high wage rates have expanded substantially more than usual from May drawn large numbers of workers from rural areas. to June and reached the highest levels since 1930. The shortage of labor has become increasingly Awards of new contracts increased sharply in the acute, particularly in the case of growers of fruits month as industry continued the large-scale expan and truck crops, where hand labor is required. sion program started last year to provide adequate Growing conditions are generally favorable, facilities for the production of defense equipment especially in southeastern Pennsylvania and south and supplies. Residential construction also con ern New Jersey. A succession of heavy rains and tinues unusually active, particularly in industrial high temperatures have substantially improved pas centers where the problem of housing the rapidly ture conditions. Cultivation of com, the harvest growing defense labor force is increasingly acute. ing of winter grains, and haying, however, have Awards of new contracts in June totaled nearly been somewhat retarded. A period of excessive $38,160,000 or about 80 per cent more than in the heat and humidity had an unfavorable effect upon Production of by-product coke increased again in June, and the output of gas and fuel oils also continues at a high level. Activity at both coke ovens and oil refineries is above a year ago. Page Three VALUE OF BUILDING CONTRACTS DISTRIBUTI0N PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE OISTRICT PERCENT PER CENT INDUSTRIAL RETAIL TRADE SALES -RESIDENTIAL TOTAL FREIGHT CAR L0A0ING5 3MOS. MOVING AVG. ADJUSTED f QR SEASONAL VARIATION 1936 1937 193 8 1940 1941 19 3 6 1937 1938 1939 1940 1941 some vegetables. Field and fruit crops are ex patory buying is in evidence. Sales by department pected to be somewhat smaller this year than last, and credit stores in June were larger than a year although prospects are for an increase in the pro ago, those of apparel stores were about the same, duction of tobacco. and at shoe stores the volume of business was Prices of farm products have increased sharply smaller. since early spring. Farm cash income in Pennsyl Stocks at retail establishments have been ac vania, New Jersey, and Delaware in the first five cumulating steadily since the first of the year and months totaled over $163,300,000, or 11 per cent in June all lines showed smaller than usual reduc more than in 1940. tions. Inventories at credit stores showed little change in the month. Stocks generally are above Trade. Heavy demands for industrial materials a year ago and exceed the peak levels of 1937. and the sustained sharp rise in consumer incomes Wholesale business improved further from May have maintained distributive activity at unusually to June in all lines except shoes and groceries, and high levels. The movement of rail freight in June for the first half of the year averaged about onewas the largest since 1930, and shipments con third larger than in 1940. The greatest increases tinued near these peaks in July. Wholesale trade in the month were again in sales of electrical sup has expanded further in spite of the difficulties of plies, which were more than double a year ago. getting delivery in many lines. Retail business in Stocks at wholesale establishments showed little June slackened somewhat from peaks reached in change in the month but, except in the case of dry April and May, hut improved again in July. Trade goods and jewelry, are substantially larger than generally continues substantially above a year ago. last year. Following unusually heavy consumer buying in April and May, when retail trade was the best for that season in the past eleven years, sales declined somewhat more than usual in June. Larger than seasonal declines were reported by department, women’s apparel, and shoe stores, and business at men’s apparel stores expanded less than was to be expected. The only improvement in reporting lines in the month occurred at establishments specializ ing in sales of furniture and household appliances. Consumers generally are reported to be buying bet ter quality goods than is usually the case, and sales of semiluxuries, house furnishings, and electrical appliances seem to be the most active. Some antici Page Four Shipments of rail freight increased in June when there is ordinarily a small decline, and for the first six months have averaged about one-quarter above a year ago. Shipments of coal increased substan tially and were the largest for the season since 1927. Loadings of coke declined less than season ally in the month. Shipments of ore were reduced slightly, hut for the past six months have been 60 per cent above last year and in May had reached the highest level since 1923. The movement of forest products and grain increased somewhat, and loadings of livestock declined. Shipments originat ing in Philadelphia continue heavy, despite a small decline from the peaks of May and June. LOANS AND INVESTMENTS OF ALL MEMBER BANKS COMMERCIAL LOANS PHIL.A FED, RES. DISTRICT REPORTING MEMBER BANKS MILLIONS PHILADELPHIA FEDERAL RESERVE DISTRICT MILLIONS LOANS 1000 OTHER SECURITIES 1940 U.S. GOVERNMENT OBLIGATIONS 1939 JAN FEB. MAR, APR. MAY JUNE JULY AUG SEPT OCT. I (direct and guaranteed) i NOV DEC *29 *30 *31 32 *33 F34 *35 *36 *37 *38 *39 hO 4 Banking conditions. Credit extended by the re porting banks has been increased further during the past month by active industrial and trade bor rowing and purchases of newly issued securities of Federal agencies. Deposits have increased and are being used more actively as business requirements for funds are expanding. At all member banks in this District deposits are one billion dollars larger than in 1929, but total loans and investments are still somewhat smaller. member banks have increased $21,000,000 over the past month to a new high since 1931 of $1,320, 000,000. Commercial loans, rising $10,000,000 to a level 34 per cent above a year ago, extended the increase over the entire war period to nearly 60 per cent. There was also a small rise in un classified loans, which include direct extensions of personal and installment credit, and an increase of $9,000,000 in holdings of securities guaranteed by the United States Government. Reserves of member banks were reduced $11,000,000 to $689,000,000 in the five weeks ended July 23. Balances continue considerably above requirements at most banks and generally are supplemented by heavy deposits with corre spondents. Treasury receipts in the month substantially ex ceeded disbursements, owing partly to the collec tion of checks for income taxes payable in other districts. Treasury balances also were sustained, in the face of continuing heavy expenditures on defense, by the proceeds from sales of securities for the Reconstruction Finance Corporation and the Commodity Credit Corporation, and sales of sav ings bonds, which in May and June aggregated $50,000,000 maturity value in this District. The reporting banks gained $18,000,000 of de posits in the period, but the total of $1,907,000,000 on July 23 was still substantially under the peak in May. State and municipal balances declined further, apparently as a result of debt operations, while demand deposits of individuals and business concerns are at a record high. In the first half of the year these deposits averaged 16 per cent above 1940, and the rate of turnover advanced. The reduction in reserves was due partly to the substantial increase in currency demand. An ex pansion of $15,000,000 in circulating notes of this Bank was more than twice the amount required a year ago. A gain of $5,000,000 in interdistrict transactions, together with funds released from mis cellaneous balances at the Federal Reserve Bank, helped to maintain the level of reserves. Total loans and investments of the reporting Preliminary tabulations covering all member banks in the District show that they had $2,535, 000,000 of loans and investments on June 30. In creases of $61,000,000 in the second quarter and $193,000,000 over the past twelve months were widely distributed among city and country banks. An increase of $66,000,000 to $1,110,000,000 in loans from April 2 to June 30 was due chiefly to heavier borrowings on commercial account from the Philadelphia banks. Holdings of government securities were increased, particularly by the coun try banks, but aggregate investments declined $5,000,000 to $1,425,000,000 as a result of reduc tions in state, municipal, and corporate obligations. The volume of loans is much smaller than in 1929; investments have been sharply increased by the pur chase of United States Government obligations. Page Five BUSINESS STATISTICS Production Employment and Income Philadelphia Federal Reserve District in Pennsylvania Adjusted for seasonal variation Not adjusted Industry, Trade and Service Per cent c lange Indexes: 1923-5=100 June May June 1941 1941 1940 1941 from June May June 1941 1941 1940 6 Year mos. ago 1940 Mo. ago + 31 + 34 + 55 + 18 + 51 + 32 +100 + 7 + 10 + 30 + 20 + 28 + 3 94 119 91 159 184 35 123 68 1062 92 74 64 112 91 158 76 64 33 89 82 lllr 85 88 73 156 93 196 r 106 32 13 116 69 68 r 32 939 529 90 r 66 80 50 60 43 129 74 93 78 146r 126 75 57 65 45 35 r 29 r 103 19 97p 106 88 93 161 116p 169 101 181p 149 82p 79p 105 394 342 336 250 103 105 91 109 86 93 166 117 159 95 r 166 139 57 51 101 391 339 324 233 104 51 81 96 83 91 126 90 94 84 164 135 75 r 74 r 81 r 405 283 277 196 + 6 + 8 + 3 + 2 - a +12 + 6 0 +13 + 3 - 8 + 7 -13 - 2 + 8 + 1 - 2 - 5 + 7 0 -82 + 6 - 3 + 3 0 - 3 - 1 + 7 + 6 + 9 + 7 +45 +55 + 4 + 1 + 1 + 4 + 7 + 14 + 40 + 24 + 71 + 74 +182 + 79 +116 +101 + 39 + 48 + 50 + 51 + 18 + 26 + 32 + 43 + 15 + 9 - 1 - 62 + 20 + 11 + 6 + 2 + 28 + 29 + 81 + 19 + 11 + 10 + 9 + 7 + 29 - 3 + 21 + 21 + 28 105 80 123 137 97 71 109 141 69 55 56 142 + 8 +13 +13 - 3 + 52 + 44 +120 - 4 | + 3 + 1 + 4 - 2 + 2 - 3 + 11 0 - 3 - 2 + 8 - 2 0 1 108 85 110 83 131 88 r 96 80 135r 91 87 64 186r 103 92 86 110 97 53 41r 141 128 141 108 92 89 + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + | + + + + + + + + + + + + + + 4 -+ + + + 112p 112p 136p 94p 137 84p 206 91p 107 53 153p 138p 92 * Unadjusted for seasonal variation. T 3-month moving daily average centered at 3rd month. 111p 107 111p 109 85 r 83 r 139 82p 208 85p 115 58 154p 135p 91 134 r 84 194 88 106 56 144 128 92 92 63 104 81 104 45 r 128 105 89 89. 122 90 165 184 43 123 70 1052 88 71 60 107 89 158 91 66 34 101 97 21 70p 114 87 92 153 118p 169 103 183p 149 75p 73p 93 410 325 326 253 93 116r 91 162 180 r 40 122 67 r 967 86 75 59 125 93 147 85 69 32 94 103 129 69 105 86 94 151 107 161 100 166 144 60 56 91 406 315 311 238 78 87 72 97 106 15 69 32 524 63 48 40 71 76 126 68 47 29 r 92 98 54 58 103 82 90 120 91 94 86 165 135 68 r 68 r 72 r 421 269 269 198 107 84 125 130 94 75 114 99 Allentown........ Altoona............ Harrisburg. . . . Johnstown.... 1,an caster......... Philadelphia... Reading........... Scranton........... Trenton............ Wilkes-Barre. . Williamsport. . Wilmington. . . York................. Employment Payrolls May 1941 June 1940 May 1941 +2 +1 +1 +3 +3 +2 0 +4 0 +1 +1 0 +4 +25 +18 +34 +21 +18 +31 +18 +17 +15 +37 + 14 +30 +20 +4 +5 +7 +4 +4 +5 0 +6 +4 +3 +7 +2 +6 June 1940 Building permits value May 1941 +59 - 20 +49 +70 +1072 +50 - 21 +44 + 347 +58 + 34 +50 - 43 +34 + 53 +38 + 227 +78 3 +40 + 77 +57 - 69 +52 + 22 June 1940 June 1940 May 1941 June 1940 + 312 -10 + 88 - 9 +2952 -10 - 13 - 3 + 140 -19 + 43 - 6 - 46 - 5 + 62 -11 - 31 - 1 - 16 - 3 + 332 - 59 -12 + 103 - 6 + 2 + 8 +10 +17 + 5 + 9 +17 0 + 7 + 5 + + + + — + +28 + 19 +22 +28 +21 +48 +25 +16 +23 +16 +31 +29 +35 + 8 +14 4 2 3 6 1 8 1 8 0 0 — 6 +41 - 2 +2 +2 +1 0 +4 +2 +1 +1 +3 +1 -2 +2 +2 +17 +24 - 1 + 3 +15 +n + 2 + 228 311 88 300 103 311 164 120 146 143 128 160 159 6 + 7 + 7 + 2 +n + 6 Employment* + 5 + 4 +53 - 3 + 4 + 4 - 1 + 2 + 4 + 3 — 2 + 3 + 2 +44 +54 +27 +58 +32 +36 ' 0 + 9 +11 +15 + 5 +12 + 8 Payrolls* Per cent Per cent June change from June change from 1941 1941 index May June index May June 1941 1940 1941 1940 Indexes: 1923-5=100 TOTAL................................... Iron, steel and products... Nonferrous metal products Transportation equipment Textiles and clothing........ Textiles............................... Clothing.............................. Food products..................... Stone, clay and glass......... Lumber products............... Chemicals and products. . Leather and products.... Paper and printing............ Printing................................ Others: Cigars and tobacco........... Rubber tires, goods........... Musical instruments......... 106 +24 +34 +39 +42 + 19 110 175 85 98 91 126 108 94 67 109 95 102 92 68 99 75 +20 + +18 + 4 +24 + 8 + 16 + 16 + 4 + 3 +1 +25 + 2 + 8 +24 +13 127 178 263 107 +4 + 4 102 +1 +1 +6 + 1 95 135 127 110 71 139 105 120 105 65 137 93 + 8 + 9 0 +10 + 3 + 4 + 4 0 + 6 +29 + 4 +64 +72 +70 +69 +41 +42 +41 +10 +42 +26 +30 +35 +15 + 9 + 5 +47 +38 * Figures from 2,680 plants. Hours and Wages Debits May 1941 130 165 65 105 64 127 139 104 117 126 106 119 115 Manufacturing Factory Workers Averages June 1941 and per cent change from year ago Retail sales * Area not restricted to the corporate limits of cities given here. Page Six GENERAL INDEX............ Manufacturing...................... Anthracite mining............... Bituminous coal mining. . . Building and construction.. Quar. and nonmet. mining. Crude petroleum prod......... Public utilities...................... Retail trade..................... Wholesale trade.................... Hotels...................................... Laundries.......... Dyeing and cleaning........... p—Preliminary r—Revised. Local Business Conditions* Percentage change— June 1941 from month and year ago Indexes: 1932=100 71 58 57 135 Payrolls Per cent Per cent June change from June change from 1941 1941 index May June index May June 1941 1940 1941 1940 1 INDUSTRIAL PRODUCTION MANUFACTURING................ 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.................. Individual Lines 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..................... COAL MINING................... Anthracite.............................. Bituminous............................. CRUDE OIL........................ ELECTRIC POWER Sales, total............................... Sales to industries................ BUILDING CONTRACTS TOTAL AWARDSf................. Residential f.......................... Nonresidentialf.................. Public works and utilitiesf.. . Employment June 1941 fr om TOTAL............................. Iron, steel and prod... . Nonfer. metal prod.. . . Transportation equip.. Textiles and clothing. . Textiles........................ Clothing....................... Food products.............. Stone, clay and glass.. Lumber products......... Chemicals and prod.. . Leather and products. Paper and printing. . . Printing........................ Others: Cigars and tobacco. . Rubber tires, goods. . . Musical instruments. . Weekly working time* Hourly earnings* Weekly earningsf age Ch’ge Aver Ch’gc Aver Ch’ge hours age age 41 .4 42.6 42.5 44.9 37.4 37.7 36.6 40.6 38.0 41.6 40.1 39.3 40.9 37.1 +12 $.808 +11 $33.19 + 13 .914 + 14 38.91 +12 .718 + 8 30.54 + 18 .889 + 8 39 ,84 +13 .552 + 5 20.64 + 14 .561 + 5 21.12 +13 .526 + X 19.36 + 3 .664 + 5 27.36 + 7 .766 + 6 29.07 + 9 .565 0 23.26 + 5 .857 + 5 34.02 +12 .560 + 1 22.04 + 4 .759 + 6 32.08 + I .916 - 1 36.12 +25 +29 +21 +27 +19 +19 +19 + 8 + 14 +10 +10 +14 +10 + 3 36.5 41.1 45.2 - 6 .468 +12 + 8! .763 .716 - 4 +15 +20 ' Figures from 2,451 plants. + 2 + 3 +12 17.11 31.38 32.38 t Figures from 2,680 plants. Distribution and Prices Adjusted for seasonal variation Per cent change Wholesale trade Unadjusted for seasonal variation June 1941 from Month Year ago ago Sales Total of all lines.................... Dry goods............................. Electrical supplies.............. Groceries............................... Hardware.............................. Jewelry.................................. Paper..................................... Inventories + S + 42 —20 + 42 + 3 + 4 + 3 + 41 +26 + 114 - 2 + 15 + 9 + 56 + 5 + 77 + 9 + 28 + + — + + + Paper..................................... 1 + 2 2 - 8 1 + 15 2 + 27 7 + 21 2 0 5 + 7 1941 from 6 mos. 1940 +33 +26 +77 +16 +53 +49 +19 Commodity prices Index: 1926=100 Basic commodities 7 industrial.............. 7 agricultural........... Wholesale*............... Raw materials......... Finished products.. Farm.......................... Other......................... Retail food* (1935-9 = 100).... Philadelphia............ Scranton................... +5 +3 +5 +2 +7 +5 106 103 105 +4 +3 +2 0 +i +28 +45 +16 +26 + 12 +35 +24 +n +34 + 12 +18 + 10 +24 + 18 + 8 RETAIL TRADE Sales Department stores—District.......................... Philadelphia................. Men’s apparel..................................................... Women’s apparel................................................ Shoe........................................................................ Credit.................................................................... Year ago 1941 from 6 mos. 1940 +16 + 16 +13 + 8 +17 +15 119p 115 112p 97p 98p 129p 125 124 125 104 108 123 108 104 111 97 108 115 - 5 - 7 -10 - 6 - 9 +4 +10 +11 + 1 +8 1 +n 109p 105* 103p 103p 135p 107 103 97 101 130 94 91 91 102 114 + 2 + 2 + 6 +2 +4 FREIGIIT-CAR LOADINGS Total........................................................................ Merchandise and miscellaneous.................... M erchandise—1 .c .1............................... Coal........................................................................ Ore.......................................................................... Coke....................................................................... Forest products.................................................. Grain and products........................................... Livestock.............................................................. 148 140 109 170 158 197 130 130 100 144 137 109 150 204 190 121 120 109 116 112 93 124 128 137 87 + + +28 +25 + 17 +36 +24 +44 +49 +17 -15 +24 +27 +13 +12 +60 +42 +51 + 5 - 3 MISCELLANEOUS Life insurance sales.............................................. 101 99 98 -13* Check payments................................................... 148 * Computed from unadjusted data. 138 106 102 128 88 128 110 104p 99 88p 99p 124p 109 104 97 107 125 90 86 79 98 105 151 145 110 148 272 185 140 109 86 149 145 111 138 284 190 127 107 95 118 116 94 108 219 129 94 93 101 + 3 +28* + 6 105 +30* 190 106 219 102 149 + 4* -11* + 6* 114p 114 + 7* 106 119 110 121 -32* -36* + 7 -27* 0* +35 - 6* 82 + 4* 61 +23 154 112 61 114 +4 +8 +9 Hotels (1934=100) +13 +11 +14 125 119 119 103 141 135 “ 1* -11* in 118 116p 113 128p 89p 117p 122p 3 2 0 +13 -23 Business liquidations * Source: U. S. Bureau of Labor Statistics. June May June 1941 1941 1940 +16 +15 +12 + 1 +19 +n + 8 + 8 + 7 June 1941 fro m June May June 1941 1941 1940 ......... ......... Per cent change from June 1941 Month Year Aug. 1939 ago ago 90 70 87 84 89 82 83 89 Mo. ago Indexes: 1935-1939=100 Inventories Source: U. S. Department of Commerce. | Not adjusted Per :ent che nge 110 “ 8 p—Preliminary. 121 96 137 r—Revised. BANKING STATISTICS MEMBER BANK RESERVES AND RELATED FACTORS Reporting member banks (000,000’s omitted) July 23, 1941 Assets Commercial loans................. $ Open market paper.............. Ix>ans to brokers, etc........... Other loans to carry secur.. Loans on real estate............. Other loans............................. Changes in Five weeks One year 296 +$10 +$ 75* 9 40 + 1 + 2 25 0 + 30 - 1 0 52 0 + 2 1 0 _ 109 + 3 + ■4* Total loans........................... $ 552 +$13 +$ 91 Government securities........ $ Obligations fully guar’teed. Other securities..................... 415 -$ 1 92 - 9 261 0 +$ 53 + 2 18 Total investments.............. $ 768 +$ 8 +$ 37 Total loans & investments $1,320 +$21 Reserve with F. R. Bank .. 503 - 2 Cash in vault......................... 24 - 1 Balances with other banks . 216 - 1 Other assets—net................. 78 - 1 +$128 + 11 + 4 + 12 2 — Liabilities Demand deposits, adjusted $1,152 +$19 260 - 1 Time deposits........................ U. S. Government deposits 17 + 1 Interbank deposits............... 478 - 1 0 16 - 1 Other liabilities..................... Capital account.................... 218 - 1 +$125 2 — 29 — + 53 0 + 2 4 + Changes in weeks ended— June 25 July 2 July 9 July 16 July 23 Changes in five weeks Sources of funds: Reserve Bank credit extended in District......... Commercial transfers (chiefly interdistrict) . . . Treasury operations................................................ +22.3 + 3.2 -27.3 + 5.2 + 3.0 + 6.1 - 0.6 - 1.4 - 8.0 -0.7 +2.1 +6.8 - 2.2 - 1.4 - 6.2 +24.0 + 5.5 -28.6 Total.......................................................................... - 1.8 +14.3 -10.0 +8.2 - 9.8 + 0.9 + + 4.1 2.7 3.2 0.0 +11.9 - 0.4 + 3.3 - 0.5 - 0.6 5.7 3.7 0.0 -0.6 +8.1 +0.8 -0.1 - 1.2 -10.2 + 1.6 - 0.0 +13.6 -10.9 - 1.2 - 0.6 - 1.8 + 14.3 -10.0 +8.2 - 9.8 + 0.9 Philadelphia Federal Reserve District (Millions of dollars) Uses of funds: Currency demand.................................................... Member bank reserve deposits............................. “Other deposits” at Reserve Bank..................... Other Federal Reserve accounts.......................... Total........................................................................ Member bank reserves (Daily averages: dollar figures in millions) Phila banks: 1941: June 1-15.. June 16-30. . July 1-15.. 1940: July 1-15.. Country banks: 1941: June 1-15. . June 16-30. . July 1-15. . 1940: July 1-15.. Held Re quired Ex cess Ratio of excess to re quired $243.8 242.4 243.1 221.4 $259.6 252.7 246.1 257.6 106% 104 * 101 ” 116 * 206.5 108.3 206.3 108.3 203.6 108.7 189.1 97.4 98.2 98.0 94.9 91.7 91 ” 90 ” 87” 94 * $503.4 495.1 489.2 479.0 Federal Reserve Bank of Phila. (Dollar figures in millions) Changes in— July 23, 1941 Five weeks One year Bills discounted........ $ 0.1 Bills bought............... 0 Industrial advances. 3.6 U. S. securities.......... 171.8 -$ 0.2 0 + 0.2 - 1.3 -$ 0.1 0 + 0.9 - 22.6 Total........................ Note circulation.... Member bk. deposits U. S. general account Foreign bk. deposits Other deposits........... Total reserves........... Reserve ratio............. -$ 1.3 + 15.0 - 10.9 - 14.1 - 4.2 - 1.2 - 38.9 - 1.9% -$21.8 +108.3 + 29.0 + 37.1 + 40.1 + 7.5 +247.7 + 4.4% $175.5 469.4 688.9 69.2 113.0 18.4 1209.8 89.0% * Revised. Page Seven National Summary of Business Conditions Industrial production increased further in June, continuing the rapid advance that began about a year ago. Commodity prices, both in retail and in wholesale markets, rose considerably between the early part of June and the third week of July. INDUSTRIAL PRODUCTION Production Federal Reserve index of physical volume of production, adjusted for seasonal variation, 1935-39 average =100. Subgroups shown are ex pressed in terms of points in the total index. By months, January 1935 to June 1941. WHOLESALE PRICES Bureau of Labor Statistics’ indexes, 1926 =100. “Other” includes commodities other than farm products and foods. By weeks, January 5, 1935 to week ending July 12, 1941. Reflecting the continued advance in industrial activity at a time when output ordinarily declines, the Board’s adjusted index advanced from 150 per cent of the 1935-1939 average in May to 156 in June and preliminary estimates indicate a further rise in July. The current level compares with 104 before the start of the European war and 111 in the spring of 1940, when the current advance in industrial activity began. Further increases in output were reported in June for a considerable number of industries, particularly those associated closely with the defense program, and there were no important declines. As in other recent months, activity in the aircraft, ship building, machinery, and railroad equipment industries rose sharply. Automobile production was maintained at the high level of May, owing mostly to unusually large retail sales. Output of iron and steel and nonferrous metals, already close to capacity, did not show an increase to correspond with the rise in output of finished metal products and official statements indicated growing concern over shortages of numer ous materials. Steel ingot production remained close to 99 per cent of capacity dur ing June, but the rate in the middle of July was slightly lower. For the year to date output of steel has averaged 98 per cent of the rated capacity as of December 1940. Output of textiles and most other nondurable manufactures in June continued at recent advanced levels, which in some instances represent capacity production. Out put of chemicals continued to increase rapidly. Also, there was a sharp rise in rubber consumption, reflecting continued heavy demand for rubber products and the fact that June was the last month before curtailment of rubber consumption by industry was to go into effect and was the month to be used in apportioning July consumption among various manufacturers. Mineral production increased in June, with a marked rise in output of anthracite, some further increase in output of bituminous coal, and a continued advance in crude petroleum production to a new high level. Value of construction contract awards in June continued at the high level reached in May and was nearly two-thirds above a year ago, according to figures of the F. W. Dodge Corporation. Awards for public construction again increased sharply, reflecting continued expansion in the volume of defense construction projects. Private residential building contracts declined somewhat more than seasonally, following an increase in May. Distribution MEMBER BANK RESERVES AND RELATED ITEMS Sales of general merchandise showed little change from May to June. Depart ment stores sales decreased more than seasonally, while rural retail and variety store sales remained at the May level, although a decline is usual at this time of the year. In the early part of July sales at department stores rose somewhat and were 24 per cent higher than a year ago. Loadings of revenue freight increased further in June, reflecting continued expan sion in shipments of coal and miscellaneous merchandise, and by the end of the month were in larger volume than at any time during the seasonal peak last autumn. Commodity Prices Wednesday figures, January 4, 1939 to July 9, 1941. Bank Credit MEMBER BANK RESERVES TOTAL REQUIRE0 RESERVES: iffllSpKfi! EXCESS RESERVES 1940 Wednesday figures, January 2, 1935 to July 9, 1941. Required and excess reserves, but not the total, are partly estimated. Page Eight Wholesale prices of most groups of commodities continued to advance from the early part of June to the middle of July. Prices of foodstuffs showed large increases and there were substantial advances in prices of a number of industrial raw materials and finished products. Following earlier marked advances, prices of hides and cotton gray goods were reduced by governmental action. Retail prices for foods and many other commodities have been rising and in June the cost of living was about 4 per cent higher than four months earlier. Preliminary figures indicate further advances in July. Holdings of United States Government securities by member banks in 101 lead ing cities increased further during June and early July, reflecting in part new offer ings by the Treasury. Commercial loans continued to rise sharply. Notwithstanding the greater volume of bank loans and investments, deposits of city banks declined somewhat over the period, reflecting mainly a growing demand for currency and a building up of Treasury deposits at the Reserve Banks. These developments also resulted in a decrease in the volume of excess reserves, which amounted to about $5,300,000,000 on July 16, compared with $6,900,000,000 a year earlier. United States Government Security Prices United States Government securities advanced further during the latter part of June. Partially tax-exempt 1960-65 bonds on June 26 were at an all-time peak, on a 2.02 yield basis. Since that time they have declined slightly. Taxable bonds gener ally continued to advance to successive new high levels. Yields on Treasury notes showed little change during the latter part of June and the first half of July.
@FedFRASER