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// MsU ; ( THE BUSINESS REVIEW THIRD FEDERAL PHILADELPHIA RESERVE DISTRICT DECEMBER i, i933 By RICHARD L. AUSTIN, Chairman and Federal Reserve Agent FEDERAL RESERVE BANK of PHILADELPHIA Business and Banking Conditions in the United States r r Volume of industrial output con tinued to decline in October. Factory employment and payrolls, after in creasing continuously for six months up to the middle of September, showed little change from then to the middle of October. There was an in crease in the volume of construction undertaken, reflecting the expansion of public works. Production and employment. Volume of output in basic industries de creased in October as compared with September, contrary to seasonal tend ency, and the Board’s seasonally ad justed index declined from 84 per cent of the 1923-1925 average to 77 per cent. This compared with an index of 67 in October of last year and of 60 at the low point in March of this year. At steel mills activity declined sharply between the middle of October and the first week in November, but in the following three weeks showed little change. In the automobile industry, output has been curtailed in recent weeks in preparation for new models. For the first ten months of the year the number of cars produced was 50 per cent larger than in the correspond ing months of 1932. Output at shoe factories showed a seasonal decline in INDUSTRIAL PRODUCTION October as compared with September, and there was some decrease in activ ity at cotton and wool textile mills, contrary to seasonal tendency. At meat-packing establishments activity declined sharply from the unusually high rate prevailing in September which was due to the fact that in that month a large number of pigs pur chased by the Federal government were handled. Total number of employees at fac tories, excluding canning establish ments, showed little change from the middle of September to the middle of October. At canning establishments there was a decline of a seasonal char acter, and the Board’s index, which includes this industry, showed a slight decrease. Value of construction contracts awarded during October and the first half of November, as reported by the F. W. Dodge Corporation, showed a considerable advance over the preced ing six-week period, reflecting a grow ing volume of public works. Distribution. Shipments of commodi ties by rail showed a somewhat larger decline between the middle of October and the middle of November than is usual at this season. Department store CONSTRUCTION CONTRACTS AWARDED sales increased in October as com pared with September by slightly less than the usual seasonal amount. Prices. Wholesale prices, as meas ured by the weekly index of the Bureau of Labor Statistics, declined from 71.3 per cent of the 1926 average in the first week of October to 70.4 per cent in the third week, and then advanced to 71.7 per cent in the third week of November, a level 20 per cent above the low point of last March. F'ollowing declines early in October, prices of cotton, grains, lard, rubber, tin and silver increased considerably, while cattle prices continued to decline and prices of hogs showed little change. FACTORY EMPLOYMENT AND PAYROLLS Indexes of factory employment and payrolls, without adjustment for seasonal variation. (1923—1925 average = 100.) MILLIONS OF DOLLAR RESERVE BANK CREDIT MILLIONS QF DOLLARS ' 400C _ L Total Jtl A V k [ U S. Govt^Sccunby-^j -^ccegtances 0 1929 Index number of industrial production, ad justed for seasonal variation. (1923-1925 aver_mn \ _ --------------------- -----------------'---------■— age—100.) * • ”• uaio ioi -j t nasicrn otaien, adjusted for seasonal average =100.) variation. (1923-1925 1930 1931 19321--------- 1933 | Wednesday figures for 12 Federal reserve banks. Latest figures are for November 15. Page One The value of the dollar in the foreign exchange market fluctuated around 67 per cent of its gold parity during the latter part of October, declined during the first part of November to 59 per cent on No vember 16, and on November 22 was 61 per cent. Bank credit. Between October 18 and November 15 there was little change in the reserves of member banks, which continued to be more than $800,000,000 in excess of legal requirements. Pur chases of United States Government securities by the reserve banks declined Foreign exchange. gradually from $25,000,000 during the week ending October 25 to $2,000,000 during the week ending November 15. For the four-week period as a whole the banks’ holdings of United States Government securities showed an in crease of $57,000,000 while holdings of acceptances and discounts for mem ber banks showed little change. Total loans and investments of mem ber banks increased by $90,000,000 during the period, reflecting a growth of $150,000,000 in holdings of United States Government securities, of $25, 000,000 in holdings of other securities, and of $30,000,000 in all other loans, while loans on securities declined. Net demand deposits declined by $70,000, 000 during the period, while govern ment deposits increased by $180, 000,000. Rates on acceptances and yields on short term United States Treasury bills and certificates rose slightly from mid-October to November 20, and yields on government and high grade corporate bonds advanced somewhat. Discount rates of the Federal Reserve Banks of Boston, San Francisco and Philadelphia were reduced from 3 per cent to 2per cent on November 2, 3, and 16 respectively. Business and Banking Conditions in the Philadelphia Federal Reserve District Trade activity during October gen erally failed to show the usual sea sonal improvement, but in November the sales of department and specialty stores increased. Virtually all indi cators bearing on the distribution of commodities either declined or showed smaller than customary increases from September to October, but most of them were higher than a year ago. Output of factory products regis tered only a fractional change, even though most of the manufacturing groups reported unusual curtailments. While some of the gains attained be tween spring and mid-summer were lost in the past three months, the Octo ber level of manufacturing still con tinued noticeably higher than last year. Production pf both anthracite and bituminous coal decreased very sharply and was smaller than a year ago, but larger in the first ten months this year than last. There was some slight im provement in building activity but this industry as a whole continued at an exceedingly low level relative to other years. Commercial failures in creased greatly in October but were much smaller than last year. Industrial employment and payrolls were well sustained in October. Our indexes of twelve occupations in Pennsylvania, combined in proportion to their importance, showed a small rise in the number of workers and a gain of almost 2 per cent in their earn ings. The sharpest increases in both occurred in retail trade and crude pe troleum refining, while the most pro nounced decreases took place in bitu minous coal. Compared with a year ago, the general index number of these occupations was 9 per cent higher for employment and 16 per cent higher for payrolls. Manufacturing. The demand for manufactures has declined further since early October; current sales and shipments in the aggregate have been decreasing, partly for seasonal reasons. Future business commitments again have fallen off as is evidenced by an additional reduction in the total vol ume of unfilled orders for factory products in this district. Reports gen erally indicate a continuance of hesita tion and uncertainty with respect to the purchase of merchandise for fu ture delivery. Stocks of finished goods at manu facturing plants show further increases in a number of important lines, par ticularly in certain textiles, leather, and building materials. Some addi tional purchases of raw materials have occurred in the month, so that total inventories at present remain larger than at the same time last year. Prices quoted by local manufac turers generally have fluctuated within a narrow range since early October, the number of advances being offset by the number of declines; compared with a year ago quotations for most manufactured products continue appre ciably higher. Collections showed de creases from the previous month. RETAIL TRADE MANUFACTURING ACTIVITY PHILADELPHIA FEDERAL RESERVE DI5TRICT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PERCENT PRpDUCTION SALES (in dollars) EMPLOYMENT STOCKS (in dollars) PAYROLLS 1929 1930 Page Two 1931 1932 1933 1934 1928 1930 1932 1933 The number of wage earners on the Business Indicators roll of factories in this district and the Philadelphia Federal Reserve District amount of wages paid showed further increases from September to October Index numbers: percentages of the 1923-1925 average taken as 100 though at a slower rate than in recent Adjusted indexes allow for the Adjusted for seasonal variation Not adjusted months. In Pennsylvania, for in usual seasonal change which restance, manufacturing industries added of business between the months Percentage coin parison to their working forces in early Oc of the year. Unadjusted indexes reflect merely tober about 3,000 wage earners, so that the actual change which may or Oct. Sept. Oct. Oct. 1933 with Oct. Sept. Oct. To all factories in that state had on their may not be up to the usual sea 1932 1933 1933 date 1933 1933 1932 sonal expectations. with rolls about 800,000 wage earners about Month Year year the middle of October or almost 190, ago ago ago 000 more than in March, which was - 2.3 4.3 70.5p a record low month, according to esti Industrial production................ 62.2 68.7 67. Ip - 0.3 + 7.9 + 4.4 65.6 70.1 70.8p Manufacturing—total................... 62.3r 68.6 68.4p + 9.8 + 64.6r 70.0 D . . . 34.7 48.3 47.5p - 1.7 +36.9 - 0.3 mates based on reports from 1745 rep C ’ ...................... 84.1 84.0 84.7p + 0.8 + 0.7 + 73 resentative concerns. Metal products........................... 31.5r 53.0 52.9* - 0.2 +67.9 +16.2 32.8r 53.2 54.8 Textile products......................... 88.4 85.4 85.8p + 0.5 - 2.9 +17.6 90.2 86.2 86.8p The amount of wages paid by these Transportation equipment.. . . 39.5 r 39.4 43.1 + 9.4 + 9.1 -36.2 37.7r 37.2 41.1 1 ood products............................. 69.lr 71.7 69.6p - 2.9 + 0.7 - 4.0 72.lr 74.6 73.6p concerns was almost 3 per cent larger Tobacco and products............... 76.8r 80.6 75.9 — 5.8 - 1.2 + 1.9 93.9 93.1 92.8 in October than in September, so that Building materials...................... 23.3r 25.8 21.9 -15.1 - 6.0 -14.3 24.9r 27.6 23.0 Chemicals and products........... 86.0 102.3 98.2p - 4.0 -14.2 + 4.8 87.2 101.4 99.5p the estimated total payroll of all manu Leather and products. . . 102.9 125.0 120.9p - 3.3 + 17.5 +20.1 109.6 136.7 128.3p Paper and printing.................... 78.8r 81.4 80.2 - 1.5 + 1.8 - 4.7 79.6r 80.7 81.1 facturing industries rose by $398,000 Electric power output............... 173.2 195.0 180.8 - 7.3 + 4.4 + 3.1 178.4 191.1 186.2 to $14,612,000 a week as compared Industrial use of electricity .. . 122.6 141.8 132.9 - 6.3 + 8.4 + 3.8 118.9 150.3 128.9 Coa I mining...................... 52.6 -24.9 -13.2 + 3.2 76.6 71.0 66.7 60.6 70.0 with $14,214,000 a week in September. Anthracite.................................... 61.0 74.0 55.0 -25.7 - 9.8 + 2.2^ 79.0 75.0 71.0 Bituminous.................................. 57.0 45.9 38.2 -16.8 -34.0 +10.0 61.9 46.8 40.9 The number of employe-hours ac tually worked during the same period Employment and wages— Pa. showed a gain of over one per cent as + 0 4* 76 7 compared with the September figure, + 2.8* 53 5 Employe-hours (1927-28= 100) . + 1.4* +26.4* +12.4* 47 4 59.1 59.9 which was 4 per cent lower than the General—12 occupations: + 0.4* + 9 0* — 2 9* 100 9 109 .6 high level in August. Payrolls (1932=100)........ + 1.7* +16.3* - 6.9* 100.0 114 3 116.3p The Pennsylvania employment in Building and real estate Contracts awardedf—total. . . 30.8 dex in October was 77 per cent of the 19.7 23.9 +21.3 -22.4 -41.4 30.8 18.9 23.9 Contracts awarded!—residential. 14.3 16.3 13.7 -16.0 - 4.2 -34.0 15.2 13.8 14.4 1923-1925 average, or 17 per cent Permits for building—17 cities . . 6.8 4.3 -10.4 -36.8 -43.4 4.8 6.9 4.3 4.4 Mortgages recorded—Phila. . . 25.6 14.5 13.8 - 4.8 -46.1 -50.7 23.0 li:2 12.4 higher than a year ago and was the Real estate deeds—Philadelphia. 67.5 31.2 60.5 +93.9 -10.4 -15.3 70.2 28.7 62.9 +998 0* highest for any month since early Other deeds (1930= 100).......... + 4.3* — 1 3* — 12 0* 68 2 64 5 1931. The payroll index rose to 55 Writs for Sheriff sales—Phila.. . . 1106.0 906.0 1173.2 +29.5 + 6.1 + 0.3 553.0 1051.0 586.6 which was 36 per cent higher than in Distribution 62.3 69.7 62.6p -10.2 + 0.5 - 7.8 70.3 62.7 70.7p Retail trade—sales................ October 1932 and the highest since 60.0 62.7 61 .lp - 2 6 + 18 Retail trade—stocks .... 65 6 53.4 64.1 63.4p - 1.1 +18.7 + 5.4 60.5 72.8 71. 9p Wholesale trade—sales......... the spring of two years ago. Latest Wholesale trade—stocks............... 62.6 60.0 65.5 61.9 — 1.2 — 5.3 Life insurance sales.................... returns from two-thirds of the report 103.4 102.1 100.9 -1.2 - 9.8 94.1 81.7 91.8 New passenger auto, registrations 41.5 82.7 78.0 - 5.7 - 2.4 +17.0 34.0 79.4 64.0 +88.0 ing manufacturers indicate that in No Freight car loadings—total. . . 51.3 58.2 55.1 - 5.3 + 7.4 + 1-7 55.6 64.6 60.4 Mdse. & misc. (64.9% of total) 53.3 57.2 55.8 - 2.4 + 4.7 - 2.9 56.8 63.5 59.5 vember there were declines in employ Coal (23.5% of total)................ 56.4 61.6 54.2 -12.0 - 3.9 + 7.6 64.3 64.1 61.8 ment, payrolls and working schedules. Business liquidations Output of factory products in this Number....................... Amount of liabilities............. +149.2* -31.8* -5o!o* 154^5 42.3 105.4 district was relatively well maintained during October. This was due largely Payment of accounts Check payments.... 61.1 61 J2 + 0.2 + 3.0 58.0 Rate of collections (actual). . . to improvement in some of the indus + 8 4* Retail trade................................. 27 2 tries manufacturing consumers’ goods Wholesale trade......... - 0.5* +11.3* 54.9 61.4 61.1 and in part is probably attributable to Prices—United States W (.1926 = 100)............. + 0 6* +10 6* the resumption of operations resulting 64.4 70 8 71 2 46.9 from the adjustment of labor difficul 60.5 70.2 ties that had prevailed for some time. 100.4 This bank’s index number of produc 105.1 + 0.1* + 7.7* 105.9 114.0 114 + tion, which makes allowance for the number of working days and for sea Per cent change fror (000.000’s omitted sonal change, was 68.4 as compared Oct. July Aug. Sept. Oct. in dollar figures) 1932 1933 1933 1933 1933 with the September index of 68.6 per Month Year ago ago cent of the 1923-25 average. A' year ago this index was 62.3, so that the Banking and credit October level this year was almost 10 Federal Reserve Bank Bills discounted.......................... S 49 $ 34 $ 32 $ 29 * 26 -10.4 -46.9 per cent higher. Other bills and securities.......... 144 146 148 + 5.2 155 163 + 13.2 Member bank reserves............. 118 With the exception of the two 126 123 126 128 +1.6 + 8.5 Ratio.............................................. 57.5% 64.2% 63.9% 63.4% 62.4% - 1.6 + 8.5 groups comprising textile products and Reporting member banks Loans to customers.................... $586 $504 $502 $498 $490 - 1.6 -16.4 transportation equipment, there have Other loans and investments. . 509 512 525 533 538 + 0.9 + 5.7 Net deposits................................. been either actual decreases or smaller 936 921 928 937 940 + 0.3 + 0.4 Bankers’ acceptances outstand. . 13.3 13.0 12.4 14.3 16.3 + 14.0 +22.6 than usual increases in the output of other manufacturing groups, industries * Computed from data unadjusted for seasonal variation, p—Preliminary, producing durable or capital goods f 3-month moving daily average. r—Revised. urable or capital goods onsumers goods holesale Page Three OUTPUT OF METALS andTRANSPORTATION EQUIPMENT PHILADELPHIA FEDERAL RESERVE DISTRICT OUTPUT OF TEXTILE AND LEATHER PRODUCTS PERCENT PERCENT PHILADELPHIA FEDERAL RESERVE DISTRICT LEATHER PRODUCTS TRANSPORTATION EQUIPMENT TEXTILE PRODUCTS 1928 1929 1930 1931 generally showing the heaviest curtail ment in volume. Compared with October 1932, the output of metal products, transporta tion equipment, and leather and its products registered the largest gains, while textile, tobacco and chemical products, and building materials showed decreases. Since the record low point in March, the most pro nounced gains occurred in the produc tive activity of metal, textile, leather and chemical industries, while trans portation equipment and building ma terials showed the least improvement. Of the thirty-one individual manu facturing lines, thirteen showed im provement while eighteen failed to measure up to the usual seasonal change between September and Octo ber, as is shown by the table at the bottom of the last page. Most excep tional gains occurred in iron and steel castings, electrical apparatus, sugar refining and certain industries manu facturing transportation equipment. Unusual decreases were noted in the output of pig iron, motor vehicles, wool and cotton manufactures, cement, brick, explosives, paints and varnishes, and by-product coke. Nevertheless, the level of production in most of these industries has continued higher than in the same period last year. Output of electric power decreased instead of increasing from September to October, but was 4 per cent larger than a year ago. Consumption of electrical energy by industries was smaller in October than in September by a larger amount than usual but was 8 per cent greater than a year ago. Sales for power purposes to munici palities and street cars and railroads, Page Four 1932 1933 1928 on the other hand, showed increases as did sales of electricity for lighting. Coal. Demand for anthracite at the mines has shown some increase since the middle of last month. Retail sales in the Philadelphia area also have been stimulated by cold weather. Shipments of hard coal, after rising for four months, declined in October and were the smallest for that month in the past five years. Output of collieries de creased sharply in October and was below the level of any like period since 1925. In the first two weeks of November production showed a fur ther decline, reflecting partly labor disturbances, but in the third week output increased to the largest weekly total this year. Wholesale prices of anthracite decreased in October, fol lowing moderate increases in the two preceding months; as compared with a year ago, they were 8 per cent lower. Production of Pennsylvania bitumimous coal, which has shown a down ward trend since mid-summer, declined 16 per cent from September to October instead of increasing as is usual in this period. In the first fort night of November, however, colliery output showed a substantial gain. Soft coal shipments averaged less in October than in September, whereas in each of the past five years there has been a substantial increase be tween these two months. Wholesale prices of bituminous coal increased 6 per cent in October and were nearly 11 per cent higher than a year ago. Building and real estate. Activity in the building and contracting industry as a whole indicated some increases from September to October, reflecting gains in building construction and general contracting work, which more than offset decreased operations on 1929 1930 1931 1932 1933 streets and highways. Although re ports from 1300 contractors showed only a fractional gain in employment, increases in wage payments and work ing time amounted to nearly 6 and 8 per cent respectively in this period. The general level of operations, how ever, continued exceedingly low when compared with recent years. Contrary to seasonal tendency, ag gregate awards of building contracts increased sharply in October and were the largest of any month since No vember of last year. Although all classes of construction, with the excep tion of factory buildings, shared in this unusual increase, awards for public works and utilities and commercial buildings showed the most pronounced gains. The average of total awards, which showed a substantial gain for the three months from August through October, was about 22 per cent smaller than a year ago, but indicated, how ever, a considerable narrowing of the spread between this year and last. The dollar volume of permits issued in 17 cities of this district, after de clining sharply in September, failed to measure up to seasonal expectations in October and was the smallest for that month in recent years. The total value of these permits was 37 per cent smaller than a year ago, and in the first ten months showed a decline of 43 per cent from the same period last year. The local real estate situation con tinues to reflect unusual quiet as evi denced by the small number of ordinary conveyances and the de creased value of mortgages recorded in recent months. Foreclosures, which were exceptionally numerous in the first six months of this year, showed some decline during the third quarter, but increased sharply in October and BUILDING CONTRACTS INDUSTRIAL FUEL AND POWER PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT PHILADELPHIA FEDERAL RESERVE DISTRICT PERCENT ~ ELECTRIC POWER-"USED BY INDUSTRY TOTAL FUEL OIL—^ — OUTPUT 125 - RESIDENTIAL BITUMINOUS COAL-OUTPUT 1928 1929 1930 1931 Source: F. W. Dodge Corporation. were the second largest of any month in recent years. For the year to date the number of forced sales was one per cent larger this year than last. Agriculture. Seasonal farm opera tions, such as corn husking and the digging of late potatoes, are nearing completion, as is fall plowing, which has been somewhat less extensive than in other years. Acreage sown to win ter wheat appears to be smaller this year than last, while the stand of the new crop is about equal to the aver age for this time. The condition of cover crops, which is said to be un usually good, reflects chiefly a more adequate supply of moisture this year. Preliminary estimates of crop pro duction indicate that the output of feed crops, with the exception of oats, will be larger than in 1932. Yields of or chard fruits, tobacco and white pota toes, however, will be substantially smaller than a year ago and below the average of the five-year period, 1926 1930. The cranberry crop in New Jersey is expected to exceed last year’s short crop by 75 per cent and is one of the largest in several years. Cold storage holdings of butter, cheese and eggs declined in October while those of poultry increased sea sonally. Since early August, how ever, supplies of both dairy and poul try products have greatly exceeded those of a year ago. This is particu larly true of butter stocks, which showed a small increase between August and November, as compared with a decline of almost 48 per cent in the same period last year. Distribution. Sales of department, apparel, shoe and credit stores com bined were 13 per cent larger in Oc tober than in September, but this in crease failed to measure up to the 1932 1928 1929 1930 1932 1933 Source: Department of Commerce, Bureau of Mines. usual seasonal gain for this month by about 10 per cent. Sales of men’s ap parel in Philadelphia alone showed greater than the customary rate of gain. This falling off in total sales dur ing October followed unusually large increases in August and especially in September. A number of preliminary reports indicate that, with the excep tion of the first week, retail business showed some improvement in Novem ber, mainly because of colder weather. Compared with a year ago, the dollar volume of retail trade sales in October was about one per cent larger. This was due to increased business in men’s apparel, shoes, and in the sales of credit stores; the sales of department stores were 2 per cent smaller and those of women’s apparel stores one per cent less than in October 1932. In the first ten months of this year re tail business of the reporting concerns was almost 8 per cent smaller, sales of women’s apparel stores in Philadel phia alone exceeding by 2 per cent those in the same months last year. The supply of merchandise held by the reporting establishments increased 4 per cent from September to October but this rise was smaller than the estimated seasonal gain for that month, so that the seasonally adjusted figure showed a decline of about 3 per cent, following a steady increase from a record low in April to the end of September, when the stocks of goods reached the highest volume since the middle of last year. Compared with October 1932, the largest increases in inventories occurred in department and women’s apparel stores, while shoe and credit stores reported smaller in ventories. The rate of stock turnover has been nearly 3 per cent higher so far this year than last. Collections, as measured by the ratio of accounts settled during October to the receiv ables at the beginning of that month, were 15 per cent larger than in Sep tember, which is about the usual rate of gain for October; as compared with a year ago, payments this year were over 8 per cent more rapid. The trend in the wholesale and job bing business has been downward since July, when the highest point since 1931 was reached. In October sales of eight representative lines were one per cent smaller than in September, unusual de creases occurring in shoes, dry goods, and jewelry. Gains in the sale of paper, hardware, and electrical supplies were smaller than was to be expected at this time, while business in drugs held more than its own. In comparison with October 1932, the dollar volume of wholesale trade was 19 per cent larger, reflecting in part higher prices. The largest in creases occurred in the sale of electri cal supplies, groceries, jewelry, and paper, while drugs and dry goods fell behind last year’s volume. Wholesale inventories increased further but by a smaller margin than usual, and at the end of October stocks were 5 per cent smaller than a year ago, most of the lines showing reduc tions. The rate of wholesale stock turnover was 18 per cent greater this year than last. Collections showed a small decline from September to October; they were 11 per cent more prompt than a year ago. Shipments of commodities by rail road freight have continued to decline by a larger volume than is estimated for this season, following a sharp in crease between March and July, reach ing the highest level in the latter month since the fall of 1931. All Page Five FEDERAL RESERVE BANK OF PHILADELPHIA FREIGHT CAR LOADINGS MILLIONS ALLEGHENY DISTRICT PERCENT MEMBER BANKS’ ^ MERCHANDISE AND MISCELLANEOUS — RESERVE DEPOSITS (64.9* OF TOTAL) (23 5K OF TOTAL) BILLS DISCOUNTED TOTAL 1929 1930 1931 1932 1933 1934 Source: American Railway Association. classes of commodities registered more than customary decreases, but the highest rate of drop occurred in the transportation of coal, coke, and grain and grain products. Compared with a year ago total shipments in October were still 7 per cent larger, owing to greater loadings of livestock and its products, coke, ore, forest products, and miscellaneous commodities. Trans portation of coal, grain and grain products, and less than car load mer chandise was smaller than a year ago. Deliveries of goods by motor freight, covering mainly short distance hauls in Pennsylvania, increased appreci ably during October, following a sharp decline in the previous month. Sales of new passenger automobiles, after showing an extraordinary rate of improvement between March and September, fell off about 6 per cent, when allowance is made for the usual seasonal change, as measured by regis trations for this district. Nevertheless, with two exceptions, the number of units sold in October continued to be at the highest level since early 1931. Banking conditions. Borrowings of member banks from the reserve bank have changed little during the past month, despite withdrawals from bal ances to the credit of other banks and the Treasury. Loans to customers with security collateral declined at the reporting member banks, but other loans increased and their holdings of United States securities expanded. Substantial sums were withdrawn by the Treasury from: deposits which had been set up by the banks in pay ment for newly issued government se curities and were transferred else where to meet Government require ments; the excess of Treasury with Page Six drawals and other receipts in this dis trict over local disbursements was 19 millions in the five weeks ended Nov ember 22. The banks were able to supply these funds with virtually no change in total borrowings from this bank, as the settlements of commercial and financial transactions with other districts netted a favorable balance of 6y2 millions, almost half a million was derived from the return of cur rency, and 11 millions was obtained through a reduction in member bank reserve deposits. Special de posits of member and nonmember banks also decreased nearly one mil lion. Bills discounted totaled 25Yi mil lions at this bank on November 22, which was little more than half the amount a year earlier. During the last five weeks the bank has acquired, as a result of its participation in operations of the Federal Reserve Sys tem, one million of bankers’ bills and nearly 4 millions of United States se curities, although there was no change in the latter during the last two weeks. Federal reserve note circulation de clined, being offset largely by a rise in federal reserve bank notes, and the deposit liability also decreased sub stantially, but the bank’s holdings of gold reserves, and other cash showed an even greater proportionate decline, reflecting transfers to other districts for the Treasury, so that the ratio to the combined federal reserve note and deposit liabilities decreased from 62.5 to 60.6 per cent. This ratio was some what higher than a year ago. Amounts due to banks declined 14 millions over the five weeks at the re porting member banks in this district, but this was well balanced by a reduc tion of 15 millions in balances held with other banks. Net demand deposits in creased 4 millions; there was only a slight increase in government deposits, Reporting member banks (000,000’s omitted) Oct. 18, 1933 Nov. 22, 1933 Loans to customers: On stocks and bonds $ All other..................... Loans to open market* United States securities Other securities............ 233 255 20 300 243 Total loans and investments......... $1,051 Net demand deposits.. 563 311 Time deposits............... 81 Government deposits . Amounts due from 79 banks........................... Amounts due to banks. 147 $ 239 251 14 282 246 Nov. 23, 1932 $ 293 285 8 247 274 $1,032 559 311 80 $1,107 641 272 37 94 161 131 206 * Includes bought commercial paper and bankers’ acceptances, and loans on securities to New York brokers. RESERVE BANK CREDIT AND THE FACTORS WHICH AFFECT IT Philadelphia Federal Reserve District—Oct. 19 to Nov. 22, inclusive (In millions of dollars) Uses of funds Sources of funds Currency demand................ ............................ - 0.4 Reserve bank credit extended in this dis Member bank reserve deposits..................... -11.0 trict ......................................................... + 0.3 Special and “Other” deposits at reserve Commercial and financial transactions 0.8 bank................................................................. (chiefly interdistrict).................................. +6.5 Unexpended capital funds of Federal Re Treasury operations........................................ —19.0 serve Bank..................................................... -12.2 Total. Total. Note: This table gives, in balance sheet f()rm, a summary of the banking changes which have had an influence on the amount of reserve bank credit in use in the district. * Change of less than $50,000. although 18 millions had been credited to the Treasury in payment for new securities on November 1; withdrawals by the Treasury were met in part by a reduction in reserves with the Federal Reserve Bank. The banks report a de crease of 6 millions in loans to' customers on securities, but other loans, which are more typically commercial in character, increased 4 millions to the highest point since early July. Open market loans and investments in creased 21 millions, expansion of 6 millions in open market loans and 18 millions in United States securities being only partly offset by a decrease of 3 millions in other securities. Reserve deposits of all licensed member banks in this district averaged 124^2 millions in October, as against legal requirements of 100 millions. The excess of 24y2 millions above requirements compared with 6y2 millions in April. In October over 10 millions of the ex cess was held by country banks and about 14 millions by reserve city banks; early November figures show a decline in the latter. Federal Reserve Changes in— The volume of Bank of Nov. 22, Philadelphia outstanding accept (Dollar figures in 1933 Five One millions) weeks ances of banks in year this district in -$ creased from $14, Bills discounted. . . $ 25.5 + 0.1 -$24.1 Bills bought............ 1.7 1.0 - 1.5 300,000 to $16, United States secu rities...................... 167.1 + 3.8 + 27.8 300,000 during Other securities.... 0.5 0 - 0.5 October; the total Total bills and at the end of the ted. securities......... $194.8 +$ 4.7 +$ 1.7 res. note cir month was the culation ........... 229.5 - 7.8 - 8.7 l'ed. res. bank note largest since De circulation. . . . 15.4 + 6.1 + 15.4 cember 1931 and Member bank re 124.9 serve deposits. - 11.0 + 7.1 was 23 per cent in Special deposits— member and non excess of a year member banks . . 9.8 - 0.9 + 9.8 earlier, which com Government de posits .................... 1.0 - 0.6 - 0.2 bank de pares with a rise of Foreign .................... posits 0.7 - 0.7 - 1.9 over 5 per cent for Gold reserves and other cash........... 222.1 -20.1 + 16.1 the country as a Ratio......................... 60.6% - 1.9% + 3.4% whole. Percentage change— October 1933 from October 1932 City areas* Manufacturing Employment Allentown. . . Altoona......... Harrisburg. . J ohnstown... Lancaster. . . Philadelphia. Reading........ Scranton. . . . Trenton......... Wilkes-Barre Williamsport. Wilmington.. York.............. Wage payments - 2.9 +11.5 +11.4 +22.9 +34.5 +26.8 +15.9 +22.2 +39.5 + 7.4 +97.0 +40.4 +32.8 + 19.1 +104.0 + 27.1 + 89.2 + 44.8 + 33.4 + 35.2 + 19.9 + 50.6 + 11.9 + 94.5 + 41.6 + 48.6 Building permits (value) Debits + 69.8 +155.8 - 62.1 - 25.2 + 86.7 - 43.2 + 23.6 - 4.4 - 4.8 + 3.9 - 55.2 - 23.4 +141.2 - 2.7 -10.6 + 14.0 - 7.4 -11.9 + 8.8 -17.0 -17.8 - 0.7 -12.2 - 7.1 + 5.4 + 7.1 Retail - 6.4 +13.9 - 3.3 0.0 + 4.4 - 1.9 - 3.8 - 5.0 + 0.6 - 2.4 Factory employment and payrolls in Pennsylvania Employment* (Indexes of factory em ployment and payrolls are expressed in per centages of the 1923-25 average which is taken as 100) Per cent change com pared with Oct. 1933 index Oct. 1932 All manufacturing 77.0 Iron & steel & their products.................. 63.5 Non-ferrous metal products.................. 85.9 Transportation equipment............... 57. Ip Textiles and clothing 99.5 Textiles.................... 96.7 Clothing.................. 110.6 Food products............ 105.2 Stone, clay and glass products.................. 74.9 Lumber products.... 61.2 Chemical and allied products.................. 85.9 Leather and its products........................... 91.8 Paper and printing . . 90.3 Printing................... 85.3 Others: Cigars and tobacco 62.7 Rubber tires and goods.................... 98.1 Musical instruments................... 40.8 * Figures from 1,745 plants, Employehours f Payrolls * Oct. 1933 index Sept. 1933 Per cent change com pared with Oct. 1932 Sept. 1933 + 17.4 + 0.4 55.0 +35.5 + 2.8 +30.9 + 1.4 45.1 +79.0 + 4.4 + 26.5 + 1.3 67.2 +28.2 + 14.9 + 6.4 + 8.2 + 1.2 +13.0 + + + 1.2 0.2 1.1 3.3 0.8 35.6p 83.0 80.6 94.5 82.0 +28.3 - 1.3 35.2 +39.7 + 7.7 42.0 Per cent change Oct. pared with Sept. + 1.4 +1.8 +0.4 -2.7 + 3.8 + 6.) + 5.2 +10.0 - 0.5 +6.6 +4.6 +4.3 +8.3 -0.9 +39.1 - 7.1 +45.8 + 14.8 -9.6 +9.9 +26.2 +20.8 + 14.0 +35.8 +13.3 +27.6 - 3.4 67.7 +36.5 - 4.0 -0.6 +16.9 - 3.5 79.2 +10.0 - 0.1 71.1 - 0.1 0.0 72.8 +28.4 - 2.9 + 3.3 - 1.8 - 2.0 - 0.7 -1.9 -2.5 +1.5 -0.3 - 4.0 + 0.8 44.9 + 2.5 + 2.3 +48.2 - 2.0 77.4 +18.3 - 6.0 -5.3 +13.3 + 0.7 38.8 +39.6 + 4.9 +3.7 p—Preliminary. t Figures from 1,262 plants, General indexes of employment and payrolls in Pennsylvania Employment Occupation (1932 = 100) Oct. 1933 index General index number Manufacturing...................... Anthracite mining................. Bituminous coal mining.. . . Building and construction. . Quarrying and non-metallic mining.................................. Crude petroleum producing Public utilities........................ Retail trade............................ Wholesale trade..................... Hotels....................................... Laundries................................. Dyeing and cleaning............. Per cent change compared with Oct. 1932 Sept. 1933 Payrolls Oct. 1933 index Percent change compared with Oct. 1932 Sept. 1933 110.0 119.6 91.0 80.9 96.7 + 9.0 + 17.4 -11.0 -17.4 - 6.6 + 0.4 116.3 + 0.4 135.1 + 0.2 114.7 -28.8 73.6 + 0.5 80.8 + 16.3 +35.5 - 7.8 -25.1 -16.7 + 1.7 + 2.8 + 1.5 -40.2 + 5.5 115.9 199.6 90.9 115.7 102.3 97.0 95.0 114.2 +14.4 +83.1 - 6.3 + 16.9 + 4.5 + 0.2 - 0.5 +12.6 - 2.4 +36.6 + 0.7 +10.2 + 2.1 + 2.5 + 0.1 + 0.2 +17.9 +68.5 - 5.5 +14.7 + 0.2 - 8.7 - 0.6 +22.4 + 6.4 +50.5 + 5.8 + 8.5 + 5.6 + 4.3 + 1.0 + 9.4 128.7 169.2 86.2 109.7 96.3 84.7 90.4 121.2 INDUSTRIAL EMPLOYMENT AND PAYROLLS PENNSYLVANIA PERCENT + 1.5 October 1933 from September 1933 Allentown......... Altoona............. Harrisburg. . . . J ohnstown........ Lancaster.......... Philadelphia. . . Reading............. Scranton........... Trenton............. Wilkes-Barre... Williamsport... Wilmington.... York................... + + + + + + + + 8.9 1.0 0.4 4.6 2.7 4.1 3.7 2.2 1.5 2.1 1.7 1.1 4.7 + + + + + + + + + + 0.4 7.1 0.2 1.0 4.8 6.2 7.8 1.9 1.4 9.3 7.0 2.8 4.4 + 31.1 +134.6 - 54.4 + 106.6 - 52.9 + 6.2 + 51.2 + 6.0 - 18.5 - 10.9 - 34.4 - 9.7 +239.7 + 9.9 + 0.1 + 5.1 + 7.0 + 9.4 +12.7 + 9.8 + 4.1 + 3.6 + 4.4 +18.3 + 1.6 + 1.1 * Area not restricted to the corporate limits of cities given here. EMPLOYMENT +13.4 - 3.5 +12.8 +15.7 +19.1 +16.9 - 6.0 + 4.1 +15.5 PAYROLLS + 17.2 1932 193 3 1934 Page Seven Index numbers of individual lines of trade and manufacture WHOLESALE TRADE PHILADELPHIA FEDERAL RESERVE DISTRICT ADJUSTED ro« SEASONAL VM-TION Philadelphia Federal Reserve District .. Index numbers: percentages of the 1923—1925 average taken as ICO Adjusted indexes allow for the usual seasonal change which re sults from an uneven distribution of business between the months of the year. Unadjusted indexes reflect merely the actual change which may or may not be up to the usual sea sonal expectations. AVT.,100 STOCKS SALES v*- Not adjusted Adjusted for seasonal variation BOOTS AND SHOES Percentage comparison Oct. 1932 Sept. 1933 Oct. 1933 Oct. 1933 with Month ago Year ago To date with year ago Oct. 1932 Sept. 1933 / Oct. 1933 Vv A A A SALES DRUGS \ Retail trade STOCKS Sales Total of all stores. Department......... Men’s apparel---Women’s apparel. Shoe........................ Credit..................... 62.3 62.2 52.5 82.9 66.0 54.9 69.7 67.9 54.1 99.6 81.0 61.7 62.6p 60.8p 55. Op 82.1 66.9 59.1 -10.2 -10.5 + 1.7 -17.6 -17.4 - 4.2 + + + + Stocks of goods Total of all stores. Department......... Men’s apparel---Women’s apparel. Shoe........................ Credit..................... 60.0 62.7 53.6 58.8 54.8 49.6 79.3 100.9 56.2 56.4 69.5 68.3 61.Ip 57.9p 56.6 90.9 56.0 62.5 - 2.6 - 1.5 + 14.1 - 9.9 - 0.4 - 8.5 + 1.8 + 8.0 + 3.3 +14.6 - 0.7 -10.1 0.5 2.3 4.8 1.0 1.4 7.7 - 7.8 - 7.2 - 6.7 -1.0 - 9.4 -14.2 70.3 70.9 52.8 92.7 65.3 67.0 62.7 60.8 46.3 85.9 75.3 58.6 70.7p 69.3p 55.2p 91.9 66.2 72.1 125 V\f 100 •*v 50 66.6 60.6 58.7 100.2 60.9 73.7 65.6 68. Op 61.2 65.4p 54 .0 60.6 108.8 115.1 59.0 60.5 69.7 66.2 + 2.7* 2.92 Rate of stock turnover 10 months (actual, not indexes) 3.00 DRY GOODS 75 50 CX>‘* STOCKS jiC.A, ]\ sales'^ Wholesale trade Sales Total of all lines........ Boots and shoes. . . Drugs....................... Dry goods.......... . . Electrical supplies. Groceries................. Hardware................ Jewelry.................... Paper........................ r vv •w, SALES 75 ELECTRICAL SUPPLIES 53.4 34.8 85.4 33.8 34.8 72.5 37.1 29.7 53.4 64.1 40.1 80.4 33.2r 53.4 91.4 41.3 40.0 61.4 63 .4p 36.8p 84.5 32.4p 50.2p 91.7 41.1 33.7 60.5p - 1.1 +18.7 - 8.2 + 5.7 + 5.1 - 1.1 - 2.4 - 4.1 - 6.0 +44.3 + 0.3 +26.5 - 0.5 +10.8 -15.7 +13.5 - 1.5 +13.3 + 5.4 - 0.5 - 9.8 + 1.7 +25.0 + 8.0 -14.3 -19.7 + 4.8 60.5 72.8 57.8 43.1 83.7 82.8 45.0 44. lr 44.5 64.1 79.0 101.5 42.3 43.4 39.8 49.6 62.6 57.1 71.9p 45.6p 82.8 43 .lp 64 .2p 99.9 46.9 45.1 64 .7p 125 ?♦ / A 100 STOCKS a/V\\. 75 A SALES V 50 Stocks of goods Total of all lines. Drugs....................... Dry goods........... Electrical supplies. Groceries................. Hardware................ Jewelry.................... Paper........................ 62.6 60.0 105.5 109.1 35.4r 38.1 68.1 62.4 72.0 73.8 68.2 62.7 53.2 44.8 61.7 59.5 59.3p 109.8 34.8p 58.8p 72.3 64.0 45.7 58. Ip - 1.2 + 0.6 - 1.7 - 5.8 - 2.0 + 2.1 + 2.0 -2.4 - 5.3 + 4.1 - 8.7 -13.7 + 0.4 - 6.2 -14.1 - 5.8 65.5 61.9 108.7 112.4 40.0 38.9r 76.3 66.8 77.0 73.8 64.8 61.4 55.9 48.8 62.9 60.7 62. lp 113.1 36.5p 65.9p 77.4 60.8 48.0 59.3p 25 GROCERIES STOCKS —"••A j IOO SALES Rate of stock turnover 10 months (actual, not indexes) Output of manufactures Pig iron........................................ Steel............................................. Iron castings.............................. Steel castings............................. Electrical apparatus................ Motor vehicles.......................... Automobile parts and bodies. Locomotives and cars............. Shipbuilding............................... Silk manufactures.................... Woolen and worsteds.............. Cotton products........................ Carpets and rugs...................... Hosiery....................................... Underwear................................. Cement....................................... Brick............................................ Lumber and products............. Bread and bakery products . . Slaughtering, meat packing. . Sugar refining.......... ................ Canning and preserving......... Cigars.......................................... Paper and wood pulp.............. Printing and publishing......... Shoes............................................ Leather, goat and kid............. Explosives................................... Paints and varnishes............... Petroleum products................. Coke, by-product...........; . . . . k 10.1 25.8r 21.1 20.8 48.3r 13.6 30.5 16.6r 117.0 113.2 51.0 41.2 41.4 117.9 134.1 38.8 25.8r 12.7r 26.6 51.5 41.2 34.0 63.2 13.4 46.9 13.9 104.7 98.2 59.3 47.1 52.9 111.2 146.6 26.1 37.0 19.6 20.1 47.6 44.4 39.9 70.3 10.7 50.6 14.8 120.3 100.0 53.7 42.5 53.1 102.5 147.8p 17.9 29.8 20.0 -24.4 - 7.6 + 7.8 +17.4 +11.2 -20.1 + 7.9 + 6.5 +14.9 + 1.8 - 9.4 - 9.8 + 0.4 - 7.8 + 0.8 -31.4 -19.5 + 2.0 96.2 67.4 26.5 75.9 52.3i 84.31 133.5 73.8 65.4 53.6 122.7 52.8 103.9 64.5 30.4 79.6 65.0 84.7 137.1 113.6 73.0 68.9 137.6 87.0 96.8 106.2 30.8p 75.0 60.2 84-. 3 129.5 112.7J 64.4 58.7 140.21 77.9 - 6.8 +64.7 + 1.3 - 5.8 - 7.4 - 0.5 - 5.5 - 0.8 -11.8 -14.8 + 1.9 -10.5 Computed from data unadjusted for seasonal variation. Page Eight 4.21 +17.9* 3.57 +99.0 +84.5 +110.4 +91.8 +45.5 -21.3 +65.9 -10.8 + 2.8 -11.7 + 5.3 + 3.2 +28.3 -13.1 +10.2 -53.9 +15.5 +57.5 - 3.5* + 0.6 +57.6 + 16.2 - 1.2 +15.1 0.0 - 3.0 +52.7 - 1.5 + 9.5 +14.3 +47.5 +41.0 +32.9 + 12.9 + 17.3 - 1.4 -53.0 - 4.8 -29.1 -44.2 +18.2 +32.0 +11.7 - 4.1 + 8.7 +37.1 -31.7 +13.8 -10.5 - i.i* + 3.7 - 3.6 0.0 + 2.4 + 4.3 - 5.8 +20.5 +19.6 + 8.4 + 0.3 + 3.3 +25.4 p—Preliminary. 10.0 25.8r 22.4 19.8 52.6r 12.5 29.0 15.8r 112.3 115.5 56.1 42.4 41.4 129.7 146.2 43.5 26.lr 13.2r 85.2r 100.6 56.6 38.9 93.3 53.3r 85. ll 144.2 76.8 66.1 57.3 123.3 51.7 25.0 48.9 41.6 30.9 69.5 11.5 44.6 13.3 99.5 98.2 65.2 44.7 51.3 111.2 146.6 30.5 37.4 20.6 88.1 103.3 55.5 42.4 92.3 65.0 83.9 156.3 118.1 73.0 65.5 138.7 83.5 19.9 47.6 47.1 37.9 76.6 9.8 48.1 14.1 115.5 102.0 58.9 43.7 53.1 1X2.8 161 .lp 20.1 30.1 20.8 82.2 101.6 89.2 48.2p 92.2 61.4 85.1 139.9 117.2p 65.0 62.8 140.8p 76.3 ._./ 75 ■ .....L HARDWARE s**K?........ vJ STOCKS ......... *•***' 75 ’*•*+ ...A ....... .... SALES'^ 50 JEWELRY A a 75 50 lv_.. ! . STOCKS yx.-'+, 5ALES 25 PAPER IOC ........... **'**«. STOCKS / 1931 1932 75 SALES5C ' 1930 1933 -
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