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THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT DECEMBER i, 1930 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Financial Conditions in the United States Volume o f industrial production and factory employment declined in Octo ber, and there was a further down ward movement o f commodity prices. Volume o f sales by department stores increased by more than the usual seasonal amount. There was a con siderable inflow o f gold from South America and the Orient, and a further slight easing o f money rates. Production and em ploym ent. In dustrial production, including both factories and mines, decreased by about 3 per cent in October, according to the Federal Reserve Board’s index, which makes allowance for usual sea sonal changes. This decline reflected chiefly a further decrease in output of steel ingots, contrary to the usual sea sonal movement, and a larger than seasonal decline in the output o f auto mobiles. Output in the shoe industry was also curtailed. Consumption o f cotton by domestic mills showed a fur ther increase o f slightly more than the usual seasonal amount, and stocks of cotton cloth were further reduced; in creased activity was also reported for the silk industry. Output o f coal was in substantially larger volume than in September, while production o f cop per and petroleum declined. Number of workers employed showed a decrease for the month in foundries and in the automobile, ma chine tool, woolen, and shoe industries, while increases were reported in num ber o f persons employed in the pro duction o f silk goods, hosiery, and radios. Employment at coal mines increased considerably, partly in re sponse to seasonal influences. Value o f contracts for residential building reported by the F. W . Dodge Corporation, which had shown a growth in September, increased fur ther in October, but by an amount smaller than is usual for that month. Contracts for public works and utili ties also increased somewhat, reflect ing a larger volume o f awards for pipe lines. Owing to a substantial de crease in contracts for industrial building, however, there was little change in the total value o f building contracts awarded. Indexes o f th e U n ited S tates B ureau of Labor Statistics (1926 = 1 0 0 , base ad opted b y B u reau ). L a te st figures O ctober, fa r m pro d u cts 82.6, oods 88.6, oth er c o m m o d itie s 81.5. Index n u m b e rs o f fa ctory e m p lo y m e n t an d payrolls, w ith o u t a d ju s tm e n t for seasonal variations (1923 1925 average = 1 0 0 ). L a te s t figures O ctob er, e m p lo y m e n t 84.3, payrolls 80.8. M o n th ly averages of w eekly figures for rep ort ing m e m b e r b an k s in leadin g cities. L a te st figures are averages o f first tw o w eeks in N ovem ber. Volume o f distribution o f commodities by rail showed a de cline from September to October. Re tail trade, however, as indicated by sales o f department stores, increased by considerably more than the seasonal amount, according to preliminary re ports to the Federal Reserve System. Distribution. Wholesale prices. The general level of wholesale prices as measured by the Bureau o f Labor Statistics index de clined in October, and the decline con- >EB CENT_____________________________________________________ PER CENT IN D U S T R IA L PRODUCTION variations (1923 1925 ig u re O ctober, 88. average = 1 0 0 ). L a te st Page One tinued in the first half o f November. Further decreases in the prices of many agricultural products, including grains, livestock and meats, were ac companied by reduction in the prices o f hides, tin, petroleum and gasoline, while sugar and copper advanced. The price o f cotton rose considerably at the end o f October from the low level pre vailing early in the month. Bank credit. Total volume o f. credit at reporting member banks in leading cities showed relatively little change for the four-week period ending N o vember 12. Loans on securities de clined further by $350,000,000, reflect ing reductions in loans to brokers and dealers in securities, while all other loans increased by $150,000,000, partly on account o f purchases o f acceptances by the member banks. The banks also increased their holdings o f invest ments. The volume o f reserve bank credit in use showed little change be tween the middle o f October and the middle o f November. There was a further addition o f $30,000,000 to the stock o f monetary gold and a decline o f $20,000,000 in money in circula tion, while member bank reserve bal ances increased. N o material change in the composition o f the reserve bank portfolio was shown for the month. Money rates in the open market have eased slightly since the middle o f October. The rate on prime com mercial paper declined from 3 per cent to a range from 2^4 to 3 per cent and there was a reduction in the rate on bankers’ acceptances o f the longer maturities. Long-time money rates, as measured by yields on United States government securities, declined slightly. Business and Financial Conditions in the Philadelphia Federal Reserve District Industrial activity, after increasing somewhat in the previous month, de clined during October and continued substantially below the level o f the past two years. Manufacturing oper ations usually show marked gains in October but this year most lines turned downward and continued this trend during the first fortnight o f Novem ber. A decline in building is attrib utable to seasonal influences, and the same may be said o f an increase in the output o f anthracite. Quickened by cold weather and the approach of the holidays, retail sales are increas ingly active. Banking figures, moreover, con tinue to reflect persistent dullness in business. The demand for reserve bank credit shows little change and the amount in use is relatively small in volume. Such seasonal gain in cur rency circulation as occurred lately has been less than in recent years. Loans o f member banks, while increas ing slightly in the month, have lagged noticeably behind the amount o f last year, while investments have been large, suggesting slow demand for funds from commerce and industry. Money rates show little fluctuation from the low level prevailing for some time. Manufacturing. Activity in the man ufacturing industry in October not only failed to rise to the usual seasonal level but showed a decline from Sep tember, so that operations have reached almost the lowest point since 1924. Unsatisfactory demand and de clining prices have continued among the adverse factors in the market for manufactured goods. Page Two rily active in October, showed a Factory employment and wage pay considerable curtailment, so that the ments in this section as in the coun present level o f operation is lower try declined instead of increasing as than in any month o f the past five is customary in October. Recessions years. The output o f pig iron and in employment and payrolls have been steel products continues at an excep almost continuous since early spring, tionally low rate. The electrical ap so that in October there were 9 per paratus industry, after rising slightly cent fewer workers employed in Penn in September, declined drastically sylvania factories and 19 per cent reaching the lowest point since early smaller wage earnings than in March. 1928, when allowance is made for sea The difference between these two sonal changes. Activity o f iron and changes is due mainly to a reduced steel foundries, on the other hand, number o f working hours. Compared showed a further increase, and in the with past years, the employment was case o f steel castings the rate o f out even smaller than in 1924 when in put is higher than in 1928, though dustrial conditions were depressed, still much lower than last year. Fol and wage payments only slightly above lowing a marked increase in Septem the low point o f July o f that year. ber, activity in the transportation The demand for workers by local in equipment group turned downward, dustries in October was exceptionally though it was still above the rate pre dull, the percentage o f positions o f vailing two years ago. Am ong lines fered to applicants in Pennsylvania included in this industry only ship and declining to the lowest figure in that boat building showed a further gain month since 1921. Productive ac tivity, which usu FACTORY EMPLOYMENT ally reaches the fall peak in Octo 1923—25AVG— 100 ber, declined to nearly the lowest level in six years A PH A E P ilA — \ IL D L I *r when allowance is 4 made for seasonal y>\_ changes. This also A . t \ holds true for the VO P N SY V IA 1 / V E N L AN country, the de /\ cline in production \ w. * being even greater V f relatively than in U SH * 'PITT 5B R this district. \ Metal fabricat in g i n d u s t r i e s , which are ordina L . I1I 1 I 70 wI1I 1 H 1926 . U 1" i " i " " 1 ‘i 1 1927 ..........1 " ............ " 1 ‘ ‘ L '' '1 •L 192 8 1929 1930 STEEL WORKS a d ROLUNG n in production. Prices o f iron and steel and their products, while show ing some weakness, remain practically unchanged from a month ago, al though steel scrap quotations are lower. The textile industry showed more than the usual rate o f advance from the exceptionally low point in July, although present activity still remains, with a few exceptions, the lowest since 1924. The most pronounced seasonal improvement in October occurred in silk manufactures, knit underwear, and hosiery. Operations o f carpet and rug mills also showed a further gain, though the present rate contin ues unusually low when compared with other years. Cotton and wool manufactures, after increasing in September, eased off slightly in Octo ber, even though mill takings o f raw fibres showed a slight gain. Textile prices continue to exhibit weakness, owing largely £o recessions in the wool group in the first three weeks of November. Silk and cotton fibres, on the other hand, have advanced slightly since the middle o f last month. Activity in the food industry has moved downward as is to be expected. The decline in production during O c tober was due chiefly to curtailed oper ations in sugar refining and canning and preserving industries. But ani mal slaughterings increased noticeably. The daily output o f manufactured to bacco and cigars increased seasonally but continued below the volume of recent years. Daily production o f shoes declined sharply in this district as in the coun try, so that the index stood lower than in any October since 1925. Wholesale prices o f shoes have de- MILLS dined further, con tinuing the down ward trend from the high level in 1928. The hide and skin market has slackened con siderably and quo tations show wide spread weakness. The paper and printing industry, while increasing a little further in October, failed to rise as much as it usually does in that month. This was due to smaller ex pansion in printing and publishing than at the same time in other years, since paper and wood pulp production increased almost as much as was to be expected. Productive activity o f building ma terials, including the output o f cement, brick, lumber and planing mill prod ucts, fell off more sharply than is cus tomary, reflecting continuous dullness in construction and contracting. Daily production o f electric power did not increase as much as usual, re flecting industrial conditions. The use o f electrical energy by industries, when seasonal changes are eliminated, showed a slight gain in October, al though the rate o f consumption so far this year has been materially lower than in the past three years. October, 1930 Percentage change since Business indicators Philadelphia Federal Reserve District Amount Oct., 1929 Sept., 1930 Retail trade*— estimated net sales (154) stores................................. Department (6 3 )................................................................................... M en’s apparel (2 1 )................................................................................ W om en’s apparel (1 7).......................................................................... Shoe (3 7 )................................................................................................. Credit (1 6 ).............................................................................................. 1,016,800 $875,400 $24,000 $87,000 $10,800 $19,600 - 6 .9 7 .0 11.0 0 .3 22.0 14.0 + 3 0 .4 + 3 0 .1 + 4 1 .2 + 3 0 .8 + 1.9 + 3 6 .1 W holesale trade*— net sales (106 firm s)............................................. Boots and shoes (5 ).............................................................................. Drugs (1 1 )............................................................................................... D ry goods (1 2)....................................................................................... Electrical supplies ( 9 ) .......................................................................... Groceries (3 1)......................................................................................... Hardware (2 1 )....................................................................................... Jewelry (1 0 )........................................................................................... Paper (7 )................................................................................................. $316,077 $4,519 $56,050 $17,244 $26,126 $107,069 $67,443 $21,193 $16,433 - 13.4 18.0 1.9 9 .2 38.7 8 .9 14.4 9.4 21.9 + 2 .9 -1 4 .6 - 5 .6 + 12.4 + 3 0 .0 - 5 .3 + 1 2 .8 + 2 3 .4 - 4 .1 Productive activity*— Employment—-839 plants in Penna.................................................. Wage payments (weekly average)..................................................... 297,735 $7,280,666 - 13.8 25.3 68,504 12,813 283,754 629,480 5,492 181 231 290,300 423,300 - 6 .7 51.6 28.2 22.0 6.0 15.0 - 1 .5 - 1.5 -1 1 .8 + 12.2 + 15.6 + 3 .3 + 1 5 .9 - 4 .1 + 1.1 + 2 4 .9 + 3 7 .1 + 4 .1 + 3 .2 - 21.8 7 .3 + 8.1 -1 7 .4 + 5 .2 doz. prs. doz. ‘ lbs. Active cotton spindle hours (Penna.)............................................... Pig iron production............................................................................... Iron casting production— 34 foundries............................................. Steel easting production—-11 foundries............................................ Anthracite............................................................................................... Bituminous coal (Penna.).................................................................... Petroleum receipts at Port of Philadelphia— domestic and forElectric power output— 12 systems.................................................. tons tons tons tons tons bbls bbls. KW H 51,800 90,100 18,152,900 Financial and credit— Debits (check payments)— 18 cities................................................. Loans and investments— middle of November— 90 member $2,494,673,000 - 24.9 + 15.1 Bills discounted held by F. R. B. of Phila. (daily average) . . . . Bankers’ acceptances outstanding— end of m onth....................... Commercial paper sales— 4 dealers................................................... Commercial failures— num ber........................................................... Commercial failures— liabilities......................................................... $1,683,100,000 $17,500,000 $25,836,000 $5,992,500 122 $3,797,253 + + + + 0 .2 77.8 26.4 161.7 6.9 82.5 + 0 .8 + 6 .7 + 11.6 -1 9 .6 + 2 7 .1 + 9 5 .8 Building and real estate—■ Building permits— 17 cities................................................................. Building contracts awarded................................................................ Number of real estate deeds recorded (Philadelphia co u n ty ).. . Value of mortgages recorded (Philadelphia co u n ty).................... Sheriff sale— number of writs issued for Novem ber— (Philadelphia co u n ty )....................................................................................... $7,052,160 $16,201,500 4,041 $7,565,109 Miscellaneous—Freight car loadings (Allegheny district)........................................ Tonnage of vessels (Port of Philadelphia)...................................... Sales of life insurance (Penna., N. J., and D e l.)........................... Automobile registrations of new passenger cars............................. * Daily average of monthly figures. 1,175 tons 826,370 4,291,904 $93,653,000 9,636 -2 + -3 52.6 51.7 1 .1 50.3 -1 6 .7 -1 9 .1 + 6 4 .7 -3 2 .8 0 .8 -3 - + 19.0 0 .1 4 .2 6 .5 4 .1 + 3 .6 - 2 .2 + 2 2 .6 -1 6 .3 t Bureau of Census preliminary figures. Page Three Source: American Railway October, 1930 (D aily average) Electric power Philadelphia Federal Reserve District 12 Systems Change Change from from Sept., Oct., 1930 1929 Per cent Per cent Rated generator capacity.......... + 5 .1 - Generated o u tp u t........................ H ydro-electric.......................... Steam ......................................... Purchased................................. - 7 .3 -8 6 .5 + 2 3 .4 - 3 .4 + 5 .2 -3 4 .8 + 7 .7 + 6 .4 0 .5 Sales of electricity....................... Lighting..................................... M unicipal............................. Residential and commercial...................................... P ow er......................................... M unicipal............................. Street cars and railroads. . Industries.............................. All other sales.......................... - 5 .9 + 12.3 + 6 .7 - 1.3 + 10.4 + 10.5 + 1 3 .1 - 2 .5 + 1 3 .6 + 5 .5 - 4 .3 * -4 3 .4 + 10.4 - 4.1 + 2 1 .0 + 7 .3 - 6 .6 * - 0 .4 Building and real estate. Building operations during October declined further, and the rate continued mate rially below that in recent years. Em ployment and wage payments de creased seasonally and are smaller than last year. The demand for building workers in Philadelphia also was less active than in September. The aggregate amount o f contract awards for construction declined sub stantially in October, owing princi pally to fewer awards for industrial buildings and public works and utili ties ; contracts for commercial and residential buildings increased in O c tober. The accompanying chart and table show that awards this years have been considerably smaller than in the past five years not only in the district but also in several leading cities. Continuing to reflect industrial con ditions, the real estate market remains relatively quiet. Such increases in (000’s omitted in dollar figures) First ten months, 1930 Philadelphia............... Reading....................... Scranton...................... Cam den....................... Tren ton....................... W ilm ington................ 115,486 2,916 3,669 4,016 3,382 6,627 -1 3 .6 -6 3 .4 + 5 9 .0 -6 9 .5 -6 6 .5 -2 8 .0 -3 3 .6 -4 9 .4 - 9 .7 -4 5 .5 -5 1 .3 + 2 9 .9 Total for Philadelphia Federal R eserve District, ineluding all citie s.. . 297,565 -1 8 .4 -2 2 .9 Building contracts awarded 1929 1925-28 average the finan,;n? Qf ~ commercial and residential oJi+migs has been decid edly smaller than in the past two years. Cooler weather in October served to strengthen the anthracite market and activity at the mines in creased noticeably. The total output o f collieries in October amounted to 7,548,000 tons, the largest for any month since December 1929, and was only about 6 per cent smaller than the amount produced in the corresponding period o f last year. Prices continue firm. In the absence o f any sizable in crease in the industrial demand, the market for Pennsylvania bitumino' ■ coal remained quiet during October.' The daily output o f collieries increased and the total production in the month o f 11,429,000 tons was the largest since January. There were also in creases over September in the employ ment and wage payment indexes al though the gains in the month were somewhat less pronounced than in the anthracite field. A reduction in prices occurred during the first week o f October. Coal. Source: F. W . Dodge Corporation. * W orking days average. Page Four Per cent change from jociation demand for rented houses and apart ments as have occurred since early October have been chiefly restricted to less expensive dwellings. Rents generally are lower than last year. About one-fourth o f the rentable com mercial office space in Philadelphia was reported as vacant on October i. This is partly the result of recent increases in commercial buildings. W hile the number of real estate deeds recorded in Philadelphia in creased sharply, the value o f mort gages was much smaller in October than September; both continued mate rially less than in the same month for several years. Foreclosures, after de clining seasonally in October, have in creased in November, although the rise has not been as sharp as at the same time in the past four years. There has been some increase in the sale o f less expensive houses, but pur chases on the whole remain limited when compared with former years. Buyers generally are finding it diffi cult to finance their purchases. As a result o f restricted demand and in creased caution in placing mortgages, Agriculture. Estimated crop yields in the aggregate are lower this year than last, and hardly measure up to the average o f recent years. This reduc tion in the output o f farm products in this district as in the country was due principally to drought, which had a severe effect especially on late crops. Moreover, as a result o f insufficient pasturage, the output o f dairy prod ucts has been somewhat smaller than in former years. The condition of livestock has been below normal, and DEPARTMENT STORES PH ILA. FED. RES. DIST. the number o f hogs marketed has been smaller than usual. Poultry and poul try products, on the other hand, seem to compare well w i the output of past years. Aside from the effect of the sum mer’s drought, the general agricultural situation this fall, locally and nation ally, has been further influenced by the decline in the wholesale prices of farm products. The level o f prices for farm products has declined more sharply than that o f other com modities. Retail sales were sea sonally larger in October than Sep tember, and the relative gain was °T.eater than in the same period last ' C eil . But they were almost 7 per cent smaller than in October 1929. This vas also true for the first ten months vf this year as compared with last, effecting in the main the unsatisfac>ry industrial conditions. Latest in quiries show that retail trade is increasing as is to be expected and that price reductions are numerous. Retail inventories increased as they usually do in October but were nearly 12 per cent smaller than a year before. The rate o f turnover has been a trifle higher this year than last. Retail prices o f food in Philadelphia remained unchanged, while in Scran ton they declined about one per cent between the middle o f September and October. Compared with a year ear lier, they were about 11 per cent lower in both o f these cities. In the country the decline amounted to about nine-tenths of one per cent in October and to about 10 per cent as compared with the same month last year. Wholesale and jobbing trade in the Distribution. aggregate showed a gain o f almost 3 per cent, a rate which is lower than is customary for October. The rise in the dollar sales o f dry goods, elec trical supplies, hardware, and jewelry measured up to the usual volume, while sales o f drugs, groceries, and paper declined instead o f showing an increase. The drop in boots and shoes was greater than was to be anticipated. Early reports for the first part o f N o vember indicate the usual downward trend, and price recessions continued prevalent. In comparison with October 1929, the dollar sales were about 13 per cent smaller, all lines showing declines. The aggregate volume in the first ten months this year also was smaller than in the same period in 1929. Smaller sales have coincided with a continuous decline in wholesale commodity prices which in October were about 14 per cent lower than in the same month last year. Reports on commodity stocks at wholesale establishments are about evenly divided between those showing increases and those indicating de creases during the month. Compared wdth a year ago, however, all whole sale lines report that inventories are appreciably smaller. Accounts out standing increased during the month but were smaller than a year ago ex cept in drugs. Collections also were larger in October than September but continued smaller than last year. Railroad shipments in this section have remained materially smaller than in the past two years. There occurred, however, more than the expected gain during October in the aggregate freight-car loadings, owing partly to a marked increase in the movement of coal. Check payments, after an unusually large decline in September, increased by a greater amount than is usual for October. But they continued substan tially smaller than last year. Sales o f new passenger cars in this district declined further, and, in com parison with a year ago, they were about 34 per cent smaller. L ife in surance sales, on the other hand, in creased noticeably in the month but were nearly 7 per cent less than in October 1929. Commercial failures were substan tially larger in October than Septem ber. For the year to date, the number o f failures was nearly 28 per cent larger and liabilities 47 per cent greater than in the same period last year. Financial conditions. The continuing quiet o f general business, despite sea sonal improvement in some lines o f industry and trade, is reflected in the banking situation in this district. Dur ing the past month the so-called com mercial loans o f the reporting member banks have increased, but the total of credit extended by them has changed little; local money rates have not varied materially, and limited use has been made of reserve bank credit. On November 19, member banks were borrowing only 18 millions from the Federal Reserve Bank o f Philadel phia, practically the same figure as on October 22. Similarly, their reserve deposits were practically identical on the two dates. The reserve ratio has fluctuated as gold was gained or lost in the settlement o f commercial and financial transactions with other disPage Five tricts, but has continued steadily above 80 per cent. Taking the past four weeks as a whole, the district gained 8 millions in the settlement but this had little effect on member bank borrowings as it was absorbed largely by Treasury withdrawals o f funds and by a small increase in the demand for currency. The accompanying table shows that variations lately in the demands made upon the reserve bank for currency have been similar to those in other recent years, and that the season now is at hand when the paying off o f Christmas savings funds and the holi day trade usually call for a much larger amount o f currency. In the table an excess o f currency payments by the reserve bank over receipts is indicated by a plus sign, and o f re ceipts over payments by a minus sign. In millions of dollars 1928 Weeks ending—Oct. 2 9 .................... N ov. 5 ................... 1 2 ................... 1 9 ................... 2 6 ................... Dec. 3 ................... 1 0 ................... 1 7 ................... 2 4 ................... 3 1 ................... 1929 + 2 .0 + 4 .6 + 4 .9 - 6 .7 + 16.9 + 2.1 + 7 .7 + 5 .6 + 3.4 -2 0 .5 + 3 .3 + 3 .9 + 6 .0 - 8 .8 + 1 3 .1 + 3 .8 + 7 .6 + 3.1 + 8 .6 -2 0 .5 1930 + + + - 2 .4 2 .9 3 .7 6 .6 Member banks in four o f the larger cities o f the district report 1,292 millions o f loans and investments on November 19 as compared with 1,293 millions on October 22. Although the total changed little, the so-called “ com mercial” loans rose from 434 to 445 millions; this probably was due in part to additional accommodation extended Page Six to the business community, although loans to banks also may have ac counted for a substantial share o f the increase. Holdings o f commercial paper bought in the open market de clined slightly. Loans on the security o f stock and bond collateral continued to decline, falling from 447 to 441 mil lions, probably owing to a reduction in loans to brokers. Investments, too, de creased 6 millions in the four weeks, although an average o f weekly reports in November shows a small increase over the average for October. Time deposits show a further rise o f 19 millions in the past month, but total deposits rose only 5 millions. The reports as of November 12 of a larger group o f banks located in twenty cities o f the district continue to show a smaller volume o f loans on securities and commercial loans than a year ago, despite much larger hold ings o f purchased commercial paper; investments and deposits have in creased substantially in the past year. The total volume o f credit extended by the weekly reporting member banks, most o f which are located in Philadelphia, exceeded the amount outstanding in November 1929, when both loans on securities and other loans were heavy; a group o f sixty other banks in smaller cities likewise shows a decline in loans but slight changes in either deposits or invest ments. Commercial paper dealers report a further decline in sales o f commercial paper during October, although the figures continue to exceed those for October o f either 1929 or 1928. Total sales during the first ten months o f the year amounted to $115,900,000 in 1930, as against $26,200,000 in 1929 and $48,600,000 in 1928. Sales to Commercial paper sales (four dealers) Total sales City banks Country banks 1930— July . $18,686,000 $6,334,350 $25,020,350 A u g .. 11,287,500 3,250,000 14,537,500 7.452.500 Sept. 4.685.000 2.767.500 3.165.000 2.827.500 5.992.500 O ct. . 1929— O ct. . 1928— O ct. . 1.102.500 1.147.500 1,187,500 3,275,000 2,290,000 4,4 2 2,50 0 The outstanding acceptances of banks in the Philadelphia district show a further increase from $23,100,000 to $25,800,000 during October, which ex ceeds slightly in percentage the in crease in the national total. Compared with a year ago the volume o f local acceptances outstanding is 26 per cent greater; only one other federal re serve district shows a larger per centage gain and the total for the country actually declined. Federal Reserve Philadelphia (In millions of dollars) Changes in N ov. 19, 1930 Bills discounted for banks in Philadelphia.............. $ 1.4 17.0 Other p laces......... T o t a l b ills d is counted............. $ 18.4 Bills b ou gh t.............. 2 .9 United States securities.............. 53.5 Other securities........ 1.0 Total bills and securities............... $ 7 5.8 Federal reserve note circulation........ 116.3 Member bank reserve deposits. . 141.7 Cash reserves........... 218.6 8 3 .9 % Reserve ra tio........... One year Four weeks -$ 1 .0 + 0 .6 - $ 4 3 .0 - 3 3.0 -S 0 .4 + 1.9 - $ 7 6 .0 9 .2 + 1.2 0 + 26.4 0 .1 + $ 2 .7 - $ 5 8 .9 + 1.4 - - 0 + 5 .5 + 4 2.5 0 .3 0 .5 % + 2 0 .5 % 23.3 Employment October, 1930 Employment and wages in Pennsylvania Conditions by city areas * Per cent change since Oct. * Per cent change since Oct. Sept., 1930 Oct., 1929 W age payments -1 7 .6 - 9 .3 -1 3 .9 -2 8 .2 -1 1 .0 -1 4 .3 -1 5 .2 -1 3 .0 -1 9 .4 - 0 .3 -3 0 .6 -1 3 .5 - 3.1 -2 6 .9 -1 9 .7 -3 1 .2 -3 9 .6 -1 8 .2 -2 2 .1 -3 3 .9 -1 8 .8 -2 8 .3 -1 3 .1 -4 3 .2 -1 7 .4 -1 2 .3 8 7 .4 -1 3 .8 - 1 .5 8 1 .3 Metal products............................ 8 4 .5 -1 7 .1 4 6.0 75.6 84.1 109.3 99.1 81.2 82.2 89.5 118.8 73 0 Hardware and tools............. 8018 Brass and bronze p roducts. 79.4 -3 0 .0 -1 5 .9 -2 2 .5 -1 2 .7 - 4 .5 -1 2 .5 -2 3 .1 -1 9 .3 -1 5 .7 - 2 .6 -1 2 .5 - 1.3 - 4 .2 - 7.1 - 0.1 + 3 .2 - 0 .8 - 3 .3 - 4 .5 — 5 8 - 1.6 - 2 .0 - 4 .4 - 6 .2 -1 5 .2 - 3 .7 + 0.1 + 2 .5 3 0.2 40.2 37.3 72.3 153.5 -4 3 .8 -5 3 .2 -3 6 .5 -2 0 .0 + 5 4 .7 -2 0 ! 8 -3 5 .1 6 5 .6 f - 1 6 . 0 A utom obiles.......................... Auto, bodies and parts. . . . Locom otives and cars......... Railroad repair shops.......... Shipbuilding.......................... 4 5.6 54.0 41.6 75.3 99.1 -3 0 .9 -3 7 .3 -2 3 .8 - 6 .0 + 5 7 .3 Textile products.......................... 9 4 .7 -1 4 .9 C otton goods......................... 61.2 W oolens & worsteds............ 62.4 Silk g ood s.............................. 100.3 Textile dyeing & finishing.. 89.9 Carpets and rugs.................. 60.9 H a ts........................................ 89.2 H osiery................................... 120.1 Knit goods, O ther................ 96.7 M en’s clothing........................ 84.2 W om en’s clothing.................. 89.0 Shirts and furnishings......... 146.9 -3 0 .9 -1 9 .1 -1 2 .1 -1 7 .9 -1 8 .0 - 9 .3 -1 4 .8 -1 2 .7 - 8 .4 -2 2 .0 - 4 .4 Sept., 1930 -2 5 .3 - 1 .5 7 7 .9 -2 9 .1 - 3 .5 4 6.8 70.1 70.1 9 5.5 96.1 71.4 69.6 78.3 117.0 fifi 1 70.4 6 9.2 -2 9 .4 -2 9 .5 -4 0 .7 -2 6 .5 -1 9 .5 -2 4 .6 -3 9 .7 -3 5 .2 -2 1 .5 43 1 -3 3 .7 -4 6 .4 - 8 .9 - 1 .1 5 6 .lt - 3 3 .3 + 3 .8 - 1.0 + 2 .8 + 8 .7 - 3 .3 + 5 .2 - 8 .6 + 5 .8 - 5 .9 + 4 .0 -1 5 .4 + 8 .7 8 9 .5 -2 7 .9 5 3.5 56.9 101.7 87.0 50.0 7 2.5 123.8 94.7 77.3 87.8 134.4 -4 0 .8 -2 4 .7 - 2 3 .1 -2 2 .9 -3 2 .7 -2 3 .4 -3 1 .5 -3 1 .5 -2 8 .0 -2 4 .1 -2 0 .6 -1 0 .5 - 8 .3 + 5 .7 - 0 .3 + 2 .4 + 3 .7 -1 1 .9 4 fi + 5.1 - 5 .5 - 4 .8 - 4 .1 -1 9 .0 - 6 .8 + 5 .4 + 3 .3 + 7 .8 - 4 .6 - 4 .2 + 12.9 - 4 .5 + 1 5 .2 - 0 .7 + 15.8 - 7 .6 + 0 .7 -1 6 .6 + 9 .4 2 .6 0 .2 0 .4 7 .5 1.0 4 .6 -1 1 .1 - 4 .0 -1 5 .0 - 4 .7 - 2 .4 - 2 .7 + + - 101.8 Bread & bakery products. . 109.4 C onfectionery.......................... 105.8 Ice cream ............................... 99.5 Meat packing........................ 96.5 Cigars & tob a cco.................. 103.6 108.8 101.8 101.0 93.4 90.3 - 6 .3 -2 0 .0 - 7 .2 - 8 .6 -1 0 .9 Stone, clay & glass products.. 6 6 .0 -2 1 .1 - 0 .3 5 6 .7 -2 9 .5 Brick, tile & p ottery............ C em ent....................................... Glass............................................ 7 8.8 59.7 62.8 -1 4 .1 - 7 .9 -3 7 .8 - 0 .6 - 2.1 + 2 .3 61.2 53.5 60.6 -3 0 .1 -1 8 .6 -4 0 .0 Lumber products ........................ 7 1 .1 -2 8 .0 -3 3 .4 0 .0 58.2 7 4.3 7 1.0 -3 6 .4 -2 8 .1 - 9 .7 - 6 .1 -1 3 .9 - 1.1 - 4 .3 7 0 .7 Lumber and planing m ills.. Furniture................................... W ooden boxes......................... 4 8.3 7 9.5 7 3.3 -4 6 .5 -3 1 .4 -1 2 .9 -1 1 .7 + 1.8 + 12.3 Chemical products..................... 8 7 .9 -1 0 .9 - 4 .1 9 3 .2 -1 3 .1 Chemicals and drugs........... 6 6.5 C ok e........................................ 79.2 E xplosives.............................. 77.7 Paints & varnishes............... 91.1 Petroleum refining................. 117.4 -2 9 .0 -1 6 .3 -1 9 .2 - 7 .8 - 5 .5 - 2 .8 - 6 .8 - 0 .8 + 1.9 - 4 .8 66.2 7 5.3 96.3 94.7 125.8 -2 8 .2 - 5 .3 + 2 .0 -1 1 .1 -2 4 .5 -1 0 .8 + - 0 .5 100.5 -1 0 .1 - 0 .3 1.0 0 .0 4 .0 112.5 86.2 88.4 91.7 0 .0 -2 9 .1 -1 5 .8 -1 3 .5 - 3 .6 - 0 .9 -1 2 .4 + 3 .8 - 4 .8 - + 0 .7 105.1 - + - 5.7 -1 4 .2 - 2 .7 0 .0 + 2 .7 + 1.0 8 3.6 108.0 111.8 -1 2 .4 -1 7 .2 - 7 .5 + 6 .0 + 8 .8 + 1.2 - + 9 9 .9 -1 4 .3 + 2 7 .9 A llentow n............... A ltoona................... Harrisburg............. Johnstown.............. Lancaster............... Philadelphia........... Reading.................. Scranton................. T ren ton................... W ilkes-Barre......... W ilm ington............ Y o r k ........................ Leather & rubber products . . . 9 9 .8 Leather tanning..................... 112.0 Shoes........................................... 95.1 Leather products, O ther. . . 7 8.3 Rubber tires & goods........... 84.2 A llentow n............... A ltoon a ................... Harrisburg............. Johnstown.............. Lancaster................ Philadelphia........... R eading.................. Scranton................. T ren ton................... W ilkes-Barre......... W ilm ington............ Y o r k ........................ + + + + + + 2 .0 5 .9 1 .8 1.7 0 .9 2 .2 2 .4 15.4 1.4 3 .4 4 .1 3 .7 0 .3 - 5 .8 -1 3 .8 -1 8 .5 -1 4 .8 - 9 .4 - 2 .3 + 0 .5 + 3 .2 - 8 .8 + 1 .5 - 6 .8 + 18 - 2 .4 - 2 .9 + 15.6 9 8 .0 Paper and wood pu lp.......... 83.1 Paper boxes and b ag s......... 93.8 Printing & publishing......... 103.4 Anthracite...................................... 9 9 .7 4 .7 9 .2 5 .5 9 .1 Street railways............................ 8 1 .4 Retail trade sales 1 .8 + 5 .4 -1 0 .1 - 2 .6 8 5 .1 -1 9 .3 - 4 .1 - - 1.1 8 5 .8 -1 1 .3 + 1 .2 9 .8 9 8 .0 - 9 .0 + 1 .0 9 1 .2 - 9 .0 + 0.1 -1 7 .0 -1 1 .2 -1 9 .3 -1 3 .8 -1 5 .4 -2 6 .5 -1 8 .1 -2 4 .8 -2 4 .5 -2 1 .4 -2 9 .5 -2 4 .5 -1 3 .1 - 10.4 - 26.7 + 1 1 7 .3 + 64.6 - 3 1.3 - 14.5 - 2 4.2 + 2 3.4 - 6 0.8 - 7 2.2 - 80.9 4 .6 - 37.1 -1 2 .6 -1 0 .9 - 1.3 - 8 .5 + 2.1 - 6 .9 -1 0 .9 - 5 .4 - 7 .4 - 1.9 - 8 .0 V + 1 3 .5 + 6 .2 + 0 .5 + 1 3 .7 + 2 0 .1 + 1 6 .8 + 9 .8 + 1 2 .0 + 6 .9 + 1 3 .8 + 7 .3 + 1 1 .5 + 6 .6 + 3 6 .9 - 2 .9 + 1 8 .1 + 6 3 .7 + 6 5 .1 + 4 3 .5 + 5 8 .4 + 11.1 + 3 6 .9 + 5 3 .7 + 4 5 .5 * Area not restricted to the corporate limits of cities given here. Percentage change W holesale trade Philadelphia Federal Reserve District Net sales: 1930 compared with 1929 Stocks: Oct. 31, 1930, compared with Oct. (daily av.) D rugs...................... D ry good s............... Electrical supplies. Groceries................. H ardware............... Jew elry................... Paper....................... Ten months Oct. 31, 1929 Sept. 30, 1930 -1 8 .0 - 1.9 - 9 .2 -3 8 .7 - 8 .9 -1 4 .4 - 9 .4 -2 1 .9 -1 2 .5 - 0 .8 -1 2 .2 -4 3 .7 - 3 .8 -1 0 .4 -2 1 .6 -1 3 .1 -2 0 .4 -1 5 .4 -4 3 .9 - 8 .4 -1 0 .5 - 4 .8 - 5 .0 + 7 .3 -1 0 .2 + 2 4 .7 + 4 .8 - 7 .0 + 0 .2 - 1.6 Collec tions during Oct. 1930, compared with 1929 -1 2 .9 - 8 .7 -1 8 .3 -5 1 .0 -1 1 .4 -1 1 .1 -3 5 .1 -1 4 .0 Percentage change Retail trade Philadelphia Federal Reserve District N et sales: 1930, compared with 1929 Ten months Stocks: Oct. 31, 1930, compared with Rate of turnover: ten months Oct. 31, Sept. 30, 1929 1930 1929 1930 2 .4 + Construction & contracting.. . 102 .9 -5 1 .2 -5 7 .9 -4 6 .3 -4 4 .2 -7 9 .3 -3 9 .3 -6 3 .3 -6 0 .5 -9 2 .6 -6 1 .9 - 3 8 .1 - 5 .2 + 8 .3 - 4 .2 - 1.8 + 5 .8 - 2 .8 + 12.2 + 2 0 .2 + 11.2 + 3 .4 + 0 .6 - 2 .5 - 6 .1 Oct. Paper and printing..................... Debits Oct., 1930, compared with Sept., 1930 - 1 .2 + 0 .3 - 4 .6 + 0 .8 + 10.9 - 2 .7 Foods and tobacco ..................... 106.7 Building permits (value) It-CO U C OO )t— < i— 1 1 All manufacturing industries (5 1 ).......................................... Blast furnaces....................... Steel wks. & rolling mills.. . Iron and steel forgings........ Structural iron w ork ........... Steam & hot wtr. htg. a p p .. Stoves and furnaces............. Foundries............................... Machinery and parts........... Electrical apparatus............ E m ploy ment * Oct., 1929 Transportation equipm ent... . Percentage change Oct., 1930, compared with Oct., 1929 Payrolls October, 1930 All reporting stores.................. - Department................................ in Philadelphia..................... outside Philadelphia........... M en’s apparel............................ in Philadelphia..................... outside Philadelphia........... W om en’s apparel...................... in Philadelphia...................... outside Philadelpnia........... Shoe............................................... Credit............................................ - 7 .0 - 7 .2 - 6 .3 -1 1 .0 -2 0 .8 - 4 .1 - 0 .3 + 0 .8 - 7 .4 -2 2 .0 -1 4 .0 6 .9 - 6 .7 -1 1 .9 + 8 .5 3 .0 5 3 .0 7 - 6 .9 - 6 .5 - 7 .9 - 8 .2 -1 0 .7 - 6 .4 - 1 .7 - 1 .2 - 5 .1 - 9 .1 -1 3 .6 -1 2 .5 -1 1 .4 -1 4 .6 + 9 .2 + 1 0 .7 + 6 .5 3 .0 3 3 .0 7 3 .3 5 3 .3 9 2 .4 0 2 .4 2 - 8 .8 - 9 .1 - 8 .6 -1 1 .5 - 9 .6 -1 3 .6 + 3 .0 + 9 .9 + 1 0.4 + 7 .4 - 1 .5 + 4 .1 1 .93 4 .81 5 .1 6 3 .3 2 2 .2 7 2 .0 6 1 .7 8 4 .7 3 5 .0 9 3 .2 1 2 .1 9 1 .94 * 1923-1925 Average = 1 0 0 . t Preliminary figures Page Seven Synopsis o f Industrial and Trade Conditions in the Philadelphia Federal Reserve District D em an d O pera tion s S tock s M a n u fa ctu rin g Iron and steel Slow , declined D eclined in the m onth m uch low er than a year ago Steel w orks and rollin g Q uiet, declined som ew hat in the Low er th an a m on th ago m onth m ills ........................................... F ound ries and m achine Slow , unfilled orders for iron c a s t O utpu t iron and steel ca stin g s in S to c k s low er in gs m uch sm aller in O ctober, creased in O ctober year ago while orders for steel ca stin g s were slig h tly sm aller than a m on th ago Fair T ra n sp o rta tio n eq u ip m en t S h ip building ............................. T extiles th an a m on th and D eclined, low er th an a m on th and yea r a g o Q uiet, unfilled orders sm aller than Som e decline in the m onth a m onth ago th an la s t year F airly active Increased in O ctob er Fair, th row sters increased while the dem and for goo d s declined lower Increased, silk goo ds larger than M oderate, som e increase in the m onth bu t sm aller than a year a m onth a g o . T h row sters d e ago clined slig h tly L ig h t, sm aller than a yea r ago Poor, not m uch ch an ge in the m o n th ; prices lower Q uiet, som e decline in O c to b e r; Declined in O ctob er, m uch lower L ig h t, som e decline in the m onth prices lower and sm aller than la s t yea r. than la st year Q uiet, not m uch ch ange in the S ligh tly low er, below a yea r ago M edium , sm aller th a n la st m onth m onth and a yea r a g o Fair for fu ll-fa sh io n ed , slow for D eclined and con sid erab ly below F u ll-fa sh io n e d rather h e a v y , and seam less. Som e increase in O c larger th an a yea r a g o , se a m last yea r tober less lig h t and sm aller than la st yea r Poor, not m uch ch ange in O c t o b e r ; prices unchanged H ig h er in O cto b er bu t low er th an la st year Q uiet, declin ed; D eclined, below a m onth and yea r L ig h t, sm aller than a m on th and yea r ago ago Declined, b u t larger than a year Som e acc u m u la tio n in the m onth ago m uch M oderate, sm aller and yea r a g o than a m onth L eath er p ro d u cts prices low er P oor, declin ed; p rices w eaker Slow , declin ed; prices un changed Increased slig h tly in O ctob er but L a rg er low er than a yea r ago th an a m on th ago B uilding m aterials Q uiet, som e increase in m o n th ; prices unchan ged Poor, declin ed; p rices lower the D eclined yea r Q uiet, som e im provem en t in O c to b e r ; prices low er Slow , little change Fair, not m uch slig h tly low er ch a n g e; Q uiet, som e decline prices lower in prices m uch low er than last Som e acc u m u la tio n in the m onth heavy, declined in the D eclined, sm aller th an a m onth F airly m on th an d year and yea r a g o Low er th an la s t m on th , m uch M oderate, sm aller th an a m onth and yea r ago low er than a yea r ago Sm aller th an a yea r a g o Increased, larger than la s t m on th O cto b e r; M oderate, little ch ange in the m on th bu t sm aller than a year ago Sm aller th an la s t m on th and la st year M iscellan eous Fair, som e increase in the m o n th ; Increased in O cto b er but prices som ew hat lower than la s t yea r Q uiet, sligh t increase in the Low er than a yea r ago m o n th ; prices som ew hat lower Fair, n o t m uch change in the Increased in O cto b er bu t m onth th an la s t year Poor, som e declin e; prices u n Declined changed Building B uilding perm its declined stan tially in O cto b er su b lower F a irly h e a v y , sm aller than a yea r ago L ig h t, sm aller th an la s t year lower M oderate, ago sm aller th an a yea r M edium , n ot m uch ch ange in O c tob er, sm aller than la s t year B uilding co n tra cts declined in O c tober and were n early 52 per cent sm aller th an a yea r a g o C oa l m inin g Fair for both d o m e stic and steam Increased in the m on th althou gh M oderate, sizes. D o m estic dem a n d in ago s lig h tly low er than a yea r ago crea sed ; prices un chan ged Q uiet, increased lower s lig h tly ; sm aller prices Increased, ou tp u t la rg er than a M od e rately heavy th an a yea r ago m on th a g o bu t sm aller than la s t yea r th an but a yea r sm aller T rad e W h o le s a le and j o b b i n g . . . . Page Eight Im provin g seaso n ally, O ctober sales show abo u t the u su al s e a son al gain alth ou gh th ey are nearly 7 per cent sm aller than a year ago. P rices lower Increased by som ew hat less than the usual seaso n al am ou nt. Inventories are larger a s is u su al a t th is tim e, b u t th ey are a l m o s t 12 per cen t sm aller than la s t yea r Sm aller th a n a ye a r a g o
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