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THE BUSINESS REVIEW THIRD FEDERAL ^PHILADELPHIA 7 ... 8 _* RESERVE DISTRICT AUGUST z, i937 FEDERAL RESERVE BANK OF PHILADELPHIA Oo__________________________________________________________________ ]TJ^ica7^i WVtSh Business and Banking Conditions in the United States Activity in most manufacturing in dustries and at mines continued in June at the May level, with allowance for seasonal influences, but the total output was decreased by labor difficul ties in steel mills. In July, production at these mills increased. Production and employment. Vol ume of industrial output, as measured by the Board’s seasonally adjusted index, was 115 per cent of the 1923 1925 average in June as compared with 118 per cent maintained in the preceding three months. The decrease was largely accounted for by the de cline in steel production. Automobile production declined seasonally and lumber output showed little change. There was considerable reduction in activity at shoe factories and at sugar refineries, while textile production was close to the level of other recent months. At mines output continued in about the same volume as in May. Value of construction contracts awarded, which had declined in May, increased considerably in June, accord ing to figures of the F. W. Dodge Corporation. There was a marked rise in contracts for public projects, and awards for private building in creased somewhat, reflecting chiefly a larger volume of contracts for fac tories and for apartments. Factory employment and payrolls declined more than seasonally from the middle of May to the middle of June, largely as a result of strikes in the iron and steel industry. In most other manufacturing industries and also in nonmanufacturing lines changes in employment were chiefly of a sea sonal nature. Agriculture. The July 1 cotton re port of the Department.of Agriculture showed an acreage of 34,192,000, which is larger than in any year since 1933, but considerably smaller than the average of 41,424,000 acres for the five years 1928-1932. Reports on other major crops indicate larger production than last season and about equal to the average for 1928-1932.' Distribution. Distribution of com modities to consumers was maintained in June at the level of other recent months, with allowance for seasonal in fluences. Department store sales showed a seasonal decline and there was little change in mail order busi ness. Sales at variety stores increased somewhat. Department store trade in INDUSTRIAL PRODUCTION DEPARTMEN1 STORE SALES WHOLESALE PRICES Index of physical volume of production, ad justed for seasonal variation. By months, January 1929 to June 1937. Indexes of value of sale?;. By months, January 1929 to June 1937. Index compiled by the United States Bureau of Labor Statistics. By months, 1929 to 1931; by weeks, 1932 to date. Latest figure is for week ending July 17, 1937. the mid-western industrial area in June and in the first half of the year showed larger increases over a year ago than did sales in other parts of the coun try. Freight-car loadings declined some what further in June, reflecting largely a decrease in shipments of miscellane ous freight. Wholesale commodity prices. The general level of wholesale commodity prices, which had declined gradually from the beginning of April to the middle of June, advanced somewhat after that time. Prices of hogs and pork rose considerably and grain prices advanced during most of the period. Steel scrap prices increased sharply MEMBER BANK CREDIT Wednesday figures for reporting member banks in 101 leading cities. September 5, 1934, to July 21, 1937. and prices of tin, zinc, and hides also advanced, while cotton goods and rub ber continued downward. In the past week prices for grains declined and cotton prices also moved lower. Bank credit. In the four-week period ending July 21 the volume of excess reserves of member banks increased from $810,000,000 to $870,000,000, ow ing principally to a decline in the amount of required reserves resulting obligations, following increases at the time of new Treasury note issues at the middle of June, and in holdings of other securities. Loans to brokers and dealers in securities, which in creased in June, declined during the first three weeks of July. Money rates. Open-market rates on Treasury bills and yields on Treasury notes and bonds declined in July to the lowest levels since March. from a decrease in deposits at member banks in leading cities. Commercial loans of reporting mem ber banks continued to increase both in New York City and in other lead ing cities during the five weeks end ing July 21. There was a substantial decline in adjusted demand deposits, mostly at New York City banks. This decline corresponded to decreases in holdings of United States Government Business and Banking Conditions in the Philadelphia Federal Reserve District Industrial activity in the Philadel phia Federal Reserve District has been well sustained at the levels prevailing for several months past. Output of manu factures in June continued at the same rate as in May, while production of coal and crude oil increased. Industrial production as a whole in the first half of this year was 18 per cent larger than in the same period of 1936, de spite interruptions which accompanied industrial disputes. The value of build ing contracts increased substantially during June and was larger than last year. Farm activity and the condition of various crops have measured up to the average of past years and cash in come of farmers, as reported thus far in 1937, has been the largest since 1930. Industrial employment and payrolls in June have been well maintained at slightly higher levels than in May. Pre liminary reports for July indicate that factory employment and payrolls de clined seasonally. The dollar volume of retail and wholesale trade sales in June did not measure up to the usual change but continued larger than last year. Early exceed those of a year ago, reflecting in part a higher rate of business ac tivity. Wholesale prices for manufactured products fluctuated narrowly during June but showed a slight upward trend in the first three weeks of July. The in dex number compiled by the Bureau of Labor Statistics measuring changes in prices of commodities other than farm products and foods on July 24 was 86.3 relative to the 1926 average, compared with 85.9 a month earlier; a year before this index was 79.5 and two years ago it was 77.9. Factory employment in this district in June showed virtually no change from the relatively high levels that pre vailed during April and May. Wage payments registered a decrease of about one per cent in this period but were substantially greater than in June of last year. Preliminary reports for July show seasonal decreases in employment and payrolls. Estimates show that Pennsylvania factories about the middle of June em ployed over 990,000 worker's whose reports for July indicate a seasonal de cline. Other indicators relating to the distribution of goods and services gen erally registered seasonal recessions. Manufacturing. The market for most manufactured goods has slackened fur ther since the middle of last month. This appears to have been especially true of certain heavy iron and steel products including castings and ma chinery and of cotton and woolen tex tiles, hosiery and floor coverings. De mand for many building materials also decreased early in July, after contin uing fairly active for several previous months. Compared with a year before, the volume of sales in most lines other than textiles has been somewhat larger. Unfilled orders quite generally appear to have decreased in recent weeks and for most textile products and some building materials they are smaller than a year earlier. Inventories of finished goods on the whole registered increases during the month under review and currently are larger than last year. Stocks of raw materials, on the other hand, have shown virtually no change of late but WORKING HOURS AND HOURLY EARNINGS PRODUCTION AND PRICES PENNSYLVANIA FACTORIES 1923 -25 AVG.s 106 PERCENT / HOURS » CLNIS a INDUSTRIAL PRODUCTION (PHILA. FED. RES- PISt) V 50 -x V %i U.S. COMMODITY PRICES 60 mm* V• » •* “N 40 (other than farm products AND foods) . U : ✓ EARN NGS PER HOUR (avg.) 1 \ 50 a X " A\ 40 30 H()URS WORK ED PRICES OF RAW MATERIALS AVO. PE R WORKER PE R WEEK 30 20 1932 Page Two 1933 1934 1935 1936 1931 1932 1933 1934 1935 1936 1937 wages amounted to approximately $26, 400,000 a week. This was an increase over a year ago of 14 per cent in em ployment and 35 per cent in wage pay ments. The index of employment con tinued at about 92 per cent of the 1923 25 average and that of payrolls was 103. Manufacturing plants in Delaware reported a gain of 2 per cent in em ployment from May to June but, as in the case of Pennsylvania, a small de cline occurred in the amount of wages disbursed. In southern New Jersey about one per cent fewer workers were employed in June than in May but pay rolls increased 2 per cent. Output of factory products showed virtually no change from May to June, despite industrial disputes that were quite prevalent during the greater part of the latter month. This bank’s index of productive activity, after adjustment for seasonal variation, was 95 per cent of the 1923-25 average in June, or the same as a month before; in April this index was 97 and a year ago it was 84. During the first half of 1937 the rate of manufacturing output was 20 per cent higher than a year before and exceeded that of any like period since 1930. Industries producing such durable goods as iron and steel castings, elec trical apparatus and automobile parts and bodies showed the greatest im provement in June as compared with May. Production of pig iron and motor vehicles declined sharply. Activity also declined in the case of some of the building materials. Production of such non-durable goods as silk and cotton manufactures, and hosiery continued at about the same rate as in May, although declines are usual. The output of woolen and worsted goods, underwear, and carpets, and activity in the sugar refining and meat packing industries were substan tially below the May levels. Electric power output by eight cen tral stations increased more than it usually does from May to June and over the first half of the current year was 10 per cent greater than in the same interval of 1937. Total sales of electricity by ten systems expanded in June, following a fairly large decline a month before. They have been 12 per cent greater thus far this year than last. Consumption of electrical energy by industries decreased by a larger per centage than usual from May to June Business Indicators Philadelphia Federal Reserve District Index numbers: percentages of the 1923-1925 average as 100 Adjusted for seasonal variation Adjusted indexes allow for the usual seasonal change in activity. Unadjusted indexes reflect merely the actual change which may or may not June Apr. May June be typical. 1936 1937 1937 1937 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...................... Coal mining....................................... Anthracite..................................... Bituminous.................................... Crude oil............................................ Electric power Output............................................ Sales, total!................................. . Sales to industries!..................... Not adjusted Per cent change June 1937 from 1937 from June Apr. May June 1936 1937 1937 1937 6 Month Year ago ago mos. 1936 + 12 +12 +19 +20 87 r 100 96 84 97 95 78 r 97 93 90 98 96 88 r 112 104 86 95 93 75 85 88 81 80 84 88 112 102 41r 54 52 .116 125 133 122 143 158r 86 96 96 72 r 94 64 72 r 97 63 73 70 76 404 467 466 97p 95p 93p 96p 109 90p 87 8lp 97 47 130p 148p 98 75p 74p 79 481 + + + + - + 16 +17 + 4 + 3 +14 + 3 + 4 + 7 + 19 229 218 156 253 242 175 + 3 + 2 - 3 + 11 + 11 +12 +10 218 +12 212 +14 157 249 230 248 228 180 184 241 235 176 0* - 1* - 1* + r + r +14* +35* +19* +16* 81 +39* 76 +30* 81 92 92 104 104 99 97 92 103 97 +11* +12* 114 +30* 149 124 125 189 190 127 193 +17 +13 +12 + 9 +33 +15 56 +52 34 + 7 62 - 5 104 +45 16 -26 60 - 2 558 60 54 40 43 62 61 109 72 31 22 46 30 630 595 61 46 72 76 22 33 684 254 247 241 237 178 181 1 0 0 0 53 + 5 +16 +33 +13 +39 15 24 + 1 + 9 + 6 +12 + 14 +13 45 +14 + 18 + 14 + +246 - 1 - 3 - 5 -10 - 2 - 6 +22 + 1 85 84 99 95 95 94 96p 94p 89 r 84 75 77 96 45r 117 119 85 62 r 62r 65 420 110 92 90 78 102 53 127 142 97 97 101 63 481 104 90 91 82 99 54 136 144 r 97 64 63 68 485 110 87p 88 78p 104 51 131p 144p 97 65p 65p 69 500 +18 - 2 - 7 +20 +15 Employment and wages—Pa. Factory—Wage earners.................. Payrolls.......................................... Man-hours (1927-28=100)___ General (1932=100) Employment................................. Payrolls.......................................... +29* Building and real estate Contracts awarded!—total........... Residential!................................... Non-reside ntial!.......................... Public works and utilities!. .. . Permits for building—17 cities... Real estate deeds—Philadelphia . Writs for Sheriff sales—Phila....... 49 29 53 92 13 55 558 51 35 56 116 45 34 54 61 22 19 47 28 600 566 53 38 61 67 18 30 684 +16 -27 +39 -45 +23 +10 - 9 + 9 +21 Distribution Retail trade —sales.................... stocks................ Wholesale trade—sales................... stocks................ Life insurance sales... .................. New passenger auto, registrations Hotels—Occupancy.......................... Income, total.................... Freight car loadings—total........... . Merchandise and miscellaneous, Coal................................................. 77 78 86 81 82 87 106 105 67 r 79 76 97 101 97 68 81p 80p 103p 77 101 77 65 84 65 r + *7 101 177 + 6* 127 r — 2* -13* + 5* 145 r +15 +21 69 +14 +23 71 +14 + 10 56 + 5 + 19 +18 + 14 + 4 2* - 4* - -0 - 71 + +9 +20 79 83 98 79 113 174 137 148 79 83 71 89 82 97 75 104 193 129 131 81 83 63 82p 77p 98p 75 105 126p 126p 80 81 64 Business liquidations Number............................. Amount of liabilities___ -19* +70* -37* -17* -19* 76 + 7* 44 61 18 59 22 48 37 +13 +15 Payment of accounts Check payments.................... Rate of collections (actual) Retail trade........................ Wholesale trade................. 81 88 - 1 +5 - 84 89 97 96 34 74 32 79 33 75 33 81 + 9* 79 +18* 78 + 6* 80 + 8* 79 + 6* 83 + 6* 86 + 6* 81 88 92 85 86 86 88 82 87 90 84 86 86 89 85 87 88 85 86 86 89 84 2 +9 Prices—United States Wholesale (1926 =100). — + — — Farm products............... Foods............................... Other commodities.... Retail food....................... Philadelphia................... Scranton.......................... (In millions of dollars) 0* 1* 1* 0* o* 0* o* +10* +13* + 6* + + + + 9* 3* 3* 5* % change from June 1936 Mar. 1937 Apr. 1937 May 1937 June 1937 2 218 422 73 .8 Month ago Year ago 218 384 73 .0 0 -9 -1 +18 +39 - 1 460 716 1,420 16.2 +i -2 -3 -5 + 3 - 2 + 3 +49 Banking and credit Federal Reserve Bank $ (a) Other bills and securities............. 184 Member bank reserves................. 276 Reserve ratio (per cent).............. 73 .5 Reporting member banks Loans................................................. $ 446 Investments..................................... 730 Deposits (b).................................... 1,374 Bankers’ acceptances outstanding. 10 .9 $ S 1 200 390 76.1 $ 447 726 1,429 17.2 $ 1 214 430 75 .0 $ 450 719 1,479 i7 .2 $ 454 730 1,459 17 .0 $ * Computed from data unadjusted for seasonal variation. p—Preliminary. r—Revised. ! 3-month moving daily average centered at 3rd month. ! Not included in production index, (a) Less than $500,000. (b) Less cash items in process of collection. Page Three SALES OF ELECTRIC POWER OUTPUT OF MANUFACTURES BY CLASSES PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT CONSUMERS GOODS TOTAL DURABLE GOODS 1932 1933 934 TO INDUSTRIES 1935 but also was substantially greater than a year before. Coal and other fuels. Anthracite out put increased in June, following a sharp drop a month before, and was about 4 per cent greater than a year ago. Although shipments fell off some what from the May level, they were substantially larger than one and two years earlier. In the first six months of 1937 production showed a decline of nearly 7 per cent and shipments about one per cent, as compared with a year earlier; both were the smallest for that interval since 1933, the low point of the depression. Per cent change from (Output and shipment figures are daily averages) Anthracite Production............... tons Shipments................. tons Prices.......... (1926-100) Employment............. No. Bituminous Production................ tons Shipments........ No. cars Prices.......... (1926-100) Employment............. No. Coke Prod.. . .(1923-25=100) Prices.......... (1926-100) Gas and fuel oil Prod.. . .(1923-25=100) Prices.......... (1926-100) 1937 Month Year ago ago 172,000 168,348 74 .5 98,381 +2 -0 +0 +0 + + +15 - 3 - 0 330,192 22,270 98.5 129,221 +1 +1 0 -1 + + + + 123.9 105 .0 -7 -0 + 9 +12 122 .7* 66 .3 -4 +3 + 2 - 8 7 7 2 3 1936 1932 1937 increases over a year earlier of 20 and 8 per cent, respectively, and were the largest since 1930. Output of by-product coke decreased in June but was the greatest for that month since 1929. Production of gas and fuel oils showed some decline as compared with May and was consider ably below the January peak when it was the largest in recent years. In the first six months this year coke output was 25 per cent greater and that of gas and fuel oils about one per cent smaller than a year before. Building. The value of building con tracts awarded in this district during June amounted to $16,500,000, an in crease of 10 per cent as compared with May and a gain of 15 per cent over a year ago. The improvement in the month reflected a larger dollar volume of awards for all classes of construction except family houses and factories. Contracts let for one and two-family dwellings, however, were but slightly smaller than in May and were 42 per cent greater than a year earlier. In the first six months this year awards of building contracts totaled Sources: Bureau of Mines and Bureau of Labor Statistics. * Estimated. Latest available reports indicate that demand for Pennsylvania bituminous coal has been somewhat less active than was the case early this year and during the latter part of 1936. Tak ings by manufacturing plants especially appear to have decreased in recent weeks. Production and shipments showed some expansion in June fol lowing an increase in May from the relatively low level of April. In the first six months of 1937 they registered Digitized Page for FRASER Four 1933 Building contracts Philadelphia Federal Reserve District Per cent change 1937 1937 (000’s From from omitted) month 6 mos. ago 1936 + 3 + 52 1,094 1,179 4,757 993 +84 - 1 + 9 +11 -39 +34 +10 + 188 + 44 + 7 + 7 +200 - 16 - 11 $13,157 + 7 + 23 3,381 +26 - Grand total............... . $16,538 +10 + 15 Apts, and hotels............. $ 5,134 385 4,749 8,023 Public works and utilities. Source: F. W. Dodge Corporation. 5 1934 1935 1936 1937 $88,500,000 and were the greatest for that interval since 1931. In compari son with the pre-depression years, 1923-25, however, this contract total was only about 57 per cent as large; it was but 32 per cent of the record high established in 1928. The most pronounced increases over the same period in 1936 and earlier years have occurred in the value of contracts let for residential and factory buildings. Current reports indicate that while the demand for most building mate rials has slackened somewhat it con tinues more active than a year ago. As shown in part by employment, ac tivity at Pennsylvania plants produc ing important materials used in build ing and construction was substantially higher in June this year than last. In these establishments the June index of wage earners was 79 per cent of the 1923-25 average, compared with 68 a year before and a depression low of 39. During the past four months whole sale prices of building materials in the country as a whole have fluctuated narrowly at the highest levels since early 1927. About the middle of July the index number compiled by the Bu reau of Labor Statistics was nearly 97 per cent of the 1926 average or 12 per cent higher than a year earlier. Agriculture. The agricultural situ ation in this district as a whole con tinues to show improvement over 1936 and earlier years. Sales of farm prod ucts thus far have been the largest in several years and the condition of crops compares favorably with a year ago and in some cases appears to be above average. Weather conditions lately have stim ulated growth, although frequent rains have interfered somewhat with such VALUE OF RESIDENTIAL BUILDING CONTRACTS PERCENT MERCANTILE TRADE PHILADELPHIA FEDERAL RESERVE DISTRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT 100 19 23 -25AVG.= I00 r-r'' 100 WHOLESALE DOLLAR ALES APARTMENTS _ AND HOTELS y&l>aa 80 60 ONE AND TWO FAMILY HOUSES . JJ/Si RETAIL D DLLAR SALES 40 TOTAL 20 1932 1933 1934 1935 seasonal farming operations as haying, threshing and cultivating. Grain in the shocks was damaged to some extent in certain sections and many fields be came weedy. Truck and vegetable crops, however, have grown rapidly and the condition of pastures and meadows has improved considerably since early this season. Reports from the Department of Agriculture indicate that yields of im portant field crops with the exception of tobacco will be substantially larger this year than last. These estimates show this to be especially true in the case of hay, the indicated yield of which is about 30 per cent greater than a year ago. Wholesale prices of farm products in the country as a whole increased ap preciably from the middle of June to the middle of July, following a gradual decline from the year’s high point reached early in April. In the latest week, however, there was a decline. On July 24 the wholesale price index of the Bureau of Labor Statistics was 88.4, relative to the 1926 average, as compared with 91.1 on July 17, 87.4 on June 19, and 81.4 a year ago. Distribution, trade and service. Retail trade sales by department, ap parel, shoe and credit stores were 5 per cent larger in June this year than last and in the first six months showed a gain of about 9 per cent over last year. The value of June sales by de partment stores exceeded those of a year earlier by 5 per cent at Philadel phia establishments and 8 per cent else where in this district. Total dollar sales decreased more sharply than usual from May to June; consequently this bank’s seasonally adjusted index dropped from 86 to 81 per cent of the 1937 Source'. E W. Dodge Corp. 0 ADJUSTtO FOR SEASONAL VAR ATlON 1932 1933 1923-25 average. Declines in sales oc curred in all reporting lines except men’s apparel, which were considera bly larger than in May, particularly at Philadelphia stores. Wholesale trade sales in June were 18 per cent larger than in the same month last year and in the first half of 1937 exceeded those of a year be fore by 20 per cent. An increase of about one per cent from May to June in the total dollar sales of eight im portant branches was a somewhat smaller gain than ordinarily occurs in this interval; consequently our index, after adjustment for seasonal variation, was 103 in June as compared with 105 in May. Sales of groceries, shoes, drugs and jewelry were maintained above their customary level in June but those of electrical supplies, dry goods, paper and hardware registered declines. In retail lines inventories decreased by a somewhat larger percentage than usual during June but they showed vir tually no change at wholesale. At the end of the month stocks in these chan nels of trade exceeded those of a year earlier by 19 and 14 per cent, respec tively. During the first half of 1937 stock turnover at retail was less rapid than a year before but it was much more active in wholesale lines. Sales of new passenger automobiles in this district showed some decrease in June, following a marked upward trend since early this year. The num ber of new units sold in the first six months of 1937 was substantially greater than a year before and the largest on record for that interval. In the country as a whole manufacturers’ sales of passenger cars and commercial 1934 1935 1936 1937' vehicles declined further during June. As in the case of this district, how ever, comparisons with 1936 and ear lier years continued favorable. Distribution of commodities by rail road freight in this section was nearly as large in June as in May. Increases in loadings of coal, coke, livestock and forest products were offset by declines in the movement of merchandise and miscellaneous commodities and grain and by a smaller than seasonal gain in ore shipments. The volume of rail freight consisting mainly of manufac tures originating in the Philadelphia in dustrial area declined further in June, continuing a downward movement since March. In the first half of this year, however, the amount of freight handled locally exceeded that of a year before by nearly 12 per cent and was the largest for that interval since 1931. Activity of non-resort commercial hotels slackened further in June, as in dicated by a decline in room occupancy and a decrease in revenue from sources other than guest rooms. In the first six months of 1937 room occupancy was 6 per cent and total revenue 5 per cent greater than a year before. Other de tails follow: Hotel business Philadelphia Federal Reserve District June per cent change from 1937 Month ago Year ago 6 mos. 1936 Capacity............................. Room occupancy............. Per cent of capacity used: June 1937.......... 59 .2 May 1937.......... 59.9 June 1936 ......... 59 .4 Income from: Guest rooms.................. Food................................ Other sources................ 0 - 2 + 0 - 2 + 6 +1 - 9 - 7 -12 - 9 -20 + 7 + 5 + 2 Total revenue........... - 4 -13 + 5 Page Five Shortly after the middle of June the reserves of member banks declined to 368 mil lions, the lowest since February. Over the balance of June the trend was gen erally upward and in the first three weeks of July reserves averaged $387, 000,000, a level approximately $70, 000,000 higher than a year ago. Recent changes follow: Banking conditions. (Averages of daily figures; dollar figures in millions) 1937 June 1-15 June 16-30 1936 July 1-15 July 1-15 Reserve city banks Reserves at Fed eral ReserveBank ................... $241.0 #237.1 #241.3 #210.2 Required reserves. 198.8 200.4 200.9 99.9 Excess reserves. . . 40.4 110.3 42.2 36.7 Ratio of excess to required............. 21% 20% 110% 18% Country banks Reserves at Fed eral Reserve Bank................... $145.8 $144.1 $146.2 #102.6 Required reserves. 114.1 115.5 116.3 53.9 Excess reserves. .. 31.7 28.6 29.9 48.7 Ratio of excess to required............. 28% 25% 26% 90% Outstanding credit of the Federal Reserve Bank of Philadelphia has changed little in recent weeks. Thus far in July bills discounted for mem ber banks have averaged little over $1,000,000 and industrial advances show a slight decline. This bank’s participation in Federal Reserve Sys tem holdings of United States secu rities has remained at $213,300,000 for more than two months. The increase of $11,000,000 in the reserve balances of member banks dur ing the four weeks ended July 21 reflected chiefly funds gained through the settlements in the last week of June, when reporting bank loans and investments declined. The period as a whole shows a favorable balance of about $15,000,000 in commercial and financial transactions with other dis tricts. Other changes tending to sus tain reserves were of small amount. The only offsetting factors were an excess of local Treasury receipts over disbursements of $2,300,000 and a rise of $3,200,000 in currency demand. The increased call for currency prior to July 4 was not exceptionally large. Deposits of reporting member banks were at the lowest point of 1937 on June 16, when they totaled $1,396, 000,000. The rise to $1,443,000,000 on the 23rd was followed by little change in the last week of June; but by July 21 deposits had declined to $1,420,Page Six Federal Reserve Bank of Philadelphia (Dollar figures in millions) July 21, 1937 Bills discounted......... $ 1.1 Bills bought................ 0.3 Industrial advances. . 3.9 United States securities........................ 213.3 Total bills and securities................. $218 .6 Federal res. note cirdilation.................... 313 .6 Member bank reserve deposits.................... 389.1 U. S. Treasurer— general account___ 3.2 Foreign bank deposits........................ 15.9 Other deposits............ 9.2 Total reserves............. 533 .5 Reserve ratio.............. 73 .0% Changes in— Four weeks One year Reporting member (000,000’s omitted) -$0.1 - 0.0 - 0.1 +$0 .9 + 0.0 - 1 .2 Assets Commercial, industrial and agricultural loans: 0 + 2.1 Otherwise secured and unsecured....................... Open market paper............. Loans to brokers and dealers in securities................. Other loans to purchase or -SO .2 +*1.8 + 3.0 +16.5 +10.9 +69.6 -6.7 -16.5 + + + +10.3 + 7.6 +83 .9 + 3.1% 0.1 0.0 6.3 0 .2% 000,000. The decrease of $23,000,000 in the last four weeks reflected chiefly a falling off in demand deposits and to a lesser extent withdrawals by the Treasury; time and interbank deposits increased. The loss in deposits was more than compensated for by de creases of $15,000,000 in earning as sets and $21,000,000 in funds held with correspondents. Consequently, reserves with the Federal Reserve Bank increased $10,000,000. The principal changes in loans and investments were declines of $11, 000,000 in loans to brokers and dealers in securities and $13,000,000 in hold ings of direct obligations of the United States Government, most of which occurred in the last week of June. Small increases were reported in a number of other items, the largest be ing a rise of $3,000,000 in commercial loans. Such loans have moved irregu larly upward in recent months; the trend thus far this year has been quite similar to that in 1936. Although total deposits at the report ing banks on July 21 were $90,000,000 smaller than at the peak on January 6, they were only $8,000,000 less than a year ago. In the course of the year July 21, 1937 * Four weeks One year 163 26 +S 3 + 1 * * 25 - 11 * 43 -$ 8 39 60 2 Other loans: On securities...................... Otherwise secured and unsecured....................... Total loans......................... $ United States Government securities............................. Obligations fully guar, by U. S. Government........... Other securities..................... Changes in— - 48 + 1 57 + 1 3 * * 463 -$ 5 +$15 331 - 13t + 99 284 + + U 2 9 - 6 - 29 Total loans and investments............................... $1,177 Reserve with Federal Reserve Bank......................... 255 Cash in vault......................... 16 Balances with other banks. 132 87 —$15 -$11 + 10 - 1 - 21 - 2 + 30 + i - 23 Liabilities Demand deposits, adjusted. $ Time deposits........................ U. 8. Government deposits. Interbank deposits............... 837 285 18 280 —$33 + 3 - 5 + 12 +$74 + 9 - 53 - 38 Other liabilities..................... 20 227 - + 6 1 6 * Comparable figures not yet available, t Revised. loans have increased and there has been an expansion of $30,000,000 in reserve balances, but security holdings and balances with correspondents have fallen off. Outstanding acceptances of member banks in this district declined about $1,000,000 in the second quarter of 1937. The total of $16,200,000 remain ing at the end of June, however, was $5,300,000 greater than a year ago, re flecting gains in a number of classifi cations. The largest were increases of $3,200,000 in import bills, which con stitute about two-thirds of the total out standing, and over $1,200,000 in those covering warehouse credits. MEMBER BANK RESERVES AND RELATED FACTORS Philadelphia Federal Reserve District (Millions of dollars) June 30 Changes in weeks ending— July 7 July 14 July 21p Changes in four weeks Sources of funds: Reserve bank credit extended in district............... Commercial transfers (chiefly interdistrict).......... Treasury operations..................................................... + 0.1 +15 .9 - 1 .1 +0 .5 +9 .7 -4 .3 +1.5 -8.5 +1.3 -1.7 -1.5 + 1.8 + 0.4 + 15.6 - 2.3 Total......... .. ................................................................ +14.9 +5 .9 -5 .7 -1.4 +13.7 Uses of funds: Currency demand......................................................... Member bank reserve deposits................................. “Other deposits” at reserve bank........................... Unexpended capital funds.......................................... + 2.9 +12.3 + 0.0 - 0.3 +5 .0 +1.0 -0.1 -0.0 -2.9 -3.0 +0 .3 -0.1 -1.8 +0 .6 -0.2 +0.0 + 3.2 +10.9 + 0.0 - 0.4 Total............................................................................. +14.9 +5.9 -5.7 -1.4 +13.7 p—Preliminary. Employment and Payrolls in Pennsylvania CURRENCY DEMAND PHILADELPHIA FEDERAL RESERVE DISTRICT (Changes cumulated from Jan.1,1932) MILLIONS MILLIONS (All figures are rounded from original data) + 100 - Manufacturing Indexes 1937 Employment* Payrolls* (Indexes are percentages of the 1923-25 average Per cent Per cent taken as 100. Total and group indexes are weighted June change from June changefrom 1937 1937 proportionately.) index June May index June May 1936 1937 1936 1937 1936 All manufacturing.......... JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT. OCT. NOV DEC. DEPOSITS REPORTING MEMBER BANKS PHILA. FED. RES. DISTRICT MILLIONS $ 92 92 130 72 101 98 113 103 92 69 97 94 100 95 + 14 - 0 Iron, steel and products. Non-ferrous metal prods. Transportation equip.. . . Textiles and clothing.... Textiles........................... Clothing.......................... Food products................... Stone, clay and glass.... Lumber products............. Chemicals and products. Leather and products. . . Paper and printing.......... Printing........................... 103 +26 + 3 122 +52 159 +28 72 +33 90 + 8 89 + 9 94 108 +12 98 +42 65 +24 110 +29 93 +29 104 +20 99 +17 Cigars and tobacco. . . Rubber tires, goods. . . Musical instruments. . 67 89 + 2 +10 + 7 54 +11 - 4 +20 + + + 4 - 1 - 4 6 - 1 2 -11 2 +1 +16 - 0 +10 + 0 +11 - 1 + 9 - 1 + 9 + 0 + 8 + 0 * Figures from 2,319 plants. + 1 - 4 - 1 63 97 53 +35 Employehours f June 1937 per cent change from June May 1936 1937 -1 + 19 -0 +24 -1 +10 +0 +22 -5 + 9 -4 +11 -7 +i + 1 +27 +2 +n -1 +12 +4 +21 +0 +13 +1 +14 -0 +2 +15 +16 +27 + 6 - 2 +19 -6 -4 -1 -0 -2 +i -5 -4 -8 -1 -2 +2 -2 +4 -1 -0 +3 -6 -1 f Figures from 2,071 plants. DEMAND (adjusted) 900 0ry General Index Numbers 800 Covering twelve branches of trade and industry 700 INTERBANK (Indexes are percentages of the 1932 average taken as 100. In dividual indexes are combined proportionately into general in dex number.) 300 --------------- -- —7'200 100 TIME General index (weighted)___ US. GOVERN MENT 0 1936 1937 1938 Percentage change—June 1937 from June 1936 City areas* Allentown.............. Altoona.................. Harrisburg............ Johnstown............. Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton.................. Wilkes-Barre.... Wilmington.......... Manufacturing Employ ment Wage payments Building permits (value) Debits + 17 + 2 +17 +41 +15 +47 - 3 +S1 +42 +39 +27 +35 +19 +27 +21 + 19 +36 +33 + 184 + 82 - 20 - 76 - 17 + 95 - 18 - 68 + 91 - 71 - 69 - 49 +138 +14 + 11 +19 +20 +22 + 7 +17 - 1 - 6 - 7 — 2 +47 +16 +n +n +13 +12 + 9 + 7 +23 +n 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.................. Employment June 1937 index 127 145 83 122 97 127 159 95 123 117 111 110 117 Payrolls Per cent change from June 1936 May 1937 +n + 14 - 0 + 3 +24 +ii - 3 + 4 + 6 + 0 + 3 +11 + 9 +i -0 +0 -1 +0 +2 +0 +1 +3 +0 +0 +5 +8 June 1937 index 193 251 95 222 123 265 177 106 136 118 120 131 149 Per cent change from June 1936 May 1937 +29 +35 +21 +24 +32 +32 +n + 8 +14 +n + 7 +21 + 19 + i - 1 +15 + 9 + 7 - 1 + 1 + 3 + 3 + 0 - 2 + 8 + 8 Retail trade sales INDUSTRIAL EMPLOYMENT AND PAYROLLS +13 + 6 + 3 -12 +23 PENNSYLVANIA 12 MANUFACTURING AND NON-MANUFACTURING INDUSTRIES AND SERVICES PERCENT + 6 +4 + 18 +10 + 7 PAYROLLS +12 June 1937 from May 1937 Allentown............. Altoona.................. Harrisburg............ Johnstown............ Lancaster.............. Philadelphia......... Reading................. Scranton................ Trenton................. Wilkes-Barre. . . . Wilmington.......... Y ork....................... + + + + ~ — + - 0 1 1 1 1 3 1 0 0 0 0 1 4 - 3 + 0 -23 - 1 + 4 - 4 + 6 + 1 + 2 + 1 - 0 - 3 + 91 - 5 - 56 - 61 - 34 + 2 - 52 - 65 +318 - 27 - 59 +116 +125 + 3 + 6 + 6 + 0 + 1 - 2 + 2 - 1 + 3 - 2 + 2 +54 + 2 - 8 -23 -12 -16 -10 - 3 -15 -18 + 3 -11 EMPLOYMENT + 4 1932 1933 1934 1935 1936 1937 * Area not restricted to the corporate limits of cities given here. Page Seven Index numbers of individual lines of trade and manufacture OUTPUT OF MANUFACTURES PHILADELPHIA FEDERAL RESERVE DISTRICT ADJUSTED TOR SEASONAL VARIATION PERCENT IS23-2SAVG.I00 STEEL IOO 75 Philadelphia Federal Reserve District 50 25 Index numbers: percentages of the 1923-1925 average as 100 O LOCOMOT VES AND CARS Adjusted for seasonal variation seasonal change in activity. 75 Not adjusted 50 Per cent change 25 Unadj usted indexes reflect merely the actual change which may or may not June Apr. May June 1936 1937 1937 1937 be typical. June 1937 from Month Year ago ago 1937 from 6 mos. 1936 June Apr. May June 1936 1937 1937 1937 O 125 IOO Retail trade Sales 77 71 70 89 76r 91 r Stocks of goods 68 53 71 100 68 81 r 81p 75p 85 98 79p 88p - 6 - 6 + 5 - 7 -15 - 7 + 5 + 6 +21 +10 + 4 - 3 82 80p 81 62 62 60p 77 91 88 106 111 110 77 73 71 108 106 loop - 2 +19 +14 +24 +10 + 5 +30 78 86 68 80 67 80 92 105 68 93 104 94 - 3 4 1 3 0 + 9 + 8 + 13 + 12 + 0 + 16 77 71 75 87 90 r 86 r 79 89 69 80 64 77 108 108 74 110 100 99 82p 75p 91 95 94p 83p 65 51 67 89 66 79 r 83 82 77p 64 62 58p 82 91 84 114 112 98 79 76 70 108 103 103p 75 - 5* 1.90 2.00 Wholesale trade Sales . 50 106 47 105 67 145 129 64 77 95 105 55 108 59 172 118 63 59 93 103p 57 109 57 148p 127 63 59 90 - 1 + 5 + 1 - 4 -14 + 7 - 0 + o - 3 +18 - 3 + 8 +20 +51 + 8 +13 +10 +23 + + + + + + + + 20 84 1 51 11 98 r 31 43 r 63 80 r 9 119 19 58 33 45 25 70 98 97 98p 50 54 49 107 108 105 58 55 52 133 131 121p 119 117 129 66 69 65 50 49 49 95 92 86 WOOLENS AND WORS TEDS IOO A ; J\ -J v\A r 25 O HOSIERY IOO 75 87 59 102r 47 r 98 r 117 55 54 73 \Aa y-H/VyAP 125 125 Rate of stock turnover ____A_______ SILK 150 ArU J V^l V 50 CEMENT 100 75 ____________ 50 A. jOsA r V aAv 25 O LUMB R PRODUCT S Stocks of goods 75 67 r 20 40 r 106r 72r 66 53 62 79 36 52 158 79 79 54 65 76 77 30 37 51 50 124 120 81 82 83 79 48 49 68 66 + 1 +25 - 2 - 3 + 1 - 5 + 2 - 3 65r 19 40 r 104 r 65r 68 58 62 + 14 +86 +24 +14 +15 +19 - 8 + 6 79 75 75 36 29 35 52 50 50 155 118 117 79 77 75 84 86 81 52 51 53 65 68 66 50 25 . O PAPER AND WOOD P ULP IOO 75 -----------— 50 Rate of stock turnover Output of manufactures Slaughtering, meat packing............ + 13* 2.84 3.22 1 25 SHOES 225 53 82 84 r 93 104 r 12 60 32 240 88 78 50 123 105 149 52 r 45 32 73 80 102 101 88 91 122 101 140 116 25 26 68 73 45r 247 250 101 98 76 80 63 65 152 158 106 110 160 148 69 62 67 67 r 37 39 r 78 42 37 43 32 + 106 + 19 +44 + 50 + 2 + 15 +13 + 21 - 8 + 9 +34 + 36 - 9 +16 + 39 + 3 + 7 + 5 - 6 - 6 + 10 -19 - 4 + 33 - 5 +41 + 59 - 8 +ii + 33 — o* + 5* + 3* - 3 92 89 - 7 + 10 -39 109 67 -10 + 2 66 67p + 1 - 4 + 7 - 5 101 95 + 9 + ii 76 77 +1 +14 + 15 100 102 +1 + 14 + 14 181 r 181 - 0 +36 + 30 136 117p -13 + 5 + 4 +22 + 16 93 92 - 1 + 3 +16 + 19 98 r 101 170 163p - 4 + 10 + 9 - 4 + 9 + 25 128 124 96 74 70 87 68 90 133 111 75 87 148 114 102 74 65 110 76 100 167 121 94 95 152 129 73 102 100 120 126 23 76 46 244 99 72 67 143 113 140 50 64 36 - 9 + i + 10 + 19 + 9 -13 + 4 + 1 - 2 + 2 -10 + 4 +38 +24 +20 +30 +22 +85 +27 + + + + + 50 84 83r 96 104r 15 60 33 237 83 74 48 118 103 149 62 r 47 33 90 91 79 50 95 67 89 126 113 75 89 149 114 83 107 91 125 122 32 74 47 r 251 99 70 143 106 157 68 70 35 88 100 96 loo 77 102 167 117 95 100 152 134 84 70 106 104 94 99 105 125 107 126 33 28 77 76 44 r 47 257 242 94 94 75 69 64 64 153 137 110 110 149 140 70 60 71r 66 36 36 94 r 94 92 85 134 71 50 48p 98 103 76 76 101 101 165r 172 124 119p 94 92 104r 103 170 164p 133 124 200 175 150 125 /v AJ\li-A/Sl IOO 75 LEATHER -GOAT AND KID________ 150 125 IOO TVn/v F PETROLEUM 200 ---a pfuy REFINING 175 150 V W+CvJV 125 IOO CIGARS 125 IOO V'-v A ■'v/'y-a/ /W 75 50 * Computed from data unadjusted for seasonal variation. Page Eight p—Preliminary. r—Revised. 1933 1934 1935 1936 1937 ■
@FedFRASER